STOCK TITAN

Tecnoglass Reports Second Quarter 2024 Results

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags

Tecnoglass (NYSE: TGLS) reported its Q2 2024 results with revenues of $219.7 million, a 2.5% year-over-year decrease but still the second-highest in its history. The company saw record single-family residential revenues of $95.7 million, a 10.1% increase. Net income was $35.0 million or $0.75 per diluted share, while adjusted net income was $40.5 million or $0.86 per diluted share. Adjusted EBITDA reached $64.1 million. Tecnoglass experienced strong cash flow from operations at $34.5 million and a low net leverage ratio of 0.06x. The backlog grew 29% to a record $1.02 billion. The company improved its full-year 2024 outlook, projecting revenues between $860 million and $910 million and adjusted EBITDA between $260 million and $285 million, supported by strong single-family residential orders and operational efficiencies.

Tecnoglass (NYSE: TGLS) ha riportato i risultati del secondo trimestre 2024 con ricavi di 219,7 milioni di dollari, registrando un calo del 2,5% rispetto all'anno precedente, ma rimanendo comunque il secondo valore più alto della sua storia. L'azienda ha visto ricavi record per le abitazioni unifamiliari di 95,7 milioni di dollari, con un aumento del 10,1%. L'utile netto è stato di 35,0 milioni di dollari, ovvero 0,75 dollari per azione diluita, mentre l'utile netto rettificato è stato di 40,5 milioni di dollari, ovvero 0,86 dollari per azione diluita. L'EBITDA rettificato ha raggiunto i 64,1 milioni di dollari. Tecnoglass ha beneficiato di un forte flusso di cassa dalle operazioni, pari a 34,5 milioni di dollari, e un basso rapporto di indebitamento netto di 0,06x. Il portafoglio ordini è cresciuto del 29%, raggiungendo un record di 1,02 miliardi di dollari. L'azienda ha migliorato la sua previsione per l'intero anno 2024, stimando ricavi compresi tra 860 milioni e 910 milioni di dollari e un EBITDA rettificato tra 260 milioni e 285 milioni di dollari, supportati da forti ordini per abitazioni unifamiliari e da efficienze operative.

Tecnoglass (NYSE: TGLS) informó sus resultados del segundo trimestre de 2024 con ingresos de 219,7 millones de dólares, una disminución del 2,5% en comparación con el año anterior, pero aún así el segundo más alto en su historia. La empresa vio ingresos récord en viviendas unifamiliares de 95,7 millones de dólares, un aumento del 10,1%. El ingreso neto fue de 35,0 millones de dólares, o 0,75 dólares por acción diluida, mientras que el ingreso neto ajustado fue de 40,5 millones de dólares, o 0,86 dólares por acción diluida. El EBITDA ajustado alcanzó los 64,1 millones de dólares. Tecnoglass experimentó un fuerte flujo de efectivo de las operaciones, con 34,5 millones de dólares y un bajo ratio de apalancamiento neto de 0,06x. La cartera de pedidos creció un 29%, alcanzando un récord de 1,02 mil millones de dólares. La empresa mejoró su perspectiva para el año completo 2024, proyectando ingresos entre 860 millones y 910 millones de dólares y un EBITDA ajustado entre 260 millones y 285 millones de dólares, respaldada por fuertes órdenes de viviendas unifamiliares y eficiencias operativas.

Tecnoglass (NYSE: TGLS)는 2024년 2분기 결과를 보고하며 수익이 2억 1,970만 달러로, 전년 대비 2.5% 감소했지만 여전히 역사상 두 번째로 높은 수치라고 밝혔습니다. 이 회사는 단독 주택에서 9,570만 달러의 전례 없는 수익을 기록하여 10.1% 증가했습니다. 순이익은 3,500만 달러, 희석 주당 0.75 달러였으며, 조정 후 순이익은 4,050만 달러로 희석 주당 0.86 달러였습니다. 조정된 EBITDA는 6,410만 달러에 달했습니다. Tecnoglass는 3,450만 달러의 운영 현금 흐름과 0.06배의 낮은 순부채비율을 경험했습니다. 수주 잔고는 29% 증가하여 기록적인 10억 2천만 달러에 도달했습니다. 이 회사는 2024년 전체 연간 전망을 개선하여 8억 6천만 달러에서 9억 1천만 달러 사이의 수익과 2억 6천만 달러에서 2억 8천5백만 달러 사이의 조정 EBITDA를 예상하고 있으며, 이는 강력한 단독 주택 주문과 운영 효율성에 의해 지원받고 있습니다.

