XPEL (XPEL) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38858
Entity Registrant Name	XPEL, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	20-1117381
Entity Address, Address Line One	711 Broadway St., Suite 320
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78215
City Area Code	210
Local Phone Number	678-3700
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	XPEL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,618,084
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001767258
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current
Cash and cash equivalents	$ 8,330	$ 8,056
Accounts receivable, net	21,353	14,726
Inventory, net	84,594	80,575
Prepaid expenses and other current assets	6,035	3,464
Total current assets	120,312	106,821
Property and equipment, net	15,311	14,203
Right-of-use lease assets	15,624	15,309
Intangible assets, net	28,485	29,294
Other non-current assets	1,116	972
Goodwill	26,819	26,763
Total assets	207,667	193,362
Current
Current portion of notes payable	0	77
Current portion lease liabilities	4,261	3,885
Accounts payable and accrued liabilities	20,541	22,970
Income tax payable	2,828	470
Total current liabilities	27,630	27,402
Deferred tax liability, net	1,935	2,049
Other long-term liabilities	1,105	1,070
Borrowings on line of credit	28,000	26,000
Non-current portion of lease liabilities	12,240	12,119
Total liabilities	70,910	68,640
Commitments and Contingencies (Note 11)
Stockholders’ equity
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,616,064 issued and outstanding	28	28
Additional paid-in-capital	11,376	11,073
Accumulated other comprehensive loss	(1,904)	(2,203)
Retained earnings	127,257	115,824
Total stockholders’ equity	136,757	124,722
Total liabilities and stockholders’ equity	$ 207,667	$ 193,362

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	10,000,000	10,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	27,616,064	27,616,064
Common stock shares outstanding (in shares)	27,616,064	27,616,064

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Total revenue	$ 85,842	$ 71,864
Cost of Sales
Total cost of sales	49,882	44,147
Gross Margin	35,960	27,717
Operating Expenses
Sales and marketing	6,675	6,311
General and administrative	14,354	11,369
Total operating expenses	21,029	17,680
Operating Income	14,931	10,037
Interest expense	523	220
Foreign currency exchange (gain) loss	(9)	5
Income before income taxes	14,417	9,812
Income tax expense	2,984	2,009
Net income	$ 11,433	$ 7,803
Earnings per share
Basic (in dollar per share)	$ 0.41	$ 0.28
Diluted (in dollar per share)	$ 0.41	$ 0.28
Weighted Average Number of Common Shares
Basic (in shares)	27,616,000	27,613,000
Diluted (in shares)	27,626,000	27,613,000
Product revenue
Revenue
Total revenue	$ 67,308	$ 58,098
Cost of Sales
Total cost of sales	42,180	38,194
Service revenue
Revenue
Total revenue	18,534	13,766
Cost of Sales
Total cost of sales	$ 7,702	$ 5,953

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other comprehensive income
Net income	$ 11,433	$ 7,803
Foreign currency translation	299	(95)
Total comprehensive income	$ 11,732	$ 7,708

