Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.001 per share | |
Trading Symbol | XPEL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,633,935 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001767258 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current | ||
Cash and cash equivalents | $ 8,614 | $ 11,609 |
Accounts receivable, net | 28,569 | 24,111 |
Inventory, net | 110,171 | 106,509 |
Prepaid expenses and other current assets | 5,578 | 3,529 |
Income tax receivable | 0 | 696 |
Total current assets | 152,932 | 146,454 |
Property and equipment, net | 17,624 | 16,980 |
Right-of-use lease assets | 15,471 | 15,459 |
Intangible assets, net | 33,938 | 34,905 |
Other non-current assets | 863 | 782 |
Goodwill | 37,664 | 37,461 |
Total assets | 258,492 | 252,041 |
Current | ||
Current portion of notes payable | 63 | 62 |
Current portion lease liabilities | 3,946 | 3,966 |
Accounts payable and accrued liabilities | 27,611 | 32,444 |
Income tax payable | 201 | 0 |
Total current liabilities | 31,821 | 36,472 |
Deferred tax liability, net | 2,459 | 2,658 |
Other long-term liabilities | 682 | 890 |
Borrowings on line of credit | 24,000 | 19,000 |
Non-current portion of lease liabilities | 12,814 | 12,715 |
Non-current portion of notes payable | 293 | 317 |
Total liabilities | 72,069 | 72,052 |
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; 27,631,097 and $27,630,025 issued and outstanding, respectively | 28 | 28 |
Additional paid-in-capital | 13,176 | 12,546 |
Accumulated other comprehensive loss | (2,071) | (1,209) |
Retained earnings | 175,290 | 168,624 |
Total stockholders’ equity | 186,423 | 179,989 |
Total liabilities and stockholders’ equity | $ 258,492 | $ 252,041 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 27,631,097 | |
Common stock shares outstanding (in shares) | 27,630,025 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total revenue | $ 90,104 | $ 85,842 |
Cost of Sales | ||
Total cost of sales | 52,228 | 49,882 |
Gross Margin | 37,876 | 35,960 |
Operating Expenses | ||
Sales and marketing | 10,391 | 6,675 |
General and administrative | 18,256 | 14,354 |
Total operating expenses | 28,647 | 21,029 |
Operating Income | 9,229 | 14,931 |
Interest expense | 473 | 523 |
Foreign currency exchange loss (gain) | 272 | (9) |
Income before income taxes | 8,484 | 14,417 |
Income tax expense | 1,818 | 2,984 |
Net income | $ 6,666 | $ 11,433 |
Earnings per share | ||
Basic (in dollar per share) | $ 0.24 | $ 0.41 |
Diluted (in dollar per share) | $ 0.24 | $ 0.41 |
Weighted Average Number of Common Shares | ||
Basic (in shares) | 27,630,000 | 27,616,000 |
Diluted (in shares) | 27,637,000 | 27,626,000 |
Product revenue | ||
Revenue | ||
Total revenue | $ 66,852 | $ 67,308 |
Cost of Sales | ||
Total cost of sales | 42,135 | 42,180 |
Service revenue | ||
Revenue | ||
Total revenue | 23,252 | 18,534 |
Cost of Sales | ||
Total cost of sales | $ 10,093 | $ 7,702 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other comprehensive income | ||
Net income | $ 6,666 | $ 11,433 |
Foreign currency translation | (862) | 299 |
Total comprehensive income | $ 5,804 | $ 11,732 |
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, 2022 | 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 | 299 | |||
Stock-based compensation | $ 303 | 303 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 27,616,000 | |||||
Ending balance at Mar. 31, 2023 | 136,757 | $ 28 | 11,376 | 127,257 | (1,904) | |
Beginning balance (in shares) at Dec. 31, 2023 | 27,630,025 | 27,630,000 | ||||
Beginning balance at Dec. 31, 2023 | 179,989 | $ 28 | 12,546 | 168,624 | (1,209) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 6,666 | 6,666 | 6,666 | |||
Foreign currency translation | $ (862) | (862) | ||||
Stock-based compensation | 630 | $ 1 | 630 | |||
Ending balance (in shares) at Mar. 31, 2024 | 27,631,000 | |||||
Ending balance at Mar. 31, 2024 | $ 186,423 | $ 28 | $ 13,176 | $ 175,290 | $ (2,071) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ 6,666 | $ 11,433 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation of property, plant and equipment | 1,333 | 972 |
Amortization of intangible assets | 1,410 | 1,161 |
Gain on sale of property and equipment | (18) | (9) |
Stock compensation | 630 | 303 |
Provision for credit losses | 89 | 74 |
Deferred income tax | (157) | (115) |
Changes in assets and liabilities: | ||
Accounts receivable | (4,763) | (6,606) |
Inventory, net | (3,878) | (3,886) |
Prepaid expenses and other current assets | (2,325) | (2,512) |
Income taxes receivable and payable | 904 | 2,360 |
Accounts payable and accrued liabilities | (4,850) | (2,480) |
Net cash (used in) provided by operating activities | (4,959) | 695 |
Cash flows used in investing activities | ||
