Tecnoglass, Inc. (NYSE: TGLS) (“Tecnoglass” or the
“Company”),
a leading producer of high-end
aluminum and vinyl windows and architectural glass for the global
residential and commercial end markets, today reported financial
results for the third quarter ended September 30, 2023.
José Manuel Daes, Chief Executive Officer of
Tecnoglass, commented, “Our record third quarter revenues and cash
flow reflect strong performance in both our multi-family/commercial
and single-family residential businesses as we continue to innovate
and gain market share in key geographies. In this dynamic
macroeconomic environment, our margins were impacted by a primarily
non-cash effect related to the sharp and fast appreciation of the
Colombian Peso, which on an average has partially reversed course
since quarter end. Our Adjusted EBITDA1 margin remained in excess
of 30%, attributable to our strategic facility investments and
disciplined cost controls. In addition, the shorter cash cycle in
our growing single-family residential business, along with our
prudent working capital management, allowed us to generate record
cash flow from operations during the quarter. Our strong capital
position has given us the ability to build additional value in our
Company through our recently completed facility investments and
ongoing share repurchase program, in-line with our commitment to
create additional shareholder value. As we look to the remainder of
the year and into 2024, we remain confident in our ability to
leverage our unique vertically integrated business model and
execute against our multi-pronged growth strategy.”
Christian Daes, Chief Operating Officer of
Tecnoglass, added, “We had a number of highly beneficial operating
and strategic updates during the quarter. Steady demand for our
best-in-class, innovative products contributed to record
single-family residential revenues, which continues to outperform
despite a challenging environment. We experienced positive momentum
in our multi-family/commercial business with backlog expanding to
another record of $836 million, giving us confidence in the
trajectory of this business with a solid project pipeline into
2025. With our recent entrance into vinyl windows, which represents
an estimated 60% of the $26 billion architectural window market, we
have already made a significant portion of the anticipated capex
investments to add an incremental $300 million in annual revenues
in the coming years. Our recent global headquarter relocation to
Miami, FL directly aligns with over 95% of our revenues sourced
from U.S. markets and has been well received by customers,
employees, and other stakeholders. All of the success we are
achieving in combination with the strategic steps we are taking
underscore our commitment to growing our customer relationships and
streamlining our operations to generate meaningful value in
Tecnoglass.”
Third Quarter 2023 Results
Total revenues for the third quarter of 2023
increased 4.4% to $210.7 million compared to $201.8 million in the
prior year quarter, driven by an increase in the Company’s
multi-family/commercial business, growth in single-family
residential business and market share gains. Single-family
residential revenues increased 2% year-over-year, helped by market
share gains and the continued positive demographic trends in the
Company’s main markets. Multi-family/commercial revenues increased
6% year-over-year, attributable to an increase in projects which
were previously put on hold in early planning stages during the
pandemic, or moved into designing and permitting stages in the last
18 months given the positive demographic shifts in the Company’s
main markets. Changes in foreign currency exchange rates had an
adverse impact of $0.5 million on total revenues in the
quarter.
Gross profit for the third quarter of 2023 was
$90.5 million, representing a 43.0% gross margin, compared to gross
profit of $105.3 million, representing a 52.2% gross margin in the
prior year quarter. The year-over-year change in gross margin
mainly reflected a non-cash 660 basis point unfavorable foreign
exchange impact, related to the markup of inventory in the
Company´s functional currency, due to the significant and rapid
appreciation of the Colombian Peso, which strengthened
approximately 20% from the beginning of the second quarter to the
end of the third quarter of 2023. The majority of impacted
inventory has been worked down and foreign exchange rates, on an
average have partially reversed course since the end of the
quarter, providing for less accounting variability in results
through year end. Excluding the impact of foreign exchange, gross
margin for the third quarter of 2023 was much more in line with the
second quarter of 2023 and with the expectation for full year 2023
results.
Selling, general and administrative expense
(“SG&A”) was $29.5 million for the third quarter of 2023
compared to $35.2 million in the prior year quarter, with the
decrease attributable to lower shipping and commission expenses and
a non-recurring settlement charge in the third quarter of 2022,
partially offset by increased corporate costs to support a larger
operation. As a percent of total revenues, SG&A was 14.0% for
the third quarter of 2023 compared to 17.4% in the prior year
quarter, primarily due to lower SG&A expense and better
operating leverage.