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common Stock	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021			27,613,000
Beginning balance at Dec. 31, 2021		$ 84,463	$ 28	$ 10,581	$ 74,443	$ (589)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 7,803	7,803			7,803
Foreign currency translation	(95)	(95)				(95)
Stock-based compensation	$ 70			70
Ending balance (in shares) at Mar. 31, 2022			27,613,000
Ending balance at Mar. 31, 2022		92,241	$ 28	10,651	82,246	(684)
Beginning balance (in shares) at Dec. 31, 2022	27,616,064		27,616,000
Beginning balance at Dec. 31, 2022		124,722	$ 28	11,073	115,824	(2,203)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 11,433	11,433			11,433
Foreign currency translation	$ 299					299
Stock-based compensation		303		303
Ending balance (in shares) at Mar. 31, 2023	27,616,064		27,616,000
Ending balance at Mar. 31, 2023		$ 136,757	$ 28	$ 11,376	$ 127,257	$ (1,904)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net income	$ 11,433	$ 7,803
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation of property, plant and equipment	972	756
Amortization of intangible assets	1,161	1,076
Gain on sale of property and equipment	(9)	(14)
Stock compensation	303	70
Bad debt expense	74	66
Deferred income tax	(115)	(38)
Accretion on notes payable	0	3
Changes in assets and liabilities:
Accounts receivable	(6,606)	(2,125)
Inventory, net	(3,886)	(22,584)
Prepaid expenses and other current assets	(2,512)	(78)
Income taxes receivable and payable	2,360	1,281
Other assets	0	74
Accounts payable and accrued liabilities	(2,480)	9,401
Net cash provided by (used in) operating activities	695	(4,309)
Cash flows used in investing activities
Purchase of property, plant and equipment	(2,055)	(2,271)
Proceeds from sale of property and equipment	12	42
Development of intangible assets	(321)	(364)
Net cash used in investing activities	(2,364)	(2,593)
Cash flows from financing activities
Net borrowings on revolving credit agreement	2,000	8,000
Repayments of notes payable	(77)	(108)
Net cash provided by financing activities	1,923	7,892
Net change in cash and cash equivalents	254	990
Foreign exchange impact on cash and cash equivalents	20	(38)
Increase in cash and cash equivalents during the period	274	952
Cash and cash equivalents at beginning of period	8,056	9,644
Cash and cash equivalents at end of period	8,330	10,596
Supplemental schedule of non-cash activities
Non-cash lease financing	1,237	2,389
Supplemental cash flow information
Cash paid for income taxes	748	770
Cash paid for interest	$ 517	$ 216

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTERIM FINANCIAL INFORMATION	INTERIM FINANCIAL INFORMATION The accompanying (a) condensed consolidated balance sheet as of December 31, 2022, which has been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2023 and 2022 have been prepared by XPEL, Inc. (“XPEL” or the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns and seasonal, operating and other factors. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC on February 28, 2023 (the "Annual Report"). These condensed consolidated financial statements should be read in conjunction with the Management's Discussion and Analysis of Financial Condition and Results of Operations section appearing in this Report.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Nature of Business - The Company is based in San Antonio, Texas and sells, distributes, and installs protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films and ceramic coatings. The Company was incorporated in the state of Nevada, U.S.A in October 2003. Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. The functional currency for the Company is the United States ("U.S.") Dollar. The assets and liabilities of each of its wholly-owned foreign subsidiaries are translated into U.S dollars using the exchange rate at the end of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the period. Gains and losses from translations are recognized in foreign currency translation included in accumulated other comprehensive loss in the accompanying consolidated balance sheets. Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment. Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. Accounts Receivable - Accounts receivable are shown net of allowances for expected credit losses and doubtful accounts of $0.2 million and $0.2 million as of March 31, 2023 and December 31, 2022, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. The Company had no significant accounts receivable concentration as of March 31, 2023 or December 31, 2022. Provisions and Warranties - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims and data experience warrant. Our liability for warranties as of March 31, 2023 and December 31, 2022 was $0.2 million and $0.2 million, respectively. The following tables present a summary of our accrued warranty liabilities for the three months ended March 31, 2023 and the twelve months ended December 31, 2021 (in thousands): 2023 Warranty liability, January 1 $ 234 Warranties assumed in period $ 22 Payments $ (7) Warranty liability, March 31 $ 249 2022 Warranty liability, January 1 $ 75 Warranties assumed in period $ 624 Payments $ (465) Warranty liability, December 31 $ 234 Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. We adopted this pronouncement effective January 1, 2023 without material impact to our financial statements.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenue from product and services sales is recognized when control of the goods, or benefit of the service, is furnished to the customer. This occurs at a point in time, typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return and those present are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would be one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company does require payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the condensed consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under the Accounting Standards Codification Topic 606 ("ASC 606") to omit disclosures regarding remaining performance obligations. When the Company transfers goods or provides services to a customer, payment is due, subject to normal terms, and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to due within 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets. The following table summarizes transactions within contract liabilities for the three months ended March 31, 2023 (in thousands): Balance, December 31, 2022 $ 261 Revenue recognized related to payments included in the December 31, 2022 balance (206) Payments received for which performance obligations have not been satisfied 2,791 Effect of foreign currency translation 1 Balance, March 31, 2023 $ 2,847 The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended 2023 2022 Product Revenue Paint protection film $ 49,548 $ 43,961 Window film 14,982 11,534 Other 2,778 2,603 Total $ 67,308 $ 58,098 Service Revenue Software $ 1,458 $ 1,207 Cutbank credits 4,030 2,930 Installation labor 12,399 9,256 Training and other 647 373 Total $ 18,534 $ 13,766 Total $ 85,842 $ 71,864 Because many of our international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended 2023 2022 United States $ 51,077 $ 41,587 China 6,647 8,859 Canada 8,592 7,850 Continental Europe 7,960 5,663 United Kingdom 3,091 2,428 Middle East/Africa 3,496 2,049 Asia Pacific 2,645 2,033 Latin America 2,173 1,206 Other 161 189 Total $ 85,842 $ 71,864

