Tecnoglass Inc

Previous wording

Operating revenues increased $27.6 million, or 13.1%, from $210.7 during the quarter ended September 30, 2023, to $238.3 million, during the quarter ended September 30, 2024. Strong revenues during the third quarter of 2024 were driven by strong activity in the U.S market, where revenues increased $27.8 million, or 13.9% year over year, from $200.3 million during the quarter ended September 30, 2023, to $228.2 million during the quarter ended September 30, 2024. The increase was driven by higher residential revenues, up $21.9 million, or 25.0% year over year, resulting from strong demand since the beginning of 2024. Commercial market revenues increased $5.7 million, or 4.6% year over year, as we continue to execute on our growing backlog. Revenues from Latin-America remained stable at approximately $10.1 million year over year.

Current wording

Operating revenues increased $29.7 million, or 15.4%, from $192.6 during the quarter ended March 31, 2024, to $222.3 million, during the quarter ended March 31, 2025. Strong revenues during the first quarter of 2025 were driven by strong activity in the U.S market, where revenues increased $28.5 million, or 15.5% year over year, to $212.5 million during the quarter ended March 31, 2025. The increase was driven by higher residential revenues, up $15.8 million, or 21.6% year over year, resulting from strong demand momentum since 2024. Commercial market revenues increased $13.9 million, or 11.6% year over year, as we continue to execute our growing backlog. Revenues from Latin-America increased $9.8 million, or 14.0% year over year.

Previous wording

Gross profit increased $18.7 million, or 20.7%, from $90.5 million during the three months ended September 30, 2023, to $109.2 million, during the three months ended September 30, 2024. The gross profit margin during the three months ended September 30, 2024, was 45.8%, up from 43.0% during the third quarter of 2023, primarily related to favorable pricing dynamic, a more profitable revenue mix, as residential sales (with no installation) represent 46.0% of our total revenues in 2024, compared to 41.7% in 2023.

Current wording

Gross profit increased $2.9 million, or 30.6%, from $74.7 million during the three months ended March 31, 2024, to $97.5 million, during the three months ended March 31, 2025. The gross profit margin during the three months ended March 31, 2025, was 43.9%, up from 38.8% during the first quarter of 2024, primarily related to better pricing on certain residential market products, improved operating leverage, and a favorable FX dynamic impacting our COP denominated costs, as the Colombian peso depreciated 7.1% against the U.S. dollar year over year.

Previous wording

Operating expenses increased $12.0 million, or 40.7%, from $29.5 million to $41.5 million for the quarters ended September 30, 2023 and 2024, respectively. The increase resulted primarily from higher administrative and selling expenses to support a larger operation and ongoing geographical expansion over the US market, as well as inflation adjusted increases on administrative expenses such as salaries and others.

Current wording

Operating expenses increased $8.8 million, or 26.3%, from $33.6 million to $42.5 million for the quarters ended March 31, 2024 and 2025, respectively. The increase resulted primarily from recent Tariffs on imports into the U.S. which generated $4.7 million expense. Additionally, selling, general and administrative expenses grew to larger operation and ongoing geographical expansion over the US market, including inflation adjustment increases on personnel expense and fees.

Previous wording

During the three months ended September 30, 2024, the Company recorded a non-operating gain of $0.9 million associated with foreign currency transactions compared to a net non-operating gain of $1.1 million during the three months ended September 30, 2023.

Current wording

During the three months ended March 31, 2025, the Company recorded a non-operating loss of $0.5 million associated with foreign currency transactions compared to a net non-operating loss of $0.2 million during the three months ended March 31, 2024.

Previous wording

Interest expense and deferred cost of financing decreased $0.5 million, or 22.1%, to $1.8 million during the quarter ended September 30, 2024, as the Company voluntarily prepaid $47.0 million during the year to reduce its debt balance and benefited from having a favorable interest rate hedge in place for 100% of its outstanding syndicated debt after giving effect to the voluntary prepayments.

Current wording

Interest expense and deferred cost of financing decreased $0.8 million, or 36.8%, to $1.3 million during the quarter ended March 31, 2025, as the Company voluntarily prepaid $62 million during 2024 to reduce its debt balance and benefited from having a favorable interest rate hedge in place for 100% of its outstanding syndicated debt after giving effect to the voluntary prepayments.

Previous wording

As a result of the foregoing, the Company recorded net income for the three months ended September 30, 2024, of $49.5 million compared to net income of $46.1 million for the three months ended September 30, 2023.

Current wording

As a result of the foregoing, the Company recorded net income for the three months ended March 31, 2025 of $42.3 million compared to net income of $29.7 million for the three months ended March 31, 2024.

Previous wording

As of September 30, 2024 and December 31, 2023, we had cash and cash equivalents of approximately $122.1 million and $129.5 million, respectively. Additionally, we currently have approximately $175.0 million available under different lines of credit.

Current wording

As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents of approximately $157.3 million and $134.9 million, respectively. Additionally, we currently have approximately $175.0 million available under several lines of credit.

Previous wording

We anticipate that the Company will continue to generate positive cashflow from operating activities through the remainder of the year, which we believe, in addition to our current liquidity position, provides ample flexibility to service our obligations through the next twelve months.

Current wording

We anticipate that the Company will continue to generate positive cashflow from operating activities throughout the remainder of the year, which we believe, in addition to our current liquidity position, provides ample flexibility to service our obligations through the next twelve months.

