- Total Revenues Increase 3.1% to a
Record $314.5 Million for Full Year 2017 -
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, 2017.
José Manuel Daes, Chief Executive Officer of
Tecnoglass, commented, "We closed 2017 with our 12th straight
quarter of year-over-year revenue growth, representing continued
expansion and market share gains in the U.S., despite approximately
$3 million of invoicing pushed into 2018 due to Hurricane Irma.
While Colombia’s revenues remained pressured year-over-year as a
result of previously discussed macroeconomic factors, we are
beginning to turn the corner with fourth quarter revenue up 36.8%
in that market compared to the third quarter 2017 and a solid pace
of activity to start the new year. Into 2018, we are encouraged by
a record backlog of $499 million, including a range of diverse
projects that position us to further expand in the U.S. and
capitalize on significant pent-up demand in Colombia. Additionally,
activity in other Latin American markets is improving, where we are
exceptionally situated to quote and bid on additional projects. In
single family residential, we delivered on our $10 million
sales target in 2017, which we anticipate to ramp to a range of $20
to $25 million in 2018, given strong interest in our new products.
Overall, we are pleased with the strength of our industry-leading
margin business and look forward in 2018 to grow revenue and
Adjusted EBITDA, while generating additional cash flow.”
Christian Daes, Chief Operating Officer of
Tecnoglass, added, “Our quoting and bidding activity strengthened
each quarter on a sequential basis through 2017, which placed us on
more firm footing at year end. During 2017, we also took a number
of steps to enhance our competitive advantages and improve our
ability to generate attractive returns on higher expected revenues.
We implemented lean initiatives, eliminated waste and reduced fixed
costs, which have already resulted in stronger operational
performance in the second half 2017 compared to the first half
2017. We also completed two phases of our solar energy conversion
which are now driving incremental energy savings. In residential,
we introduced new high-end products which will allow us to further
diversify our revenue stream going forward. We are committed to
positioning our company for future success and excited to drive
improved performance across our business in 2018.”
__________________________________________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, and
other non recurring items as reconciled in the table below.Adjusted
net income is estimated as net income (loss) attributable to parent
(+) income gain/losses on change in fair value of warrants and
earnouts, Fx exchange gain/losses, non-core items and tax impact of
adjustments at statutory rate, as reconciled in the table
below.
Fourth Quarter 2017 Results
Total revenues for the fourth quarter 2017
increased 5.0% to $84.3 million compared to $80.3 million in the
prior year quarter. U.S. revenues grew 24.6% to $63.8 million
compared to $51.2 million in the prior year quarter, primarily due
to the acquisition of GM&P and stronger organic shipments. The
company estimates the impact of Hurricane Irma was unfavorable to
revenues by approximately $3.0 million in the fourth quarter 2017.
Colombia´s revenue, a majority of which is represented by long-term
contracts priced in Colombian Pesos (COP), was $18.2 million
compared to $25.4 million in the prior year quarter. The decrease
was primarily due to a continuation of delayed activity mainly
related to macro factors in connection with the structural tax
reform put into effect at the beginning of 2017 and a slowdown in
commercial construction following several quarters of elevated
interest rates and inflation starting in late 2016. Colombian
interest rates and inflation have since normalized, and as of
February 2018 were down approximately 320 and 520 basis points
respectively, since their most recent peaks during the second half
of 2016. This correction has led the way to a resurgence in
quoting activity and a sequential increase in Colombia’s fourth
quarter 2017 revenue of 36.8% compared to the third quarter of
2017, with good momentum continuing into the first quarter 2018.
The foreign currency impact to total and reported Colombia revenues
was negligible compared to the prior year quarter and prior
quarter.
Gross profit was $27.2 million, representing a
32.3% gross margin, compared to $28.7 million, representing a 35.7%
gross margin, in the prior year quarter. The primary differences in
gross margin were associated with a higher mix of revenue from
GM&P’s engineering and installation project activity, which are
two lines of business that carry lower industry margins,
incremental depreciation and amortization resulting from the
Company's completed 2016 growth capex program and to a lesser
extent, a temporary increase in installation costs on two large
projects in the Latin American region. Operating expenses were
$16.5 million compared to $19.6 million in the prior year quarter.
