- Record Total Revenues of $201.8 Million, Up 53% Year-Over-Year -
- Revenues Driven Entirely by Organic Growth in Both Single-Family Residential and Commercial Businesses -
- Record Gross Margin of 52.2%, Up 1300 Basis Points Year-Over-Year -
- Record Net Income of $46.9 Million and $0.98 Per Diluted Share -
- Record Adjusted Net Income1 of $48.0 Million and $1.01 Per Diluted Share -
- Adjusted EBITDA1 More Than Doubled Year-Over-Year to $78.5 Million, or 38.9% of Total Revenues -
- Cash Flow from Operations of $29.1 Million Drives All Time Low Leverage Now Standing at 0.4x -
- Backlog Expanded 21.1% Year-Over-Year to a Record $696.9 Million -
- Facility Investments Remain on Track to Increase Operational Capacity to ~$950 Million in Revenues in the Second Quarter of 2023 -
- Increases Full Year 2022 Growth Outlook to Adjusted EBITDA1 of $240 Million to $255 Million on Total Revenues of $680 Million to $700 Million -
- Board of Directors Authorizes a $50 million Share Repurchase Program Based on Business Strength, Robust Backlog Growth and Cashflow Generation -
BARRANQUILLA, Colombia, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NYSE: TGLS) (“Tecnoglass” or the “Company”), a leading manufacturer of architectural glass, windows, and associated aluminum products serving the global residential and commercial end markets, today reported financial results for the third quarter ended September 30, 2022.
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, "The strong efforts of our entire team led to another quarter of record results across nearly all metrics while operating through a complex macro environment. Demand for our high-performance architectural glass, window and aluminum products remains robust, with significant momentum in our single-family residential business, in addition to an acceleration in our commercial orders. We are set up to continue growing faster than the market as a result of our multi-year effort to diversify our business with new customers, products, end markets and geographies. We were especially pleased to achieve a record gross margin in excess of 50%. While this gross margin was well ahead of our normalized level, our performance demonstrates the power of our prior investments in automation and capacity enhancements, our unique, vertically-integrated platform and our strategic positioning in attractive markets. This gives us confidence that our current targeted investments to further modernize, automate and expand our operations will enable us to maintain short lead times, increase revenues and produce solid returns.”
José Manuel Daes continued, “The structural enhancements in our business, our diversified revenue mix, and our prudent working capital management have helped us generate 11 straight quarters of exceptional cash flow. Based on the Board’s confidence in our strategy and cash generation, we are pleased to announce today the authorization of a new $50 million share repurchase program as an additional avenue to build value in our Company. As we move forward, we believe our structural advantages and highly profitable growth strategy will allow us to continue generating exceptional cash flow as we look to deliver value for our shareholders.”
Christian Daes, Chief Operating Officer of Tecnoglass, added, “We are extremely pleased with our ability to produce another quarter of record results and above market growth. Our results reflect our ability to capitalize on strengthening commercial activity in attractive high growth markets in addition to capturing solid demand and share gains through the expansion of our single-family residential business. Our track record of successfully delivering high profile projects and maintaining superb lead times for our customers has earned us an increasing number of opportunities across the U.S., demonstrated by our expanding backlog of multifamily and commercial projects, up 21.1% year-over-year. We are also thrilled with the continued momentum across our business into the fourth quarter, which is reflected in our increased full year 2022 growth outlook. With our innovative product portfolio, strong industry relationships and structural competitive advantages, we believe we are on the path to continue growing faster than our end markets into 2023 and beyond.”
Third Quarter 2022 Results
Total revenues for the third quarter of 2022 increased 53.3% to $201.8 million compared to $131.7 million in the prior year quarter, driven by an increase in the Company’s commercial activity, strong growth in single-family residential activity and market share gains. Single-family residential revenues increased approximately 44% year-over-year, representing 42.5% of total revenues for the third quarter, helped by continued strong demand within the repair and remodeling space, the ongoing expansion of the Company’s Multimax product line, and a larger customer base. Changes in foreign currency exchange rates had an adverse impact of $0.7 million on both Colombia revenues and total revenues in the quarter.
