Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q4 2022 Earnings Presentation
21 slides from Tecnoglass's earnings presentation, Mar 2, 2023
Slide 1: Fourth Quarter 2022 Earnings Conference Call
FOURTH QUARTER 2022 EARNINGS CONFERENCE CALL March 2, 2023 – TECNOGLASS INC. (NYSE: 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: Q4 2022 Key Takeaways
Q4 2022 Key Takeaways ✓ Q4’22 saw all-organic revenue growth of 60.2% to $211.1 mm led by Sales By Geography Q4’22 strong U.S. performance on continued healthy residential and ramping commercial activity 2% ✓ Accelerated growth in the U.S. single-family residential market, with Total U.S. sales up 5
Slide 5: FY 2022 Key Takeaways
FY 2022 Key Takeaways ✓ Record FY’22 revenues, gross profit, operating income, Adj. EBITDA, Adj. Net Sales By Geography FY’22 Income and free cash flow 4% ✓ Total revenues of $716.6 mm, up 44.2% YoY, led by strong U.S. growth, which increased 50.8% to $688.4 mm on strong single-family residential ac
Slide 6: U.S. Growth Driving Resilient Backlog
U.S. Growth Driving Resilient Backlog Backlog Overview Backlog as of Q4’22 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 across Commercial
Slide 7: Single-Family Residential Weighted Towards R&R
Single-Family Residential Weighted Towards R&R Repair & Remodel Exposure Geographic Exposure Q4’22 Total SF 35% Residential Significant presence (~64% of U.S. revenues) Revenue 65% $85.1 mm Developing Presence (~ 31% of U.S. Revenues) Emerging Presence (~5% of U.S. Revenues) R&R New Residential ✓ Q4
Slide 8: Vertically-Integrated & Well-Situated Operations Create Structural Advantages
Vertically-Integrated & Well-Situated Operations Create Structural Advantages Suppliers JV & Long Term Sales, Raw Production Final Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provide
Slide 9: Financial Update
Paramount Miami Worldcenter Florida, United States FINANCIAL UPDATE 9
Slide 10: Revenue Bridge 2022 vs. 2021
Revenue Bridge 2022 vs. 2021 Q4 2022 Revenue Bridge (US$M) FY 2022 Revenue Bridge (US$M) TGLS LTM revenue mix from U.S. +90%; higher than average of 77% for U.S.-based building product peers(1) Notes: 1. Peer average includes APOG, AWI, DOOR, FBHS, JELD, MAS, MHK, OC, PGTI, ROCK, SSD, TILE, WMS, as
Slide 11: Adjusted EBITDA Bridge 2022 vs. 2021
(1) Adjusted EBITDA Bridge 2022 vs. 2021 Adjusted EBITDA margin Q4 2022 Adjusted EBITDA Bridge (US$M) 32.0% 41.3% FY 2022 Adjusted EBITDA Bridge (US$M) 30.2% 37.1% Notes: 1. Adjusted EBITDA excludes non-recurring and non-cash expenses mainly associated with our bond issuance and respective extinguis
Slide 12: Continued Balance Sheet & Leverage Profile Improvement
Continued Balance Sheet & Leverage Profile Improvement ✓Solid cash conversion of adj. EBITDA(1) driving $141.9 Improved Leverage mm of cash flow from operations in 2022 ($ in Millions) 300.0 3.5x 259.8 250.0 242.3 3.0x ✓Continued deleveraging, with lowest net debt / LTM 224.3 224.5 199.1 2.5x adj. E
Slide 13: Structurally Improved Margins & Cash Flow
Structurally Improved Margins & Cash Flow 60.0% Improved Gross Margin Operating Cash Flow Bridge (2018 – 2022) 48.8% 50.0% 40.8% 40.0% 37.0% 31.5% 30.0% 20.0% 10.0% 0.0% 2019 2020 2021 2022 ✓ Gross margin increased to 48.8% as of FY 2022, up from 31.5% at the end ✓ Tecnoglass has established a stron
Slide 14: Outlook Update
Residential Project, Florida, United States OUTLOOK UPDATE 14
Slide 15: Evolution of Revenue & Adjusted EBITDA
Evolution of Revenue & Adjusted EBITDA Revenues & Adj. EBITDA Evolution 900.0 Revenue CAGR ‘13-2023E: 16.0% Revenues Adjusted EBITDA 810 600 Adj. EBITDA CAGR ‘13-2023E: 23.7% 800.0 717 500 700.0 600.0 400 497 310 500.0 431 377 266 371 300 400.0 305 314 300.0 242 150 200 183 197 200.0 81 92 98 57 72
Slide 16: 2023 Double-Digit Growth Outlook
2023 Double-Digit Growth Outlook ▪ Expected revenue growth led by continued geographical expansion and market share gains into single-family residential, coupled with stronger momentum from multi-family and commercial backlog Revenue $790-$830 MM ▪ Adjusted EBITDA outlook incorporates expectation fo
Slide 17: Appendix
APPENDIX Hub50House Massachusetts, United States 17
Slide 18: 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 19: 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 20: 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 Twelve months ended Dec 31, Dec 31, 2022 2021 2022 2021 Net (loss) income 55,124 19,788 156,412 68,428 Less: Income (loss) attributable to non-contro
Slide 21: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of December 31, 2021 2022 Short Term Debt and Current Portion of Long Term Debt 10,700 504 Long Term Debt 188,418 168,980 Corporate Bond - - Gross Debt 199,118 169,484 Cash at the end of the per