Barranquilla-based Tecnoglass (NASDAQ: TGLS) (BVC: TGLSC), Colombia's leading producer of architectural glass, home windows and related aluminum merchandise in international business and residential development, reported last year's fourth quarter monetary outcomes ended December 31, 2018.
José Manuel Daes, Founder and CEO of Tecnoglass, commented: “2018 was our company's advanced year. We achieved a record level of revenue and adjusted EBITDA improved by a gross margin of 90 basis points to 32.4 percent of higher performance and lower product installation costs. We are still seeing healthy building operations in the United States because of the benefits of expanding geographical footprint. In the US single-family housing market, we achieved a four-fold growth in our 2018 sales compared to the previous year, exceeding our expectations and strengthening our efforts to penetrate these end markets mainly through our Elite and Prestige product range. In January, we were excited to cooperate with Saint-Gobain to gain a share of expanding float glass manufacturing operations in Colombia, strengthening our vertical integration strategy and securing our long-term float glass offering while driving. All in all, our structural benefits are paying as our 2018 performance shows, and we are excited about the success of our future and the growth of market share in 2019 and beyond. ”
Christian Daes, Founder and Chief Working Officer of Tecnoglass, stated:“ In 2018, at a steady pace, we were happy with the end of the year at a record level. The tendering process continues to be firm in the United States, and we will benefit from the expansion in areas where economic fundamentals support long-term demand for architectural glass systems. We have recently been awarded the first project through our Schüco partnership, which is already producing benefits. We are well placed to continue to grow faster than the leading margins in our end market. We look forward to another year of steady sales growth and adjusted EBITDA. ”
Fourth Quarter 2018 Outcomes
Complete revenue for the fourth quarter of 2018 improved 16.1% to $ 97.9 million in comparison with $ 84.3 million a year earlier. Excluding the influence of the unfavorable foreign money, complete revenue elevated by 17.zero% in comparison with the earlier quarter. US revenue grew 27.eight% to $ 81.5 million in comparison with $ 63.8 million a year earlier as a consequence of stronger housing billing, continued wholesome constructing exercise, market share progress and low pricing. Colombian earnings, most of which characterize long-term contracts priced in Colombian pesos, however indexed to the US dollar, have been $ 12.9 million compared to $ 18.2 million a year earlier.
Gross margin increased by 25.5 % to $ 34.1 million. Gross margin was 34.9%, in contrast with EUR 27.2 million in the previous quarter. $ 32.three% gross. The improved gross margin of 260 foundation factors reflected lower set up prices and decrease direct labor prices associated to service income. Operating bills have been $ 19.eight million in comparison with $ 16.5 million in the earlier year. In % of complete income, working expenses have been 20.three% in comparison with 19.6% in the previous quarter, mainly as a result of greater US transport costs. Operating profit increased by 34.zero% to EUR 14.three million. USD 10.7 million compared to the dollar
Highlights of the fourth quarter 2018
- Complete revenue elevated by 16 % to $ 97.9 million for robust US operations; seventh consecutive document quarter end result
- Internet loss of $ 4.4 million or ($ zero.12) per diluted share, together with non-cash occasions losses related to market adjustment of USD belongings and liabilities to Colombian peso
- internet income1 increased by 3, 5x $ 10.2 million, diluted to $ 0.26 per share
- Adjusted EBITDA elevated 25% to $ 21.5 million in the fourth quarter
- In January 2019, a three way partnership settlement with Saint-Gobain was signed to buy a minority stake in Vidrio Andino, Colombia Saint-Gobain's subsidiary with an annual turnover of approximately $ 100 million
Internet loss was $ 4.four million or ($ zero.12) per diluted share in the final quarter of 2018. internet profit of $ 1.1 million, or $ 0.03 per diluted share in the previous quarter, including overseas trade trade losses in both durations associated to revaluation of USD denominated belongings and liabilities towards Colombian peso in useful foreign money. Adjusted internet profit1 improved to $ 10.2 million, or $ 0.26 per diluted share, compared to $ 3.zero million for the previous quarter's $ 0.08 diluted share. Adjusted internet income1, which is aligned with the desk under, excludes non-cash change fee features and other losses and different non-nuclear gadgets and tax results of changes at statutory trade rates.