Net income was $46.1 million, or $0.97 per
diluted share, in the third quarter of 2023 compared to net income
of $46.9 million, or $0.98 per diluted share, in the prior year
quarter, including a non-cash foreign exchange transaction gain of
$1.1 million in the third quarter of 2023 and a $0.5 million loss
in the third quarter of 2022. These non-cash gains and losses are
related to the accounting re-measurement of U.S. Dollar denominated
assets and liabilities against the Colombian Peso as functional
currency.
Adjusted net income1 was $46.6
million, or $0.98 per diluted share, in the third quarter of 2023
compared to adjusted net income of $48.0 million, or $1.01 per
diluted share, in the prior year quarter. Adjusted net
income1, as reconciled in the table below,
excludes the impact of non-cash foreign exchange transaction gains
or losses and other non-core items, along with the tax impact of
adjustments at statutory rates, to better reflect core financial
performance.
Adjusted EBITDA1, as reconciled
in the table below, was $71.3 million, or 33.8% of total revenues,
in the third quarter of 2023, compared to $78.5 million, or 38.9%
of total revenues, in the prior year quarter. The change was
primarily attributable to aforementioned non-cash foreign exchange
impact on gross margin, partially offset by improved SG&A
leverage. Adjusted EBITDA1 included a $0.4 million
contribution from the Company’s joint venture with Saint-Gobain,
compared to $0.9 million in the prior year quarter.
Cash Generation, Capital Allocation and
Liquidity
Cash provided by operating activities for the
third quarter of 2023 was $51.3 million, primarily driven by a
reduction in working capital. Capital expenditures of $24.3 million
in the quarter included payments for previously purchased land for
future potential capacity expansion, along with a significant
portion of previously disclosed investments in facilities and
operational infrastructure to enter the vinyl window market. Given
the Company´s increase in installed capacity, a meaningful decrease
in capital expenditures is expected for 2024.
During the quarter, the Company returned capital
to shareholders through $8.9 million in share repurchases and $4.3
million in cash dividends. The Company repurchased an additional
$11.2 million of stock after the quarter end and as of November 6,
2023, had approximately $30 million remaining under the current
repurchase program.
The Company ended the third quarter of 2023 with
total liquidity of approximately $289.0 million, including $119.0
million of cash and cash equivalents and $170.0 million of
availability under its revolving credit facilities. Given the
Company’s strong cash generation, net debt leverage remained near a
record low level of 0.2x net debt to LTM Adjusted EBITDA1, compared
to 0.4x in the prior year quarter.
Full Year 2023 Outlook
Santiago Giraldo, Chief Financial Officer of
Tecnoglass, stated, “We see our business performing exceptionally
well in a challenging market with share gains driving double-digit
organic growth, strong Adjusted EBITDA margins and substantial cash
flow year-to-date. With the positive trajectory of our business
backed by a strong backlog in multi-family/commercial projects and
significant white space for our residential expansion, we are
moderating our full year revenue outlook based on updated
visibility on the timing of project deliveries through year end. We
expect 2023 revenues to grow organically to a range of $835 million
to $848 million, representing approximately 17% growth at the
midpoint. Combined with the impact of the unfavorable non-cash
foreign currency effect on inventories during the third quarter,
which is now mostly behind us, and the expectation for a higher mix
of installation revenues during the rest of the year, we are
modifying our expectations for Adjusted EBITDA1 to be in the range
of $300 million to $308 million, representing growth of
approximately 14% at the midpoint. The implied Adjusted EBITDA1
margin of approximately 36% at the midpoint assumes a full year
gross margin in the range of 47% to 49%, driving strong free cash
flow into year end. Our backlog of multi-family/commercial projects
has accelerated and our single-family residential expansion
strategy continues to gain traction, which gives us confidence that
2024 will be another year of double-digit growth at attractive
margins with significant cash flow generation.”
Webcast and Conference Call
Management will host a webcast and conference
call on November 6, 2023 at 10:00 a.m. Eastern time (10:00 a.m.
Bogota, Colombia time) to review the Company’s results. The
conference call will be broadcast live over the Internet.
