Xpel Inc (XPEL) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to XPEL, Inc., second-quarter 2024 earnings call. (Operator Instructions) Please note, this conference is being recorded.

大家早安，歡迎參加 XPEL, Inc. 2024 年第二季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, John Nesbett, IMS Investor Relations. You may begin.

我現在將會議轉交給主持人、IMS 投資者關係部門的 John Nesbett。你可以開始了。

Good morning, and welcome to our conference call to discuss XPEL's financial results for the second quarter of 2024. 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 will take questions from our call participants.

早安，歡迎參加我們的電話會議，討論 XPEL 2024 年第二季的財務表現。XPEL 總裁兼執行長 Ryan Pape 出席了今天的電話會議； 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。在準備好意見後，我們將立即回答電話會議參與者的問題。

I'll take a moment to read the safe harbor statement. During the course of this call, we will make certain forward-looking statements regarding XPEL, Inc. and its business, which may include, but not be limited to, anticipated use of proceeds from capital transactions, expansion into new markets and execution of the company's growth strategy.

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、新市場擴張以及執行公司的成長策略。

Such statements are based on our current expectations and assumptions, which are subject to known and unknown risk factors and uncertainties that could cause actual results to be 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 Item 1A Risk Factors filed with the Securities and Exchange Commission. XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

此類陳述基於我們目前的預期和假設，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 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。

Okay. With that, I will now turn the call over to Ryan. Please go ahead, Ryan.

好的。現在，我將把電話轉給瑞安。請繼續，瑞安。

Thank you, John, and good morning from me as well. Welcome to the second-quarter 2024 call. Q2 was a record revenue quarter for us, revenue growing 7.5% to $109.9 million. Our US business grew just under 10% to $64.9 million. While this was a significant improvement from the 1.9% year-over-year growth in the first quarter for the US.

謝謝你，約翰，我也早安。歡迎致電 2024 年第二季。第二季度是我們創紀錄的營收季度，營收成長 7.5% 至 1.099 億美元。我們的美國業務成長了近 10%，達到 6,490 萬美元。與美國第一季 1.9% 的同比增長相比，這是一個顯著的進步。

Overall, the aftermarket remains off its trend from the prior year, as we discussed in the first quarter. However, while the sentiment was universally negative in the first quarter, the second quarter has been a bit more positive. We saw April up more significantly given some of the headwinds in the first quarter, and the feedback from our customers has definitely been more mixed versus all negative to start the year. So I think that's good. Our dealership business continued to perform well, growing a little over 30% for the quarter. A little apparent impact from the well-discussed CDK software issue as far as we can tell, but probably some impact.

總體而言，正如我們在第一季討論的那樣，售後市場與去年同期的趨勢仍然不同。然而，雖然第一季的情緒普遍消極，但第二季的情緒則較為正面。考慮到第一季的一些不利因素，我們認為 4 月的成長更為顯著，而且與年初的所有負面回饋相比，我們客戶的回饋肯定更加複雜。所以我認為這很好。我們的經銷業務持續表現良好，本季成長略高於 30%。據我們所知，經過充分討論的 CDK 軟體問題有一點明顯的影響，但可能會產生一些影響。

Obviously, there's lots of talk on the macro consumer sentiment, et cetera, which we're not going to speculate on. But the first half of last year was stronger than the second half of last year. So going forward, we will lap the slower part of last year. Our China business posted revenue of $4.4 million, which was a 45.7% decline compared to the same period in the prior year. The sell-in versus sell-through dynamic continues to hide a lot of the work we're doing there. We launched in the quarter an additional product line that drove our in-country versus sell-in, PPF sales unit volume by our distributor up substantially on a unit terms basis over the prior year, given the positioning of the product to the mid-tier in China, where we've historically not participated. This is a good dynamic for the market.

顯然，關於宏觀消費者信心等問題有很多討論，我們不會對此進行猜測。但去年上半年比去年下半年強。因此，展望未來，我們將超越去年較慢的部分。我們的中國業務營收為 440 萬美元，較上年同期下降 45.7%。銷售與售出的動態繼續隱藏著我們在那裡所做的許多工作。我們在本季度推出了一條額外的產品線，考慮到該產品的定位為中端產品，我們的分銷商在國內的 PPF 銷售量（按單位​​計算）比上一年大幅增加在中國，我們歷史上從未參與過。這對市場來說是一個很好的動態。

Much like our business, we're working with our distributor to streamline and reduce inventory in country, especially as we modify our product line and go to market. So we'll continue to experience this choppiness this year, but we will ultimately reach a more stable revenue pattern through either our management of inventory in country for the benefit of our distributor or the acquisition of the distributor as we've done in other markets.

就像我們的業務一樣，我們正在與經銷商合作，以簡化和減少國內庫存，特別是當我們修改產品線並進入市場時。因此，今年我們將繼續經歷這種波動，但我們最終將透過為了經銷商的利益而管理國內庫存或像我們在其他市場所做的那樣收購經銷商，最終實現更穩定的收入模式。

Overall, though, our additional product tier serves to increase our China TAM substantially over time. And this is a pattern for other low labor cost markets that we intend to pursue in Southeast Asia, India and elsewhere. Our rest of the world revenue, excluding US and China grew 16.1% in the quarter. Continental Europe grew 17.2%, which is a little bit lower than we've seen in previous quarters. We see that market a little bit weaker than the previous trend like we saw in the US earlier. But the growth dynamics there are different market is still in its infancy, so it will perform differently than what we see in the US for sure. All-in-all, we still feel good about our revenue growth guidance of 8% to 10% for the year. Although as we remind everyone, we're still looking backwards to look forward.

