8-K
Tecnoglass Inc. (TGLS)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2021
TECNOGLASS
INC.
(Exact Name of Registrant as Specified in Charter)
| Cayman<br> Islands | 001-35436 | 98-1271120 |
|---|---|---|
| (State<br> or Other Jurisdiction | (Commission | (IRS<br> Employer |
| of<br> Incorporation) | File<br> Number) | Identification<br> No.) |
Avenida Circunvalar a 100 mts de la Via 40, Barrio Las Flores, Barranquilla, Colombia
(Address of Principal Executive Offices) (Zip Code)
(57)(5) 3734000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| Ordinary<br> Shares | TGLS | The<br> NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item2.02. Results of Operations and Financial Condition.
On August 6, 2021, Tecnoglass Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2021. The press release is included as Exhibit 99.1 hereto.
The information furnished under this Item 2.02, including the exhibit related thereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.
Item9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br><br> <br>No. | Description |
|---|---|
| 99.1 | Press release dated August 6, 2021 |
| 2 |
| --- |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 6, 2021
| TECNOGLASS<br> INC. | |
|---|---|
| By: | /s/ Jose M. Daes |
| Name: | Jose<br> M. Daes |
| Title: | Chief<br> Executive Officer |
| 3 |
| --- |
Exhibit99.1
TecnoglassReports Record Second Quarter 2021 Results
-Single-Family Residential Revenues Increased 159% Year-Over-Year, Representing 37% of U.S. Revenues -
-Commercial Revenues Expanded 22% Year-Over-Year Driven by Continued End Market Recovery -
-Total Revenues Up 49% Year-Over-Year to a Record $121.7 Million -
-Record Second Quarter Gross Margin of 40.0%, Up 120 Basis Points Year-Over-Year -
-Net Profit of $19.2 Million; Adjusted Net Income^1^ of $19.7 Million, or $0.41 Per Diluted Share
-Adjusted EBITDA^1^ Up 52.7% Year-Over-Year to a Record $35.6 Million, or 29.3% of Total Revenues -
-Record Cash Flow From Operations of $31.8 Million -
-Backlog Expands to a Record $559 Million, Despite Single Family Residential Activity Largely Underrepresented in Backlog -
-Increases Full Year 2021 Growth Outlook to Adjusted EBITDA^1^ of $125 Million to $135 Million on Total Revenues of $450Million to $465 Million -
BARRANQUILLA,Colombia – August 6, 2021 – Tecnoglass, Inc. (NASDAQ: 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 second quarter ended June 30, 2021.
José Manuel Daes, Chief Executive Officer of Tecnoglass, commented, “I am thrilled to announce our most profitable quarter on record, building on our team’s outstanding performance which again drove record results in nearly all financial metrics. During the quarter, we were able to drive substantial operating leverage while expanding our mix of single-family residential sales in the U.S., resulting in another quarter of record revenues, margin expansion, and our 5^th^ straight quarter of significant cash flow generation. Our strategically located, vertically integrated and low cost operations have provided us with sustainable competitive advantages that truly differentiate Tecnoglass in the tight supply environment that our industry is experiencing. We are winning new business and strengthening our existing customer relationships because we are able to supply superior quality products with short lead times at an attractive value, which is undoubtedly advancing our reputation as a global leader in both architectural glass innovation and service. Moving forward, we will continue to execute our proven strategy to capture elevated demand in the U.S., while approaching capital allocation with a returns oriented mindset. Our strong balance sheet, very low leverage profile and ample capital resources squarely position us to do so as we plan to further invest in operational enhancements. The future remains extremely bright for Tecnoglass and we are firmly situated to deliver another year of record results in 2021.”
Christian Daes, Chief Operating Officer of Tecnoglass, added, “Our ability to timely deliver best-in-class products led to outsized revenue growth and market share gains in the U.S. during the second quarter. Revenues in single-family residential increased by almost 160% year-over-year and nearly doubled compared to the second quarter of 2019. This accomplishment is a testament to the market leading platform we have created and we could not be more pleased with our progress since we entered the single-family residential business four years ago. This attractive category now represents 34% of our total revenues compared to 19% in the prior year period. Additionally, we ended the second quarter with a record backlog across our growing footprint as large scale commercial projects continue to resume construction activity. Looking to the remainder of 2021, we are pleased with our positioning and continue to expect strength in residential demand to drive the majority of our growth.”