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following (in thousands): March 31, 2023 December 31, 2022 Furniture and fixtures $ 2,831 $ 2,667 Computer equipment 3,685 3,455 Vehicles 851 838 Equipment 4,977 4,728 Leasehold improvements 7,349 7,081 Plotters 3,266 2,980 Construction in Progress 2,624 1,745 Total property and equipment 25,583 23,494 Less: accumulated depreciation 10,272 9,291 Property and equipment, net $ 15,311 $ 14,203

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following (in thousands): March 31, 2023 December 31, 2022 Trademarks $ 742 $ 686 Software 5,084 4,822 Trade name 1,473 1,451 Contractual and customer relationships 31,891 31,871 Non-compete 440 440 Other 499 497 Total at cost 40,129 39,767 Less: Accumulated amortization 11,644 10,473 Intangible assets, net $ 28,485 $ 29,294

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the three months ended March 31, 2023 and the twelve months ended December 31, 2021 (in thousands): 2022 Balance at December 31, 2021 $ 25,655 Additions and purchase price allocation adjustments 1,826 Foreign exchange $ (718) Balance at December 31, 2022 $ 26,763 2023 Balance at December 31, 2022 $ 26,763 Foreign exchange 56 Balance at March 31, 2023 $ 26,819

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 12,873 $ 10,416 Work in process 4,638 6,756 Finished goods 67,083 63,403 $ 84,594 $ 80,575

DEBT

DEBT	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
DEBT	DEBT REVOLVING FACILITIES Throughout the three months ended March 31, 2023, the Company had a $75.0 million revolving line of credit with a financial institution. The facility was utilized to fund the Company's working capital needs and other strategic initiatives, and was secured by a security interest in substantially all of the Company's current and future assets. Borrowings under the credit agreement bore interest on at the Wall Street Journal U.S. Prime Rate less 0.75% per annum if the Company's EBITDA ratio (as defined in the Loan Agreement governing the facility) was equal to or less than 2.00 to 1.00 or the Wall Street Journal U.S. Prime rate less 0.25% if the Company's EBITDA ratio was greater than 2.00 to 1.00. The facility also included a fee of 0.25% of the unused capacity on the facility. The interest rate for this credit facility as of March 31, 2023 and December 31, 2022 was 7.25% and 6.75%, respectively. The Company paid interest charges on borrowings under this facility of $0.5 million during the three months ended March 31, 2023 and had a balance of $28.0 million and $26.0 million as of March 31, 2023 and December 31, 2022, respectively. The maturity date of this facility was July 5, 2024. On April 6, 2023, this facility was terminated and a new $125.0 million Credit Agreement was established with Wells Fargo Bank, N.A. Refer to Note 13 for details on this new Credit Agreement. The Company also has a CAD $4.5 million revolving credit facility through HSBC Bank Canada, and is maintained by XPEL Canada Corp., a wholly-owned subsidiary of XPEL. This Canadian facility is utilized to fund the Company's working capital needs in Canada. This facility bears interest at HSBC Canada Bank’s prime rate plus 0.25% per annum and is guaranteed by the parent company. As of March 31, 2023 and December 31, 2022, no balance was outstanding on this line of credit. As of March 31, 2023 and December 31, 2022, the Company was in compliance with all debt covenants.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2023
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The following table presents significant accounts payable and accrued liability balances as of the periods ending (in thousands): March 31, 2023 December 31, 2022 Trade payables $ 13,453 $ 16,689 Payroll liabilities 1,941 3,596 Contract liabilities 2,847 261 Acquisition holdback payments — 191 Other liabilities 2,300 2,233 $ 20,541 $ 22,970

