Xpel Inc (XPEL) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the XPEL, Inc. Third Quarter 2023 Earnings Call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, John Nesbett, IMS Investor Relations. Sir, the floor is yours.

大家好，歡迎參加 XPEL, Inc. 2023 年第三季財報電話會議。 （操作員指示）現在我很高興將發言權交給主持人 IMS 投資者關係部門的 John Nesbett。先生，地板是你的了。

Good morning, and welcome to our conference call to discuss XPEL's financial results for the third quarter of 2023. 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.

早安，歡迎參加我們的電話會議，討論 XPEL 2023 年第三季的財務業績。在今天的電話會議上，XPEL 總裁兼執行長 Ryan Pape； XPEL 高級副總裁兼財務長 Barry Wood 將概述業務營運情況並審查公司的財務表現。在準備好評論後，我們將立即回答電話會議參與者的問題。

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.

通話結束後，公司網站上將提供通話記錄。我將花點時間閱讀安全港聲明。在本次電話會議期間，我們將做出某些有關 XPEL, Inc. 及其業務的前瞻性聲明，其中可能包括但不限於資本交易收益的預期用途、擴展到新市場以及執行公司的成長策略。

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 differ 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 Securities and Exchange Commission.

此類陳述基於目前的預期和假設，這些預期和假設受到已知和未知的風險因素和不確定性的影響，可能導致實際結果與這些陳述中表達的結果有重大差異。其中一些因素在我們最新的 10-K 表格中進行了詳細討論，包括在向美國證券交易委員會提交的第 1A 項風險因素下。

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.

XPEL 不承擔公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。好的。現在，我將把電話轉給瑞安。來吧，瑞安。

Thank you, John, and good morning, everyone, and welcome from me also to our third quarter 2023 conference call. We had another strong quarter. Overall revenue growing 14.4% to $102.7 million. This was in line with our expectations for revenue and what we discussed on our Q2 call. Also, as expected, China did have a nice sequential increase from Q2 or still a 7% decline from Q3 2022, which impacted the quarter-over-quarter growth rate and our non-China revenue growth in the quarter was 17.4%.

謝謝約翰，大家早安，也歡迎我參加我們的 2023 年第三季電話會議。我們又經歷了一個強勁的季度。整體營收成長 14.4%，達到 1.027 億美元。這符合我們對收入的預期以及我們在第二季電話會議上討論的內容。此外，正如預期的那樣，中國確實較第二季度實現了不錯的環比增長，但較2022 年第三季度仍下降了7%，這影響了環比增長率，本季度我們的非中國收入增長率為17.4%。

Our U.S. region grew 14.5% compared to Q3 2022 to $59 million. Sequentially, this was essentially flat to Q2, which itself was a record quarter. Our U.S. business is now 57% of our overall revenue so it's performance serves as a significant driver of our overall results. U.S. new car sales continued to be solid despite the higher interest rate environment.

與 2022 年第三季相比，我們的美國地區成長了 14.5%，達到 5,900 萬美元。隨後，這與第二季度基本持平，而第二季度本身就是創紀錄的季度。我們的美國業務目前占我們總營收的 57%，因此其業績是我們整體業績的重要推動力。儘管利率環境較高，但美國新車銷售依然強勁。

We did see a slight reduction in the rate of growth in our aftermarket channel this quarter versus Q2. But overall, Q3 2022 was the peak quarter for last year. And as you know, we watch the front lines of our marketing customers very closely. And our customers tell us their business has been relatively consistent this summer, but probably off the fever pace we saw in Q3 of 2022.

我們確實看到本季售後通路的成長率與第二季相比略有下降。但總體而言，2022 年第三季是去年的高峰。如您所知，我們非常密切地關注行銷客戶的前線。我們的客戶告訴我們，他們今年夏天的業務相對穩定，但可能沒有我們在 2022 年第三季看到的狂熱步伐。

I know that each of you covers -- many of you cover our business and the industry closely so I want to take the opportunity to step back for a minute and discuss our channel strategy and how our multiple channels, in our view, complement each other and enable us to reach an expanding customer base. So as many of you know, paint protection film started almost exclusively in the aftermarket.

我知道你們每個人都密切關注我們的業務和行業，所以我想藉此機會退一步討論我們的通路策略以及我們認為我們的多個管道如何相互補充並使我們能夠接觸到不斷擴大的客戶群。眾所周知，漆面保護膜幾乎完全始於售後市場。

And the consumer had to first find out about PPF then he would take his or her car into an independently owned shop to have the product applied. So this consumer still represents a large portion of the channel and of the buyer. Enthusiast buyers dominate this channel, and we estimate an enthusiast buyer to be around 15% of all new car buyers.

消費者必須先了解 PPF，然後他或她才能將他或她的汽車帶到獨立商店應用該產品。因此，這個消費者仍然代表了通路和買家的很大一部分。狂熱買家主導了這個管道，我們估計狂熱買家約佔所有新車買家的 15%。

Over time, as dealerships saw their customers purchase PPF in the aftermarket, dealerships began to move to adopt PPF. And the reason for adoption is simple, to generate gross profit. And many dealerships outsource the installation to the aftermarket because they don't want to have to hire their own internal staff. And as you know, hiring internal staff in a dealership or a service center model can be challenging.

隨著時間的推移，隨著經銷商看到客戶在售後市場購買 PPF，經銷商開始採用 PPF。採用的原因很簡單，就是為了產生毛利。許多經銷商將安裝外包給售後市場，因為他們不想僱用自己的內部員工。如您所知，在經銷商或服務中心模式中僱用內部員工可能具有挑戰性。

Consumers demand product excellence and to be effective, dealerships need a technical skill set for installation yet they may only need a small team of installers or in some cases, just one person. This reality can make it challenging for dealerships to recruit, train and staff around time off, absences and other things. So some dealerships choose to build internal teams and are able to do this themselves successfully and they'll continue to do it.

消費者要求產品卓越，為了提高效率，經銷商需要一套安裝技術技能，但他們可能只需要一小群安裝人員，或在某些情況下只需要一個人。這一現實可能使經銷商在休假、缺勤和其他情況下招募、培訓和員工方面面臨挑戰。因此，一些經銷商選擇建立內部團隊，並且能夠自己成功地做到這一點，並且他們將繼續這樣做。

At the same time, there are other businesses that have no retail presence whatsoever who provide PPF services to dealerships. In our case, you're not going to find these customers on our dealer locator or likely even though they exist. We refer to these customers as dealership services. We've acquired several of them over time for paint protection film and window tint. And so we're in that business ourselves.

同時，還有其他沒有任何零售業務的企業向經銷商提供 PPF 服務。在我們的例子中，您不會在我們的經銷商定位器上找到這些客戶，或者即使他們存在，也很可能找不到。我們將這些客戶稱為經銷商服務。隨著時間的推移，我們已經購買了其中一些用於油漆保護膜和窗戶貼膜。所以我們自己也從事這個行業。

As you analyze our industry, it's important to understand that scaling to meet high penetration rates and dealerships is something a few of the aftermarket installers are interested in as this scaling requires substantially more human capital and a constant reinvestment of cash flow into the business. Likewise, you don't really see dealership groups universally scale installation internally across their enterprise in a consistent way.