Tecnoglass (NYSE: TGLS) a annoncé ses résultats du deuxième trimestre 2024 avec des revenus de 219,7 millions de dollars, enregistrant une baisse de 2,5 % par rapport à l'année précédente, mais demeurant tout de même le deuxième montant le plus élevé de son histoire. L'entreprise a enregistré des revenus record de 95,7 millions de dollars pour le secteur des maisons individuelles, soit une augmentation de 10,1 %. Le bénéfice net s'est établi à 35,0 millions de dollars ou 0,75 dollar par action diluée, tandis que le bénéfice net ajusté était de 40,5 millions de dollars ou 0,86 dollar par action diluée. L'EBITDA ajusté a atteint 64,1 millions de dollars. Tecnoglass a connu un flux de trésorerie d'exploitation solide de 34,5 millions de dollars et un faible ratio d'endettement net de 0,06x. Le carnet de commandes a augmenté de 29 % pour atteindre un record de 1,02 milliard de dollars. L'entreprise a amélioré ses prévisions pour l'année complète 2024, en projetant des revenus compris entre 860 millions et 910 millions de dollars et un EBITDA ajusté entre 260 millions et 285 millions de dollars, soutenus par de fortes commandes de maisons individuelles et des efficacités opérationnelles.

Tecnoglass (NYSE: TGLS) berichtete über die Ergebnisse des 2. Quartals 2024 mit einem Umsatz von 219,7 Millionen Dollar, was einem Rückgang von 2,5% im Jahresvergleich entspricht, jedoch den zweit höchsten Umsatz in der Unternehmensgeschichte darstellt. Das Unternehmen verzeichnete Rekordeinnahmen im Bereich von Einfamilienhäusern in Höhe von 95,7 Millionen Dollar, was einem Anstieg von 10,1% entspricht. Der Nettogewinn betrug 35,0 Millionen Dollar oder 0,75 Dollar pro verwässerter Aktie, während der adjustierte Nettogewinn 40,5 Millionen Dollar oder 0,86 Dollar pro verwässerter Aktie betrug. Das adjustierte EBITDA erreichte 64,1 Millionen Dollar. Tecnoglass verzeichnete starken operativen Cashflow von 34,5 Millionen Dollar und ein geringes Netto-Leverage-Verhältnis von 0,06x. Der Auftragsbestand wuchs um 29% auf einen Rekordwert von 1,02 Milliarden Dollar. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 verbessert und erwartet Umsätze zwischen 860 Millionen und 910 Millionen Dollar sowie ein adjustiertes EBITDA zwischen 260 Millionen und 285 Millionen Dollar, unterstützt durch starke Aufträge im Bereich Einfamilienhäuser und operative Effizienz.

Positive
  • Single-family residential revenues increased by 10.1% year-over-year to $95.7 million.
  • Record low net leverage ratio of 0.06x.
  • Record backlog of $1.02 billion, a 29% increase year-over-year.
  • Cash flow from operations was strong at $34.5 million.
  • Improved full-year 2024 revenue outlook to a range of $860 million to $910 million.
  • Adjusted EBITDA expected between $260 million and $285 million for 2024.
Negative
  • Total revenues decreased by 2.5% year-over-year.
  • Net income declined to $35.0 million from $52.6 million year-over-year.
  • Gross profit margin decreased from 48.7% to 40.8% year-over-year.
  • SG&A expenses increased to $38.4 million from $35.2 million year-over-year.
  • Adverse foreign exchange impacts reduced gross margin by 340 basis points.

