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Dec 31, 2020
Tecnoglass Q4 2020 Earnings Report
Tecnoglass reported a return to growth in total revenues and a significant increase in gross profit for Q4 2020.
Key Takeaways
Tecnoglass reported a 1.0% increase in total revenues for the fourth quarter of 2020, driven by strong growth in U.S. revenues, particularly in the single-family residential sector. The company's gross margin improved significantly due to greater operating efficiencies and a higher mix of manufacturing revenue. Tecnoglass is optimistic about continued growth and strong cash flow generation in 2021.
Total revenues increased by 1.0% compared to the prior year quarter.
U.S. revenues grew by 4.8%, representing 86% of total revenues.
Gross profit increased by 25.8% with a 710 basis point improvement in gross margin.
Net income was $18.5 million, or $0.39 per diluted share, compared to $10.9 million, or $0.23 per diluted share, in the prior year quarter.
Tecnoglass
Tecnoglass
Tecnoglass Revenue by Segment
Tecnoglass Revenue by Geographic Location
Revenue by Segment
Single-Family Residential Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comColombia Revenue
CapyFin.com Forward Guidance
The company introduced its full year 2021 outlook for revenue to grow to a range of $400 million to $415 million. In addition, they anticipate full year Adjusted EBITDA to grow to a range of $100 million to $110 million.
Positive Outlook
- Revenue growth to a range of $400 million to $415 million.
- Adjusted EBITDA to grow to a range of $100 million to $110 million.
- Stronger demand in the U.S. is expected to continue.
- Track record of strong cash flow generation to continue in the full year 2021.
- Single-family residential representing a growing share of revenues.
Challenges Ahead
- Higher unit costs for raw materials.
- More normalized revenue mix.
- Slower recovery in Latin American markets.
- Foreign currency exchange rates had an adverse impact of $0.7 million on Colombia and total revenues in the quarter.
- COVID-19 related factors delayed activity at many customer job sites in Colombia.