UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): March 7, 2019

 

TECNOGLASS INC.

(Exact Name of Registrant as Specified in Charter)

 

Cayman Islands   001-35436   98-1271120

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

Avenida Circunvalar a 100 mts de la Via 40, Barrio Las Flores, Barranquilla, Colombia

(Address of Principal Executive Offices) (Zip Code)

 

(57)(5) 3734000

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  [  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
  [  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
  [  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
  [  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 
 

 

Item 2.02. Results of Operations and Financial Condition.

 

On March 7, 2019, Tecnoglass Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2018. The press release is included as Exhibit 99.1 hereto.

 

The information furnished under this Item 2.02, including the exhibit related thereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.

 

Description

     
99.1   Press release dated March 7, 2019

 

 2 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: March 7, 2019

 

  TECNOGLASS INC.
     
  By: /s/ Jose M. Daes
  Name: Jose M. Daes
  Title: Chief Executive Officer

 

 3 
 

 

 

Tecnoglass Reports Fourth Quarter and Full Year 2018 Results

 

- Total Revenues Increased 18% to a Record $371.0 million for Full Year 2018; Led by Strong U.S. Growth -

 

- Net Income Grew 48% to $8.5 million for Full Year 2018 -

 

- Adjusted Net Income Expanded by 2.8x to a Record $32.3 Million for Full Year 2018 -

 

- Adjusted EBITDA Increased 30% to a Record $80.8 Million for Full Year 2018 -

 

- Backlog Expanded to a Record $515 Million; Up 3.2% Year-over-Year and 1.8% Quarter-over-Quarter -

 

- Introduced Full Year 2019 Outlook for Adjusted EBITDA1 Growth to $86 million to $94 million on Total Revenues of $395 million to $415 million -

 

Fourth Quarter 2018 Highlights

 

  Total revenues increased 16% to $97.9 million on strong U.S. activity; 7th consecutive record revenue quarter
  Net loss of $4.4 million, or ($0.12) per diluted share, including non-cash foreign currency transactions losses associated with mark to market adjustment of USD denominated assets and liabilities to the Colombian Peso
  Adjusted net income1 increased by 3.5x to $10.2 million, or $0.26 per diluted share
  Adjusted EBITDA1 grew 25% to a fourth quarter record of $21.5 million
  In January 2019, entered into joint venture agreement with Saint-Gobain through the planned purchase of a minority ownership interest in Vidrio Andino, a Colombia-based subsidiary of Saint-Gobain with annualized sales of approximately $100 million

 

BARRANQUILLA, Colombia – March 7, 2019 – 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, 2018.

 

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “2018 marked a solid year of progress for our company. We achieved record levels of revenues and Adjusted EBITDA while improving our full year gross margin by 90 basis points to 32.4% on greater efficiencies and lower product installation costs. We continue to see healthy construction activity within our markets in the U.S. as we reap the benefits of our expanding geographic footprint. In the U.S. single family residential market, we achieved a four-fold increase in 2018 sales year-over-year, surpassing our expectation and validating our efforts to penetrate that end market primarily through our Elite® and Prestige product lines. In January, we were excited to partner with Saint-Gobain to acquire a stake in their expanding float glass production operations in Colombia, which reinforces our vertical integration strategy and secures our long-term float glass supply while driving significant efficiencies over time. Overall, our structural advantages are paying off as evidenced by our 2018 performance and we are enthusiastic about our prospects for additional success and market share gains in 2019 and beyond.”

 

Christian Daes, Chief Operating Officer of Tecnoglass, stated, “Building on solid momentum in 2018, we were pleased to end the year with backlog at a record level. Bidding activity remains firm in the U.S., and we are benefitting from expansion in regions where economic fundamentals support long-term demand for our architectural glass systems. We were recently awarded our first project through our Schüco partnership, which is already delivering benefits. We are well positioned to continue growing faster than our end markets at industry leading margins. We look forward to another year of solid growth in sales and Adjusted EBITDA.”

 

 
 

 

Fourth Quarter 2018 Results

 

Total revenues for the fourth quarter of 2018 improved 16.1% to $97.9 million compared to $84.3 million in the prior year quarter. Excluding the impact of unfavorable foreign currency, total revenues increased 17.0% compared to the prior year quarter. U.S. revenues increased 27.8% to $81.5 million compared to $63.8 million in the prior year quarter, driven by stronger residential invoicing, continued healthy construction 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 $12.9 million compared to $18.2 million in the prior year quarter.

 

Gross profit increased 25.5% to $34.1 million, representing a 34.9% gross margin, compared to $27.2 million, representing a 32.3% gross margin, in the prior year quarter. The 260 basis point improvement in gross margin reflected lower installation costs on service revenue and lower direct labor costs, with essentially stable raw material costs per unit. Operating expenses were $19.8 million compared to $16.5 million in the prior year quarter. As a percent of total revenues, operating expenses were 20.3% compared to 19.6% in the prior year quarter, primarily due to higher ground transportation costs in the U.S. Operating income increased 34.0% to $14.3 million compared to $10.7 million in the prior year quarter.

