Tecnoglass Reports Record Third Quarter 2021 Results
- Single-Family Residential Revenues Increased 213% Year-Over-Year, Representing 48% of
- Total Revenues Up 26% Year-Over-Year to a Record $130.4 Million -
- Record Third Quarter Gross Margin of 39.6%, Up 80 Basis Points Year-Over-Year -
- Net Income of $20.9 Million, or
- Adjusted EBITDA1 Up 36.1% Year-Over-Year to a Record $38.7 Million, or 29.7% of Total Revenues -
- Record Cash Flow From Operations of $32.6 Million -
- Backlog Expands to a Record $576 Million, Up 7.4% Year-Over-Year -
- Increases Full Year 2021 Growth Outlook to Adjusted EBITDA1 of
Third Quarter 2021 Results
Total revenues for the third quarter of 2021 increased 26.2% to
Gross profit for the third quarter of 2021 grew 28.7% to
Net income was
Adjusted net income1 was
Adjusted EBITDA1, as reconciled in the table below, increased 36.1% to
Dividend
The Company declared a quarterly cash dividend of
Balance Sheet & Liquidity
The Company ended the third quarter of 2021 with total liquidity of approximately
Full Year 2021 Outlook
Webcast and Conference Call
Management will host a webcast and conference call on
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 passcode: 13724329.
About
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
1 Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.
Investor Relations:
CFO
305-503-9062
investorrelations@tecnoglass.com
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 86,520 | $ | 66,899 | ||||
Investments | 2,038 | 2,387 | ||||||
Trade accounts receivable, net | 100,039 | 88,368 | ||||||
Due from related parties | 8,397 | 8,574 | ||||||
Inventories | 80,142 | 80,742 | ||||||
Contract assets – current portion | 21,927 | 26,288 | ||||||
Other current assets | 18,308 | 13,545 | ||||||
Total current assets | $ | 317,371 | $ | 286,803 | ||||
Long-term assets: | ||||||||
Property, plant and equipment, net | $ | 156,864 | $ | 152,266 | ||||
Deferred income taxes | 2,225 | 268 | ||||||
Contract assets – non-current | 10,742 | 10,228 | ||||||
Due from related parties - long term | - | 484 | ||||||
Long-term trade accounts receivable | 4,387 | 2,985 | ||||||
Intangible assets | 3,842 | 5,112 | ||||||
23,561 | 23,561 | |||||||
Long-term investments | 50,705 | 47,535 | ||||||
Other long-term assets | 4,545 | 2,783 | ||||||
Total long-term assets | 256,871 | 245,222 | ||||||
Total assets | $ | 574,242 | $ | 532,025 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt and current portion of long-term debt | $ | 13,047 | $ | 1,764 | ||||
Trade accounts payable and accrued expenses | 74,176 | 42,178 | ||||||
Accrued interest expense | 3 | 7,175 | ||||||
Due to related parties | 2,903 | 4,750 | ||||||
Dividends payable | 1,353 | 1,352 | ||||||
Contract liability – current portion | 34,507 | 24,694 | ||||||
Other current liabilities | 20,985 | 9,630 | ||||||
Total current liabilities | $ | 146,974 | $ | 91,543 | ||||
Long-term liabilities: | ||||||||
Deferred income taxes | $ | 158 | $ | 3,170 | ||||
Long-term liabilities from related parties | 662 | 645 | ||||||
Contract liability – non-current | 605 | 977 | ||||||
Long-term debt | 189,340 | 222,722 | ||||||
Total long-term liabilities | 190,765 | 227,514 | ||||||
Total liabilities | $ | 337,739 | $ | 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 | 78,711 | 34,326 | ||||||
Accumulated other comprehensive (loss) | (64,513 | ) | (43,512 | ) | ||||
Shareholders’ equity attributable to controlling interest | 235,766 | 212,382 | ||||||
Shareholders’ equity attributable to non-controlling interest | 737 | 586 | ||||||
Total shareholders’ equity | 236,503 | 212,968 | ||||||
Total liabilities and shareholders’ equity | $ | 574,242 | $ | 532,025 |
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
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2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Operating revenues: | ||||||||||||||||||||
External customers | $ | 129,738 | $ | 102,980 | $ | 360,133 | $ | 270,676 | ||||||||||||
Related parties | 672 | 329 | 2,871 | 1,873 | ||||||||||||||||
Total operating revenues | 130,410 | 103,309 | 363,004 | 272,549 | ||||||||||||||||
Cost of sales | 78,765 | 63,188 | 217,589 | 170,205 | ||||||||||||||||
Gross profit | 51,645 | 40,121 | 145,415 | 102,344 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Selling expense | (13,310 | ) | (10,534 | ) | (36,421 | ) | (29,163 | ) | ||||||||||||