Gross profit for the third quarter of 2022 nearly doubled to $105.3 million, representing a 52.2% gross margin, compared to gross profit of $51.5 million, representing a 39.2% gross margin in the prior year quarter. The 1,300 basis point improvement in gross margin mainly reflected operating leverage on higher sales, favorable pricing dynamics, greater operating efficiencies related to automation and a favorable FX trend given the recent strengthening of the US Dollar. Selling, general and administrative expense (“SG&A”) was $35.2 million compared to $21.7 million in the prior year quarter, with the majority of the increase attributable to higher shipping expenses as a result of a higher sales volume and higher shipping rates. Additionally, the Company incurred a one-time settlement expense related to a project contracted in 2016 that is now fully resolved. As a percent of total revenues, SG&A was 17.4% compared to 16.5% in the prior year quarter. Excluding the aforementioned settlement, SG&A as a percent of total revenues improved by 180 basis points compared to the prior year quarter.
Net income was $46.9 million, or $0.98 per diluted share, in the third quarter of 2022 compared to net income of $20.7 million, or $0.43 per diluted share, in the prior year quarter, including a non-cash foreign exchange transaction loss of $0.5 million in the third quarter of 2022 and a $0.2 million gain in the third quarter of 2021. As previously disclosed, these non-cash gains and losses are related to the accounting re-measurement of U.S. Dollar denominated assets and liabilities against the Colombian Peso as functional currency.
Adjusted net income1 was $48.0 million, or $1.01 per diluted share, in the third quarter of 2022 compared to adjusted net income of $21.2 million, or $0.45 per diluted share, in the prior year quarter. Adjusted net income1, as reconciled in the table below, excludes the impact of non-cash foreign exchange transaction gains or losses and other non-core items, along with the tax impact of adjustments at statutory rates, to better reflect core financial performance.
Adjusted EBITDA1, as reconciled in the table below, more than doubled to $78.5 million, or 38.9% of total revenues, in the third quarter of 2022, compared to $38.5 million, or 29.2% of total revenues, in the prior year quarter. The improvement was driven by higher sales and a stronger gross margin. Adjusted EBITDA1 included a $0.9 million contribution from the Company’s joint venture with Saint-Gobain, compared to $0.8 million in the prior year quarter.
Balance Sheet & Liquidity
The Company ended the third quarter of 2022 with total liquidity of approximately $255 million, including cash and cash equivalents of $84 million and availability under its committed revolving credit facilities of $170 million. Given the Company’s continued growth in adjusted EBITDA1 and strong cash generation, debt leverage continues to trend lower and now stands at 0.4 times net debt to LTM adjusted EBITDA1, compared to 0.9 times in the prior year quarter.
High-Return Capital Investments
During 2022, the Company initiated enhancements at its glass and aluminum facilities to increase production capacity and automate operations. Based on the timing of capital investments, the Company maintains its expectation to increase installed production capacity to an amount equivalent to over $800 million of annual sales by the end of 2022, followed by a further expansion of installed production capacity to an amount equivalent to approximately $950 million of annual sales by the end of the second quarter of 2023.
Dividend
The Company declared a quarterly cash dividend of $0.075 per share for the third quarter of 2022, representing a 15% increase from the previous dividend, which was paid on October 31, 2022 to shareholders of record as of the close of business on September 30, 2022.
Share Repurchase Program
On November 3, 2022, the Company’s Board of Directors authorized Tecnoglass to buy back up to $50 million of its common shares. The timing and amount of any share repurchases under the share repurchase program will be determined by Tecnoglass management at its discretion based on ongoing assessments of the capital needs of the business, the market price of Tecnoglass common stock and general market conditions. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, in block trades, trading plans in accordance with Rule 10b-5 under the Securities Exchange Act of 1934, as amended, or any combination of such methods. Open market purchases will be made in compliance with the “safe harbor” provisions of Rule 10b-18 under the Exchange Act. The program does not obligate Tecnoglass to acquire any particular amount of its common stock, has no set expiration date and may be suspended or discontinued at any time at the Company’s discretion subject to applicable securities laws.
Full Year 2022 Outlook
Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “Based on our exceptional third quarter performance and expectations for continued growth for our products through year-end, we are increasing our full year 2022 growth outlook for revenues and adjusted EBITDA1. We now expect 2022 revenues to grow to a range of $680 million to $700 million and for adjusted EBITDA1 to increase to a range of $240 million to $255 million. This implies adjusted EBITDA growth of approximately 67% at the midpoint. We expect to further build upon our strong track record of strategic execution and leverage our vertically integrated business model, which positions us to drive another year of record results and cash flow in the full year 2022.”
