XPEL Reports First Quarter Revenue Growth of 39%

SAN ANTONIO–(BUSINESS WIRE)–XPEL Technologies Corp. (TSXV:DAP.U), a leading supplier of automotive
paint protection and window films, announced results for the first
quarter ended March 31, 2016.

Mr. Ryan Pape, President and Chief Executive Officer of XPEL, commented,
“Our first quarter results demonstrate continued momentum and customer
confidence, characterized by strong revenue growth of 39%. We are seeing
heightened marketplace awareness of the XPEL brand, driven by our high
quality products, our training and support offerings and our industry
leading customer service. Our strategy to increase our direct presence
in the international markets that we serve is gaining traction and
allows us to be close to our end customer, which enables us to deliver a
more consistent product, real-time service and on-demand training.

“We are focused on expanding the reach of our product offerings within
the automotive aftermarket and in late April we announced that our paint
protection and window film products will be available to the more than
50 Tint World franchisees throughout the U.S. XPEL will provide expert
training and certification of installers at each franchise stocking our
product to ensure that the end customer receives a finished product
consistent with our quality standards. We’re pleased to have entered
into this strategic partnership which enables us to bring our film
products to an expanded audience of potential customers and increases
our brand exposure in the United States.

“As previously announced, during the fourth quarter of 2015, we rolled
out a new ordering and account management portal for our dealers,
expanding our logistics footprint across the U.S., Canada, and Europe.
The portal provides a state-of-the-art ordering experience, including a
streamlined mobile platform which helps us attract and retain customers
through its convenience and ease of use. As expected, the marketplace
has responded enthusiastically and traffic through the portal is
increasing every day.”

For the Quarter Ended March 31, 2016:

Revenue: Revenue in the first quarter of fiscal 2016 was $11.3
million, a 39% increase as compared to revenue of $8.1 million in the
same prior year quarter and a slight increase sequentially as compared
to the fourth quarter of fiscal 2015. On a constant currency basis,
revenues increased 41% to $11.5 million.

Gross Margin: Gross profit as a percentage of sales decreased to
29% from 35% in the first quarter last year. In the first quarter and
going forward, the Company has allocated more personnel costs to cost of
goods sold, reflecting the increased dedication of those employees to
the installation business.

Expenses: Selling, general and administrative expenses increased
on a dollar basis but declined as a percentage of revenue to 21% as
compared to 25% in the first quarter of 2015.

Net Income: Net income for the fiscal 2016 first quarter was
$697,180 or $0.027 per basic and diluted share based on 25,784,950
shares outstanding, compared with net income of $672,208, or $0.026 per
basic and diluted share based on 25,784,950 shares outstanding, for the
corresponding prior year period. On a constant currency basis, net
income for the fiscal 2016 first quarter was $863,984.

EBITDA: EBITDA was $1.2 million as compared to EBITDA of $1
million in the same prior year quarter. On a constant currency basis,
EBITDA increased 16% to $1.3 million in the first quarter of 2016.

Mr. Pape continued, “We remain focused on strengthening our marketing
strategies, growing our international presence with locations closer to
our end customers and expanding our distribution channels. We are intent
on driving efficiencies in our cost structure to achieve enhanced
profitability as we continue to grow our revenue.”

Conference Call Information

The Company will host a conference call to discuss the fourth quarter
and year end results today, May 26, 2016 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” under the “Company” header.

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 June 26, 2016 and
may be accessed by dialing (877) 660-6853. International callers may
dial (201) 612-7415. Callers should use conference ID: 13638395.

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.