當您分析我們的行業時，重要的是要了解，一些售後安裝商對擴大規模以滿足高滲透率和經銷商的興趣很感興趣，因為這種擴大需要更多的人力資本和不斷將現金流再投資到業務中。同樣，您也不會真正看到經銷商集團以一致的方式在整個企業內部普遍擴大安裝規模。

It's typically locally decided, and it's very much a patchwork in its implementation. So even still, as dealerships continue to sell more PPF and ultimately create more awareness for PPF, on the whole, this is not disruptive to the aftermarket in our view, for several reasons. One, the aftermarket participates in this work by doing work for dealerships in some cases, as I mentioned a minute ago. And then enthusiast buyers who are still the largest part of this channel who were the original PPF buyers, will often opt out of the dealership channel and take their new car directly into the aftermarket, seeking a more bespoke installation from someone they trust. And then third, obviously, the PPF market overall has continued to grow.

它通常是由當地決定的，並且在實施過程中很大程度上是拼湊而成的。因此，儘管如此，隨著經銷商繼續銷售更多的 PPF 並最終提高 PPF 的知名度，總體而言，我們認為這不會對售後市場造成破壞，原因有幾個。第一，正如我剛才提到的，在某些情況下，售後市場透過為經銷商做工作來參與這項工作。然後，仍然是該管道中最大部分的狂熱買家（即最初的 PPF 買家）通常會選擇退出經銷商管道，並將新車直接進入售後市場，從他們信任的人那裡尋求更客製化的安裝。第三，顯然，PPF 市場整體持續成長。

So net-net, the dealerships offering is increasing attach rates by finding people that would never take their car into the aftermarket. And as dealerships continue to adopt PPF, we've seen interest from the OEMs begin to develop. And again, this interest is profit motivated. Installing PPF out or near the point of manufacturer delivery is attractive because the vehicles are located together for efficiency.

因此，經銷商透過尋找永遠不會將汽車帶入售後市場的人來提高附加費。隨著經銷商繼續採用 PPF，我們看到原始設備製造商的興趣開始增長。再說一遍，這種興趣是出於利潤動機。在製造商交貨地點外或附近安裝 PPF 很有吸引力，因為車輛安裝在一起以提高效率。

The downside is you need a substantial physical footprint and human capacity to do a considerable number of vehicles as installation is still done manually without any currently available automated installation processes. So there's a limit ultimately to the scale that can be achieved in that environment. Additionally, OEM programs are susceptible to be usurped by dealerships who would prefer to internalize their programs and not select manufacturer's option for the product because they believe they can generate more profit and have more control.

缺點是您需要大量的實體空間和人力來安裝大量的車輛，因為安裝仍然是手動完成的，沒有任何目前可用的自動化安裝流程。因此，在這種環境下所能達到的規模最終是有限的。此外，OEM 計劃很容易被經銷商篡奪，經銷商更願意將其計劃內部化，而不是選擇製造商的產品選項，因為他們相信這樣可以產生更多利潤並擁有更多控制權。

And it's important to note, again, that the original and predominant enthusiast buyer may always prefer their local installer whom they know and trust and whose quality and workmanship they prefer, yet like dealerships, OEMs still have the ability to reach consumers, not captured by any other element of the channel and those that don't know about the product, which is helping to grow consumer awareness overall.

再次需要注意的是，原始和主要的發燒友購買者可能總是更喜歡他們了解和信任的本地安裝人員，他們更喜歡他們的品質和工藝，但像經銷商一樣，原始設備製造商仍然有能力接觸消費者，而不是被他們所捕獲。通路的任何其他元素以及那些不了解該產品的元素，這有助於提高消費者的整體意識。

So when you look at it in totality, we see the mix of channel activities as healthy and mandatory to the development of the PPF market and we don't see direct cannibalization of the business from one segment to another. As an example, even as you have seen more dealership participation in PPF over the past few years, the aftermarket is bigger than it's ever been for XPEL.

因此，當你從整體來看時，我們認為通路活動的組合對於 PPF 市場的發展是健康的和強制性的，並且我們沒有看到業務從一個細分市場到另一個細分市場的直接蠶食。舉個例子，儘管過去幾年你看到越來越多的經銷商參與 PPF，但 XPEL 的售後市場比以往任何時候都更大。

In XPEL, we have various internal measures, including our DAP software for estimating our vehicle attach rates for our products and the related revenue mix. In particular, we can look at this attach rate as it relates to traditional paint protection, which would be the front end of a vehicle or the full car of the vehicle, separate from, say, mini kits or wear-and-tear applications that would be additional.

在 XPEL 中，我們有各種內部衡量標準，包括用於估算產品的車輛附加率和相關收入組合的 DAP 軟體。特別是，我們可以考慮這種附著率，因為它與傳統的油漆保護有關，傳統的油漆保護是車輛的前端或整車，與迷你套件或磨損應用程式分開。將是額外的。

So as an example, in the case of Rivian, with whom we have a factory program, our U.S. XPEL aftermarket attach rates are higher than many other mates. In this case, the OEM program is incremental and is helping to grow attach rates overall. It's our view that initial buyers of a new model or a new brand like the recent development of the EV manufacturers are more likely to skew towards enthusiasts.

舉個例子，就 Rivian 而言，我們與該公司有一個工廠計劃，我們的美國 XPEL 售後市場附加率高於許多其他夥伴。在這種情況下，OEM 計劃是漸進式的，有助於提高整體附加率。我們認為，新車型或新品牌（例如電動車製造商最近的發展）的最初購買者更有可能偏向愛好者。

So we would expect attachment rates to be higher initially, but over time, if there's more mass market appeal, particularly if the price point is more accessible, the buyer profile will change to be more similar with the overall industry dynamics. So put simply, the incremental buyer of this type is less likely to be an enthusiast.

因此，我們預計最初的附著率會更高，但隨著時間的推移，如果大眾市場的吸引力更大，特別是如果價格更容易接受，買家的情況將變得與整體行業動態更加相似。簡而言之，這種類型的增量購買者不太可能是狂熱者。

This means, over time, we might expect to see attach rates go down on a new vehicle as they expand production and their mass market appeal. So today, as an example, our U.S. attach rate into Rivian is substantially higher than Tesla, for example, even excluding our OEM operation, and this is likely due to the early presence of the enthusiast buyer dominating the channel for a new vehicle.

這意味著，隨著時間的推移，我們可能會看到新車的附加費隨著產量的擴大和大眾市場的吸引力而下降。例如，今天，即使不包括我們的 OEM 業務，我們在美國對 Rivian 的購買率也遠高於特斯拉，這可能是由於早期狂熱買家主導了新車通路。

That said, as an example, our U.S. Porsche attach rate is substantially higher. And actually, multiples higher, yet again, because a large percentage of that core buyer are enthusiasts and because Porsche has a dealer network that exists and is very effective at selling the product. Other enthusiast dominated and higher average price point makes follow similar trends. Overall, it will take a range of approaches to continue to expand the market of paint protection film beyond the 15% enthusiast that I mentioned earlier and into the mainstream.

也就是說，舉例來說，我們的美國保時捷附加率要高得多。事實上，這個數字還要再高出幾倍，因為核心買家中很大一部分都是愛好者，而且保時捷擁有一個現有的經銷商網絡，並且在銷售產品方面非常有效。其他發燒友主導且較高的平均價格點使得遵循類似的趨勢。整體而言，將採取一系列措施，繼續擴大漆面保護膜市場，超越我先前提到的15%狂熱者，進入主流。

We estimate 25% of consumers will never buy the product and they probably wouldn't take it for free because the pride of ownership of their vehicle is just not there. Those consumers simply don't care. But at least 50% to 60% of the new car buyer in our estimation that are open to the product if they learn about it, if they can access it easily before, during or after the sale process, and if we can meet them with an appropriate price point to provide good value.