 

Net loss was $4.4 million, or ($0.12) per diluted share in the fourth quarter of 2018, compared to net income of $1.1 million, or $0.03 per diluted share in the prior year quarter, including non-cash foreign currency transactions losses in both periods related to the re-measurement of USD denominated assets and liabilities against the Colombian Peso as functional currency. Adjusted net income1 improved to $10.2 million, or $0.26 per diluted share, compared to adjusted net income of $3.0 million, or $0.08 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 and 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 25.2% to $21.5 million, compared to $17.2 million in the prior year quarter, primarily attributable to sales growth and higher gross profit.

 

Full Year 2018 Results

 

Total revenues for the full year 2018 increased 18.0% to $371.0 million compared to $314.5 million in the prior year. The foreign currency impact to total revenues was negligible compared to the prior year.

 

Gross profit was $120.2 million, representing a 32.4% gross margin, compared to $99.2 million, representing a 31.5% gross margin in the prior year. Operating income was $47.2 million compared to $34.4 million in the prior year. Net income was $8.5 million, or a $0.22 per diluted share, compared to net income of $5.5 million, or $0.15 per diluted share in the prior year. Adjusted net income1 was $32.3 million, or $0.85 per diluted share, compared to $11.4 million, or $0.30 per diluted share in the prior year. Adjusted EBITDA improved to $80.8 million, or 21.8% of sales, compared to $62.0 million, or 19.7% of sales, in the prior year.

 

The Company ended 2018 with cash and cash equivalents of $33.0 million compared to $40.9 million in the prior year, with the reduction attributable to working capital investments to support growth during the year as well as higher inventory to support expected shipment growth in the first quarter of 2019. During 2018, the Company incurred $13.1 million of cash capital expenditures, compared to $7.0 million in the prior year, with the increase attributable to targeted high-return projects in the fourth quarter of 2018 focused on operational enhancements and efficiency initiatives.

 

  2
 

 

Strategic Joint Venture with Saint-Gobain

 

In January 2019, as previously announced, the Company entered into a strategic joint venture agreement with Saint-Gobain, through the planned purchase of a minority ownership interest in Vidrio Andino, a Colombia-based float glass manufacturing subsidiary of Saint-Gobain with annualized sales of approximately $100 million. The joint venture is expected to significantly augment Tecnoglass’ vertical integration strategy by allowing it to acquire an ownership interest in one of the first stages of its production supply chain, secure stable long-term float glass supply, improve purchasing economics for a significant portion of its float glass sourcing, while also reducing waste and transportation costs. The transaction is expected to be completed in the second quarter of 2019.

 

Dividend

 

The Company declared a regular quarterly dividend of $0.14 per share for the fourth quarter of 2018, which was paid on February 28, 2019 to shareholders of record as of the close of business on January 31, 2019.

 

Full Year 2019 Outlook

 

For the full year 2019, the Company expects to see growth in construction end markets and additional market share gains in the U.S. In 2019, the Company anticipates revenues to grow to a range of $395 to $415 million. The Company expects Adjusted EBITDA in 2019 to be in the range of $86 million to $94 million, representing growth of 11.3% at the midpoint year over year, driven by higher revenues and greater operational efficiencies.

 

Conference Call

 

Management will host a conference call on Thursday, March 7, 2019 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: 13686987.

 

  3
 

 

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 75% 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.

 

Investor Relations:

 

Santiago Giraldo

CFO

305-503-9062

investorrelations@tecnoglass.com

 

  4
 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

(Audited)

 

   December 31, 2018   December 31, 2017 
         
ASSETS          
Current assets:          
Cash and cash equivalents  $33,040   $40,923 
Investments   1,163    1,680 
Trade accounts receivable, net   92,791    110,464 
Unbilled receivables on uncompleted contracts   -    9,996 
Due from related parties   8,239    8,500 
Inventories   91,849    71,656 
Contract assets – current portion   46,018    - 
Prepaid expenses   1,367    1,165 
Other current assets   18,932    17,514 
Total current assets   293,399    261,898 
           
Long term assets:          
Property, plant and equipment, net   149,199    168,701 
Contract assets – non-current   6,986    - 
Intangible assets   9,006    11,517 
Goodwill   23,561    23,130 
Deferred income tax   4,770    135 
Other long term assets   2,853    2,619 
Total long term assets   196,375    206,102 
Total assets  $489,774   $468,000 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Short-term debt and current portion of long-term debt  $21,606   $3,260 
Trade accounts payable   65,510    55,182 
Accrued interest expense   7,567    7,392 
Dividend Payable   736    585 
Due to related parties   1,500    975 
Payable associated to GM&P acquisition   -    29,000 
Taxes payable   7,154    12,076 
Labor liabilities   1,733    1,550 
Contract liabilities – current portion   16,789    - 
Current portion of customer advances on uncompleted contracts   -    11,429 
Total current liabilities   122,595    121,449 
           
