Highlights of the First Quarter 2019
- Complete Income Increased 23 % to $ 107.2 Million in Robust US Exercise, accounting for a quarter of a consecutive eighth report
- Internet Profit $ 7.three Million, or $ 0.18 per diluted share  internet profit1 elevated 7% to $ 5.9 million, or $ zero.15 per diluted share
- Adjusted EBIT1 elevated 16% to $ 21.1 million in the first quarter
- . up to 3% on the previous yr and 1% on the quarter
- The $ 5.2 million investment was primarily associated to beforehand announced high-yield investments that elevated the production capacity of the aluminum plant and automated key operations on several glass and aluminum crops
- In Might 2019, the beforehand introduced minority buy of Vidrio Andino was completed in Might 2019 , a subsidiary of Colombia's Saint-Gobain with an annual turnover of roughly $ 100 million
- Repeats general progress prospects for 2019 Complete Income and Adjusted EBIT1
José Manuel Daes, President and CEO of Tecnoglass, commented: quarterly income ranges, adjusted EBITDA and EBITDA. Gross sales in the USA grew by 46% on the previous yr, accounting for 86% of the primary quarter's internet gross sales, underlining the multi-year effort to increase customer experience and geographic presence in this engaging market. We continued to profit from favorable business design and market share progress, in addition to speedy access to the US single-family housing market. Robust US performance more than offset softer leads to Latin America where development exercise continues to be muted. Our set up business grew significantly in the first quarter, partly as a consequence of internet gross sales of approximately $ 5-7 million from the second quarter onwards. The revenue-reducing half-yearly gross margin was offset by greater than 5.4 per cent from the previous yr, reflecting tight value control and powerful operational capacity. Once we take a look at the stability of 2019, we’re on the street to a report yr for the New Yr and are wanting ahead to seeing our confirmed full-year outlook. “
Christian Daes, Tecnoglass's Chief Working Officer, stated:“ Strong bidding throughout the quarter, leading to a record $ 518 million. We are pleased to see the project's gains in different geographical areas, in line with the US Diversification Strategy, which also includes our Schüco partnership, which continues to produce positive results. The joint venture agreement with Saint-Gobain was closed at the beginning of May and offered us wider access to floating light and attractive synergies over time. In addition, we expect the expansion of our complementary aluminum pressing equipment in the third quarter of 2019, which will help us to meet the demand. Our initiative to automate certain processes and optimize our production lines on our premises should work by the end of 2019. All of these functional improvements are underway and we are ready to further increase structural benefits as we continue to gain market share and produce industry-leading margins. ”
First Quarter 2019 Results
Complete income for the first quarter of 2019 improved 23.zero % to $ 107.2 million in contrast with $ 87.2 million within the earlier quarter. Excluding the influence of the unfavorable foreign money, complete revenues elevated by 24.four% in comparison with the earlier quarter. US revenue grew 46.1% to $ 92.1 million in comparison with $ 63.zero million within the previous quarter because of stronger housing bills, wholesome business development, market share progress and low pricing. In addition, part of the increase was tied to the set up of merchandise for certain tasks that have been carried ahead to the first quarter of 2019. Colombian revenue, most of which is represented by long-term contracts priced in Colombian pesos indexed to the USA. The dollar was $ 13.0 million compared to $ 21.8 million within the earlier yr, primarily as a consequence of slower development exercise.
Gross margin elevated by 19.2 % to $ 31.9 million, or 29.8 %, compared to $ 26.7 million, or $ 26.7 million, or 30.7 %. gross margin, quarter-on-quarter. The distinction of 90 proportion factors in gross margin was mainly on account of greater service revenues related to scheduled invoiced tasks, partly compensated by decrease labor prices and power costs per unit and decrease depreciation. Operating expenses have been $ 17.7 million compared to $ 16.eight million a yr earlier. As a proportion of complete income, operating expenses have been 16.5% compared to 19.2% in the earlier yr, mainly because of larger sales and decrease land and sea transportation prices. Excluding non-recurring gadgets, working expenses would have been 15.8% of complete internet sales, in contrast with 18.1% in the previous quarter. Operating profit elevated 42.5% to $ 14.2 million in comparison with $ 10.zero million within the previous quarter
Internet revenue was $ 7.3 million, or $ 0.18 per diluted share in the first quarter of 2019, when internet profit was $ 10.6 million or $ 0.28. diluted share within the earlier yr, including capital positive factors on overseas trade in money in both durations, associated to the re-measurement of USD-denominated belongings and liabilities as a practical foreign money towards the Colombian peso. Adjusted internet profit1 improved to $ 5.9 million, or $ zero.15 per diluted share, in comparison with $ 5.5 million of adjusted internet revenue for the previous quarter, or $ 0.15 per diluted share. Adjusted Internet Income1, which is aligned with the desk under, excludes overseas change price features or losses on overseas change transactions and other non-nuclear effects, as well as the tax effect of corrections at statutory trade charges, to raised mirror economic improvement. 19659011] Adjusted EBITDA1, adjusted in accordance with the table under, increased by 15.7% to $ 21.1 million compared to $ 18.2 million within the previous yr, primarily as a result of increased gross sales and better operating profit.
In March 2019, Tecnoglass completed 5,551,423 bizarre shares with internet proceeds raising approximately $ 36.1 million to Tecnoglass. On March 31, 2016, Tecnoglass had money belongings of $ 61.7 million. On March 31, 2014, Tecnoglass's primary and undiluted shares have been 43,631,653 shares and 44,902,619 shares.