Purchase of property, plant and equipment | (2,017) | (2,055) |
Proceeds from sale of property and equipment | 0 | 12 |
Acquisition of a business, net of cash acquired | (757) | 0 |
Development of intangible assets | (340) | (321) |
Net cash used in investing activities | (3,114) | (2,364) |
Cash flows from financing activities | ||
Net borrowings on revolving credit agreement | 5,000 | 2,000 |
Repayments of notes payable | (15) | (77) |
Net cash provided by financing activities | 4,985 | 1,923 |
Net change in cash and cash equivalents | (3,088) | 254 |
Foreign exchange impact on cash and cash equivalents | 93 | 20 |
(Decrease)/Increase in cash and cash equivalents during the period | (2,995) | 274 |
Cash and cash equivalents at beginning of period | 11,609 | 8,056 |
Cash and cash equivalents at end of period | 8,614 | 8,330 |
Supplemental schedule of non-cash activities | ||
Non-cash lease financing | 952 | 1,237 |
Issuance of common stock for vested restricted stock units | 57 | 0 |
Supplemental cash flow information | ||
Cash paid for income taxes | 1,152 | 748 |
Cash paid for interest | $ 430 | $ 517 |
INTERIM FINANCIAL INFORMATION
INTERIM FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, 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, 2024 and 2023 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, 2023 as filed with the SEC on February 28, 2024 (the "Annual Report") and with the Management's Discussion and Analysis of Financial Condition and Results of Operations section appearing elsewhere in this Report. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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 with 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 of $0.2 million and $0.2 million as of March 31, 2024 and December 31, 2023, 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. 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, 2024 and December 31, 2023 was $0.5 million and $0.4 million, respectively. The following tables present a summary of our accrued warranty liabilities for the three months ended March 31, 2024 and the twelve months ended December 31, 2023 (in thousands): 2024 Warranty liability, January 1 $ 422 Warranties assumed in period 412 Payments (334) Warranty liability, March 31 $ 500 2023 Warranty liability, January 1 $ 234 Warranties assumed in period 768 Payments (580) Warranty liability, December 31 $ 422 Recent Accounting Pronouncements Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” which makes certain updates to segment reporting. This standard will become effective for our annual reporting for the year beginning January 1, 2024 and for our interim reporting for interim periods beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which makes certain updates to income tax disclosures. This standard becomes effective for our fiscal year beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 (in thousands): Balance, December 31, 2023 $ 761 Revenue recognized related to payments included in the December 31, 2023 balance (696) Payments received for which performance obligations have not been satisfied 276 Effect of foreign currency translation (4) Balance, March 31, 2024 $ 337 The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended 2024 2023 Product Revenue Paint protection film $ 49,011 $ 49,548 Window film 14,549 14,982 Other 3,292 2,778 Total $ 66,852 $ 67,308 Service Revenue Software $ 1,928 $ 1,458 Cutbank credits 4,018 4,030 Installation labor 16,706 12,399 Training and other 600 647 Total $ 23,252 $ 18,534 Total $ 90,104 $ 85,842 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 2024 2023 United States $ 52,048 $ 51,077 China 1,450 6,647 Canada 11,080 8,592 Continental Europe 10,216 7,960 United Kingdom 3,486 3,091 Middle East/Africa 5,143 3,496 Asia Pacific 3,750 2,645 Latin America 2,931 2,173 Other — 161 Total $ 90,104 $ 85,842 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following (in thousands): March 31, 2024 December 31, 2023 Furniture and fixtures $ 3,953 $ 3,844 Computer equipment 4,978 4,743 Vehicles 1,144 1,141 Equipment 5,780 5,685 Leasehold improvements 11,151 10,921 Plotters 4,669 4,315 Construction in Progress 1,079 201 Total property and equipment 32,754 30,850 Less: accumulated depreciation 15,130 13,870 Property and equipment, net $ 17,624 $ 16,980 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Intangible assets consists of the following (in thousands): March 31, 2024 December 31, 2023 Trademarks $ 883 $ 864 Software 6,238 5,919 Trade name 1,900 1,918 Contractual and customer relationships 40,689 40,866 Non-compete 440 447 Other 723 510 Total at cost 50,873 50,524 Less: Accumulated amortization 16,935 15,619 Intangible assets, net $ 33,938 $ 34,905 |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following