Previous wording

We transform glass and aluminum into high specification architectural glass and custom-made aluminum profiles which require significant investments in state-of-the-art technology. During the nine months ended September 30, 2024 and 2023, we made investments primarily in building and construction and machinery and equipment in the amounts of $59.4 million and $73.8 million, respectively. These investments across our vertically-integrated operations include further automating our glass and window assembly production lines, adding glass production lines, expanding our aluminum facilities, putting new vinyl windows lines to penetrate this new product segment and purchasing land to grow beyond current installed capacity. The Company estimates that current manufacturing operating capacity has reached approximately $1.2 billion which does not account for incremental installation revenue capacity. Additionally, the Company expects the resulting increase in output to improve efficiency throughout its operations while reducing material waste and overall lead times.

Current wording

We transform glass and aluminum into high specification architectural glass and custom-made aluminum profiles which require significant investments in state-of-the-art technology. During the three months ended March 31, 2025, and 2024, we made investments primarily in building and construction and machinery and equipment in the amounts of $30.4 million and $9.9 million, respectively. Additionally, we acquired $11.1 million and $1.3 million of property plant and equipment under credit during the three months ended March 31, 2025, and 2024, respectively. These investments across our vertically-integrated operations include further automating our glass and window assembly production lines, adding glass production lines, expanding our aluminum facilities, putting new vinyl windows lines to penetrate this new product segment and purchasing land to grow beyond current installed capacity. The Company estimates that current manufacturing operating capacity has reached approximately $1.2 billion which does not account for incremental installation revenue capacity. Additionally, the Company expects the resulting increase in output to improve efficiency throughout its operations while reducing material waste and overall lead times.

Previous wording

During the nine months ended September 30, 2024, and 2023, operating activities generated approximately $109.4 million and $94.5 million, respectively. The main sources of operating cash during the nine months ended September 30, 2024, were driven by contract assets and liabilities, and trade accounts payable. Contract assets and liabilities generated $15.9 million during the nine months ended September 30, 2024, mostly due to an increase in billings in excess of costs, as main projects are being executed, and large projects from our backlog are starting operations; compared to $13.1 million generated during the nine months ended September 30, 2023, as we executed on our growing backlog. In addition, trade accounts payable generated $10.1 million during the nine months ended September 30, 2024 mainly as a result of our growing operation, while our days payable outstanding remain moderately stable and decreasing year over year, compared with $8.4 million generated during the nine months ended September 30, 2023. The largest use of cash in operating activities was trade accounts payable, which used $38.8 million in the nine months ended September 30, 2024, compared with a use of $10.4 million during the prior year period, driven by a pick up in pace of large commercial installation jobs during the third quarter of 2024, which entail longer cash cycles. Additionally, taxes payable used $22.2 million during the nine months ended September 30, 2024, resulted from taxes being paid during the period, as the Colombian subsidiaries fully paid their 2023 income tax during the second quarter of 2024.

Current wording

During the three months ended March 31, 2025, and 2024, operating activities generated approximately $46.9 million and $33.4 million, respectively. The main sources of operating cash during the three months ended March 31, 2025, were driven by contract assets and liabilities, and taxes payable. Contract assets and liabilities generated $23.1 million during the three months ended March 31, 2025, mostly due to an increase in billings in excess of costs, as main projects are being executed, and large projects from our backlog are starting operations; compared to $8.0 million used during the three months ended March 31, 2024, as we executed on our growing backlog. In addition, taxes payable generated $15.7 million during the three months ended March 31, 2025, related to higher income tax provision as a result of recent record-breaking quarters, compared with $7.1 million during the three months ended March 31, 2024. The largest use of cash in operating activities was trade accounts receivables, which used $19.0 million in the three months ended March 31, 2025, compared with a generation of $3.8 million during the prior year period, driven by a pick-up in pace of large commercial installation jobs during the first quarter of 2025, which entail longer cash cycles. Additionally, other assets used $14.9 million during the three months ended March 31, 2025, compared with $9.2 million used during the three months ended March 31, 2024, comprised primarily of prepaid value added taxes of Colombian operations.

Previous wording

We used $51.5 million and $62.5 million in investing activities during the nine months ended September 30, 2024, and 2023, respectively. The main use of cash in investing activities during the nine months ended September 30, 2024 was related to scheduled payments on previous investments to increase capacity and efficiency as well as new investments in land and equipment. During the nine months ended September 30, 2024, we paid $53.9 million to acquire property plant and equipment, which in combination with $5.5 million acquired under credit or debt, amount to total capital expenditures of $59.4 million. During the nine months ended September 30, 2023, we used $62.2 million for the acquisition of property and equipment. Including assets acquired with debt or supplier credit, total capital expenditures during the period were $73.8 million.

Current wording

We used $18.2 million and $10.2 million in investing activities during the three months ended March 31, 2025, and 2024, respectively. The main use of cash in investing activities during the three months ended March 31, 2025, was related to scheduled payments on previous investments to increase capacity and efficiency as well as new investments in land and equipment. During the three months ended March 31, 2025, we paid $30.4 million to acquire property plant and equipment. During the three months ended March 31, 2024, we used $9.9 million for the acquisition of property and equipment.

Previous wording

Financing activities used $63.4 million and $20.9 million during the nine months ended September 30, 2024 and 2023, respectively. On April 10, 2024, we paid $2,500 to Incantesimo SAS, related to the acquisition of the remaining 30% equity interest of ES Metals. We paid $14.6 million and $12.2 million of dividends to holders of our ordinary shares during the nine months ended September 30, 2024 and 2023, respectively. Additionally, during the nine months ended September 30, 2024, we used $49.0 million to repay debt from our Senior Secured Line of Credit and other smaller facilities.

Current wording

Financing activities used $7.4 million and $16.7 million during the three months ended March 31, 2025, and 2024, respectively. We paid $7.0 million and $4.2 million of dividends to holders of our ordinary shares during the three months ended March 31, 2025, and 2024, respectively.