Tecnoglass, Inc. (NASDAQ:TGLS; OTCBB:TGLSW) (“Tecnoglass” or the “Company”), a leading manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries, today announced financial results for the year ended December 31, 2013.
José M. Daes, Chief Executive Officer of Tecnoglass, commented, “Our strong results reflect the quality of our products and service, our successful market expansion efforts, and the meaningful manufacturing and delivery cost advantages we have developed over the years. During 2013, we generated higher sales in existing markets, including Colombia and the United States, which included diversification outside of south Florida. Approximately 36% of our 2013 revenues were generated in the United States. We expect that our presence in the United States and other geographies will continue to grow, driven by, among other factors, industry and macro-economic tailwinds, and increased project bonding capacity following our debut as a public company in December 2013.”
Mr. Daes concluded, “We ended the year with a strong backlog, a robust new business pipeline, and a fortified balance sheet following our December 2013 merger with Andina Acquisition Corporation. We are optimistic about 2014 and beyond, and are continuing to pursue corporate and industry alliances, enter new geographies, and invest in new and innovative products to meet anticipated growing global demand.”
2013 Results Overview
Consolidated revenues for 2013 rose 41% to $183.3 million from $130.3 million in 2012.
Gross profit rose to $55.4 million, or 30.2% of revenues, from $34.9 million, or 26.8% of revenues, last year.
As a percentage of revenues, SG&A declined to 15.4% from 18.3% last year. On a dollar basis, SG&A increased 17.8%, or $4.3 million, from 2012 due to higher shipping, insurance and personnel costs, offset by a modest decline in administrative expenses mostly due to decreased rent expense.
Operating income rose to $27.3 million from $11.0 million last year.
An extraordinary gain in non-operating income of $7.6 million was recorded to reflect the decrease in the fair value of the warrants liability, which were issued in connection with Tecnoglass’s merger with Andina Acquisition Corporation in December 2013.
Net income for 2013 increased to $22.3 million, or $1.08 per diluted share, and included an extraordinary gain in non-operating income of $7.6 million. This compared to net income of $5.9 million, or $0.29 per diluted share, in 2012 with no such gains. Excluding the $7.6 million extraordinary gain, net income for 2013 was $14.7 million, or $0.71 per diluted share.
Backlog
Consolidated backlog stood at $120 million at December 31, 2013 compared to $110 million at December 31, 2012. Backlog consists primarily of contract sales for projects that can last up to several years until completion. Backlog should not be considered a comprehensive indicator of future revenues or prospects, as a significant portion of Tecnoglass’s revenues are derived from non-contract, standard sales.
2014 Forecast
Based on current business conditions, including forecasted growth in key markets, particularly the United States, Tecnoglass expects that revenue, Adjusted EBITDA, and net income for the year ending December 31, 2014 will approximate $205.7 million, $42.2 million, and $16.8 million, respectively.
Conference Call
Management will host a conference call on Monday, April 21, 2014, at 11:00 am ET to discuss these results and other matters. Interested parties may participate in the call by dialing:
- (877) 423-9820 (Domestic)
- (201) 493-6749 (International)
The conference call will also be broadcast live via the Investor Information sector of Tecnoglass’s website at www.tecnoglass.com. To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the website for approximately 90 days.
About Tecnoglass
Tecnoglass is a leading manufacturer of hi-spec, architectural glass and windows for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, Tecnoglass operates out of a 1.2 million square foot vertically-integrated, state-of-the-art manufacturing complex that provides easy access to the Americas, the Caribbean, and the Pacific. Tecnoglass sells to more than 800 customers in North, Central and South America, with the United States accounting for approximately 36% of Company revenues in 2013. Tecnoglass’s tailored, high-end products are found on some of the world’s most distinctive properties, including the El Dorado Airport (Bogota), Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower (Miami), and The Woodlands (Houston). For more information, please visit www.tecnoglass.com
Forward Looking Statements
This press release 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 based on Tecnoglass’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass’ business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass’s filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that Tecnoglass’ financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
Tecnoglass Inc. and Subsidiaries Consolidated Statements of Income and Comprehensive Income (in thousands, except share and per share data) | ||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||
