0001534675 false 0001534675 2022-11-03 2022-11-03 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

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): November 3, 2022

 

TECNOGLASS INC.

(Exact Name of Registrant as Specified in Charter)

 

Cayman Islands   001-35436   98-1271120
(State or Other Jurisdiction   (Commission   (IRS Employer
of Incorporation)   File Number)   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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Ordinary Shares   TGLS   The New York Stock Exchange

 

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 November 3, 2022, Tecnoglass Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2022. 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 November 3, 2022.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

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: November 3, 2022

 

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

 

 

 

Exhibit 99.1

 

 

Tecnoglass Reports Record Third Quarter 2022 Results and Announces $50 Million Share Repurchase Program

 

- Record Total Revenues of $201.8 Million, Up 53% Year-Over-Year -

 

- Revenues Driven Entirely by Organic Growth in Both Single-Family Residential and Commercial Businesses -

 

- Record Gross Margin of 52.2%, Up 1300 Basis Points Year-Over-Year -

 

- Record Net Income of $46.9 Million and $0.98 Per Diluted Share -

 

- Record Adjusted Net Income1 of $48.0 Million and $1.01 Per Diluted Share -

 

- Adjusted EBITDA1 More Than Doubled Year-Over-Year to $78.5 Million, or 38.9% of Total Revenues -

 

- Cash Flow from Operations of $29.1 Million Drives All Time Low Leverage Now Standing at 0.4x -

 

- Backlog Expanded 21.1% Year-Over-Year to a Record $696.9 Million -

 

- Facility Investments Remain on Track to Increase Operational Capacity to ~$950 Million in Revenues in the Second Quarter of 2023 -

 

- Increases Full Year 2022 Growth Outlook to Adjusted EBITDA1 of $240 Million to $255 Million on Total Revenues of $680 Million to $700 Million -

 

- Board of Directors Authorizes a $50 million Share Repurchase Program Based on Business Strength, Robust Backlog Growth and Cashflow Generation -

 

BARRANQUILLA, Colombia – November 3, 2022 – Tecnoglass, Inc. (NYSE: 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 third quarter ended September 30, 2022.

 

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “The strong efforts of our entire team led to another quarter of record results across nearly all metrics while operating through a complex macro environment. Demand for our high-performance architectural glass, window and aluminum products remains robust, with significant momentum in our single-family residential business, in addition to an acceleration in our commercial orders. We are set up to continue growing faster than the market as a result of our multi-year effort to diversify our business with new customers, products, end markets and geographies. We were especially pleased to achieve a record gross margin in excess of 50%. While this gross margin was well ahead of our normalized level, our performance demonstrates the power of our prior investments in automation and capacity enhancements, our unique, vertically-integrated platform and our strategic positioning in attractive markets. This gives us confidence that our current targeted investments to further modernize, automate and expand our operations will enable us to maintain short lead times, increase revenues and produce solid returns.”

 

José Manuel Daes continued, “The structural enhancements in our business, our diversified revenue mix, and our prudent working capital management have helped us generate 11 straight quarters of exceptional cash flow. Based on the Board’s confidence in our strategy and cash generation, we are pleased to announce today the authorization of a new $50 million share repurchase program as an additional avenue to build value in our Company. As we move forward, we believe our structural advantages and highly profitable growth strategy will allow us to continue generating exceptional cash flow as we look to deliver value for our shareholders.”

 

 

 

 

Christian Daes, Chief Operating Officer of Tecnoglass, added, “We are extremely pleased with our ability to produce another quarter of record results and above market growth. Our results reflect our ability to capitalize on strengthening commercial activity in attractive high growth markets in addition to capturing solid demand and share gains through the expansion of our single-family residential business. Our track record of successfully delivering high profile projects and maintaining superb lead times for our customers has earned us an increasing number of opportunities across the U.S., demonstrated by our expanding backlog of multifamily and commercial projects, up 21.1% year-over-year. We are also thrilled with the continued momentum across our business into the fourth quarter, which is reflected in our increased full year 2022 growth outlook. With our innovative product portfolio, strong industry relationships and structural competitive advantages, we believe we are on the path to continue growing faster than our end markets into 2023 and beyond.”