Insights

Tecnoglass's Q2 2024 results demonstrate strong performance despite macroeconomic challenges. Key highlights include:

  • $219.7 million in revenue, down 2.5% YoY but still the second-highest in company history
  • Record single-family residential revenue of $95.7 million, up 10.1% YoY
  • Adjusted EBITDA of $64.1 million, representing a 29.2% margin
  • Record low net leverage ratio of 0.06x
  • Backlog growth of 29% YoY to $1.02 billion

The company's improved full-year outlook, with revenue expected between $860-910 million and Adjusted EBITDA of $260-285 million, signals confidence in continued growth. However, investors should note the pressure on margins due to FX impacts and higher expenses.

Tecnoglass's Q2 results reveal significant market dynamics:

  • Strong single-family residential demand, with orders up 60% YoY
  • Potential pull-forward effect from Florida's sales tax waiver expiration
  • Softening in multi-family/commercial segment due to higher interest rates
  • Market share gains in outperforming US geographies

The record $1.02 billion backlog provides visibility through 2025 and into 2026, indicating sustained demand for Tecnoglass's products. The company's ability to navigate complex market conditions and capitalize on regional trends suggests a strong competitive position. Investors should monitor the balance between residential and commercial segments as market conditions evolve.

Tecnoglass's operational performance in Q2 2024 shows both strengths and challenges:

  • Gross margin pressure due to FX impact (340 basis points) and higher salary expenses
  • Sequential gross margin improvement of 200 basis points from Q1 2024
  • Strong cash flow generation despite seasonal tax payments
  • Capital expenditures of $20.3 million for future expansion and infrastructure

The company's vertically-integrated operations and focus on efficiency have helped mitigate some headwinds. The low net leverage ratio and $300 million in total liquidity provide financial flexibility. Investors should watch for the impact of operational investments on future margins and the company's ability to manage costs in a dynamic market environment.

- Revenue of $219.7 Million -

- Strong Organic Growth in Single-Family Residential Revenue to a Record $95.7 Million -

- Net Income of $35.0 Million, or $0.75 Per Diluted Share -

- Adjusted Net Income1 of $40.5 Million, or $0.86 Per Diluted Share -

- Adjusted EBITDA1 of $64.1 Million -

- Strong Cash Flow from Operations of $34.5 Million, Representing 54% of Adjusted EBITDA1 -

- All Time Record Low Net Leverage Ratio of 0.06x at Quarter End -

- Backlog Growth Continued Record Trajectory, Expanding 29% Year-Over-Year to a Record $1.02 Billion -

- Single Family Residential Orders Continued Record Trajectory for the Second Quarter, Up Over 60% Versus the Prior Year Quarter -

- Provides Improved Full Year 2024 Outlook -

Miami, FL, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NYSE: TGLS) (“Tecnoglass” or the “Company”), a leading producer of high-end aluminum and vinyl windows and architectural glass for the global residential and commercial end markets, today reported financial results for the second quarter ended June 30, 2024.

José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “Our team demonstrated exceptional performance in the second quarter of 2024, successfully navigating a complex macroeconomic landscape. We maintained strong momentum, capitalizing on the robust demand observed at the end of the first quarter to drive record single-family residential revenues in the second quarter. Our multi-family/commercial business improved sequentially and is expected to continue a positive trend as we move into the second half of the year and into 2025. This outlook is supported by substantial order levels in June, which contributed to another record quarter of backlog. Furthermore, our continued focus on operational efficiencies and prudent working capital management continues to yield benefits, resulting in robust cash flow generation despite the timing of seasonal tax payments made during the quarter. While we face year-over-year margin pressures from a combination of factors, particularly unfavorable foreign exchange impacts, we’re encouraged by the sequential improvement in our profitability and the reasonable stability in FX rates for the last 12 months. We remain confident in our ability to navigate the evolving market landscape and drive additional shareholder value in 2024.”

Christian Daes, Chief Operating Officer of Tecnoglass, added, “We’re proud to report another record multi-year backlog of $1.02 billion, providing strong visibility into our multi-family and commercial project pipeline through 2025 and now building into 2026. The robust demand for our best-in-class product offerings, coupled with our ability to continue taking market share in geographies that are outperforming the broader US market, drove record single-family residential revenues this quarter. The expiration of the ‘Florida Impact-Resistant Windows and Doors Sales Tax Exemption’ in June contributed to record orders for the quarter that positions us for strong single-family residential revenues through year-end. We maintain a growth outlook for the full year reinforced by our established customer relationships, record backlog, innovative product portfolio and the benefits of our vertically-integrated operations. We are well-situated to continue on our journey of innovation and value creation.”

