TGLS - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to Tecnoglass Inc. second quarter 2019 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Instructions]. [Operator conference this being is note recorded. Please

now Rodny Nacier, would turn you the host, your to over Investor begin. conference may I Relations. Nacier, Mr.

Rodny Nacier

XXXX the of for call. be accompany obtained you joining Investors for may second Thank section the of us this call A website. slide the quarter copy on presentation Tecnoglass to Tecnoglass' conference

Chief speakers Operating Officer, Chief for Manuel Jose Daes, today's Our Giraldo. Daes call Financial and Officer, Santiago are Chief Executive Officer, Chris

on Securities subject this remind are including to would current Act performance, discussed and acquisitions. or financial historical the that I future and of future in except everyone circumstances. uncertainty information Tecnoglass' future call expectations beliefs matters These forward-looking meaning to like for changes of Litigation XXXX, within and are statements statements regarding on are growth the statements Private Reform based

light nature factors vary by and/or in may regulatory a the in the business. contingencies risks herein during operations results economic, time-to-time with such are filings Tecnoglass' Exchange due statements indicated Securities implied Actual those Tecnoglass' presented These and and changes in and uncertainties and to is in The material call risks. expressed the information risks, affecting or the Commission. discussed competitive, other business, from from of of uncertainties

assumptions expressly of a investors keep events, results. result and is obligation future any otherwise. information, indicative period Tecnoglass future that in as to in not Tecnoglass' mind may financial no to Further, forward-looking of be should alter statements disclaims its particular results changes in update any under whether or new or obligation

the on turn call to over I beginning four. Jose slide number will Manuel, now

Jose Manuel Daes

the We of and participating everyone for first levels profit, with adjusted on Rodny record backlog. today's closed call. you and gross of you half EBITDA thank XXXX Thank out

The to of second to overall ago. was revenues U.S. ninth total million, gains. XX% residential market This rapid driven quarter revenues. and success quarter by our largely increased represent business, mix XX% the This straight our expansion XX% revenues. larger of in to year share quarter marking of record continues a our to continued $XXX.X Second increasing compares

U.S. from Furthermore, million the increased of adjusted growth we and strength to working On our resulted of industry operations continued vertically capital this This cash and EBITDA we adjusted second generated sustainable momentum, from positive drive to $XX.X management. operations evident. quarter, enhanced and The a by EBITDA increased flow in This our profitability was penetration million. product XX% successful low-cost, other reflecting leading efficient mix. to margins. integrated $XX provide platform continues market

XXXX, for Saint-Gobain. In we company. announced float-glass addition, very in May joint completed our positive a was step with our previously This venture

We years. continue our venture our to to to adjusted expect start. secure joint encouraging This EBITDA our synergies in the It an supply results. over to significant The strategy, our generate contributed vertical month and during the quarter. float-glass the is enhance coming of about operation already has added JV integration million two $X

pleased to well-timed more to backlog modern also July. of incremental aluminum facilities serve in the will demand, are complete throughout sales. and Our efficiently expanding and demand our the In joint to we us extrusion response is venture markets. facility expansion strong aluminum help we our were state-of-the-art rapidly This

even advance now position are in U.S. competitive We better the situated to our

and automate be to end. completed high aluminum several to track year remain operations investments by key glass return additional Our at on facilities of our

against as we increase these generate execute attractive efficiency capacity expect our us our of projects. and We upgrades the returns of backlog position better operations to to

with Overall, strong a very we positive which our backlog, provide visibility. pleased growing momentum are with our with us multiyear combined

continue business construction and U.S. activity. strength and commercial in gaining confident the of residential share are our expect We to in

and revenue supports energized our of outlook year-to-year adjusted EBITDA. our by which progress, great full are We for increased year

turn I will provide over the backlog. on Chris to call details now additional our to

Chris Daes

you Jose Manuel. Thank

backlog slide with growing number positioned across We attractively an of a our U.S. backlog on the to quarter ended six. Moving markets.

