- Raises Full Year 2018 Outlook for Total
Revenues and Adjusted EBITDA1 to a range of $360-$370 million and
$79-82 million, respectively -
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 third quarter ended
September 30, 2018.
José Manuel Daes, Chief Executive Officer of
Tecnoglass, commented, "Gross margin improved to 35.8% and Adjusted
EBITDA margin grew to 23.5% during the third quarter, further
validating our vertically-integrated model, highly-efficient
manufacturing capacity and sustainable access to talented
employees. In addition, we are carefully balancing volume and price
with a focus on margin enhancement as we continue to penetrate the
US market. In the US, we achieved our 15th straight quarter of
double-digit revenue growth year-over-year, reflecting our
commitment to expanding our customer base, geographic presence,
product portfolio and category exposure, including residential
sales up over three times. The US represented 85% of total revenues
during the quarter and is poised to remain a significant
contributor to our growth trajectory based on the attractive mix of
projects in backlog. In Colombia, while activity was soft during
the quarter, sales were up 9% through the first nine months of 2018
and we ended the quarter with a stronger backlog in that region.
Overall, we are very pleased with the continued strength of our
industry-leading margin business and look forward to delivering on
our upwardly revised outlook for full year 2018.”
Christian Daes, Chief Operating Officer of
Tecnoglass, stated, “Commercial activity in the US remains
favorable, particularly for impact-resistant windows in coastal
states and for energy-efficient architectural systems more broadly.
During the past several years we have invested heavily in R&D
to stay ahead of these evolving trends, allowing us to gain US
market share, which we expect to continue. Our recent alliance with
Schüco is another positive step, which provides us with a new
global customer while also equipping us with a new suite of
cutting-edge products to manufacture and sell through existing
distribution networks. These top line catalysts are further
supported by a more favorable pricing environment in the U.S.
resulting from production and labor cost inflation for U.S based
manufacturers. As we look forward, we are focused on continuous
improvement across all aspects of our business, and see a range of
opportunities to improve our position as a leader of high quality
architectural products and innovative solutions.
Third Quarter 2018 Results
Total revenues for the third quarter of 2018
increased 16% to $97.0 million compared to $83.4 million in the
prior year quarter. Foreign currency impacts for the quarter were
immaterial to total revenues compared to the prior year quarter.
U.S. revenues grew 20.7% to $82.2 million compared to $68.1 million
in the prior year quarter, driven by stronger residential
invoicing, continued healthy commercial activity, market share
gains and slight pricing improvement.
Colombia revenue, a majority of which is
represented by long-term contracts priced in Colombian Pesos but
indexed to the U.S. Dollar, was $12.1 million compared to $13.3
million in the prior year quarter. While the Company experienced a
tempered pace of invoicing in Colombia compared to the prior year
quarter, the Company ended the quarter with sequential backlog
growth in that region, attributable to improving bidding activity,
resulting from pent-up activity and strengthening economic
conditions.
Gross profit increased 27.6% to $34.7 million,
representing a 35.8% gross margin, compared to $27.2 million,
representing a 32.6% gross margin, in the prior year quarter. The
improvement in gross margin reflected a favorable mix of higher
margin products and slight pricing improvement on essentially
stable raw material and labor costs per unit. Operating expenses
were $19.4 million compared to $15.8 million in the prior year
quarter. As a percent of total revenues, operating expenses were
20.0% compared to 18.9% in the prior year quarter, primarily due to
higher ground transportation costs. Operating income increased
33.9% to $15.3 million compared to $11.4 million in the prior year
quarter.
Net income of $6.3 million, or $0.16 per diluted
share, compared to a net income of $6.9 million, or $0.19 per
diluted share in the prior year quarter, including a non-cash
foreign exchange loss in the third quarter of 2018 compared to a
gain in the prior year quarter. Adjusted net income1 improved to
$9.3 million, or $0.24 per diluted share, compared to adjusted net
income of $3.8 million, or $0.10 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 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, increased 29.5% to $22.8 million, compared to $17.6 million
in the prior year quarter, primarily attributable to sales growth
and higher gross profit.
Dividend
In September 2018, the Company declared a
quarterly dividend of $0.14 per share for the third quarter of
2018, which will be paid on November 19, 2018 to shareholders of
record as of the close of business on October 26, 2018.
Full Year 2018 Outlook
The Company continues to anticipate growth in
construction end markets and additional market share gains for the
full year 2018. Based on the Company’s performance through
September 2018, it now expects to generate full year 2018 revenues
in the range of $360 million to $370 million and Adjusted EBITDA in
the range of $79 million to $82 million.
