A live broadcast of the presentation, including presentation materials, may be accessed through the Investor Relations section of Tecnoglass’ website at www.tecnoglass.com. A replay of the webcast will be available after the event.

Sidoti says its conference is a virtual forum that provides a unique nexus for quality small cap companies to interface with North America’s leading small cap investors. Investors interested in attending may register here.

Lytham Partners says its conference series seeks to create value for small cap companies through virtual connections with high-quality institutional investors via virtual 1×1 meetings, webcast presentations, “fireside chats” and panels on special topics within the industry. Those interested in attending may click here.

Tecnoglass stock continue to rebound after an investigation cleared the company and demonstrated a report issued by short sellers seeking to profit by causing share values to fall was false and unwarranted. Most analysts dismissed the report’s allegations, and the glass manufacturer has retained legal counsel.

Sidoti says its conference is a virtual forum that provides a unique nexus for quality small cap companies to interface with North America’s leading small cap investors. Investors interested in attending may register here.

Tecnoglass stock continue to rebound after an investigation cleared the company and demonstrated a report issued by short sellers seeking to profit by causing share values to fall was false and unwarranted. Most analysts dismissed the report’s allegations, and the glass manufacturer has retained legal counsel.

Sidoty says its conference is a virtual forum that provides a unique nexus for quality small cap companies to interface with North America’s leading small cap investors. Investors interested in attending may register here.

Tecnoglass stock continue to rebound after falling under attack by a dubious report issued by short sellers seeking to profit by causing share values to fall. Most analysts dismissed the report’s allegations, and the glass manufacturer has retained legal counsel.

Total revenues for the third quarter of 2021 increased 26.2% to $130.4 million, compared to $103.3 million in the prior year quarter. US revenues of $123.2 million, which represented 94.5% of total revenues, grew 28.8% compared to $95.7 million in the prior year’s quarter, driven by strong growth in single family residential activity and market share gains. Latin American revenue, a majority of which is represented by long-term contracts priced in Colombian Pesos but indexed to the US Dollar, decreased slightly to $7.2 million, compared to $7.6 million in the prior year quarter. Changes in foreign currency exchange rates had a negligible impact on Colombia and total revenues in the quarter.

Tecnoglass is being awarded the Syndicated Loan Deal of the Year Award at next month’s  Bonds & Loans Latin America & Caribbean Awards at the Ritz Carlton in Miami.

Adjusted EBITDA increased 36.1% to $38.7 million, or 29.7% of total revenues in the third quarter of 2021, compared to $28.5 million, or 27.5% of total revenues in the prior year quarter. The improvement was driven by higher sales, a stronger gross margin and operating leverage on SG&A. Adjusted EBITDA in the third quarter 2021 included $800,000 in contribution from the company’s joint venture with Saint-Gobain, compared to $0.7 million in the prior year quarter.

“We can make glass that protects from the weather, while letting you have a great view. People like that you can now be in harmony with the surroundings.” – José M. Daes. Above: Suburban Miami’s beachfront Regalia condo tower, featuring Tecnoglass materials.

“I could not be more proud of our exceptional third quarter performance that marked our 4th consecutive quarter of year-over-year revenue growth and another period of record quarterly revenues and adjusted EBITDA. In addition, continued momentum in our U.S. single-family residential business combined with careful working capital management collectively helped generate our 7th straight quarter of robust cash flow, allowing us to pay down debt while further investing in automation capabilities and capacity enhancements to address expected growth,” said CEO José Manuel Daes (above, right).

“As a result of our vertically integrated platform and strategic geographic positioning, we continue to enjoy a healthy competitive advantage that has mostly insulated Tecnoglass thus far from widespread supply chain disruptions and inflationary pressures affecting our industry. Our structural advantages have allowed us to achieve additional share gains as new and existing customers value our shorter lead times, continuity of product availability and unrelenting commitment to exceptional service. We expect to continue executing our highly profitable growth strategy and generating cash flow to deliver additional value for our shareholders.”

Net income was $20.9 million, or $0.44 per diluted share in the third quarter of 2021 compared to net income of $8.3 million, or $0.18 per diluted share in the prior year quarter, including an after-tax non-cash foreign exchange transaction gain of $200,000 in the third quarter of 2021 and a $3.1 million loss in the third quarter of 2020. 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 income was $21.6 million, or $0.45 per diluted share, in the third quarter of 2021 compared to adjusted net income of $12.7 million, or $0.28 per diluted share in the prior year quarter. Tecnoglass declared a quarterly cash dividend of $0.0275 per share for the third quarter of 2021, which was paid on October 29, 2021.