$XXX Our our second year-over-year diversity million. broadening reinforced strategy, quarter This backlog our record excellence of to and a completed is customer benefiting product elevates level business of the reputation an impressive strength grew and project X% relationships. result. a Each for as our

XX% second increasing XX U.S. backlog. The represent of than which portion the compares to X.X XX% This comprising backlog quarter in last to of second The very revenue, quarter level our our represents an XXXX. continues encouraging. times more market months business, is approximately of our

We continue the in to experience U.S. residential conditions construction commercial and favorable

project Washington. This several with our recently the the markets efforts York, mix added our to ongoing in state portfolio sales product geographic of solid experienced and New Our good presence throughout reflects U.S. fundamentals wins to economic in our and team very Texas diversify

are alliance awarded were recently the with exciting to reflected our backlog. us allowing the is We Additionally, several growth with accelerate in which U.S. Schüco further Schüco product in in markets. lines Northeast, projects

and the support capitalize market continue structural footprint our penetration to bidding strategic residential to strong advantages ability Our into activity. our on competitive

at As of record reflecting industry-leading a invoicing our revenues result, margins. levels are

outperformance key on productivity. projects, high our and underpinned sales Additionally, partnerships return our metrics throughout in talented operating the and improved teams innovation continued focus by strategic our

for surpass our outlook Our revised support and upwardly the in residential continues the market expectations performance U.S. in XXXX. our growth to

backlog. single-family underrepresented in a cycles projects reminder, of are our typically and As many shorter

XXXX. we pleased in our results to-date are with conclusion, In very

target U.S. continue We new to and footprint. leverage relationships customer widening our

We are a our our to quality the business disciplined expand activity enhancing manner. projects in of

our to high-quality additional business, pipeline and several providing should continue customers. our glass by products strong architectural of high This catalysts to the our our look to from growing service our return investment. partnerships discussed and forward business Given we excellent support ability

to I financial the discuss markets. our and will call results to turn now over Santiago

Santiago Giraldo

especially financial adjusted nearly quarter. Beginning all the net market, U.S. improved Christian. We continuing second our income. the residential rapidly penetrate while prior accomplished with eight. across than substantially In compared year where adjusted in we Thank including on margins sales slide you highlights more to our and doubled sales, EBITDA, to metrics the this results number quarter,

spent $XX.X opportunistic second million efficiency CapEx in on return the of high initiatives. and it quarter, investments gear most We towards

reflects $XX efforts of our and of cycle. revenues, shorter growth move in million million a Our last collection with cash net ratio down balance of quarter We and operating a residential a operational sheet mix improve times cash carry capital and strong of our flow forward. higher This the ended which $XX position X.X working a our typically year. leverage performance of to the quarter as X.X enhancements strength times, supports from we management initiatives

second ninth drivers up for were revenues, record revenue the on number straight of XX% at quarter. nine. quarter reported $XXX.X which million our the We Looking slide to

strength construction in the sales with price residential U.S. the some million. market the gains in and year-over-year second improvement. primarily healthy drove commercial $XX.X XX.X% U.S. quarter increasing and U.S. mix invoicing, share activity, stronger outperformance The reflected by Continued to

Solid U.S. momentum is more regions. than in LatAm softer demand offsetting our environment the

U.S. products shift product the with our as by as in the revenue impressive premier the group. revenue United company. average to the the during building percentage mix a Tecnoglass trailing as represents generated revenues. total building percentage business for actually peer of an to States of our the On U.S. Tecnoglass of products XX% This fact, peers. listed the in years, approximately compared an U.S.-based of XX-month Tecnoglass the past In second compares U.S. of U.S.-based building most significant quarter is the the States to of further XXXX, represented mix five a establishes accomplishment higher for This United XX% basis, and

quarter. of year $XX.X drivers Adjusted produced This quarter. in the second compared million record prior XX.X%. EBITDA Gross profit year quarter, of gross to number the XX.X% margin. EBITDA increased the at adjusted million slide XX.X% in to to a XX.X% Looking on from adjusted margin gross margin the prior a representing record $XX.X EBITDA XX. increased XX.X% an a of a This

improvement Our primarily margin products mix gross across higher operating a our reflected greater efficiencies of margin in and favorable footprint.