Conference
Call
Management will host a conference call on
Wednesday, November 7, 2018 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. 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:
13684082.
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.
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.
Tecnoglass Inc. and
SubsidiariesConsolidated Balance
Sheets (In thousands, except share and per
share data)(Unaudited)
|
|
September 30,
2018 |
|
|
December 31,
2017 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,951 |
|
|
|
$ |
40,923 |
|
|
Investments |
|
|
1,543 |
|
|
|
|
1,680 |
|
|
Trade accounts receivable, net |
|
|
91,852 |
|
|
|
|
110,464 |
|
|
Due from related parties |
|
|
7,996 |
|
|
|
|
8,500 |
|
|
Inventories |
|
|
88,452 |
|
|
|
|
71,656 |
|
|
Unbilled receivables on uncompleted
contracts |
|
|
- |
|
|
|
|
9,996 |
|
|
Contract assets – current portion |
|
|
45,836 |
|
|
|
|
- |
|
|
Other current assets |
|
|
21,429 |
|
|
|
|
18,679 |
|
|
Total current assets |
|
$ |
285,059 |
|
|
|
$ |
261,898 |
|
|
|
|
|
|
|
|
|
|
|
Long term assets: |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
$ |
163,467 |
|
|
|
$ |
168,701 |
|
|
Deferred income taxes |
|
|
95 |
|
|
|
|
103 |
|
|
Contract assets – non-current |
|
|
5,531 |
|
|
|
|
- |
|
|
Intangible Assets |
|
|
9,886 |
|
|
|
|
11,517 |
|
|
Goodwill |
|
|
23,561 |
|
|
|
|
23,130 |
|
|
Other long term assets |
|
|
2,975 |
|
|
|
|
2,651 |
|
|
Total long term assets |
|
|
205,515 |
|
|
|
|
206,102 |
|
|
Total assets |
|
$ |
490,574 |
|
|
|
$ |
468,000 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term
debt |
|
$ |
16,069 |
|
|
|
$ |
3,260 |
|
|
Trade accounts payable and accrued expenses |
|
|
62,519 |
|
|
|
|
55,182 |
|
|
Accrued interest expense |
|
|
3,017 |
|
|
|
|
7,392 |
|
|
Due to related parties |
|
|
1,018 |
|
|
|
|
975 |
|
|
Payable associated to GM&P acquisition |
|
|
- |
|
|
|
|
29,000 |
|
|
Dividends payable |
|
|
758 |
|
|
|
|
585 |
|
|
Current portion of customer advances on
uncompleted contracts |
|
|
- |
|
|
|
|
11,429 |
|
|
Contract liability – current portion |
|
|
17,915 |
|
|
|
|
- |
|
|
Other current liabilities |
|
|
8,936 |
|
|
|
|
13,626 |
|
|
Total current liabilities |
|
$ |
110,232 |
|
|
|
$ |
121,449 |
|
|
|
|
|
|
|
|
|
|
|
Long term liabilities: |
|
|
|
|
|
|
|
|
Deferred income taxes |
|
$ |
2,910 |
|
|
|
$ |
2,317 |
|
|
Long Term Payable associated to GM&P
acquisition |
|
|
8,500 |
|
|
|
|
- |
|
|
Customer advances on uncompleted contracts |
|
|
- |
|
|
|
|
1,571 |
|
|
Contract liability – non-current |
|
|
1,750 |
|
|
|
|
- |
|
|
Long term debt |
|
|
219,920 |
|
|
|
|
220,998 |
|
|
Total Long Term Liabilities |
|
|
233,080 |
|
|
|
|
224,886 |
|
|
Total liabilities |
|
$ |
343,312 |
|
|
|
$ |
346,335 |
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Preferred shares, $0.0001 par value, 1,000,000
shares authorized, 0 shares issued and outstanding at September 30,
2018 and December 31, 2017 respectively |
|
$ |
- |
|
|
|
$ |
- |
|
|
Ordinary shares, $0.0001 par value, 100,000,000
shares authorized, 37,534,416 and 34,836,575 shares issued and
outstanding at September 30, 2018 and December 31, 2017,
respectively |
|
|
4 |
|
|
|
|
3 |
|
|
Legal Reserves |
|
|
1,367 |
|
|
|
|
1,367 |
|
|
Additional paid-in capital |
|
|
152,919 |
|
|
|
|
125,317 |
|
|
Retained earnings |
|
|
20,071 |
|
|
|
|
22,212 |
|
|