As a percent of total revenue, operating expenses were 19.6%
compared to 24.4% in the prior year quarter, attributable mainly to
a reduction in one-time expenses. Excluding one-time items,
operating expenses would have been flat at 18.7% as a percentage of
total revenues compared to the prior year quarter. Operating income
was $10.7 million compared to $9.1 million in the prior year
quarter.
Net income was $1.2 million, or $0.03 per
diluted share, compared to net income of $2.9 million, or $0.09 per
diluted share in the prior year quarter. Adjusted net income1, as
reconciled in the table below, was $2.9 million, or $0.08 per
diluted share, compared to adjusted net income of $5.8 million, or
$0.17 per diluted share, in the prior year quarter. Adjusted
net (loss) income1 excludes the impact of warrants and earn out
shares liabilities, non-cash foreign exchange gains or losses,
other non-core items and the tax impact of adjustments at statutory
rates, to better reflect core financial performance.
Adjusted EBITDA1, as reconciled in the table
below, was $17.2 million, compared to $19.3 million in the prior
year quarter, primarily attributable to lower gross profit as
discussed above.
Full Year 2017 Results
Total revenues for the full year 2017 increased
3.1% to $314.5 million compared to $305.0 million in the prior
year. Total revenues increased 2.4% on a constant currency basis,
excluding a $2.1 million impact from favorable foreign currency
translation in Peso denominated sales in the full year 2017.
Operating income was $34.4 million compared to
$47.8 million in the prior year. Net income was $5.8 million, or
$0.16 per diluted share, compared to net income of $23.2 million,
or $0.72 per diluted share in the prior year. Adjusted net income1
was $11.4 million, or $0.32 per diluted share, compared to $23.4
million, or $0.72 per diluted share, in the prior year.
Adjusted EBITDA was $62.0 million compared to $72.0 million in the
prior year.
For the full year 2017, the Company generated
higher cash flow from operations of $14.2 million, up $17.3 million
compared to the prior year, primarily as a result of improved
working capital management. During 2017, the Company incurred $7.0
million of cash capital expenditures, compared to $22.9 million in
the prior year, with the reduction attributable to the
conclusion of the Company’s plant expansion phase in 2016.
Removal of Material Weakness Reporting
Condition
During 2017, the Company continued to strengthen
its financial and operational systems. As part of its SOX Section
404 processes, the company has confirmed the remediation of its
sole remaining material weakness, which related to entity level
controls. Furthermore, the Company concluded the design,
implementation and testing of SOX controls and obtained a favorable
attestation on full SOX compliance by its external auditors.
Dividend
The Company declared a regular quarterly
dividend of $0.14 per share for the fourth quarter 2017, which was
paid on January 26, 2018 to shareholders of record as of the close
of business on December 29, 2017, in the form of cash or ordinary
shares, based on the option of shareholders. Approximately 85% of
dividends were paid in ordinary shares.
Full Year 2018 Outlook
For the full year 2018, the Company expects to
see growth in commercial construction markets and additional market
share gains in the U.S., Colombian and other Latin American
markets. In 2018, the Company anticipates revenues to grow to a
range of $345.0 to $365.0 million, with higher year-over-year
growth in the first half 2018 based on anticipated timing of
invoicing in 2018 compared to 2017. The Company expects Adjusted
EBITDA in 2018 to be in the range of $71.0 million to $81.0
million, rising approximately 22% year over year at the mid-point
of the range, mainly as a result of higher revenues and greater
operational efficiencies.
Based on preliminary results during the first
two months of 2018, the Company expects both revenues and adjusted
EBITDA to grow within a range of 28% to 32% year-over-year in the
first quarter 2018.
Conference
Call
Management will host a conference call on
Wednesday, March 14, 2017 at 10:00 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 (844) 512-2921
(Domestic) or (412) 317-6671 (International) and entering pass
code: 13676180 through June 14,
2018.