但總體而言，隨著時間的推移，我們的附加產品層將大大提高我們在中國的 TAM。這也是我們打算在東南亞、印度和其他地方追求的其他低勞動成本市場的模式。除美國和中國外，我們世界其他地區的營收本季成長了 16.1%。歐洲大陸成長 17.2%，略低於前幾季的數據。我們看到該市場比之前的趨勢稍弱一些，就像我們之前在美國看到的那樣。但不同市場的成長動力仍處於起步階段，因此它的表現肯定會與我們在美國看到的不同。總而言之，我們對今年 8% 至 10% 的營收成長指導仍然感到滿意。儘管我們提醒大家，我們仍然在回顧過去，並展望未來。

Obviously, the current macro uncertainty doesn't aid the accuracy of that process. But June and July were record revenue months for us. August tends to be a little bit lower due to time off and plant shutdowns in Europe. For Q3, we expect US to trend slightly higher than Q2, and we expect higher Q3 revenue in China than the entire first half of the year.

顯然，當前的宏觀不確定性無助於該過程的準確性。但六月和七月對我們來說是創紀錄的收入月份。由於歐洲的休假和工廠關閉，八月的產量往往會略低一些。對於第三季度，我們預計美國的收入將略高於第二季度，我們預計中國第三季度的收入將高於整個上半年。

So assuming that plays out as expected and based on what we know and could obviously change, but that would put us at $112 million to $114 million in revenue for the third quarter. On the product side, we're really excited about the launch of our windshield protection films. That's going to be late Q3, early Q4 product has been the most asked for product from consumers over time, and we're finally ready to meet this demand.

因此，假設情況按預期進行，並且根據我們所知，並且可能會明顯發生變化，但這將使我們第三季的收入達到 1.12 億至 1.14 億美元。在產品方面，我們對擋風玻璃保護膜的推出感到非常興奮。隨著時間的推移，第三季末、第四季初期的產品將成為消費者最需要的產品，我們終於準備好滿足這項需求。

And it's a win in two ways; one, more content per vehicle, which benefits us and our installer base, but also, it gives us an opportunity to attract a whole new set of customers who are interested in something else, which is the windshield damage protection. And that's ultimately a referral source for the other products. So really excited about that product launch. The customers we have who have been using it and starting with it are very, very pleased with it. So we have high expectations for that.

這在兩方面都是勝利；第一，每輛車有更多的內容，這對我們和我們的安裝者群體都有好處，而且，它也讓我們有機會吸引一群對其他東西感興趣的全新客戶，即擋風玻璃損壞保護。這最終是其他產品的推薦來源。對該產品的發布感到非常興奮。我們的客戶一直在使用它並開始使用它，對此非常非常滿意。所以我們對此抱持著很高的期望。

Also, we've launched a new OEM and partner referral program utilizing our independent installer network. And under this program, a partner will refer their customers to an e-commerce site that we run that allows the end consumer to purchase installation of products on their card directly from us, from XPEL. We collect payment we're out the job to the nearest participating installer, pay the installer promptly. And depending on the setup, we may compensate to refer through a rebate or other structure. And this can be scaled up or scaled down in terms of participating installers, geographies and products quite easily.

此外，我們也利用我們獨立的安裝網路推出了新的 OEM 和合作夥伴推薦計畫。根據該計劃，合作夥伴將引導他們的客戶訪問我們經營的電子商務網站，該網站允許最終消費者直接從我們的 XPEL 購買卡上產品的安裝。我們將付款交給最近的參與安裝人員，請立即向安裝人員付款。根據設置，我們可能會透過回扣或其他結構來補償推薦。而且可以很容易地根據參與的安裝人員、地理位置和產品來擴大或縮小規模。

We've launched our first pilot program using this system with a new OEM to us, and we have interest behind it from several others. The program has utility beyond the OEMs with other industry partners that are in a position to refer automotive buyers to us. And our team has done an amazing job launching the program. We look forward to building on it, evolving and talking more about it in the future. But this is another way to increase the pool of people we can reach who wouldn't normally participate in the aftermarket. So it's something we think can be quite valuable for the network over time. Another bright spot for the quarter was our gross margin performance, 43.5%.

我們已經與一家新的 OEM 一起啟動了使用該系統的第一個試點計劃，並且其他幾家公司也對此感興趣。該計劃的用途不僅限於原始設備製造商，還有其他能夠將汽車買家推薦給我們的行業合作夥伴。我們的團隊在啟動該計劃方面做得非常出色。我們期待在未來的基礎上繼續發展、發展並更多地討論它。但這是增加我們可以接觸到的通常不會參與售後市場的人群的另一種方法。因此，我們認為隨著時間的推移，這對網路來說非常有價值。本季的另一個亮點是我們的毛利率表現，達到 43.5%。

Obviously, we get a little help with customer mix, but continue to be pleased with the execution on the plan to increase margins over time. We'll see some downward pressure on margin when China returns to more normal levels as we do with our other distribution markets. But our view is we should be able to offset most, if not all, of that and continue to have room to improve that over time. SG&A expenses grew 20.5% during the quarter to $28.7 million. And as I mentioned on the last call, we're focused on continuing the growth of SG&A. We're focused on optimizing and better utilizing the dollars we're already spending rather than cutting it.

