XPEL Announces Second Quarter Results

SAN ANTONIO, Texas–(BUSINESS WIRE)–XPEL Technologies Corp. (TSXV:DAP.U), a leading supplier of automotive
paint and headlamp protection films, announced results for the quarter
and six months ended June 30, 2015.

Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented,
“We have seen continued momentum in the second quarter with solid growth
and the completion of the integration of Parasol Canada, which we
acquired in the first quarter.”

For the Quarter Ended June 30, 2015:

Revenue: Revenue in the second quarter of fiscal 2015 was $11.3
million, a 35% increase as compared to revenue of $8.3 million in the
same prior year quarter and a 40% increase sequentially as compared to
the first quarter.

Gross Margin: Gross profit as a percentage of sales remained
unchanged at 30%.

Expenses: Selling, general and administrative expenses as a
percentage of revenue was 21%, up slightly as compared to 18% in the
second quarter of 2014 and a sequential decline as compared to 25% in
the first quarter of 2015.

Net Earnings: Net income for the fiscal 2015 second quarter was
$605,653 or $0.02 per basic and diluted share based on 25,784,950 shares
outstanding, compared with net income of $595,229, or $0.02 per basic
and diluted share based on 25,784,950 shares outstanding, for the
corresponding prior year period.

For the Six Months Ended June 30, 2015:

Revenue: Revenue in the first six months of fiscal 2015 was $19.4
million, a 42% increase as compared to revenue of $13.6 million in the
same prior year period.

Gross Margin: Gross profit as a percentage of revenue increased
slightly to 32% from 31% in the same prior year period.

Expenses: Selling, general and administrative expenses as a
percentage of revenue was 23%, up from 19% in the same prior year period.

Net Earnings: Net income for the first six months of fiscal 2015
was $1,277,861, or $0.05 per basic and diluted share based on 25,784,950
shares outstanding, compared with net income of $1,054,514, or $0.04 per
basic and diluted share based on 25,784,950 shares outstanding, for the
corresponding prior year period.

Mr. Pape continued, “In addition to good growth in the U.S., our direct
presence in Canada and Europe generated strong revenue growth in both
regions, despite pressure from the U.S. Dollar. Elsewhere, the impact of
foreign currency on our distributors and the reorganization of our
distribution in China reduced growth in the quarter. Across our
international subsidiaries, net income would have increased over
$300,000 if the relevant exchange rates were at their prior year rates.”

“The continued expansion of our U.S. sales and marketing programs
combined with the distribution changes in Canada and China position us
well to continue our differentiated, premium offering as the business
grows and we introduce additional products and services.”

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the second quarter
and six month results today, August 31, 2015 at 11:00 a.m. Eastern Time.

To access the live webcast, log onto the XPEL Technologies website at http://www.xpel.com,
and click on “Investor Relations”.

To participate in the call by phone, dial (877) 407-8033 approximately
five minutes prior to the scheduled start time. International callers
please dial (201) 689-8033.

A replay of the teleconference will be available until October 1, 2015
and may be accessed by dialing (877) 660-6853. International callers may
dial (201) 612-7415. Callers should use conference ID: 13618384.

About XPEL Technologies Corp.

XPEL is the leading supplier of automotive paint and headlamp protection
films with over 70,000 vehicle-specific applications and a worldwide
network of trained installers. XPEL is the developer of the Design
Access Program software, and manufacturer of XPEL™ Automotive Paint and
Headlamp Protection Products. XPEL has forged the cutting-edge of
automotive protection technology, and leads the industry in quality,
technical support and customer service.

