Mr. Ryan Pape reports

XPEL ANNOUNCES 53% GROWTH IN FOURTH QUARTER REVENUE

XPEL Technologies Corp. has released results for the quarter and fiscal year ended Dec. 31, 2014.

Ryan Pape, president and chief executive officer of XPEL, commented: "Two thousand fourteen was a strong year for our company, marked by significant revenue growth, international expansion and the continued strategic development of our distribution channels. We are seeing growing market demand for and recognition of the XPEL brand, both domestically and internationally, and are executing on our strategy to ensure that our products and services are available to meet the demands of existing and potential customers worldwide."

For the quarter ended Dec. 31, 2014

Revenue

Revenue in the fourth quarter of fiscal 2014 was $7.6-million, a 53-per-cent increase as compared with revenue of $5.0-million in the same prior-year quarter.

Gross margin

Gross profit as a percentage of sales declined slightly to 31.2 per cent as compared with 31.7 per cent in the previous year.

Expenses

Selling, general and administrative expenses as a percentage of revenue was 25.5 per cent, a slight increase compared with 24.4 per cent in the fourth quarter last year. The increase is primarily due to marketing, information technology and acquisition costs to support the anticipated long-term growth of the business.

Net earnings

Net income for the fiscal 2014 fourth quarter was $1,542,460 or six cents per basic and diluted share based on 25,784,950 shares outstanding, compared with net income of $280,776 or one cent per basic and diluted share based on 25,784,950 shares outstanding for the corresponding prior-year period. Net income for the fourth quarter of 2014 included a tax gain of $1,127,400 due to a change in tax estimate.

Mr. Pape continued: "International expansion and moving closer to our international customers has been a key focus of ours in the back half of 2014 and into 2015. Our new XPEL U.K. facility established a strategic beachhead to service Europe and regions beyond. The facility provides readily available inventory to efficiently fulfill customer orders, and in February we began offering regular on-site training courses. We are ramping our sales efforts targeting potential European customers and building a pipeline through both existing and new relationships. Subsequent to the close of the fourth quarter, we announced our acquisition of Parasol Canada, a distributor of paint protection and window tint products for the Canadian market. This acquisition adds to our portfolio of products, provides a dedicated Canadian sales force and allows us to bring our proven U.S. marketing initiatives to this key international market."

For the year ended Dec. 31, 2014

Revenue

Revenue in fiscal 2014 was $29.6-million, a 66-per-cent increase as compared with revenue of $17.9-million in the same prior-year period.

Gross margin

Gross profit as a percentage of sales declined slightly to 31.2 per cent as compared with 32.1 per cent in the previous year.

Expenses

Selling, general and administrative expenses as a percentage of revenue increased slightly to 21.8 per cent from 20.7 per cent last year.

Net earnings

Net income for fiscal 2014 was $3,070,117, or 12 cents per basic and diluted share, based on 25,784,950 shares outstanding. Net income for 2014 included a $317,475 tax gain due to a change in tax estimate. For fiscal 2013, the company had net income of $1,320,268 or five cents per basic and diluted share based on 25,784,950 shares outstanding. Net income for fiscal 2013 includes $714,000 in tax expense.

Mr. Pape concluded: "We made great progress in 2014 growing our sales, expanding our base of independent installers and dealerships, and broadening our international footprint. We look forward to introducing new products while also continuing to deliver the training and support that differentiates XPEL from our competitors."

Conference call information

The company will host a conference call to discuss the fourth-quarter results today, March 31, 2015, at 11 a.m. Eastern Time.

To access the live webcast, log onto the XPEL Technologies website 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 May 1, 2015, and may be accessed by dialling 877-660-6853. International callers may dial 201-612-7415. Callers should use conference ID 13604517.

                               
                                                 
                         STATEMENT OF COMPREHENSIVE INCOME                         
                        (expressed in United States dollars)                        
                                                      
                                         Three months ended         12 months ended
                                                   Dec. 31,                Dec. 31,
                                           2014        2013        2014        2013
                                                            
Revenue                             $ 7,599,908 $ 4,965,912 $29,630,179 $17,898,812
Expenses
Direct costs                          5,228,015   3,389,278  20,373,246  12,153,098
Selling, general and administrative   1,939,475   1,121,259   6,464,660   3,702,819
Income from operations                  432,418     455,375   2,792,273   2,042,895
Interest (expense)                      (16,085)     (3,599)    (36,748)     (6,772)
Gain on sale of capital assets           (1,273)          -      (2,883)     (1,855)
                                        (17,358)     (3,599)    (39,631)     (8,627)
Net income before income tax            415,060     451,777   2,752,642   2,034,268
Provision for income tax
Current tax benefit (expense)           724,400           -     (66,525)          -
Deferred tax recovery (expense)         403,000    (171,000)    384,000    (714,000)
Net income                            1,542,460     280,777   3,070,117   1,320,268
Exchange differences on
translating foreign operations           15,721           -      15,721           -
Total comprehensive income            1,558,181     280,777   3,085,838   1,320,268
Net income attributable to
equity holders of the company         1,585,166     280,777   3,097,102   1,320,268
Non-controlling interest                (26,985)          -     (26,985)          -
                                      1,558,181     280,777   3,070,117   1,320,268
Earnings per share
Basic and diluted                          0.06        0.01        0.12        0.05

We seek Safe Harbor.