我們估計 25% 的消費者永遠不會購買該產品，而且他們可能不會免費獲得該產品，因為他們不存在擁有車輛的自豪感。那些消費者根本不在乎。但根據我們的估計，至少有50% 到60% 的新車購買者會對產品持開放態度，如果他們了解該產品，如果他們可以在銷售過程之前、期間或之後輕鬆訪問該產品，如果我們可以與他們見面適當的價格點以提供良好的價值。

To do that, we'll take a variety of sales channels and marketing activities to reach this group over time. So I know that's a lot to digest on our U.S. go-to-it, but to summarize, our channel strategy uniquely positions us to be there wherever the demand takes us and is a key part of our ability to drive sustained growth.

為此，我們將採取各種銷售管道和行銷活動來逐漸接觸到這群人。因此，我知道我們在美國的業務需要消化很多內容，但總而言之，我們的通路策略具有獨特的優勢，使我們能夠滿足需求的任何需求，並且是我們推動持續成長能力的關鍵部分。

So turning back to our quarterly results. Most of our other regions had solid quarters, led by European region, which posted 43.5% growth over the prior year quarter in our Latin America region, which grew 58.4% over the prior year quarter. Canada's growth rate was impacted a bit by FX using Q3 2022 exchange rates.

回到我們的季度業績。我們的大多數其他地區都有穩定的季度表現，其中以歐洲地區為首，該地區比去年同期增長了 43.5%；拉丁美洲地區比去年同期增長了 58.4%。使用 2022 年第三季匯率計算，加拿大的成長率受到了外匯的一些影響。

Canada revenue would have grown approximately 10% as the Canadian dollar weakened substantially in that time. And as I mentioned previously, China's Q3 performance was consistent with our expectations and that we saw sequential growth over Q2 of this year, but still a 7% decline over Q3 2022, which was the highest quarter for last year.

由於當時加幣大幅貶值，加拿大的營收將成長約 10%。正如我之前提到的，中國第三季的表現與我們的預期一致，我們看到比今年第二季連續成長，但仍比 2022 年第三季下降 7%，這是去年最高的季度。

The Q4 forecast we received from our distribution in China is positive and assuming we can ship all the product as forecast would indicate our Q4 revenue from China would be one of our highest quarters in recent years. Of course, things can change and they have in the past, but we're optimistic that this will be a good quarter for China.

我們從中國分銷中收到的第四季度預測是積極的，假設我們能夠按預測運送所有產品，則表明我們第四季度來自中國的收入將是我們近年來最高的季度之一。當然，情況可能會發生變化，過去也曾發生過，但我們樂觀地認為，這對中國來說將是一個好的季度。

I also want to update you that we remain on track to have our initial team in country at the end of the year as we assess a variety of aspects on our overall go-to-market in China. And of course, one of our goals as we work on this project is to eliminate the lumpiness of our China business in terms of sell-in versus sell-through.

我也想向您通報最新情況，我們仍有望在今年年底在中國組建我們的初始團隊，同時我們正在評估我們在中國的整體市場進入的各個方面。當然，我們開展此專案的目標之一是消除中國業務在銷售與銷售方面的不穩定性。

And as we're doing with China, we're also establishing our first facility in India which will be opened at the beginning of the year and looking at a more direct approach for that market as it develops and as it's in its infancy. As we've discussed in the past, our U.S. business does have some seasonality in Q1, which is our lowest quarter.

正如我們在中國所做的那樣，我們也在印度建立了第一家工廠，該工廠將於今年年初開業，並在該市場的發展和起步階段尋找更直接的方法。正如我們過去討論過的，我們的美國業務在第一季確實有一些季節性，這是我們業績最低的季度。

Q2 and Q3 trade-off being our highest quarters and then we typically see a drop-off in Q4. Given that in our expectations for China, as I mentioned earlier, assuming we can deliver on the forecast, we expect Q4 revenue to be in the $98 million to $100 million range, which would put our annual revenue growth rate toward the lower end of the 20% to 25% range we've discussed this year.

第二季和第三季的權衡是我們最高的季度，然後我們通常會在第四季看到下降。鑑於我們對中國的預期，正如我之前提到的，假設我們能夠實現這一預測，我們預計第四季度的收入將在9800 萬美元至1 億美元的範圍內，這將使我們的年收入增長率接近全年的低端。我們今年討論過 20% 到 25% 的範圍。

On margin, our gross margin for the quarter finished at 40.4%, which is a bit lower than our year-to-date run rate. We did have around $1 million of onetime adjustments in inventory for the quarter. And as we moved off our supply chain concerns we've had coming into the year and years prior, and we've improved the manufacturing throughput. We have remnants and offcuts and other material that is more commercially challenging to process that no longer needs to be retained as a safety stock.

在利潤率方面，我們本季的毛利率為 40.4%，略低於我們今年迄今的運行率。本季我們確實對庫存進行了約 100 萬美元的一次性調整。當我們擺脫了供應鏈問題時，我們已經進入了一年和幾年前，並且我們提高了製造吞吐量。我們有剩餘物、邊角料和其他材料，這些材料在加工上更具商業挑戰性，不再需要保留作為安全庫存。

And so that's sort of the adjustment that you see here. Our processes in this area will continue to improve and already has. So perhaps some of that adjustment is probably out of period. And if you normalize for that, our gross margin would have been a little less choppy from quarter-to-quarter this year. But I certainly don't want to take away from the big picture where our improving gross margin profile has been terrific.

這就是您在這裡看到的調整。我們在這一領域的流程將繼續改進，而且已經做到了。因此，也許其中一些調整可能已經過時了。如果你對此進行正常化，我們今年各季度的毛利率波動會稍微小一些。但我當然不想忽視我們的毛利率狀況不斷改善的大局。

So nothing's changed in terms of our outlook related to the opportunities for that gross margin expansion. We still expect to close the year at/or near 42% gross margin and still expect our gross margin profile to continue to expand in 2024 and then beyond. In other business updates, we closed on 2 acquisitions in the fourth quarter of the combined purchase price of around $13 million.

因此，我們對毛利率擴張機會的展望沒有任何變化。我們仍然預計今年的毛利率將達到/或接近 42%，並且仍然預計我們的毛利率將在 2024 年及以後繼續擴大。在其他業務更新中，我們在第四季度完成了 2 項收購，總收購價約為 1,300 萬美元。

One was a Canadian-based installation chain of 6 locations that came to market. The other was a European-based business installing product for 2 OEMs at a small scale. Both of these will nicely complement our go-to-market strategy that we've discussed, and you should add around $11 million in full year 2024 revenue. We also have 2 acquisitions to close in the remainder of the year, one in the U.S. and one in Australia to supplement our direct model in that market that started last year with the acquisition of our distributor.

其中之一是進入市場的位於加拿大、擁有 6 個地點的安裝鏈。另一家是歐洲企業，為 2 家 OEM 廠商小規模安裝產品。這兩者都將很好地補充我們已經討論過的進入市場策略，您應該在 2024 年全年收入中增加約 1100 萬美元。我們還有兩項收購要在今年剩餘時間內完成，一項在美國，一項在澳大利亞，以補充我們去年收購經銷商後開始在該市場的直接模式。

Our acquisition pipeline remains healthy, and we expect to deploy all of our excess cash into this strategy, and we still think that this is the best use for our cash. The acquisition strategy focused on 3 core targets. First, we're looking to expand our distribution to other key markets globally, we're acquiring our distributors might make sense.

我們的收購管道保持健康，我們預計將所有多餘現金部署到這項策略中，我們仍然認為這是我們現金的最佳用途。此次收購策略重點在於3個核心目標。首先，我們希望將我們的分銷範圍擴大到全球其他主要市場，我們收購我們的經銷商可能是有意義的。

Our Australia acquisition from last year that I mentioned a second ago, is a great example of this, where we have 3x the revenue we had prior to the acquisition, highest margin profile in the system, and we can directly execute on all facets of the go-to-market in country. As we've discussed before, the closer we are to the end customer, the more successful we are in that particular market as product awareness propagates.

