Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to Tecnoglass Inc.

Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Brad Cray, Investor Relations. sir. ahead, go Please

Brad Cray

of joining copy Tecnoglass' to of be Investors call for Conference accompany Quarter Call. may section the on A the obtained Tecnoglass us you website. Second for XXXX this the Thank slide presentation

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

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

expressed changes the herein Tecnoglass' other operation Actual results may business. economic, vary in risks the in regulatory those implied due and statements or a factors to of competitive from material and/or business, affecting and uncertainties by nature

in assumptions These Tecnoglass should risks, in with of mind may contingencies otherwise. alter from The are risks. whether the expressly in indicated indicative be uncertainties period future under or result of update Tecnoglass' financial of a and events, to as particular obligation in that and in any no discussed its investors the Further, presented future to call Tecnoglass' such SEC. disclaims light results. is filings keep information during changes to not obligation results statements, time any is or forward-looking information, new time

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

Jose Manuel Daes

fully, despite operating of record quarter. We thank the for revenues during the achieved ended half second first environment. today's delivering and and on results everyone, call. Brad, you, backlog complex you, strong Thank year the on solid We the participating

execution of achievements by our $XXX.X also our resilience marked model business These revenue key end members. fueled million. Our and increased markets. of total tenth year-over-year of of quarter our organic in the quarter our growth, reflect strong This dedicated double-digit focused performance a straight the result to team vertically XX% the integrated the second revenues in

Our prouder levels of work demand and of adoption and the our our ability our all increased across business. innovative to not hard be could and continue on Multifamily This a by services products to growing gain products. dedication colleagues share for of we I of commercial line as and the record our our growth. drove year-over-year $XXX.X top again backlog. XX% million business of to execute our

high-profile to demand. $XXX we quarter the backlog delivering in large growing our success helps project to by This is drive a demonstrated projects end. momentum Our seeing record in are at million

single-family Our to grew a sales to million. record the $XX.X XX% residential market

through combination and are geographic a attractive into We dealership expansion winning growth of markets.

secular from still homebuilders oriented a for tailwinds, of benefiting we also growth. room additional product Southeast lot and where particularly U.S. new towards offerings in are We the see

Building on our our a year-over-year we and standard million. with $XX performance, strong of expansion industry-leading EBITDA sales of were adjusted the thrilled margins

have vertically efforts, control to and generating returns. integrated the combined and solid platform cost made we disciplined improvements sustainable Our our structural with

XX.X%. adjusted growth averages. the both to XX.X% expansion EBITDA efforts margin margin and efficiency multiyear Our contributed year-over-year of industry We margins and those gross to ahead well automation to are of believe

produced for and capacity am so annual occurred going I of the flow. payment, expand and operational income our during improve quarter, of team business. our to again XXXX the beyond tax above Excluding operating cash and which we levels free proud exceptional our

had more very pleased these previously We than realizing investments we of capacity are outcome planned. the with even

products to Improvements deliver for meet have as vertically high-performance our to these and shorter the base to lead ever-growing our our XX% customers increasing times. such effectively us products. are to billion $X roughly installed by our This to with better enables ability We over of integrated sales. contributed demand a production annual platform, even high-quality service to

We continue market on a we advantageous Based structural vertically our labor to margins industry-leading feel platform advantages, and of while be delivering returns. as dynamics. serve result strategy these broader to integrated and a confident reliable highly on our

as gain market to as encouraged made share operational advantages, have ever investments in business. the structural in our significant given and are our We we ability efficient our structure

As to are solid such, XXXX. growth revenue to increasing for we meet trends demand reflect for rest expectations year of the EBITDA outlook full our and adjusted our Tecnoglass

operating now over highlights. turn to will I call Chris to additional the provide

Chris Daes

you, Thank Jose Manuel.

bidding throughout backlog well record continued of and wins the momentum as We X. ended on business. up commercial accelerating which with This into quarter $XXX Slide backlog third activity solid the Moving our the the in a project quarter, to and as year-over-year. reflects multifamily million, XX% quarter

that products can high-profile value deliver on Our plans. consistently projects they Tecnoglass quality maintaining while to the on depend lowly customers

While in our remain fuel to key high interest favorable elevated rates backlog. and demographic secular continue trends geographies our

