Tecnoglass, Inc.
(NASDAQ: TGLS) (“Tecnoglass” or the
“Company”),
a leading manufacturer
of architectural glass, windows, and associated aluminum products
for the global commercial and residential construction industries,
today reported financial results for the second quarter ended June
30, 2020.
José Manuel Daes, Chief Executive Officer of
Tecnoglass, commented, “I could not be more pleased with our
talented employees for their ability to overcome this unprecedented
environment while maintaining dedication to excellence, as
demonstrated by our results. We achieved record gross margin,
operating margin and Adjusted EBITDA1 margin in the second quarter
without taking any headcount reductions related to the economic
impacts of the COVID-19 crisis. Since reopening our production
facilities in the second half of April, the pace of invoicing
improved significantly as we progressed through the quarter,
particularly in the U.S. which represented 97% of second quarter
revenues. In June, we hit a monthly record level of residential
orders, and that momentum carried into July. Our strong working
capital management as well as benefits from our high return
automation initiatives collectively allowed us to generate record
levels of free cash flow. In turn, we were able to deleverage our
balance sheet and continue strengthening our financial flexibility,
with liquidity of $136 million at quarter end. As we look forward,
we believe we have the financial resources to continue executing
our growth strategy and further enhancing our position as a premier
architectural glass leader.”
Christian Daes, Chief Operating Officer of
Tecnoglass, stated, “For the second quarter, taking into account
two non-invoicing weeks in early April, we estimate our U.S.
revenues would have been down in the high-single digit percent
range year-over-year. We believe that the worst of the
pandemic-related economic crisis is behind us. In nearly all of our
regions, economic lockdowns are easing and business conditions have
started to recover. Despite a recent uptick in COVID-19 cases in
Florida and the rest of the United States, we are now seeing
quoting and bidding activity that is in line with pre-pandemic
levels, as reflected by our record backlog. On the residential
side, our business has accelerated in recent months supported by
low interest rates and de-urbanization trends driving new home
starts. We believe these positive tailwinds coupled with our lean
cost structure and strong liquidity leave us well positioned to
maintain our industry leading margins as we work to deepen our
presence and capture additional share in attractive U.S.
markets.”
Second Quarter 2020 Results
Total revenues for the second quarter of 2020
were $81.9 million compared to $113.9 million in the prior year
quarter. The decrease was primarily attributable to two fewer weeks
of invoicing in the first half of April as a result of the
previously communicated suspension of plant operations. This
proactive action was taken to assess global market conditions at
the onset of the COVID-19 pandemic and timed in parallel with
shelter-in-place guidelines by the Colombian government, during
which time the production facilities were reconfigured to mitigate
any potential risks of contagion. Since April, the Company
experienced a positive sequential revenue trend in May and June.
U.S. revenues were $79.1 million compared to $99.3 million in the
prior year quarter, and represented 96.6% of total revenues for the
second quarter 2020. Revenues in Colombia and other Latin American
regions were significantly impacted by delayed activity at many
customer job sites that have required extensive preparations to
adhere to varying COVID-19 guidelines. Changes in foreign currency
exchange rates had a negligible impact on Colombia and total
revenues in the quarter.
Gross profit for the second quarter of 2020 was
$31.8 million, representing a 38.8% gross margin, compared to gross
profit of $38.8 million, representing a 34.1% gross margin in the
prior year quarter. The 470 basis point improvement in gross margin
mainly reflected lower raw material costs, greater operating
efficiencies from prior automation initiatives, and a higher mix of
revenue from manufacturing vs installation activity. Selling,
general and administrative expense (“SG&A”) was $16.5 million
compared to $20.6 million in the prior year quarter, primarily
attributable to lower variable expenses related to shipping, travel
and commissions, as well as cost controls. As a percent of total
revenues, SG&A was 20.2% compared to 18.1% in the prior year
quarter due to lower revenues.
Net income was $16.1 million, or $0.35 per
diluted share, in the second quarter of 2020 compared to net income
of $7.7 million, or $0.17 per diluted share, in the prior year
quarter, including an after-tax non-cash foreign exchange
transaction gain of $13.3 million in the second quarter 2020 and a
$1.2 million loss in the second quarter 2019. As with previous
periods, these 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 $9.4 million, or $0.20 per diluted share, compared to
adjusted a net income of $9.2 million, or $0.20 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 $23.3 million, or 28.4% of revenues, compared to $25.8
million, or 22.6% of revenues, in the prior year quarter. The
improvement was driven by stronger gross margin. Adjusted EBITDA1
in the second quarter 2020 included $0.9 million in contribution
from the Company’s joint venture with Saint-Gobain, compared to
$1.0 million in the prior year quarter.