我剛才提到的去年我們在澳洲的收購就是一個很好的例子，我們的收入是收購前的 3 倍，系統中的利潤率最高，而且我們可以直接在收購之前的各個方面執行進入國內市場。正如我們之前討論的，隨著產品意識的傳播，我們離最終客戶越近，我們在該特定市場上就越成功。

Secondly, we're looking into the channel for things like dealership services, where we can invest in a part of the market that we don't think is well served to tie into my remarks earlier. And finally, we'll always look at adjacent product or service lines that complement our current portfolio as a possible acquisition target. One example of an adjacent market is colored films. We get asked a lot about this.

其次，我們正在研究經銷商服務等管道，我們可以投資於我們認為不符合我先前言論的部分市場。最後，我們將始終將補充我們目前產品組合的鄰近產品或服務線視為可能的收購目標。鄰近市場的例子是彩色膠片。我們常被問到這個問題。

Today, you'll see vehicle wraps used for marketing purposes and for color change. Historically, that market is driven by vinyl films. And now over the past few years, you've seen the presence of more TPU-based colored films where TPU is what paint protection films made of. And this is obviously the more similar in its construction to paint protection film.

今天，您將看到用於行銷目的和改變顏色的車輛貼膜。從歷史上看，該市場是由乙烯基薄膜驅動的。在過去的幾年裡，您已經看到了更多基於 TPU 的彩色薄膜的出現，其中 TPU 是油漆保護膜的製成材料。而這顯然在結構上與漆面保護膜更加相似。

There are probably half a dozen to a dozen TPU-based color products on the market today and then a dozen or 2 dozen or more sort of cast vinyl products, which have been the traditional mainstay of that business. Wrapping an entire vehicle with colored film, be it vinyl or TPU, have some of the same challenges as a PPF installation, given the current manual application process.

目前市場上可能有六到十幾種基於 TPU 的彩色產品，然後是一打、兩打或更多類型的鑄塑乙烯基產品，這些產品一直是該業務的傳統支柱。考慮到目前的手動應用流程，用彩色薄膜（無論是乙烯基薄膜還是 TPU 薄膜）包裹整個車輛都面臨著與 PPF 安裝相同的挑戰。

It's a bit more difficult to install than PPF in some cases, because you may want to disassemble part of the vehicle to ensure all painted surfaces are covered so you don't have any gaps or scenes in coverage. However, given the cost quality and difficulty of full car installation, including the lack of reliable automated installation capability and the need for repairability of what's installed in the fleet, it's unlikely, in our opinion, we'll see films replace paint in mass anytime soon, if ever.

在某些情況下，安裝比 PPF 更困難，因為您可能需要拆卸車輛的一部分以確保覆蓋所有油漆表面，這樣覆蓋範圍內就不會出現任何間隙或場景。然而，考慮到整車安裝的成本品質和難度，包括缺乏可靠的自動化安裝能力以及車隊安裝的可修復性需求，我們認為，我們不太可能在任何時候看到薄膜大規模取代油漆很快，如果有的話。

It's more likely to continue to be used as they are now or bespoke colors, not offered through a manufacturing process, for things like contrast roofs, for graphics and marketing and then for select vehicle parts that are painted off-line today and integrated into a final build. Many of our aftermarket installers came to paint protection film business from the traditional colored wrap business because they found the PPF business more attractive and a larger potential customer base.

它更有可能繼續按現在的樣子或定制顏色（不通過製造過程提供）用於諸如對比屋頂、圖形和營銷，然後用於當今離線噴漆並集成到系統中的選定車輛零件。最終構建。我們的許多售後安裝人員從傳統的彩膜業務轉向漆面保護膜業務，因為他們發現PPF業務更具吸引力且擁有更大的潛在客戶群。

So we've had a wait-and-see approach to this market relative to our overall priorities and its future with us, even though it's probably one of the next most adjacent markets in terms of product. In that context, should we decide to participate in it, the colored wrap business should be seen as something that can expand the TAM of XPEL, not something that threatens to reduce it.

因此，相對於我們的整體優先事項及其未來，我們對這個市場採取了觀望態度，儘管就產品而言，它可能是第二個最鄰近的市場之一。在這種情況下，如果我們決定參與其中，彩色包裝業務應該被視為可以擴大 XPEL 的 TAM，而不是威脅減少它的東西。

Across all our product lines, our suppliers are very important to us, and we've developed an extended base of raw materials and converting suppliers in particular, for our paint protection film business over the years. Even as we've diversified that manufacturing using the asset-light model and outsourced manufacturing model that we've used since inception, we've had a strong and long-standing 15-year relationship with entrotech.

在我們所有的產品線中，我們的供應商對我們來說非常重要，多年來，我們特別為我們的漆面保護膜業務開發了廣泛的原材料和加工供應商基礎。儘管我們使用自成立以來一直使用的輕資產模式和外包製造模式實現了製造多元化，但我們仍與 entrotech 建立了長達 15 年的牢固而長期的合作關係。

Earlier this year, it was announced that PPG had formed a joint venture with entrotech around colored film products. Entrotech had developed over a period of many years. We welcome the PPF joint venture with entrotech. And there are many possible opportunities for collaboration with PPG. We're actively discussing ways in which we might do that with their senior leadership.

今年早些時候，PPG 宣布與 entrotech 成立一家圍繞彩色薄膜產品的合資企業。 Entrotech 經過多年的發展。我們歡迎 PPF 與 entrotech 成立合資企業。與 PPG 的合作機會有很多。我們正在與他們的高階領導層積極討論如何做到這一點。

Next, let me turn to our leadership team here and provide a brief update. As many of you know, Mat Moreau has decided to retire from the business after serving as our Senior Vice President of Sales and Product. Rejoined the company in 2015 after we acquired his business in Canada and has held positions of increasing responsibility ever since. He will be missed.

接下來，讓我向我們的領導團隊介紹一下最新情況。眾所周知，Mat Moreau 在擔任我們的銷售和產品高級副總裁後決定從公司退休。我們收購了他在加拿大的業務後，他於 2015 年重新加入公司，此後一直擔任越來越重要的職位。人們會想念他的。

We wish him all the best. Also excited about 2 additions recently, Tony Rimas has joined us as our VP of Revenue, commercial revenue and strategy responsibility, including our partnerships. And Tony has a wealth of automotive industry experience, including time running a top 50 dealership group and then later in automotive venture capital. So he's a great addition to the team.

我們祝他一切順利。托尼·裡馬斯 (Tony Rimas) 也對最近新增的 2 名員工感到興奮，他加入我們，擔任收入、商業收入和戰略責任（包括我們的合作夥伴關係）的副總裁。 Tony 擁有豐富的汽車產業經驗，包括曾管理 50 強經銷商集團，後來又從事汽車創投。所以他對球隊來說是一個很好的補充。

And finally, we brought on Kim Steiner, is our Vice President of People and Culture. And we have nearly 1,000 employees now and growing as we operate on the diverse business model. It's a critical role. Really excited to have her on board. And our culture centers around doing what's best for the customer with a no tomorrow attitude, and Kim will be integral in helping drive that even further across the organization.