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 2.7 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
over 900 customers in North, Central and South America, with the
United States accounting for more than 70% of revenues. Tecnoglass'
tailored, high‐end products are found on some of the world’s most
distinctive properties, including the El Dorado Airport (Bogota),
50 United Nations Plaza (New York), Trump Plaza (Panama), Icon Bay
(Miami), and Salesforce Tower (San Francisco). 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 2017 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 net income and Adjusted EBITDA
in both periods are reconciled in the table below.
Investor
Relations:
Santiago
GiraldoCFO305-503-9062investorrelations@tecnoglass.com
|
Tecnoglass Inc. and Subsidiaries |
Consolidated Balance Sheets |
(In thousands, except share and per share
data) |
(Audited) |
|
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
40,923 |
|
|
|
$ |
26,918 |
|
|
Investments |
|
|
1,680 |
|
|
|
|
1,537 |
|
|
Trade accounts
receivable, net |
|
|
110,464 |
|
|
|
|
92,297 |
|
|
Unbilled receivables on
uncompleted contracts |
|
|
9,996 |
|
|
|
|
6,625 |
|
|
Due from related
parties |
|
|
8,500 |
|
|
|
|
10,995 |
|
|
Other assets |
|
|
17,514 |
|
|
|
|
16,089 |
|
|
Inventories |
|
|
71,656 |
|
|
|
|
55,092 |
|
|
Prepaid expenses |
|
|
1,165 |
|
|
|
|
1,183 |
|
|
Total current
assets |
|
|
261,898 |
|
|
|
|
210,736 |
|
|
|
|
|
|
|
|
|
|
|
Long term assets: |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
168,701 |
|
|
|
|
170,797 |
|
|
Intangible assets |
|
|
11,517 |
|
|
|
|
4,555 |
|
|
Goodwill |
|
|
23,130 |
|
|
|
|
1,330 |
|
|
Other long term
assets |
|
|
2,754 |
|
|
|
|
7,312 |
|
|
Total long term
assets |
|
|
206,102 |
|
|
|
|
183,994 |
|
|
Total assets |
|
$ |
468,000 |
|
|
|
$ |
394,730 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt |
|
$ |
3,260 |
|
|
|
$ |
2,651 |
|
|
Trade accounts
payable |
|
|
55,182 |
|
|
|
|
38,981 |
|
|
Accrued interest
expense |
|
|
7,392 |
|
|
|
|
3,565 |
|
|
Dividend Payable |
|
|
585 |
|
|
|
|
3,486 |
|
|
Due to related
parties |
|
|
975 |
|
|
|
|
3,668 |
|
|
Payable associated to
GM&P acquisition |
|
|
29,000 |
|
|
|
|
- |
|
|
Taxes payable |
|
|
12,076 |
|
|
|
|
16,845 |
|
|
Labor liabilities |
|
|
1,550 |
|
|
|
|
1,410 |
|
|
Current portion of
customer advances on uncompleted contracts |
|
|
11,429 |
|
|
|
|
7,780 |
|
|
Total current
liabilities |
|
|
121,449 |
|
|
|
|
78,386 |
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes |
|
|
2,317 |
|
|
|
|
3,523 |
|
|
Customer advances on
uncompleted contracts |
|
|
1,571 |
|
|
|
|
2,310 |
|
|
Long-term debt |
|
|
220,998 |
|
|
|
|
196,946 |
|
|
Total long term
liabilities |
|
|
224,886 |
|
|
|
|
202,779 |
|
|
Total liabilities |
|
$ |
346,335 |
|
|
|
$ |
281,165 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
Preferred shares,
$0.0001 par value, 1,000,000 shares authorized, 0 shares issued and
outstanding at December 31, 2016 and 2015 |
|
$ |
- |
|
|
|
$ |
- |
|
|
Ordinary shares,