Deferred income taxes   2,706    2,317 
Long Term Payable associated to GM&P acquisition   8,500    - 
Long term receivables from related parties   600    - 
Customer advances on uncompleted contracts   -    1,571 
Contract liabilities – non-current   1,436    - 
Long-term debt   220,709    220,998 
Total long term liabilities   233,951    224,886 
Total liabilities  $356,546   $346,335 
           
Commitments and contingencies          
           
Shareholders’ equity          
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2018 and 2017  $-   $- 
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 38,092,996 and 34,836,575 shares issued and outstanding at December 31, 2018 and 2017, respectively   4    3 
Legal reserves   1,367    1,367 
Additional paid capital   157,604    125,317 
Retained earnings   10,439    22,212 
Accumulated other comprehensive income (loss)   (37,058)   (28,651)
Shareholders’ equity attributable to controlling interest   132,356    120,248 
Shareholders’ equity attributable to non-contolling interest   872    1,417 
Total shareholders’ equity   133,228    121,665 
Total liabilities and shareholders’ equity  $489,774   $468,000 

 

  5
 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(In thousands, except share and per share data)

(Audited)

 

   Three months ended December 31,   Twelve months ended December 31, 
   2018   2017   2018   2017 
Operating revenues:                    
External customers  $96,329   $82,930   $365,646   $309,375 
Related parties   1,534    1,349    5,338    5,081 
Total operating revenues   97,863    84,279    370,984    314,456 
Cost of sales   63,729    57,077    250,767    215,274 
Gross Profit   34,134    27,202    120,217    99,182 
                     
Operating expenses:                    
Selling expense   (10,764)   (8,435)   (39,390)   (33,784)
General and administrative expense   (9,054)   (8,082)   (33,632)   (31,034)
Total Operating Expenses   (19,818)   (16,517)   (73,022)   (64,818)
                     
Operating income   14,316    10,685    47,195    34,364 
                     
Non-operating income   327    585    2,915    3,190 
Foreign currency transactions (losses) gains   (13,633)   (2,134)   (14,461)   (3,028)
Loss on extinguishment of debt   -    12    -    (3,136)
Interest expense and deferred cost of financing   (5,636)   (4,982)   (21,187)   (19,872)
                     
Income before taxes   (4,626)   4,166    14,462    11,518 
                     
Income tax benefit (provision)   211    (2,997)   (5,976)   (5,793)
                     
Net income  $(4,415)  $1,169   $8,486   $5,725 
                     
(Income) loss attributable to non-controlling interest   116    (103)   545    (276)
                     
Income attributable to parent  $(4,299)  $1,066   $9,031   $5,449 
                     
Comprehensive income:                    
Net income  $(4,415)  $1,169   $8,486   $5,725 
Foreign currency translation adjustments   7,843    (2,165)   8,407    549 
                     
Total comprehensive income  $3,428   $(996)  $16,893   $6,274 
Comprehensive (income) loss attributable to non-controlling interest   116    (103)   545    (276)
                     
Total comprehensive income attributable to parent  $3,544   $(1,099)  $17,438   $5,998 
                     
Basic income per share  $(0.12)  $0.03   $0.23   $0.15 
Diluted income per share  $(0.11)  $0.03   $0.22   $0.16 
Basic weighted average common shares outstanding   38,092,996    36,848,415    37,511,851    36,836,075 
Diluted weighted average common shares outstanding   38,643,780    37,399,199    38,062,635    37,386,858 

 

  6
 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Audited)

 