Gross profit for the third quarter of 2021 grew 28.7% to $51.6 million, representing a 39.6% gross margin, compared to gross profit of $40.1 million, representing a 38.8% gross margin in the prior year quarter. The 80 basis point improvement in gross margin mainly reflected greater operating efficiencies and a higher mix of revenue from manufacturing versus installation activity as Tecnoglass increased its mix of single family residential products. Selling, general and administrative expenses (SG&A) were $21.5 million compared to $19.9 million in the prior year quarter, primarily attributable to higher variable expenses related to ground and marine transportation as well as commission expenses. As a percent of total revenues, SG&A improved to 16.5% compared to 19.3% in the prior year quarter, primarily due to higher sales and better operating leverage on personnel, professional fees, and other fixed expenses.

Christian Daes (above, left), Chief Operating Officer of Tecnoglass, commented on the results: “Our proven track record of innovation, strategic footprint expansion, and returns-oriented investments in our operations have distinguished Tecnoglass as a dominant player in the architectural glass market with industry-leading margins. During the third quarter, we were pleased to begin invoicing best-in-class products from our new Multimax product line targeting production homebuilders as well as legacy and new dealers, which further augments our positioning in the U.S. single-family residential market.”

Given its strong cashflow generation, the company voluntarily prepaid $30 million under its Syndicated Term Loan facility during the quarter.

“Additionally, we are encouraged to report a record backlog at quarter end which reflects an increasing number of commercial projects in our pipeline through 2022. As we move forward, we are very pleased with our project pipeline and are excited by the strong momentum in our single-family residential business where we continue to see an immense opportunity for growth and additional share gains. Our strong geographical positioning, innovative product portfolio, and unique vertically integrated model give us confidence in the trajectory of our business.”

Tecnoglass CFO Santiago Giraldo (Photo: Loren Moss)

Tecnoglass ended the third quarter of 2021 with total liquidity of approximately $150 million, including cash and cash equivalents of $86.5 million and availability under its committed revolving credit facilities of $65 million. Cash provided by operating activities of $32.6 million improved by $6.4 million compared to the prior year quarter, attributable to higher profitability as well as more efficient inventory and working capital management. Given the company’s continued growth in adjusted EBITDA and strong cash generation, debt leverage continues to trend lower and now stands at 0.9 times LTM net debt to adjusted EBITDA, compared to 1.9 times in the prior year quarter. Given its strong cashflow generation, the company voluntarily prepaid $30 million under its Syndicated Term Loan facility during the quarter.

Santiago Giraldo, Chief Financial Officer of Tecnoglass, explained: “Based on our strong third quarter performance and expectations for a favorable growth environment across our end markets through year-end, we are increasing our full year 2021 growth outlook for revenues and adjusted EBITDA. We now expect 2021 revenues to grow to a range of $485 million to $495 million. We now anticipate full year adjusted EBITDA to increase to a range of $140 million to $145 million, implying year-over-year growth of approximately 46% at the midpoint. We continue to expect that robust demand for our products and services in the US will be the primary driver of these anticipated record full year 2021 results.”

• D.A. Davidson 20th Annual Diversified Industrials & Services Virtual Conference, September 22, 2021
• Sidoti Fall Virtual Investor Conference, September 23, 2021

The company will present at the Sidoti Fall Virtual Investor Conference on Thursday, September 23, 2021 at 10:00 a.m. eastern time (9:00 a.m. Bogota, Colombia time). A live broadcast of the presentation, including presentation materials, may be accessed through the Investor Relations section of https://www.tecnoglass.com/. A replay of the webcast will be available after the event.

Tecnoglass stock recently reached a high of $24.60 USD per share, almost five times its value of just a year ago. The almost 40-year-old company, which manufactures high-performance architectural glass and aluminum products, is expanding rapidly, further penetrating the US market, where it exports over 90% of its output.

Even though the stock is up 200% year to date, the company has offered a bullish growth narrative as it expands its market presence in the US. The Tecnoglass Board of Directors today declared a quarterly cash dividend of $0.0275 per share, or $0.11 per share on an annualized basis, for the second quarter of 2021. The dividend will be paid on July 30, 2021 to shareholders of record as of the close of business on June 30, 2021.

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), PabellónEEecno de Cristal (Barranquilla).