最後，我們聘請了金·斯坦納 (Kim Steiner)，他是我們負責人事和文化的副總裁。我們現在擁有近 1,000 名員工，並且隨著我們多元化業務模式的運作而不斷壯大。這是一個關鍵的角色。很高興她能加入。我們的文化以不顧明天的態度為客戶做最好的事情為中心，Kim 將在幫助整個組織進一步推動這一目標方面發揮不可或缺的作用。

We're also working on a number of internal changes to reflect our organization both around key operating functions but even as importantly around key regions, Asia, as we mentioned earlier, in Middle East and India going forward to ensure that we've got leadership in the region and that we have a sufficiently decentralized decision-making process to remain the agile company that we have been and need to be.

我們也正在努力進行一些內部變革，以反映我們的組織不僅圍繞關鍵營運職能，而且同樣重要的是圍繞關鍵地區，如我們之前提到的亞洲、中東和印度，以確保我們擁有領導地位我們擁有充分分散的決策流程，以保持我們過去和需要成為的敏捷公司。

Finally, we just attended the annual SEMA show, which is the largest aftermarket automotive event of its kind and one of the largest trade shows in existence. I'm really proud of our amazing display there, which you may have seen on social media through the XPEL house, which showcased all of our products in an innovative way. I know our presence there was universally well received.

最後，我們剛參加了一年一度的 SEMA 展會，這是同類中最大的汽車售後市場盛會，也是現有最大的貿易展之一。我對我們在那裡的精彩展示感到非常自豪，您可能已經透過 XPEL 之家在社交媒體上看到過，它以創新的方式展示了我們所有的產品。我知道我們的存在受到了普遍的歡迎。

We've got a lot of other great marketing initiatives going into 2024, including additional sponsorships and targeted marketing programs to drive more of that non-enthusiast car buyer to the market for paint protection film, as I discussed earlier. And then additionally, we have a new global platform launching next year, a global web platform launching next year with enhanced e-commerce for selling car care products to increase the number of touch points we have with our customers over the lifetime ownership of their vehicle.

進入 2024 年，我們還有許多其他出色的行銷舉措，包括額外的贊助和有針對性的行銷計劃，以吸引更多非熱衷汽車購買者進入漆面保護膜市場，正如我之前討論的那樣。此外，我們明年還將推出一個新的全球平台，以及一個全球網路平台，該平台將增強用於銷售汽車護理產品的電子商務，以增加我們與客戶在車輛終身擁有權期間的接觸點數量。

Before turning it over to Barry, just want to take note, obviously, there's been quite a bit of external noise and conjecture during the quarter. And this noise been built on a great deal of speculation. We're on track for a strong year and remain focused on providing outstanding service to our customers. And I've never been more optimistic about the long-term opportunity for our business. XPEL, we are a strong and industry-leading business and our strength is based first on having the best team in the business.

在將其交給巴里之前，我只想注意一下，顯然，本季度存在相當多的外部噪音和猜測。這種噪音是建立在大量猜測的基礎上的。我們預計將迎來強勁的一年，並將繼續專注於為客戶提供卓越的服務。我對我們業務的長期機會從未如此樂觀。 XPEL，我們是一家強大且業界領先的企業，我們的優勢首先是基於擁有業界最好的團隊。

And then on the fact that we have a very diverse business, diverse by geography, by customers, by channels and by product lines and an intense focus on executing the go-to-market strategy. So with that, we'll turn it over to Barry.

事實上，我們擁有非常多元化的業務，根據地理位置、客戶、通路和產品線而多樣化，並且非常注重執行進入市場策略。因此，我們將把它交給巴里。

Thanks, Ryan, and good morning, everyone. Just a little bit more color on our revenue. If you look at the product lines, combined paint protection film and cutbank revenue grew 8.4% in the quarter and was up sequentially a little under 4%. Our window film product line revenue grew 21.9% quarter-over-quarter to $18.8 million which represented 18.3% of our revenue. And this was the second highest quarter for the window film product line in our history, coming off a record quarter in Q2.

謝謝瑞安，大家早安。只是我們的收入多了一點色彩。如果你看一下產品線，你會發現本季漆面保護膜和 cutbank 的合併收入成長了 8.4%，季增略低於 4%。我們的窗膜產品線營收季增 21.9% 至 1,880 萬美元，占我們營收的 18.3%。這是我們歷史上窗膜產品線第二高的季度，繼第二季創紀錄的季度之後。

Revenue for the Vision product line, which included the total window film, which is included in total window film grew 50% to $2.7 million, and this represented approximately 14% of total window film revenue and 2.6% of overall revenue. And sequentially, this was up approximately 12% over our previous high in Q2.

Vision 產品線（包括窗膜總收入）的收入成長了 50%，達到 270 萬美元，約佔窗膜總收入的 14% 和總收入的 2.6%。隨後，該數字比第二季的先前高點上漲了約 12%。

Our OEM business also had a nice quarter with revenue growing a little under 62% versus Q3 2022 to $3.9 million, and this was down sequentially a little bit as production stops in August for most of our European OEMs for vacation. So this sequential decline was normal and expected. Our Fusion ceramic coating product revenue, which is included in our other revenue line, grew 35% for the quarter to $1.5 million and represented 1.5% of total revenue for the quarter.

我們的 OEM 業務也有一個不錯的季度，收入比 2022 年第三季度增長略低於 62%，達到 390 萬美元，而且由於我們大多數歐洲 OEM 廠商在 8 月份休假而停產，收入環比略有下降。因此，這種連續下降是正常且符合預期的。我們的 Fusion 陶瓷塗層產品收入（包含在我們的其他收入線中）在本季度增長了 35%，達到 150 萬美元，佔本季總收入的 1.5%。

Our total installation revenue, combining product and service grew 34.2% in the quarter and represented 17.2% of total revenue. And on a year-to-date basis, total revenue grew 18.4%. Our Q3 SG&A expense grew 29.5% to $23.9 million and represented 23.3% of total revenue and included in our Q3 SG&A was approximately $0.6 million of costs related to onetime executive relocation and legal fees related to acquisitions that we discussed earlier. We also incurred approximately $0.5 million in onetime costs related to some research and development around some new product development.

本季我們的總安裝收入（包括產品和服務）成長了 34.2%，佔總收入的 17.2%。年初至今，總收入成長了 18.4%。我們第三季的SG&A 費用成長了29.5%，達到2,390 萬美元，佔總營收的23.3%，第三季的SG&A 費用中包含約60 萬美元的與一次性高階主管調動相關的成本以及與我們之前討論的收購相關的法律費用。我們還產生了約 50 萬美元的一次性成本，這些成本與圍繞某些新產品開發的一些研究和開發相關。

If you normalize for that, SG&A would have grown approximately 25% for the quarter, representing approximately 22% of total revenue. EBITDA for the quarter grew 4.1% to $19.7 million, reflecting an EBITDA margin of 19.2%. And if you normalize for the items I mentioned previously, EBITDA would have grown 16.7% and EBITDA margin would have been 21.5%.

如果將此正常化，該季度的 SG&A 將成長約 25%，約佔總營收的 22%。本季 EBITDA 成長 4.1%，達到 1,970 萬美元，EBITDA 利潤率為 19.2%。如果將我之前提到的項目標準化，EBITDA 將成長 16.7%，EBITDA 利潤率將達到 21.5%。

Net income for the quarter grew 2.5% to $13.7 million, reflecting net income margin of 13.3%. And again, normalizing for those items that I mentioned, net income would have grown 16.9% and net income margin would have been 15.2%. EPS finished at $0.49 per share for the quarter and normalized EPS finished at $0.56 per share. On a year-to-date basis, EBITDA grew 23.4% to $59.2 million and net income grew 23.6% to $40.8 million.

