Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q1 2022 Earnings Presentation
19 slides from Tecnoglass's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
FIRST QUARTER 2022 EARNINGS CONFERENCE CALL May 4, 2022 – TECNOGLASS INC. (NASDAQ: TGLS)
Slide 2: Safe Harbor
Safe Harbor FORWARD LOOKING STATEMENTS This presentation 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 ba
Slide 3: Summary & Highlights
165 Main Street Massachusetts, United States SUMMARY & HIGHLIGHTS
Slide 4: Q1 2022 Key Takeaways
Q1 2022 Key Takeaways ✓ Continued strong execution in Q1’22 drove record results across revenues, Sales By Geography gross profit, operating income, net income, Adj. EBITDA and free cash flow 6% ✓ Q1’22 revenues increased 21% to a record $134.5 mm. Growth continues to Total U.S. be fueled by record
Slide 5: U.S. Growth Driving Resilient Backlog
U.S. Growth Driving Resilient Backlog Backlog Overview Backlog as of Q1’22 by End Market ✓ Our track record of successfully delivering high profile Multi Family / projects has earned us an increasing number of Residential Related opportunities across the U.S., demonstrated by 34% Commercial expandin
Slide 6: Continued Expansion in Single-Family Residential
Continued Expansion in Single-Family Residential U.S. Single Family Residential Revenue Mix ✓ Q1’22 single-family residential sales up 155% YoY, FY 2017 LTM Q1’22 reaching a historic high at $59.7 mm in Q1’22 3% ✓ Single-family sales segment accounts for 44% of LTM Total U.S. Total U.S. 44% U.S. rev
Slide 7: Vertically-Integrated & Well-Situated Operations Driving Step-Change in Results
Vertically-Integrated & Well-Situated Operations Driving Step-Change in Results Suppliers JV & Long Term Sales, Raw Production Final Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provi
Slide 8: Financial Update
Paramount Miami Worldcenter Florida, United States FINANCIAL UPDATE 8
Slide 9: Revenue Bridge Q1 2022 vs Q1 2021
Revenue Bridge Q1 2022 vs Q1 2021 Q1 2022 Revenue Bridge (US$M) ✓Total revenues increased 20.6% to $134.5 mm in Q1’22 driven by a strong performance in the U.S. market ✓U.S. revenues of $127.0 mm, which represented 94% of total revenues, grew 26.0% compared to $100.8 mm in Q1’21 on higher single-fam
Slide 10: Adjusted EBITDA Bridge Q1 2022 vs Q1 2021
(1) Adjusted EBITDA Bridge Q1 2022 vs Q1 2021 Adjusted EBITDA margin Q1 2022 Adjusted EBITDA Bridge (US$M) 30.1% 33.7% ✓Record gross margin of 44.8%, up 420 bps, attributable to higher sales, greater operating efficiencies and a higher mix of revenue from manufactured products vs installation ✓SG&A
Slide 11: Improved Balance Sheet & Leverage Profile
Improved Balance Sheet & Leverage Profile Improved Leverage ✓Solid cash conversion of adj. EBITDA(1) driving $27.1 300.0 ($ in Millions) 259.8 3.5x mm of cash flow from operations in Q1’22 250.0 242.3 224.5 3.0x 224.3 200.0 3.0x 199.1 184.0 2.5x ✓Continued deleveraging, with lowest net debt / LTM 2.
Slide 12: Structurally Improved Margins & Cash Flow
Structurally Improved Margins & Cash Flow Improved Gross Margin Operating Cash Flow Bridge (2018 – LTM Q1’22) 50.0% 44.8% 45.0% 40.8% 40.0% 37.0% 35.0% 31.5% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2019 2020 2021 Q1'22 ✓ Gross margin increased to a record 44.8% in Q1’22, up from 31.5% just ✓ Tecnogl
Slide 13: Outlook Update
Residential Project, Florida, United States OUTLOOK UPDATE 13
Slide 14: Improved 2022 Double-Digit Growth Outlook
Improved 2022 Double-Digit Growth Outlook ▪ Revenue growth led by continued expansion into Revenue single-family residential, coupled with stronger momentum from multi-family and commercial backlog $580-$605 MM ▪ Adjusted EBITDA outlook incorporates expectation for +17-22% YoY full year gross margin
Slide 15: Appendix
APPENDIX Hub50House Massachusetts, United States 15
Slide 16: ESG Strategy
ESG Strategy Outstanding Achievements Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsible Growth National Carbon Employee Training and Ethics and Compliance Neutrality Program Education Programs Program +15,000
Slide 17: ESG Strategy
ESG Strategy Our Sustainability Strategy contains the Company’s guidelines and value propositions to meet the expectations of our stakeholders Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsible Growth Encourag
Slide 18: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Adjusted EBITDA and adjusted net (loss) income attributable to parent reconciliation Figures in U.S. $k Three months ended Mar 31, 2022 2021 Net (loss) income 20,953 8,282 Less: Income (loss) attributable to non-controlling interest (100) (89) (Loss) Income attributable t
Slide 19: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of March 31, 2021 2022 Short Term Debt and Current Portion of Long Term Debt 13,748 485 Long Term Debt 221,635 183,414 Corporate Bond - - Gross Debt 235,383 183,899 Cash at the end of the period