Accumulated other comprehensive (loss) |
|
|
(28,087 |
) |
|
|
|
(28,651 |
) |
|
Shareholders’ equity attributable to
controlling interest |
|
|
146,274 |
|
|
|
|
120,248 |
|
|
Shareholders’ equity attributable to
non-controlling interest |
|
|
988 |
|
|
|
|
1,417 |
|
|
Total shareholders’ equity |
|
|
147,262 |
|
|
|
|
121,665 |
|
|
Total liabilities and shareholders’
equity |
|
$ |
490,574 |
|
|
|
$ |
468,000 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated Statements of Operations
and Comprehensive Income (In thousands,
except share and per share
data)(Unaudited)
|
|
Three months ended
September 30, |
|
|
Nine months ended
September 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
$ |
95,325 |
|
|
|
$ |
82,117 |
|
|
|
$ |
269,317 |
|
|
|
$ |
226,445 |
|
|
Related parties |
|
|
1,667 |
|
|
|
|
1,267 |
|
|
|
|
3,804 |
|
|
|
|
3,732 |
|
|
Total operating revenues |
|
|
96,992 |
|
|
|
|
83,384 |
|
|
|
|
273,121 |
|
|
|
|
230,177 |
|
|
Cost of sales |
|
|
62,299 |
|
|
|
|
56,200 |
|
|
|
|
187,038 |
|
|
|
|
158,197 |
|
|
Gross Profit |
|
|
34,693 |
|
|
|
|
27,184 |
|
|
|
|
86,083 |
|
|
|
|
71,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
(10,922 |
) |
|
|
|
(7,932 |
) |
|
|
|
(28,626 |
) |
|
|
|
(25,349 |
) |
|
General and administrative expense |
|
|
(8,504 |
) |
|
|
|
(7,851 |
) |
|
|
|
(24,578 |
) |
|
|
|
(22,952 |
) |
|
Total Operating Expenses |
|
|
(19,426 |
) |
|
|
|
(15,783 |
) |
|
|
|
(53,204 |
) |
|
|
|
(48,301 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
15,267 |
|
|
|
|
11,401 |
|
|
|
|
32,879 |
|
|
|
|
23,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income |
|
|
780 |
|
|
|
|
656 |
|
|
|
|
2,588 |
|
|
|
|
2,605 |
|
|
Foreign currency transactions (losses) gains |
|
|
(2,494 |
) |
|
|
|
5,394 |
|
|
|
|
(828 |
) |
|
|
|
(894 |
) |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
|
13 |
|
|
|
|
- |
|
|
|
|
(3,148 |
) |
|
Interest expense and deferred cost of
financing |
|
|
(5,140 |
) |
|
|
|
(4,633 |
) |
|
|
|
(15,551 |
) |
|
|
|
(14,890 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes |
|
|
8,413 |
|
|
|
|
12,831 |
|
|
|
|
19,088 |
|
|
|
|
7,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (provision) |
|
|
(2,261 |
) |
|
|
|
(5,806 |
) |
|
|
|
(6,187 |
) |
|
|
|
(2,796 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,152 |
|
|
|
$ |
7,025 |
|
|
|
$ |
12,901 |
|
|
|
$ |
4,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Income) loss attributable to non-controlling
interest |
|
|
145 |
|
|
|
|
(101 |
) |
|
|
|
429 |
|
|
|
|
(173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income attributable to
parent |
|
$ |
6,297 |
|
|
|
$ |
6,924 |
|
|
|
$ |
13,330 |
|
|
|
$ |
4,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,152 |
|
|
|
$ |
7,025 |
|
|
|
$ |
12,901 |
|
|
|
$ |
4,556 |
|
|
Foreign currency translation adjustments |
|
|
(1,998 |
) |
|
|
|
3,163 |
|
|
|
|
564 |
|
|
|
|
2,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
$ |
4,154 |
|
|
|
$ |
10,188 |
|
|
|
$ |
13,465 |
|
|
|
$ |
7,270 |
|
|
Comprehensive (income) loss attributable to
non-controlling interest |
|
|
145 |
|
|
|
|
(101 |
) |
|
|
|
429 |
|
|
|
|
(173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable
to parent |
|
$ |
4,299 |
|
|
|
$ |
10,087 |
|
|
|
$ |
13,894 |
|
|
|
$ |
7,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share |
|
$ |