 

Third Quarter 2022 Results

 

Total revenues for the third quarter of 2022 increased 53.3% to $201.8 million compared to $131.7 million in the prior year quarter, driven by an increase in the Company’s commercial activity, strong growth in single-family residential activity and market share gains. Single-family residential revenues increased approximately 44% year-over-year, representing 42.5% of total revenues for the third quarter, helped by continued strong demand within the repair and remodeling space, the ongoing expansion of the Company’s Multimax product line, and a larger customer base. Changes in foreign currency exchange rates had an adverse impact of $0.7 million on both Colombia revenues and total revenues in the quarter.

 

Gross profit for the third quarter of 2022 nearly doubled to $105.3 million, representing a 52.2% gross margin, compared to gross profit of $51.5 million, representing a 39.2% gross margin in the prior year quarter. The 1,300 basis point improvement in gross margin mainly reflected operating leverage on higher sales, favorable pricing dynamics, greater operating efficiencies related to automation and a favorable FX trend given the recent strengthening of the US Dollar. Selling, general and administrative expense (“SG&A”) was $35.2 million compared to $21.7 million in the prior year quarter, with the majority of the increase attributable to higher shipping expenses as a result of a higher sales volume and higher shipping rates. Additionally, the Company incurred a one-time settlement expense related to a project contracted in 2016 that is now fully resolved. As a percent of total revenues, SG&A was 17.4% compared to 16.5% in the prior year quarter. Excluding the aforementioned settlement, SG&A as a percent of total revenues improved by 180 basis points compared to the prior year quarter.

 

Net income was $46.9 million, or $0.98 per diluted share, in the third quarter of 2022 compared to net income of $20.7 million, or $0.43 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction loss of $0.5 million in the third quarter of 2022 and a $0.2 million gain in the third quarter of 2021. As previously disclosed, 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 income1 was $48.0 million, or $1.01 per diluted share, in the third quarter of 2022 compared to adjusted net income of $21.2 million, or $0.45 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 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 EBITDA1, as reconciled in the table below, more than doubled to $78.5 million, or 38.9% of total revenues, in the third quarter of 2022, compared to $38.5 million, or 29.2% of total revenues, in the prior year quarter. The improvement was driven by higher sales and a stronger gross margin. Adjusted EBITDA1 included a $0.9 million contribution from the Company’s joint venture with Saint-Gobain, compared to $0.8 million in the prior year quarter.

 

 

 

 

Balance Sheet & Liquidity

 

The Company ended the third quarter of 2022 with total liquidity of approximately $255 million, including cash and cash equivalents of $84 million and availability under its committed revolving credit facilities of $170 million. Given the Company’s continued growth in adjusted EBITDA1 and strong cash generation, debt leverage continues to trend lower and now stands at 0.4 times net debt to LTM adjusted EBITDA1, compared to 0.9 times in the prior year quarter.

 

High-Return Capital Investments

 

During 2022, the Company initiated enhancements at its glass and aluminum facilities to increase production capacity and automate operations. Based on the timing of capital investments, the Company maintains its expectation to increase installed production capacity to an amount equivalent to over $800 million of annual sales by the end of 2022, followed by a further expansion of installed production capacity to an amount equivalent to approximately $950 million of annual sales by the end of the second quarter of 2023.

 

Dividend

 

The Company declared a quarterly cash dividend of $0.075 per share for the third quarter of 2022, representing a 15% increase from the previous dividend, which was paid on October 31, 2022 to shareholders of record as of the close of business on September 30, 2022.

