XPEL, Inc. (NASDAQ:XPEL) Q4 2023 Earnings Conference Call February 22, 2024 11:00 AM ET

Company Participants

John Nesbett - IMS Investor Relations

Ryan Pape - Chairman, President and Chief Executive Officer

Barry Wood - Senior Vice President and Chief Financial Officer

Conference Call Participants

Steve Dyer - Craig Hallum

Jeff Sinderen - B. Riley

Operator

Greetings. Welcome to the XPEL, Inc. Fourth Quarter and Year End 2023 Earnings Call. [Operator Instructions] Please note this conference is being recorded.

I’ll now turn the conference over to your host, John Nesbett with IMS. Sir, the floor is yours.

John Nesbett

Good morning, and welcome to our conference call to discuss XPEL's fourth quarter and 2023 year end financial results.

On the call today, Ryan Pape, XPEL's President and Chief Executive Officer; and Barry Wood, XPEL's Senior Vice President and Chief Financial Officer, will provide an overview of the business operations and review the company's financial results. Immediately after the prepared comments, we'll take questions from our call participants. A transcript of this call will be available on the company's website after the call. I'll take a moment to read the safe harbor statement.

During the course of this call, we'll make certain forward-looking statements regarding XPEL, Inc. and its business, which may include, but are not limited to, anticipated use of proceeds from capital transactions, expansion into new markets and execution of the company's growth strategy. Such statements are based on current expectations and assumptions, which are subject to known and unknown risk factors and uncertainties that could cause actual results to materially different from those expressed in these statements. Some of these factors are discussed in detail in our most recent Form 10-K, including under the Item 1A Risk Factors filed with the SEC. XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Okay. With that, I'll now turn the call over to Ryan. Go ahead, Ryan.

Ryan Pape

Thank you, John, and good morning from me as well. Welcome to the fourth quarter and yearend call. Overall, 2023, another solid year for us, revenue grew 22.3%, net income 27.6%, and EBITDA 25.6%. We closed the year with a strong fourth quarter, revenue growing 34.5% to $105.5 million, net income growing 43.2%, and EBITDA growing 33.6%. So a good end of the year. Our US region had a good quarter with revenue growing 16.8% to $55.6 million. Our dealership business continued to be a bright spot for us as car counts have increased and new car inventories have been returning. We'll likely see the preload component of our business to slow modestly, as inventories catch up with their pre-2020 levels, probably over the first half of this year, since preload attachment happens as the vehicles are delivered or sit on the lot.