該季度淨利潤成長 2.5%，達到 1,370 萬美元，淨利潤率為 13.3%。再次，對我提到的那些項目進行標準化，淨利潤將成長 16.9%，淨利潤率將達到 15.2%。本季每股收益最終為 0.49 美元，標準化每股收益為 0.56 美元。年初至今，EBITDA 成長 23.4%，達到 5,920 萬美元，淨利潤成長 23.6%，達到 4,080 萬美元。

We did have an issue during the quarter where one of our suppliers began experiencing some abnormal quality issues. And this -- we start seeing this in late Q2, early Q3, and they were unable to pinpoint the issue or really know when it was going to be resolved. And one thing that Ryan has been very clear about with our team is that we should never run out of product for our customers. If we were to be out of stock on something that our aftermarket customers need, it would really be devastating for them because most of them operate on a just-in-time inventory basis. And because of this, we do everything we can to not let stockouts happen.

我們在本季確實遇到了一個問題，我們的一個供應商開始遇到一些異常的品質問題。我們在第二季末、第三季初開始看到這一點，他們無法找出問題或真正知道問題何時會得到解決。瑞安（Ryan）對我們團隊非常明確的一件事是，我們永遠不應該用完客戶的產品。如果我們的售後市場客戶需要的東西缺貨，這對他們來說確實是毀滅性的，因為他們中的大多數都是在即時庫存的基礎上運作的。正因為如此，我們盡一切努力不讓缺貨發生。

So when we saw these quality issues and not really having any visibility into when they would be resolved, we had to increase our orders with alternate suppliers to ensure we were able to meet demand later in the quarter and Q4. Ultimately, the issue ended up getting resolved relatively quickly, which was good without any customer-facing impact. But by that time, we had more raw materials in the pipeline. Consequently, we ended the quarter with higher inventory than planned. Our days on hand were flat to Q2, but we'll see an increase in days on hand in Q4 and we should be back to normal in Q1 as the inventory sells through.

因此，當我們看到這些品質問題並且無法真正了解這些問題何時得到解決時，我們必須增加與替代供應商的訂單，以確保我們能夠滿足本季稍後和第四季的需求。最終，問題得到了相對較快的解決，這很好，沒有對客戶產生任何影響。但到那時，我們已經準備好了更多原料。因此，本季末我們的庫存高於計劃。我們的庫存天數與第二季持平，但我們會看到第四季的庫存天數增加，隨著庫存售完，我們應該會在第一季恢復正常。

Even with that, our cash convergence cycle did improve slightly in the quarter. Cash flow from ops for the quarter was $11.1 million. We had a bit of an anomaly on our cash flow reporting for the quarter related to our acquisitions that we closed subsequent to the quarter end. We had put approximately USD 7.4 million in escrow in advance of the closing -- these closings.

即便如此，我們的現金收斂週期在本季確實略有改善。本季營運現金流為 1,110 萬美元。我們在本季的現金流量報告中出現了一些異常情況，這與我們在季度末後完成的收購有關。在交易完成之前，我們已經存入了約 740 萬美元的託管資金。

This amount sits in our prepaid expense on our balance sheet and accordingly, is reflected in our operating cash flows. And this will flip to investing in Q4 when we booked the acquisition. So absent this anomaly, operating cash flows would have been approximately $18.5 million.

這筆金額屬於我們資產負債表上的預付費用，因此也反映在我們的經營現金流量中。當我們預訂收購時，這將轉向第四季度的投資。因此，如果沒有這種異常情況，經營現金流量約為 1,850 萬美元。

And if you compare that sequentially to Q2, it was slightly down due to the inventory we added related to the quality issue. Even with that, our cash we're in really good shape from our cash perspective. And we did pay off line of credit during the quarter, and we expect to be able to generate enough cash to execute on our immediate acquisition plans. And of course, this will always depend on deal size, and we're certainly not opposed to some modest leverage where appropriate. And generally, we're still seeing deal multiples in the 4x to 6x range. So from a capital allocation perspective, these deals are the right thing to do and remain solid value adds for us. So another good quarter for us, and we look forward to closing out the year strong. With that, operator, we'll now open the call up for questions.

如果你將其與第二季度進行比較，你會發現由於我們添加了與品質問題相關的庫存，因此略有下降。即便如此，從現金角度來看，我們的現金狀況仍然非常好。我們確實在本季度還清了信貸額度，我們預計能夠產生足夠的現金來執行我們的即時收購計劃。當然，這始終取決於交易規模，我們當然不反對在適當的情況下使用一些適度的槓桿。一般來說，我們仍然看到交易倍數在 4 倍到 6 倍範圍內。因此，從資本配置的角度來看，這些交易是正確的做法，並且為我們帶來了可靠的增值。因此，我們又度過了一個美好的季度，我們期待著以強勁的勢頭結束這一年。接線員，現在我們將開始提問。

(Operator Instructions) Your first question is coming from Steve Dyer from Craig Hallum.

（操作員說明）您的第一個問題來自 Craig Hallum 的 Steve Dyer。

Just, I guess, first, on the inventory, do you anticipate any more inventory write-downs and then, I guess, even backing that out in the quarter, gross margin was a touch lighter than I think I would have expected. Anything else kind of to call out there in the quarter in terms of sort of things that caught you by surprise in the gross margin line?

只是，我想，首先，在庫存方面，您是否預計會有更多的庫存減記，然後，我想，即使在本季度支持這一點，毛利率也比我預期的要低一些。在本季的毛利率中，還有什麼值得您驚訝的事情嗎？

No, Steve, I think we don't expect any more adjustments like that. I mean, obviously, over a longer period of time, there's always things would happen, but sort of nothing planned. In the quarter, you've got China mix, you've got a little FX. You've got lower labor utilization with some of the OEM August shutdowns and things like that. So nothing of consequence to point out, probably just a few incremental pieces like that.

不，史蒂夫，我認為我們預計不會再有類似的調整。我的意思是，顯然，在較長一段時間內，總是會發生一些事情，但沒有任何計劃。在這個季度，你有中國的混合，你有一點外匯。由於八月份一些 OEM 工廠停工以及類似的情況，勞動力利用率較低。所以沒有什麼值得指出的，可能只是一些類似的增量部分。

Okay. And then your gross margin guidance for Q4 implies a pretty strong quarter even with a little bit lower revenue and the China mix, et cetera. Kind of help me understand -- kind of what sort of gives you that continued confidence that gross margins will really be pushing that 42% number.

好的。然後，您對第四季度的毛利率指導意味著即使收入和中國組合等略有下降，該季度也相當強勁。這有助於我理解——是什麼樣的方式讓你對毛利率確實會推動 42% 的數字保持持續的信心。

Well, I mean, we knew going into the year looking at it on a full year basis, what our expectations were, and we're really kind of running hot on that to start the year. And we've had planned what we expected in terms of a strong Q4 for China all year. We've talked about that we expected the year to be back-end loaded. So that's what our modeling continues to suggest. And then obviously, revenue mix, currency, these things will matter for the fourth quarter like they did for the third.

嗯，我的意思是，我們知道進入這一年會以全年為基礎來看待它，我們的期望是什麼，我們真的很熱衷於新年伊始。我們已經計劃好了中國第四季全年強勁的預期。我們已經討論過，我們預計今年將是後端加載的。這就是我們的模型繼續顯示的內容。顯然，收入組合、貨幣等因素對第四季來說很重要，就像第三季一樣。

But in aggregate, the whole year has been relatively consistent aside from, say, Q2 where we were really running hot on gross margin, pushing above that 42%.