SecondQuarter 2021 Results
Total revenues for the second quarter of 2021 increased 48.5% to $121.7 million, compared to $81.9 million in the prior year quarter. U.S. revenues of $109.9 million, which represented 90% of total revenues, grew 38.8% compared to $79.1 million in the prior year quarter, driven by strong growth in single family residential activity, a continued recovery in commercial construction activity, and market share gains. Colombia revenue, a majority of which is represented by long-term contracts priced in Colombian Pesos but indexed to the U.S. Dollar, grew to $8.2 million, compared to $1.8 million in the prior year quarter. Changes in foreign currency exchange rates had a negligible impact on Colombia and total revenues in the quarter.
Gross profit for the second quarter of 2021 grew 52.9% to $48.6 million, representing a 40.0% gross margin, compared to gross profit of $31.8 million, representing a 38.8% gross margin in the prior year quarter. The 120 basis point improvement in gross margin mainly reflected greater operating efficiencies and a higher mix of revenue from manufacturing versus installation activity as Tecnoglass increased its mix of single family residential products. Selling, general and administrative expense (“SG&A”) was $20.2 million compared to $16.6 million in the prior year quarter, primarily attributable to higher variable expenses related to ground and marine transportation. As a percent of total revenues, SG&A improved to 16.6% compared to 20.2% in the prior year quarter, primarily due to higher sales and better operating leverage on personnel, professional fees and other fixed expenses.
Net income was $19.2 million, or $0.40 per diluted share, in the second quarter of 2021 compared to net income of $16.2 million, or $0.35 per diluted share, in the prior year quarter, including an after-tax non-cash foreign exchange transaction gain of $0.2 million in the second quarter of 2021 and a $13.3 million gain in the second quarter of 2020. 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 income^1^ was $19.7 million, or $0.41 per diluted share, in the second quarter of 2021 compared to adjusted net income of $9.4 million, or $0.20 per diluted share, in the prior year quarter. Adjusted net income^1^, 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 EBITDA^1^, as reconciled in the table below, increased 52.7% to $35.6 million, or 29.3% of total revenues in the second quarter of 2021, compared to $23.3 million, or 28.4% of total revenues, in the prior year quarter. The improvement was driven by higher sales, a stronger gross margin and operating leverage on SG&A. Adjusted EBITDA^1^ in the second quarter 2021 included $0.5 million in contribution from the Company’s joint venture with Saint-Gobain, compared to $0.9 million in the prior year quarter.
Dividend
The Company declared a quarterly cash dividend of $0.0275 per share for the second quarter of 2021, which was paid on July 30, 2021 to shareholders of record as of the close of business on June 30, 2021.
BalanceSheet & Liquidity
The Company ended the second quarter of 2021 with total liquidity of approximately $167 million, including cash and cash equivalents of $100.3 million and availability under its committed revolving credit facilities of $66.9 million. Cash provided by operating activities of $31.8 million improved by $7.6 million compared to the prior year quarter, attributable to higher profitability as well as more efficient inventory and working capital management. Given the Company’s continued growth in adjusted EBITDA^1^ and strong cash generation, debt leverage continues to trend lower and now stands at 1.1 times LTM net debt to adjusted EBITDA^1^, compared to 2.2 times in the prior year quarter.
FullYear 2021 Outlook
Santiago Giraldo, Chief Financial Officer of Tecnoglass, stated, “We are increasing our full year 2021 outlook for total revenues and adjusted EBITDA^1^ growth to reflect our continued outperformance in the first half of 2021, including strong demand into July and August and further share gains. We now expect full year 2021 total revenues to grow to a range of $450 million to $465 million. We now anticipate full year adjusted EBITDA^1^ to increase to a range of $125 million to $135 million, implying year-over-year growth of approximately 33% at the midpoint. We continue to believe our ability to efficiently manage costs while providing exceptional delivery lead times should collectively allow us to achieve above market growth and record results for the full year 2021.”
Webcast and Conference Call
Management will host a webcast and conference call on Friday, August 6, 2021 at 9:00 a.m. eastern time (8:00 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. Due to potential extended wait times to access the conference call via dial-in, the Company encourages use of the webcast. For those unable to access the webcast, the conference call will be accessible by dialing 1-877-705-6003 (domestic) or 1-201-493-6725 (international). Upon dialing in, please request to join the Tecnoglass Second Quarter 2021 Earnings Conference Call.