 

Share Repurchase Program

 

On November 3, 2022, the Company’s Board of Directors authorized Tecnoglass to buy back up to $50 million of its common shares. The timing and amount of any share repurchases under the share repurchase program will be determined by Tecnoglass management at its discretion based on ongoing assessments of the capital needs of the business, the market price of Tecnoglass common stock and general market conditions. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, in block trades, trading plans in accordance with Rule 10b-5 under the Securities Exchange Act of 1934, as amended, or any combination of such methods. Open market purchases will be made in compliance with the “safe harbor” provisions of Rule 10b-18 under the Exchange Act. The program does not obligate Tecnoglass to acquire any particular amount of its common stock, has no set expiration date and may be suspended or discontinued at any time at the Company’s discretion subject to applicable securities laws.

 

 

 

 

Full Year 2022 Outlook

 

Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “Based on our exceptional third quarter performance and expectations for continued growth for our products through year-end, we are increasing our full year 2022 growth outlook for revenues and adjusted EBITDA1. We now expect 2022 revenues to grow to a range of $680 million to $700 million and for adjusted EBITDA1 to increase to a range of $240 million to $255 million. This implies adjusted EBITDA growth of approximately 67% at the midpoint. We expect to further build upon our strong track record of strategic execution and leverage our vertically integrated business model, which positions us to drive another year of record results and cash flow in the full year 2022.”

 

Webcast and Conference Call

 

Management will host a webcast and conference call on November 3, 2022 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. For those unable to access the webcast, the conference call will be accessible by dialing 1-844-943-2944 (domestic) or 1- 973-528-0098 (international). Upon dialing in, please provide conference entry code 487318.

 

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 (800)-332-6854 (Domestic) or (973)-528-0005 (International) and entering passcode: 487318.

 

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 3.8 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. 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), Pabellon de Cristal (Barranquilla). 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.

 

Investor Relations:

 

Santiago Giraldo

CFO

305-503-9062

investorrelations@tecnoglass.com

 

1 Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.

 

 

 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

   September 30,   December 31, 
   2022   2021 
ASSETS          
Current assets:          
Cash and cash equivalents  $84,434   $85,011 
Investments   2,211    1,977 
Trade accounts receivable, net   133,854    110,539 
Due from related parties   1,642    2,252 
Inventories   122,802    84,975 
Contract assets – current portion   17,496    18,667 
Other current assets   29,739    22,854 
Total current assets  $392,178   $326,275 
Long-term assets:          
Property, plant and equipment, net  $184,110   $166,629 
Deferred income taxes   2,897    596 
Contract assets – non-current   7,135    11,853 
Long-term trade accounts receivable   4,138    3,995 
Intangible assets   2,826    3,337 
Goodwill   23,561    23,561 
Long-term investments   57,249    51,160 
Other long-term assets   3,988    4,157 
Total long-term assets   285,904    265,288 
Total assets  $678,082   $591,563 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Short-term debt and current portion of long-term debt  $434   $10,700 
Trade accounts payable and accrued expenses   86,707    68,087 
Due to related parties   5,209    3,857 
Dividends payable   3,621    3,141 
Contract liability – current portion   53,251    45,213 
Other current liabilities   43,285    24,017 
Total current liabilities  $192,507   $155,015 
Long-term liabilities:          
Deferred income taxes  $3,939   $3,417 
Contract liability – non-current   11    78 
Long-term debt   168,255    188,355 
Total long-term liabilities   172,205    191,850 
Total liabilities  $364,712   $346,865 
SHAREHOLDERS’ EQUITY          
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively  $   $ 
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 47,674,773 and 47,674,773 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively   5    5 
Legal Reserves   1,458    2,273 
Additional paid-in capital   219,290    219,290 
Retained earnings   182,859    91,045 
Accumulated other comprehensive loss   (91,593)   (68,751 
Shareholders’ equity attributable to controlling interest   312,019    243,862 
Shareholders’ equity attributable to non-controlling interest   1,351    836 
Total shareholders’ equity   313,370    244,698 
Total liabilities and shareholders’ equity  $678,082   $591,563 

 

 

 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(In thousands, except share and per share data)

(Unaudited)