但總體而言，全年表現相對穩定，除了第二季度，我們的毛利率確實非常高，超過了 42%。

Yes. A couple of more questions, I guess, just on the quarter. I guess I've not heard you call out onetime R&D expense for new product development before. Can you give any more detail sort of what that is? Is that product still in development? Any color there?

是的。我想還有幾個關於本季的問題。我想我以前沒聽你說過新產品開發的一次性研發費用。你能更詳細地說明那是什麼嗎？該產品還在開發中嗎？那裡有什麼顏色嗎？

Steve, we've built over the past 5 years, a substantial internal R&D team, R&D, quality and adjacent functions, both by people and then investment in equipment. But we also utilize third parties for certain projects that either we don't have the internal expertise for that we're trying to move faster on. So some of that happens and it's not really noteworthy based on the timing of the expense and when it occurs.

史蒂夫，在過去的 5 年裡，我們已經建立了一支強大的內部研發團隊、研發、品質和相關職能，無論是人員還是設備投資。但我們也會利用第三方來完成某些項目，這些項目要不是我們不具備內部專業知識，但我們正在努力加快推進速度。因此，有些事情發生了，但根據費用的時間和發生的時間，這並不是真正值得注意的。

In this case, it just kind of happened to hit in this quarter with a slightly larger amount alongside these other sort of onetime expenses. So we called it out. but it really reflects sort of the continuing cadence of things we're doing, not a one-off, looking at how do we make our existing products better in the markets we're in. And then as we look at adjacencies, where else might we want to go. So I wouldn't call it out to any specific area we're focused on. I think we just really call it out due to the timing of how it presented.

在這種情況下，它只是碰巧在本季度與其他類型的一次性支出一起出現了略大的金額。所以我們大聲疾呼。但這確實反映了我們正在做的事情的持續節奏，而不是一次性的，並著眼於如何使我們現有的產品在我們所在的市場中變得更好。然後當我們考慮鄰近地區時，還有哪些地方可以改進？我們可能想去吧。因此，我不會將其稱為我們關注的任何特定領域。我認為我們只是因為它呈現的時間而真正將其大聲疾呼。

Got you. Okay. And then I guess as you look forward to next year, I know you only guide one quarter out, but you've typically kind of been running in that 20-plus percent range for a long time, maybe that's aggressive in a year that it feels like we're going into a recession, et cetera. But I guess any interest in taking a big picture swipe at how you're thinking about next year?

明白你了。好的。然後我想，當你展望明年時，我知道你只指導了四分之一，但你通常會在 20% 以上的範圍內運行很長一段時間，也許這在一年中是激進的感覺我們正在陷入衰退，等等。但我想您是否有興趣全面了解您對明年的看法？

Well, I mean, I agree with you. We've had the macro question, and I guess we really had that coming into 2024, too, if you picture yourself at this time last year or we had it coming into 2023 rather, and this year, I think, by all accounts for everybody, probably ended up stronger than was thought in November 2022. So I think with that caveat in mind, if we were to see kind of the tempo that we're in now continue, I think we would be looking in a 2024 environment at kind of a 15% to 20% sort of organic growth rate. That's kind of how we see it. That then subject to change from sort of the inorganic acquisition components.

嗯，我的意思是，我同意你的觀點。我們遇到了宏觀問題，我想我們在 2024 年也確實遇到了這個問題，如果你想像一下去年這個時候的情況，或者我們在 2023 年遇到了這個問題，我認為，從各方面來看，今年大家，最終的結果可能比2022 年11 月想像的要強。所以我認為考慮到這一點，如果我們要看到我們現在所處的節奏繼續下去，我認為我們會在2024 年的環境中尋找有機增長率為15% 到20%。我們就是這麼看的。然後，這可能會因無機採集組件的種類而改變。

And then obviously, to the downside, it's the recession risk or the auto market lose a steam from the pace it's been on, that would potentially challenge that to the downside. But I think we see enough opportunity and we see angles for organic growth into the future to give us kind of that sustained organic growth rate? Are we going to hit 20% compounded organically year-over-year? That might be a little a little tough as you get to larger numbers. But I think if you could get to 15% to 15-plus percent, that would be good in this environment.

顯然，不利的一面是經濟衰退風險或汽車市場失去了以往的動力，這可能會帶來下行挑戰。但我認為我們看到了足夠的機會，我們看到了未來有機成長的角度，可以為我們帶來持續的有機成長率？我們的有機複合成長率是否會達到 20%？當你得到更大的數字時，這可能有點困難。但我認為，如果你能達到 15% 到 15% 以上，在這種環境下那就很好了。

Yes, absolutely. And then lastly, I don't necessarily want to ask you to comment on somebody else's business, but you touched on the PPG, entrotech joint venture. There's been some chatter just around their ability or progress in embedding I guess, PPF or a PPF like alternative into the paint. We've done quite a bit of work around that and have not seen anything remotely that would suggest that, that's happening, but give you an opportunity, I guess, to comment on it as you wish.

是的，一點沒錯。最後，我不一定想請您評論別人的業務，但您談到了 PPG、entrotech 合資企業。我猜他們在將 PPF 或類似 PPF 的替代品嵌入油漆中的能力或進展方面存在一些爭議。我們已經圍繞這個問題做了相當多的工作，但還沒有看到任何遠端跡象表明這種情況正在發生，但我想，給你一個機會，讓你可以根據自己的意願對此進行評論。

Sure. Yes. We watch these things closely. I can tell you that there's no known technology that puts film inside paint that we're aware of, and this is not something that our partners at PPG are doing. And so I think that what you're seeing on a broader basis is can you use films to augment or replace paint in limited circumstances. That's what's been kind of developing at a slow pace, probably for the past 10 years but that's a far cry from some theoretical technology to put film inside paint and that doesn't exist.

當然。是的。我們密切注意這些事情。我可以告訴你，據我們所知，還沒有任何已知技術可以將薄膜放入油漆中，而且我們 PPG 的合作夥伴也沒有這樣做。因此，我認為您在更廣泛的基礎上看到的是，您是否可以在有限的情況下使用薄膜來增強或取代油漆。這可能是過去十年來緩慢發展的技術，但這與將薄膜放入油漆的理論技術相去甚遠，而且這種技術並不存在。

Your next question is coming from Jeff Van Sinderen from B. Riley.

您的下一個問題來自 B. Riley 的 Jeff Van Sinderen。

So maybe we could just touch on your OEM business a little bit more. Maybe you can kind of give us your thoughts on how you see that business developing? I think you said you mentioned that you actually acquired a small OEM-related business, if there's any more detail you can give us on that? And just kind of overall, speak to your outlook for the OEM business.

所以也許我們可以多談談你們的 OEM 業務。也許您可以告訴我們您如何看待該業務的發展？我想您提到您實際上收購了一家小型 OEM 相關業務，您是否可以向我們提供更多細節？總的來說，請談談您對 OEM 業務的展望。

Sure. I think, Jeff, we tried to give a lot more color to how we view the channel and our remarks this time just because we do see all of these pieces as complementary. And on an individual unit basis, you could cannibalize one unit from one channel to the other. But net-net-net, we see this as a way to grow awareness and reach beyond the traditional enthusiast buyer that has dominated our business. So from that end, I see more opportunity with the OEMs, it's not going to come to dominate the business, but it certainly has the ability to grow on a percent of total revenue basis, and it's really complementary to everything else we're doing. And I think to understand about to any product that's installed even if it's installed, centralized in an OEM environment, you still have to be -- you still have to have the ability to service and repair it in the real world.