Second Quarter 2024 Results

Total revenues for the second quarter of 2024 decreased 2.5% to $219.7 million, the second-highest revenue quarter in the company´s history, compared to a record $225.3 million in the prior year quarter. Single-family residential revenues increased 10.1% year-over-year to record levels, reflecting improving market trends and what we estimate to be a partial pull-forward effect related to the Florida sales tax waiver. Multi-family/commercial revenues grew sequentially in the second quarter of 2024, but decreased compared to the prior year quarter given record activity during the second quarter 2023 and higher interest and mortgage rates during 2024. Changes in foreign currency exchange rates had an adverse impact of $0.7 million on total revenues in the quarter.

Gross profit for the second quarter of 2024 was $89.6 million, representing a 40.8% gross margin, compared to gross profit of $109.7 million, representing a 48.7% gross margin, in the prior year quarter. The year-over-year change in gross margin reflected an unfavorable foreign exchange impact of nearly 340 basis points, reduced operating leverage on lower revenues coupled with higher salary expenses, and to a lesser extent a less favorable mix of revenues. In line with the last two quarters but at a lesser magnitude given the normalization of FX rates that began in the second quarter of 2023, margins were impacted by a Colombian Peso revaluation of approximately 11% year-over-year. The year-over-year impact of unfavorable foreign exchange is expected to dissipate beginning in the third quarter of 2024 given the relative stabilization of the currency exchange rates during the last twelve months. On a sequential basis, gross margin improved by 200 basis points when compared to 38.8% in the first quarter of 2024.

Selling, general and administrative expense (“SG&A”) was $38.4 million for the second quarter of 2024 compared to $35.2 million in the prior year quarter, with the increase primarily attributable to higher personnel expenses given overall salary adjustments that took place at the beginning of the year. As a percent of total revenues, SG&A was 17.5% for the second quarter of 2024 compared to 15.6% in the prior year quarter, primarily due to lower revenues and the aforementioned salary adjustments.

Net income was $35.0 million, or $0.75 per diluted share, in the second quarter of 2024 compared to net income of $52.6 million, or $1.10 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction loss of $5.6 million in the second quarter of 2024 and a $0.9 million gain in the second quarter of 2023. 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 $40.5 million, or $0.86 per diluted share, in the second quarter of 2024 compared to adjusted net income of $53.5 million, or $1.12 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, was $64.1 million, or 29.2% of total revenues, in the second quarter of 2024, compared to $85.0 million, or 37.7% of total revenues, in the prior year quarter. The change was primarily attributable to the aforementioned factors impacting gross margin as well as lower year-over-year revenues. Adjusted EBITDA1 included a $1.4 million contribution from the Company’s joint venture with Saint-Gobain, compared to $0.3 million in the prior year quarter.

Cash Generation, Capital Allocation and Liquidity

Cash provided by operating activities for the second quarter of 2024 was $34.5 million, primarily driven by a reduction in working capital. Capital expenditures of $20.3 million in the quarter included payments for previously purchased land for future potential capacity expansion, a down payment for the Miami headquarters and the associated flagship showroom, and the amortization of a portion of previously disclosed investments in facilities and operational infrastructure.

During the quarter, the Company returned capital to shareholders through the payment of $5.2 million in cash dividends. Additionally, the Company has approximately $26 million remaining under the current share repurchasing program. During the quarter, the Company also made a $15 million voluntary prepayment to its syndicate term loan facility.

The Company ended the second quarter of 2024 with total liquidity of approximately $300 million, including $127 million of cash and cash equivalents and $170.0 million of availability under its revolving credit facilities. Given the Company’s strong cash generation, net debt leverage was a record low of 0.1x net debt to LTM Adjusted EBITDA1, compared to 0.2x in the prior year.

