Barranquilla-based window-maker Tecnoglass (NASDAQ:TGLS) reported record-high revenue of $314.5 million USD in 2017, an increase of 3.1% compared to the $305 million USD in the prior year.
Despite the windfall, net income came in at just $5.7 million USD on adjusted EDBITDA of $62.0 Million USD. This was down from $23.2 million USD and $72 million USD, respectively, in 2016.
Some of this can be attributed to capital expenditures as well as approximately $3 million of invoicing that, due to Hurricane Irma, will be realized in 2018. The company’s backlog also expanded to $499 million USD in 2017, an increase of 26% compared to 2016.
In addition, revenue in Colombia “remained pressured,” said CEO José Manuel Daes, due to persistent macroeconomic challenges in the country. But he added that “we are beginning to turn the corner,” with fourth quarter results up 36.8% compared to the third quarter, and expected projects in 2018 that will allow the firm to “capitalize on significant pent-up demand in Colombia” and “ strong interest in our new products” in the nation.
Tecnoglass still managed to hit its $10 million USD sales target last year and expects to reach a range of $20 million USD to $25 million USD for 2018.
Looking more broadly, the company expects revenue growth to be even stronger in 2018, particularly in the first half of the year due “based on anticipated timing of invoicing in 2018 compared to 2017,” stated Tecnoglass.
In all, it has projected revenues of between $345 million USD to $365 million USD this year. This will lead to an estimated 22% jump in adjusted EBITDA to between $71 million USD to $81 million USD, according to internal projections.
“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,” said Christian Daes, chief operating officer of Tecnoglass. “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.”
The COO also highlighted the realized energy savings following a solar energy project and high hopes for a new range of “high-end products which will allow us to further diversify our revenue stream going forward.”
Photo: Tecnoglass manafactures windows, glass, and other homebuilding products from its plant in Barranquilla, Colombia. (Credit: Tecnoglass)