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 (844) 512-2921 (Domestic) or (412) 317-6671 (International) and entering pass code: 13721832.
AboutTecnoglass
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 2.7 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.
ForwardLooking 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.
^1^Adjusted net income (loss) and Adjusted EBITDA in both periods are reconciled in the table below.
InvestorRelations:
Santiago Giraldo
CFO
305-503-9062
investorrelations@tecnoglass.com
TecnoglassInc. and Subsidiaries
ConsolidatedBalance Sheets
(Inthousands, except share and per share data)
(Unaudited)
| December<br> 31, | |||||
|---|---|---|---|---|---|
| 2020 | |||||
| ASSETS | |||||
| Current<br> assets: | |||||
| Cash<br> and cash equivalents | 100,295 | $ | 66,899 | ||
| Investments | 2,078 | 2,387 | |||
| Trade<br> accounts receivable, net | 91,233 | 88,368 | |||
| Due<br> from related parties | 8,543 | 8,574 | |||
| Inventories | 74,717 | 80,742 | |||
| Contract<br> assets – current portion | 24,068 | 26,288 | |||
| Other<br> current assets | 16,946 | 13,545 | |||
| Total<br> current assets | 317,880 | $ | 286,803 | ||
| Long-term<br> assets: | |||||
| Property,<br> plant and equipment, net | 149,566 | $ | 152,266 | ||
| Deferred<br> income taxes | 1,252 | 268 | |||
| Contract<br> assets – non-current | 10,785 | 10,228 | |||
| Due<br> from related parties - long term | - | 484 | |||
| Long-term<br> trade accounts receivable | 4,361 | 2,985 | |||
| Intangible<br> assets | 4,320 | 5,112 | |||
| Goodwill | 23,561 | 23,561 | |||
| Long-term<br> investments | 49,414 | 47,535 | |||
| Other<br> long-term assets | 4,537 | 2,783 | |||
| Total<br> long-term assets | 247,796 | 245,222 | |||
| Total<br> assets | 565,676 | $ | 532,025 | ||
| LIABILITIES<br> AND SHAREHOLDERS’ EQUITY | |||||
| Current<br> liabilities: | |||||
| Short-term<br> debt and current portion of long-term debt | 13,376 | $ | 1,764 | ||
| Trade<br> accounts payable and accrued expenses | 56,303 | 42,178 | |||
| Accrued<br> interest expense | 4 | 7,175 | |||
| Due<br> to related parties | 4,502 | 4,750 | |||
| Dividends<br> payable | 1,353 | 1,352 | |||
| Contract<br> liability – current portion | 36,670 | 24,694 | |||
| Other<br> current liabilities | 11,806 | 9,630 | |||
| Total<br> current liabilities | 124,014 | $ | 91,543 | ||
| Long-term<br> liabilities: | |||||
| Deferred<br> income taxes | 278 | $ | 3,170 | ||
| Long-term<br> liabilities from related parties | 656 | 645 | |||
| Contract<br> liability – non-current | 884 | 977 | |||
| Long-term<br> debt | 218,949 | 222,722 | |||
| Total<br> long-term liabilities | 220,767 | 227,514 | |||
| Total<br> liabilities | 344,781 | $ | 319,057 | ||
| SHAREHOLDERS’<br> EQUITY | |||||
| Preferred<br> shares, 0.0001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | - | $ | - | ||
| Ordinary<br> shares, 0.0001 par value, 100,000,000 shares authorized, 47,674,773 and 47,674,773 shares issued and outstanding at June 30, 2021<br> and December 31, 2020, respectively | 5 | 5 | |||
| Legal<br> Reserves | 2,273 | 2,273 | |||
| Additional<br> paid-in capital | 219,290 | 219,290 | |||
| Retained<br> earnings | 59,104 | 34,326 | |||
| Accumulated<br> other comprehensive (loss) | (60,490 | ) | (43,512 | ) | |
| Shareholders’<br> equity attributable to controlling interest | 220,182 | 212,382 | |||
| Shareholders’<br> equity attributable to non-controlling interest | 713 | 586 | |||
| Total<br> shareholders’ equity | 220,895 | 212,968 | |||
| Total<br> liabilities and shareholders’ equity | 565,676 | $ | 532,025 |
All values are in US Dollars.