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2022   2021   2022   2021 
Operating revenues:                    
External customers  $201,240   $131,201   $503,919   $363,777 
Related parties   540    458    1,533    1,189 
Total operating revenues   201,780    131,659    505,452    364,966 
Cost of sales   96,484    80,110    266,191    218,978 
Gross profit   105,296    51,549    239,261    145,988 
Operating expenses:                    
Selling expense   (20,250)   (13,310)   (50,234)   (36,423)
General and administrative expense   (14,914)   (8,351)   (36,040)   (25,476)
Other professional fees   -    -    (3,402)   - 
Total operating expenses   (35,164)   (21,661)   (89,676)   (61,899)
Operating income   70,132    29,888    149,585    84,089 
Non-operating income (expenses), net   634    139    1,137    69 
Equity method income   1,821    1,291    5,070    3,170 
Foreign currency transactions (loss) gains   (450)   188    (856)   333 
Gain (loss) on debt extinguishment   -    175    -    (10,803)
Interest expense and deferred cost of financing   (2,249)   (2,156)   (5,432)   (8,120)
Income before taxes   69,888    29,525    149,504    68,738 
Income tax provision   (22,966)   (8,866)   (48,216)   (20,155)
Net income  $46,922   $20,659   $101,288   $48,583 
Income attributable to non-controlling interest   (196)   (20)   (515)   (160)
Income attributable to parent  $46,726   $20,639   $100,773   $48,423 
Comprehensive income:                    
Net income  $46,922   $20,659   $101,288   $48,583 
Foreign currency translation adjustments   (22,054)   (4,023)   (32,039)   (20,842)
Change in fair value of derivative contracts   4,865    -    9,197    (159)
Total comprehensive income  $29,733   $16,636   $78,446   $27,582 
Comprehensive (loss) income attributable to non-controlling interest   (196)   (20)   (515)   (160)
Total comprehensive income attributable to parent  $29,537   $16,616   $77,931   $27,422 
Basic income per share  $0.98   $0.43   $2.12   $1.02 
Diluted income per share  $0.98    0.43   $2.12   $1.02 
Basic weighted average common shares outstanding   47,674,773    47,674,773    47,674,773    47,674,773 
Diluted weighted average common shares outstanding   47,674,773    47,674,773    47,674,773    47,674,773 

 

 

 

 

Tecnoglass Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

   Nine months ended September 30, 
   2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income  $101,288   $48,584 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Allowance for credit losses   541    1,056 
Depreciation and amortization   15,089    15,613 
Deferred income taxes   140    398 
Equity method income   (5,070)   (3,170)
Deferred cost of financing   1,059    994 
Other non-cash adjustments   (22)   (25)
Loss on debt extinguishment   -    2,333 
Unrealized currency translation losses   9,482    4,582 
Changes in operating assets and liabilities:          
Trade accounts receivable   (29,486)   (16,472)
Inventories   (53,911)   (8,430)
Prepaid expenses   (1,126)   (2,111)
Other assets   (1,646)   (9,704)
Trade accounts payable and accrued expenses   14,638    40,547 
Accrued interest expense   (1)   (7,172)
Taxes payable   23,962    11,929 
Labor liabilities   1,629    967 
Other liabilities   (1,851)   (419)
Contract assets and liabilities   14,974    14,934 
Related parties   2,409    (1,606)
CASH PROVIDED BY OPERATING ACTIVITIES  $92,098   $92,828 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Proceeds from sale of investments   -    177 
Proceeds from sale of property and equipment   -    75 
Purchase of investments   (1,285)   (63)
Acquisition of property and equipment   (46,817)   (32,066)
CASH USED IN INVESTING ACTIVITIES  $(48,102)  $(31,877)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Cash dividend   (9,294)   (3,932)
Loss on debt extinguishment - call premium   -    (8,610)
Deferred financing transaction costs   -    (88)
Proceeds from debt   59    221,135 
Repayments of debt   (32,002)   (247,024)
CASH USED IN FINANCING ACTIVITIES  $(41,237)  $(38,519)
           
Effect of exchange rate changes on cash and cash equivalents  $(3,336)  $(3,329)
           
NET INCREASE IN CASH   (577)   19,103 
CASH - Beginning of period   85,011    67,668 
CASH - End of period  $84,434   $86,771 
           