當然。我想，傑夫，我們這次試圖為我們如何看待頻道和我們的言論提供更多的色彩，只是因為我們確實認為所有這些部分都是互補的。在單一單元的基礎上，您可以將一個單元從一個通道蠶食到另一個通道。但是，我們認為這是提高知名度並超越主導我們業務的傳統狂熱買家的一種方式。因此，從這一點來看，我看到原始設備製造商有更多的機會，它不會主導業務，但它肯定有能力在總收入的基礎上增長一定比例，而且它確實與我們正在做的其他事情相輔相成。我認為要了解任何已安裝的產品，即使它是集中在 OEM 環境中安裝的，您仍然必須具備在現實世界中對其進行服務和維修的能力。

And so that's another area where you have the OEM business intersect the need for the aftermarket channel. So it's something we're going to continue to pursue in view of trying to create more awareness and expand the buyer for paint protection film, and it likely will grow on a percent of revenue basis. But it's not going to go to dominate our revenue. It's just going to be one piece of the overall pie.

這是 OEM 業務與售後通路需求交叉的另一個領域。因此，我們將繼續追求這一目標，試圖提高人們對漆面保護膜的認識並擴大其買家，並且它可能會以收入的百分比成長。但它不會主宰我們的收入。它只是整個蛋糕中的一小部分。

Okay. And then maybe if you could give us any more color around what you're seeing in China and perhaps speak to I guess, how you're evolving the China business, a little more understanding and color around that? And then I think you also mentioned India so maybe a quick thought on approach to India.

好的。然後，也許您可以給我們更多關於您在中國所看到的情況的信息，也許可以談談您如何發展中國業務，對此有更多的了解和更多的信息嗎？然後我想你也提到了印度，所以也許你可以快速思考一下對待印度的方式。

Yes. Jeff, I think if you look at all the lessons we've learned in our business over the years is that we know that we do exceptionally well when we get as close to the customer as possible. And that's led us to participate in the channel in a variety of ways, but including acquiring distributors in various countries and setting up in country. And for us, China was really always the exception to say that's the caveat to that strategy.

是的。傑夫，我想，如果你看看我們多年來在業務中學到的所有教訓，我們就會知道，當我們盡可能貼近客戶時，我們會做得非常好。這促使我們以多種方式參與該管道，包括收購各國的經銷商並在當地設立辦事處。對我們來說，中國確實總是例外，說這是對戰略的警告。

And I think where we are now is saying, well, we need to have a much more open mind in terms of the best go-to-market for China to support the distribution there and really set it up on an even stronger platform for growth. And so the first thing we're doing is getting our team assembled. We've been working very closely with our mass distributor in China and really put together a plan that says, how do we make this whole thing better.

我認為我們現在的意思是，我們需要以更開放的心態對待中國的最佳市場進入方式，以支持在那裡的分銷，並真正將其建立在更強大的成長平台上。因此，我們要做的第一件事就是組建我們的團隊。我們一直在與我們在中國的大型經銷商密切合作，並真正制定了一個計劃，說明我們如何使整件事變得更好。

And I mentioned in the prepared remarks about the lumpiness of sell-through and sell-in. Well, maybe we can do things around the inventory planning and inventory in country to make that easier for everybody as one example. The other side is we just -- we've got to get much closer to the business, the kind of COVID 2.5 years, you had much of the world not present in China from the outside and the market there continues to do its thing. And so we've got to be increasingly present and increasingly close to it. So I think we're very active on that.

我在準備好的評論中提到了銷售和銷售的不穩定性。好吧，也許我們可以圍繞國家/地區的庫存規劃和庫存做一些事情，以讓每個人都更容易做到這一點。另一方面是我們——我們必須更加貼近業務，就像新冠疫情 2.5 年那樣，世界上很多地方都沒有從外部出現在中國，而那裡的市場仍在繼續發揮作用。因此，我們必須越來越多地出現並越來越接近它。所以我認為我們在這方面非常積極。

I would expect to see what we're doing there evolve next year for the better based on all the feedback we get and whatever modifications to the go-to market. And I guess similarly to India, India is a market that we have very little revenue from today, but we see the great prospects for development as the country development -- country continues to develop, and per capita incomes grow and the number of people at higher incomes continues to grow.

我希望根據我們收到的所有反饋以及對市場的任何修改，明年我們在那裡所做的事情會變得更好。我想與印度類似，印度是我們今天收入很少的市場，但隨著國家的發展，我們看到了巨大的發展前景——國家不斷發展，人均收入增長，人口數量增加。較高的收入繼續增長。

And I think one of our lessons candidly from China applied into India is that we need to be on the ground and we need to be present not to say we have to -- there's no room for local distribution, and there's no room for a bifurcated go-to-market strategy. All those things are on the table. But we need to be there and be present at the very beginning.

我認為，我們從中國學到的坦率教訓之一適用於印度，那就是我們需要腳踏實地，我們需要在場，而不是說我們必須這樣做——沒有本地分發的空間，也沒有分裂的空間。進入市場策略。所有這些事情都擺在桌面上。但我們需要從一開始就到場。

And so that's what you're seeing us do with India. We're relocating a leader from Texas to India to lead that. And I think you see that with the lessons we've had from distribution around the world and then also, in particular, lessons learned in China, where you had a market that was rapidly developing. So I think you can kind of look at those in a similar way.

這就是我們對印度所做的事情。我們正在將一位領導者從德克薩斯州調到印度來領導這項工作。我認為，透過我們從世界各地的分銷中學到的經驗教訓，特別是在中國學到的經驗教訓，你會看到這一點，那裡的市場正在迅速發展。所以我認為你可以用類似的方式來看待這些。

Okay. That's helpful. And then just one more quick one. Are there any more extraordinary items that you anticipate over the next couple of quarters that might impact the P&L?

好的。這很有幫助。然後再快一點。您預計未來幾季是否還有其他可能影響損益的特殊項目？

Well, I would say that we anticipate no. But everything that we're doing is with the long-term view of the company in mind. So to the extent our acquisition cadence continues or increases or accelerated, you're going to see things like legal expenses if the product development and the research and development activities we have could be further accelerated by outside resources like what you saw in the second half of this year, we're going to make those decisions even if we feel it quarter-to-quarter. But all that said, there's nothing on the horizon to identify at this point, but we're always going to side on the long-term view of the company versus the short term in making those decisions.

好吧，我想說我們預計不會。但我們所做的一切都是為了公司的長遠利益。因此，只要我們的收購節奏繼續、增加或加速，如果我們的產品開發和研發活動可以透過外部資源進一步加速，就像您在下半年看到的那樣，您將會看到法律費用等費用今年，我們將做出這些決定，即使我們每季都會做出這樣的決定。儘管如此，目前還沒有什麼可以確定的，但在做出這些決定時，我們總是會站在公司的長期觀點而不是短期觀點上。

That concludes the Q&A portion of the call. I will now hand the conference back to management for closing remarks. Please go ahead.

電話問答部分到此結束。現在我將把會議交還給管理階層進行閉幕致詞。請繼續。

I'd like to thank everyone for participating today. And really thank our entire team, we've had an amazing quarter. We've seen huge development in our team and the people really going deep to further the initiatives we have, including folks taking on a lot more responsibility. And then those that we've got relocating to other parts of the world to help drive the XPEL vision elsewhere. So couldn't do without them. Thank you very much, and look forward to speaking to everyone soon.

我要感謝大家今天的參與。真的要感謝我們的整個團隊，我們度過了一個精彩的季度。我們看到我們的團隊取得了巨大的發展，人們真正深入推進我們的舉措，包括人們承擔了更多的責任。然後我們將這些人員遷移到世界其他地方，以幫助推動其他地方的 XPEL 願景。所以離不開他們。非常感謝您，並期待很快與大家交談。