margin in million basis $X.X approximately prior XXX approximately the improved gross of cost nonrecurring year year-over-year. points quarter, Excluding

by leverage basis cost personnel professional of part as As fees. percent a the competitive points were expenses revenues, affecting still to costs. had operating of U.S.-based a our peers higher cost especially and and reflected on advantages, This on year-over-year our improve tight of pleased our have constraints and not quarter. impact We in our material raw to XX.X% some revenue labor increases material operating controls structural manufacturing strong second XXX

items, operating prior the have in would been quarter. XX.X% year a to compared Excluding revenues XX.X% expenses one-time total as percentage of

Looking at number our on slide market expansion into continued residential XX.

years two In As U.S. expansion XXXX, X% including a is we far XX% rapidly a other note, last commercial. business. initial quarter the the as of residential our second high-rise scaled single-family XX of months of This we residential business. refer all as representing U.S. revenues the from expectations, up U.S. entered revenues to has and U.S. as our medium that condos just have XXXX. This market in single-family and classify exceeded ago. We sales,

quarter year residential than Second sales quarter. prior from more doubled

opportunity a our allow our faster introductions, industry that the We represent along expanded share of rising in U.S., two-thirds average. approach mind, the with business market segment. more architectural commercial residential a customer glass market billion of this to overall grow ability In will a established in quality-first to still this efforts with execute see upside in product of residential our the have only continue to our than the fraction approximately end collective aluminum we residential share capture to the in segment in estimated share our continued New of U.S. gains the national led believe the and $XX With and segment us relationships and we significant in reputation with to business. proven an

other will investments is May, The slide elevating and customers, venture our float-glass with which to and suppliers, Moving time. reinforces global from joint an economics strategic improves on operational return JV our to were JV synergies secures participants. supply vertical number architects In purchasing industry while strategy. standpoint complete integration significant our and our over profile float-glass drive excited The with high Saint-Gobain, XX. we

sells net share In float-glass income and allow terms JV us the parties of rata in adjusted to pro profits our of which report EBITDA. financial Tecnoglass and to contribution, third

adjusted During May about the of second close of two the the the $X second from early of million quarter, the months approximately the end JV to transaction representing added activity to EBITDA, quarter.

Separately, JV of plant our nearby capacity. Barranquilla headquarters for production increase the aluminum we operation, state-of-the-art expanded production XXXX. July continue aluminum a is response end to brought XX% aluminum strong XXXX of construction customer to the to This in second the products. new by Beyond certain lines start our within in existing we in expected by our capacity online to demand expect

track Our of other our XXXX. be on by to at aluminum and completed investments remain facilities glass in the automation end

or hand out capacity the the automation $XX for debt of anticipated resources. and capital investments portion deployed XXXX, We with cash million remaining XX, of in to approximately the total XX% have expansion. existing we fund As approximately June intend capital of

Moving to number our XXXX outlook XX. slide on

range top we the continued year We of in to come year bottom million. the to XXXX revenues single-family on a project growth million better year-to-date, expect to confidence of continue products, from the and solid innovative geographic partially visibility are execution strong to our end strategy, to in line execution full residential. growth and majority by We expansion new grow anticipate revenue XXXX. types, outlook helped and $XXX raising for of $XXX full market Based U.S.

smallest growth As abnormally implied typically revenue is prior growth XXXX half that invoicing to of half year-over-year was higher seasonally in on the QX calls, is XXXX timing the high based quarter compared XXXX. to on our and anticipated in the explained first percentage year-over-year quarter. the back compared

the first easier So had half comps.