顯然，我們在客戶組合方面得到了一些幫助，但我們仍然對隨著時間的推移增加利潤的計劃的執行感到滿意。當中國像其他分銷市場一樣恢復到更正常的水平時，我們將看到利潤率面臨一些下行壓力。但我們的觀點是，我們應該能夠抵消其中的大部分（如果不是全部），並隨著時間的推移繼續有改進的空間。本季 SG&A 費用成長 20.5%，達到 2,870 萬美元。正如我在上次電話會議中提到的，我們專注於繼續成長 SG&A。我們專注於優化和更好地利用我們已經支出的資金，而不是削減它。

And that remains our position today. We have plenty of SG&A line items we've invested in over the past few years, including things like product quality, manufacturing teams, our investment in HR, people and systems necessary for the growth of our service business. And we expect to see leverage on these by reducing those line items on a percent of revenue basis over time. So absent some serious macro deterioration. We will overcome the burden of those now through additional revenue growth, both organic and inorganic. We see a very clear path to do that going forward into the future. Again, not trying to undo the good work we've done via SG&A reduction.

這仍然是我們今天的立場。過去幾年，我們投資了許多SG&A項目，包括產品品質、製造團隊、對人力資源、服務業務成長所需的人員和系統的投資。我們預計，隨著時間的推移，透過收入百分比減少這些項目，可以發揮這些作用。因此，沒有出現一些嚴重的宏觀惡化。我們將透過有機和無機的額外收入成長來克服現在的負擔。我們看到了未來實現這一目標的非常清晰的道路。再次強調，我們並不是試圖毀掉我們透過削減銷售管理費用（SG&A）所做的出色工作。

Another highlight for the quarter was our cash flow performance, came in at almost $26.9 million, which is just higher than Q2 last year, which was by far our highest cash flow quarter in history. So kind of a long time coming and very important. We've made progress on inventory in terms of absolute dollar and days on hand reduction from Q1 and the start of the year. And barring any unforeseen issues that come up in the future, we should be able to continue to generate solid cash flow from quarter-to-quarter, and we will be most focused on our days on hand, inventory number going forward versus the absolute inventory dollars.

本季度的另一個亮點是我們的現金流表現，接近 2,690 萬美元，僅高於去年第二季度，這是迄今為止我們歷史上現金流最高的季度。這麼長時間了，而且非常重要。與第一季和年初相比，我們在庫存絕對值和庫存天數減少方面取得了進展。除非未來出現任何不可預見的問題，我們應該能夠繼續每個季度產生穩定的現金流，並且我們將最關注我們的現有天數、未來庫存數量與絕對庫存美元。

And over the balance of this year, our ongoing work in China will aid our inventory turns and cash flow conversion over time as well as that sell-in sell-through dynamic is not only challenging from a revenue pattern, but it's very inefficient from an inventory and supply chain standpoint as well. On acquisition front, we did close two acquisitions recently in June. We closed on the purchase of Protective Film Solutions, or PFS, based in Orange County, California. PFS, amazing brand. It has been an amazing brand ambassador for XPEL.

今年餘下的時間裡，我們在中國正在進行的工作將隨著時間的推移幫助我們的庫存週轉和現金流轉換，而且銷售動態不僅對收入模式構成挑戰，而且從銷售模式來看效率非常低。和供應鏈的角度也是如此。在收購方面，我們最近在六月完成了兩項收購。我們完成了對位於加州橘郡的保護膜解決方案（PFS）的收購。PFS，一個了不起的品牌。它是 XPEL 出色的品牌大使。

But separate and above from how they're traditionally known in the automotive space, PFS has developed a substantial marine model for protection and application of a variety of products into the marine channel. And we intend to make that available in a structured way to our installer base over the next year for our installers that see that as a viable part of your business. We see marine is another adjacent market and complementary market worth developing, and this is the first part of the investment to help kickstart that.

但與汽車領域的傳統認知不同，PFS 開發了一個重要的海洋模型，用於保護和應用各種產品進入海洋通道。我們打算在明年以結構化的方式向我們的安裝人員群組提供該功能，以便我們的安裝人員將其視為您業務的可行部分。我們認為海洋是另一個值得開發的鄰近市場和互補市場，這是幫助啟動該市場的投資的第一部分。

Ryan Tounsley is the principal of that business, has joined us as our Director of Marine to spearhead the initiative. And as you know, it's all about the team in terms of what we can accomplish. So we're glad to grow in that direction. Just this week, we closed on a small acquisition of our distributor in India. At the end of last year, we established our own operations in India, as we previously talked about, and our distributors' business will merge in with this operation.