XXXX This into end, to projects quarter projects strong on XX multifamily indicates during pandemic X.X commercial. the At put our of our backlog in continue pipeline represented activity. hold and times, months formally as a resume revenue trailing

of in as tailwinds forward-looking territory Index Our South region healthy saw further the presence support in have indicators positive and -- an further is supporting that reading of the consecutive of the our seeing that expansionary ABI are outlook largest reading demand region. XX.X, June levels expansionary activity ABI such XX.X, by the we where second reading we

other our backlog buildings, approximately The last related residential of reminder, is where a are commercial to variety most is wide outperforming X/X which a mainly As projects medium firm. composed commercial of high-rise demand remains sectors. of currently X/X and

of shorter-term our backlog, growth Our the spot captured single-family residential trajectory fully is not duration projects. in given

Our quarterly expanding share. positive, footprint and continue residential record delivering our remains performance taking we single-family a as market business revenue in the

in even our shorter product of investment several peers. our and times now well our capacity, are five in of many lead weeks approaching Given ahead lines

launching in have where already are opportunity new where we showrooms We are operational. growth projects new and enough areas

as well large as Additionally, customers we now demand are homebuilders’ to given and aluminum our increased stand-alone operational positioned increasingly for well the capacity, glass products. very service

full single-family forward by our in to our We strengthen trajectory competitive our and confidence XXXX outlook. advantages encouraged architectural continue commercial glass. we leader a innovative residential leveraging position strong as structural to projects, the industry us our addition to in give backlog demand strong relationships look ahead, rate in which growing portfolio, multifamily and of in Looking are

the turn to call now and discuss will Santiago to XXXX. I over for our outlook results improved

Santiago Giraldo

Thank you, Christian.

Turning X. to Slide

reflects performance. produce and quarter environment record of integrated priorities results. second results of all Our resilience focused of a unique our vertically complex extended the solid our another business our of across strategic financial aspects strong macro exceptional navigated model We This of our to execution through quarter business.

times advantage positioned an our to to ability much architectural quarters, tailwinds take superior recent given unique attractive we've at quality better glass of As the than highlighted ever shorter in remain business, our value. with deliver we products lead to

This residential revenues, evident our organically is quarter. in which XX% grew the dynamic year-over-year single-family in second

to positive As remainder we share expect we our trends trends solid our look innovative gains, the market XXXX, of products. main our in markets and demographic the to marketing of

I X, many discussed to is points. structural to it Slide but our us continue important advantages times, emphasize for On have key these

and our capacity macroeconomic differentiating high-return automation Our during in competitive one, allow advantages are: upgrades. Tecnoglass benefiting business and are these unique challenging us plant investments to number factors times. The even thrive to

to glass dependable Number two, choice. with X% low Number aluminum retain and talent input Gobain. employer revenues; model solar raw costs of relatively through of hedging an turnover a sustainable people-focused number achieve and on-site of stable power our cogeneration quality four, supply three, five, St. including Number keeping of under natural gas. through transportation and energy power as JV through culture and on costs a

main for the to year-over-year multifamily and of $XXX.X share increase in single-family residential million drivers our residential Turning revenues growth Slide was key additional XX.X% reflecting the revenue multifamily markets. positive Total market X. This are demographic double-digit revenues benefiting revenue, on gains second commercial and as our significant led in geographies. by well largely in the increased quarter. a activity as trends growth from record commercial in to single-family Both our our

at EBITDA the record quarter. second prior margin XX.X% for compared adjusted the increased increased second to XX.X% second XXXX. to EBITDA XXXX year compared million, to EBITDA Looking quarter $XX.X Adjusted XX. basis drivers the Adjusted quarter on points the in a million XXX Slide $XX of quarter of of of

a profit representing the to prior a gross to year million, of representing in margin gross quarter. margin. gross quarter $XX.X gross XX.X% This increased profit XX% compared second $XXX.X million, The XX.X%

expenses in and compared million, dynamics higher commission a Improvement pricing the automation of prior gross operating greater higher favorable and with well margin of sales, corporate sales, as result increase $XX.X to the support mainly leverage quarter, related operating on higher million increased efficiencies as shipping year our SG&A in prior was larger to a attributable reflected the to operation. costs initiatives. to $XX.X majority as