leverage increased and anticipated of from year outlook $XX to mix adjusted million. on raising This we assumes EBITDA sales in full sales and million revenues be are a of of our outlook operations. range our revenues, $XX operating higher to mix the of higher favorable manufacturing Based outlook

second our Additionally, results with the which Saint-Gobain attained cost expect our SG&A our leverage original incorporates contemplated outlook. of based and began venture, adjusted on in efforts. as incremental of from the XXXX contributing EBITDA revenues as lower sales we quarter unchanged outlook a joint control percentage Furthermore, to ongoing the share in of

growth of situated business. we achieve year are well closing, our another improvement in In and to strong

objectives high to ability in growth proven in you confidence support investments, of Our our our continued margins. partnerships U.S., the while for our thank integrated us operations, and revised return industry-leading Tecnoglass. vertically maintaining to new ability your low-cost meet all We execute give our

to questions. happy your be will We answer

please Operator, the line open questions. for

Operator

Instructions]. [Operator

Baird. Tim question. your Our first proceed from Wojs, comes with question Please

Tim Wojs

Hi the Good job morning. everybody. on results. Nice

Santiago Giraldo

Tim. Good morning Thanks.

Chris Daes

Thank you.

Jose Manuel Daes

Thank you.

Tim Wojs

could where guess months are that I we ago know you residential, we the the that So optimistic strengths the have So where business starting versus maybe through to of driver on us more on just expectations? year-to-date, just you seen year? relative that the were business you your a upside six talk today? entering that little because maybe maybe bit What's been drivers cautiously I to

Jose Manuel Daes

Hi in Jose new Daes are we Tim. market. here. the Well,

only years product for people love to acceptance. last it. We has have good residential they been really product three the a in the compared and use had the When our our competition,

a homeowners growing nothing, at of that have Look, great fast. that think XXX%. like keep don't quality that's are keep so. but obviously we you reputation have embraced in mean year. I maybe we We And the can grow are of When the and a XX% growing that doesn't going Then XX%, you really to pace, the hope we we but But why lot product, high-rises. a glass crazy. growing,

Tim Wojs

distribution? expanded current is really new? Is Or you more Are the that? what's And it your through is an seeing it really you signing distribution Okay. sellthrough distributors? are

Jose Manuel Daes

both. is It

are have growing themselves, are on we actual we and also are distribution that are We time. -- the expanding because we distributors

great We of and the I a buys I acceptance in. of then we the is product have the product the best are you, product, it I market the the mouth a product. and the product told delivering believe they buy like for neighborhood great. really Sees money. word And and homeowner the in loves and mean comes

Tim Wojs

there to residential, Santiago, then, QX of rate into is rate be And the the mean run wouldn't the that anything current continue back the year, in Okay. of half? why relative I second to mindful in run

Santiago Giraldo

full cautious, growth more We as to tendency of Manuel wise. was but rate that's revenue as a very in at business. to Well, like that, Tim, XX% for spot we are said just remain We the continues, you QX of year Jose strong quarter here. hope type XX%. know the a even a projecting

guidance are projections So to that we our this and now. if baking that into at the updated upside will it does right be results rate, continue not our

Tim Wojs

Okay.

the be little So okay. about guess and think it expect continues, you And we opportunity, a would maybe quarters the the U.S. seen growth have the because you backlog you in incremental terms that in year I part the backlog nonresidential business accelerate over back then see last guess there of business, when of contribution less the actually half strength three in four of upside do now. there, where some the I just or

you to outside well? of it is in Florida Or actually start the seeing up is so Florida the accelerating? as are And more pick backlog

Jose Manuel Daes

Well, Florida every keeps is it's coming Florida. majority of the backlog, the of most from growth of our being outside time but less. less and

to And it XX%. used I it be maybe XXX%. now is Before, believe

We are in York, jobs few in California. even growing Coast Maryland, New the in West a have Boston, Texas, we

Tim Wojs

raise? flow I You prior Santiago cash Any sneak free or to then slightly flow. flow was free there one to cash just this I for And carry about, given one was? change Any be Okay. cadence free just cash last improvement to on talked how your EBITDA think, guidance supposed it positive year. will

Santiago Giraldo

Well, yes.

in we would getting were happened flow a trend, and don't we terms capital accomplish successful expect when cash Obviously, higher cash are able based hope very give management to QX, flow tendency free rest AR public better to can at full the operating certainly on flow, as use XX% we on the and we are continues for than year. would cash guidance our but we of managing free what provide what continues focused at look the We or if year. for of to the suppliers. you we inventory cash of the QX, growing continue year-over-year. be working with But If on you

Tim Wojs

and the Great. Okay. luck half congrats. on back Good

Santiago Giraldo

Thanks.