Ryan Tounsley 是這項業務的負責人，他作為我們的海事總監加入我們，帶頭推動這項舉措。如您所知，團隊的成就取決於我們的能力。所以我們很高興朝這個方向發展。就在本週，我們完成了印度經銷商的小型收購。去年年底，我們在印度建立了自己的業務，正如我們之前談到的，我們經銷商的業務將與該業務合併。

And as we discussed in the past, we want to be direct presence in the top car markets of the world, and this acquisition helps us further check that box. We expect to complete another four or five distributor acquisitions in key markets in Asia and Latin America over the next year. As we complete these, we will have a direct presence in the majority of the top 20 car markets in the world. So certainly, we're adding incremental SG&A and operational complexity to do so, but our direct presence in these markets continues to give us a multitude of advantages in our go-to-market.

正如我們過去討論的那樣，我們希望直接進入世界頂級汽車市場，這次收購幫助我們進一步實現這一目標。我們預計明年將在亞洲和拉丁美洲的主要市場完成另外四到五個經銷商收購。當我們完成這些工作後，我們將直接進入全球前 20 個汽車市場的大部分市場。因此，當然，我們正在增加增量SG＆A和營運複雜性來做到這一點，但我們在這些市場的直接存在繼續為我們進入市場提供了眾多優勢。

Obviously, when we're selling directly to our customers, we can more easily tailor the product offering, supply chain elements to be the most efficient and offering -- our offering to our OEMs, inclusive of global warranty service is only benefited by our international presence. And separately, we're actively looking to expand by decentralizing some of our European-based OEM operations into other countries through our international subsidiaries, either in dedicated facilities or ports.

顯然，當我們直接向客戶銷售時，我們可以更輕鬆地定制最高效的產品供應、供應鏈要素——我們向 OEM 提供的產品（包括全球保固服務）僅受益於我們的國際服務。另外，我們也積極尋求透過我們的國際子公司（無論是在專用設施還是在港口）將一些位於歐洲的 OEM 業務分散到其他國家來進行擴張。

And this wouldn't be possible without our presence. So this decentralization may let us be more competitive, that could improve quality and ultimately can increase capacity where real estate is an issue by getting closer to the customer. So a good quarter for us. And again, I want to thank our team for all their hard work. I know it will be possible without them.

如果沒有我們的存在，這一切都是不可能的。因此，這種權力下放可能會讓我們更具競爭力，從而提高質量，並最終透過更貼近客戶來提高房地產成為問題的能力。所以對我們來說這是一個很好的季度。再次，我要感謝我們團隊的辛勤工作。我知道沒有他們，這也是可能的。

And with that, I'll turn it over to Barry. Barry?

有了這個，我會把它交給巴里。巴里？

Thanks, Ryan, and good morning, everyone. As Ryan mentioned, our total revenue grew 7.5%, but I think the China noise kind of masked the solid performance in the US. Ryan referred to the fact that our US business posted a rather anemic 1.9% growth in Q1. So it was really nice to see the U.S. return to near double-digit growth in Q2, and this was on a tough comp as Q2 was the US highest revenue quarter last year. So we are certainly encouraged by that.

謝謝瑞安，大家早安。正如 Ryan 所提到的，我們的總收入成長了 7.5%，但我認為中國的噪音掩蓋了美國的穩健表現。Ryan 提到，我們的美國業務在第一季僅成長了 1.9%，相當疲軟。因此，很高興看到美國第二季恢復接近兩位數的成長，而且這是一個艱難的競爭，因為第二季是美國去年收入最高的季度。因此，我們當然對此感到鼓舞。

Looking a little bit more detail on the product lines. Combined product and cutbank revenue increased 2.8%, where solid US performance, again, was mostly offset with the impacts from China. Excluding China, combined product and cutbank revenue increased 7.8% in the quarter, and sequentially, combined product and cutbank revenue grew 24.1%. Our window film product line revenue grew 8.4% quarter-over-quarter $22 million, which represented 20% of our total revenue. Excluding China, total window film revenue grew 18.6%, and sequentially, total window film revenue grew 51.3%.

查看產品線的更多細節。綜合產品和削減收入成長了 2.8%，其中美國的強勁表現再次被中國的影響所抵消。不包括中國在內，本季的綜合產品和 cutbank 收入增長了 7.8%，而環比而言，綜合產品和 cutbank 收入增長了 24.1%。我們的窗膜產品線營收季增 8.4%，為 2,200 萬美元，占我們總收入的 20%。不包括中國，窗膜總營收成長 18.6%，季增 51.3%。

Our Q2 vision product line revenue, which is included in our total window film revenue grew 29.6% to $3.1 million and represented 14.1% of our total window film revenue and 2.8% of our total revenue. Our OEM revenue grew 23.6% in the quarter and represented 4.1% of total revenue. And our total installation revenue, which combines product and service grew 33.9% in the quarter and represented approximately 21% of total revenue, and this was really buoyed by strong performance in our OEM and dealership services businesses.