Dividend
The Company declared a quarterly cash dividend
of $0.0275 per share for the second quarter of 2020, which was paid
on July 31, 2020 to shareholders of record as of the close of
business on July 8, 2020.
Business Outlook
Santiago Giraldo, Chief Financial Officer of
Tecnoglass, concluded, “The improving sequential monthly revenue
trends that we experienced during the second quarter continued into
July. Based on our current invoicing schedule and underlying market
environment, we expect revenue in the third quarter to continue on
a positive sequential monthly trend. As we execute our strategy
during this extraordinary period, we will maintain our focus on
safely serving customers, aggressively managing costs and
delivering strong cash flow. While uncertainty persists associated
with COVID-19 developments, we believe we are well situated to
outperform our markets as global economic conditions further
improve.”
Webcast and Conference
Call
Management will host a webcast and conference
call on Thursday, August 6, 2020 at 9:00 a.m. eastern time (8:00
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. Due to potential extended wait times to access the
conference call via dial-in, the Company encourages use of the
webcast. For those unable to access the webcast, the conference
call will be accessible by dialing 1-855-327-6837 (domestic) or
1-631-891-4304 (international). Upon dialing in, please request to
join the Tecnoglass Second Quarter 2020 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 (844) 512-2921 (Domestic)
or (412) 317-6671 (International) and entering pass code:
10010493.
About Tecnoglass
Tecnoglass Inc. is a leading manufacturer of
architectural glass, windows, and associated aluminum products for
the global commercial and residential construction industries.
Tecnoglass is the #1 architectural glass transformation company in
Latin America and the second largest glass fabricator serving the
United States. Headquartered in Barranquilla, Colombia, the Company
operates out of a 2.7 million square foot vertically-integrated,
state- of-the-art manufacturing complex that provides easy access
to the Americas, the Caribbean, and the Pacific. Tecnoglass
supplies over 1000 customers in North, Central and South America,
with the United States accounting for more than 80% of revenues.
Tecnoglass' tailored, high-end products are found on some of the
world's most distinctive properties, including the El Dorado
Airport (Bogota), 50 United Nations Plaza (New York), Trump Plaza
(Panama), Icon Bay (Miami), and Salesforce Tower (San Francisco).
For more information, please visit www.tecnoglass.com or view
our corporate video at https://vimeo.com/134429998.
Forward Looking Statements
This press release includes certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding future financial performance, future growth and future
acquisitions. These statements are based on Tecnoglass’ current
expectations or beliefs and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in
economic, business, competitive and/or regulatory factors, and
other risks and uncertainties affecting the operation of
Tecnoglass’ business. These risks, uncertainties and contingencies
are indicated from time to time in Tecnoglass’ filings with the
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Further, investors
should keep in mind that Tecnoglass’ financial results in any
particular period may not be indicative of future results.
Tecnoglass is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events and changes
in assumptions or otherwise, except as required by law.
[1] Adjusted net income (loss) and Adjusted
EBITDA in both periods are reconciled in the table below.