Jose Manuel Daes

Thank you.

Operator

proceed from question. with question your next FBR and is B. Riley Company. Alex Please Rygiel, Our

Alex Rygiel

Good morning quarter. Fantastic gentleman.

Chris Daes

Hi morning. Good Alex.

Alex Rygiel

you of note referenced seeing A of? it? material U.S. that inflation quick the you any know that I peers. fact see the isn't Tecnoglass of kind some seeing questions. raw make a of the any should couple price do horizon you Or like of on we are But

Santiago Giraldo

on obviously counting not main aluminum glass. We inputs are that. and are The

on remember foreseeable enter long And future, stable. in that we to We invoicing to And hike we able we them that prices. term be are what long seeing term contracts. are into are the and keep any going is

to So we a and on clients. the quote input the matching have already how we

the future. for not So foreseeable

Alex Rygiel

Excellent. on was inflation had transportation should that a you here second update ago I in And SG&A. the second that quarters some in in then of we quarter going know year? of cost Any how couple through think about the half and the

Santiago Giraldo

there. shipping in the opposed this through to trucking operating in tailwind from some a able actually some other to was things then and places. leverage some Miami accomplish to we were gained the we as ports directly That perspective Yes and logistical Northeast that to There shipping were quarter

actually the trend. and we helping that's hope out So to continue

on material so seen haven't helping out. We marine any increase transportation, that's

Alex Rygiel

last And question.

of can and of the success in that your last the the us update on growth it's you interested your the over line category residential through business, M&A? accelerating Given in product breath that year and changed

Jose Manuel Daes

falls to install. growth area that that better same the a but of at product, rates And looking after keep going better it's a of is in lot as lot because not a the with he to is it in in mean, the we last designed performance. in it. our is And market it. future. And see It previous line because growth lines the loves One have year. the our market We the a saw Elite reception. designed things the other we great and asking everybody was is we they before, new what Like from Well, see that lines And needed a Prestige. I lacked before, choice said clients we love the one for. had it, I easier two few Yes. growing.

Alex Rygiel

you much. Thank very

Chris Daes

Alex. Thanks

Operator

with Wilson, from Raymond question. your question James. Our next Please proceed Josh is

Josh Wilson

my quarter. questions Chris morning on and Thanks. Jose taking congratulations for and the Good Santiago. Manuel, Thanks

Santiago Giraldo

Thanks. morning Josh. Hi. Good

Jose Manuel Daes

you. Thank

Chris Daes

Thank you.

Josh Wilson

moving several and several to give margin been to has what you gross margin year-on-year? benefits to maybe year-on-year. headwinds and any gross Could quantification some you parts as were There tailwinds us cite the

Santiago Giraldo

mix Yes. the We that quarter and had of able the on able able We were sales reduce to the much same were cost. to installation that gain on in amount sales the We certain invoice installation able headcount. were we mainly things here sell were But leverage side. to versus operating as were with to the help of accomplished based manufacturing out. we to

that there to GM&P installation had other recall QX related cost. And be energy would we of piece one-offs you If the and streamline. to XXXX, were cost able we

doing basically energy the business are more same We with cost.

those So operating as all leverage far headwinds to There any speak to gross of contributed the talk really as to weren't profit the of in goes. quarter.