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 2.7 million square foot, vertically-integrated and state-of-the-art manufacturing complex provides efficient access to over 1,000 global customers, with the U.S. accounting for more than 90% of revenues.

A live broadcast of the presentation, including presentation materials, may be accessed through the Investor Relations section of the Tecnoglass website. A replay of the webcast will be available after the event.

Tecnoglass serves the multi-family, single-family and commercial construction markets, and is the second largest glass fabricator serving the U.S. and the largest architectural glass transformation company in Latin America. Located in Barranquilla, Colombia, the company’s 2.7 million square foot oceanside, vertically integrated manufacturing complex provides efficient access to over 1,000 global customers, with the US accounting for more than 90% of revenues. Tecnoglass’ tailored, high-end products are found on some of the world’s most distinctive properties, including the El Dorado Airport in Bogotá, Colombia, the United Nations Plaza in New York, the Icon Bay tower in Miami, and Salesforce Tower in San Francisco.

Despite the COVID-19 pandemic, Tecnoglass total revenues for the fourth quarter of 2020 increased 1.0% to $102.4 million, compared to $101.4 million in the prior year Q4. US revenues of $87.8 million, representing 86% of total revenues, grew 4.8% compared to $83.8 million in the prior year quarter, primarily driven by strong growth in residential activity. The contribution of US revenue growth to total revenues was partly offset by lower revenue from Colombia, primarily attributable to delayed activity at many customer jobsites due to COVID-19 related factors. Changes in foreign currency exchange rates had an adverse impact of $0.7 million on Colombia and total revenues in the quarter.

Gross profit for the fourth quarter of 2020 grew 25.8% to $36.9 million, representing a 36.1% gross margin, compared to gross profit of $29.3 million, representing a 28.9% gross margin in the prior year quarter. The 710-basis point improvement in gross margin mainly reflected greater operating efficiencies from prior automation initiatives and a higher mix of revenue from manufacturing versus installation activity. Selling, general and administrative expense was $19.4 million compared to $18.6 million in the prior year quarter, primarily attributable to higher variable expenses related to shipping, as well as COVID-19 related expenses. As a percent of total revenues, SG&A was 18.9% compared to 18.3% in the prior year quarter.

Net income was $18.5 million, or $0.39 per diluted share, in the fourth quarter of 2020 compared to net income of $10.9 million, or $0.23 loss per diluted share, in the prior year quarter, including an after-tax non-cash foreign exchange transaction gain of $13.6 million in the fourth quarter 2020 and a $8.9 million gain in the fourth quarter 2019. As previously disclosed, these gains and losses are related to the accounting re-measurement of US Dollar denominated assets and liabilities against the Colombian Peso as functional currency.

Tecnoglass will attend the Raymond James 42nd Annual Institutional Investors Conference, being held virtually on Wednesday, March 3, 2021.

Adjusted net income was $10.3 million, or $0.22 per diluted share, in the fourth quarter of 2020 compared to an adjusted net income of $7.5 million, or $0.16 per diluted share, in the prior year quarter. Adjusted net income, 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 EBITDA, as reconciled in the table below, increased 19.3% to $25.7 million, or 25.1% of total revenues in the fourth quarter of 2020, compared to $21.5 million, or 21.2% of revenues, in the prior year quarter. The improvement was driven by a stronger gross margin. Adjusted EBITDA in the fourth quarter 2020 included $1.6 million in contribution from Tecnoglass’ joint venture with Saint-Gobain, compared to $1.1 million in the prior year quarter.

“2020 was a milestone year for Tecnoglass. Our exceptional results reflect the resilience and dedication of our team as we capitalized on strong residential macro tailwinds and recovering commercial end market conditions to post our second straight quarter of growth in the US Additionally, we delivered on our goal to produce strong returns on our previously implemented automation and capacity investments, contributing to record full year gross profit and Adjusted EBITDA levels, both on a dollar basis and as a percentage of sales. Just as important, our success is translating into a step-change in cash generation, with our operating cash flow representing over 70% of Adjusted EBITDA in 2020. We were thrilled to exit the year with a much stronger and leaner company, underpinned by a significantly improved capital position to further extend our leadership in the architectural glass industry. We will continue to leverage Tecnoglass’ structural competitive advantages to maintain industry leading margins while capturing additional market share in the US We are well situated to achieve another year of stellar financial performance and returns for our shareholders in 2021,” said CEO José Manuel Daes (above right).