table summarizes goodwill transactions for the three months ended March 31, 2024 and the twelve months ended December 31, 2023 (in thousands): 2023 Balance at December 31, 2022 $ 26,763 Additions and purchase price allocation adjustments 10,422 Foreign exchange 276 Balance at December 31, 2023 $ 37,461 2024 Balance at December 31, 2023 $ 37,461 Additions and purchase price allocation adjustments 556 Foreign exchange (353) Balance at March 31, 2024 $ 37,664 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventory are summarized as follows (in thousands): March 31, 2024 December 31, 2023 Raw materials $ 6,856 $ 22,308 Work in process 14,658 6,230 Finished goods 88,657 77,971 $ 110,171 $ 106,509 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT REVOLVING FACILITIES The Company has a revolving credit facility providing for secured revolving loans and letters of credit in an aggregate amount of up to $125 million, which is subject to the terms of a credit agreement dated April 6, 2023 (the "Credit Agreement"). As of March 31, 2024 and December 31, 2023, the Company had outstanding balances of $24 million and $19 million under this agreement, respectively. 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. At March 31, 2024, these rates were 8.5% and 6.4%, respectively. Both the margin applicable to the interest rate and the commitment fee are dependent on XPEL’s Consolidated Total Leverage Ratio. The Credit Agreement's maturity date is April 6, 2026. All capitalized terms in this description of the credit facility that are not otherwise defined in this report have the meaning assigned to them in the Credit Agreement. 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, as follows. As of the last day of each fiscal quarter: 1. XPEL shall not allow its Consolidated Total Leverage Ratio to exceed 3.50 to 1.00, and 2. XPEL shall not allow its Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00 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, 2024 and December 31, 2023, no balance was outstanding on this line of credit. As of March 31, 2024 and December 31, 2023, the Company was in compliance with all debt covenants. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Trade payables $ 20,335 $ 24,233 Payroll liabilities 3,182 4,296 Contract liabilities 337 761 Acquisition holdback payments 956 868 Other liabilities 2,801 2,286 $ 27,611 $ 32,444 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Level 3: Contingent Liabilities $ 675 $ 815 Decreases 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, 2024. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In 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, 2024 | |
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 2024 2023 Net income $ 6,666 $ 11,433 Denominator Weighted average basic shares 27,630 27,616 Dilutive effect of restricted stock units 7 10 Weighted average diluted shares 27,637 27,626 Earnings per share Basic $ 0.24 $ 0.41 Diluted $ 0.24 $ 0.41 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
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 with 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 of $0.2 million and $0.2 million as of March 31, 2024 and December 31, 2023, 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 |
Provisions and Warranties | Provisions and Warranties - |
Recent Accounting Pronouncements Issued and Not Yet Adopted | Recent Accounting Pronouncements Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” which makes certain updates to segment reporting. This standard will become effective for our annual reporting for the year beginning January 1, 2024 and for our interim reporting for interim periods beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which makes certain updates to income tax disclosures. This standard becomes effective for our fiscal year beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on 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 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. |
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, 2024 | |
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, 2024 and the twelve months ended December 31, 2023 (in thousands): 2024 Warranty liability, January 1 $ 422 Warranties assumed in period 412 Payments (334) Warranty liability, March 31 $ 500 2023 Warranty liability, January 1 $ 234 Warranties assumed in period 768 Payments (580) Warranty liability, December 31 $ 422 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 (in thousands): Balance, December 31, 2023 $ 761 Revenue recognized related to payments included in the December 31, 2023 balance (696) Payments received for which performance obligations have not been satisfied 276 Effect of foreign currency translation (4) Balance, March 31, 2024 $ 337 |