Additionally, a slide presentation will accompany the conference
call. To listen to the call and view the slides, please visit the
Investor Relations section of Tecnoglass' website at
www.tecnoglass.com. Please go to the website at least 15 minutes
early to register, download and install any necessary audio
software. For those unable to access the webcast, the conference
call will be accessible by dialing 1-877-269-7751 (domestic) or
1-201-389-0908 (international). Upon dialing in, please request to
join the Tecnoglass Third Quarter 2023 Earnings Conference
Call.
If you are unable to listen live, a replay of
the webcast will be archived on the website. You may also access
the conference call playback by dialing 1-844-512-2921 (Domestic)
or 1-412-317-6671 (International) and entering passcode:
13741883.
About Tecnoglass
Tecnoglass Inc. is a leading producer of
high-end aluminum and vinyl windows and architectural glass serving
the multi-family, single-family, and commercial end markets.
Tecnoglass is the second largest glass fabricator serving the U.S.
and the #1 architectural glass transformation company in Latin
America. Located in Barranquilla, Colombia, the Company’s 5.6
million square foot, vertically integrated, and state-of-the-art
manufacturing complex provide efficient access to nearly 1,000
customers in North, Central and South America, with the United
States accounting for 95% of total revenues. Tecnoglass’ tailored,
high-end products are found on some of the world’s most distinctive
properties, including One Thousand Museum (Miami), Paramount
(Miami), Salesforce Tower (San Francisco), Via 57 West (NY),
Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá),
One Plaza (Medellín), Pabellon de Cristal (Barranquilla). For more
information, please visit www.tecnoglass.com or view our corporate
video at https://vimeo.com/134429998.
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’ 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’ 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 and changes
in assumptions or otherwise, except as required by law.
1 Adjusted net income (loss) and Adjusted EBITDA in both periods
are reconciled in the table below.
Investor Relations:
Santiago
GiraldoCFO305-503-9062investorrelations@tecnoglass.com
Tecnoglass Inc. and
SubsidiariesConsolidated Balance Sheets
(In thousands, except share and per share
data)
|
|
September 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
118,973 |
|
|
|
$ |
103,671 |
|
|
Investments |
|
|
2,479 |
|
|
|
|
2,049 |
|
|
Trade accounts receivable,
net |
|
|
174,148 |
|
|
|
|
158,397 |
|
|
Due from related parties |
|
|
1,493 |
|
|
|
|
1,447 |
|
|
Inventories |
|
|
165,846 |
|
|
|
|
124,997 |
|
|
Contract assets – current
portion |
|
|
16,539 |
|
|
|
|
12,610 |
|
|
Other current assets |
|
|
57,668 |
|
|
|
|
28,963 |
|
|
Total current
assets |
|
$ |
537,146 |
|
|
|
$ |
432,134 |
|
|
Long-term
assets: |
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
$ |
299,120 |
|
|
|
$ |
202,865 |
|
|
Deferred income taxes |
|
|
111 |
|
|
|
|
558 |
|
|
Contract assets –
non-current |
|
|
9,075 |
|
|
|
|
8,875 |
|
|
Long-term trade accounts
receivable |
|
|
- |
|
|
|
|
1,225 |
|
|
Intangible assets |
|
|
3,249 |
|
|
|
|
2,706 |
|
|
Goodwill |
|
|
23,561 |
|
|
|
|
23,561 |
|
|
Long-term investments |
|
|
61,516 |
|
|
|
|
57,839 |
|
|
Other long-term assets |
|
|
5,278 |
|
|
|
|
4,545 |
|
|
Total long-term
assets |
|
|
401,910 |
|
|
|
|
302,174 |
|
|
Total
assets |
|
$ |