Josh Wilson

look we as between half into the differences any should for? the year, back we out quarters that watch of the And

Santiago Giraldo

No. I of in the which mix that look QX, changes the aside from pull-forward mean back the you if business. we had

back and expectation two kind at look before we you of would or three forward. mid-XXs running be that in If the quarters previous the are that, the going

Josh Wilson

the Okay. be Very are we in to aware assuming? you And the need anything good. of sales cadence of

Santiago Giraldo

Well, year remember, And timing for year, the see us. the lowest call, the said of on was growth typically invoicing. of like first to was that year the but based normally the one the half high abnormally higher of on year-over-year QX we this going is the

have higher the acknowledged at growth year half So X% year-over-year midpoint. that the so or the we probably growth had of still second showing always half a going with the was first to

the rate of very very, rest So for growth strong still year. the

Josh Wilson

The between XQ has XX? gain one and no lumpiness

Santiago Giraldo

at time. point Not necessarily. in this No. Not

Josh Wilson

sneak could and last what one one in, for Latin I expectations the are your If sales? updated American guidance

Santiago Giraldo

muted. pick rates a to the growth in Colombia low. place. We counting just construction the and up coming Interest We set from macro activity rebound. on is are remains perspective from need to continue be basically Everything U.S.

an few it But will second of been if last takes going So year, the results. the that in has the the half as place the the case otherwise upside that is to from growth to be U.S. for quarters.

Josh Wilson

luck Good it. next quarter. the with Got

Santiago Giraldo

right. All Thanks.

Jose Manuel Daes

Thank you.

Operator

question. Company. proceed Romero, from comes with your Please & question next Our Julio Sidoti

Julio Romero

everyone. Good morning Hi.

Jose Manuel Daes

Julio. Good morning

Julio Romero

that know business year. outlook that Colombia to previously now had the you put your thinking some the for I outlook see projects a wanted about question I embeds you next of the last and passed. this year election us How on I update you for piggyback are year maybe beyond? an through kind understand that for last quarter you reevaluated being and that that stabilization were about muted were some on gave hold Colombia. that

could that, you speak could? if to you if So

Jose Manuel Daes

election a much. year lagging wise next this is politics has been of performance. project be not though there lot even hope is And this a We in but year, the Julio, be than to better turmoil Colombia little seems Construction to gone, internally. so delayed. great

for not and on rebounds But for lot. driver a of hope than counting We a Colombia expected. we do are lot growth a being don't it I year. I better next

Santiago Giraldo

to market. really than continue imagine of would XX% to that, strategy part the penetrating business end. by Just add our more U.S. that's of the And year Julio, been I the U.S. to becomes

So and U.S. Colombia to the but is will going the LatAm be growth serve of be fit we driver as it may

Julio Romero

your Okay. are having some on peers headwind construction still cost are U.S. necessarily not How That's across material causing on of a kind to hearing helpful. are the some the cost certainly about projects rising and of affecting cost that's and side? are had the impact raw We encouraging. And spectrum. demand delaying in you that mentioned that

at some are in a speak you all bit? your seeing to that of So that little And you customers? could

Jose Manuel Daes

No.

all. seeing not We are that at

in contrary, increase be It next are to to those being are the the built. hope we We hotel for especially in example, least if backlog, Beach. are the like Tampa, close projects. On projects. year XX,XXX there Especially negotiating we West half at seeing that built even the rooms sector of is going a rebound in in the Palm amount. Florida, unbelievable for it's that Orlando, strong we mean, Miami, I

Julio Romero

you hesitancy an my others, your that are these are uptick Have is maybe to rising inquiries causing Got causing all? in costs that just, at it. follow-up side? to Maybe material seeing been on that

Jose Manuel Daes

No.

Julio Romero

much. very Thanks Okay. Very good.

Santiago Giraldo

Thanks Julio.

Operator

your D.A. next from question is Our with Please Davidson. proceed Karimi, question Zane

Zane Karimi

Brent. for is on quarter. on Zane, Hi. Congrats Good morning. This the

Santiago Giraldo

Thank you. Hi Zane.

Jose Manuel Daes

How Hi are you Zane. doing?