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities. The Company has contingent liabilities related to future internal performance milestones. The fair value of these liabilities was determined using a Monte Carlo Simulation based on the probability and timing of certain future payments under these arrangements. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy. Liabilities measured at fair value on a recurring basis as of the dates noted below are as follows (in thousands): March 31, 2023 December 31, 2022 Level 3: Contingent Liabilities $ 1,006 $ 955 Increases in the fair value of level 3 contingent liabilities are reflected in general and administrative expenses in the Consolidated Statements of Income for the three months ended March 31, 2023.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESIn the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts where required. Management also has determined that the likelihood of any litigation and claims having a material impact on our results of operations, cash flows or financial position is remote.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes effect of granted incremental restricted stock units. The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands except per share values): Three Months Ended March 31, Numerator 2023 2022 Net income $ 11,433 $ 7,803 Denominator Weighted average basic shares 27,616 27,613 Dilutive effect of restricted stock units 10 — Weighted average diluted shares 27,626 27,613 Earnings per share Basic $ 0.41 $ 0.28 Diluted $ 0.41 $ 0.28

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS New credit agreement On April 6, 2023, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., as Administrative Agent, and other lenders party thereto. The Credit Agreement provides for secured revolving loans and letters of credit in an aggregate amount of up to $125 million. Simultaneously with entering into the Credit Agreement, XPEL borrowed $31 million to repay all outstanding indebtedness under its Loan Agreement with Texas Partners Bank and to pay expenses incurred in connection with the Credit Agreement. Borrowings under the Credit Agreement bear interest, at XPEL’s option, at a rate equal to either (a) Base Rate or (b) Adjusted Term SOFR. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.20% to 0.25% per annum for the unused portion of the aggregate commitment and an applicable margin ranging from 0.00% to 0.50% for Base Rate Loans and 1.00% to 1.50% for Adjusted Term SOFR Loans. Both the margin applicable to the interest rate and the commitment fee are dependent on XPEL’s Consolidated Total Leverage Ratio. Obligations under the Credit Agreement are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in all of XPEL’s material property and assets. The terms of the Credit Agreement include certain affirmative and negative covenants that require, among other things, XPEL to maintain legal existence and remain in good standing, comply with applicable laws, maintain accounting records, deliver financial statements and certifications on a timely basis, pay taxes as required by law, and maintain insurance coverage, as well as to forgo certain specified future activities that might otherwise encumber XPEL and certain customary covenants. The Credit Agreement provides for two financial covenants: 1. Its Consolidated Total Leverage Ratio to exceed 3.50 to 1.00, and 2. Its Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00. The Credit Agreement's maturity date is April 6, 2026. Under the Credit Agreement: “Adjusted Term SOFR” means, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus (b) the Term SOFR Adjustment; (as defined in the Credit Agreement) provided that if Adjusted Term SOFR as so determined shall ever be less than 0%, then the Adjusted Term SOFR shall be deemed to be 0%. “Base Rate” is defined as the highest of (a) the Administrative Agent’s prime rate, (b) the Federal funds rate plus 0.50%, or (c) Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%. “Consolidated Total Leverage Ratio” is defined as the ratio of consolidated funded indebtedness on such date to Consolidated EBITDA for the most recently completed Reference Period. “Consolidated Interest Coverage Ratio” is defined as the ratio of Consolidated EBITDA for the most recently completed Reference Period to XPEL’s consolidated interest expense for the most recently completed Reference Period. “Consolidated EBITDA” is defined as consolidated net income (i) plus all of the following: (a) consolidated interest expense; (b) tax expense measured by net income, profits or capital (or any similar measures), paid or accrued, including federal and state and local income taxes, foreign income taxes and franchise taxes; (c) depreciation, amortization and other non-cash charges or expenses (including stock based compensation and write-downs of goodwill), excluding any non-cash charge or expense that represents an accrual for a cash expense to be taken in a future period; (d) all transaction fees, charges and other amounts (including any financing fees, merger and acquisition fees, legal fees and expenses, due diligence fees or any other fees and expenses in connection therewith) in connection with any Credit Agreement permitted acquisition, investment, disposition, issuance or repurchase of