General and administrative expense | (8,181 | ) | (9,381 | ) | (25,050 | ) | (24,601 | ) | ||||||||||||
Total operating expenses | (21,491 | ) | (19,915 | ) | (61,471 | ) | (53,764 | ) | ||||||||||||
Operating income | 30,154 | 20,206 | 83,944 | 48,580 | ||||||||||||||||
Non-operating income (expenses), net | 139 | (138 | ) | 58 | (232 | ) | ||||||||||||||
Equity method income | 1,291 | 695 | 3,170 | 789 | ||||||||||||||||
Foreign currency transactions gains (loss) | 188 | (3,066 | ) | 333 | (22,223 | ) | ||||||||||||||
Gain (loss) on debt extinguishment | 175 | - | (10,803 | ) | - | |||||||||||||||
Interest expense and deferred cost of financing | (2,156 | ) | (6,147 | ) | (8,120 | ) | (17,236 | ) | ||||||||||||
Income before taxes | 29,791 | 11,550 | 68,582 | 9,678 | ||||||||||||||||
Income tax (provision) | (8,848 | ) | (3,279 | ) | (20,112 | ) | (4,021 | ) | ||||||||||||
Net income | $ | 20,943 | $ | 8,271 | $ | 48,470 | $ | 5,657 | ||||||||||||
(Loss) Income attributable to non-controlling interest | (24 | ) | 52 | (151 | ) | 97 | ||||||||||||||
Income attributable to parent | $ | 20,919 | $ | 8,323 | $ | 48,319 | $ | 5,754 | ||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | $ | 20,943 | $ | 8,271 | $ | 48,470 | $ | 5,657 | ||||||||||||
Foreign currency translation adjustments | (4,023 | ) | (4,024 | ) | (20,843 | ) | (18,945 | ) | ||||||||||||
Change in fair value derivative contracts | - | 506 | (159 | ) | (941 | ) | ||||||||||||||
Total comprehensive income | $ | 16,920 | $ | 4,753 | $ | 27,468 | $ | (14,229 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | (24 | ) | 52 | (151 | ) | 97 | ||||||||||||||
Total comprehensive income (loss) attributable to parent | $ | 16,896 | $ | 4,805 | $ | 27,317 | $ | (14,132 | ) | |||||||||||
Basic income per share | $ | 0.44 | $ | 0.18 | $ | 1.02 | $ | 0.12 | ||||||||||||
Diluted income per share | $ | 0.44 | $ | 0.18 | $ | 1.02 | $ | 0.12 | ||||||||||||
Basic weighted average common shares outstanding | 47,674,773 | 46,117,631 | 47,674,773 | 46,117,631 | ||||||||||||||||
Diluted weighted average common shares outstanding | 47,674,773 | 46,117,631 | 47,674,773 | 46,117,631 |
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine months ended |
||||||||||
2021 | 2020 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income (loss) | $ | 48,470 | $ | 5,657 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||
Allowance for bad debts | 1,056 | 1,035 | ||||||||
Depreciation and amortization | 15,605 | 15,421 | ||||||||
Deferred income taxes | 398 | (7,612 | ) | |||||||
Equity method income | (3,170 | ) | (789 | ) | ||||||
Deferred cost of financing | 994 | 1,306 | ||||||||
Other non-cash adjustments | (25 | ) | 158 | |||||||
Loss on debt extinguishment | 2,333 | - | ||||||||
Unrealized currency translation losses | 4,582 | 24,197 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Trade accounts receivables | (16,961 | ) | 6,353 | |||||||
Inventories | (8,761 | ) | (5,127 | ) | ||||||
Prepaid expenses | (2,004 | ) | (686 | ) | ||||||
Other assets | (10,210 | ) | 12,455 | |||||||
Trade accounts payable and accrued expenses | 41,337 | (14,612 | ) | |||||||
Accrued interest expense | (7,172 | ) | (4,678 | ) | ||||||
Taxes payable | 11,915 | (569 | ) | |||||||
Labor liabilities | 1,056 | 5 | ||||||||
Contract assets and liabilities | 15,583 | 18,851 | ||||||||
Related parties | (1,604 | ) | (341 | ) | ||||||
CASH PROVIDED BY OPERATING ACTIVITIES | $ | 93,422 | $ | 51,024 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sale of investments | 177 | 470 | ||||||||
Purchase of investments | (63 | ) | (189 | ) | ||||||
Acquisition of property and equipment | (32,064 | ) | (13,732 | ) | ||||||
CASH USED IN INVESTING ACTIVITIES | $ | (31,950 | ) | $ | (13,451 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Cash dividend | (3,932 | ) | (2,533 | ) | ||||||
Loss on debt extinguishment - call premium | (8,610 | ) | - | |||||||
Deferred financing transaction costs | (91 | ) | - | |||||||
Proceeds from debt | 221,135 | 17,747 | ||||||||
Repayments of debt | (247,024 | ) | (30,453 | ) | ||||||
CASH USED IN FINANCING ACTIVITIES | $ | (38,522 | ) | $ | (15,239 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | $ | (3,329 | ) | $ | (765 | ) | ||||
NET INCREASE IN CASH | 19,621 | 21,569 | ||||||||
