TGLS - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to the Tecnoglass Inc.

First Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

to Nacier, conference Investor like host to now Rodny today, Relations. would turn over the your I Thank you, sir.

You may begin.

Rodny Nacier

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

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

may are risks financial business, information, XXXX, current in operation in acquisitions. this like expectations forward-looking to performance, and These a nature regulatory to factors, Securities indicated Securities in filings future that light and or time to from those expressed everyone Tecnoglass' Tecnoglass' the from beliefs results presented except of statements other on are I'd during future subject are based historical meaning in such matters vary discussed within changes future to call call, time Litigation uncertainties by the or for in changes and in of the due These competitive risks, and/or risks. contingencies information Tecnoglass' is Reform herein including uncertainty Commission. material business. statements growth remind with the and and are The statements Actual affecting economic, the circumstances. Exchange Private Act regarding and discussed uncertainties, implied and of the of

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

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

Jose Manuel Daes

everyone incredible in who that our of you shown the today's of adversity such during I like start, would incredibly outbreak. thank call. and strength I'm have of team to on for members, say the participating COVID-XX To Rodny proud you, Thank all face

situation. are Our thoughts with those this unfortunate by impacted

unprecedented health top through of and the moving our others. and our is priority protecting times safety We're and employees

our essential customers of our U.S. deemed continue with of customers to and being and all operations and the we America Latin operations responsibly. are serve Fortunately, in safely most along

into first COVID-XX we in the the impacted issued of in national quarter began demand governments This many Looking at our of with March, started shelter-in-place plan becoming activity orders. In tracking the markets, line as of spread end people rapidly quickly results, and local quarter year to the our February. visibility January our on with in invoicing and less. our majority trends

performance Santiago sales will year an year-over-year more detail. prior which exceptionally March, Our of strong in disclose reflected also

result. On Favorable margin adjusted solid mix large pricing the the automation XXXX. high-return side, the our higher margin reasons the of produce and improvement. operational since delivered also We for gross were EBITDA where to realizing our initiatives. and start benefits total quarter of pleased revenue We first highest main team material the

quarter, markets XX% XX% key remains and the our and business over was our in in in series. the past of gaining foothold of visual of U.S. year. the efforts selling representing Our a continued, backlog penetrating U.S. expansion revenue In of residential focused XX% further our and U.S.

our sheet this cost in in even when confidence a our changed lean While the a in footprint, last and geographic us world environment. ability structure position has lot, continue give to our update balance recall, diverse since uncertain strong business

Over history, times. difficult XX-year we overcome have our successfully

time our now platform. vertically so business profits XXXX, grew we and I of integrated again more do ability full larger each have are emerge the company. year the great this recession and much a to in as During generated stronger confidence and to

environment. We through navigate to prepared are current the better even

the U.S. industry. of today, bigger much are we While architectural still around glass X% we only represent

there many to engaged, by strong as demonstrated remain backlog. capture So opportunities revenue our

advantages accelerate expect recover. our as We markets the to

the to strong and resources capital road bumpy We ahead. position have cash a avoid

our additional but to have effect changes our the taking adapt sheet are current success to to actions shipped for We to this emerge period. improve loss business also our flow from and any volatile cost stock cash environment, business long-term that only as not we structure, we aid balance

I'll over additional and our Chris to now call on turn the provide response backlog. to details COVID-XX

Chris Daes

five. Jose Manuel. slide COVID-XX number with you, Thank on our response Beginning

have and proactive and balance couple to many Over strengthen measures have our the as the robust impact response implemented of of sheets the last a months, also pandemic. we COVID-XX economy experiences plans business taken global

U.S., still in effect. the orders to are Colombia, widely in stay-at-home there Similar

to operating under and are infrastructure We construction the companies a granted support special that inception sector.

in to As local many products, guidelines employees, partners. to we install cases, protect from and well-being and of continue beyond gone manufacture and our critical governments the our customers CDC have we

and We practices group sanitation implemented have working enhance remote other minimize policies, gatherings among measures.