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION          
Cash paid during the period for:          
Interest  $4,136   $14,124 
Income Tax  $25,377   $9,302 
           
NON-CASH INVESTING AND FINANCING ACTIVITES:          
Assets acquired under credit or debt  $4,555   $1,641 

 

 

 

 

Revenues by Region

(Amounts in thousands)

(Unaudited)

 

   Three months ended   Twelve months ended 
   September 30,   September 30, 
   2022   2021   % Change   2022   2021   % Change 
Revenues by Region                              
United States   193,504    123,237    57.0%   604,371    420,733    43.6%
Colombia   4,817    5,234    -8.0%   18,968    31,301    -39.4%
Other Countries   3,459    3,189    8.5%   13,933    15,899    (12.4%)
Total Revenues by Region   201,780    131,659    53.3%   637,271    467,933    36.2%

 

 

 

 

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 the United States.

 

   Three months ended   Twelve months ended 
   September 30,   September 30, 
   2022   2021   % Change   2022   2021   % Change 
                         
Total Revenues with Foreign Currency Held Neutral   202,444    131,659    53.8%   639,181    467,933    36.6%
Impact of changes in foreign currency   (664)   -         (1,910)   -      
Total Revenues, As Reported   201,780    131,659    53.3%   637,271    467,933    36.2%

 

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 
   Sep 30,   Sep 30, 
   2022   2021   2022   2021 
                 
Net (loss) income   46,922    20,659    101,288    48,583 
Less: Income (loss) attributable to non-controlling interest   (196)   (20)   (515)   (160)
(Loss) Income attributable to parent   46,726    20,639    100,773    48,423 
Foreign currency transactions losses (gains)   450    (188)   856    (333)
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other)   538    1,266    1,947    3,524 
Non Recurring professional fees   -    -    3,402    - 
Extinguishment of debt - Call Option Premium   -    -    -    8,610 
Extinguishment of debt - Deferred Costs   -    (175)   -    2,193 
Joint Venture VA (Saint Gobain) adjustments   771    (44)   1,743    102 
Change in FV of Hedging Derivatives   -    4    -    (176)
Tax impact of adjustments at statutory rate   (528)   (276)   (2,384)   (4,454)
Adjusted net (loss) income   47,957    21,226    106,335    57,889 
                     
Basic income (loss) per share   0.98    0.43    2.11    1.02 
Diluted income (loss) per share   0.98    0.43    2.11    1.02 
                     
Diluted Adjusted net income (loss) per share   1.01    0.45    2.23    1.21 
                     
Diluted Weighted Average Common Shares Outstanding in thousands   47,675    47,675    47,675    47,675 
Basic weighted average common shares outstanding in thousands   47,675    47,675    47,675    47,675 
Diluted weighted average common shares outstanding in thousands   47,675    47,675    47,675    47,675 

 

    Three months ended    Nine months ended 
    Sep 30,    Sep 30, 
    2022    2021    2022    2021 
                     
Net (loss) income   46,922    20,659    101,288    48,583 
Less: Income (loss) attributable to non-controlling interest   (196)   (20)   (515)   (160)
(Loss) Income attributable to parent   46,726    20,639    100,773    48,423 
Interest expense and deferred cost of financing   2,249    2,156    5,432    8,120 
Income tax (benefit) provision   22,966    8,866    48,216    20,155 
Depreciation & amortization   4,627    5,098    15,089    15,605 
Foreign currency transactions losses (gains)   450    (188)   856    (333)
Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other)   538    1,266    1,947    3,269 
Non Recurring professional fees   -    -    3,402    - 
Extinguishment of debt - Call Option Premium   -    -    -    8,610 
Extinguishment of debt - Deferred Costs   -    (175)   -    2,193 
Joint Venture VA (Saint Gobain) EBITDA adjustments   948    813    2,709    2,154 
Change in FV of Hedging Derivatives   -    4    -    (176)
Adjusted EBITDA   78,504    38,479    178,422    108,020