$0.0001 par value, 100,000,000 shares authorized, 34,836,575 and
33,172,144 shares issued and outstanding at December 31, 2017 and
2016, respectively |
|
|
3 |
|
|
|
|
3 |
|
|
Legal reserves |
|
|
1,367 |
|
|
|
|
1,367 |
|
|
Additional paid
capital |
|
|
125,317 |
|
|
|
|
114,847 |
|
|
Retained earnings |
|
|
22,212 |
|
|
|
|
26,548 |
|
|
Accumulated other
comprehensive income (loss) |
|
|
(28,587 |
) |
|
|
|
(29,200 |
) |
|
Shareholders’ equity
attributable to controlling interest |
|
|
120,248 |
|
|
|
|
113,565 |
|
|
Shareholders’ equity
attributable to non-controlling interest |
|
|
1,417 |
|
|
|
|
- |
|
|
Total shareholders’
equity |
|
|
121,665 |
|
|
|
|
113,565 |
|
|
Total liabilities and
shareholders’ equity |
|
$ |
468,000 |
|
|
|
$ |
394,730 |
|
|
|
Tecnoglass Inc. and Subsidiaries |
Consolidated Statements of Operations and
Comprehensive Income |
(In thousands, except share and per share
data) |
(Audited) |
|
|
|
Three months ended |
|
Twelve months ended |
|
|
2017 |
|
|
2016 |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers |
|
$ |
82,930 |
|
|
|
$ |
77,961 |
|
|
$ |
309,375 |
|
|
|
$ |
295,274 |
|
Related
Parties |
|
|
1,349 |
|
|
|
|
2,314 |
|
|
|
5,081 |
|
|
|
|
9,742 |
|
Total Operating
Revenue |
|
|
84,279 |
|
|
|
|
80,275 |
|
|
|
314,456 |
|
|
|
|
305,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
57,077 |
|
|
|
|
51,603 |
|
|
|
215,274 |
|
|
|
|
192,369 |
|
Gross profit |
|
|
27,202 |
|
|
|
|
28,672 |
|
|
|
99,182 |
|
|
|
|
112,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
8,046 |
|
|
|
|
8,171 |
|
|
|
30,656 |
|
|
|
|
32,267 |
|
Provision for bad debts
and write offs |
|
|
389 |
|
|
|
|
3,794 |
|
|
|
3,128 |
|
|
|
|
4,686 |
|
General and
administration |
|
|
8,082 |
|
|
|
|
7,624 |
|
|
|
31,034 |
|
|
|
|
27,846 |
|
Operating expenses |
|
|
16,517 |
|
|
|
|
19,589 |
|
|
|
64,818 |
|
|
|
|
64,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
10,685 |
|
|
|
|
9,083 |
|
|
|
34,364 |
|
|
|
|
47,848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of
warrant liability |
|
|
- |
|
|
|
|
(3,628 |
) |
|
|
- |
|
|
|
|
776 |
|
Change in fair value of
earnout shares liability |
|
|
- |
|
|
|
|
4,961 |
|
|
|
- |
|
|
|
|
4,674 |
|
Non-operating income,
net |
|
|
585 |
|
|
|
|
1,323 |
|
|
|
3,190 |
|
|
|
|
4,155 |
|
Foreign currency
transaction gains (losses) |
|
|
(2,134 |
) |
|
|
|
(1,555 |
) |
|
|
(3,028 |
) |
|
|
|
(1,387 |
) |
Loss on extinguishment
of debt |
|
|
12 |
|
|
|
|
- |
|
|
|
(3,136 |
) |
|
|
|
- |
|
Interest expense |
|
|
(4,982 |
) |
|
|
|
(4,677 |
) |
|
|
(19,872 |
) |
|
|
|
(16,814 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes |
|
|
4,166 |
|
|
|
|
5,507 |
|
|
|
11,518 |
|
|
|
|
39,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
|
2,997 |
|
|
|
|
2,579 |
|
|
|
5,793 |
|
|
|
|
16,072 |
|
Net income (loss) |
|
$ |
1,169 |
|
|
|
$ |
2,928 |
|
|
$ |
5,725 |
|
|
|
$ |
23,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interest |
|
|
(103 |
) |
|
|
|
- |
|
|
|
(276 |
) |
|
|
|
- |
|
Net income (loss)
attributable to parent |
|
|
1,066 |
|
|
|
|
2,928 |
|
|
|
5,449 |
|