Full Year 2024 Outlook

Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “We are providing full year outlook ranges for revenue and Adjusted EBITDA that are in aggregate stronger than our previous outlook scenarios. This reflects our strong results through June and our visibility through the remainder of the year. We expect full year 2024 revenues to grow to a range of $860 million to $910 million, representing approximately 6% growth at the midpoint, and entirely organic. We expect Adjusted EBITDA1 to be in the range of $260 million to $285 million. The implied Adjusted EBITDA1 margin of approximately 31% at the midpoint assumes a full year gross margin in the low to mid 40% range, along with healthy free cash flow into year end. This outlook is predicated on a variety of factors including the surge in our single-family residential orders, an expected increase in vinyl sales, an increased mix of revenues from installation and stand-alone product sales, stable FX rates, and the timely execution of our multi-family/commercial backlog through year end. As we look to the remainder of the year, we remain confident in our ability to drive value for our shareholders given the opportunities we see to expand our market share.”

Webcast and Conference Call

Management will host a webcast and conference call on August 8, 2024, at 10:00 a.m. Eastern 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 1-844-826-3035 (domestic) or 1-412-317-5195 (international). Upon dialing in, please request to join the Tecnoglass Second Quarter 2024 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 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) and entering passcode: 10190661.

About Tecnoglass

Tecnoglass Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass 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 5.6 million square foot, vertically integrated, and state-of-the-art manufacturing complex provide efficient access to nearly 1,000 customers in North, Central and South America, with the United States accounting for 95% of total 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.

1 Adjusted 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)

  June 30, 2024  December 31, 2023 
ASSETS        
Current assets:        
Cash and cash equivalents $126,805  $129,508 
Investments  2,699   2,907 
Trade accounts receivable, net  178,790   166,498 
Due from related parties  1,686   1,387 
Inventories  132,497   159,070 
Contract assets – current portion  22,961   17,800 
Other current assets  51,223   58,590 
Total current assets $516,661  $535,760 
Long-term assets:        
Property, plant and equipment, net $323,981  $324,591 
Deferred income taxes  235   169 
Contract assets – non-current  8,541   8,797 
Intangible assets  3,592   3,475 
Goodwill  23,561   23,561 
Long-term investments  60,150   60,570 
Other long-term assets  5,768   5,794 
Total long-term assets  425,828   426,957 
Total assets $942,489  $962,717 
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities:        
Short-term debt and current portion of long-term debt $2,197  $7,002 
Trade accounts payable and accrued expenses  99,572   82,784 
Due to related parties  6,377   7,498 
Dividends payable  5,197   4,265 
Contract liability – current portion  77,406   72,543 
Other current liabilities  22,196   61,794 
Total current liabilities $212,945  $235,886 
Long-term liabilities:        
Deferred income taxes $14,647  $15,793 
Contract liability – non-current  -   14 
Long-term debt  140,058   163,004 
Total long-term liabilities  154,705   178,811 
Total liabilities $367,650  $414,697 
SHAREHOLDERS’ EQUITY        
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively $   $- 
Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 46,996,608 and 46,996,708 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively  5   5 
Legal Reserves  1,458   1,458 
Additional paid-in capital  192,380   192,385 
Retained earnings  454,456   400,035 
Accumulated other comprehensive loss  (73,460)  (45,863)
Total shareholders’ equity  574,839   548,020 
Total liabilities and shareholders’ equity $942,489  $962,717 

Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)