939,056 |
|
|
|
$ |
734,308 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Short-term debt and current
portion of long-term debt |
|
$ |
3,127 |
|
|
|
$ |
504 |
|
|
Trade accounts payable and
accrued expenses |
|
|
108,259 |
|
|
|
|
90,186 |
|
|
Due to related parties |
|
|
4,108 |
|
|
|
|
5,323 |
|
|
Dividends payable |
|
|
4,317 |
|
|
|
|
3,622 |
|
|
Contract liability – current
portion |
|
|
68,654 |
|
|
|
|
49,601 |
|
|
Other current liabilities |
|
|
50,537 |
|
|
|
|
60,566 |
|
|
Total current
liabilities |
|
$ |
239,002 |
|
|
|
$ |
209,802 |
|
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
Deferred income taxes |
|
$ |
13,876 |
|
|
|
$ |
5,190 |
|
|
Contract liability –
non-current |
|
|
13 |
|
|
|
|
11 |
|
|
Long-term debt |
|
|
166,699 |
|
|
|
|
168,980 |
|
|
Total long-term
liabilities |
|
|
180,588 |
|
|
|
|
174,181 |
|
|
Total
liabilities |
|
$ |
419,590 |
|
|
|
$ |
383,983 |
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Preferred shares, $0.0001 par
value, 1,000,000 shares authorized, 0 shares issued and outstanding
at September 30, 2023 and December 31, 2022, respectively |
|
$ |
— |
|
|
|
$ |
— |
|
|
Ordinary shares, $0.0001 par
value, 100,000,000 shares authorized, 47,445,991 and 47,674,773
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively |
|
|
5 |
|
|
|
|
5 |
|
|
Legal Reserves |
|
|
1,458 |
|
|
|
|
1,458 |
|
|
Additional paid-in
capital |
|
|
210,408 |
|
|
|
|
219,290 |
|
|
Retained earnings |
|
|
367,925 |
|
|
|
|
234,254 |
|
|
Accumulated other
comprehensive loss |
|
|
(62,323 |
) |
|
|
|
(106,187 |
) |
|
Shareholders’ equity
attributable to controlling interest |
|
|
517,473 |
|
|
|
|
348,820 |
|
|
Shareholders’ equity
attributable to non-controlling interest |
|
|
1,993 |
|
|
|
|
1,505 |
|
|
Total shareholders’
equity |
|
|
519,466 |
|
|
|
|
350,325 |
|
|
Total liabilities and
shareholders’ equity |
|
$ |
939,056 |
|
|
|
$ |
734,308 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated Statements of Operations
and Comprehensive Income (In thousands, except
share and per share data)(Unaudited)
|
|
Three months ended |
|
|
Nine months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
$ |
210,268 |
|
|
|
$ |
201,240 |
|
|
|
$ |
637,362 |
|
|
|
$ |
503,919 |
|
|
Related parties |
|
|
475 |
|
|
|
|
540 |
|
|
|
|
1,300 |
|
|
|
|
1,533 |
|
|
Total operating revenues |
|
|
210,743 |
|
|
|
|
201,780 |
|
|
|
|
638,662 |
|
|
|
|
505,452 |
|
|
Cost of sales |
|
|
(120,216 |
) |
|
|
|
(96,484 |
) |
|
|
|
(330,710 |
) |
|
|
|
(266,191 |
) |
|
Gross
profit |
|
|
90,527 |
|
|
|
|
105,296 |
|
|
|
|
307,952 |
|
|
|
|
239,261 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
(15,724 |
) |
|
|
|
(20,250 |
) |
|
|
|
(52,531 |
) |
|
|
|
(50,234 |
) |
|
General and administrative
expense |
|
|
(13,791 |
) |
|
|
|
(14,914 |
) |
|
|
|
(46,228 |
) |
|
|
|
(39,442 |
) |
|
Total operating expenses |
|
|
(29,515 |
) |
|
|
|
(35,164 |
) |
|
|
|
(98,759 |
) |
|
|
|
(89,676 |
) |
|
Operating
income |
|
|
61,012 |
|
|
|
|
70,132 |
|
|
|
|
209,193 |
|
|
|
|
149,585 |
|
|
Non-operating income, net |
|
|
605 |
|
|
|
|
634 |
|
|
|
|
3,517 |
|
|
|
|
1,137 |
|
|
Equity method income |
|
|
1,108 |
|
|
|
|
1,821 |
|
|
|
|
3,676 |
|
|
|
|
5,070 |
|
|
Foreign currency transactions
(loss) gains |
|
|
1,142 |
|
|
|
|
(450 |
) |
|
|
|
931 |
|
|
|
|
(856 |
) |
|
Interest expense and deferred
cost of financing |
|
|
(2,325 |
) |
|
|
|
(2,249 |
) |
|
|
|
(6,919 |
) |
|
|
|
(5,432 |
) |
|
Income before taxes |
|
|
61,542 |