|
|
|
23,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
1,169 |
|
|
|
|
2,928 |
|
|
$ |
5,725 |
|
|
|
|
23,180 |
|
Foreign currency
translation adjustments |
|
|
(2,165 |
) |
|
|
|
(6,721 |
) |
|
|
549 |
|
|
|
|
1,969 |
|
Total comprehensive
income (loss) |
|
$ |
(996 |
) |
|
|
$ |
(3,793 |
) |
|
$ |
6,274 |
|
|
|
$ |
25,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share |
|
$ |
0.03 |
|
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
|
$ |
0.75 |
|
Diluted income (loss)
per share |
|
$ |
0.03 |
|
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
|
$ |
0.72 |
|
Basic weighted average
common shares outstanding |
|
|
34,834,653 |
|
|
|
$ |
32,706,055 |
|
|
|
34,822,313 |
|
|
|
$ |
30,850,866 |
|
Diluted weighted
average common shares outstanding |
|
|
35,333,733 |
|
|
|
$ |
34,227,149 |
|
|
|
35,321,393 |
|
|
|
$ |
32,371,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tecnoglass Inc. and Subsidiaries |
Consolidated Statements of Cash
Flows |
(In thousands) |
(Audited) |
|
|
|
Years Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
5,725 |
|
|
|
$ |
23,180 |
|
|
Adjustments to
reconcile net income (loss) to net cash (used in) provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
20,969 |
|
|
|
|
15,522 |
|
|
Provision for bad
debts |
|
|
3,128 |
|
|
|
|
4,686 |
|
|
Provision for obsolete
inventory |
|
|
80 |
|
|
|
|
238 |
|
|
Other fair value
adjustments, net |
|
|
(72 |
) |
|
|
|
(54 |
) |
|
(Gain) Loss on
disposition of assets |
|
|
17 |
|
|
|
|
(477 |
) |
|
Change in fair value of
earnout share liability |
|
|
- |
|
|
|
|
(4,674 |
) |
|
Change in fair value of
warrant liability |
|
|
- |
|
|
|
|
(776 |
) |
|
Director Stock
compensation |
|
|
284 |
|
|
|
|
300 |
|
|
Deferred income
taxes |
|
|
(6,137 |
) |
|
|
|
(247 |
) |
|
Extinguishment of
Debt |
|
|
2,558 |
|
|
|
|
- |
|
|
Amortization of
deferred financing costs |
|
|
1,204 |
|
|
|
|
- |
|
|
Changes in operating assets and liabilities,
net of effects from acquisitions: |
|
|
|
|
|
Trade Accounts
Receivable |
|
|
2,497 |
|
|
|
|
(25,979 |
) |
|
Inventories |
|
|
(16,447 |
) |
|
|
|
(4,305 |
) |
|
Prepaid expenses |
|
|
22 |
|
|
|
|
799 |
|
|
Other assets |
|
|
(2,004 |
) |
|
|
|
1,343 |
|
|
Unbilled
receivables |
|
|
(10,653 |
) |
|
|
|
(7,768 |
) |
|
Trade accounts
payable |
|
|
13,055 |
|
|
|
|
(985 |
) |
|
Accrued interest
expense |
|
|
3,769 |
|
|
|
|
2,559 |
|
|
Taxes payable |
|
|
(8,542 |
) |
|
|
|
(2,299 |
) |
|
Labor liabilities |
|
|
134 |
|
|
|
|
439 |
|
|
Related parties |
|
|
1,815 |
|
|
|
|
2,259 |
|
|
Advances from
customers |
|
|
2,807 |
|
|
|
|
(6,846 |
) |
|
CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES |
|
$ |
14,209 |
|
|
|
$ |
(3,085 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Acquisition of property
and equipment |
|
|
(7,027 |
) |
|
|
|
(22,906 |
) |
|
Proceeds from sale of
investments |
|
|
571 |
|
|
|
|
24,486 |
|
|
Proceeds from sale of
property and equipment |
|
|
- |
|
|
|
|
686 |
|
|
Acquisition of
businesses and intangible assets |
|
|
(7,873 |
) |
|
|
|
- |
|
|
Purchase of