TecnoglassInc. and Subsidiaries
ConsolidatedStatements of Operations and Comprehensive Income
(Inthousands, except share and per share data)
(Unaudited)
| Three<br> months ended | Six<br> months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June<br> 30, | June<br> 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Operating<br> revenues: | ||||||||||||
| External<br> customers | $ | 120,136 | $ | 81,590 | $ | 230,395 | $ | 167,696 | ||||
| Related<br> parties | 1,578 | 352 | 2,199 | 1,544 | ||||||||
| Total<br> operating revenues | 121,714 | 81,942 | 232,594 | 169,240 | ||||||||
| Cost<br> of sales | -73,087 | -50,146 | -138,824 | -107,017 | ||||||||
| Gross<br> profit | 48,627 | 31,796 | 93,770 | 62,223 | ||||||||
| Operating<br> expenses: | ||||||||||||
| Selling<br> expense | (12,030 | ) | (8,961 | ) | (23,111 | ) | (18,629 | ) | ||||
| General<br> and administrative expense | (8,200 | ) | (7,610 | ) | (16,869 | ) | (15,220 | ) | ||||
| Total<br> operating expenses | (20,230 | ) | (16,571 | ) | (39,980 | ) | (33,849 | ) | ||||
| Operating<br> income | 28,397 | 15,225 | 53,790 | 28,374 | ||||||||
| Non-operating<br> income (expenses), net | (240 | ) | 7 | (81 | ) | (94 | ) | |||||
| Equity<br> method income | 788 | (166 | ) | 1,879 | 94 | |||||||
| Foreign<br> currency transactions gains (loss) | 190 | 13,309 | 145 | (19,157 | ) | |||||||
| Loss<br> on extinguishment of debt | 169 | - | (10,978 | ) | - | |||||||
| Interest<br> expense and deferred cost of financing | (2,442 | ) | (5,446 | ) | (5,964 | ) | (11,089 | ) | ||||
| Income<br> (loss) before taxes | 26,862 | 22,929 | 38,791 | (1,872 | ) | |||||||
| Income<br> tax (provision) benefit | (7,587 | ) | (6,875 | ) | (11,264 | ) | (742 | ) | ||||
| Net<br> income (loss) | $ | 19,275 | $ | 16,054 | $ | 27,527 | $ | (2,614 | ) | |||
| Income<br> attributable to non-controlling interest | (41 | ) | 143 | (127 | ) | 45 | ||||||
| Income<br> (Loss) attributable to parent | $ | 19,234 | $ | 16,197 | $ | 27,400 | $ | (2,569 | ) | |||
| Comprehensive<br> income: | ||||||||||||
| Net<br> income (loss) | $ | 19,275 | $ | 16,054 | $ | 27,527 | $ | (2,614 | ) | |||
| Foreign<br> currency translation adjustments | (1,184 | ) | 4,367 | (16,819 | ) | (14,921 | ) | |||||
| Change<br> in fair value derivative contracts | - | 2,618 | (159 | ) | (1,447 | ) | ||||||
| Total<br> comprehensive income | $ | 18,090 | $ | 23,039 | $ | 10,548 | $ | (18,982 | ) | |||
| Comprehensive<br> income attributable to non-controlling interest | (41 | ) | 143 | (127 | ) | 45 | ||||||
| Total<br> comprehensive income (loss) attributable to parent | $ | 18,049 | $ | 23,182 | $ | 10,421 | $ | (18,937 | ) | |||
| Basic<br> income (loss) per share | $ | 0.40 | $ | 0.35 | $ | 0.58 | $ | (0.06 | ) | |||
| Diluted<br> income (loss) per share | $ | 0.40 | $ | 0.35 | $ | 0.58 | $ | (0.06 | ) | |||
| Basic<br> weighted average common shares outstanding | 47,674,773 | 46,117,631 | 47,674,773 | 46,117,631 | ||||||||
| Diluted<br> weighted average common shares outstanding | 47,674,773 | 46,117,631 | 47,674,773 | 46,117,631 |
TecnoglassInc. and Subsidiaries
ConsolidatedStatements of Cash Flows
(Inthousands)
(Unaudited)
| Six<br> months ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | |||||
| CASH<br> FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net<br> (loss) income | $ | 27,527 | $ | (2,614 | ) | |
| Adjustments<br> to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
| Allowance<br> for bad debts | 748 | 691 | ||||
| Depreciation<br> and amortization | 10,507 | 10,206 | ||||