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 2024 2023 Product Revenue Paint protection film $ 49,011 $ 49,548 Window film 14,549 14,982 Other 3,292 2,778 Total $ 66,852 $ 67,308 Service Revenue Software $ 1,928 $ 1,458 Cutbank credits 4,018 4,030 Installation labor 16,706 12,399 Training and other 600 647 Total $ 23,252 $ 18,534 Total $ 90,104 $ 85,842 |
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 2024 2023 United States $ 52,048 $ 51,077 China 1,450 6,647 Canada 11,080 8,592 Continental Europe 10,216 7,960 United Kingdom 3,486 3,091 Middle East/Africa 5,143 3,496 Asia Pacific 3,750 2,645 Latin America 2,931 2,173 Other — 161 Total $ 90,104 $ 85,842 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): March 31, 2024 December 31, 2023 Furniture and fixtures $ 3,953 $ 3,844 Computer equipment 4,978 4,743 Vehicles 1,144 1,141 Equipment 5,780 5,685 Leasehold improvements 11,151 10,921 Plotters 4,669 4,315 Construction in Progress 1,079 201 Total property and equipment 32,754 30,850 Less: accumulated depreciation 15,130 13,870 Property and equipment, net $ 17,624 $ 16,980 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consists of the following (in thousands): March 31, 2024 December 31, 2023 Trademarks $ 883 $ 864 Software 6,238 5,919 Trade name 1,900 1,918 Contractual and customer relationships 40,689 40,866 Non-compete 440 447 Other 723 510 Total at cost 50,873 50,524 Less: Accumulated amortization 16,935 15,619 Intangible assets, net $ 33,938 $ 34,905 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes goodwill transactions for the three months ended March 31, 2024 and the twelve months ended December 31, 2023 (in thousands): 2023 Balance at December 31, 2022 $ 26,763 Additions and purchase price allocation adjustments 10,422 Foreign exchange 276 Balance at December 31, 2023 $ 37,461 2024 Balance at December 31, 2023 $ 37,461 Additions and purchase price allocation adjustments 556 Foreign exchange (353) Balance at March 31, 2024 $ 37,664 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventory are summarized as follows (in thousands): March 31, 2024 December 31, 2023 Raw materials $ 6,856 $ 22,308 Work in process 14,658 6,230 Finished goods 88,657 77,971 $ 110,171 $ 106,509 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Trade payables $ 20,335 $ 24,233 Payroll liabilities 3,182 4,296 Contract liabilities 337 761 Acquisition holdback payments 956 868 Other liabilities 2,801 2,286 $ 27,611 $ 32,444 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Level 3: Contingent Liabilities $ 675 $ 815 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Net income $ 6,666 $ 11,433 Denominator Weighted average basic shares 27,630 27,616 Dilutive effect of restricted stock units 7 10 Weighted average diluted shares 27,637 27,626 Earnings per share Basic $ 0.24 $ 0.41 Diluted $ 0.24 $ 0.41 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||
Warranty liability | $ 500 | $ 422 |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Warranty liability, beginning balance | 422 | 234 |
Warranties assumed in period | 412 | 768 |
Payments | (334) | (580) |
Warranty liability, ending balance | $ 500 | $ 422 |
REVENUE - Schedule of Transacti
REVENUE - Schedule of Transactions Within Contract Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Change in Contract with Customer, Liability [Abstract] | |
Beginning contract liabilities | $ 761 |
Revenue recognized related to payments included in the December 31, 2023 balance | (696) |
Payments received for which performance obligations have not been satisfied | 276 |
Effect of foreign currency translation | (4) |
Ending contract liabilities | $ 337 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 90,104 | $ 85,842 |
Product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 66,852 | 67,308 |
Paint protection film | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 49,011 | 49,548 |
Window film | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 14,549 | 14,982 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,292 | 2,778 |
Service revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 23,252 | 18,534 |
Software | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,928 | 1,458 |
Cutbank credits | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,018 | 4,030 |
Installation labor | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 16,706 | 12,399 |
Training and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 600 | $ 647 |
REVENUE - Revenue Estimate By G
REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 90,104 | $ 85,842 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 52,048 | 51,077 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,450 | 6,647 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 11,080 | 8,592 |
