Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q2 2024 Earnings Presentation
21 slides from Tecnoglass's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call Aug 8, 2024 – TECNOGLASS INC. (NYSE: TGLS) www.tecnoglass.com
Slide 2: Disclaimer
Disclaimer 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 bas
Slide 3: Highlights
300 Third Avenue Waltham, Massachusetts l Highlights www.tecnoglass.com
Slide 4: Q2 2024 Key Takeaways
Q2 2024 Key Takeaways • Revenues of $219.7 mm, marking second highest quarterly total, fueled by continued Sales by Geography Q2’24 strong performance in all end markets 5% • Accelerated growth in single-family residential activity, up 10% YoY to a record $95.7 mm, through dealership growth and geog
Slide 5: U.S. Growth Driving Resilient Multi-family/Commercial Backlog
U.S. Growth Driving Resilient Multi-family/Commercial Backlog Backlog Overview Backlog as of Q2’24 by End Market • Backlog expanded 29% YoY to a record $1.02 bn. Track record of successfully delivering high profile projects and maintaining Multifamily / consistent lead times has earned us an increas
Slide 6: Demonstrated History of Converting Backlog to Revenue
Demonstrated History of Converting Backlog to Revenue Backlog to Revenue Conversion $ 1,250 130% $ 1,150 114% 111% 106% 108% 110% 107% 110% 104% 106% 105% 102% 100% 100% $ 1,050 98% 95% 92% 90% 89% 93% $ 950 87% 86% 88% 88% 90% 75% $ 850 70% $ millions 69% 73% 72% 71% 73% 69% 63% 64% 64% 70% $ 750 6
Slide 7: Single-Family Residential Business Expanding
Single-Family Residential Business Expanding • Record Q2 SF Residential revenues of $96 mm; accounting for 46% of U.S. Geographic Exposure revenues, compared to 3% in 2017 • Second quarter orders continued record trajectory, up over 60% YoY • Market share upside to single-family residential revenues
Slide 8: Financial Update
l Aston Martin Miami, Florida l Financial Update www.tecnoglass.com
Slide 9: Revenue Bridge 2024 vs. 2023
Revenue Bridge 2024 vs. 2023 Q2 2024 Revenue Bridge (US$M) • Second highest revenue quarter in the company’s history at $219.7 mm, as a result of robust demand for our best-in-class product offerings, coupled with our ability to continue taking market share in geographies that are outperforming the
Slide 10: Adjusted EBITDA Bridge 2024 vs. 2023
Adjusted EBITDA(1) Bridge 2024 vs. 2023 Adjusted EBITDA margin Q2 2024 Adjusted EBITDA Bridge (US$M) 37.7% 29.2% • Gross margin of 40.8%, down YoY primarily due to a strong FX revaluation YoY, deleveraging from lower multi-family and commercial revenues coupled with higher salary expenses, and unfav
Slide 11: Strong Cash Flow & Balance Sheet
Strong Cash Flow & Balance Sheet • Strong cash conversion of Adj. EBITDA(1) driving $34.5 mm of cash Strong Cash Flow Generation flow from operations in Q2 2024 180.0 ($ in Millions) 163.6 160.0 141.9 138.8 • Free cash flow of $14.2 mm, slightly lower than previous quarters 140.0 117.3 70.3 120.0 du
Slide 12: Track Record of Strong Returns Above Peers
Track Record of Strong Returns Above Peers 3 Year Average ROE 3 Year Average ROIC 40% 24% 16% 9% TGLS U.S. Building Products Peers 1 TGLS U.S. Building Products Peers 1 Stronger profitability and significant improvement in working capital driving strong returns Notes: 1. U.S. Building Products Peers
Slide 13: Outlook Update
205 Race Street Philadelphia, Pennsylvania l OUTLOOK UPDATE www.tecnoglass.com
Slide 14: 2024 Outlook
2024 Outlook Full Year Outlook 2024 Assumptions • Growth in residential revenues based on strong orders Revenue through June • Vinyl Revenues of $15 to $25 mm $860 MM - $910 MM • Large multi-family/commercial projects stay within scheduled timetables • Stable activity in short-term/small commercial
Slide 15: Appendix
3Eleven 601 Hudson Yards New York City, New York l APPENDIX www.tecnoglass.com
Slide 16: Vertically-Integrated & Well-Situated Operations Create Structural Advantages
Vertically-Integrated & Well-Situated Operations Create Structural Advantages Supplier JV & Long Term Sales, Raw Production Final s Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provid
Slide 17: ESG Strategy
ESG Strategy Outstanding Achievements Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Responsible Leading Eco-Efficiency and Innovation Growth National Carbon Neutrality Employee Training and Ethics and Compliance Program Education Programs Program +15,000
Slide 18: 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 Responsible Leading Eco-Efficiency and Innovation Growth Encourag
Slide 19: Leading Eco-efficiency and Innovation
Leading Eco-efficiency and Innovation Over 85% of Tecnoglass’ total revenues are considered Green Revenues, including low emissivity and impact-resistant glass and windows, contributing to reducing global emissions and mitigating climate change effects 68% 65% 84% of our revenues are of our revenues
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Adjusted EBITDA and adjusted net (loss) income attributable to parent reconciliation Three months ended Twelve months ended Figures in U.S. $k Jun 31, Jun 31, 2024 2023 2024 2023 Net (loss) income 35,028 52,565 147,331 202,983 Less: Income (loss) attributable to non-controll
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of June 30, 2023 2024 Short Term Debt and Current Portion of Long Term Debt 645 2,197 Long Term Debt 172,672 140,058 Gross Debt 169,648 142,255 Cash at the end of the period 104,686 126,805 Net Deb