| Deferred<br> income taxes | 424 | (6,478 | ) | |||
| Equity<br> method income | (1,879 | ) | (94 | ) | ||
| Deferred<br> cost of financing | 623 | 861 | ||||
| Other<br> non-cash adjustments | (19 | ) | 42 | |||
| Loss<br> on Debt Extinguishment | 2,333 | - | ||||
| Unrealized<br> currency translation losses | 2,555 | 23,585 | ||||
| Changes<br> in operating assets and liabilities: | ||||||
| Trade<br> accounts receivables | (6,743 | ) | 13,785 | |||
| Inventories | (1,385 | ) | (8,252 | ) | ||
| Prepaid<br> expenses | (2,024 | ) | (1,017 | ) | ||
| Other<br> assets | (7,169 | ) | 1,363 | |||
| Trade<br> accounts payable and accrued expenses | 24,556 | (10,358 | ) | |||
| Accrued<br> interest expense | (7,171 | ) | (84 | ) | ||
| Taxes<br> payable | 3,396 | (5,911 | ) | |||
| Labor<br> liabilities | (148 | ) | (982 | ) | ||
| Contract<br> assets and liabilities | 14,677 | 11,246 | ||||
| Related<br> parties | (23 | ) | (1,200 | ) | ||
| CASH<br> PROVIDED BY OPERATING ACTIVITIES | $ | 60,785 | $ | 24,789 | ||
| CASH<br> FLOWS FROM INVESTING ACTIVITIES | ||||||
| Proceeds<br> from sale of investments | 166 | 364 | ||||
| Purchase<br> of investments | (49 | ) | (167 | ) | ||
| Acquisition<br> of property and equipment | (18,323 | ) | (7,395 | ) | ||
| CASH<br> USED IN INVESTING ACTIVITIES | $ | (18,206 | ) | $ | (7,198 | ) |
| CASH<br> FLOWS FROM FINANCING ACTIVITIES | ||||||
| Cash<br> dividend | (2,621 | ) | (1,265 | ) | ||
| Loss<br> on Debt Extinguishment - Call Premium | (8,610 | ) | - | |||
| Deferred<br> financing transaction costs | (88 | ) | - | |||
| Proceeds<br> from debt | 221,146 | 17,796 | ||||
| Repayments<br> of debt | (216,676 | ) | (14,698 | ) | ||
| CASH<br> (USED IN) PROVIDED BY FINANCING ACTIVITIES | $ | (6,849 | ) | $ | 1,833 | |
| Effect<br> of exchange rate changes on cash and cash equivalents | $ | (2,334 | ) | $ | (3,862 | ) |
| NET<br> (DECREASE) INCREASE IN CASH | 33,396 | 15,562 | ||||
| CASH<br> - Beginning of period | 66,899 | 47,862 | ||||
| CASH<br> - End of period | $ | 100,295 | $ | 63,424 | ||
| SUPPLEMENTAL<br> DISCLOSURES OF CASH FLOW INFORMATION | ||||||
| Cash<br> paid during the period for: | ||||||
| Interest | $ | 12,286 | $ | 9,513 | ||
| Income<br> Tax | $ | 9,471 | $ | 7,014 | ||
| NON-CASH<br> INVESTING AND FINANCING ACTIVITES: | ||||||
| Assets<br> acquired under credit or debt | $ | 937 | $ | 907 |
Revenuesby Region
(Amountsin thousands)
(Unaudited)
| Three<br> months ended | Six<br> months ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June<br> 30, | June<br> 30, | |||||||||||||
| 2021 | 2020 | %<br> Change | 2021 | 2020 | %<br> Change | |||||||||
| Revenues<br> by Region | ||||||||||||||
| United<br> States | 109,879 | 79,148 | 38.8 | % | 210,686 | 157,946 | 33.4 | % | ||||||
| Colombia | 8,166 | 1,820 | 348.7 | % | 15,831 | 8,292 | 90.9 | % | ||||||
| Other<br> Countries | 3,669 | 974 | 276.6 | % | 6,077 | 3,002 | 102.4 | % | ||||||
| Total<br> Revenues by Region | 121,714 | 81,942 | 48.5 | % | 232,594 | 169,240 | 37.4 | % |
Reconciliationof Non-GAAP Performance Measures to GAAP Performance Measures
(Inthousands)
(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<br> months ended | |||||||
|---|---|---|---|---|---|---|---|
| June<br> 30, | |||||||
| 2021 | 2020 | %<br> Change | |||||
| Total<br> Revenues with Foreign Currency Held Neutral | $ | 121,385 | $ | 81,942 | 48.1 | % | |
| Impact<br> of changes in foreign currency | 329 | - | 0.4 | % | |||
| Total<br> Revenues, as Reported | $ | 121,714 | $ | 81,942 | 48.5 | % |
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.