| 2013 | 2012 | |||||||||||||
| Operating revenues | $ | 183,294 | $ | 130,324 | ||||||||||
| Cost of sales | 127,875 | 95,451 | ||||||||||||
| Gross profit | 55,419 | 34,873 | ||||||||||||
| Operating expenses: | ||||||||||||||
| Selling | 17,287 | 11,756 | ||||||||||||
| General and administration | 10,862 | 12,138 | ||||||||||||
| Operating expenses net | 28,149 | 23,894 | ||||||||||||
| Operating income | 27,270 | 10,979 | ||||||||||||
| Change in fair value of warrant liability | 7,626 | - | ||||||||||||
| Non-operating revenues | 3,998 | 3,649 | ||||||||||||
| Interest expense | (7,886 | ) | (5,513 | ) | ||||||||||
| Income before taxes | 31,008 | 9,115 | ||||||||||||
| Income tax provision | 8,696 | 3,223 | ||||||||||||
| Net income | $ | 22,312 | $ | 5,892 | ||||||||||
| Comprehensive income: | ||||||||||||||
| Net income | $ | 22,312 | $ | 5,892 | ||||||||||
| Foreign currency translation adjustments | (953 | ) | 6,262 | |||||||||||
| Total comprehensive income | $ | 21,359 | $ | 12,154 | ||||||||||
| Basic income per share | $ | 1.08 | $ | 0.29 | ||||||||||
| Diluted income per share | $ | 1.08 | $ | 0.29 | ||||||||||
| Basic weighted average common shares outstanding | 20,677,067 | 20,567,141 | ||||||||||||
| Diluted weighted average common shares outstanding | 20,714,275 | 20,567,141 | ||||||||||||
Tecnoglass Inc. and Subsidiaries Consolidated Condensed Balance Sheets (in thousands, except share and per share data) | |||||||||||
| December 31, | |||||||||||
| 2013 | 2012 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash | $ | 2,866 | $ | 2,135 | |||||||
| Restricted cash | 3,633 | - | |||||||||
| Due from transfer agent | 15,908 | - | |||||||||
| Subscription receivable | 6,611 | - | |||||||||
| Investments | 1,353 | 2,675 | |||||||||
| Trade accounts receivable, net | 59,010 | 37,431 | |||||||||
| Unbilled receivables on uncompleted contracts | 11,640 | 873 | |||||||||
| Due from related parties | 19,058 | 5,294 | |||||||||
| Advances and other receivables | 13,165 | 16,796 | |||||||||
| Deferred income taxes | 2,321 | 75 | |||||||||
| Inventories | 24,181 | 21,559 | |||||||||
| Prepaid expenses | 824 | 1,606 | |||||||||
| Total current assets | 160,570 | 88,444 | |||||||||
| Property, plant and equipment, net | 87,382 | 63,032 | |||||||||
| Investments | - | 1,198 | |||||||||
| Other assets | 262 | 1,344 | |||||||||
| Total assets | $ | 248,214 | $ | 154,018 | |||||||
| Liabilities and shareholders´ equity | |||||||||||
| Current liabilities | |||||||||||
| Short-term debt and current portion of long-term debt | $ | 29,720 | $ | 7,125 | |||||||
| Note payable to shareholder | 80 | - | |||||||||
| Accounts payable and accrued expenses | 37,682 | 25,807 | |||||||||
| Taxes payables | 4,847 | 4,063 | |||||||||
| Deferred income taxes | 6,698 | - | |||||||||
| Labor liabilities | 6 | 25 | |||||||||
| Accrued liabilities and provisions | 994 | 1,714 | |||||||||
| Current portion of customer advances on uncompleted contracts | 28,470 | 17,867 | |||||||||
| Total current liabilities | 108,497 | 56,601 | |||||||||
| Warrant liability | 18,280 | - | |||||||||
| Customer advances on uncompleted contracts | 8,220 | - | |||||||||
| Long-term debt | 48,097 | 50,130 | |||||||||
| Total liabilities | 183,094 | 106,731 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity | |||||||||||
Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2013 and 2012 Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 24,214,670 and 20,567,141shares issued and outstanding at December 31, 2013 and 2012, respectively |
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2 |
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2 | |||||||||
| Legal reserves | 1,367 | 1,367 | |||||||||
| Additional paid capital | 40,693 | 44,219 | |||||||||
| Retained earnings (accumulated deficit) | 18,488 | (3,824 | ) | ||||||||
| Cumulative translation adjustment | 4,570 | 5,523 | |||||||||
| Total shareholders´ equity | 65,120 | 47,287 | |||||||||
| Total liabilities and shareholders´ equity | $ | 248,214 | $ | 154,018 | |||||||
Adjusted EBITDA Reconciliation
Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA, in addition to operating profit, net income and other GAAP measures, is useful to investors to evaluate the Company’s results because it excludes certain items that are not directly related to the Company’s core operating performance. Investors should recognize that Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. This measure should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows:
Adjusted EBITDA | Depreciation | Adjusted EBIT | Warrants Liability | Interest Expense | Tax Provision | Net Income | Net Income w/o Warrants | |||||||||||||||||||||||||
| 2012 | 22,296 | 7,668 | 14,628 | -0- | 5,513 | 3,223 | 5,892 | 5,892 | ||||||||||||||||||||||||
| 2013 | 38,506 | 7,238 | 31,268 | (7,626) | 7,886 | 8,696 | 22,312 | 14,686 | ||||||||||||||||||||||||
| 2014 F | 42,239 | 8,492 | 33,747 | -0- | 8,624 | 8,291 | 16,832 | 16,832 | ||||||||||||||||||||||||
Contacts:
Devin Sullivan, 212-836-9608
Senior Vice
President
dsullivan@equityny.com
or
Thomas
Mei, 212- 836-9614
Associate
tmei@equityny.com