as such other a into manufacturing also suspension enable protections to incorporate in March more have production of best early plan depth workplace We weeks to logistical distancing comprehensive three for to the protect and and April. our initiatives These social taken implement operations and us our late install temporary practices employees, successfully in processes. and

delayed around timing while the varying orders late government that March of move The interviews time. into getting deliveries more April to they us as customer patchwork scheduled shipments allow some assess

during projects ramp or retained POS we We've limits, quickly shut vacation possible. slots force invoice in invoicing since up down have back was by while of were to up these it our that mid-April, the the labor significant a activity. for plant ability using and the portion time, While day made

efficiently. to resume able So we relatively operations were

with entered resources company's our operations. a with point pandemic global along history our the the to position financial capital We support in effectively these strong at

flexibility and cash focused generating on that financial are maintaining We flow.

expenses have strict We initiative implemented controls, of the started in non-critical beyond completion XXXX. capital all operating reduce cost and limit expenditures

flexibility contractual staffing our make significant for decisions majority of workforce. have quick the We to

Given our force operating temp that a large part through agencies. contracted of is

were jobs are to possible, protecting balanced cash while We approach ensuring are preservation goals our taking a achieved.

resources our allocation. be We prudent continue will to and capital with

will designed accelerated for have we us as help this of share taken pandemic, emerge deliver related gains the that not and near-term allow growth only any challenges impacts demand to we mitigate but more from crisis. actions profitable to the The also

to our number projects business element of Moving A on backlog of a have pipeline in our six. multi-year of that view value is the our on slide revenues. we commercial our portion

backlog the up, the X.X% year-over-year, in to Our $XXX quarter represents quarter-end compared now was of which million primarily XX% our XX% U.S., backlog of first XXXX. in

compared are schedules. its we continues, crisis these the initial broader and COVID-XX the influence projects the specifically might monitoring impact on of macro-environment closely the to invoicing timing how As

where according bright is markets to most permitted. the side, construction On activity still projects are processed planning

lower some assuming reasonably put projects such have combating authorities some have prioritized the U.S., delay projects much the is northeast than usual, the that pandemic. where York delays visibility entirely in the local on get To are we as we in in seen commercial However, hold. area point, that temporarily or New

bidding relatively encouraging Overall has into we U.S. market underlying activity demand XXXX beneath the read related stable in April, COVID-XX first which the the for is remained of four as through months disruptions.

are which end with based single-family get we get looking enter market backlog, teams our seeing to coring are February back projects which they the that pleased conversation is in able developers, once been off XXXX. have with into place. finance most to more on sales Our Residential projects in very we activity captured our are ground not continue and by continued penetration

pace suggest, orders are product residential our uncertainties. have the start and growing rapidly housing economic conversations Overall, Recent U.S. business, new presence share most capture projects still economies. timing the other and the for of effect with regardless data offerings and In feeling shifting environment. of we shelter-in-place local and shelter-in-place additional demand a to restoring our lifting gradually of share governments are to the better national

operation on flexible how we we to tell In have see evolving. based this our environment, remained demand

have up down of operation the a vertically we us, to integrated For benefit quickly. and scale

through focus and sales We liquidity, during optimizing delivering to will these quality to periods. backlog continue focus development our our and customers on program our business service volatile growing

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

Santiago Giraldo

eight. Christian. enhance and cash sheet our our slide have reduce capital strengthen on flow made Beginning to generally leverage, metrics. Thank recent with years, you, we progress resources number In balance

During the first generated XXX,XXX. we approximately flow quarter, from of operations cash

given low capital year improvements. payments, This million cash actions tax is quarter quarter. to essentially and and flow interest of first improved to preserve working compared prior aggressive $X.X reflects The the controls a by partly timing but cost point cash, for tight including

