BARRANQUILLA, COLOMBIA-(Marketwired - Mar 10, 2017) -
Tecnoglass, Inc. (NASDAQ: TGLS)- Total Revenues Up 26% to a Record
$305.0 Million for Full Year 2016 -
- Net Income Increased to $23.2
Million for Full Year 2016 -
- Adjusted EBITDA1 Grew 26.1% to a
Record $72.0 Million for Full Year 2016 -
- Backlog Expands 6%
Year-over-Year to $396 Million -Fourth Quarter 2016 Highlights as
Compared to Fourth Quarter 2015Total revenues increased 21.1% to
$80.3 million; up 20.6% on a constant currency basis Net income
increased to $2.9 million Adjusted EBITDA1 grew 36.7% to $19.3
million Completed acquisition of E.S. Windows, LLC ("ESWindows"),
the largest importer and reseller of Tecnoglass products in the
United States After the quarter end, acquired Giovanni Monti and
Partners Consulting and Glazing Contractors, Inc. ("GM&P"), a
Florida-based commercial consulting, glazing and engineering
company, specializing in windows and doors for commercial
contractors After the quarter end, issued $210 million of 5-year
senior unsecured notes at a fixed rate of 8.20% and repaid
approximately $185 million of outstanding indebtedness, which
reduced the Company's average cost of borrowing by 70 basis points
and eliminated capital amortization payments formerly associated
with prior lines of credit which were repaid in full Tecnoglass,
Inc. (NASDAQ: TGLS) ("Tecnoglass" or the "Company"), a leading
manufacturer of architectural glass, windows, and associated
aluminum products for the global commercial and residential
construction industries, today reported financial results for the
fourth quarter and full year ended December 31, 2016José Manuel
Daes, Chief Executive Officer of Tecnoglass, commented, "2016 was a
transformative year for our Company, in which we grew total
revenues to a record $305 million, commenced a $0.50 annualized
dividend, completed our warrant exchange offer, strengthened our
financial reporting and acquired our largest importer in the US on
very favorable terms to Tecnoglass. We believe these collective
actions, among others, have significantly improved our alignment
with shareholders and reinforced our commitment to driving
additional value through our local leadership positions to produce
outpaced market growth on our highly efficient, low-cost
operations."José Manuel Daes continued, "Overall commercial
construction activity was strong throughout the quarter resulting
in a healthy backlog at year end up 6% to $396 million, and up 28%
to $479 million on a pro forma basis including the GM&P
acquisition. Fourth quarter revenues up 20.6% year-over-year were
stronger than expected, driven by a significant increase in demand
for glass curtains and walls in our US markets. As a result of this
robust demand, we were very pleased to grow adjusted EBITDA by an
even more impressive 36.7% in the fourth quarter. As we move
forward into 2017, we are well-situated to deliver another year of
double-digit growth in sales and Adjusted EBITDA while investing
prudently to generate attractive returns." Christian Daes, Chief
Operating Officer of Tecnoglass, added, "Since the beginning of
2016, we have taken significant steps to diversify our business,
strengthen our vertical integration and improve our capital
structure. During 2016, we increased sales by 31% in the US by
winning new customers, entering new markets and introducing new
cutting edge products. As a result, we sourced a higher mix of
total revenues from the US, and increasingly from markets beyond
South Florida. This growth opportunity remains immense and is
further reinforced by our expectation for strong US-Colombia free
trade relations to persist, especially given the large ongoing
trade deficit on the Colombian side. To that end, our acquisition
of GM&P in March 2017 marked our second acquisition in the US
since December, which augmented our vertically integrated
operations, enhanced our distribution capabilities, and provided us
with a unique opportunity to directly install value-add products in
select projects. We are confident in the trajectory of our business