Webcast and Conference Call
Management will host a webcast and conference call on November 3, 2022 at 10:00 a.m. Eastern time (9:00 a.m. Bogota, Colombia time) to review the Company’s results. The conference call will be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the call and view the slides, please visit the Investor Relations section of Tecnoglass' website at www.tecnoglass.com. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. For those unable to access the webcast, the conference call will be accessible by dialing 1-844-943-2944 (domestic) or 1- 973-528-0098 (international). Upon dialing in, please provide conference entry code 487318.
If you are unable to listen live, a replay of the webcast will be archived on the website. You may also access the conference call playback by dialing (800)-332-6854 (Domestic) or (973)-528-0005 (International) and entering passcode: 487318.
About Tecnoglass
Tecnoglass Inc. is a leading producer of architectural glass, windows, and associated aluminum products serving the multi-family, single-family and commercial end markets. Tecnoglass is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. Located in Barranquilla, Colombia, the Company’s 3.8 million square foot, vertically-integrated and state-of-the-art manufacturing complex provides efficient access to over 1,000 global customers, with the U.S. accounting for more than 90% of revenues. Tecnoglass' tailored, high-end products are found on some of the world's most distinctive properties, including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá), One Plaza (Medellín), Pabellon de Cristal (Barranquilla). For more information, please visit www.tecnoglass.com or view our corporate video at https://vimeo.com/134429998.
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’ 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’ 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 and changes in assumptions or otherwise, except as required by law.
Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.
Investor Relations:
Santiago Giraldo
CFO
305-503-9062
investorrelations@tecnoglass.com
Tecnoglass Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
| September 30, | December 31, | ||||||||
| 2022 | 2021 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 84,434 | $ | 85,011 | |||||
| Investments | 2,211 | 1,977 | |||||||
| Trade accounts receivable, net | 133,854 | 110,539 | |||||||
| Due from related parties | 1,642 | 2,252 | |||||||
| Inventories | 122,802 | 84,975 | |||||||
| Contract assets – current portion | 17,496 | 18,667 | |||||||
| Other current assets | 29,739 | 22,854 | |||||||
| Total current assets | $ | 392,178 | $ | 326,275 | |||||
| Long-term assets: | |||||||||
| Property, plant and equipment, net | $ | 184,110 | $ | 166,629 | |||||
| Deferred income taxes | 2,897 | 596 | |||||||
| Contract assets – non-current | 7,135 | 11,853 | |||||||
| Long-term trade accounts receivable | 4,138 | 3,995 | |||||||
| Intangible assets | 2,826 | 3,337 | |||||||
| Goodwill | 23,561 | 23,561 | |||||||
| Long-term investments | 57,249 | 51,160 | |||||||
| Other long-term assets | 3,988 | 4,157 | |||||||
| Total long-term assets | 285,904 | 265,288 | |||||||
| Total assets | $ | 678,082 | $ | 591,563 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Short-term debt and current portion of long-term debt | $ | 434 | $ | 10,700 | |||||
| Trade accounts payable and accrued expenses | 86,707 | 68,087 | |||||||
| Due to related parties | 5,209 | 3,857 | |||||||
| Dividends payable | 3,621 | 3,141 | |||||||
| Contract liability – current portion | 53,251 | 45,213 | |||||||
| Other current liabilities | 43,285 | 24,017 | |||||||
| Total current liabilities | $ | 192,507 | $ | 155,015 | |||||
| Long-term liabilities: | |||||||||
| Deferred income taxes | $ | 3,939 | $ | 3,417 | |||||
| Contract liability – non-current | 11 | 78 | |||||||
| Long-term debt | 168,255 | 188,355 | |||||||
| Total long-term liabilities | 172,205 | 191,850 | |||||||
| Total liabilities | $ | 364,712 | $ | 346,865 | |||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Preferred shares, $0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | $ | — | $ | — | |||||
| Ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 47,674,773 and 47,674,773 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 5 | 5 | |||||||
| Legal Reserves | 1,458 | 2,273 | |||||||
| Additional paid-in capital | 219,290 | 219,290 | |||||||
| Retained earnings | 182,859 | 91,045 | |||||||
| Accumulated other comprehensive loss | (91,593 | ) | (68,751 | ||||||
| Shareholders’ equity attributable to controlling interest | 312,019 | 243,862 | |||||||
| Shareholders’ equity attributable to non-controlling interest | 1,351 | 836 | |||||||
| Total shareholders’ equity | 313,370 | 244,698 | |||||||
| Total liabilities and shareholders’ equity | $ | 678,082 | $ | 591,563 | |||||
Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except share and per share data)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Operating revenues: | ||||||||||||||||||||
| External customers | $ | 201,240 | $ | 131,201 | $ | 503,919 | $ | 363,777 | ||||||||||||
| Related parties | 540 | 458 | 1,533 | 1,189 | ||||||||||||||||
| Total operating revenues | 201,780 | 131,659 | 505,452 | 364,966 | ||||||||||||||||
| Cost of sales | 96,484 | 80,110 | 266,191 | 218,978 | ||||||||||||||||
| Gross profit | 105,296 | 51,549 | 239,261 | 145,988 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling expense | (20,250 | ) | (13,310 | ) | (50,234 | ) | (36,423 | ) | ||||||||||||
| General and administrative expense | (14,914 | ) | (8,351 | ) | (36,040 | ) | (25,476 | ) | ||||||||||||
| Other professional fees | - | - | (3,402 | ) | - | |||||||||||||||
| Total operating expenses | (35,164 | ) | (21,661 | ) | (89,676 | ) | (61,899 | ) | ||||||||||||
| Operating income | 70,132 | 29,888 | 149,585 | 84,089 | ||||||||||||||||
| Non-operating income (expenses), net | 634 | 139 | 1,137 | 69 | ||||||||||||||||
| Equity method income | 1,821 | 1,291 | 5,070 | 3,170 | ||||||||||||||||
| Foreign currency transactions (loss) gains | (450 | ) | 188 | (856 | ) | 333 | ||||||||||||||
| Gain (loss) on debt extinguishment | - | 175 | - | (10,803 | ) | |||||||||||||||
| Interest expense and deferred cost of financing | (2,249 | ) | (2,156 | ) | (5,432 | ) | (8,120 | ) | ||||||||||||
| Income before taxes | 69,888 | 29,525 | 149,504 | 68,738 | ||||||||||||||||
| Income tax provision | (22,966 | ) | (8,866 | ) | (48,216 | ) | (20,155 | ) | ||||||||||||
| Net income | $ | 46,922 | $ | 20,659 | $ | 101,288 | $ | 48,583 | ||||||||||||
| Income attributable to non-controlling interest | (196 | ) | (20 | ) | (515 | ) | (160 | ) | ||||||||||||
| Income attributable to parent | $ | 46,726 | $ | 20,639 | $ | 100,773 | $ | 48,423 | ||||||||||||
| Comprehensive income: | ||||||||||||||||||||
| Net income | $ | 46,922 | $ | 20,659 | $ | 101,288 | $ | 48,583 | ||||||||||||
| Foreign currency translation adjustments | (22,054 | ) | (4,023 | ) | (32,039 | ) | (20,842 | ) | ||||||||||||
| Change in fair value of derivative contracts | 4,865 | - | 9,197 | (159 | ) | |||||||||||||||
| Total comprehensive income | $ | 29,733 | $ | 16,636 | $ | 78,446 | $ | 27,582 | ||||||||||||
| Comprehensive (loss) income attributable to non-controlling interest | (196 | ) | (20 | ) | (515 | ) | (160 | ) | ||||||||||||
| Total comprehensive income attributable to parent | $ | 29,537 | $ | 16,616 | $ | 77,931 | $ | 27,422 | ||||||||||||
| Basic income per share | $ | 0.98 | $ | 0.43 | $ | 2.12 | $ | 1.02 | ||||||||||||
| Diluted income per share | $ | 0.98 | 0.43 | $ | 2.12 | $ | 1.02 | |||||||||||||
| Basic weighted average common shares outstanding | 47,674,773 | 47,674,773 | 47,674,773 | 47,674,773 | ||||||||||||||||
| Diluted weighted average common shares outstanding | 47,674,773 | 47,674,773 | 47,674,773 | 47,674,773 | ||||||||||||||||
Tecnoglass Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Nine months ended September 30, | |||||||||
| 2022 | 2021 | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
| Net income | $ | 101,288 | $ | 48,584 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||
| Allowance for credit losses | 541 | 1,056 | |||||||
| Depreciation and amortization | 15,089 | 15,613 | |||||||
