Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q3 2022 Earnings Presentation
19 slides from Tecnoglass's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
THIRD QUARTER 2022 EARNINGS CONFERENCE CALL November 3, 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: Q3 2022 Key Takeaways
Q3 2022 Key Takeaways ✓ All around record results in Q3’22 revenues, gross profit, operating income, Sales By Geography net income, Adj. EBITDA, and Adj. Net Income 4% ✓ Q3’22 revenue growth entirely organic, up 53% to $201.8 mm led by strong U.S. residential and commercial activity Total U.S. Reven
Slide 5: U.S. Growth Driving Resilient Backlog
U.S. Growth Driving Resilient Backlog Backlog Overview Backlog as of Q3’22 by End Market ✓ Our track record of successfully delivering high profile Multi Family / projects and maintaining consistent lead times has Residential Related earned us an increasing number of opportunities Commercial 36% acr
Slide 6: Single-Family Residential Weighted Towards R&R
Single-Family Residential Weighted Towards R&R Repair & Remodel Exposure Geographic Exposure Q3’22 Total SF 35% Residential Significant presence (~64% of U.S. revenues) Revenue 65% $85.8 mm Developing Presence (~ 31% of U.S. Revenues) Emerging Presence (~5% of U.S. Revenues) R&R New Residential ✓ Q3
Slide 7: Vertically-Integrated & Well-Situated Operations Create Structural Advantages
Vertically-Integrated & Well-Situated Operations Create Structural Advantages Suppliers JV & Long Term Sales, Raw Production Final Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provide
Slide 8: Financial Update
Paramount Miami Worldcenter Florida, United States FINANCIAL UPDATE 8
Slide 9: Revenue Bridge Q3 2022 vs. Q3 2021
Revenue Bridge Q3 2022 vs. Q3 2021 Q3 2022 Revenue Bridge (US$M) ✓Organic revenue growth of 53.3% to $201.8 mm in Q3’22 driven by strong performance in the U.S., with outstanding growth in the southeast as well as overall ramping multi-family / commercial activity ✓U.S. revenues of $193.5 mm grew 57
Slide 10: Adjusted EBITDA Bridge Q3 2022 vs. Q3 2021
(1) Adjusted EBITDA Bridge Q3 2022 vs. Q3 2021 Adjusted EBITDA margin Q3 2022 Adjusted EBITDA Bridge (US$M) 29.2% 38.9% ✓Gross margin of 52.2%, up 1300 bps, attributable to operating leverage on higher revenues, favorable pricing and FX dynamics and ongoing operational efficiencies ✓SG&A as a percen
Slide 11: Continued Balance Sheet & Leverage Profile Improvement
Continued Balance Sheet & Leverage Profile Improvement ✓Solid cash conversion of adj. EBITDA(1) driving $29.1 Improved Leverage mm of cash flow from operations in Q3’22 300.0 ($ in Millions) 3.5x 259.8 250.0 224.3 242.3 224.5 3.0x ✓Continued deleveraging, with lowest net debt / LTM 3.0x 199.1 2.5x a
Slide 12: Structurally Improved Margins & Cash Flow
Structurally Improved Margins & Cash Flow Improved Gross Margin Operating Cash Flow Bridge (2018 – LTM Q3’22) 50.0% 46.4% 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 LTM Q3'22 ✓ Gross margin increased to 46.4% as of LTM Q3’22, up from 31.5% at ✓ 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 ▪ Expected revenue growth led by continued expansion into single-family residential, coupled with stronger momentum from multi-family and commercial backlog Revenue $680-$700 MM ▪ Adjusted EBITDA outlook incorporates expectation for full year gross margin to
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 Nine months ended Sep 30, Sep 30, 2022 2021 2022 2021 Net (loss) income 46,922 20,659 101,288 48,583 Less: Income (loss) attributable to non-controll
Slide 19: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of September 30, 2021 2022 Short Term Debt and Current Portion of Long Term Debt 13,047 434 Long Term Debt 189,408 168,255 Corporate Bond - - Gross Debt 202,455 168,689 Cash at the end of the pe