|
|
|
|
69,888 |
|
|
|
|
210,398 |
|
|
|
|
149,504 |
|
|
Income tax provision |
|
|
(15,447 |
) |
|
|
|
(22,966 |
) |
|
|
|
(63,366 |
) |
|
|
|
(48,216 |
) |
|
Net
income |
|
$ |
46,095 |
|
|
|
$ |
46,922 |
|
|
|
$ |
147,032 |
|
|
|
$ |
101,288 |
|
|
Income attributable to
non-controlling interest |
|
|
(232 |
) |
|
|
|
(196 |
) |
|
|
|
(489 |
) |
|
|
|
(515 |
) |
|
Income attributable to
parent |
|
$ |
45,863 |
|
|
|
$ |
46,726 |
|
|
|
$ |
146,543 |
|
|
|
$ |
100,773 |
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
46,095 |
|
|
|
$ |
46,922 |
|
|
|
$ |
147,032 |
|
|
|
$ |
101,288 |
|
|
Foreign currency translation
adjustments |
|
|
8,228 |
|
|
|
|
(22,054 |
) |
|
|
|
43,277 |
|
|
|
|
(32,039 |
) |
|
Change in fair value of
derivative contracts |
|
|
601 |
|
|
|
|
4,865 |
|
|
|
|
587 |
|
|
|
|
9,197 |
|
|
Total comprehensive
income |
|
$ |
54,924 |
|
|
|
$ |
29,733 |
|
|
|
$ |
190,896 |
|
|
|
$ |
78,446 |
|
|
Comprehensive loss
attributable to non-controlling interest |
|
|
(232 |
) |
|
|
|
(196 |
) |
|
|
|
(489 |
) |
|
|
|
(515 |
) |
|
Total comprehensive
income attributable to parent |
|
$ |
54,692 |
|
|
|
$ |
29,537 |
|
|
|
$ |
190,407 |
|
|
|
$ |
77,931 |
|
|
Basic income per share |
|
$ |
0.97 |
|
|
|
$ |
0.98 |
|
|
|
$ |
3.09 |
|
|
|
$ |
2.12 |
|
|
Diluted income per share |
|
$ |
0.97 |
|
|
|
|
0.98 |
|
|
|
$ |
3.09 |
|
|
|
$ |
2.12 |
|
|
Basic weighted average common
shares outstanding |
|
|
47,599,339 |
|
|
|
|
47,674,773 |
|
|
|
|
47,649,037 |
|
|
|
|
47,674,773 |
|
|
Diluted weighted average
common shares outstanding |
|
|
47,599,339 |
|
|
|
|
47,674,773 |
|
|
|
|
47,649,037 |
|
|
|
|
47,674,773 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated Statements of Cash
Flows (In
thousands)(Unaudited)
|
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
147,032 |
|
|
|
$ |
101,288 |
|
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Allowance for credit
losses |
|
|
2,537 |
|
|
|
|
541 |
|
|
Depreciation and
amortization |
|
|
15,841 |
|
|
|
|
15,089 |
|
|
Deferred income taxes |
|
|
7,565 |
|
|
|
|
140 |
|
|
Equity method income |
|
|
(3,676 |
) |
|
|
|
(5,070 |
) |
|
Deferred cost of
financing |
|
|
929 |
|
|
|
|
1,059 |
|
|
Other non-cash
adjustments |
|
|
157 |
|
|
|
|
(22 |
) |
|
Unrealized currency
translation (loss) gains |
|
|
(23,280 |
) |
|
|
|
9,482 |
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
(10,351 |
) |
|
|
|
(29,486 |
) |
|
Inventories |
|
|
(15,271 |
) |
|
|
|
(53,911 |
) |
|
Prepaid expenses |
|
|
(2,028 |
) |
|
|
|
(1,126 |
) |
|
Other assets |
|
|
(25,535 |
) |
|
|
|
(1,646 |
) |
|
Trade accounts payable and
accrued expenses |
|
|
8,371 |
|
|
|
|
14,637 |
|
|
Taxes payable |
|
|
(21,670 |
) |
|
|
|
23,962 |
|
|
Labor liabilities |
|
|
2,425 |
|
|
|
|
1,629 |
|
|
Other liabilities |
|
|
245 |
|
|
|
|
(1,851 |
) |
|
Contract assets and
liabilities |
|
|
13,066 |
|
|
|
|
14,974 |
|
|
Related parties |
|
|
(1,871 |
) |
|
|
|
2,409 |
|
|
CASH PROVIDED BY
OPERATING ACTIVITIES |
|
$ |
94,486 |
|
|
|
$ |
92,098 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Purchase of investments |
|
|
(303 |
) |
|
|
|
(1,285 |
) |
|
Acquisition of property and
equipment |
|
|
(62,194 |
) |
|
|
|
(46,817 |
) |
|
CASH USED IN INVESTING
ACTIVITIES |
|
$ |
(62,497 |
) |
|
|
$ |
(48,102 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Cash dividend |
|
|
(12,158 |
) |
|
|
|
(9,294 |
) |
|
Stock buyback |
|
|
(8,882 |
) |
|
|
|
- |
|
|
Proceeds from debt |
|
|
109 |
|
|
|
|
59 |
|
|
Repayments of debt |
