Tecnoglass Reports Record First Quarter 2021 Results
Tecnoglass reported impressive Q1 2021 results with total revenues of $110.9 million, a 27% increase year-over-year, driven by strong demand in the single-family residential sector, which grew 71%. The company achieved a record gross margin of 40.7%, up 590 basis points, and net profit of $8.2 million, leading to adjusted net income of $16.8 million or $0.35 per diluted share. Adjusted EBITDA rose 64.8% to $33.5 million. The backlog reached a record $552 million, and full-year revenue growth outlook was raised to $420-$435 million.
- Q1 2021 total revenues increased 27% to $110.9 million.
- Single-family residential revenues surged 71% year-over-year.
- Achieved a record gross margin of 40.7%, up 590 basis points.
- Net profit of $8.2 million in Q1, compared to a net loss in Q1 2020.
- Adjusted net income increased to $16.8 million or $0.35 per diluted share.
- Adjusted EBITDA climbed 64.8% to $33.5 million, 30.2% of sales.
- Record cash flow from operations at $29.0 million, enhancing liquidity.
- Debt refinancing completed, saving $11 million in annual cash interest expense.
- Record backlog of $552 million, indicating strong future demand.
- Raised full-year revenue and adjusted EBITDA growth outlook.
- SG&A expenses increased to $19.8 million, impacting profit margins.
- Strong Demand Drove Single-Family Residential Revenues Up 7
- Total Revenues Increase 27.0% Year-Over-Year to
- Operational and Structural Advantages Produce Record Gross Margin of 40.7%, Up 590 Basis Points -
- Net Profit of $8.2 Million, Inclusive of One-Time Extinguishment of Debt Costs; Adjusted Net Income1 of $16.8 Million, or $0.35 Per Diluted Share -
- Record Adjusted EBITDA1 of $33.5 Million or 30.2% of Sales, Up 64.8% Year-Over-Year -
- Record Cash Flow From Operations of $29.0 Million, Marking 4 Straight Quarters of Exceptional Cash Generation and Supporting Further Leverage Reduction to 1.4x Net Debt to Adjusted EBITDA1 -
- Completes Debt Refinancing with Repayment of Senior Notes, Resulting in Estimated Annual Cash Interest Expense Savings of
- Backlog Expands to a Record $552 Million, Up 1.1% Year-Over-Year -
- Raises Full Year 2021 Growth Outlook to Adjusted EBITDA1 of $115 Million to $125 Million on Total Revenues of $420 Million to $435 Million -
BARRANQUILLA, Colombia, May 07, 2021 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NASDAQ: TGLS) (“Tecnoglass” or the “Company”), a leading manufacturer of architectural glass, windows, and associated aluminum products serving the global residential and commercial end markets, today reported financial results for the first quarter ended March 31, 2021.
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “I am extremely proud of our outstanding performance so far in 2021 and I have never been more optimistic about the future for Tecnoglass. We delivered record first quarter results across nearly all of our key operating metrics including total revenues, gross profit, operating profit, adjusted EBITDA1 and operating cash flow. This success was largely driven by the continued positive reception of our single family residential products, allowing for additional market share gains. Furthermore, our vertically integrated architectural glass platform and prior automation investments continue to deliver significant structural advantages amid tight labor and material availability impacting our industry. We are optimally positioned to efficiently control our supply chain, manufacture products with shorter lead times and best serve customers in what we expect to be a year of significant growth in demand. Moving forward, we remain confident in our ability to maintain our industry leading margins and gain additional share in the quarters ahead.”
Christian Daes, Chief Operating Officer of Tecnoglass, added, “In the first quarter, we were thrilled to see the positive momentum continue in our business as we reported a sharp acceleration of growth. Encouraging trends in housing starts and de-urbanization combined with our efforts to expand our customer relationships are all supporting the growth of our single-family residential revenue, which increased over
First Quarter 2021 Results
Total revenues for the first quarter of 2021 increased
Gross profit for the first quarter of 2021 grew
Net income was
Adjusted net income1 was
Adjusted EBITDA1, as reconciled in the table below, increased
Dividend
The Company declared a quarterly cash dividend of
Balance Sheet & Liquidity
The Company ended the first quarter of 2021 with cash and cash equivalents of
In the first quarter of 2021, the Company redeemed in full its
Subsequent to the end of the first quarter and based on Tecnoglass’ leverage ratio as of March 31, 2021, the interest rate spread on the Company’s
Full Year 2021 Outlook
Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “We are increasing our full year outlook for 2021 total revenues and adjusted EBITDA1 growth to reflect Tecnoglass’ exceptional start to 2021, including strong demand into April and May and solid share gains. We now expect full year 2021 total revenues to grow to a range of
Webcast and Conference Call
Management will host a webcast and conference call on Friday, May 7, 2021 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. Due to potential extended wait times to access the conference call via dial-in, the Company encourages use of the webcast. For those unable to access the webcast, the conference call will be accessible by dialing 1-877-705-6003 (domestic) or 1-201-493-6725 (international). Upon dialing in, please request to join the Tecnoglass First Quarter 2021 Earnings Conference Call.