我們第二季的視覺產品線收入（計入我們的窗膜總收入）成長了 29.6%，達到 310 萬美元，占我們窗膜總收入的 14.1% 和總收入的 2.8%。本季我們的 OEM 營收成長了 23.6%，佔總營收的 4.1%。我們的總安裝收入（包括產品和服務）在本季成長了 33.9%，約佔總收入的 21%，這確實得益於我們 OEM 和經銷商服務業務的強勁表現。

Interestingly, our corporate-owned stores after normalizing for acquisitions, grew 8%, right around 8%, which was relatively consistent with the overall performance of the aftermarket. And as we've mentioned before, our corporate stores sort of act as a good important check for us on particularly in the aftermarket. Our Q2 SG&A expense grew 20.5% to $28.7 million and represented 26.1% of revenue. However, we did hold our 2023 annual dealer conference in Q2 of last year. So if you normalize for that, our SG&A would have grown approximately 28.6%.

有趣的是，我們的企業直營店收購常態化後，成長了8%，就在8%左右，與後市場的整體表現比較一致。正如我們之前提到的，我們的公司商店對我們來說是一個很好的重要檢查，特別是在售後市場。我們第二季的 SG&A 費用成長了 20.5%，達到 2,870 萬美元，佔營收的 26.1%。不過，我們確實在去年第二季舉辦了2023年度經銷商大會。因此，如果您對此進行正常化，我們的 SG&A 將成長約 28.6%。

And as a reminder, these dealer conference costs primarily impact our sales and marketing expense line in our income statement. Sequentially, our SG&A expense was essentially flat from Q1. But if you normalize for the costs related to our 2024 dealer conference that we held this year in Q1, our sequential SG&A growth would have been right around 6%.

提醒一下，這些經銷商會議費用主要影響我們損益表中的銷售和行銷費用項目。因此，我們的銷售、管理及行政費用與第一季基本持平。但如果將今年第一季舉行的 2024 年經銷商會議相關成本標準化，我們的 SG&A 連續成長將在 6% 左右。

And as Ryan alluded to, our expectation is that the fixed cost components of our SG&A should stay relatively flat for the remainder of the year as we are closely monitoring our SG&A spend relative to the overall revenue performance. Our Q2 EBITDA declined 2.7% to $21.8 million, reflecting an EBITDA margin of 19.9%. Sequentially, EBITDA was up approximately 64% after normalizing for the dealer conference in Q1, and our incremental EBITDA margin in the quarter was a little over 51%.

正如 Ryan 所提到的，我們的預期是，我們的 SG&A 固定成本部分在今年剩餘時間內應該保持相對平穩，因為我們正在密切監控我們的 SG&A 支出相對於整體收入表現的情況。我們第二季的 EBITDA 下降 2.7% 至 2,180 萬美元，反映出 EBITDA 利潤率為 19.9%。隨後，在第一季經銷商會議正常化後，EBITDA 成長了約 64%，本季我們的增量 EBITDA 利潤率略高於 51%。

Our Q2 net income declined 4.5% to $15 million which reflects a net income margin of 13.7% and our EPS for the quarter was $0.54 per share. And Ryan mentioned our strong cash flow performance in the quarter, resulting mainly from our work around reducing our inventory days on hand, and we saw a significant improvement in our cash conversion cycle as a result. We did use some of our excess cash to pay down our revolver and ended the quarter in a net debt position. And obviously, our future deal cadence will influence our future debt position, but we're financially well positioned either way that goes. So all-in-all, a good quarter for us, and we're optimistic the momentum will continue.

我們第二季的淨利潤下降 4.5% 至 1500 萬美元，淨利潤率為 13.7%，本季每股收益為 0.54 美元。瑞安提到我們本季強勁的現金流表現，主要是由於我們減少了現有庫存天數，因此我們看到了現金轉換週期的顯著改善。我們確實使用了一些多餘的現金來償還我們的左輪手槍，並在本季結束時處於淨債務狀態。顯然，我們未來的交易節奏將影響我們未來的債務狀況，但無論怎樣，我們在財務上都處於有利地位。總而言之，這對我們來說是一個不錯的季度，我們對這種勢頭將繼續保持樂觀。

And with that, operator, we'll open the call up for questions.

接線員，我們將開始提問。

(Operator Instructions) Steven Dyer, Craig-Hallum.

（操作員說明）Steven Dyer，Craig-Hallum。

I just want to dig in a little bit on your OEM business. First, as it relates to Rivian, I noticed they had a special running throughout the quarter at various times in the quarter where you get free XPEL wrap, if you met sort of certain qualifications, about the certain vehicle, et cetera. Kind of curious if what color you could give us around that, maybe the success you're seeing, the thought process around that, and then maybe is that something you'll see you do again?

我只是想深入了解你們的 OEM 業務。首先，就 Rivian 而言，我注意到他們在整個季度的不同時間都有一個特殊的運行，如果您滿足某種特定車輛的某些資格，您可以獲得免費的 XPEL 包裝。有點好奇你能為我們提供什麼顏色，也許你看到的成功，圍繞它的思考過程，然後也許你會看到你再次做的事情？

Yes. We have been running a promotion with them for a full Stealth or matte wrap. And this is really an incentive that they're offering in conjunction with us. And my understanding is it's been quite well received and helpful to them and well received by the market. So I think we're willing to partner with everybody we work with to do things like that. There continues to be interest in the Matt film just from really a personalization standpoint. And from my understanding, it's been a good program for both sides.

是的。我們一直在與他們一起促銷，推出全隱形或霧麵包裝。這確實是他們與我們共同提供的激勵措施。我的理解是，它很受歡迎，對他們很有幫助，也受到市場的好評。所以我認為我們願意與我們合作的每個人合作來做這樣的事情。僅從個人化的角度來看，人們仍然對馬特的電影感興趣。據我了解，這對雙方來說都是一個很好的計劃。

And then the OEM referral program, I mean, is your thought on that, that that's going to be sort of ultraluxury smaller volume guys? Or is the idea there that you're going to be with the big OEMs as well? Kind of still would love any color as to what you're seeing around OEMs desire or appetite to vertically integrate this versus continue to run it through the dealer channel like they have.

然後是 OEM 推薦計劃，我的意思是，您對此有何想法，這將是一種超豪華的小批量產品？或者您也打算與大型原始設備製造商合作？有點仍然會喜歡任何顏色，就像你在 OEM 周圍看到的那樣，希望或有興趣垂直整合這一點，而不是像他們一樣繼續透過經銷商管道運行它。

Well, I think that we see it, Steve, kind of all of the above. If you look at every element in the channel, be it the aftermarket, the dealerships and the OEMs, they all have relative strengths and weaknesses, right? So the OEMs obviously have a reach to everyone, and that's valuable. But you may be limited in your ability or capacity to install the product either in one location or you may not be able to do it through a dealership channel or you may have a service center model like EV guys do.

好吧，我想我們已經看到了，史蒂夫，以上所有的情況。如果你看看通路中的每個元素，無論是售後市場、經銷商或原始設備製造商，它們都有相對的優勢和劣勢，對嗎？因此，原始設備製造商顯然可以接觸到每個人，這是有價值的。但是，您在一個地點安裝產品的能力可能會受到限制，或者您可能無法透過經銷商通路進行安裝，或者您可能擁有像電動車公司那樣的服務中心模式。

And so this is really another option to sell the product and reach more people. And it's a way to use our amazing customer base that want to participate in wholesale work, which is effectively what that is, like they might do for a dealership. But through another means of reaching those customers. So I don't look at anything we're doing, including that program as this is the way or this is the one way. I think it's another tool in the tool belt to grow awareness and to grow the TAM.

因此，這實際上是銷售產品並接觸更多人的另一種選擇。這是利用我們想要參與批發工作的驚人客戶群的一種方式，這實際上就是這樣，就像他們可能為經銷商做的那樣。但透過另一種方式來接觸這些客戶。因此，我不會關注我們正在做的任何事情，包括該計劃，因為這就是方式或這是唯一的方式。我認為這是工具帶中提高意識和發展 TAM 的另一個工具。

And I think you look at the opportunity in front of us, and there are people that we can naturally bring through the aftermarket. There's the enthusiast buyer that's already in the aftermarket that knows to do that. A program like this is a way to kind of bridge the gap for a consumer that really doesn't know about the products and doesn't know about the aftermarket. So a way to sort of connect them in an indirect means to the aftermarket that's very efficient. It's going to be obviously far less expensive to do than trying to reach them through advertising, and it's coming through a credible source.

我認為你看看我們面前的機會，我們可以自然地透過售後市場引進一些人。已經進入售後市場的熱心買家知道要這樣做。像這樣的計劃是一種為真正不了解產品和售後市場的消費者彌合差距的方法。因此，有一種以間接方式將它們連接到售後市場的方法，這是非常有效的。顯然，這比透過廣告接觸他們便宜得多，而且來源可靠。

And so I think there's applications for this for the OEMs like we're piloting now, potentially even through dealerships to pull people sort of back through and get a second bite at the apple for a new car buyer, even though we haven't done that yet. And then for others who have the ability to reach a qualified potential customer of ours to leverage their reach to generate more business for everyone. So it's really additive to what we're doing. It's not saying there's a shift fundamentally in the strategy either way.

因此，我認為原始設備製造商有這樣的應用程序，就像我們現在正在試點的那樣，甚至有可能透過經銷商來拉動人們，讓新車購買者獲得第二口蘋果，儘管我們還沒有這樣做那還沒有。然後對於其他有能力接觸到我們合格的潛在客戶的人來說，他們可以利用他們的影響力為每個人創造更多業務。所以它確實是我們正在做的事情的補充。這並不是說戰略發生了根本性的轉變。

A couple of product questions. One, you touched a little bit on Stealth, and I love my still Matt wrap. I think it's awesome. Are you guys seeing sort of outsized traction with that particular product across more than just Rivian? I guess that's the first question. And then the second question as it relates to the window, is that just window PPF basically? And then my understanding is most windshields already have sort of the darkest tint they can have. So I mean is that primarily just for rock chips and so forth?