  Three months ended  Six months ended 
  June 30,  June 30, 
  2024  2023  2024  2023 
Operating revenues:                
External customers $218,928  $224,788  $411,017  $427,094 
Related parties  726   492   1,264   825 
Total operating revenues  219,654   225,280   412,281   427,919 
Cost of sales  (130,077)  (115,610)  (248,044)  (210,494)
Gross profit  89,577   109,670   164,237   217,425 
Operating expenses:                
Selling expense  (20,000)  (20,487)  (37,583)  (36,807)
General and administrative expense  (18,443)  (14,682)  (34,498)  (32,437)
Total operating expenses  (38,443)  (35,169)  (72,081)  (69,244)
Operating income  51,134   74,501   92,156   148,181 
Non-operating income, net  2,731   1,625   3,811   2,912 
Equity method income  1,237   1,119   2,283   2,568 
Foreign currency transactions (loss) gains  (5,575)  889   (5,728)  (211)
Interest expense and deferred cost of financing  (2,006)  (2,321)  (4,112)  (4,594)
Income before taxes  47,521   75,813   88,410   148,856 
Income tax provision  (12,493)  (23,248)  (23,652)  (47,919)
Net income $35,028  $52,565  $64,758  $100,937 
Income attributable to non-controlling interest  -   (120)  -   (257)
Income attributable to parent $35,028  $52,445  $64,758  $100,680 
Basic income per share $0.75  $1.10  $1.38  $2.12 
Diluted income per share $0.75   1.10  $1.38  $2.12 
Basic weighted average common shares outstanding  46,996,705   47,647,041   46,996,706   47,674,403 
Diluted weighted average common shares outstanding  46,996,705   47,647,041   46,996,706   47,674,403 
Other comprehensive income:                
Foreign currency translation adjustments  (28,321)  27,238   (28,291)  35,049 
Change in fair value of derivative contracts  (342)  1,823   694   (14)
Total other comprehensive income  (28,663)  29,061   (27,597)  35,035 
Total comprehensive income $6,365  $81,626  $37,161  $135,972 
Income attributable to non-controlling interest  -   (120)  -   (257)
Total comprehensive income attributable to parent $6,365  $81,506  $37,161  $135,715 

Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

  Six months ended June 30, 
  2024  2023 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income $64,758  $100,937 
Adjustments to reconcile net income to net cash provided by operating activities:        
Allowance for credit losses  275   1,899 
Depreciation and amortization  12,788   9,914 
Deferred income taxes  1,456   4,130 
Equity method income  (2,283)  (2,568)
Deferred cost of financing  640   610 
Other non-cash adjustments  32   118 
Unrealized currency translation (gains) loss  741   (14,609)
Changes in operating assets and liabilities:        
Trade accounts receivable  (5,913)  (24,778)
Inventories  14,395   (15,584)
Prepaid expenses  (1,743)  (1,660)
Other assets  8,827   (22,550)
Trade accounts payable and accrued expenses  12,695   16,167 
Taxes payable  (36,961)  (20,153)
Labor liabilities  (121)  345 
Other liabilities  42   (57)
Contract assets and liabilities  (3,192)  10,843 
Related parties  1,509   210 
CASH PROVIDED BY OPERATING ACTIVITIES $67,945  $43,214 
         
CASH FLOWS FROM INVESTING ACTIVITIES        
Dividends received  2,703     
Purchase of investments  (317)  (193)
Acquisition of property and equipment  (30,188)  (37,886)
CASH USED IN INVESTING ACTIVITIES $(27,802) $(38,079)
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Cash dividend  (9,407)  (7,868)
Minority stock purchase  (2,500)    
Stock buyback  (5)  (56)
Proceeds from debt  2,571   98 
Repayments of debt  (30,986)  (6)
CASH USED IN FINANCING ACTIVITIES $(40,327) $(7,832)
         
Effect of exchange rate changes on cash and cash equivalents $(2,519) $3,711 
         
NET (DCREASE) INCREASE IN CASH  (2,703)  1,014 
CASH - Beginning of period  129,508   103,672 
CASH - End of period $126,805  $104,686 
         
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION        
Cash paid during the period for:        
Interest $5,559  $5,556 
Income Tax $59,607  $82,807 
         
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Assets acquired under credit or debt $4,572  $7,223 

Revenues by Region
(Amounts in thousands)
(Unaudited)

  Three months ended 
  June 30, 
  2024  2023  % Change 
Revenues by Region            
United States  209,697   214,725   -2.3%
Colombia  5,831   5,962   -2.2%
Other Countries  4,126   4,593   (10.2)%
Total Revenues by Region  219,654   225,280   -2.5%

Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures
(In thousands)
(Unaudited)

The Company believes that total revenues with foreign currency held neutral, which are not performance measures under generally accepted accounting principles (“GAAP”), 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. Management uses such performance measures in managing and evaluating the Company’s business. 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 
  June 30, 
  2024  2023  % Change 
          
Total Revenues with Foreign Currency Held Neutral  218,988   225,280   -2.8%
Impact of changes in foreign currency  666   -     
Total Revenues, As Reported  219,654   225,280   -2.5%

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 non-GAAP performance measures. Management believes Adjusted EBITDA and adjusted net (loss) income, in addition to operating profit, net (loss) income and other GAAP measures, are useful to investors to evaluate the Company’s results because they exclude 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. Items excluded to arrive at forward-looking non-GAAP measures may have a significant, and potentially unpredictable, impact on our future GAAP results.