| Deferred income taxes | 140 | 398 | |||||||
| Equity method income | (5,070 | ) | (3,170 | ) | |||||
| Deferred cost of financing | 1,059 | 994 | |||||||
| Other non-cash adjustments | (22 | ) | (25 | ) | |||||
| Loss on debt extinguishment | - | 2,333 | |||||||
| Unrealized currency translation losses | 9,482 | 4,582 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Trade accounts receivable | (29,486 | ) | (16,472 | ) | |||||
| Inventories | (53,911 | ) | (8,430 | ) | |||||
| Prepaid expenses | (1,126 | ) | (2,111 | ) | |||||
| Other assets | (1,646 | ) | (9,704 | ) | |||||
| Trade accounts payable and accrued expenses | 14,638 | 40,547 | |||||||
| Accrued interest expense | (1 | ) | (7,172 | ) | |||||
| Taxes payable | 23,962 | 11,929 | |||||||
| Labor liabilities | 1,629 | 967 | |||||||
| Other liabilities | (1,851 | ) | (419 | ) | |||||
| Contract assets and liabilities | 14,974 | 14,934 | |||||||
| Related parties | 2,409 | (1,606 | ) | ||||||
| CASH PROVIDED BY OPERATING ACTIVITIES | $ | 92,098 | $ | 92,828 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
| Proceeds from sale of investments | - | 177 | |||||||
| Proceeds from sale of property and equipment | - | 75 | |||||||
| Purchase of investments | (1,285 | ) | (63 | ) | |||||
| Acquisition of property and equipment | (46,817 | ) | (32,066 | ) | |||||
| CASH USED IN INVESTING ACTIVITIES | $ | (48,102 | ) | $ | (31,877 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
| Cash dividend | (9,294 | ) | (3,932 | ) | |||||
| Loss on debt extinguishment - call premium | - | (8,610 | ) | ||||||
| Deferred financing transaction costs | - | (88 | ) | ||||||
| Proceeds from debt | 59 | 221,135 | |||||||
| Repayments of debt | (32,002 | ) | (247,024 | ) | |||||
| CASH USED IN FINANCING ACTIVITIES | $ | (41,237 | ) | $ | (38,519 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | $ | (3,336 | ) | $ | (3,329 | ) | |||
| NET INCREASE IN CASH | (577 | ) | 19,103 | ||||||
| CASH - Beginning of period | 85,011 | 67,668 | |||||||
| CASH - End of period | $ | 84,434 | $ | 86,771 | |||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||
| Cash paid during the period for: | |||||||||
| Interest | $ | 4,136 | $ | 14,124 | |||||
| Income Tax | $ | 25,377 | $ | 9,302 | |||||
| NON-CASH INVESTING AND FINANCING ACTIVITES: | |||||||||
| Assets acquired under credit or debt | $ | 4,555 | $ | 1,641 | |||||
Revenues by Region
(Amounts in thousands)
(Unaudited)
| Three months ended | Twelve months ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||
| Revenues by Region | |||||||||||||
| United States | 193,504 | 123,237 | 57.0 | % | 604,371 | 420,733 | 43.6 | % | |||||
| Colombia | 4,817 | 5,234 | -8.0 | % | 18,968 | 31,301 | -39.4 | % | |||||
| Other Countries | 3,459 | 3,189 | 8.5 | % | 13,933 | 15,899 | (12.4 | %) | |||||
| Total Revenues by Region | 201,780 | 131,659 | 53.3 | % | 637,271 | 467,933 | 36.2 | % | |||||
Reconciliation of Non-GAAP Performance Measures to GAAP Performance Measures
(In thousands)
(Unaudited)
The Company believes that total revenues with foreign currency held neutral non-GAAP performance measures, which management uses in managing and evaluating the Company's business, may provide users of the Company's financial information with additional meaningful bases for comparing the Company's current results and results in a prior period, as these measures reflect factors that are unique to one period relative to the comparable period. However, these non‑GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States.
| Three months ended | Twelve months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||
| Total Revenues with Foreign Currency Held Neutral | 202,444 | 131,659 | 53.8 | % | 639,181 | 467,933 | 36.6 | % | |||||||
| Impact of changes in foreign currency | (664 | ) | - | (1,910 | ) | - | |||||||||
| Total Revenues, As Reported | 201,780 | 131,659 | 53.3 | % | 637,271 | 467,933 | 36.2 | % | |||||||
Currency impacts on total revenues for the current quarter have been derived by translating current quarter revenues at the prevailing average foreign currency rates during the prior year quarter, as applicable.