0.16 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per share |
|
$ |
0.16 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares
outstanding |
|
|
37,861,129 |
|
|
|
|
36,256,397 |
|
|
|
|
36,867,528 |
|
|
|
|
36,278,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding |
|
|
38,336,638 |
|
|
|
|
36,731,906 |
|
|
|
|
37,343,037 |
|
|
|
|
36,754,492 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated Statements of Cash
Flows (In
thousands)(Unaudited)
|
|
Nine months ended
September 30, |
|
|
|
2018 |
|
|
|
2,017 |
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
|
$ |
12,901 |
|
|
|
$ |
4,556 |
|
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Provision for bad debts |
|
|
(231 |
) |
|
|
|
2,739 |
|
|
Provision for obsolete inventory |
|
|
26 |
|
|
|
|
80 |
|
|
Depreciation and amortization |
|
|
17,483 |
|
|
|
|
15,692 |
|
|
Deferred income taxes |
|
|
1,233 |
|
|
|
|
(3,625 |
) |
|
Extinguishment of debt |
|
|
- |
|
|
|
|
2,569 |
|
|
Director stock compensation |
|
|
213 |
|
|
|
|
213 |
|
|
Other non-cash adjustments |
|
|
978 |
|
|
|
|
827 |
|
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivables |
|
|
(10,551 |
) |
|
|
|
6,460 |
|
|
Inventories |
|
|
(17,025 |
) |
|
|
|
(8,923 |
) |
|
Prepaid expenses |
|
|
(509 |
) |
|
|
|
248 |
|
|
Other assets |
|
|
(3,834 |
) |
|
|
|
(5,814 |
) |
|
Trade accounts payable and accrued expenses |
|
|
4,677 |
|
|
|
|
(7,074 |
) |
|
Accrued interest expense |
|
|
(4,368 |
) |
|
|
|
7,975 |
|
|
Taxes payable |
|
|
(6,361 |
) |
|
|
|
(13,077 |
) |
|
Labor liabilities |
|
|
934 |
|
|
|
|
686 |
|
|
Related parties |
|
|
440 |
|
|
|
|
3,097 |
|
|
Contract assets and liabilities |
|
|
(5,480 |
) |
|
|
|
- |
|
|
Customer advances on uncompleted contracts |
|
|
- |
|
|
|
|
2,497 |
|
|
CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES |
|
$ |
(9,474 |
) |
|
|
$ |
9,126 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from sale of investments |
|
|
1,093 |
|
|
|
|
456 |
|
|
Aquisition of businesses |
|
|
(6,000 |
) |
|
|
|
(7,873 |
) |
|
Purchase of investments |
|
|
(828 |
) |
|
|
|
(716 |
) |
|
Acquisition of property and equipment |
|
|
(7,195 |
) |
|
|
|
(6,701 |
) |
|
CASH USED IN INVESTING
ACTIVITIES |
|
$ |
(12,930 |
) |
|
|
$ |
(14,834 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
16,272 |
|
|
|
|
20,313 |
|
|
Cash Dividend |
|
|
(2,044 |
) |
|
|
|
(1,864 |
) |
|
Proceeds from bond issuance |
|
|
- |
|
|
|
|
201,769 |
|
|
Repayments of debt |
|
|
(5,288 |
) |
|
|
|
(205,615 |
) |
|
CASH PROVIDED BY FINANCING
ACTIVITIES |
|
$ |
8,940 |
|
|
|
$ |
14,603 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
$ |
492 |
|
|
|
$ |
340 |
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH |
|
|
(12,972 |
) |
|
|
|
9,235 |
|
|
CASH - Beginning of period |
|
|
40,923 |
|
|
|
|
26,918 |
|
|
CASH - End of period |
|
$ |
27,951 |
|
|
|
$ |
36,153 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
9,516 |
|
|
|
$ |
15,700 |
|
|
Income Tax |
|
$ |
6,984 |
|
|
|
$ |
15,651 |
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING ACTIVITES: |
|
|
|
|
|
|
|
|
Assets acquired under capital lease and debt |
|
$ |
1,249 |
|
|
|
$ |
- |
|
|
Gain in extinguishment of GM&P payment
settlement |
|
$ |
3,606 |
|
|
|
$ |
- |
|
|
Revenues by
Region(Amounts in
thousands)(Unaudited)
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Colombia |
|
$ |
12,138 |
|
|
$ |
13,339 |
