On November 6, 2023, Tecnoglass Inc (TGLS, Financial) released its third-quarter earnings report for the period ending September 30, 2023. The company reported a revenue growth of 4.4% to $210.7 million, including a record $87.8 million in the single-family residential end market. The company's cash flow from operations reached an all-time high of $51.3 million.
Financial Highlights
Tecnoglass Inc (TGLS, Financial) reported a net income of $46.1 million, or $0.97 per diluted share. The adjusted net income was slightly higher at $46.6 million, or $0.98 per diluted share. The gross margin of 43.0% included a non-cash 660 basis point impact from unfavorable FX compared to the prior year quarter. The company's adjusted EBITDA was $71.3 million, with 340 basis points of SG&A improvement blunting the gross margin impact compared to the prior year quarter.
The company also reported strong backlog growth, expanding 20% year-over-year to a record $836 million. Tecnoglass Inc (TGLS, Financial) executed 40% of its repurchase program, totaling $20 million of stock to date. The company also more than doubled its addressable market with a strategic entrance into the high-end vinyl segment.
Company's Performance and Future Outlook
CEO of Tecnoglass, José Manuel Daes, commented on the company's performance, stating,
Our record third quarter revenues and cash flow reflect strong performance in both our multi-family/commercial and single-family residential businesses as we continue to innovate and gain market share in key geographies."He also expressed confidence in the company's ability to leverage its unique vertically integrated business model and execute against its multi-pronged growth strategy.
Looking ahead, CFO of Tecnoglass, Santiago Giraldo, stated,
We see our business performing exceptionally well in a challenging market with share gains driving double-digit organic growth, strong Adjusted EBITDA margins and substantial cash flow year-to-date."He further added that the company expects 2023 revenues to grow organically to a range of $835 million to $848 million, representing approximately 17% growth at the midpoint.
Financial Tables
The company's balance sheet shows total assets of $939.056 million as of September 30, 2023, compared to $734.308 million as of December 31, 2022. The total liabilities and shareholders' equity also increased to $939.056 million from $734.308 million over the same period.
The income statement shows a total revenue of $210.743 million for the third quarter of 2023, up from $201.780 million in the prior year quarter. The net income was $46.095 million, slightly down from $46.922 million in the prior year quarter.
The cash flow statement shows a net increase in cash of $15.301 million for the nine months ended September 30, 2023, compared to a decrease of $577 thousand for the same period in 2022.
Explore the complete 8-K earnings release (here) from Tecnoglass Inc for further details.
