Colombia based Tecnoglass (NYSE: TGLS) is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. Shares have moved from the single digit level in 2021 to $46.46 as of yesterday’s close as the company has continued to produce strong financial results and growth.
OVERVIEW:
Tecnoglass Inc. is a leading producer of architectural glass, windows, and associated aluminum products serving the multi-family, single-family and commercial end markets. Located in Barranquilla, Colombia, the Company’s 4.1 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).
Is Tecnoglass, Inc. (TGLS), a buy? A candid Interview with President of Alutions, and Legal Representative of Tecnoglass, Rodolfo Espinosa, reveals an answer to this pressing question.
Strong Results Driven by Organic Growth in Both Multifamily/Commercial and Single-Family Residential Businesses, Up 59% and 40%, Respectively
Record Gross Margin of 53.2%, Up 830 Basis Points Year-Over-Year
Net Income of $48.4 Million, or $1.01 Per Diluted Share
Adjusted Net Incomeof $51.5 Million, or $1.08 Per Diluted Share
Adjusted EBITDA Up 89% Year-Over-Year to $85.8 Million, Representing 42.4% of Total Revenues
Record Cash Flow From Operations of $43.1 Million and Free Cash Flow of $27.5 Million
Backlog Growth Accelerates, Expanding 19% Year-Over-Year to $776 Million
Facility Investments Remain on Track to Increase Operational Capacity to ~$950 Million in Revenues by the end of the Second Quarter of 2023
Raises Full Year 2023 Growth Outlook for Adjusted EBITDAto a range of $315 Million to $3 35 Million on Total Revenues of $810 Million to $850 Million, Bolstered by Record Invoicing in March and April
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented: “Our strong momentum continued into 2023 with record first quarter results. We generated year-over-year growth in all of our key operating metrics, resulting in record first quarter revenues, gross profit, Adjusted EBITDA1, operating cash flow and free cash flow. This performance further builds upon our established track record of achieving strong financial performance and returns for shareholders, derived from a multi-year effort to fortify our architectural glass platform through sound investments in strategic automation and capacity enhancements. Our continued expanding backlog resulted in a third straight quarter of approximately 60% year-over-year growth in multifamily/commercial revenues. We were also particularly pleased with the continued rapid growth of our single-family residential products. The shorter cash cycle in our single-family residential business, along with our prudent working capital management, also helped us generate our 13th consecutive quarter of strong cash flow. Achieving these results amid a challenging macro-economic backdrop further validates our growth strategy and our structural competitive advantages. Overall, I am proud of the efforts of all of our team members and as we look to the balance of the year, we believe we have all of the tools in place to execute against our multi-faceted growth strategy to further cement our position as an industry leader in the architectural glass market.”
Santiago Giraldo, Chief Financial Officer, stated, “Tecnoglass is committed to providing its customers with the best possible experience, and this partnership with Wells Fargo is just one way that we are working to do so. We are excited to make Wells Fargo’s attractive financing options accessible to help make high-quality window upgrades a reality for property owners. We are rapidly expanding our product lines, opening show rooms and entering new geographic markets to fuel the expansion of our single-family residential business. This financing program complements those efforts and we look forward to our continued success as a premier U.S. provider of windows and architectural glass.”
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