Zane Karimi

but I improvement top as segments the kind on saw with the of or little low there? Southeast touched quantify know through the the what on as then any seeing that, market U.S. you you are increase, earlier, can off a most And the rise? impact first of regards it weather Norhteast, you of to you well sort south, backlog So mid of

Jose Manuel Daes

the a that We remember are new. because, lot we are Northeast in growing

We have been it job maybe from business it, or Florida doing least you two takes outside of years. three And day years. the you a for at to four two-and-a-half the until that get finish last

So now that the the are getting we customers are seeing that and repeated perform jobs. and the quality the that end new in more we are of on-time product,

that For we in and and are Chicago customer example, hotel. to the the hotel X. I great, quality the of windows we the noise. job great said, We We those and we are are you The just the our did like other And in hear day said, train we hotel. went the a the And don't the were and windows that did want started a same hotel did meters of at the customer glass. well that windows. a a couple by

we outside much in lot, grow. to have are a to well, a we why than and When there Florida, room in you Florida are because there believe performance that's going So our Florida that because lot. not we of keep more you is of growing have growing

Santiago Giraldo

the Coast. West question, area your beyond to Jose that to Texas add and and was summarize of growth, what Northeast is greater the about, talking to the Chicago, Just

Zane Karimi

capacity for how there? meaningful when to of more expansion? Thank that. particular contribution about of And a get you kind expect you then aluminum any and you production Or in sort until from Okay. long capacity full thinking the

Chris Daes

Well, to finally question. Thank I got a answer you.

are We today. fully operational

new actually line seeing that you of X, is line. new production are a and full also place in have August We as paint

on see business. expect hit because incremental EBITDA an is So right away we to aluminum

of sorting for are everything and system on have We that orders system the is line plenty the that the also site sorting and along. coming we new aluminum and doing glass

doing we able to that if to September, efficiencies. time of things sales, also on benefits we be company a to And brother, everything more a we of see October be that lot actually in by it expect of will for able like we my takes more to the are to near Even doing stay today, are same rolling profitable and the increase bring We company. beginning late if with we are the good going job sales the future. are lot be

Zane Karimi

next the quarter. color there for and good the you congrats and for Thank luck

Jose Manuel Daes

you. Thank

Operator

Our comes Please from with question. next Ospina, proceed your Miguel Group. Compass question

Miguel Ospina

for I be know Hi would do to outlook Tim. for going free like low. grows it Thank free to because you and flow to are generation cash a EBITDA to you I the it presentation. continues your flow but just lot, what see when cash improve very

So for in only example has to been flow you. but you $X have Thank generated cash EBITDA free close $XX to million close million.

Santiago Giraldo

on answer free We Miguel. not flow, I provide Thanks but guidance cash do will your question.

demands are And look your If you XX%. when be at growing capital substantial. the XX%, growth are will above working year-over-year, it you

obviously you working included when is in there. EBITDA, look at capital not So

did you improve from QX, we look what terms greatly and we if However inventory were in management at able suppliers. get to better

proposition. XX% but there growing getting easy are is we So not an

you is realize investing are start become once to that thing not getting see the right you to in investments profitable, that and CapEx operations your other more grow realized. but The that you going make away, when are

have that's some point, on basically we the flow have use So cash in We capital the continue and in do as as some at growth increasing able the color. drive then AR as past. it for hope don't to we you will much were And time. which profitability, as working in tapers management if QX to efficiently

Miguel Ospina

Santiago. it similar a XXXX? next But CapEx could that you Thank could you to be lower year? would be sense? Or say Does make it

Jose Manuel Daes

me probably if today, gross will ask But we No. lower significantly It year. you one new this be our will quarter unless opportunities. of find be it

of we this don't year. be to certainly to even close So we expect half did

be definitely, So it lower. will

Miguel Ospina

Thank you.

Operator

question-and-answer and over the Jose to marks. back We will Officer, Executive Daes, the Manuel have I call turn Chief the session end closing reached of now for

Jose Manuel Daes

Thank and you keeping We hope coming. the working everyone for participating Thank to news for in today's you. good keep call. shareholders

Operator

today's conference. concludes This

time. lines You may you Thank participation. this your your disconnect at for

Tecnoglass (TGLS) 9 Aug 192019 Q2 Earnings call transcript