Additional information can be found on the Company’s website at www.xpel.com

Safe harbor statement

This release includes forward-looking statements regarding XPEL
Technologies Corp. and its business, which may include, but is not
limited to, anticipated use of proceeds from capital transactions,
expansion into new markets, and execution of the company’s growth
strategy. Often, but not always, forward-looking statements can be
identified by the use of words such as “plans,” “is expected,”
“expects,” “scheduled,” “intends,” “contemplates,” “anticipates,”
“believes,” “proposes” or variations (including negative variations) of
such words and phrases, or state that certain actions, events or results
“may,” “could,” “would,” “might” or “will” be taken, occur or be
achieved. Such statements are based on the current expectations of the
management of XPEL. The forward-looking events and circumstances
discussed in this release may not occur by certain specified dates or at
all and could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company, performance and
acceptance of the company’s products, economic factors, competition, the
equity markets generally and many other factors beyond the control of
XPEL. Although XPEL has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they are
made and XPEL undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

XPEL TECHNOLOGIES CORP.
Statement of Comprehensive Income
(Expressed in United States Dollars)
							Three Months Ended												Six Months Ended
							June 30,												June 30,
							2015						2014						2015						2014
Revenue					$		11,289,975				$		8,348,309				$		19,423,906				$		13,620,182
Expenses
Direct costs							7,932,833						5,881,637						13,220,727						9,374,375
Selling, general and administrative							2,378,526						1,494,582						4,403,057						2,627,755
Unrealized foreign currency gain							(36,774)						–						(31,640)						–
Income from operations							1,015,390						972,090						1,831,762						1,618,052
Interest expense							62,700						4,861						100,864						7,403
Loss on sale of property, plant and equipment							2,037						–						2,037						(865)
							64,737						4,861						102,901						6,538
Net income before income tax							950,653						967,229						1,728,861						1,611,514
Provision for income tax
Deferred income tax expense							153,000						40,000						259,000						27,000
Current income tax expense							192,000						332,000						192,000						530,000
Net Income					$		605,653				$		595,229				$		1,277,861				$		1,054,514
Exchange differences on translating foreign operations							45,849						–						(71,389)						–
Total comprehensive income					$		651,502				$		595,229				$		1,206,472				$		1,054,514
Net income attributable to equity holders of the Company							610,139						595,229						1,307,582						1,054,514
Non-controlling interest							(4,486)						–						(29,721)						–
							605,653						595,229						1,277,861						1,054,514
Earnings per share
Basic and diluted					$		0.023				$		0.023				$		0.050				$		0.041
Weighted average number of common shares outstanding							25,784,950						25,784,950						25,784,950						25,784,950

XPEL TECHNOLOGIES CORP.
Condensed Consolidated Balance Sheet
(Expressed in United States Dollars)
(unaudited)
								June 30,							December 31,
								2015							2014
Assets
Current
Cash and cash equivalents								$		2,624,017					$			1,474,130
Accounts receivable										4,319,569								2,287,342
Inventory										5,184,480								6,235,137
Prepaid expenses and sundry assets										688,358								347,472
Total current assets										12,816,424								10,344,081
Property, plant and equipment										1,019,685								790,343
Intangible assets										2,515,710								784,510
Deferred tax asset										—								163,000
Goodwill										1,686,258								526,243
Total assets								$		18,038,077					$			12,608,177
Liabilities
Current
Bank operating facility								$		1,600,000					$			900,000
Accounts payable and accrued liabilities										3,458,544								4,121,590
Income Tax Payable										192,000								—
Customer deposits										12,350								12,350
Vehicle notes payable										101,670								90,413
Current portion of Promissory note										388,650								–
Current portion of Bank loan payable										380,000								–
Total current liabilities										6,133,214								5,124,353
Promissory note										1,267,239								–
Bank loan payable										1,393,334								–
Deferred tax liability										553,994								–
Total liabilities										9,347,781								5,124,353
Equity
Capital stock										6,635,133								6,635,133
Contributed surplus										2,165,130								2,165,130
Accumulated other comprehensive income										(87,110	)							(15,721	)
Deficit										(80,400	)							(1,387,982	)
										8,632,753								7,396,560
Non-controlling interest										57,543								87,264
Total liabilities and equity								$		18,038,077					$			12,608,177

Contacts

XPEL Technologies Corp.
Ryan Pape, 210-678-3700
Chief
Executive Officer
or
Institutional Marketing Services (IMS)
John
Nesbett/Jennifer Belodeau, 203-972-9200
jnesbett@institutionalms.com