Investor Relations:
Santiago
GiraldoCFO305-503-9062investorrelations@tecnoglass.com
Tecnoglass Inc. and
SubsidiariesConsolidated Balance
Sheets (In thousands, except share and per
share data)(Unaudited)
|
|
June
30, |
|
|
December
31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
63,424 |
|
|
|
$ |
47,862 |
|
|
Investments |
|
|
1,818 |
|
|
|
|
2,304 |
|
|
Trade accounts receivable, net |
|
|
91,010 |
|
|
|
|
110,558 |
|
|
Due from related parties |
|
|
8,777 |
|
|
|
|
8,057 |
|
|
Inventories |
|
|
79,454 |
|
|
|
|
82,714 |
|
|
Contract assets – current portion |
|
|
34,879 |
|
|
|
|
42,014 |
|
|
Other current assets |
|
|
24,298 |
|
|
|
|
29,340 |
|
|
Total current assets |
|
$ |
303,660 |
|
|
|
$ |
322,849 |
|
|
|
|
|
|
|
|
|
|
|
Long-term assets: |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
$ |
136,666 |
|
|
|
$ |
154,609 |
|
|
Deferred income taxes |
|
|
11,676 |
|
|
|
|
4,595 |
|
|
Contract assets – non-current |
|
|
8,707 |
|
|
|
|
7,059 |
|
|
Due from related parties - long term |
|
|
1,089 |
|
|
|
|
1,786 |
|
|
Long-term trade accounts receivable |
|
|
1,101 |
|
|
|
|
- |
|
|
Intangible assets |
|
|
5,695 |
|
|
|
|
6,703 |
|
|
Goodwill |
|
|
23,561 |
|
|
|
|
23,561 |
|
|
Long-term investments |
|
|
45,691 |
|
|
|
|
45,596 |
|
|
Other long-term assets |
|
|
2,892 |
|
|
|
|
2,910 |
|
|
Total long-term assets |
|
|
237,078 |
|
|
|
|
246,819 |
|
|
Total assets |
|
$ |
540,738 |
|
|
|
$ |
569,668 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt |
|
$ |
18,744 |
|
|
|
$ |
16,084 |
|
|
Trade accounts payable and accrued expenses |
|
|
51,855 |
|
|
|
|
61,878 |
|
|
Accrued interest expense |
|
|
7,502 |
|
|
|
|
7,645 |
|
|
Due to related parties |
|
|
5,134 |
|
|
|
|
4,415 |
|
|
Dividends payable |
|
|
1,309 |
|
|
|
|
67 |
|
|
Contract liability – current portion |
|
|
18,834 |
|
|
|
|
12,459 |
|
|
Due to equity partners |
|
|
10,900 |
|
|
|
|
10,900 |
|
|
Other current liabilities |
|
|
6,894 |
|
|
|
|
15,563 |
|
|
Total current liabilities |
|
$ |
121,172 |
|
|
|
$ |
129,011 |
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Deferred income taxes |
|
$ |
817 |
|
|
|
$ |
411 |
|
|
Long-term payable associated to GM&P acquisition |
|
|
8,500 |
|
|
|
|
8,500 |
|
|
Long-term liabilities from related parties |
|
|
634 |
|
|
|
|
622 |
|
|
Contract liability – non-current |
|
|
83 |
|
|
|
|
187 |
|
|
Long-term debt |
|
|
243,808 |
|
|
|
|
243,727 |
|
|
Total long-term liabilities |
|
|
253,842 |
|
|
|
|
253,447 |
|
|
Total liabilities |
|
$ |
375,014 |
|
|
|
$ |
382,458 |
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Preferred shares, $0.0001 par value, 1,000,000 shares
authorized, 0 shares issued and outstanding at June 30, 2020 and
December 31, 2019 respectively |
|
$ |
- |
|
|
|
$ |
- |
|
|
Ordinary shares, $0.0001 par value, 100,000,000 shares
authorized, 46,117,631 and 46,117,631 shares issued and outstanding
at June 30, 2020 and December 31, 2019, respectively |
|
|
5 |
|
|
|
|
5 |
|
|
Legal Reserves |
|
|
2,273 |
|
|
|
|
1,367 |
|
|
Additional paid-in capital |
|
|
208,390 |
|
|
|
|
208,283 |
|
|
Retained earnings |
|
|
10,127 |
|
|
|
|
16,213 |
|
|
Accumulated other comprehensive (loss) |
|
|
(55,632 |
) |
|
|
|
(39,264 |
) |
|
Shareholders’ equity attributable to controlling
interest |
|
|
165,163 |
|
|
|
|
186,604 |
|
|
Shareholders’ equity attributable to non-controlling
interest |
|
|
561 |
|
|
|
|
606 |
|
|
Total shareholders’ equity |
|
|
165,724 |
|
|
|
|
187,210 |
|
|
Total liabilities and shareholders’
equity |
|
$ |
540,738 |
|
|
|
$ |
569,668 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated 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, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers |
|
$ |
81,590 |
|
|
$ |
112,259 |