equity interests, or the incurrence, amendment or waiver of indebtedness permitted hereunder (other than those related to the certain transactions or with respect to any amendment or modification of the Loan Documents), in each case, whether or not consummated, in each case to the extent paid within six months of the closing or effectiveness of such event or the termination or abandonment of such transaction, as the case may be; provided that (1) the aggregate amount added back pursuant to this provision with respect to any one transaction shall not exceed $2,000,000 for the applicable period and (2) any amounts added back for such applicable period shall be set forth in reasonable detail on XPEL’s compliance certification for such period; (e) non-cash charges and losses (excluding any such non-cash charges or losses to the extent (1) there were cash charges with respect to such charges and losses in past accounting periods or (2) there is a reasonable expectation that there will be cash charges with respect to such charges and losses in future accounting periods); and (f) unusual and non-recurring expenses, charges or losses (excluding losses from discontinued operations); and (ii) less the sum of the following, without duplication, to the extent included in determining consolidated net income for such period: (a) interest income; (b) federal, state, local and foreign income tax credits of XPEL and its subsidiaries for such period (to the extent not netted from income tax expense); (c) any unusual and non-recurring gains; (d) non-cash gains (excluding any such non-cash gains to the extent (A) there were cash gains with respect to such gains in past accounting periods or (B) there is a reasonable expectation that there will be cash gains with respect to such gains in future accounting periods); and (e) any cash expense made during such period which represents the reversal of any non-cash expense that was added in a prior period pursuant to clause (i)(c) above subsequent to the fiscal quarter in which the relevant non-cash expenses, charges or losses were incurred. “Reference Period” is defined at any date of determination as, the period of four consecutive fiscal quarters ended on or immediately prior to such date for which financial statements of XPEL have been delivered to the Administrative Agent. “SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator. “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). Acquisition of a business On May 1, 2023, we completed the acquisition of a U.S.-based dealership services business. The purchase price of this business was approximately $5.3 million.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. The functional currency for the Company is the United States ("U.S.") Dollar.
Segment Reporting	Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment.
Use of Estimates	Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions.
Accounts Receivable	Accounts Receivable - Accounts receivable are shown net of allowances for expected credit losses and doubtful accounts of $0.2 million and $0.2 million as of March 31, 2023 and December 31, 2022, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and
Provisions and Warranties	Provisions and Warranties - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims and data experience warrant.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. We adopted this pronouncement effective January 1, 2023 without material impact to our financial statements.
Revenue Recognition	Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenue from product and services sales is recognized when control of the goods, or benefit of the service, is furnished to the customer. This occurs at a point in time, typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return and those present are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would be one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company does require payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the condensed consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under the Accounting Standards Codification Topic 606 ("ASC 606") to omit disclosures regarding remaining performance obligations. When the Company transfers goods or provides services to a customer, payment is due, subject to normal terms, and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to due within 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the
Fair Value Measurements	FAIR VALUE MEASUREMENTS ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities. The Company has contingent liabilities related to future internal performance milestones. The fair value of these liabilities was determined using a Monte Carlo Simulation based on the probability and timing of certain future payments under these arrangements. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Product Warranty Liability	The following tables present a summary of our accrued warranty liabilities for the three months ended March 31, 2023 and the twelve months ended December 31, 2021 (in thousands): 2023 Warranty liability, January 1 $ 234 Warranties assumed in period $ 22 Payments $ (7) Warranty liability, March 31 $ 249 2022 Warranty liability, January 1 $ 75 Warranties assumed in period $ 624 Payments $ (465) Warranty liability, December 31 $ 234

