Tecnoglass Announces 2013 Financial Results

Apr 17, 2014

Provides 2014 Projections

2013 Overview

  • Annual revenues rose 41% to $183.3 million from $130.3 million in 2012
  • 2013 operating income rose to $27.3 million from $11.0 million last year
  • 2013 net income increased to $22.3 million, or $1.08 per diluted share, and included an extraordinary gain in non-operating income of $7.6 million. This compared to net income of $5.9 million, or $0.29 per diluted share, last year with no such gains
  • 2013 Adjusted EBITDA increased to $38.5 million from $22.3 million in 2012

BARRANQUILLA, Colombia--(BUSINESS WIRE)-- Tecnoglass, Inc. (NASDAQ:TGLS; OTCBB:TGLSW) ("Tecnoglass" or the "Company"), a leading manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries, today announced financial results for the year ended December 31, 2013.

José M. Daes, Chief Executive Officer of Tecnoglass, commented, "Our strong results reflect the quality of our products and service, our successful market expansion efforts, and the meaningful manufacturing and delivery cost advantages we have developed over the years. During 2013, we generated higher sales in existing markets, including Colombia and the United States, which included diversification outside of south Florida. Approximately 36% of our 2013 revenues were generated in the United States. We expect that our presence in the United States and other geographies will continue to grow, driven by, among other factors, industry and macro-economic tailwinds, and increased project bonding capacity following our debut as a public company in December 2013."

Mr. Daes concluded, "We ended the year with a strong backlog, a robust new business pipeline, and a fortified balance sheet following our December 2013 merger with Andina Acquisition Corporation. We are optimistic about 2014 and beyond, and are continuing to pursue corporate and industry alliances, enter new geographies, and invest in new and innovative products to meet anticipated growing global demand."

2013 Results Overview

Consolidated revenues for 2013 rose 41% to $183.3 million from $130.3 million in 2012.

Gross profit rose to $55.4 million, or 30.2% of revenues, from $34.9 million, or 26.8% of revenues, last year.

As a percentage of revenues, SG&A declined to 15.4% from 18.3% last year. On a dollar basis, SG&A increased 17.8%, or $4.3 million, from 2012 due to higher shipping, insurance and personnel costs, offset by a modest decline in administrative expenses mostly due to decreased rent expense.

Operating income rose to $27.3 million from $11.0 million last year.

An extraordinary gain in non-operating income of $7.6 million was recorded to reflect the decrease in the fair value of the warrants liability, which were issued in connection with Tecnoglass's merger with Andina Acquisition Corporation in December 2013.

Net income for 2013 increased to $22.3 million, or $1.08 per diluted share, and included an extraordinary gain in non-operating income of $7.6 million. This compared to net income of $5.9 million, or $0.29 per diluted share, in 2012 with no such gains. Excluding the $7.6 million extraordinary gain, net income for 2013 was $14.7 million, or $0.71 per diluted share.


Consolidated backlog stood at $120 million at December 31, 2013 compared to $110 million at December 31, 2012. Backlog consists primarily of contract sales for projects that can last up to several years until completion. Backlog should not be considered a comprehensive indicator of future revenues or prospects, as a significant portion of Tecnoglass's revenues are derived from non-contract, standard sales.

2014 Forecast

Based on current business conditions, including forecasted growth in key markets, particularly the United States, Tecnoglass expects that revenue, Adjusted EBITDA, and net income for the year ending December 31, 2014 will approximate $205.7 million, $42.2 million, and $16.8 million, respectively.

Conference Call

Management will host a conference call on Monday, April 21, 2014, at 11:00 am ET to discuss these results and other matters. Interested parties may participate in the call by dialing:

  • (877) 423-9820 (Domestic)
  • (201) 493-6749 (International)

The conference call will also be broadcast live via the Investor Information sector of Tecnoglass's website at www.tecnoglass.com. To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the website for approximately 90 days.