Our by $X maintenance approximately million, scheduled increased annual million of reflecting high-return automation CapEx $X.X for facility approximately production in mainly at XXXX. cross payments investments completed final our

be to As thrown a XXXX. expect largely CapEx in we loaded result,

the of first liquidity our have end position. the quarter, build continued to Since we

total liquidity paying bay available $XX of are abundance measures approximately and drew million lines million, credit approximately $XXX preservation on also off credit. an begin $XX cash cash down we million of and caution, of of with our our lines available additional to including of Our

long-term our well resources capital for set the The are current up of structure environment.

of until do million senior Our not the amount notes $XXX mature XXXX. in

Beyond that, facilities XXXX in X.X extend maturity, a roughly on of are our lines credit out. average credit years weighted through

was period and at up of impact The $X in partly we FX major during compared the to XXst. sales and maintenance. times, is to $X.X on slightly X.X initiatives to million cash Looking our the due which year local at December automation down leverage, quarter prior X.X our million quarter CapEx times complete net sequential the In ended from increase currency.

appropriately challenges structure our the We balance is sheet believe to face ahead.

million worth available covenants credit. no us time and discussing this $XX to have on our have of over we We lines at

to to based efforts. prepared other at see are needed, reason additional but cash this as do draw do on We our not so a down time building capital

preserve automation capacity, return dividends. don't a our investments perspective, our the current completed in short-term. to capital on capital a material investments, of a result as to allocation objective From and shareholders at time install portion we cash our Based foresee this is of primary CapEx our growth to

Saint-Gobain, in level be The float begin called additional our providing second the plant venture needs. In funding for to glass backstop the funding with any arranged on pro-rata communicated at for with plant JV glass construction a the basis plan a float we entirely previously joint of partners to a JV XXXX.

effectively market the strong position environment. as capital market is further and ground near-term the conditions project get expected a to to the demand The conducive quarter can balance evolving sheet ended be Given to the thresholds. we permitting internal so. project current have so and climate, are with the our reviewing fortified the economic timeline completed Overall, once are reassess we navigate do return soon, we off

nine. timing of first Looking call, a prior comparison that the on in year, year we revenue on at the the in we of on projects on have update prior our last slide challenging the drivers quarter. will number invoicing Based indicated

scheduled in quarter. This year with days prior because maintenance of plant more of expectations at essentially and revenues prior compared have the less to and January year par invoicing manufacturing with for days Columbia was quarter. line in due our five the relatively five facility our That During February to maintenance. of tracked downtime good January XXXX, on we means

In timing represented prior in projects. of level to was March of for of of the revenues the month The the out March, well decline year the above due trend quarter. invoicing closing month the

March at April were XXXX, invoicing nine days temporarily of XXrd revenue operations March looking XXth. suspended we plant However, to our by as from impacted fewer

at of uncertain As protocols causing plans with COVID-XX outcomes to on rapid and the mentioned, schedules, the given took after Chris customers U.S. construction engaging flows safer disruptions we schedule. outbreak mid-March, customer the delivery for downtime production implement processes in to the of

environment full orders operations of resume we employees' efficiency, plan health. prioritize the on use to stay-at-home the Colombian the government initial to For safe to phase their prepare our

stated, supplier the as previously remains and have to in essential construction place as of the sectors been operating key home exemption a As as infrastructure under stay order business even today. an we

customer shifts pent are address April with demand as the improved have April, to up of added Through we ability essential proceed of work. resuming the most XXth, operations in demand. U.S. which gain Teams month their environment confidence projects on to

XX.X% percentage improve at EBITDA drivers XX. EBITDA the were basis related on a adjusted year by the issue the from in pleased slide to of Despite points sales as to of to the adjusted Looking in quarter. prior compared to COVID-XX unfavorable XX.X% XXX revenue we impact number March,

mix to compared In was offset the to adjusted XX.X% $XX.X or million for a by $XX.X products installation in operating from from sales. dollars, primarily efficiencies basis improvement million lower revenue margin well margin initiatives greater higher as material of lower automation in gross implementation a our avenues point The XXX of We gross quarter. improvement costs, manufacturing EBITDA raw partially versus as XXXX. reflected of XX.X% in

million, by lower and was lower $X.X we incur to variable would continue as costs less manage revenue. as SG&A expenses we given in

trimming As volatility. market costs, the ongoing mentioned, we're given

front. this on progress good made have We

employee dedicated efficiently to leave in efficient lean with along our base, costs operations, our ability Our vertically highly with and our demand. our us integrated was confident match

to margins. improve additional We to leading maintain our industry source continue efficiencies and will avenues

slide number our at markets Looking on XX.

most market For we part, are construction customers any in permitted. the where is supporting

states good to made construction considered a have infrastructure. critical for of diversify is outside we is progress still In market While that essential and us. Florida, represent significant state, that housing

So space revenues to More that designated our or products of assuring and sector of have is in for the construction customer large suppliers quarter XX% or broadly, of a business. an essential part is approximately XXXX that services backlog first jurisdictions as base.

In nationwide easing a some we have infrastructure the through construction extensions, shelter-in-place have markets, and Texas construction projects and Florida an Colombia, On notable to certain under where for exemption under continue. May activity begun several XX, but but and is general states projects as we country the the limited. In a general U.S. least for New we most encouraging at expect order have such restrictions. including presence is proceeding Pennsylvania, York part, note,

Moving outlook provided to our we full-year XX, our have slide XXXX withdrawn financial on adjusted and EBITDA. for previously revenue outlook XXXX

historically XX period. month provided degree high has over commercial for backlog revenues of a a visibility Our

issued in outlook market. pandemic prior single-family the from our expansion continued before anticipated backlog demand represented plus into existing end Our the residential projects COVID-XX

Our through the in deliveries we lower do the commercial short-term, backlog visibility invoicing on but remains the situation project House will market ongoing timing the XXXX. on COVID firm depend each of year-end we that serve. in have

being remain April, plan and an revenues near-term. the April prior the are were to March. per For per in the day that sanitary a than COVID first to to April, depressed XX% daily day for revenue the housing In of of by meet encouraging were higher start increased to adapted single-family, during suspension Even temporary declining standards half seen plant. the half though the days our second of operational, basis we on compared level invoicing in revenues March expected was

improvements to orders majority and remainder the the attribute month-over-month to of underlying We relatively stronger that backfilling of demand.

the we XXXX to to revenues We a While second prior quarter month-to-month expect improvement June. through year compared basis sequential anticipate quarter. of lower on be currently

precision we Given of operating with the capital base. year cannot a be the of estimated the current at climate, XXXX good strong summary, on time. the solid platforms remainder nature with unprecedented entered this by momentum economic a In supported

deliver period uncertain necessary taking we cash customers. are while move As strong safely we and flow cash focused the serving on to ahead, management actions to

begin to continue our adjust will for are our market monitor stronger expectation We a that business company and when with plans improve. aligned conditions to emerge as to global

to will that, be questions. your for questions. line Operator, With the we happy answer please open

Operator

Thank Instructions] [Operator you.

we while our moment first question. post One

with Our Mike first Company. question your Dougherty question. with from Please proceed & Shlisky comes

Mike Shlisky

Good morning.

Jose Manuel Daes

Morning, Mike.

Mike Shlisky

to finished halfway a this the you're are? that point way started concerns end. the your of So, near where this building of I kind or finished wanted backlog start schedule sort is to term at real even at the about invoicing to when building and on the year building the you into point, I going through ask not mean, springtime, if a partially all

current timing near term So than maybe is other the differences. very my going backlog projects, isn't to change guess the much some

you end of I of worrying question come to this backlog guess you XXXX about kind that might there's question projects end pretty of the year? my sort what because about this good not new the there's point the more much delivered on some has projects? perhaps, at concerning is but year of Quarter-to-quarter, Do you're board? -- is been feel or that more year to the

Jose Manuel Daes

feel Well, very about this this We confident is Jose. year.

there delayed backlog But XX% projects. was a said already and just continuing. strong example, all last that restated for up. them XX even of one are financing. of seen Especially a the couple week, have We've they logged We and projects the

year, still a this demand. we for she strong So

is In backlog for again Boston, they're work. we anything. York. And people next year. closed New of talking there Texas, lot a are starting haven't year we they closing, to have good going a open see And to In about next because

is that going. are confident We going very to world the keep

Mike Shlisky

with walls what's in the outside people do Okay. walls. your kind those four within who business Colombia of been And four other then to ability are

trucking So items other your you. an food might for outside help in things various as like every April under contractors, brought service to out well, since outside be provider exemption, that has But some be your of getting services, have day. Because and that okay have been to able you're you XX?

Jose Manuel Daes

sent a over construction any expected. that four is every already weeks, home were last obviously, We problems piece haven't all had Colombia, working work. to and keep three numbers than it's through record in We bit for anything, for weeks. But sales hit three weeks, now try day. now. been lower We or a of the open tractors unfortunately, to especially those back doing the we're been little invoicing We've on

XXXX, have to second consideration good, the company. build a that that XX event, residential is is into to is our our for very a going looks the of we good, quarter, supply also to be in it look and continued to strong of very with end looks retail, trying close, expect done grow is which decent taking today of we were demand the a good, XXXX but and lot So not days example, but now backlog, things and we that April first quarter, is but are in obviously

Mike Shlisky

of kind offset to declines the automation? quarter? the quarter was of basis of in EBITDA you or since Maybe the very anything a reached in Okay. very, volume on kind first strong here the I some think margins for more and those whole cut do a some fourth plateau margins Or quarter. new one to guess, Obviously range of job improvements just there in made temporary your kind for on of you me. you've

Santiago Giraldo

Basically material less Hi, raw was through We're Mike. in against contracts cost is some done were place. efficiency. it of raw Santiago. that This material seeing already

do expect So continue forward. that to we moving

of closing with business out some projects. was that piece Another of installation the business mix

you So, installation. revenues than basically rather had more some manufacturing

in of lower a to the think year large on on it's to I you related expect So structural mix part material basis, automation. efficiencies efficiencies the But rest going quarter-over-quarter. raw and that the from can depend both

and in a conversations, efficiencies previous had we earlier even year to do As on we gain the expect basis. gross margin mentioned in

are depend would But from that think perspective. certainly going more on mix efficiencies things us on gross what to it's I there to margin structural or So gain happens a less quarter-over-quarter. allow

Mike Shlisky

large in help April, Santiago. few had The the last you was amounts of just this closeout I drilling weeks activity? on here in just that the heavy

Santiago Giraldo

I missed first your part you of Mike. repeat? the question, Could

Mike Shlisky

The had in back came high closeout? you that that's weeks there to level of if been last work? And have the on invoicing few high

Santiago Giraldo

constant we've far in so been been line. it's We've seen with Yes, year. the what throughout

Mike Shlisky

Thanks Okay. I'll it pass along. much. so

Santiago Giraldo

you. Thank Yes.

Operator

question next Tim Our proceed you from with Wojs comes Please Baird. question. with

Tim Wojs

guys. hey, Hey, Yeah. Good morning.

relative that you have quarter? you -- on my like And the in first expectations you how same kind just guys kind but you appreciate the that your you the quarter the Maybe all first to for of are. have frame same all the sounds slides. on seen performance are of through month-over-month improvement that second would If and question, the safe, of business, detail the kind residential expectation

Jose Manuel Daes

we past in good. lot and XXXX. Hello. we've day-by-day our more of -- demand a a [Indiscernible]. quarter we We in of The residential January, lot weeks expectation though did open. almost doing we And in in quarter, business. businesses the March. We This demand we're strong is first in for the weeks We is receiving. invoiced Jose. couple keep seen didn't closed the we can in have we for really two a work week the We've and April first see of two even surpass because first been the than in quarter that our And

to expect this grow We XX% by year.

Tim Wojs

Okay.

should then under So still Santiago, business meaningfully despite That's everything pretty in XXXX. to just, the hear. liquidity. And residential grow good maybe

to of be working of on a might kind last big that guardrails the been positive give in depends but I picture any and XXXX able be by? think know it's it used of sort us might in you that sales terms what he and should couple mentioned capital I years. rate, working improve capital of

Santiago Giraldo

you depend to Like it's going on say, mainly sales.

efficient. I have think much our pretty is inventory very we

again saw coming quarter. this down You it

related The been really how to of able it's So we've to able last couple we're to months, collect. normally. collect efficient

continue that work Our to been clients and hasn't an issues.

be kind number. be related exact think to to certainly going up on should able giving he's without we team of an But be. I you to that sales think I last what deliver shape So what to we build year

I last better by saw we to you think that we that cash million operating the than on quarter operating should I able and almost think already first X.X and flow improve seeing we it are cash flow -- in deliver be build year.

Tim Wojs

helpful. relative just the picture expect Okay. questions, But kind one. I last you backlog curious perspective then, of industry Tecnoglass cost of from your given That's bigger a just XXXX? maybe to I'm And how to position, low as just kind and would guess XXXX just perform would weaken you things got into a if

Santiago Giraldo

a been I've to Listen, every time that's low the have with of we lot And we We -- perform because a in the a out company crisis, them. we is when better. handle in XX, future. environment, crisis. of were we're mean, And I cost there XX born years love we now. are

and our situation, expect we continue this winner sell can the our in see we we more, more as that pandemic on are to -- deliveries we we mean, go efficiencies efficient, Tecnoglass I middle to on could the a we numbers be better everything -- make improve improving along. and of

additional to have that have had seen today. we or easily have if have easily we would more have million complete EBITDA the would $X invoice million three you or $X number two invoice and We of a we would quarter,

--? we to can want we -- more, make for with feel the ahead very obviously, my which have build that Jose, to are sure our is we confident we're in residential. We going us. but add we to future that XXXX, we especially So for have already backlog some,

Jose Manuel Daes

of go peers, that. able we we're competitive, things make not price, our But we're be down, since money. still lot demand more get margins have the to down lower better work and a of When and all goes chasing

enough As will ground on we're we do show the a If it. capacity, just had for long price. of and growing moment, see with a we're solid demand gain rather make to that's the good solid businesses and lot idle profit we But good we of what doing for the we not with profit business course, now. as

Tim Wojs

Good Thank guys. luck Okay. you. everything on

Jose Manuel Daes

Thank you.

Santiago Giraldo

Thanks, Tim.

Operator

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

Josh Wilson

thanks and taking my are well. morning, for Good questions and hope you all

Santiago Giraldo

Good morning, Josh.

Jose Manuel Daes

morning, Josh. Good

Josh Wilson

Thank you.

Could First sense and the maybe one. you, looks Santiago, us of CapEx D&A like year for what some give now?

Santiago Giraldo

Yes.

the at we less talked had beginning XX being So about than million.

had As remaining you front be commentary, the the expect in automation CapEx on given we to heavily initiatives of heard the loaded QX. pieces we the

left forward, to don't less foresee which be whatever's on is CapEx topics It'll not XX we for than any the the think going Moving about. million just much. and the We be maintenance automation, is of growth I [ph] mainly the still talked remaining year.

Josh Wilson

and efforts expense is Okay. on cutting And us then of sense those much give mentioned you as of some be well. might a you side based? the it volume what how cost Can

Santiago Giraldo

Yes.

obviously lot cost. employment. can on Obviously, much the do So side, professional from do traveling so has you expect you it's variable everything of there's would rationalizing, SG&A you a fees, front. preserving expenses, since prioritized The company cost only can what is

were Jose our to So Christian the and need we're that talking employees we're backlog going with about, keeping the employees. and for short-term

to and other headcount mainly material reduction. what that as of related going on waste, or to not SG&A do related the as already efficiencies related having that's to through fronts, and out. It's going less we automation, can more flowing the are it's others kind far So to are come also that help to

Josh Wilson

of what sort dealers? made it. progress have you adding resi family single Got And in

Santiago Giraldo

to want take you Jose, that?