|
|
$ |
167,696 |
|
|
$ |
217,067 |
|
|
Related parties |
|
|
352 |
|
|
|
1,624 |
|
|
|
1,544 |
|
|
|
3,984 |
|
|
Total operating revenues |
|
|
81,942 |
|
|
|
113,883 |
|
|
|
169,240 |
|
|
|
221,051 |
|
|
Cost of sales |
|
|
50,146 |
|
|
|
75,046 |
|
|
|
107,017 |
|
|
|
150,322 |
|
|
Gross profit |
|
|
31,796 |
|
|
|
38,837 |
|
|
|
62,223 |
|
|
|
70,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
(8,961 |
) |
|
|
(11,219 |
) |
|
|
(18,629 |
) |
|
|
(20,781 |
) |
|
General and administrative expense |
|
|
(7,610 |
) |
|
|
(9,354 |
) |
|
|
(15,220 |
) |
|
|
(17,448 |
) |
|
Total operating expenses |
|
|
(16,571 |
) |
|
|
(20,573 |
) |
|
|
(33,849 |
) |
|
|
(38,229 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
15,225 |
|
|
|
18,264 |
|
|
|
28,374 |
|
|
|
32,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating (expenses) income, net |
|
|
7 |
|
|
|
353 |
|
|
|
(94 |
) |
|
|
628 |
|
|
Equity method income |
|
|
(166 |
) |
|
|
(22 |
) |
|
|
94 |
|
|
|
(22 |
) |
|
Foreign currency transactions (losses) gains |
|
|
13,309 |
|
|
|
(1,201 |
) |
|
|
(19,157 |
) |
|
|
2,085 |
|
|
Interest expense and deferred cost of financing |
|
|
(5,446 |
) |
|
|
(5,757 |
) |
|
|
(11,089 |
) |
|
|
(11,344 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income before taxes |
|
|
22,929 |
|
|
|
11,637 |
|
|
|
(1,872 |
) |
|
|
23,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (provision) |
|
|
(6,875 |
) |
|
|
(3,977 |
) |
|
|
(742 |
) |
|
|
(8,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
16,054 |
|
|
$ |
7,660 |
|
|
$ |
(2,614 |
) |
|
$ |
14,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Income) Loss attributable to non-controlling interest |
|
|
143 |
|
|
|
(181 |
) |
|
|
45 |
|
|
|
(174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income attributable to parent |
|
$ |
16,197 |
|
|
$ |
7,479 |
|
|
$ |
(2,569 |
) |
|
$ |
14,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
16,054 |
|
|
$ |
7,660 |
|
|
$ |
(2,614 |
) |
|
$ |
14,991 |
|
|
Foreign currency translation adjustments |
|
|
4,367 |
|
|
|
(2,052 |
) |
|
|
(14,921 |
) |
|
|
(282 |
) |
|
Change in fair value derivative contracts |
|
|
2,618 |
|
|
|
- |
|
|
|
(1,447 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive (loss) income |
|
$ |
23,039 |
|
|
$ |
5,608 |
|
|
$ |
(18,982 |
) |
|
$ |
14,709 |
|
|
Comprehensive (income) loss attributable to non-controlling
interest |
|
|
143 |
|
|
|
(181 |
) |
|
|
45 |
|
|
|
(174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive (loss) income attributable to
parent |
|
$ |
23,182 |
|
|
$ |
5,427 |
|
|
$ |
(18,937 |
) |
|
$ |
14,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income per share |
|
$ |
0.35 |
|
|
$ |
0.17 |
|
|
$ |
(0.06 |
) |
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income per share |
|
$ |
0.35 |
|
|
$ |
0.17 |
|
|
$ |
(0.06 |
) |
|
$ |
0.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
|
46,117,631 |
|
|
|
45,653,893 |
|
|
|
46,117,631 |
|
|
|
42,989,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
|
46,117,631 |
|
|
|
46,144,017 |
|
|
|
46,117,631 |
|
|
|
43,479,716 |
|
|
Tecnoglass Inc. and
SubsidiariesConsolidated Statements of Cash
Flows (In
thousands)(Unaudited)
|
|
Six months
ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(2,614 |
) |
|
|
$ |
14,991 |
|
|
Adjustments to reconcile net (loss) income to net cash provided
by (used in) operating activities: |
|
|
|
|
|
|
|
|
Provision for bad debts |
|
|
691 |
|
|
|
|
524 |
|
|
Depreciation and amortization |
|
|
10,205 |
|
|
|
|
11,558 |
|
|
Deferred income taxes |
|
|
(6,478 |
) |
|
|
|
(317 |
) |
|
Equity method income |
|
|
(94 |
) |
|
|
|
22 |
|
|
Deferred cost of financing |
|
|
861 |
|
|
|
|
808 |
|
|
Other non-cash adjustments |
|
|
44 |
|