幾個產品問題。第一，你對隱形有一點接觸，我喜歡我的馬特包裹。我認為這太棒了。你們是否看到該特定產品不僅在 Rivian 上有巨大的吸引力？我想這是第一個問題。然後第二個問題與視窗相關，基本上就是窗口 PPF 嗎？然後我的理解是大多數擋風玻璃已經具有它們可以擁有的最暗的色調。所以我的意思是，這主要是針對岩石碎片等嗎？

Sure. So yes, to your first question, I mean, we see continued interest, and I would say, growing interest nominally, but it's continued for some time in the Matt film, the Stealth film overall and potentially even permutations of that. It's sort of analogous in a way to those that might want to change the color of their car with colored films, which we're pursuing as well. But I think it appeals differently. So we continue to see interest in that. And it's not the Rivian program we're working with them is just one example of that. It's certainly not a Rivian specific phenomenon. We see that across the board.

當然。所以，是的，對於你的第一個問題，我的意思是，我們看到了持續的興趣，我想說的是，名義上興趣在增長，但這種興趣在《馬特》電影、《隱形》電影整體甚至可能的排列持續了一段時間。這在某種程度上類似於那些可能想用彩色薄膜改變汽車顏色的人，我們也在追求這一點。但我認為它的吸引力不同。所以我們繼續看到人們對此感興趣。我們正在與他們合作的 Rivian 專案只是其中之一。這當然不是裡維安特有的現象。我們全面看到這一點。

In terms of the windshield film, yes, what we're launching is really designed around protecting the windshield from damage and cracking and chips and things like that. There is the ability already to have a windshield film on the interior of the car for the same reasons you would buy window film for heat rejection and UV rejection and things like that, we're doing so as legal.

就擋風玻璃貼膜而言，是的，我們推出的產品實際上是為了保護擋風玻璃免受損壞、破裂、碎裂等類似情況而設計的。出於同樣的原因，您可以在汽車內部貼上擋風玻璃貼膜，原因與您購買窗貼膜用於隔熱和防紫外線等類似用途一樣，我們這樣做是合法的。

So this is really to serve a completely different purpose, and many people have experience now that the windshields have become more and more expensive over time, dramatically so as they have more integrated components. And so the ROI on windshield protection, at the consumer level, has really increased over time as the cost of those windshields have grown disproportionately, certainly relative to what the cost will be to protect it. So I think there's probably the best value prop for windshield film now than there's ever been. So we're excited to get it out.

因此，這實際上是為了實現完全不同的目的，現在許多人都經歷過，隨著時間的推移，擋風玻璃變得越來越昂貴，而且隨著它們具有更多集成組件，價格也急劇上漲。因此，在消費者層面，擋風玻璃保護的投資報酬率確實隨著時間的推移而增加，因為這些擋風玻璃的成本不成比例地增長，當然相對於保護它的成本而言。因此，我認為現在的擋風玻璃貼膜可能是有史以來最有價值的道具。所以我們很高興能把它拿出來。

Jeff Van Sinderen, B. Riley.

傑夫·範·辛德倫，B.萊利。

And let me add my congratulations on a strong metrics, especially after some toughness in Q1. I guess considering new product launches, the new OEM referral program, can you speak a little bit more about what's baked into your revenue guidance as far as what you see as the key underlying components there to drive growth for the remainder of the year?

讓我對強勁的指標表示祝賀，尤其是在第一季經歷了一些艱難之後。我想考慮到新產品的發布、新的 OEM 推薦計劃，您能否多談談您的收入指導中包含的內容，以及您認為推動今年剩餘時間增長的關鍵基礎組件？

Yes, Jeff, I think that our method of projecting forward is looking at our current customer performance, which obviously very dramatically customer to customer, just based in large part on their own growth desires plus the overall dynamic of the market, plus our expectation for new customers and then projecting that forward. In terms of new product, the referral program, we're not really baking in much for those because they're in their infancy and the other products yet to be launched.

是的，傑夫，我認為我們預測未來的方法是著眼於我們當前的客戶績效，這顯然是非常顯著的客戶對客戶的績效，很大程度上基於他們自己的成長願望加上市場的整體動態，加上我們對新客戶，然後向前預測。在新產品、推薦計畫方面，我們並沒有真正為這些產品做太多準備，因為它們還處於起步階段，而其他產品尚未推出。

So I think those, relatively speaking, are upside for us. But given that they're new and they're sort of time limited and how much we'll get, they're probably not have to move the needle substantially.

所以我認為相對而言，這些對我們來說是有利的。但考慮到它們是新的，而且有時間限制以及我們能得到多少，他們可能不需要大幅改變。

And then if we could circle back to China for a minute, if you don't mind. Just maybe any more color there around what you're seeing on the new product launch? And then where else might you take that new product?

如果您不介意的話，我們可以繞回中國一分鐘嗎？您在新產品發表會上看到的產品可能還有更多顏色嗎？那你還可以把這個新產品帶到哪裡去呢？

Yes. I think what our work around the world has shown us is the dynamics in markets that are low labor costs are different. And these are more of the emerging markets, China, Southeast Asia, India, perhaps spots in Latin America are a flip from the rest of the world. And the rest of the world, labor is the number one element of cost of goods at the installed product. In some of these other countries, that's not necessarily the case. And so having a bifurcated product strategy to be more competitive in the markets where labor cost is lower and the resulting installation needs to be priced accordingly to the market requires a differentiated product strategy.