Continental Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10,216 | 7,960 |
United Kingdom | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,486 | 3,091 |
Middle East/Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,143 | 3,496 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,750 | 2,645 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,931 | 2,173 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 | $ 161 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 32,754 | $ 30,850 |
Less: accumulated depreciation | 15,130 | 13,870 |
Property and equipment, net | 17,624 | 16,980 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,953 | 3,844 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,978 | 4,743 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,144 | 1,141 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,780 | 5,685 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,151 | 10,921 |
Plotters | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,669 | 4,315 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,079 | $ 201 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,333 | $ 972 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | $ 50,873 | $ 50,524 |
Less: Accumulated amortization | 16,935 | 15,619 |
Intangible assets, net | 33,938 | 34,905 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | 883 | 864 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | 6,238 | 5,919 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | 1,900 | 1,918 |
Contractual and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | 40,689 | 40,866 |
Non-compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | 440 | 447 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total at cost | $ 723 | $ 510 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 1,410 | $ 1,161 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 37,461 | $ 26,763 |
Additions and purchase price allocation adjustments | 556 | 10,422 |
Foreign exchange | (353) | 276 |
Goodwill ending balance | $ 37,664 | $ 37,461 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,856 | $ 22,308 |
Work in process | 14,658 | 6,230 |
Finished goods | 88,657 | 77,971 |
Inventory, net | $ 110,171 | $ 106,509 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) covenant | Mar. 31, 2024 CAD ($) covenant | Dec. 31, 2023 USD ($) | Apr. 06, 2023 | |
Line of Credit Facility [Line Items] | ||||
Number of covenants | covenant | 2 | 2 | ||
Revolving Credit Facility | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 125,000,000 | |||
Amount outstanding | 24,000,000 | $ 19,000,000 | ||
Covenant, interest coverage ratio, minimum | 3.50 | |||
Covenant, leverage ratio, maximum | 3 | |||
Revolving Credit Facility | Line of Credit | HSBC Bank Canada | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 4,500,000 | |||
Amount outstanding | $ 0 | $ 0 | ||
Revolving Credit Facility | Line of Credit | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility interest rate equal to or less than) | 8.50% | 8.50% | ||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility interest rate equal to or less than) | 6.40% | 6.40% | ||
Revolving Credit Facility | Line of Credit | Prime Rate | HSBC Bank Canada | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 0.25% | |||
Revolving Credit Facility | Line of Credit | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.20% | |||
Revolving Credit Facility | Line of Credit | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 0% | |||
Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 1% | |||
Revolving Credit Facility | Line of Credit | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Revolving Credit Facility | Line of Credit | Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 0.50% | |||
Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on prime rate | 1.50% |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade payables | $ 20,335 | $ 24,233 |
Payroll liabilities | 3,182 | 4,296 |
Contract liabilities | 337 | 761 |
Acquisition holdback payments | 956 | 868 |
Other liabilities | 2,801 | 2,286 |
Accounts payable and accrued liabilities | $ 27,611 | $ 32,444 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 3 | Fair Value, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Contingent Liabilities | $ 675 | $ 815 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net income | $ 6,666 | $ 11,433 |
Denominator | ||
Weighted average basic shares (in shares) | 27,630,000 | 27,616,000 |
Dilutive effect of restricted stock units (in shares) | 7,000 | 10,000 |
Weighted average diluted shares (in shares) | 27,637,000 | 27,626,000 |
Earnings per share | ||
Basic (in dollar per share) | $ 0.24 | $ 0.41 |
Diluted (in dollar per share) | $ 0.24 | $ 0.41 |