Reconciliationof Adjusted EBITDA and Adjusted net (loss) income to net (loss) income
(Inthousands, 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<br> months ended | Six<br> months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun<br> 30, | Jun<br> 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net<br> (loss) income | 19,275 | 16,054 | 27,527 | (2,614 | ) | |||||||
| Less:<br> Income (loss) attributable to non-controlling interest | (41 | ) | 143 | (127 | ) | 45 | ||||||
| (Loss)<br> Income attributable to parent | 19,234 | 16,197 | 27,400 | (2,569 | ) | |||||||
| Foreign<br> currency transactions losses (gains) | (190 | ) | (13,309 | ) | (145 | ) | 19,157 | |||||
| Non<br> Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 975 | 1,418 | 2,256 | 2,753 | ||||||||
| Extinguishment<br> of debt - Call Option Premium | - | - | 8,610 | - | ||||||||
| Extinguishment<br> of debt - Deferred Costs | (169 | ) | - | 2,368 | - | |||||||
| Joint<br> Venture VA (Saint Gobain) adjustments | 68 | 567 | 147 | 939 | ||||||||
| Change<br> in FV of Hedging Derivatives | 3 | 1,358 | (182 | ) | 1,358 | |||||||
| Tax<br> impact of adjustments at statutory rate | (206 | ) | 3,189 | (3,916 | ) | (7,746 | ) | |||||
| Adjusted<br> net (loss) income | 19,715 | 9,420 | 36,538 | 13,892 | ||||||||
| Basic<br> income (loss) per share | 0.40 | 0.35 | 0.58 | (0.06 | ) | |||||||
| Diluted<br> income (loss) per share | 0.40 | 0.35 | 0.58 | (0.06 | ) | |||||||
| Diluted<br> Adjusted net income (loss) per share | 0.41 | 0.20 | 0.77 | 0.30 | ||||||||
| Diluted<br> Weighted Average Common Shares Outstanding in thousands | 47,675 | 46,118 | 47,675 | 46,118 | ||||||||
| Basic<br> weighted average common shares outstanding in thousands | 47,675 | 46,118 | 47,675 | 46,118 | ||||||||
| Diluted<br> weighted average common shares outstanding in thousands | 47,675 | 46,118 | 47,675 | 46,118 | ||||||||
| Three<br> months ended | Six<br> months ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Jun<br> 30, | Jun<br> 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net<br> (loss) income | 19,275 | 16,054 | 27,527 | (2,614 | ) | |||||||
| Less:<br> Income (loss) attributable to non-controlling interest | (41 | ) | 143 | (127 | ) | 45 | ||||||
| (Loss)<br> Income attributable to parent | 19,234 | 16,197 | 27,400 | (2,569 | ) | |||||||
| Interest<br> expense and deferred cost of financing | 2,442 | 5,446 | 5,964 | 11,089 | ||||||||
| Income<br> tax (benefit) provision | 7,587 | 6,875 | 11,264 | 742 | ||||||||
| Depreciation<br> & amortization | 5,218 | 4,965 | 10,507 | 10,206 | ||||||||
| Foreign<br> currency transactions losses (gains) | (190 | ) | (13,309 | ) | (145 | ) | 19,157 | |||||
| Non<br> Recurring expenses (extinguishment of debt, bond issuance costs, provision for bad debt, acquisition related costs and other) | 975 | 910 | 2,001 | 1,805 | ||||||||
| Extinguishment<br> of debt - Call Option Premium | - | - | 8,610 | - | ||||||||
| Extinguishment<br> of debt - Deferred Costs | (169 | ) | - | 2,368 | - | |||||||
| Joint<br> Venture VA (Saint Gobain) EBITDA adjustments | 503 | 869 | 1,341 | 1,868 | ||||||||
| Change<br> in FV of Hedging Derivatives | 3 | 1,358 | (182 | ) | 1,358 | |||||||
| Adjusted<br> EBITDA | 35,603 | 23,311 | 69,128 | 43,656 |