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the three months ended March 31, 2023 (in thousands): Balance, December 31, 2022 $ 261 Revenue recognized related to payments included in the December 31, 2022 balance (206) Payments received for which performance obligations have not been satisfied 2,791 Effect of foreign currency translation 1 Balance, March 31, 2023 $ 2,847
Schedule of Disaggregation of Revenue	The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended 2023 2022 Product Revenue Paint protection film $ 49,548 $ 43,961 Window film 14,982 11,534 Other 2,778 2,603 Total $ 67,308 $ 58,098 Service Revenue Software $ 1,458 $ 1,207 Cutbank credits 4,030 2,930 Installation labor 12,399 9,256 Training and other 647 373 Total $ 18,534 $ 13,766 Total $ 85,842 $ 71,864
Schedule of Revenue Estimate by Geographic Areas	The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended 2023 2022 United States $ 51,077 $ 41,587 China 6,647 8,859 Canada 8,592 7,850 Continental Europe 7,960 5,663 United Kingdom 3,091 2,428 Middle East/Africa 3,496 2,049 Asia Pacific 2,645 2,033 Latin America 2,173 1,206 Other 161 189 Total $ 85,842 $ 71,864

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following (in thousands): March 31, 2023 December 31, 2022 Furniture and fixtures $ 2,831 $ 2,667 Computer equipment 3,685 3,455 Vehicles 851 838 Equipment 4,977 4,728 Leasehold improvements 7,349 7,081 Plotters 3,266 2,980 Construction in Progress 2,624 1,745 Total property and equipment 25,583 23,494 Less: accumulated depreciation 10,272 9,291 Property and equipment, net $ 15,311 $ 14,203

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following (in thousands): March 31, 2023 December 31, 2022 Trademarks $ 742 $ 686 Software 5,084 4,822 Trade name 1,473 1,451 Contractual and customer relationships 31,891 31,871 Non-compete 440 440 Other 499 497 Total at cost 40,129 39,767 Less: Accumulated amortization 11,644 10,473 Intangible assets, net $ 28,485 $ 29,294

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the three months ended March 31, 2023 and the twelve months ended December 31, 2021 (in thousands): 2022 Balance at December 31, 2021 $ 25,655 Additions and purchase price allocation adjustments 1,826 Foreign exchange $ (718) Balance at December 31, 2022 $ 26,763 2023 Balance at December 31, 2022 $ 26,763 Foreign exchange 56 Balance at March 31, 2023 $ 26,819

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 12,873 $ 10,416 Work in process 4,638 6,756 Finished goods 67,083 63,403 $ 84,594 $ 80,575

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table presents significant accounts payable and accrued liability balances as of the periods ending (in thousands): March 31, 2023 December 31, 2022 Trade payables $ 13,453 $ 16,689 Payroll liabilities 1,941 3,596 Contract liabilities 2,847 261 Acquisition holdback payments — 191 Other liabilities 2,300 2,233 $ 20,541 $ 22,970

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Liabilities Measured on Recurring Basis	Liabilities measured at fair value on a recurring basis as of the dates noted below are as follows (in thousands): March 31, 2023 December 31, 2022 Level 3: Contingent Liabilities $ 1,006 $ 955

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands except per share values): Three Months Ended March 31, Numerator 2023 2022 Net income $ 11,433 $ 7,803 Denominator Weighted average basic shares 27,616 27,613 Dilutive effect of restricted stock units 10 — Weighted average diluted shares 27,626 27,613 Earnings per share Basic $ 0.41 $ 0.28 Diluted $ 0.41 $ 0.28