investments |
|
|
(600 |
) |
|
|
|
(26,975 |
) |
|
CASH USED IN INVESTING
ACTIVITIES |
|
$ |
(14,929 |
) |
|
|
$ |
(24,709 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceed from bond
issuance |
|
|
201,801 |
|
|
|
|
- |
|
|
Repayments of debt and
capital leases |
|
|
(205,330 |
) |
|
|
|
(163,126 |
) |
|
Proceeds from debt |
|
|
20,761 |
|
|
|
|
196,468 |
|
|
Proceeds from the
exercise of unit purchase options |
|
|
- |
|
|
|
|
404 |
|
|
Dividends paid |
|
|
(2,471 |
) |
|
|
|
(741 |
) |
|
Subsidiary
distributions prior to acquisition |
|
|
- |
|
|
|
|
(2,263 |
) |
|
Proceeds from the
exercise of warrants |
|
|
- |
|
|
|
|
800 |
|
|
CASH PROVIDED BY
FINANCING ACTIVITIES |
|
$ |
14,761 |
|
|
|
$ |
31,542 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(36 |
) |
|
|
|
499 |
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH |
|
|
14,005 |
|
|
|
|
4,247 |
|
|
CASH - Beginning of
year |
|
|
26,918 |
|
|
|
|
22,671 |
|
|
CASH - End of year |
|
$ |
40,923 |
|
|
|
$ |
26,918 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the
year for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
15,774 |
|
|
|
$ |
8,696 |
|
|
Taxes |
|
$ |
17,834 |
|
|
|
$ |
25,825 |
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Assets acquired under
capital lease, financial obligations or credit |
|
$ |
1,751 |
|
|
|
$ |
19,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Region |
(Amounts in thousands) |
(Audited) |
|
|
|
Three months ended |
|
|
Twelve months ended |
|
|
December 31, |
December 31, |
|
|
2017 |
|
|
2016 |
|
|
% Of Change |
|
|
2017 |
|
|
2016 |
|
|
% Of Change |
Colombia |
|
$ |
18,247 |
|
|
$ |
25,420 |
|
|
% |
-28.2 |
% |
|
|
$ |
63,539 |
|
|
$ |
98,758 |
|
|
% |
-35.7 |
% |
United States |
|
|
63,762 |
|
|
|
51,174 |
|
|
|
24.6 |
% |
|
|
|
238,529 |
|
|
|
189,985 |
|
|
|
25.6 |
% |
Panama |
|
|
1,072 |
|
|
|
1,923 |
|
|
|
-44.3 |
% |
|
|
|
4,259 |
|
|
|
9,444 |
|
|
|
-54.9 |
% |
Other |
|
|
1,198 |
|
|
|
1,758 |
|
|
|
-31.9 |
% |
|
|
|
8,129 |
|
|
|
6,829 |
|
|
|
19.0 |
% |
Total Revenues |
|
$ |
84,279 |
|
|
$ |
80,275 |
|
|
% |
5.0 |
% |
|
|
$ |
314,456 |
|
|
$ |
305,016 |
|
|
% |
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
December 31, |
|
|
|
December 31, |
|
2017 |
|
|
2016 |
|
% Change |
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
with Foreign Currency Held Neutral |
$ |
84,110 |
|
$ |
80,275 |
|
4.8 |
% |
|
|
|
$ |
312,381 |
|
$ |
305,016 |
|
2.4 |
% |
Impact of changes in
foreign currency |
|
169 |
|
|
- |
|
0.2 |
% |
|
|
|
|
2,075 |
|
|
- |
|
0.7 |
% |
Total Revenues,
As Reported |
$ |
84,279 |
|
$ |
80,275 |
|
5.0 |
% |
|
|
|
$ |
314,456 |
|
$ |
305,016 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. Likewise, currency impacts
on total revenues for the current year have been derived by
translating current year revenues at the prevailing average foreign
currency rates during the prior year, 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 EBITDA and Adjusted
net (loss) income to the most directly comparable GAAP measure in