Jose Manuel Daes

Yes.

it's is We Orlando, breed it's -- because are have different distributor most opened in -- no Orlando hurricane the product We a of in hurricane we adding because is a it a we did in which even Florida. in dealers zone, just for And of didn't difference middle day-by-day. new is not proof. a Orlando

area. So in we windows We We time good. did. doing distributor opened starting. to It's a the took design that bit is of for and our already

sell Palm seeing window We We're opening Bauer another distributor. also the a in the one Dade Beach and that Coast, because before. Miami, didn't dealers a in of And we're West County we are reliable. in they're Panhandle and lot also [ph], having there

Our by product is far. the best

range of windows the widest the of company any in U.S. have We

very growing the confident going residential. we're we're that to So keep in

Josh Wilson

for clarification me. last One

far as So you goes, impacted your jobs weren't they time? downtime to at delay fair as or same your any didn't the say to that chose customers lose because

Santiago Giraldo

No. all time. Thank of head to being -- God, used we have gotten are we ball the the

So we were finished like heading Port four we the of already weeks stock the in deliveries, materials because like to Miami.

won't a is a is it jobs. if broken the So there anything, or ship strike, affect if

little there a So, this. take delay we the process. Jose whole were able one it -- no was without in can in came off to a the but the volume hurt three bit, weeks problem. Obviously, when amplify the single shelter not order

Jose Manuel Daes

as them a them other two delayed I that about as just And we -- sector in stated two jobs were lot. the two hotels jobs, have suffering the soon believe the is three because before. I and Florida of are and And or had of restarted one as hotel

year, So I by come of going believe to going we normal. everything And the end to they're retake believe that the hotels. back is the

Josh Wilson

Stay Good luck still. well.

Jose Manuel Daes

you. Thank

Operator

D.A. with Tillman question with comes your proceed from Britt next Please Davidson. Our questions.

with question Riley. Our B. Alex question. Rygiel comes proceed Please next your with from

Alex Rygiel

Thank you. gentlemen. morning, Good

Santiago Giraldo

How Good are Alex. you? morning,

Alex Rygiel

get sales captured Santiago, backlog? your don't what good. portion in Pretty of

Santiago Giraldo

residential. Just single family

Alex Rygiel

family exact the what the then number quarter? was And Okay. in single

Santiago Giraldo

XX About or million so.

Alex Rygiel

Jose COVID? Perfect. competitive that key some Christian, to of Manuel or could And of advantages you those kind -- see can then, you developing you go through back due

Jose Manuel Daes

COVID. of not We a cost that, still is [Indiscernible]. case of and because demand we What they money things, lower develop and advantage. keep price have in do stating advantages brother on the the the lowest No, my the down can make was

Santiago Giraldo

quarter into of also other is we coincidental and bought coming precisely that XXXX. that And the now all system are the in with COVID -- automation sorting the first second place is the the we phase and is that --

example, For the it our factory for big will will aluminum operationally June. which system be impact, a the be sorting for in window

So, lot and and you less more build materials. people need you to windows that will a lose be less more could efficient use

coming profiles less We XX% already we painting is have into are extrusion sorting that all So And with system. amount of people. than before place. the the plant in more our now ever the

So prices down, aluminum the down. of come have come have costs

of competitive. better lot make competitive will advantage even that on So develop now help from us there will is and maintain a efficiencies that the us

Alex Rygiel

very Thank much. It's you helpful. very

Santiago Giraldo

Alex. Thanks,

Operator

to Chief I Manuel, back time, this would to at Executive you Thank Officer. over Jose like the turn call

Jose Manuel Daes

Well, thank in you participating call. today's everyone for

are confident to work of the that shareholders we ground to make U.S. very We in satisfy our you. market keep We future. our hard the Thank in gaining sure and

Operator

Thank you. This does conclude today's teleconference.

your lines this disconnect may You time. at

Tecnoglass (TGLS) 9 May 202020 Q1 Earnings call transcript