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	3 Months Ended
	Mar. 31, 2023 segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Allowance for doubtful accounts receivable	$ 0.2	$ 0.2

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Warranty liability	$ 249	$ 234
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Warranty liability, beginning balance	234	75
Warranties assumed in period	22	624
Payments	(7)	(465)
Warranty liability, ending balance	$ 249	$ 234

REVENUE - Schedule of Transacti

REVENUE - Schedule of Transactions Within Contract Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Change in Contract with Customer, Liability [Abstract]
Beginning contract liabilities	$ 261
Revenue recognized related to payments included in the December 31, 2022 balance	(206)
Payments received for which performance obligations have not been satisfied	2,791
Effect of foreign currency translation	1
Ending contract liabilities	$ 2,847

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 85,842	$ 71,864
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	67,308	58,098
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	49,548	43,961
Window film
Disaggregation of Revenue [Line Items]
Total revenue	14,982	11,534
Other
Disaggregation of Revenue [Line Items]
Total revenue	2,778	2,603
Service revenue
Disaggregation of Revenue [Line Items]
Total revenue	18,534	13,766
Software
Disaggregation of Revenue [Line Items]
Total revenue	1,458	1,207
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	4,030	2,930
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	12,399	9,256
Training and other
Disaggregation of Revenue [Line Items]
Total revenue	$ 647	$ 373

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 85,842	$ 71,864
United States
Disaggregation of Revenue [Line Items]
Total revenue	51,077	41,587
China
Disaggregation of Revenue [Line Items]
Total revenue	6,647	8,859
Canada
Disaggregation of Revenue [Line Items]
Total revenue	8,592	7,850
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	7,960	5,663
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	3,091	2,428
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	3,496	2,049
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	2,645	2,033
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	2,173	1,206
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 161	$ 189

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Largest Customer | Customer Concentration Risk | Revenue from Contract with Customer Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk percentage	7.70%	12.30%

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 25,583	$ 23,494
Less: accumulated depreciation	10,272	9,291
Property and equipment, net	15,311	14,203
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	2,831	2,667
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	3,685	3,455
Vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	851	838
Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	4,977	4,728
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	7,349	7,081
Plotters
Property, Plant and Equipment [Line Items]
Total property and equipment	3,266	2,980
Construction in Progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,624	$ 1,745

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 972	$ 756

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total at cost	$ 40,129	$ 39,767
Less: Accumulated amortization	11,644	10,473
Intangible assets, net	28,485	29,294
Trademarks
Finite-Lived Intangible Assets [Line Items]
Total at cost	742	686
Software
Finite-Lived Intangible Assets [Line Items]
Total at cost	5,084	4,822
Trade name
Finite-Lived Intangible Assets [Line Items]
Total at cost	1,473	1,451
Contractual and customer relationships
Finite-Lived Intangible Assets [Line Items]
Total at cost	31,891	31,871
Non-compete
Finite-Lived Intangible Assets [Line Items]
Total at cost	440	440
Other
Finite-Lived Intangible Assets [Line Items]
Total at cost	$ 499	$ 497

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,161	$ 1,076

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Goodwill beginning balance	$ 26,763	$ 25,655
Additions and purchase price allocation adjustments		1,826
Foreign exchange	56	(718)
Goodwill ending balance	$ 26,819	$ 26,763

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 12,873	$ 10,416
Work in process	4,638	6,756
Finished goods	67,083	63,403
Inventory, net	$ 84,594	$ 80,575

DEBT - Narrative (Details)