and look forward to executing on our multi-year project pipeline
while actively pursuing additional opportunities to grow our
business in all markets."Fourth Quarter 2016 Results
Effective with
fourth quarter results, the Company's full year 2016 and 2015
financial results have been retroactively adjusted for the
ESWindows acquisition, completed under the common control method
under U.S. GAAP, as though the acquisition was completed on January
1, 2015. Total revenues for the fourth quarter 2016 increased 21.1%
to $80.3 million compared to $66.3 million in the prior year
quarter. Total revenues increased 20.6% on a constant currency
basis, excluding a $0.4 million benefit from favorable foreign
currency in Peso denominated sales in the fourth quarter 2016. US
revenues rose 49.4% to $51.2 million compared to $34.3 million in
the prior year quarter. Colombia revenues, a majority of which are
represented by long-term contracts priced in Colombian Pesos (COP),
increased 2.4% on a local currency basis in the fourth quarter
2016. The favorable foreign currency impact this quarter resulted
in reported Colombia revenues up 4.0% to $25.4 million compared to
the prior year quarter. Gross profit was $28.7 million, compared to
$23.6 million in the prior year quarter, each representing a 35.7%
gross margin. Operating expenses were $19.6 million compared to
$13.2 million in the prior year quarter. As a percent of total
revenue, operating expenses were 24.4% compared to 19.9% in the
prior year quarter. The increase in the fourth quarter 2016 was
mainly attributable to $4.5 million of one-time expenses, including
a write-off of unbilled receivables of $3.2 million related to a
partial change in scope of a certain project, with the remainder
attributable to a one-time write-off in accounts receivable, and
professional and consulting fees associated with the ESWindows
acquisition. Excluding these one-time items, operating expenses
would have been $15.0 million, or 18.7% as a percentage of total
revenues. Operating income was $9.1 million compared to $10.4
million in the prior year quarter. Net income gain was $2.9
million, or a $0.09 per diluted share, compared to a net loss of
$2.0 million, or a $0.07 loss per diluted share in the prior year
quarter. Adjusted net income1, excluding the impact of warrants and
earn-out shares as reconciled in the table below, was $4.9 million,
or $0.15 per diluted share, compared to $2.1 million, or $0.08 per
diluted share, in the prior year quarter. This difference in
adjusted net income1 was primarily due to higher interest expense
associated with the incremental borrowings to support the Company´s
completion of its growth capex phase. Adjusted EBITDA1 increased
36.7% to $19.3 million compared to $14.1 million in the prior year
quarter. Adjusted EBITDA1 excludes the impact of warrants, earn-out
shares and foreign exchange gains and losses as reconciled in the
table below. Full Year 2016 Results
Total revenues for the full
year 2016 increased 25.9% to $305.0 million compared to $242.2
million in the prior year. Total revenues increased 30.5% on a
constant currency basis, excluding an $11.1 million impact from
unfavorable foreign currency translation in Peso denominated sales
in the full year 2016.Operating income grew to $47.8 million
compared to $39.6 million in the prior year. Net income was $23.2
million, or a $0.77 per diluted share, compared to a net loss of
$11.0 million, or a $0.42 loss per diluted share in the prior year.
Adjusted net income1 was $21.1million, or $0.70 per diluted share,
compared to $24.7 million, or $0.94 per diluted share, in the prior
year. Adjusted EBITDA increased 26.1% to $72.0 million compared to
$57.1 million in the prior year. Acquisitions
In December 2016, the
Company acquired ESWindows, the largest importer and reseller of
Tecnoglass products in the United States for a total purchase price
of $13.0 million. ESWindows further enhances the Company's
vertically integrated operations and allows for more efficient
service to the Company's rapidly expanding U.S. customer base.