About Tecnoglass

Tecnoglass is a leading manufacturer of hi-spec, architectural glass and windows for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, Tecnoglass operates out of a 1.2 million square foot vertically-integrated, state-of-the-art manufacturing complex that provides easy access to the Americas, the Caribbean, and the Pacific. Tecnoglass sells to more than 800 customers in North, Central and South America, with the United States accounting for approximately 36% of Company revenues in 2013. Tecnoglass's tailored, high-end products are found on some of the world's most distinctive properties, including the El Dorado Airport (Bogota), Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower (Miami), and The Woodlands (Houston). For more information, please visit www.tecnoglass.com

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's 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's 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, changes in assumptions or otherwise.


Tecnoglass Inc. and Subsidiaries

Consolidated Statements of Income and Comprehensive Income

(in thousands, except share and per share data)

          Twelve Months Ended December 31,
2013       2012
Operating revenues $ 183,294 $ 130,324
Cost of sales   127,875     95,451  
Gross profit 55,419 34,873
Operating expenses:
Selling 17,287 11,756
General and administration   10,862     12,138  
Operating expenses net 28,149 23,894
Operating income 27,270 10,979
Change in fair value of warrant liability 7,626 -
Non-operating revenues 3,998 3,649
Interest expense   (7,886 )   (5,513 )
Income before taxes 31,008 9,115
Income tax provision   8,696     3,223  
Net income $ 22,312   $ 5,892  
Comprehensive income:
Net income $ 22,312 $ 5,892
Foreign currency translation adjustments   (953 )   6,262  
Total comprehensive income $ 21,359   $ 12,154  
Basic income per share $ 1.08   $ 0.29  
Diluted income per share $ 1.08   $ 0.29  
Basic weighted average common shares outstanding   20,677,067     20,567,141  
Diluted weighted average common shares outstanding   20,714,275     20,567,141  

Tecnoglass Inc. and Subsidiaries Consolidated Condensed Balance Sheets

(in thousands, except share and per share data)

        December 31,
2013     2012
Current assets
Cash $ 2,866 $ 2,135
Restricted cash 3,633 -
Due from transfer agent 15,908 -
Subscription receivable 6,611 -
Investments 1,353 2,675
Trade accounts receivable, net 59,010 37,431
Unbilled receivables on uncompleted contracts 11,640 873
Due from related parties 19,058 5,294
Advances and other receivables 13,165 16,796
Deferred income taxes 2,321 75
Inventories 24,181 21,559
Prepaid expenses   824       1,606  
Total current assets 160,570 88,444
Property, plant and equipment, net 87,382 63,032
Investments - 1,198
Other assets   262       1,344  
Total assets $ 248,214     $ 154,018  
Liabilities and shareholders´ equity
Current liabilities
Short-term debt and current portion of long-term debt $ 29,720 $ 7,125
Note payable to shareholder 80 -
Accounts payable and accrued expenses 37,682 25,807
Taxes payables 4,847 4,063
Deferred income taxes 6,698 -
Labor liabilities 6 25
Accrued liabilities and provisions 994 1,714
Current portion of customer advances on uncompleted contracts   28,470       17,867  
Total current liabilities 108,497 56,601
Warrant liability 18,280 -
Customer advances on uncompleted contracts 8,220 -
Long-term debt   48,097       50,130  
Total liabilities   183,094       106,731  
Commitments and contingencies
Shareholders' equity

Preferred shares, $0.0001 par value, 1,000,000 shares authorized,

0 shares issued and outstanding at December 31, 2013 and 2012

Ordinary shares, $0.0001 par value, 100,000,000 shares authorized,

24,214,670 and 20,567,141shares issued and outstanding at

December 31, 2013 and 2012, respectively





Legal reserves 1,367 1,367
Additional paid capital 40,693 44,219
Retained earnings (accumulated deficit) 18,488 (3,824 )
Cumulative translation adjustment   4,570       5,523  
Total shareholders´ equity   65,120       47,287  
Total liabilities and shareholders´ equity $ 248,214     $ 154,018  

Adjusted EBITDA Reconciliation

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA, in addition to operating profit, net 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 might not be comparable to similarly-titled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows:


























2012       22,296       7,668       14,628       -0-       5,513       3,223       5,892       5,892
2013       38,506       7,238       31,268       (7,626)       7,886       8,696       22,312       14,686
2014 F       42,239       8,492       33,747       -0-       8,624       8,291       16,832       16,832

The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President
Thomas Mei, 212- 836-9614

Source: Tecnoglass, Inc.

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