DEBT - Narrative (Details) - Line of Credit - Revolving Credit Facility	3 Months Ended
	Mar. 31, 2023 USD ($)	Apr. 06, 2023 USD ($)	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 USD ($)
The Bank of San Antonio
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 75,000,000
Interest rate	7.25%		7.25%	6.75%
Line of credit facility, unused capacity, commitment fee percentage	0.25%
Interest expense, debt	$ 500,000
Amount outstanding	$ 28,000,000			$ 26,000,000
The Bank of San Antonio | Scenario One
Line of Credit Facility [Line Items]
Debt instrument, EBITDA ratio (equal or less than)	2		2
The Bank of San Antonio | Scenario Two
Line of Credit Facility [Line Items]
Debt instrument, EBITDA ratio (equal or less than)	2		2
The Bank of San Antonio | Prime Rate | Scenario One
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.75%
The Bank of San Antonio | Prime Rate | Scenario Two
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.25%
Wells Fargo Bank N.A. | Subsequent Event
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 125,000,000
HSBC Bank Canada
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 4,500,000
Amount outstanding	$ 0			$ 0
HSBC Bank Canada | Prime Rate
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.25%

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 13,453	$ 16,689
Payroll liabilities	1,941	3,596
Contract liabilities	2,847	261
Acquisition holdback payments	0	191
Other liabilities	2,300	2,233
Accounts payable and accrued liabilities	$ 20,541	$ 22,970

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Inputs, Level 3 | Fair Value, Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Contingent Liabilities	$ 1,006	$ 955

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net income	$ 11,433	$ 7,803
Denominator
Weighted average basic shares (in shares)	27,616,000	27,613,000
Dilutive effect of restricted stock units (in shares)	10,000	0
Weighted average diluted shares (in shares)	27,626,000	27,613,000
Earnings per share
Basic (in dollar per share)	$ 0.41	$ 0.28
Diluted (in dollar per share)	$ 0.41	$ 0.28

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)			3 Months Ended
	May 01, 2023 USD ($)	Apr. 06, 2023 USD ($) qtr	Mar. 31, 2023 USD ($)
Revolving Credit Facility | Line of Credit | The Bank of San Antonio
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 75,000,000
Line of credit facility, unused capacity, commitment fee percentage			0.25%
Subsequent Event | Protective Film Installation Business
Subsequent Event [Line Items]
Purchase price	$ 5,300,000
Subsequent Event | Revolving Credit Facility | Line of Credit | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 125,000,000
Covenant, leverage ratio, maximum		3.50
Covenant, interest coverage ratio, minimum		3
EBITDA calculation, add back amount, maximum		$ 2,000,000
Payment period		6 months
Reference period | qtr		4
Subsequent Event | Revolving Credit Facility | Line of Credit | The Bank of San Antonio
Subsequent Event [Line Items]
Proceeds from lines of credit		$ 31,000,000
Subsequent Event | Revolving Credit Facility | Line of Credit | Minimum | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.20%
Subsequent Event | Revolving Credit Facility | Line of Credit | Minimum | Base Rate | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Basis spread on prime rate		0%
Subsequent Event | Revolving Credit Facility | Line of Credit | Minimum | SOFR | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Basis spread on prime rate		1%
Subsequent Event | Revolving Credit Facility | Line of Credit | Maximum | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.25%
Subsequent Event | Revolving Credit Facility | Line of Credit | Maximum | Base Rate | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Basis spread on prime rate		0.50%
Subsequent Event | Revolving Credit Facility | Line of Credit | Maximum | SOFR | Wells Fargo Bank N.A.
Subsequent Event [Line Items]
Basis spread on prime rate		1.50%
Subsequent Event | Revolving Credit Facility | Line of Credit | Wells Fargo Bank | SOFR | Base Rate
Subsequent Event [Line Items]
Basis spread on prime rate		1%
Subsequent Event | Revolving Credit Facility | Line of Credit | Wells Fargo Bank | Fed Funds Effective Rate Overnight Index Swap Rate | Base Rate
Subsequent Event [Line Items]
Basis spread on prime rate		0.50%
Subsequent Event | Revolving Credit Facility | Line of Credit | Wells Fargo Bank | Adjusted Secured Overnight Financing Rate (SOFR)
Subsequent Event [Line Items]
Basis spread, floor		0%