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Sep 30, 2020

Tecnoglass Q3 2020 Earnings Report

Reported a net income of $8.3 million and an adjusted net income of $12.7 million, or $0.28 per diluted share, with adjusted EBITDA increased by 19% year-over-year to a record $28.5 million at a margin of 27.5%.

Key Takeaways

Tecnoglass reported strong Q3 2020 results, with record quarterly gross profit, adjusted EBITDA, and operating cash flow. U.S. revenues grew, driven by single-family housing. The company secured a new $300 million credit facility and provided full-year 2020 Adjusted EBITDA outlook of $95 million to $100 million.

Record year-to-date Adjusted EBITDA of $72.1 million with a 500 basis point improvement in Adjusted EBITDA margin year-over-year.

U.S. revenues increased, led by growth in single-family housing.

New $300 million credit facility expected to reduce weighted average interest rate by more than half.

Full year 2020 Adjusted EBITDA outlook of $95 million to $100 million.

Total Revenue
$103M
Previous year: $108M
-4.8%
EPS
$0.28
Previous year: $0.18
+55.6%
Gross Margin
38.8%
Previous year: 33%
+17.6%
Gross Profit
$40.1M
Previous year: $35.7M
+12.2%
Cash and Equivalents
$69.4M
Previous year: $41.7M
+66.3%
Free Cash Flow
$19.9M
Previous year: -$7.61M
-361.5%
Total Assets
$516M
Previous year: $558M
-7.4%

Tecnoglass

Tecnoglass

Tecnoglass Revenue by Geographic Location

Forward Guidance

The company provided a full year 2020 Adjusted EBITDA outlook of $95 million to $100 million.

Positive Outlook

  • Positive trends in business have continued into the fourth quarter.
  • Single-family residential is representing a growing share of revenues.
  • Expect revenue in the fourth quarter to be comparable to the prior year quarter.
  • Expect a higher mix of product revenue versus installation revenue.
  • Expect stronger demand in the U.S. to offset the slower recovery in Latin American markets.