|
|
- |
|
|
|
|
(32,002 |
) |
|
CASH USED IN FINANCING
ACTIVITIES |
|
$ |
(20,931 |
) |
|
|
$ |
(41,237 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
$ |
4,243 |
|
|
|
$ |
(3,336 |
) |
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH |
|
|
15,301 |
|
|
|
|
(577 |
) |
|
CASH - Beginning of
period |
|
|
103,672 |
|
|
|
|
85,011 |
|
|
CASH - End of period |
|
$ |
118,973 |
|
|
|
$ |
84,434 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the period
for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
8,543 |
|
|
|
$ |
4,136 |
|
|
Income Tax |
|
$ |
94,914 |
|
|
|
$ |
25,377 |
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Assets acquired under credit
or debt |
|
$ |
11,626 |
|
|
|
$ |
4,555 |
|
|
Revenues by
Region(Amounts in
thousands)(Unaudited)
|
Three months ended |
|
Twelve months ended |
|
September 30, |
|
September 30, |
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
Revenues by
Region |
|
|
|
|
|
|
|
|
|
|
|
United States |
200,347 |
|
193,504 |
|
3.5 |
% |
|
816,311 |
|
604,371 |
|
35.1 |
% |
Colombia |
7,218 |
|
4,817 |
|
49.9 |
% |
|
21,263 |
|
18,968 |
|
12.1 |
% |
Other Countries |
3,177 |
|
3,459 |
|
(8.1 |
%) |
|
12,206 |
|
13,933 |
|
(12.4 |
%) |
Total Revenues by
Region |
210,743 |
|
201,780 |
|
4.4 |
% |
|
849,780 |
|
637,271 |
|
33.3 |
% |
Reconciliation of Non-GAAP Performance
Measures to GAAP Performance
Measures(In
thousands)(Unaudited)
The Company believes that total revenues with
foreign currency held neutral non-GAAP performance measures, which
management uses in managing and evaluating the Company's business,
may provide users of the Company's financial information with
additional meaningful bases for comparing the Company's current
results and results in a prior period, as these measures reflect
factors that are unique to one period relative to the comparable
period. However, these non‑GAAP performance measures should be
viewed in addition to, and not as an alternative for, the Company's
reported results under accounting principles generally accepted in
the United States.
|
Three months ended |
|
Twelve months ended |
|
September 30, |
|
September 30, |
2023 |
|
2022 |
|
% Change |
|
2023 |
|
|
2022 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues with
Foreign Currency Held Neutral |
210,206 |
|
201,780 |
|
4.2 |
% |
|
852,368 |
|
|
637,271 |
|
33.8 |
% |
Impact of changes in foreign
currency |
537 |
|
- |
|
- |
|
|
(2,588 |
) |
|
- |
|
- |
|
Total Revenues,
As Reported |
210,743 |
|
201,780 |
|
4.4 |
% |
|
849,780 |
|
|
637,271 |
|
33.3 |
% |
Currency impacts on total revenues for the current quarter have
been derived by translating current quarter revenues at the
prevailing average foreign currency rates during the prior year
quarter, as applicable.
Reconciliation of Adjusted EBITDA and
Adjusted net (loss) income to net (loss) income(In
thousands, except share and per share data) /
(Unaudited)
Adjusted EBITDA and adjusted net (loss) income
are not measures of financial performance under generally accepted
accounting principles (“GAAP”). Management believes Adjusted EBITDA
and adjusted net (loss) income, in addition to operating profit,
net (loss) 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 and
adjusted net (loss) income might not be comparable to
similarly-titled measures of other companies. These measures should
be considered in addition to, and not as a substitute for or
superior to, any measure of performance prepared in accordance with
GAAP.