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  Six months ended 
  June 30,  June 30, 
  2024  2023  2024  2023 
             
Net (loss) income  35,028   52,565   64,758   100,937 
Less: Income (loss) attributable to non-controlling interest  -   (120)  -   (257)
(Loss) Income attributable to parent  35,028   52,445   64,758   100,680 
Foreign currency transactions losses (gains)  5,575   (889)  5,728   211 
Provision for bad debt  150   985   275   1,899 
Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items)  968   1,436   1,639   3,797 
Joint Venture VA (Saint Gobain) adjustments  1,409   (43)  2,192   392 
Tax impact of adjustments at statutory rate  (2,593)  (476)  (3,147)  (2,016)
Adjusted net (loss) income  40,537   53,458   71,445   104,963 
                 
Basic income (loss) per share  0.75   1.10   1.38   2.12 
Diluted income (loss) per share  0.75   1.10   1.38   2.12 
Diluted Adjusted net income (loss) per share  0.86   1.12   1.52   2.20 
                 
Diluted Weighted Average Common Shares Outstanding in thousands  46,997   47,675   46,997   47,675 
Basic weighted average common shares outstanding in thousands  46,997   47,675   46,997   47,675 
Diluted weighted average common shares outstanding in thousands  46,997   47,675   46,997   47,675 


  Three months ended  Six months ended 
  June 30,  June 30, 
  2024  2023  2024  2023 
             
Net (loss) income  35,028   52,565   64,758   100,937 
Less: Income (loss) attributable to non-controlling interest  -   (120)  -   (257)
(Loss) Income attributable to parent  35,028   52,445   64,758   100,680 
Interest expense and deferred cost of financing  2,006   2,321   4,112   4,594 
Income tax (benefit) provision  12,493   23,248   23,652   47,919 
Depreciation & amortization  6,463   5,147   12,779   9,914 
Foreign currency transactions losses (gains)  5,575   (889)  5,728   211 
Provision for bad debt  150   985   275   1,899 
Non-Recurring expenses (non-recurring professional fees, capital market fees, other non-core items)  968   1,436   1,639   3,797 
Joint Venture VA (Saint Gobain) EBITDA adjustments  1,409   313   2,192   1,828 
Adjusted EBITDA  64,092   85,006   115,135   170,842 

FAQ

What were Tecnoglass's Q2 2024 earnings?

Tecnoglass reported Q2 2024 net income of $35.0 million, or $0.75 per diluted share.

How did Tecnoglass's revenue perform in Q2 2024?

Tecnoglass's Q2 2024 revenue was $219.7 million, a 2.5% decrease from the prior year.

What is Tecnoglass's full-year 2024 revenue outlook?

Tecnoglass expects full-year 2024 revenues to be between $860 million and $910 million.

What is Tecnoglass's backlog as of Q2 2024?

Tecnoglass's backlog grew 29% year-over-year to a record $1.02 billion in Q2 2024.

How did Tecnoglass's single-family residential revenue perform in Q2 2024?

Single-family residential revenue for Tecnoglass reached a record $95.7 million in Q2 2024, a 10.1% increase year-over-year.

What factors impacted Tecnoglass's gross profit margin in Q2 2024?

Tecnoglass's gross profit margin in Q2 2024 was impacted by unfavorable foreign exchange rates and higher salary expenses, decreasing from 48.7% to 40.8% year-over-year.

What was Tecnoglass's adjusted EBITDA for Q2 2024?

Tecnoglass's adjusted EBITDA for Q2 2024 was $64.1 million.

Tecnoglass Inc.

NYSE:TGLS

TGLS Rankings

TGLS Latest News

TGLS Stock Data

3.41B
47.00M
52.66%
47.87%
8.1%
Building Materials
Flat Glass
Link
United States of America
MIAMI