   Years Ended December 31, 
   2018   2017 
         
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income (loss)  $8,486   $5,725 
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:          
Depreciation and amortization   23,157    20,969 
Provision for bad debts   369    3,128 
Provision for obsolete inventory   (20)   80 
Other fair value adjustments, net   (155)   (72)
(Gain) Loss on disposition of assets   33    17 
Change in fair value of earnout share liability   -    - 
Change in fair value of warrant liability   -    - 
Director Stock compensation   -    284 
Deferred income taxes   (3,289)   (6,137)
Extinguishment of Debt   -    2,558 
Amortization of deferred financing costs   1,468    1,204 
Changes in operating assets and liabilities, net of effects from acquisitions:          
Trade accounts receivable   (23,700)   2,497 
Inventories   (28,064)   (16,447)
Prepaid expenses   (1,161)   22 
Other assets   (4,645)   (2,004)
Unbilled receivables   -    (10,653)
Trade accounts payable   34,588    13,055 
Accrued interest expense   466    3,769 
Taxes payable   (4,315)   (8,542)
Labor liabilities   340    134 
Related parties   (23)   1,815 
Contract assets and liabilities   (8,566)   - 
Advances from customers   -    2,807 
CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES  $(5,031)  $14,209 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Acquisition of property and equipment   (13,117)   (7,027)
Proceeds from sale of property and equipment   -    - 
Acquisition of businesses and intangible assets   (6,000)   (7,873)
Proceeds from sale of investments   1,575    571 
Purchase of investments   (1,184)   (600)
CASH USED IN INVESTING ACTIVITIES  $(18,726)  $(14,929)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceed from bond issuance   -    201,801 
Repayments of debt and capital leases   (8,860)   (205,330)
Proceeds from debt   28,600    20,761 
Proceeds from the exercise of unit purchase options   -    - 
Dividends paid   (2,714)   (2,471)
Subsidiary distributions prior to acquisition   -    - 
Proceeds from the exercise of warrants   -    - 
CASH PROVIDED BY FINANCING ACTIVITIES  $17,026   $14,761 
           
Effect of exchange rate changes on cash and cash equivalents   (1,152)   (36)
           
NET INCREASE IN CASH   (7,883)   14,005 
CASH - Beginning of year   40,923    26,918 
CASH - End of year  $33,040   $40,923 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          
Cash paid during the year for:          
Interest  $18,223   $15,774 
Taxes  $8,399   $17,834 
           
NON-CASH INVESTING AND FINANCING ACTIVITIES:          
Assets acquired under capital lease, financial obligations or credit  $447   $1,751 
Gain in extinguishment of GM&P payment settlement  $3,606   $- 

 

  7
 

 

Revenues by Region

(Amounts in thousands)

(Audited)

 

   Three months ended   Twelve months ended 
   December 31,   December 31, 
   2018   2017   % Change   2018   2017   % Change 
                         
Revenues by Region                              
United States   81,466    63,762    27.8%   296,534    238,529    24.3%
Colombia   12,926    18,247    -29.2%   62,445    63,539    -1.7%
Other Countries   3,471    2,270    52.9%   12,005    12,388    -3.1%
Total Revenues by Region   97,863    84,279    16.1%   370,984    314,456    18.0%

 

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, 
   2018   2017   % Change   2018   2017   % Change 
                         
Total Revenues with Foreign Currency Held Neutral  $98,640   $84,279    17.0%  $371,092   $314,456    18.0%
Impact of changes in foreign currency   (777)   -    -0.9%   (108)   -    0.0%
Total Revenues, as Reported  $97,863   $84,279    16.1%  $370,984   $314,456    18.0%

 

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.

 

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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:

 

   Three months ended   Twelve months ended 
   December 31,   December 31, 
   2018   2017   2018   2017 
                 
Net (loss) income   (4,415)   1,169    8,486    5,725 
Less: Income (loss) attributable to non-controlling interest   116    (103)   545    (276)
(Loss) Income attributable to parent   (4,299)   1,066    9,031    5,449 
Foreign currency transactions losses (gains)   13,633    2,134    14,461    3,028 
Deferred cost of financing   390    338    1,468    338 
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other)   983    668    6,686    6,544 
Tax impact of adjustments at statutory rate   (508)   (1,256)   673    (3,964)
Adjusted net (loss) income   10,199    2,950    32,319    11,395 
                     
Basic income (loss) per share   (0.12)   0.03    0.23    0.16 
Diluted income (loss) per share   (0.12)   0.03    0.22    0.15 
                     
Diluted Adjusted net income (loss) per share   0.27    0.08    0.85    0.30 
                     
Diluted Weighted Average Common Shares Outstanding in thousands   38,093    37,399    38,063    37,387 
Basic weighted average common shares outstanding in thousands   38,093    36,848    37,512    36,836 
Diluted weighted average common shares outstanding in thousands   38,644    37,399    38,063    37,387 

 

   Three months ended   Twelve months ended 
   December 31,   December 31, 
   2018   2017   2018   2017 
                 
Net (loss) income   (4,415)   1,169    8,486    5,725 
Less: Income (loss) attributable to non-controlling interest   116    (103)   545    (276)
(Loss) Income attributable to parent   (4,299)   1,066    9,031    5,449 
Interest expense and deferred cost of financing   5,636    4,982    21,187    19,872 
Income tax (benefit) provision   (211)   2,997    5,976    5,793 
Depreciation & amortization   5,674    5,277    23,157    20,969 
Foreign currency transactions losses (gains)   13,633    2,134    14,461    3,028 
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other)   983    668    6,686    6,544 
Director Stock compensation and provision for obsolete inventory   69    71    282    364 
Adjusted EBITDA   21,485    17,195    80,780    62,019 

 

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