Adjusted EBITDA1, adjusted as shown in the table under, increased 25.2% to $ 21.5 million in comparison with $ 17.2 million a year earlier, mainly because of sales progress and gross margin
Full Year 2018 Outcomes
Complete revenue for 2018 elevated by 18.0% to $ 371.0 million compared to $ 314.5 million in the earlier year. Foreign money fluctuations in complete revenue have been small compared to the previous year.
Gross margin was $ 120.2 million, or gross margin of 32.four %, in contrast with $ 99.2 million, or 31.5 % of gross profit in the earlier year. Working outcome was $ 47.2 million, in contrast with $ 34.four million in the earlier year. Internet revenue was $ 8.5 million, or $ 0.22 per diluted share compared to the previous year's $ 5.5 million internet revenue, or $ zero.15 per share. Adjusted Internet Income1 was $ 32.three million, or $ zero.85 per diluted share, in contrast with $ 11.4 million in the previous year, or $ zero.30 per diluted share. Adjusted EBITDA improved to $ 80.8 million, or 21.8 % of internet gross sales, compared with $ 62.0 million in the previous year, or 19.7 % of internet sales.
- Complete income grew by 18% to $ 371.zero million for the entire of 2018. Robust US progress
- Internet revenue increased 48 % to $ eight.5 million all through the year 2018
- Adjusted internet revenue of 2.8x and $ 32.three million for the entire year 2018
- Adjusted EBITDA increased 30 % to $ 80.eight million for the entire year 2018 –
- Backlog extended to $ 515 million; More than three.2% at the flip of the year and 1.8% in the quarter
- Full year 2019 was introduced. USD $ 40.9 million in the previous year, and dealing capital investment declined throughout the year to help progress, in addition to larger shares that supported expected progress in transport in the first quarter of 2019. The company acquired money outflows of $ 13.1 million, compared with $ 7.zero million in the previous year, and the improve in high-yield tasks focused in the fourth quarter of 2018 was because of operational improvements and efficiency initiatives.
Strategic Joint Enterprise Saint-Gobain
In January 2019, as beforehand announced, the firm entered into a strategic joint venture agreement with Saint-Gobain to accumulate a minority stake in Vidrio Andino, a Colombian glass manufacturing company in Saint-Gobain, with annual gross sales of roughly $ 100 million. The three way partnership is predicted to significantly improve Tecnoglass's vertical integration technique by enabling it to accumulate possession of the first levels of the manufacturing supply chain, guarantee secure long-term float glass supply, improve procurement financial system for a vital part of its float glass acquisition while decreasing waste and transportation costs. The deal is predicted to be completed in the second quarter of 2019.
Tecnoglass frequently reported a quarterly dividend of $ 0.14 per share in the fourth quarter of 2018, which was paid to shareholders registered on February 28, 2019.
Full Year 2019 Prospects
During the entire 2019, the company estimates that it’ll grow in the last market and improve its market share in the United States. The corporate expects income to develop from $ 395 to $ 415 million. Tecnoglass expects adjusted EBITDA to be USD 86-94 million in 2019, which is 11.3 % more than a year-on-year improve as a consequence of greater earnings and higher operational efficiency.
Tecnoglass Inc. is a main manufacturer. architectural glass, windows and associated aluminum merchandise for worldwide business and residential development. Tecnoglass is Latin America's largest architectural glass manufacturing firm and the second largest glass producer serving the United States. Headquartered in Barranquilla, Colombia, the company operates a 2.7 million square foot vertically integrated, high-end know-how that gives quick access to the Americas, the Caribbean and the Pacific. Tecnoglass supplies greater than 900 clients in North, Central and South America. The USA accounts for over 75% of internet sales. Tecnoglass-tailored, high-end merchandise could be present in some of the most distinctive options of the world, similar to El Dorado Airport (Bogota), 50 United Nations Plaza (New York), Trump Plaza (Panama), Icon Bay (Miami) and Salesforce Tower (San Francisco)
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