|
|
|
28 |
|
|
Unrealized currency translation losses (gains) |
|
|
23,585 |
|
|
|
|
(59 |
) |
|
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivables |
|
|
13,785 |
|
|
|
|
(22,065 |
) |
|
Inventories |
|
|
(8,252 |
) |
|
|
|
2,078 |
|
|
Prepaid expenses |
|
|
(1,017 |
) |
|
|
|
(1,232 |
) |
|
Other assets |
|
|
1,363 |
|
|
|
|
(1,367 |
) |
|
Trade accounts payable and accrued expenses |
|
|
(10,358 |
) |
|
|
|
12,635 |
|
|
Accrued interest expense |
|
|
(84 |
) |
|
|
|
194 |
|
|
Taxes payable |
|
|
(5,911 |
) |
|
|
|
(1,787 |
) |
|
Labor liabilities |
|
|
(982 |
) |
|
|
|
(327 |
) |
|
Contract assets and liabilities |
|
|
11,246 |
|
|
|
|
(9,682 |
) |
|
Related parties |
|
|
(1,200 |
) |
|
|
|
1,250 |
|
|
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES |
|
$ |
24,789 |
|
|
|
$ |
7,253 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from sale of investments |
|
|
364 |
|
|
|
|
608 |
|
|
Joint Venture investment |
|
|
|
|
|
|
(34,100 |
) |
|
Purchase of investments |
|
|
(167 |
) |
|
|
|
(676 |
) |
|
Acquisition of property and equipment |
|
|
(7,395 |
) |
|
|
|
(13,778 |
) |
|
CASH USED IN INVESTING ACTIVITIES |
|
$ |
(7,198 |
) |
|
|
$ |
(47,946 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Cash dividend |
|
|
(1,265 |
) |
|
|
|
(2,170 |
) |
|
Proceeds from equity offering |
|
|
|
|
|
|
36,478 |
|
|
Proceeds from debt |
|
|
17,796 |
|
|
|
|
38,480 |
|
|
Repayments of debt |
|
|
(14,698 |
) |
|
|
|
(17,660 |
) |
|
CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES |
|
$ |
1,833 |
|
|
|
$ |
55,127 |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
|
$ |
(3,962 |
) |
|
|
$ |
164 |
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH |
|
|
15,562 |
|
|
|
|
14,599 |
|
|
CASH - Beginning of period |
|
|
47,862 |
|
|
|
|
33,040 |
|
|
CASH - End of period |
|
$ |
63,424 |
|
|
|
$ |
47,639 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
9,513 |
|
|
|
$ |
9,529 |
|
|
Income Tax |
|
$ |
2,964 |
|
|
|
$ |
8,369 |
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING ACTIVITES: |
|
|
|
|
|
|
|
|
Assets acquired under credit or debt |
|
$ |
907 |
|
|
|
$ |
1,389 |
|
|
Revenues by
Region(Amounts in
thousands)(Unaudited)
|
Three months ended |
|
Jun 30, |
2020 |
|
2019 |
|
% Change |
Revenues by Region |
|
|
|
|
|
United States |
79,148 |
|
99,327 |
|
-20.3 |
% |
Colombia |
1,820 |
|
12,165 |
|
-85.0 |
% |
Other Countries |
973 |
|
2,392 |
|
-59.3 |
% |
Total Revenues by Region |
81,941 |
|
113,883 |
|
-28.0 |
% |
Reconciliation of Non-GAAP Performance
Measures to GAAP Performance
Measures(In
thousands)(Unaudited)
The Company believes that total revenues with
foreign currency held neutral non-GAAP performance measures, which
management uses in managing and evaluating the Company's business,
may provide users of the Company's financial information with
additional meaningful bases for comparing the Company's current
results and results in a prior period, as these measures reflect
factors that are unique to one period relative to the comparable
period. However, these non‑GAAP performance measures should be
viewed in addition to, and not as an alternative for, the Company's
reported results under accounting principles generally accepted in
the United States.
|
Three months ended |
|
Jun 30, |
2020 |
|
|
2019 |
|
% Change |
|
|
|
|
|
|
Total Revenues with Foreign Currency Held
Neutral |
82,107 |
|
|
113,883 |
|
-27.9 |
% |
Impact of changes in foreign currency |
(166 |
) |
|
- |
|
|
Total Revenues, As Reported |
81,941 |
|
|
113,883 |
|
-28.0 |
% |
Currency impacts on total revenues for the
current quarter have been derived by translating current quarter
revenues at the prevailing average foreign currency rates during
the prior year quarter, as applicable.