CASH - Beginning of period | 66,899 | 47,862 | ||||||||
CASH - End of period | $ | 86,520 | $ | 69,431 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||
Cash paid during the period for: | ||||||||||
Interest | $ | 14,124 | $ | 18,650 | ||||||
Income Tax | $ | 9,302 | $ | 8,318 | ||||||
NON-CASH INVESTING AND FINANCING ACTIVITES: | ||||||||||
Assets acquired under credit or debt | $ | 1,641 | $ | 919 |
Revenues by Region
(Amounts in thousands)
(Unaudited)
Three months ended | Nine months ended | ||||||||||||
2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||
Revenues by Region | |||||||||||||
123.237 | 95.680 | 28.8 | % | 333.923 | 253.626 | 31.7 | % | ||||||
5.234 | 5.650 | (7.4 | %) | 21.065 | 13.942 | 51.1 | % | ||||||
Other Countries | 1.939 | 1.979 | (2.0 | %) | 8.016 | 4.981 | 61.0 | % | |||||
Total Revenues by Region | 130.410 | 103.309 | 26.2 | % | 363.004 | 272.549 | 33.2 | % |
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
Three months ended | |||||||||
2021 | 2020 | % Change | |||||||
Total Revenues with Foreign Currency Held Neutral | $ | 130.571 | $ | 103.312 | 26.4 | % | |||
Impact of changes in foreign currency | (160 | ) | - | (0.2 | %) | ||||
Total Revenues, as Reported | $ | 130.410 | $ | 103.312 | 26.2 | % |
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:
Three months ended | Nine months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net (loss) income | 20.943 | 8.271 | 48.470 | 5.657 | ||||||||||||
Less: Income (loss) attributable to non-controlling interest | (24 | ) | 52 | (151 | ) | 97 | ||||||||||
(Loss) Income attributable to parent | 20.919 | 8.323 | 48.319 | 5.754 | ||||||||||||
Foreign currency transactions losses (gains) | (188 | ) | 3.066 | (333 | ) | 22.223 | ||||||||||
Gain on change in fair value of earnout shares liabilities | - | - | - | - | ||||||||||||
Gain on change in fair value of warrant liability | - | - | - | - | ||||||||||||
Deferred cost of financing | ||||||||||||||||
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 1.266 | 2.356 | 3.522 | 5.131 | ||||||||||||
Extinguishment of debt - Call Option Premium | - | - | 8.610 | - | ||||||||||||
Extinguishment of debt - Deferred Costs | (175 | ) | - | 2.193 | - | |||||||||||
Joint Venture VA (Saint Gobain) adjustments | 8 | 389 | 155 | 1.408 | ||||||||||||
Change in FV of Hedging Derivatives | 4 | 612 | (178 | ) | 1.970 | |||||||||||
Tax impact of adjustments at statutory rate | (275 | ) | (2.055 | ) | (4.191 | ) | (9.808 | ) | ||||||||
Adjusted net (loss) income | 21.560 | 12.691 | 58.097 | 26.678 | ||||||||||||
Basic income (loss) per share | 0,44 | 0,18 | 1,02 | 0,12 | ||||||||||||
Diluted income (loss) per share | 0,44 | 0,18 | 1,02 | 0,12 | ||||||||||||
Diluted Adjusted net income (loss) per share | 0,45 | 0,28 | 1,22 | 0,58 | ||||||||||||
Diluted Weighted Average Common Shares Outstanding in thousands | 47.675 | 46.118 | 47.675 | 46.118 | ||||||||||||
Basic weighted average common shares outstanding in thousands | 47.675 | 46.118 | 47.675 | 46.118 | ||||||||||||
Diluted weighted average common shares outstanding in thousands | 47.675 | 46.118 | 47.675 | 46.118 |
Three months ended | Nine months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net (loss) income | 20.943 | 8.271 | 48.470 | 5.657 | ||||||||||||
Less: Income (loss) attributable to non-controlling interest | (24 | ) | 52 | (151 | ) | 97 | ||||||||||
(Loss) Income attributable to parent | 20.919 | 8.323 | 48.319 | 5.754 | ||||||||||||
Interest expense and deferred cost of financing | 2.156 | 6.147 | 8.120 | 17.236 | ||||||||||||
Income tax (benefit) provision | 8.848 | 3.279 | 20.112 | 4.021 | ||||||||||||
Depreciation & amortization | 5.098 | 5.214 | 15.605 | 15.420 | ||||||||||||
Foreign currency transactions losses (gains) | (188 | ) | 3.066 | (333 | ) | 22.223 | ||||||||||
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 1.266 | 1.073 | 3.267 | 2.900 | ||||||||||||
Extinguishment of debt - Call Option Premium | - | - | 8.610 | - | ||||||||||||
Extinguishment of debt - Deferred Costs | (175 | ) | - | 2.193 | - | |||||||||||
Joint Venture VA (Saint Gobain) EBITDA adjustments | 813 | 742 | 2.154 | 2.610 | ||||||||||||
Change in FV of Hedging Derivatives | 4 | 612 | (178 | ) | 1.970 | |||||||||||
Adjusted EBITDA | 38.741 | 28.456 | 107.869 | 72.134 |

Source: Tecnoglass Inc.