Provides 2014
Projections
2013 Overview
- Annual revenues rose 41% to $183.3
million from $130.3 million in 2012
- 2013 operating income rose to $27.3
million from $11.0 million last year
- 2013 net income increased to $22.3
million, or $1.08 per diluted share, and included an extraordinary
gain in non-operating income of $7.6 million. This compared to net
income of $5.9 million, or $0.29 per diluted share, last year with
no such gains
- 2013 Adjusted EBITDA increased to $38.5
million from $22.3 million in 2012
Tecnoglass, Inc. (NASDAQ:TGLS; OTCBB:TGLSW) (“Tecnoglass” or
the “Company”), a leading manufacturer of architectural glass,
windows, and associated aluminum products for the global
residential and commercial construction industries, today announced
financial results for the year ended December 31, 2013.
José M. Daes, Chief Executive Officer of Tecnoglass, commented,
“Our strong results reflect the quality of our products and
service, our successful market expansion efforts, and the
meaningful manufacturing and delivery cost advantages we have
developed over the years. During 2013, we generated higher sales in
existing markets, including Colombia and the United States, which
included diversification outside of south Florida. Approximately
36% of our 2013 revenues were generated in the United States. We
expect that our presence in the United States and other geographies
will continue to grow, driven by, among other factors, industry and
macro-economic tailwinds, and increased project bonding capacity
following our debut as a public company in December 2013.”
Mr. Daes concluded, “We ended the year with a strong backlog, a
robust new business pipeline, and a fortified balance sheet
following our December 2013 merger with Andina Acquisition
Corporation. We are optimistic about 2014 and beyond, and are
continuing to pursue corporate and industry alliances, enter new
geographies, and invest in new and innovative products to meet
anticipated growing global demand.”
2013 Results Overview
Consolidated revenues for 2013 rose 41% to $183.3 million from
$130.3 million in 2012.
Gross profit rose to $55.4 million, or 30.2% of revenues, from
$34.9 million, or 26.8% of revenues, last year.
As a percentage of revenues, SG&A declined to 15.4% from
18.3% last year. On a dollar basis, SG&A increased 17.8%, or
$4.3 million, from 2012 due to higher shipping, insurance and
personnel costs, offset by a modest decline in administrative
expenses mostly due to decreased rent expense.
Operating income rose to $27.3 million from $11.0 million last
year.
An extraordinary gain in non-operating income of $7.6 million
was recorded to reflect the decrease in the fair value of the
warrants liability, which were issued in connection with
Tecnoglass’s merger with Andina Acquisition Corporation in December
2013.
Net income for 2013 increased to $22.3 million, or $1.08 per
diluted share, and included an extraordinary gain in non-operating
income of $7.6 million. This compared to net income of $5.9
million, or $0.29 per diluted share, in 2012 with no such gains.
Excluding the $7.6 million extraordinary gain, net income for 2013
was $14.7 million, or $0.71 per diluted share.
Backlog
Consolidated backlog stood at $120 million at December 31, 2013
compared to $110 million at December 31, 2012. Backlog consists
primarily of contract sales for projects that can last up to
several years until completion. Backlog should not be considered a
comprehensive indicator of future revenues or prospects, as a
significant portion of Tecnoglass’s revenues are derived from
non-contract, standard sales.
2014 Forecast
Based on current business conditions, including forecasted
growth in key markets, particularly the United States, Tecnoglass
expects that revenue, Adjusted EBITDA, and net income for the year
ending December 31, 2014 will approximate $205.7 million, $42.2
million, and $16.8 million, respectively.
Conference Call
Management will host a conference call on Monday, April 21,
2014, at 11:00 am ET to discuss these results and other matters.
Interested parties may participate in the call by dialing:
- (877) 423-9820 (Domestic)
- (201) 493-6749 (International)
The conference call will also be broadcast live via the Investor
Information sector of Tecnoglass’s website at www.tecnoglass.com.
To listen to the live call, please go to the website at least 15
minutes early to register, download and install any necessary audio
software. If you are unable to listen live, the conference call
will be archived on the website for approximately 90 days.
About Tecnoglass
Tecnoglass is a leading manufacturer of hi-spec, architectural
glass and windows for the global residential and commercial
construction industries. Headquartered in Barranquilla, Colombia,
Tecnoglass operates out of a 1.2 million square foot
vertically-integrated, state-of-the-art manufacturing complex that
provides easy access to the Americas, the Caribbean, and the
Pacific. Tecnoglass sells to more than 800 customers in North,
Central and South America, with the United States accounting for
approximately 36% of Company revenues in 2013. Tecnoglass’s
tailored, high-end products are found on some of the world’s most
distinctive properties, including the El Dorado Airport (Bogota),
Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower
(Miami), and The Woodlands (Houston). For more information, please
visit www.tecnoglass.com
Forward Looking
Statements
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding future financial
performance, future growth and future acquisitions. These
statements are based on Tecnoglass’s current expectations or
beliefs and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in
economic, business, competitive and/or regulatory factors, and
other risks and uncertainties affecting the operation of
Tecnoglass’ business. These risks, uncertainties and contingencies
are indicated from time to time in Tecnoglass’s filings with the
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Further, investors
should keep in mind that Tecnoglass’ financial results in any
particular period may not be indicative of future results.