Reconciliation of Adjusted EBITDA and
Adjusted net (loss) income to net (loss) income(In
thousands, except share and per share
data)(Unaudited)
Adjusted EBITDA and adjusted net (loss) income
are not measures of financial performance under generally accepted
accounting principles (“GAAP”). Management believes Adjusted EBITDA
and adjusted net (loss) income, in addition to operating profit,
net (loss) income and other GAAP measures, is useful to investors
to evaluate the Company’s results because it excludes certain items
that are not directly related to the Company’s core operating
performance. Investors should recognize that Adjusted EBITDA and
adjusted net (loss) income might not be comparable to
similarly-titled measures of other companies. These measures should
be considered in addition to, and not as a substitute for or
superior to, any measure of performance prepared in accordance with
GAAP.
Reconciliations of the non-GAAP measures used in
this press release are included in the tables attached to this
press release, to the extent available without unreasonable effort.
Because GAAP financial measures on a forward-looking basis are not
accessible, and reconciling information is not available without
unreasonable effort, we have not provided reconciliations for
forward-looking non-GAAP measures.
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, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
16,054 |
|
|
7,660 |
|
|
(2,614 |
) |
|
14,991 |
|
Less: Income (loss) attributable to non-controlling interest |
|
|
143 |
|
|
(181 |
) |
|
45 |
|
|
(174 |
) |
(Loss) Income attributable to
parent |
|
|
16,197 |
|
|
7,479 |
|
|
(2,569 |
) |
|
14,817 |
|
Foreign currency transactions losses (gains) and FX derivatives
settlements |
|
|
(11,951 |
) |
|
1.201 |
|
|
20,515 |
|
|
(2,085 |
) |
Deferred cost of financing |
|
|
508 |
|
|
415 |
|
|
948 |
|
|
808 |
|
Non-Recurring expenses (extinguishment of debt, bond issuance
costs, provision for bad debt, acquisition related costs and
other) |
|
|
910 |
|
|
681 |
|
|
1,805 |
|
|
1,425 |
|
Joint Venture VA (Saint Gobain) adjustments |
|
|
567 |
|
|
273 |
|
|
939 |
|
|
273 |
|
Tax impact of adjustments at statutory rate |
|
|
3,189 |
|
|
(822 |
) |
|
(7,746 |
) |
|
(135 |
) |
Adjusted net (loss) income |
|
|
9,420 |
|
|
9,227 |
|
|
13,892 |
|
|
15,103 |
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share |
|
|
0.35 |
|
|
0.17 |
|
|
(0.06 |
) |
|
0.35 |
|
Diluted income (loss) per share |
|
|
0.35 |
|
|
0.17 |
|
|
(0.06 |
) |
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Adjusted net income (loss) per share |
|
|
0.20 |
|
|
0.20 |
|
|
0.30 |
|
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted Average Common Shares Outstanding in
thousands |
|
|
46,118 |
|
|
46,114 |
|
|
46,118 |
|
|
43,480 |
|
Basic weighted average common shares outstanding in thousands |
|
|
46,118 |
|
|
45,654 |
|
|
46,118 |
|
|
42,990 |
|
Diluted weighted average common shares outstanding in
thousands |
|
|
46,118 |
|
|
46,114 |
|
|
46,118 |
|
|
43,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
16,054 |
|
|
7,660 |
|
|
(2,614 |
) |
|
14,991 |
|
Less: Income (loss) attributable to non-controlling interest |
|
|
143 |
|
|
(181 |
) |
|
45 |
|
|
(174 |
) |
(Loss) Income attributable to
parent |
|
|
16,197 |
|
|
7,479 |
|
|
(2,569 |
) |
|
14,817 |
|
Interest expense and deferred cost of financing |
|
|
5,446 |
|
|
5,757 |
|
|
11,089 |
|
|
11,344 |
|
Income tax (benefit) provision |
|
|
6,875 |
|
|
3,977 |
|
|
742 |
|
|
8,856 |
|
Depreciation & amortization |
|
|
4,964 |
|
|
5,717 |
|
|
10,205 |
|
|
11,558 |
|
Foreign currency transactions losses (gains) and FX derivatives
settlements |
|
|
(11,951 |
) |
|
1,201 |
|
|
20,515 |
|
|
(2,085 |
) |
Non-Recurring expenses (extinguishment of debt, bond issuance
costs, provision for bad debt, acquisition related costs and
other) |
|
|
911 |
|
|
681 |
|
|
1,806 |
|
|
1,425 |
|
Joint Venture VA (Saint Gobain) EBITDA adjustments |
|
|
869 |
|
|
973 |
|
|
1,868 |
|
|
973 |
|
Adjusted EBITDA |
|
|
23,311 |
|
|
25,785 |
|
|
43,656 |
|
|
46,888 |
|
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