In Might 2019, Tecnoglass signed a new 5-year EUR 30 million arrangement. present short-term working capital limits. The brand new association extends the typical maturity of Tecnoglass debt, reduces the weighted average value of financing and will increase monetary flexibility to implement strategic initiatives.
Strategic Joint Enterprise and High Return Initiatives
In Might 2019, Tecnoglass accomplished its beforehand announced strategic three way partnership with Saint-Gobain by acquiring a minority stake in Vidrio Andino, the Colombian Nordic glass manufacturing company Saint-Gobain with annual gross sales of approximately $ 100 million. The three way partnership invests in Tecnoglass to significantly broaden its vertical integration strategy by offering a stake in one of the primary levels of the manufacturing chain, making certain secure long-term float glass supply and enhancing procurement financial system for a big part of glass glass procurement while decreasing waste and transportation prices. The $ 34 million money transaction was financed by cash.
Tecnoglass continues to make progress within the just lately announced enhancements to increase the manufacturing capability of the aluminum plant and automate key operations in a quantity of glass and aluminum units. Tecnoglass believes that these high-yield investments will accelerate manufacturing in response to robust demand particularly in aluminum products. Tecnoglass is ready to complete the enlargement of its aluminum capacity by the start of the third quarter and to completely implement its automation initiatives by the top of 2019. As of March 31, 2019, Tecnoglass has invested approximately $ 9 million of the whole anticipated capital in an funding of about $ 20 million to finance the remaining portion of cash and present debt capital
Tecnoglass recurrently reported $ zero.14 quarterly quarterly per share, or $ 0.56 per share per yr. for the primary quarter of 2019 to be paid on Might 26, 2019 to shareholders registered on the end of April 30, 2019.
Full Yr 2019 Prospects
Tecnoglass reiterated its progress outlook for the remaining of the yr 2019 in the development finish market and increased market share in the US In 2019, Tecnoglass expects income to develop to $ 395 – 415 million. Tecnoglass expects adjusted EBITDA to be $ 85-94 million in 2019, which represents an 11 % increase over the mid-year resulting from greater income and higher operational efficiency.
Tecnoglass Inc. and its subsidiaries
Consolidated Stability Sheet
(in hundreds, excluding share and share info)
Consolidated and Comprehensive Revenue
(in hundreds, excluding share and share info)
Tecnoglass Inc. and its subsidiariesTecnoglass Inc. Money Movement Statement
(Amounts in Hundreds)
Coordinating Non-GAAP Efficiency Measurement Outcomes with GAAP Efficiency Measurements
( in hundreds)
that complete overseas trade sales outcomes are impartial, non-GAAP efficiency measurements used by management for Tecnoglass business administration and evaluation, might present Tecnoglass monetary customers with different related criteria for comparing Tecnoglass's present results and outcomes previous time through the interval, as these measures mirror elements which are distinctive to at least one period as compared to the reference period. Nevertheless, these non-GAAP efficiency measures ought to be thought-about along with the Tecnoglass reported outcomes, not in accordance with usually accepted accounting rules in the USA.
|Three Months Ended|
|Overseas Monetary Revenue||$||] 108,430||$||87,160||24.4||%|
|Influence of modifications in overseas foreign money||(1,262||)||–||–||–||–||–||]%)|
|Complete earnings as reported  107,168||$||87 160||23.0||%|
outcome for the current quarter is calculated by changing current quarter's income to prevailing average change charges for the earlier quarter .
Adjusting adjusted EBITDA and adjusted internet revenue (loss) to internet revenue
(in hundreds, excluding share and share info)
Adjusted EBITDA and adjusted internet revenue (loss) usually are not financial efficiency indicators in accordance with usually accepted accounting rules (GAAP). Management believes that adjusted EBIT and adjusted internet revenue (working profit, internet revenue, and different GAAP measures) are helpful for buyers to guage Tecnoglass outcomes as a result of it doesn’t embrace sure gadgets that aren’t instantly associated to Tecnoglas. core business. Buyers ought to perceive that adjusted EBITDA and adjusted internet revenue will not be corresponding to comparable measures taken by different corporations. These measures also needs to be thought-about and not exchange or exceed GAAP efficiency.
Coordination of non-GAAP actions used on this press launch is included in the hooked up tables. to this press release to the extent that it is out there with out undue effort. Because GAAP monetary measures are usually not out there for the longer term and coordination is just not obtainable without excessive efforts, we now have not offered reconciliations for future non-GAAP measures.
and the adjusted EBITDA margin for probably the most direct comparable GAAP measure beneath SEC G follows, in hundreds:
|Three months ended|
31, 2018 
|t ] 7,338||10,692|
|Overseas change working losses (positive aspects)||(three,286||)||(9,973||)|
|Deferred monetary expenses|
|393||346  Non-recurring bills (debt cancellation), bond issuance prices, poor gearing, acquisition costs and others)||744||1,342|
|The tax impact of authorized acts with statutory curiosity||688||three, 065|
|Adjusted Internet Revenue||5,877||5,472|
|Primary return (loss) per share||0.19||0.28|
|Diluted earnings (loss) per share||zero.18||zero.18||zero.18||zero.18||Diluted adjusted internet revenue / shares||zero.15||zero.14|
|Common Weighted Average Shares in Hundreds||38,612||37,393|
|Diluted Weighted Average Number of Shares in Hundreds||39,883||38,113|
Supply: Tecnoglass Inc.
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