Tecnoglass Reports First Quarter 2017 Results and Reaffirms Full Year 2017 Outlook
Total Revenues Up 3% to Record $65.8 Million Backlog Increased to $474 Million Through Organic Expansion and Acquisition of GM&P Announces 12% Increase in Quarterly Dividend Beginning in Third Quarter of 2017
(firmenpresse) - BARRANQUILLA, COLOMBIA -- (Marketwired) -- 05/12/17 -- (NASDAQ: TGLS)
Total revenues of $65.8 million
Net income of $1.0 million
Adjusted EBITDA(1) of $13.7 million
Enhanced vertical integration through acquisition of Giovanni Monti and Partners Consulting and Glazing Contractors, Inc. ("GM&P"), a Florida-based commercial consulting, glazing and engineering company, specializing in windows and doors for commercial contractors. Opened branch in West Coast to service new market opportunities
Initiated first phase of 12 megawatt solar panel installation project at manufacturing facility in Barranquilla, Colombia, which is expected to provide energy cost and tax savings
Opened sales branch in Pordenone, Italy to serve the Company''s newly started operations in the Europe and Middle East regions
(NASDAQ: TGLS), 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 first quarter ended March 31, 2017
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, "Since the beginning of 2017, we have further enhanced our multi-market leadership positions and situated our business for another year of outpaced growth on our highly efficient, low-cost operations. Our GM&P acquisition is off to a great start with first quarter 2017 sales improvement reflecting our significantly strengthened and vertically integrated U.S. presence. Acquired revenue more than offset delayed starts on certain projects in our legacy portfolio, which we now expect to deliver later in the year as we had previously indicated. Longer lead times combined with healthy bidding activity in key markets contributed to our legacy backlog increasing to $424 million, up $28 million compared to the fourth quarter of 2016. Additionally, our recent entry into the Europe and Middle East regions now grants us access to a number of well performing markets where we have already begun to develop sound relationships and gain acceptance for our innovative products. Overall, we are encouraged by the very sturdy foundation we continue to build for Tecnoglass, which supports our unchanged outlook for 2017."
Christian Daes, Chief Operating Officer of Tecnoglass, added, "Our strategic footprint, superior product designs and commitment to operational excellence continue to produce industry-leading margins in our business. This success has also been augmented by high-return projects focused on innovation, productivity and capacity expansion. Our recently initiated multi-year investment to convert a portion of our energy needs to solar should reduce our natural gas needs by over 20% over the next several years as well as providing tax incentives for the years to come. On the product side, we continue to ramp up our residential offerings to diversify our end market exposure. We ended the quarter with ample capital to continue reinvesting in our business following two straight quarters of stronger cash flow generation. We will continue to focus on advancing our lean manufacturing initiatives and improving working capital metrics on our largely built out plant network as we prepare for the next chapter of our growth."
Total revenues for the first quarter 2017 increased 3.1% to $65.8 million compared to $63.9 million in the prior year quarter. U.S. revenues grew 15.4% to $46.3 million compared to $40.2 million in the prior year quarter, partially due to the acquisition of GM&P which contributed one month of sales to consolidated results that more than offset delayed starts on three large projects in backlog. Colombia revenue, a majority of which is represented by long-term contracts priced in Colombian Pesos (COP), was $16.4 million on a local currency basis in the first quarter 2017 compared to $18.6 million, primarily due to delayed construction projects. A favorable foreign currency impact this quarter resulted in reported Colombia revenues being impacted by 11.6% compared to the prior year quarter.
Gross profit was $22.3 million, representing a 33.8% gross margin, compared to $24.7 million, representing a 38.7% gross margin, in the prior year quarter. The gross margin difference was primarily due to a higher mix of engineering and installation revenues attributable to GM&P project activity, additional D&A resulting from the robust growth capex program finalized in 2016 and higher direct labor costs. Operating expenses were $15.4 million compared to $12.9 million in the prior year quarter. As a percent of total revenue, operating expenses were 23.4% compared to 20.3% in the prior year quarter, mainly attributable to higher fixed costs during the seasonally lightest revenue quarter to support future growth. Operating income was $6.9 million compared to $11.7 million in the prior year quarter as a result of the aforementioned factors.
Net income was $1.0 million, or a $0.03 per diluted share, compared to $14.4 million, or $0.46 per diluted share in the prior year quarter. Adjusted net income, as reconciled in the table below, was $3.6 million, or $0.10 per diluted share, compared to $4.7 million, or $0.15 per diluted share, in the prior year quarter.
Adjusted EBITDA, as reconciled in the table below, was $13.7 million, compared to $16.1 million in the prior year quarter.
The Company''s declared regular quarterly dividend of $0.125 per share for the first quarter 2017 was paid on April 28, 2017, to shareholders of record at the close of business on March 31, 2017, in the form of cash or ordinary shares, based on the option of shareholders. The Company''s declared regular quarterly dividend of $0.125 per share for the second quarter of 2017 will be payable on July 28, 2017 to shareholders of record as of the close of business on June 30, 2017.
Commencing with the quarterly dividend payable for the third quarter of 2017 through the dividend payable for the second quarter of 2018, the dividend will be increased by 12% to $0.14 per share, or $0.56 per share on an annual basis. The quarterly dividend of $0.14 per share for the third quarter of 2017 will be payable to shareholders of record as of the close of business on September 29, 2017.
For the full year 2017, the Company continues to expect revenues to grow to a range of $360 million to $390 million compared to $305 million in the prior year. The Company continues to expect Adjusted EBITDA(1) to increase to a range of $82 million to $90 million, mainly as a result of higher revenues, which are expected to grow sequentially over the remainder of the year.
Management will host a conference call on Friday, May 12, 2017 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 . Please go to the website at least 15 minutes early to register, download and install any necessary audio software. To participate by telephone, please dial:
(877) 705-6003 (Domestic)
(201) 493-6725 (International)
If you are unable to listen live, a replay of the conference call 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: 13660535 through August 12, 2017.
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 more than 900 customers in North, Central and South America, with the United States accounting for approximately 62% of revenues in 2016. Tecnoglass'' tailored, high-end products are found on some of the world''s most distinctive properties, including the El Dorado Airport (Bogota), Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower (Miami), and The Woodlands (Houston). For more information, please visit or view our corporate video at .
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. Additionally, Tecnoglass'' financial information for 2016 remains subject to completion of the Company''s audit and other financial and accounting procedures as detailed in the Company''s reports with the Securities and Exchange Commission. These results may differ from the actual results that the Company reports following completion of such procedures. 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 and Adjusted EBITDA in both periods are reconciled in the table below
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.
Currency impacts on total revenues have been derived by translating current period revenues at the quarter-to-date 2017 average foreign currency rates for the period ending March 31, 2017, as applicable.
Adjusted EBITDA, Adjusted EBIT and Adjusted Net Income are not measures of financial performance under generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA, Adjusted EBIT and Adjusted Net Income, in addition to operating profit, net income and other GAAP measures, is useful to investors to evaluate the Company''s results because it excludes certain items that are not directly related to the Company''s core operating performance. Investors should recognize that Adjusted EBITDA, Adjusted EBIT and Adjusted Net 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 EBITDA, Adjusted EBIT and Adjusted Net Income to the most directly comparable GAAP measure in accordance with SEC Regulation G follows, with amounts in thousands:
Santiago Giraldo
Deputy CFO
305-503-9062
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Datum: 12.05.2017 - 05:00 Uhr
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News-ID 1504233
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