Condensed Consolidated Statement of Comprehensive Income
(Expressed in United States Dollars)
Three Months Ended
March 31,
        2016       2015
Revenue $


$ 8,133,932
Direct costs 8,012,303 5,287,895
Selling, general and administrative 2,361,280 2,024,531
Unrealized foreign currency loss (gain) 11,395 5,134
Income from operations 914,213 816,372
Interest expense 66,011 38,164
Loss on sale of property, plant and equipment 364
66,375 38,164
Net income before income tax 847,838 778,208
Provision for income tax
Deferred income tax expense (recovery) 21,725 106,000
Current income tax expense 128,933
150,658 106,000
Net Income $ 697,180 $ 672,208
Exchange differences on translating foreign operations 207,821 (117,238)
Total comprehensive income $ 905,001 $ 554,970
Net income attributable to equity holders of the Company 708,709 697,443
Non-controlling interest (11,529) (25,235)
$ 697,180 672,208
Earnings per share
Basic and diluted $ 0.027 $ 0.026
Weighted average number of common shares outstanding 25,784,950 25,784,950
Condensed Consolidated Balance Sheet
(Expressed in United States Dollars)      
March 31, December 31,
  2016   2015  
Cash and cash equivalents $ 2,594,194 $ 2,840,549
Accounts receivable 3,688,364 3,450,407
Inventory 7,002,554 6,972,768
Prepaid expenses and sundry assets 733,571



Income taxes receivable



Total current assets 14,066,687 14,087,005
Property, plant and equipment 1,270,905 1,235,337
Intangible assets 2,628,810 2,434,692
Deferred tax asset 97,651 100,659
Goodwill   1,724,262   1,668,527  
Total assets $ 19,788,315   $ 19,526,220  
Bank operating facility $ 3,000,000 $ 3,000,000
Accounts payable and accrued liabilities 4,023,500 4,465,819
Notes Payable 176,408 191,978
Income Tax Payable 117,649
Current portion of Bank Loan Payable 547,168 542,181
Current portion of note – vendor loan   542,066   481,652  
Total current liabilities 8,289,142 8,799,279
Deferred tax liability 605,982 558,116
Bank loan payable 866,183 1,004,369
Note payable – vendor loan   780,332   822,780  
Total liabilities 10,541,639 11,184,544
Capital stock 6,635,133 6,635,133
Contributed surplus 2,165,130 2,165,130
Accumulated other comprehensive income (414,172 ) (621,993 )
Retained Earnings (Deficit)   875,292   166,583  
9,261,383 8,344,853
Non-controlling interest (14,706 ) (3,177 )
Total liabilities and equity $ 19,788,315   $ 19,526,220  

Constant Currency

The Company reports results in U.S. Dollars, but does business on a
global basis. Exchange rate fluctuations affect the U.S. Dollar value
for foreign currency revenue and expenses and may have a significant
effect on reported results. Comparisons are made to the prior year in
constant currency terms, which Management believes is helpful in
understanding the Company’s performance. Constant currency is calculated
by converting current period results using the prior year currency
exchange rates.

Non-IFRS Measures

In addition to disclosing results in accordance with IFRS as issued by
IASB, the Company also provides supplementary non-IFRS measures as a
method of evaluating the Company’s performance.

Management uses EBITDA as a measure of company-wide performance. EBITDA
is defined as earnings before interest, taxes, depreciation, and
amortization. Management believes EBITDA is a useful measure to allow
period-to-period comparison of the Company’s operating performance.
EBITDA does not have a standardized meaning under IFRS and is not
necessarily comparable to measures presented by other Companies. EBITDA
excludes components that are significant in understanding and assessing
our results of operations and cash flows. EBITDA does not represent
funds available for Management’s discretionary use and is not intended
to represent cash flow from operations. EBITDA should not be considered
a substitute for Net Income prepared in accordance with IFRS as issued
by the IASB.

EBITDA Reconciliation

    Three Months Ended
March 31


    March 31


Net Income $ 697,180     $ 672,208
Interest 66,011 38,164
Taxes 150,658 106,000
Depreciation 69,309 45,455
Amortization   192,281       133,210
EBITDA $ 1,175,439     $ 995,037


XPEL Technologies Corp.
Public Relations:
CommCore Consulting
Dale Weiss, 202-659-4177
Institutional Marketing Services (IMS)
Nesbett/Jennifer Belodeau