accordance with SEC Regulation G follows, with amounts in
thousands:
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) |
|
1,169 |
|
|
2,928 |
|
|
5,725 |
|
|
23,180 |
|
Less: net
income attributable to non-controlling interest |
|
(103 |
) |
|
- |
|
|
(276 |
) |
|
- |
|
Net Income
(loss) attributable to parent |
|
1,066 |
|
|
2,928 |
|
|
5,449 |
|
|
23,180 |
|
Interest
expense and amortization of deferred financing costs |
|
4,982 |
|
|
4,677 |
|
|
19,872 |
|
|
16,814 |
|
Income
tax (benefit) provision |
|
2,997 |
|
|
2,579 |
|
|
5,793 |
|
|
16,072 |
|
Depreciation & amortization |
|
5,277 |
|
|
4,368 |
|
|
20,969 |
|
|
15,522 |
|
Foreign
currency transactions losses (gains) |
|
2,134 |
|
|
1,555 |
|
|
3,028 |
|
|
1,387 |
|
Non
Recurring expenses (extinguishment of debt, bond issuance costs,
provision for bad debt and other) |
|
668 |
|
|
4,509 |
|
|
6,544 |
|
|
4,509 |
|
Director
Stock compensation and provision for obsolete inventory |
|
71 |
|
|
- |
|
|
364 |
|
|
- |
|
Gain on
change in fair value of earnout shares liabilities |
|
- |
|
|
(270 |
) |
|
- |
|
|
(4,674 |
) |
Gain on
change in fair value of warrant liability |
|
- |
|
|
(1,063 |
) |
|
- |
|
|
(776 |
) |
Adjusted
EBITDA |
|
17,195 |
|
|
19,283 |
|
|
62,019 |
|
|
72,034 |
|
|
|
Three months ended |
|
Twelve months ended |
|
|
December 31, |
|
December 31, |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Net Income
(loss) |
|
1,169 |
|
|
2,928 |
|
|
5,725 |
|
|
23,180 |
|
Less: net
income attributable to non-controlling interest |
|
(103 |
) |
|
- |
|
|
(276 |
) |
|
- |
|
Net Income
(loss) attributable to parent |
|
1,066 |
|
|
2,928 |
|
|
5,449 |
|
|
23,180 |
|
Foreign
currency transactions losses (gains) |
|
2,134 |
|
|
1,555 |
|
|
3,028 |
|
|
1,387 |
|
Gain on
change in fair value of earnout shares liabilities |
|
- |
|
|
(270 |
) |
|
- |
|
|
(4,674 |
) |
Gain on
change in fair value of warrant liability |
|
- |
|
|
(1,063 |
) |
|
- |
|
|
(776 |
) |
Amortization of deferred financing costs |
|
338 |
|
|
- |
|
|
338 |
|
|
- |
|
Non
Recurring expenses (extinguishment of debt, bond issuance costs,
provision for bad debt and other) |
|
668 |
|
|
4,509 |
|
|
6,544 |
|
|
4,509 |
|
Tax
impact of adjustments at statutory rate |
|
(1,256 |
) |
|
(1,892 |
) |
|
(3,964 |
) |
|
(178 |
) |
Adjusted net
(loss) income |
|
2,950 |
|
|
5,766 |
|
|
11,395 |
|
|
23,447 |
|
|
|
|
|
|
|
|
|
|
Basic
income (loss) per share |
|
0.03 |
|
|
0.09 |
|
|
0.16 |
|
|
0.75 |
|
Diluted
income (loss) per share |
|
0.03 |
|
|
0.09 |
|
|
0.16 |
|
|
0.72 |
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted net
(loss) income per share |
|
0.08 |
|
|
0.17 |
|
|
0.32 |
|
|
0.72 |
|
|
|
|
|
|
|
|
|
|
Diluted
Weighted Average Common Shares Outstanding in
thousands |
|
35,334 |
|
|
34,227 |
|
|
35,321 |
|
|
32,372 |
|
Basic
weighted average common shares outstanding in thousands |
|
34,835 |
|
|
32,706 |
|
|
34,822 |
|
|
30,851 |
|
Diluted
weighted average common shares outstanding in thousands |
|
35,334 |
|
|
34,227 |
|
|
35,321 |
|
|
32,372 |
|
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