Tecnoglass Q4 2020 Earnings Report
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
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.