是的。我認為我們在世界各地的工作向我們展示了低勞動成本市場的動態是不同的。這些更多的是新興市場，中國、東南亞、印度，也許拉丁美洲的一些地方與世界其他地區不同。在世界其他地區，勞動力是已安裝產品的商品成本的第一大要素。在其他一些國家，情況不一定如此。因此，在勞動成本較低且最終安裝需要根據市場定價的市場中，採用分岔的產品策略才能更具競爭力，這需要差異化的產品策略。

And so I think credit to our team, who we dispatched around the world now into Asia and India over the past year for really helping to formulate the strategy going forward. So I think China, in China, there is an existing business that is more along those lines where we've catered only to the most premium segment. And we recognize that there's more opportunity there for us to go much deeper in the market and this is really the first step to do so, but not the last step.

因此，我認為這要歸功於我們的團隊，他們在過去的一年裡被派往世界各地，進入亞洲和印度，為未來的策略提供了真正的幫助。因此，我認為在中國，現有的業務更像是我們只迎合最高端細分市場的業務。我們意識到，我們有更多機會深入市場，這確實是第一步，但不是最後一步。

And then I think all of our lessons from China and these other markets will be repeated and influence our decisions earlier in life. If you look at what we're doing in India, where we have a direct presence in India now much earlier in life and are looking at acquisitions in other Asian countries to a similar vein. So I think it puts us on a track for making the China business hopefully substantially larger over time. And then also good lessons there that we can adopt and adapt in other markets that are earlier in their development cycle than China is.

然後我認為我們從中國和其他市場獲得的所有教訓都將被重複並影響我們早年的決定。如果你看看我們在印度所做的事情，我們很早就在印度建立了直接業務，並且正在以類似的方式考慮在其他亞洲國家進行收購。因此，我認為這使我們走上了一條有望隨著時間的推移大幅擴大中國業務的軌道。還有一些很好的經驗教訓，我們可以在發展週期比中國更早的其他市場中採用和適應。

And then I wanted to turn to kind of a vehicle coverage question on PPF or whatever type of film. You're obviously expanding that potential with the new windshield film. And I guess I'm thinking about how the stats are looking on how much film you're getting on given vehicles? I'm not sure exactly how you look at that or quench those numbers. But is there a way to sort of look at the attach rate broadly and say, hey, we're getting more parts of the car covered, more parts of the vehicle cover? Just wondering if we're seeing trends there, particularly in the US?

然後我想轉向有關 PPF 或任何類型電影的車輛覆蓋問題。顯然，您正在透過新的擋風玻璃貼膜擴大這一潛力。我想我正在考慮統計數據如何顯示您在給定車輛上拍攝了多少膠卷？我不確定你到底如何看待這個問題或如何消除這些數字。但是有沒有一種方法可以廣泛地看待附著率並說，嘿，我們正在覆蓋更多的汽車部件，更多的車輛覆蓋部件？只是想知道我們是否看到了那裡的趨勢，特別是在美國？

Yes, Jeff, I mean, we are, so over time, the trend has been certainly more PPF film per car in the aftermarket, covering more. And then for us, as a company, the trend has been more content per car overall as we've added new product lines over time. I mean I think that stands to reason whether it's window film or ceramic coating or now windshield film.

是的，傑夫，我的意思是，我們是，所以隨著時間的推移，售後市場中每輛車的 PPF 薄膜肯定會越來越多，覆蓋範圍也越來越廣。對我們來說，作為一家公司，隨著我們隨著時間的推移增加新的產品線，每輛車的內容總體上已經成為趨勢。我的意思是，我認為無論是窗膜、陶瓷塗層還是現在的擋風玻璃膜，這是有道理的。

On the other hand, though, in the dealership space, we're also focused on getting some amount of paint protection film on more units, even if it's a smaller amount, which is actually sort of countercyclical to what you're seeing in the aftermarket because we know that if we can get smaller amounts of film on today, they have the potential to grow to be more content per vehicle in the future. So you could say if you look at the business overall, we're kind of working in opposite ways. One is about more content per vehicle and one is about more vehicles with less content. But if you have that vision over a long enough period of time, you can kind of see where they might merge in the middle eventually. So we're actively doing both I think, to your question.

但另一方面，在經銷商領域，我們也專注於在更多的單位上使用一定量的油漆保護膜，即使數量較少，這實際上與您在汽車行業中看到的情況是反週期的。所以你可以說，如果你從整體上看業務，我們的工作方式有點相反。一種是每輛車內容更多，另一種是更多車輛但內容更少。但如果你在足夠長的時間內有這樣的願景，你就能看到它們最終可能在哪裡融合。因此，我認為，針對你的問題，我們正在積極採取這兩項措施。

Well, we are appeared to have reached the end of our question-and-answer session. I will now hand it back over to the management for their closing remarks.

好吧，我們的問答環節似乎已經結束了。我現在將其交還給管理層以供其閉幕詞。

I want to thank everybody for joining us today and thank our team for a lot of hard work this quarter. Have a great day.

我要感謝今天加入我們的所有人，並感謝我們的團隊本季所做的大量辛勤工作。祝你有美好的一天。

Thank you very much, everyone. This does conclude today's conference. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

非常感謝大家。今天的會議到此結束。此時您可以斷開電話線，度過美好的一天。感謝您的參與。