Reconciliation of Adjusted EBITDA and Adjusted net (loss) income to net (loss) income
(In thousands, except share and per share data)
(Unaudited)
Adjusted EBITDA and adjusted net (loss) income are not measures of financial performance under generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA and adjusted net (loss) income, in addition to operating profit, net (loss) 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 and adjusted net (loss) income might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP.
Reconciliations of the non-GAAP measures used in this press release are included in the tables attached to this press release, to the extent available without unreasonable effort. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures.
A reconciliation of Adjusted net (loss) income and Adjusted EBITDA to the most directly comparable GAAP measure in accordance with SEC Regulation G follows, with amounts in thousands:
| Three months ended | Nine months ended | ||||||||||||
| Sep 30, | Sep 30, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net (loss) income | 46,922 | 20,659 | 101,288 | 48,583 | |||||||||
| Less: Income (loss) attributable to non-controlling interest | (196 | ) | (20 | ) | (515 | ) | (160 | ) | |||||
| (Loss) Income attributable to parent | 46,726 | 20,639 | 100,773 | 48,423 | |||||||||
| Foreign currency transactions losses (gains) | 450 | (188 | ) | 856 | (333 | ) | |||||||
| Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 538 | 1,266 | 1,947 | 3,524 | |||||||||
| Non Recurring professional fees | - | - | 3,402 | - | |||||||||
| Extinguishment of debt - Call Option Premium | - | - | - | 8,610 | |||||||||
| Extinguishment of debt - Deferred Costs | - | (175 | ) | - | 2,193 | ||||||||
| Joint Venture VA (Saint Gobain) adjustments | 771 | (44 | ) | 1,743 | 102 | ||||||||
| Change in FV of Hedging Derivatives | - | 4 | - | (176 | ) | ||||||||
| Tax impact of adjustments at statutory rate | (528 | ) | (276 | ) | (2,384 | ) | (4,454 | ) | |||||
| Adjusted net (loss) income | 47,957 | 21,226 | 106,335 | 57,889 | |||||||||
| Basic income (loss) per share | 0.98 | 0.43 | 2.11 | 1.02 | |||||||||
| Diluted income (loss) per share | 0.98 | 0.43 | 2.11 | 1.02 | |||||||||
| Diluted Adjusted net income (loss) per share | 1.01 | 0.45 | 2.23 | 1.21 | |||||||||
| Diluted Weighted Average Common Shares Outstanding in thousands | 47,675 | 47,675 | 47,675 | 47,675 | |||||||||
| Basic weighted average common shares outstanding in thousands | 47,675 | 47,675 | 47,675 | 47,675 | |||||||||
| Diluted weighted average common shares outstanding in thousands | 47,675 | 47,675 | 47,675 | 47,675 | |||||||||
| Three months ended | Nine months ended | ||||||||||||
| Sep 30, | Sep 30, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net (loss) income | 46,922 | 20,659 | 101,288 | 48,583 | |||||||||
| Less: Income (loss) attributable to non-controlling interest | (196 | ) | (20 | ) | (515 | ) | (160 | ) | |||||
| (Loss) Income attributable to parent | 46,726 | 20,639 | 100,773 | 48,423 | |||||||||
| Interest expense and deferred cost of financing | 2,249 | 2,156 | 5,432 | 8,120 | |||||||||
| Income tax (benefit) provision | 22,966 | 8,866 | 48,216 | 20,155 | |||||||||
| Depreciation & amortization | 4,627 | 5,098 | 15,089 | 15,605 | |||||||||
| Foreign currency transactions losses (gains) | 450 | (188 | ) | 856 | (333 | ) | |||||||
| Non Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 538 | 1,266 | 1,947 | 3,269 | |||||||||
| Non Recurring professional fees | - | - | 3,402 | - | |||||||||
| Extinguishment of debt - Call Option Premium | - | - | - | 8,610 | |||||||||
| Extinguishment of debt - Deferred Costs | - | (175 | ) | - | 2,193 | ||||||||
| Joint Venture VA (Saint Gobain) EBITDA adjustments | 948 | 813 | 2,709 | 2,154 | |||||||||
| Change in FV of Hedging Derivatives | - | 4 | - | (176 | ) | ||||||||
| Adjusted EBITDA | 78,504 | 38,479 | 178,422 | 108,020 | |||||||||