Reconciliations of the non-GAAP measures used in
this press release are included in the tables attached to this
press release, to the extent available without unreasonable effort.
Because GAAP financial measures on a forward-looking basis are not
accessible, and reconciling information is not available without
unreasonable effort, we have not provided reconciliations for
forward-looking non-GAAP measures.
A reconciliation of Adjusted net (loss) income
and Adjusted EBITDA to the most directly comparable GAAP measure in
accordance with SEC Regulation G follows, with amounts in
thousands:
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
Sept 30, |
|
Sept 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
|
|
46,095 |
|
|
46,922 |
|
|
147,032 |
|
|
101,288 |
|
Less: Income (loss) attributable to non-controlling interest |
|
|
(232 |
) |
|
(196 |
) |
|
(489 |
) |
|
(515 |
) |
(Loss) Income
attributable to parent |
|
|
45,863 |
|
|
46,726 |
|
|
146,543 |
|
|
100,773 |
|
Foreign currency transactions losses (gains) |
|
|
(1,142 |
) |
|
450 |
|
|
(931 |
) |
|
856 |
|
Provision for bad debt |
|
|
638 |
|
|
(7 |
) |
|
2,537 |
|
|
543 |
|
Non-Recurring expenses (non-recurring professional fees, capital
market fees, other non-core ítems) |
|
|
1,800 |
|
|
545 |
|
|
5,599 |
|
|
4,804 |
|
Joint Venture VA (Saint Gobain) adjustments |
|
|
(234 |
) |
|
771 |
|
|
158 |
|
|
1,743 |
|
Tax impact of adjustments at statutory rate |
|
|
(340 |
) |
|
(528 |
) |
|
(2,356 |
) |
|
(2,384 |
) |
Adjusted net (loss)
income |
|
|
46,585 |
|
|
47,957 |
|
|
151,550 |
|
|
106,335 |
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share |
|
|
0.97 |
|
|
0.98 |
|
|
3.09 |
|
|
2.12 |
|
Diluted income (loss) per share |
|
|
0.97 |
|
|
0.98 |
|
|
3.09 |
|
|
2.12 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted net income (loss) per share |
|
|
0.98 |
|
|
1.01 |
|
|
3.18 |
|
|
2.23 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Common Shares Outstanding in thousands |
|
|
47,599 |
|
|
47,675 |
|
|
47,649 |
|
|
47,675 |
|
Basic weighted average common shares outstanding in thousands |
|
|
47,599 |
|
|
47,675 |
|
|
47,649 |
|
|
47,675 |
|
Diluted weighted average common shares outstanding in
thousands |
|
|
47,599 |
|
|
47,675 |
|
|
47,649 |
|
|
47,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
Sept 30, |
|
Sept 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income |
|
|
46,095 |
|
|
46,922 |
|
|
147,032 |
|
|
101,288 |
|
Less: Income (loss) attributable to non-controlling interest |
|
|
(232 |
) |
|
(196 |
) |
|
(489 |
) |
|
(515 |
) |
(Loss) Income
attributable to parent |
|
|
45,863 |
|
|
46,726 |
|
|
146,543 |
|
|
100,773 |
|
Interest expense and deferred cost of financing |
|
|
2,325 |
|
|
2,249 |
|
|
6,919 |
|
|
5,432 |
|
Income tax (benefit) provision |
|
|
15,447 |
|
|
22,966 |
|
|
63,366 |
|
|
48,216 |
|
Depreciation & amortization |
|
|
5,927 |
|
|
4,627 |
|
|
15,841 |
|
|
15,089 |
|
Foreign currency transactions losses (gains) |
|
|
(1,142 |
) |
|
450 |
|
|
(931 |
) |
|
856 |
|
Provision for bad debt |
|
|
638 |
|
|
(7 |
) |
|
2,537 |
|
|
543 |
|
Non-Recurring expenses (non-recurring professional fees, capital
market fees, other non-core ítems) |
|
|
1,800 |
|
|
545 |
|
|
5,599 |
|
|
4,804 |
|
Joint Venture VA (Saint Gobain) EBITDA adjustments |
|
|
436 |
|
|
948 |
|
|
2,264 |
|
|
2,709 |
|
Adjusted EBITDA |
|
|
71,294 |
|
|
78,504 |
|
|
242,138 |
|
|
178,422 |
|
Tecnoglass (NYSE:TGLS)
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