Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q1 2024 Earnings Presentation
23 slides from Tecnoglass's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call May 9, 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: Q1 2024 Key Takeaways
Q1 2024 Key Takeaways Sales by Geography Q1’24 • Revenues of $192.6 mm, 96% from the U.S., with single-family residential revenues of $73.2 mm • Multi-family/commercial revenues stable at $119.5 mm through consistent execution of 4% growing backlog, once again at a record level Total U.S. • While Q1
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 Q1’24 by End Market • Track record of successfully delivering high profile projects and maintaining consistent lead times has earned us an increasing Multifamily / Residential Related number of opportunities
Slide 6: Demonstrated History of Converting Backlog to Revenue
Demonstrated History of Converting Backlog to Revenue Backlog to Revenue Conversion $ 950 130 % 114% 110% 111% $ 850 108% 110 % 106% 104% 106% 107% 105% 102% 98% 100% 100% 95% 92% 93% $ 750 90% 87% 86% 88% 88% 89% 90% 75% 70% $ millions 69% $ 650 73% 72% 71% 73% 69% 63% 64% 64% 70% 66% 60% 70% 64% 5
Slide 7: Favorable Demographics in Key Regions Despite Macro Headwinds
Favorable Demographics in Key Regions Despite Macro Headwinds Multi-family housing starts; ’24 – ’25 YoY % change1 Single-family U.S. housing starts in key Tecnoglass markets2 ‘24 – ’25 YoY % Change YoY % growth 45.9% 4.5% 20.8% 3.9% 13.2% 9.9% 3.7% 5.1% 5.1% AZ CA FL MA NY NV TX 2023-2024 2024-2025
Slide 8: Single-Family Residential Business Expanding
Single-Family Residential Business Expanding Geographic Exposure Single-Family Residential Q1’24 Operational Showrooms 35% Expected 2024 Openings Total SF R&R Residential New Residential Revenue Significant presence $73.2 mm 65% Developing Presence Emerging Presence • Q1 2024 single-family residenti
Slide 9: Recent Strategic Entry into Vinyl Windows More than Doubles Addressable Market
Recent Strategic Entry into Vinyl Windows More than Doubles Addressable Market Significant Addressable Market Potential1 Operational Update • Five fully operational vinyl window production lines capable of serving both the US and LatAm markets. Initial shipments began in 3% 2% December 2023 Vinyl Cu
Slide 10: Financial Update
l Aston Martin Miami, Florida l Financial Update www.tecnoglass.com
Slide 11: Revenue Bridge 2024 vs. 2023
Revenue Bridge 2024 vs. 2023 Q1 2024 Revenue Bridge (US$M) • Q1’24 revenues of $192.6 mm, accounting for seasonal trends and downtime related to maintenance in January • Single-family residential revenues decreased $10.4 mm, or 13% year-over-year, to $73.2 mm in Q1’24, comprising approximately 38% o
Slide 12: Adjusted EBITDA Bridge 2024 vs. 2023
Adjusted EBITDA(1) Bridge 2024 vs. 2023 Adjusted EBITDA margin Q1 2024 Adjusted EBITDA Bridge (US$M) 42.4% 26.5% • Gross margin of 38.8%, down year-over-year primarily due to a strong FX revaluation period since Q2’23, coupled with deleveraging from lower single family residential revenues, the timi
Slide 13: Strong Cash Flow & Balance Sheet
Strong Cash Flow & Balance Sheet • Strong cash conversion of Adj. EBITDA(1) driving $33.4 mm of cash Strong Cash Flow Generation flow from operations in Q1 2024 160.0 ($ in Millions) 141.9 138.8 140.0 129.2 • Strong free cash flow expected to continue through 2024 given 120.0 117.3 meaningful drop i
Slide 14: 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 15: Outlook Update
205 Race Street Philadelphia, Pennsylvania l OUTLOOK UPDATE www.tecnoglass.com
Slide 16: 2024 Outlook
2024 Outlook Full Year 2024 Scenarios Assumptions • 3 or more interest rate cuts Upside Case • COP $4,000 average • Legacy residential revenues in line with current order level • Vinyl revenues of $25 mm $910 MM $285 MM • Improved activity in short-term/small commercial projects Revenue Adj. EBITDA
Slide 17: Appendix
3Eleven 601 Hudson Yards New York City, New York l APPENDIX www.tecnoglass.com
Slide 18: 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 19: 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 20: 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 21: 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 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Adjusted EBITDA and adjusted net (loss) income attributable to parent reconciliation Three months ended Twelve months ended Mar 31, Mar 31, Figures in U.S. $k 2024 2023 2024 2023 Net (loss) income 29,730 48,372 164,868 183,831 Less: Income (loss) attributable to non-controll
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of March 31, 2023 2024 Short Term Debt and Current Portion of Long Term Debt 819 3,338 Long Term Debt 172,688 154,567 Gross Debt 169,895 157,905 Cash at the end of the period 128,538 135,881 Net De