Tecnoglass is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events, changes in
assumptions or otherwise.
Tecnoglass Inc. and
Subsidiaries
Consolidated Statements of Income and
Comprehensive Income
(in thousands, except share and per
share data)
Twelve Months Ended
December 31, 2013 2012
Operating revenues $ 183,294 $ 130,324 Cost of sales 127,875
95,451
Gross profit 55,419
34,873 Operating expenses: Selling 17,287 11,756
General and administration 10,862 12,138
Operating expenses net 28,149 23,894
Operating
income 27,270 10,979 Change in fair value
of warrant liability 7,626 - Non-operating revenues 3,998 3,649
Interest expense (7,886 ) (5,513 ) Income
before taxes 31,008 9,115 Income tax provision 8,696
3,223
Net income $ 22,312
$ 5,892 Comprehensive
income: Net income $ 22,312 $ 5,892 Foreign currency
translation adjustments (953 ) 6,262
Total
comprehensive income $ 21,359 $
12,154 Basic income per share $ 1.08 $
0.29 Diluted income per share $ 1.08 $ 0.29
Basic weighted average common shares outstanding 20,677,067
20,567,141 Diluted weighted average common
shares outstanding 20,714,275 20,567,141
Tecnoglass Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(in thousands, except share and per
share data)
December 31, 2013
2012 Assets Current
assets Cash $ 2,866 $ 2,135 Restricted cash 3,633 - Due from
transfer agent 15,908 - Subscription receivable 6,611 - Investments
1,353 2,675 Trade accounts receivable, net 59,010 37,431 Unbilled
receivables on uncompleted contracts 11,640 873 Due from related
parties 19,058 5,294 Advances and other receivables 13,165 16,796
Deferred income taxes 2,321 75 Inventories 24,181 21,559 Prepaid
expenses 824 1,606
Total
current assets 160,570 88,444 Property, plant and equipment,
net 87,382 63,032 Investments - 1,198 Other assets 262
1,344
Total assets $ 248,214
$ 154,018
Liabilities and
shareholders´ equity Current liabilities Short-term debt and
current portion of long-term debt $ 29,720 $ 7,125 Note payable to
shareholder 80 - Accounts payable and accrued expenses 37,682
25,807 Taxes payables 4,847 4,063 Deferred income taxes 6,698 -
Labor liabilities 6 25 Accrued liabilities and provisions 994 1,714
Current portion of customer advances on uncompleted contracts
28,470 17,867
Total current
liabilities 108,497 56,601 Warrant liability 18,280 - Customer
advances on uncompleted contracts 8,220 - Long-term debt
48,097 50,130
Total liabilities
183,094 106,731
Commitments and contingencies Shareholders'
equity
Preferred shares, $0.0001 par value,
1,000,000 shares authorized,
0 shares issued and outstanding at
December 31, 2013 and 2012
Ordinary shares, $0.0001 par value,
100,000,000 shares authorized,
24,214,670 and 20,567,141shares issued and
outstanding at
December 31, 2013 and 2012,
respectively
-
2
-
2
Legal reserves 1,367 1,367 Additional paid capital 40,693 44,219
Retained earnings (accumulated deficit) 18,488 (3,824 ) Cumulative
translation adjustment 4,570 5,523
Total shareholders´ equity 65,120
47,287
Total liabilities and shareholders´
equity $ 248,214 $ 154,018
Adjusted EBITDA Reconciliation
Adjusted EBITDA is not a measure of financial performance under
generally accepted accounting principles (“GAAP”). Management
believes Adjusted EBITDA, in addition to operating profit, net
income and other GAAP measures, is useful to investors to evaluate
the Company’s results because it excludes certain items that are
not directly related to the Company’s core operating performance.
Investors should recognize that Adjusted EBITDA might not be
comparable to similarly-titled measures of other companies. This
measure should be considered in addition to, and not as a
substitute for or superior to, any measure of performance prepared
in accordance with GAAP. A reconciliation of Adjusted EBITDA to the
most directly comparable GAAP measure in accordance with SEC
Regulation G follows:
Adjusted
EBITDA
Depreciation
Adjusted
EBIT
Warrants
Liability
Interest
Expense
Tax
Provision
Net
Income
Net
Income
w/o
Warrants
2012 22,296 7,668
14,628 -0-
5,513 3,223 5,892
5,892 2013 38,506
7,238 31,268
(7,626) 7,886 8,696
22,312 14,686 2014 F
42,239 8,492
33,747 -0-
8,624 8,291 16,832
16,832
The Equity Group Inc.Devin Sullivan, 212-836-9608Senior Vice
Presidentdsullivan@equityny.comorThomas Mei, 212-
836-9614Associatetmei@equityny.com