After the quarter end, in March 2017 the Company acquired GM&P,
a Florida-based commercial consulting, glazing and engineering
company, specializing in windows and doors for commercial
contractors. GM&P has many years of experience in the design
and installation of various building enclosure systems, such as
glass curtain and window walls. GM&P services projects of all
sizes throughout the United States, mainly serving architects,
general contractors and developers. As one of the Company´s largest
clients, the acquisition of GM&P provides an attractive
opportunity for Tecnoglass to continue its long-term strategy to
vertically integrate and streamline its distribution logistics. In
addition, GM&P gives Tecnoglass the ability to complete
fabrication work internally in the U.S when economically
advantageous, providing added operational diversification. The
purchase price for the acquisition was $35 million. For the full
year ended December 31, 2016, GM&P had revenue of approximately
$137 million, which after giving effect to the elimination of
inter-company revenues with Tecnoglass, would have contributed
approximately $50 million of net revenue to the Company on a pro
forma consolidated basis for that period.Dividend
In December 2016,
the Company's Board of Directors authorized the payment of the
Company's regular quarterly dividend of $0.125 per share for the
fourth quarter 2016. The dividend was paid on February 1, 2017, to
shareholders of record at the close of business on December 29,
2016, in the form of cash or ordinary shares, based on the option
of shareholders. Full Year 2017 Outlook
For the full year 2017,
the company expects to continue its double-digit revenue growth
based on improving commercial construction markets and additional
market share gains in the U.S, Colombian and Latin American
markets. In 2017, the Company anticipates revenues to grow to a
range of $360 to $390 million, which it expects to be largely
weighted towards the back half of the year, starting with a
seasonally lower first quarter 2017. The Company expects Adjusted
EBITDA to increase to a range of $82 million to $90 million, mainly
as a result of higher revenues. The full year 2017 outlook includes
the effect of fully consolidating ESWindows, along with the
contribution of GM&P as of the March 1, 2017 acquisition date.
Conference Call
Management will host a conference call on Friday,
March 10, 2017 at 9:00 a.m. eastern time (9:00 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. To participate by telephone,
please dial: (877) 705-6003 (Domestic) (201) 493-6725
(International) If you are unable to listen live, a replay of the
conference call will be archived on the website. You may also
access the conference call playback by dialing (877) 870-5176
(Domestic) or (858) 384-5517 (International) and entering pass
code: 13655560 through June 30, 2017. About Tecnoglass
Tecnoglass
Inc. is a leading manufacturer of architectural glass, windows, and
associated aluminum products for the global commercial and
residential construction industries. Tecnoglass is the #1
architectural glass transformation company in Latin America and the
second largest glass fabricator serving the United States.
Headquartered in Barranquilla, Colombia, the Company operates out
of a 2.3 million square foot vertically-integrated,
state-of-the-art manufacturing complex that provides easy access to
the Americas, the Caribbean, and the Pacific. Tecnoglass supplies
more than 800 customers in North, Central and South America, with
the United States accounting for approximately 62% of revenues in
2016. Tecnoglass' 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 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. Additionally, Tecnoglass' financial information for
2016 remains subject to completion of the Company's audit and other
financial and accounting procedures as detailed in the Company's
reports with the Securities and Exchange Commission. These results
may differ from the actual results that the Company reports
following completion of such procedures. 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 EBITDA excludes the impact of
warrants and earn-out shares and further excludes foreign exchange
gains and losses related to the effect on foreign exchange rates on
monetary balance sheet accounts, as reconciled in the table
below.PART I - FINANCIAL INFORMATION
Reconciliation of Non-GAAP Performance Measures to GAAP
Performance Measures
(Amounts 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.
Currency impacts on total revenues have been derived by
translating current period revenues at the quarter-to-date 2016
average foreign currency rates for the period ending September 30,
2015, as applicable. Reconciliation of Adjusted EBITDA, Adjusted
EBIT and Adjusted Net Income to Net Income
(In thousands, except
share and per share data)
(unaudited)Adjusted EBITDA, Adjusted EBIT
and Adjusted Net Income are not measures of financial performance
under generally accepted accounting principles ("GAAP"). Management
believes Adjusted EBITDA, Adjusted EBIT and Adjusted Net Income, 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, Adjusted EBIT and Adjusted Net 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
EBITDA, Adjusted EBIT and Adjusted Net Income to the most directly
comparable GAAP measure in accordance with SEC Regulation G
follows, with amounts in thousands:
Contact InformationInvestor Relations:
Santiago Giraldo
Deputy
CFO
305-503-9062
investorrelations@tecnoglass.com
Tecnoglass (NASDAQ:TGLS)
Historical Stock Chart
From May 2024 to Jun 2024
Tecnoglass (NASDAQ:TGLS)
Historical Stock Chart
From Jun 2023 to Jun 2024