Tecnoglass declared a quarterly cash dividend of $0.0275 per share for the fourth quarter of 2020, which was paid on January 29, 2021 to shareholders of record as of the close of business on December 31, 2020.

Total revenues for the full year 2020 were $374.9 million compared to $430.9 million in the prior year with the decrease mainly related to one month less of invoicing in the second half of March and first half of April because of the previously communicated suspension of plant operations, as well as a slower recovery in Latin American markets since the onset of the COVID-19 pandemic. Excluding the impact of unfavorable foreign currency exchange, total revenues were lower by 12.3% compared to the prior year.

Single-family residential architectural glass represents a fairly new focus for Tecnoglass

Gross profit increased 2.5% year-over-year to a full year record of $139.3 million, representing a 37.1% gross margin, compared to $135.8 million, representing a 31.5% gross margin in the prior year. Operating income was $66.1 million compared to $58.8 million in the prior year. Net income was $24.2 million, or a $0.52 per diluted share, compared to net income of $24.3 million, or $0.55 per diluted share in the prior year. Adjusted net income was $36.8 million, or $0.79 per diluted share, compared to $30.8 million, or $0.69 per diluted share in the prior year. Adjusted EBITDA for the full year 2020 improved to a record $97.8 million, or 26.1% of sales, compared to $92.4 million, or 21.4% of sales, in the prior year.

Christian Daes, Chief Operating Officer of Tecnoglass (above, left), added, “Fourth quarter results were encouraging and marked a return to growth in total revenues to close out an extraordinary year. Single-family residential revenues expanded more than 50% year-over-year in the quarter and represented nearly 20% of our revenues for the full year 2020. Overall quoting and bidding activity continued to strengthen since mid-year 2020, resulting in defensible backlog position of $545 million. Our strong performance in 2020 was augmented by winning new customers, entering new markets, and maintaining our commitment to innovation through the introduction of new best-in-class products, particularly in residential. As we move into 2021, we remain focused on expanding our addressable market in single-family housing in the US Accomplishments to date reflect our dedication to excellence and we are excited to drive further improvement across our business in the coming quarters.”

Tecnoglass ended 2020 with cash and cash equivalents of $66.9 million compared to $47.9 million in the prior year. Cash provided by operating activities of $71.4 million improved by $45.8 million compared to the prior year, attributable to higher profitability as well as more efficient inventory and working capital management. During 2020 Tecnoglass incurred $19.8 million of capital expenditures, compared to $25.0 million in the prior year, with the decrease due to Tecnoglass’ $20 million investment into high-return projects to expand and automate key operations at several glass and aluminum facilities, which was largely completed in the fourth quarter of 2019.

On November 2, 2020, Tecnoglass announced a new $300 million Senior Secured Credit Facility, consisting of a $250 million delayed draw term loan and a $50 million committed revolving credit facility, with a maturity date in 2025. The new facility has an initial interest rate spread of 3.00%, which will decrease to a spread of 2.50% in April 2021 based on Tecnoglass’ leverage as of the end of the year.

Tecnoglass CFO Santiago Giraldo – Photo credit: Liliana Padierna)

Subsequent to the end of 2020, Tecnoglass redeemed in full its $210 million unsecured senior notes, which bear interest at a rate of 8.2%, following the step down in redemption price at the end of January 2021. The $8.6 million call option was fully paid in January alongside with the redemption of the notes. Following the redemption of the senior notes, annualized savings on cash interest expense are expected to approximate $11 million annually. On a pro forma basis giving effect to the pay down of the unsecured senior notes, Tecnoglass had total liquidity of approximately $126.9 million, including cash of $66.9 million and availability under its revolving credit facilities of $60 million.

“Our positive momentum continued into the first quarter, with single-family residential representing a growing share of our revenues. Based on our current invoicing schedule and underlying market demand, we are introducing our full year 2021 outlook for revenue to grow to a range of $400 million to $415 million. In addition, we anticipate full year Adjusted EBITDA to grow to a range of $100 million to $110 million, implying growth of approximately 7% at the midpoint, driven by higher revenues, partly offset by higher unit costs for raw materials and a more normalized revenue mix. We expect the stronger demand in the US to continue to offset the slower recovery in Latin American markets. Furthermore, we anticipate our track record of strong cash flow generation to continue in the full year 2021,” said Tecnoglass CFO Santiago Giraldo.

Tecnoglass Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)

Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
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Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Cash Flows
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Revenues by Region
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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.

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: