Xpel Technologies (DAP.U or XPLT) sells paint protection products that protect the vehicle from damage caused by rocks, gravel, salt, acid rain and sand. The company’s Ultimate Film has driven significant sales growth since 2011. When we first looked at Xpel it reminded us a lot of ZAGG (ZAGG) from back in 2008-09 when sales were just starting to ramp. Xpel has profitably grown revenues from $6 million in 2011, to ~$16 million for the LTM. The company has no debt, and a very clean share structure with only 25.7m shares outstanding with no options or warrants. We expect the growth trend to continue as more independent installers, new car dealerships, and international distributors, partner with Xpel. Several members on MicroCapClub have done exhaustive due diligence traveling to numerous dealers and attending car shows. As the company scales it’s business in 2014 and beyond we expect to start to see operating leverage drop more income to the bottom line. We also believe a possible up-listing to a major exchange in 2014 will bring many more eyes on the name.
Disclosure: Paul and Sean are LONG Xpel Technologies. This presentation was recorded on January 15th. All participants were not active in the stock on January 15th. The company DID NOT compensate MicroCapClub to present.
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