Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q3 2021 Earnings Presentation
18 slides from Tecnoglass's earnings presentation, Nov 8, 2021
Slide 1: Third Quarter 2021 Earnings Conference Call
THIRD QUARTER 2021 EARNINGS CONFERENCE CALL November 8, 2021 – 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
LVL 29 Texas, United States SUMMARY & HIGHLIGHTS
Slide 4: Q3 2021 Key Takeaways
Q3 2021 Key Takeaways ✓ Structural advantages drove record revenues, gross profit, operating Sales By Geography income, net income, Adjusted EBITDA, and cash flow from operations 6% ✓ Total Revenues increased 26.2% to a record $130.4 mm led by strong U.S. growth, up 28.8% to $123.2 mm, accounting fo
Slide 5: U.S. Growth Driving Resilient Backlog
U.S. Growth Driving Resilient Backlog Backlog Overview Backlog as of Q3’21 by End Market Commercial ✓ Our track record of successfully delivering high profile projects has earned us an increasing Multi Family / Residential Related number of opportunities across the U.S., evidenced 41% Backlog by our
Slide 6: Continued Expansion Into U.S. SF Residential
Continued Expansion Into U.S. SF Residential U.S. Single Family Residential Revenue Mix ✓ Single family residential sales increased 213% YoY in FY 2017 LTM Q3’21 Q3’21 ✓ Single family sales revenues account for ~35% of LTM Total U.S. Total U.S. 35% U.S. revenues (48% in Q3), compared to 3% in 2017 R
Slide 7: Vertically-Integrated & Well-Situated Operations Driving Step-Change in Results
Vertically-Integrated & Well-Situated Operations Driving Step-Change in Results Suppliers JV & Long Term Sales, Raw Production Final Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provi
Slide 8: ESG Strategy
ESG Strategy Outstanding Achievements Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsible Growth Efficient Consumption and Employee Training and Ethics and Compliance Water Saving Education Programs Program +15
Slide 9: ESG Strategy
ESG Strategy Our Sustainability Strategy contains the Company’s guidelines and value propositions to meet the expectations of our stakeholders Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsible Growth Encourag
Slide 10: Financial Update
Paramount Miami Worlcenter Florida, United States FINANCIAL UPDATE 10
Slide 11: Revenue Bridge Q3 2021 vs Q3 2020
Revenue Bridge Q3 2021 vs Q3 2020 Q3 2021 Revenue Bridge (US$M) ✓ Total revenues increased $27.1m or 26% in Q3’21, due to ✓ Single family residential revenues increased $40.4 mm, or higher sales in the U.S. through robust growth in single 213%, to $59.4 mm in Q3’21, and accounted for ~46% of family
Slide 12: Adjusted EBITDA Bridge Q3 2021 vs Q3 2020
(1) Adjusted EBITDA Bridge Q3 2021 vs Q3 2020 Adjusted EBITDA margin Q3 2021 Adjusted EBITDA Bridge (US$M) 29.7% 27.5% ✓ Gross margin increased ~80 bps to 39.6% YoY mainly on ✓ Record Q3 adjusted EBITDA on a dollar and margin basis, greater operating efficiencies and a higher mix of revenue resultin
Slide 13: Improved Balance Sheet & Leverage Profile
Improved Balance Sheet & Leverage Profile Improved Leverage ✓Solid cash conversion of adj. EBITDA(1) driving $32.6 mm of cash flow from operations in Q3’21 ($ in Millions) 3.0x ✓Continued deleveraging, with lowest net debt / LTM 2.6x 2.3x adj. EBITDA(1) since 2015 at 0.9x 1.6x ✓Pro forma liquidity o
Slide 14: Outlook Update
Residential Project, Florida, United States OUTLOOK UPDATE 14
Slide 15: Improved 2021E Growth Outlook
Improved 2021E Growth Outlook ▪ Revenue growth led by U.S. activity primarily through rapid expansion into the single family residential Revenue market $485-$495 MM ▪ Adjusted EBITDA outlook incorporates full year gross +29-32% YoY margins in the high 30% range, mainly attributable to more favorable
Slide 16: Appendix
APPENDIX Hub50House Massachusetts, United States 16
Slide 17: 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, 2021 2020 2021 2020 Net (loss) income 20.943 8.271 48.470 5.657 Less: Income (loss) attributable to non-controlling
Slide 18: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of September 30, 2020 2021 Short Term Debt and Current Portion of Long Term Debt 3.246 13.047 Long Term Debt 34.806 189.408 Corporate Bond 208.329 - Gross Debt 246.381 202.455 Cash at the end of