|
|
$ |
49,519 |
|
|
$ |
45,292 |
|
United States |
|
|
82,223 |
|
|
|
68,117 |
|
|
|
215,068 |
|
|
|
174,767 |
|
Panama |
|
|
1,253 |
|
|
|
1,095 |
|
|
|
3,110 |
|
|
|
3,187 |
|
Other |
|
|
1,378 |
|
|
|
833 |
|
|
|
5,424 |
|
|
|
6,931 |
|
Total Revenues |
|
$ |
96,992 |
|
|
$ |
83,384 |
|
|
$ |
273,121 |
|
|
$ |
230,177 |
|
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 |
|
September
30, |
|
2018 |
|
|
2017 |
|
% Change |
|
|
|
|
|
|
Total Revenues with Foreign Currency Held
Neutral |
$ |
96,919 |
|
$ |
83,384 |
|
16.2 |
% |
Impact of changes in foreign currency |
|
73 |
|
|
- |
|
0.1 |
% |
Total Revenues,
as Reported |
$ |
96,992 |
|
$ |
83,384 |
|
16.3 |
% |
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 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 |
|
Nine months
ended |
|
September
30, |
|
September
30, |
|
2018 |
|
|
2017 |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Net (loss) income |
6,152 |
|
|
7,025 |
|
|
12,901 |
|
4,556 |
|
Less: Income (loss) attributable to
non-controlling interest |
145 |
|
|
(101 |
) |
|
429 |
|
(173 |
) |
(Loss) Income attributable to
parent |
6,297 |
|
|
6,924 |
|
|
13,330 |
|
4,383 |
|
Interest expense and deferred cost of
financing |
5,140 |
|
|
4,633 |
|
|
15,551 |
|
14,890 |
|
Income tax (benefit) provision |
2,261 |
|
|
5,806 |
|
|
6,187 |
|
2,796 |
|
Depreciation & amortization |
6,025 |
|
|
5,326 |
|
|
17,483 |
|
15,692 |
|
Foreign currency transactions losses (gains) |
2,494 |
|
|
(5,394 |
) |
|
828 |
|
894 |
|
Non-Recurring expenses (extinguishment of debt,
bond issuance 2costs, provision for bad debt, acquisition related
costs and other) |
495 |
|
|
206 |
|
|
5,703 |
|
5,876 |
|
Director Stock compensation and provision for
obsolete inventory |
71 |
|
|
93 |
|
|
213 |
|
293 |
|
Adjusted EBITDA |
22,783 |
|
|
17,594 |
|
|
59,295 |
|
44,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
6,152 |
|
|
7,025 |
|
|
12,901 |
|
4,556 |
|
Less: Income (loss) attributable to
non-controlling interest |
145 |
|
|
(101 |
) |
|
429 |
|
(173 |
) |
(Loss) Income attributable to
parent |
6,297 |
|
|
6,924 |
|
|
13,330 |
|
4,383 |
|
Foreign currency transactions losses (gains) |
2,494 |
|
|
(5,394 |
) |
|
828 |
|
894 |
|
Deferred cost of financing |
372 |
|
|
- |
|
|
1,078 |
|
- |
|
Non-Recurring expenses (extinguishment of debt,
bond issuance costs, provision for bad debt, acquisition related
costs and other) |
495 |
|
|
206 |
|
|
5,703 |
|
5,876 |
|
Tax impact of adjustments at statutory rate |
(321 |
) |
|
2,075 |
|
|
1,181 |
|
(2,708 |
) |
Adjusted net (loss) income |
9,337 |
|
|
3,811 |
|
|
22,120 |
|
8,445 |
|
|
|
|
|
|
|
|
|
Basic income (loss) per share |
0.16 |
|
|
0.19 |
|
|
0.35 |
|
0.13 |
|
Diluted income (loss) per share |
0.16 |
|
|
0.19 |
|
|
0.35 |
|
0.12 |
|
|
|
|
|
|
|
|
|
Diluted Adjusted net income (loss) per share |
0.24 |
|
|
0.10 |
|
|
0.59 |
|
0.23 |
|
|
|
|
|
|
|
|
|
Diluted Weighted Average Common Shares
Outstanding in thousands |
38,337 |
|
|
36,732 |
|
|
37,343 |
|
36,754 |
|
Basic weighted average common shares outstanding
in thousands |
37,861 |
|
|
36,256 |
|
|
36,868 |
|
36,279 |
|
Diluted weighted average common shares
outstanding in thousands |
38,337 |
|
|
36,732 |
|
|
37,343 |
|
36,754 |
|
Investor
Relations:
Santiago
GiraldoCFO305-503-9062investorrelations@tecnoglass.com
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