If you are unable to listen live, a replay of the webcast 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: 13718684.
About Tecnoglass
Tecnoglass Inc. is a leading producer of architectural glass, windows, and associated aluminum products serving the multi-family, single-family and commercial end markets. 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
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.
1Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.
Investor Relations:
Santiago Giraldo
CFO
305-503-9062
investorrelations@tecnoglass.com
Tecnoglass Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
March 31, | December 31, | |||||||||
2021 | 2020 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 85,160 | $ | 66,899 | ||||||
Investments | 2,235 | 2,387 | ||||||||
Trade accounts receivable, net | 90,033 | 88,368 | ||||||||
Due from related parties | 7,420 | 8,574 | ||||||||
Inventories | 71,317 | 80,742 | ||||||||
Contract assets – current portion | 23,530 | 26,288 | ||||||||
Other current assets | 13,537 | 13,545 | ||||||||
Total current assets | $ | 293,232 | $ | 286,803 | ||||||
Long-term assets: | ||||||||||
Property, plant and equipment, net | $ | 141,967 | $ | 152,266 | ||||||
Deferred income taxes | 1,989 | 268 | ||||||||
Contract assets – non-current | 11,023 | 10,228 | ||||||||
Due from related parties - long term | 121 | 484 | ||||||||
Long-term trade accounts receivable | 3,435 | 2,985 | ||||||||
Intangible assets | 4,713 | 5,112 | ||||||||
Goodwill | 23,561 | 23,561 | ||||||||
Long-term investments | 48,626 | 47,535 | ||||||||
Other long-term assets | 3,942 | 2,783 | ||||||||
Total long-term assets | 239,377 | 245,222 | ||||||||
Total assets | $ | 532,609 | $ | 532,025 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
Current liabilities: | ||||||||||
Short-term debt and current portion of long-term debt | $ | 13,748 | $ | 1,764 | ||||||
Trade accounts payable and accrued expenses | 44,969 | 42,178 | ||||||||
Accrued interest expense | 6 | 7,175 | ||||||||
Due to related parties | 4,333 | 4,750 | ||||||||
Dividends payable | 1,352 | 1,352 | ||||||||
Contract liability – current portion | 29,287 | 24,694 | ||||||||
Other current liabilities | 9,778 | 9,630 | ||||||||
Total current liabilities | $ | 103,473 | $ | 91,543 | ||||||
Long-term liabilities: | ||||||||||
Deferred income taxes | $ | 1,735 | $ | 3,170 | ||||||
Long-term liabilities from related parties | 651 | 645 | ||||||||
Contract liability – non-current | 999 | 977 | ||||||||
Long-term debt | 221,635 | 222,722 | ||||||||
Total long-term liabilities | 225,020 | 227,514 | ||||||||
Total liabilities | $ | 328,493 | $ | 319,057 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||||
Preferred shares, | $ | - | $ | - | ||||||
Ordinary shares, | 5 | 5 | ||||||||
Legal Reserves | 2,273 | 2,273 | ||||||||
Additional paid-in capital | 219,290 | 219,290 | ||||||||
Retained earnings | 41,181 | 34,326 | ||||||||
Accumulated other comprehensive (loss) | (59,305 | ) | (43,512 | ) | ||||||
Shareholders’ equity attributable to controlling interest | 203,444 | 212,382 | ||||||||
Shareholders’ equity attributable to non-controlling interest | 672 | 586 | ||||||||
Total shareholders’ equity | 204,116 | 212,968 | ||||||||
Total liabilities and shareholders’ equity | $ | 532,609 | $ | 532,025 |
Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
Three months ended | |||||||||
March 31, | |||||||||
2021 | 2020 | ||||||||
Operating revenues: | |||||||||
External customers | $ | 110,259 | $ | 86,106 | |||||
Related parties | 621 | 1,192 | |||||||
Total operating revenues | 110,880 | 87,298 | |||||||
Cost of sales | 65,737 | 56,871 |
FAQ
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