revenues, quarter total As improved basis second XXX points XX.X%. for SG&A a the to of percentage

trajectory on XX.X% to to in on on market, lower-margin over to generation cash gross and profitable shift margin to quarter, a that installation residential the significant the in improved end XX-month structural increasing our related work. have the strategy second where the gross The automation calls, continued perform into XXXX. compared attributable margin do the diversify XX. structurally our our at upward shared operational that basis, and of not average past time teams sustainable we mainly more margin margin improvement trailing to XX.X% end Turning of Slide of On an a an improvements single-family namely we is into and to initiatives business

we enhanced structurally still X,XXX basis expect gross to variability normalized quarter-to-quarter. see since margin our by from do While points XXXX, been some over has

guidance As sequential achieved set quarter, the gross based was call, several margin first compared we prior factors. in quarter margin record of year. margin discussed basis On normalized second for on to result quarter gross of a gross the in XX% to the more on the first retreat the earnings the the was our our

was of costs, half labor, as which attributable well large professional affects fees, costs a sequential utilities, over a peso, our appreciation maintenance Number of one, Colombian decline inventories. portion as strong the the such of to as

macroeconomic sentiment, levels a country-specific to year. current from both we improved and peso for the expect general rest perspective, around the of the remain Given

mix that customers will and revenues. us expand the ensemble our more gross point. two, margin aluminum afforded the framing, glass factor stand-alone architectural I products, namely has come capacity recently impacting margins The fully Number to on that next online carry than of product windows. was lower sell ability the sequential which extra

our of glass windows, constraints, solutions finished business. were to for offer prior generate aluminum highest range very ability production a and a integrated and margin clean The to is of customers wider which new revenues. getting to our overall absorption positive products capacity allocated Given our capacity of previously

factor final competitive sequential more margin was The affecting a gross marketplace.

experience Although particularly this we residential. in modestly did competitive a single-family than less much more factors, the other impact two pricing was environment,

of to product mix the diversified the year. margins current the will full now XX% dynamics we remainder around in the look for margin balance produce range levels year we year, peso, level be to more we and XXXX. the expect a gross gross Therefore, the that through As competitive the expect of normalized of the will XX%

May limited been fully XXXX As which mentioned timing due for quarter, expect entities, in our have of operations payments tax second earnings now from cash the to we on which Colombian the was the the call, entirely paid. income

tax annual from the year-over-year. $XX flow Excluding strong remainder at of very operations was and up payment, approximately the million cash

the of Looking stronger payments we the absence in be to CapEx. back income the and tax these half given generation step-down to of year, expect the flow cash

improved sheet Now Slide on balance our and looking at leverage XX.

the past several taken our fortify years balance We over sheet. actions have to many

our left weighted growth our by flexibility under initiatives, such has addition are debt installed currently the lowest return to XXX basis XX% other our improved have to We XXXX and rate points and significant rate agreement. financial to capacity. cash the This execute shareholders with interest since us in at over interest Tier as average

LTM last quarter to at down our X.X-time At time near net the leverage year. debt lows from record adjusted quarter end, of in X.X ratio second stayed EBITDA,

committed June of As facilities $XXX had million million, total liquidity in $XXX balance our availability revolving under of approximately resulting $XXX of cash of a we approximately and million. credit XX,

to stronger the to substantially value driven those dividends into are On When cash strong to returns profitability On validating plus and strategic metrics three comparing product shareholders. ROIC our U.S. Slide driving in to XX, meaningful driven have our business generation we step-up past approach our returns. have building ROE average, delivering years, our committed returns shareholders, and significant on flow peers, the reinvestment returns. further to our over higher

capacity upward and Slide with a As additions positive, remains of for our you recent and can of to revenue. the on billion adjusted lot XX, get see runway annual up EBITDA there $X of growth is revenue to the trajectory

We are to as as in of ability confident years achieve ever exceptional our many growth.

an far so strong our we to Based on improved through moving XX. have Now year-end, results outlook for outlook and on Slide visibility our XXXX.

$XXX XXXX We for now XX% outlook expect the $XXX year outlook We range growth. of revenue end of represents low in midpoint. organic to the are and of to the full be entirely an revenue EBITDA our growth increasing This both adjusted million. million at

sales EBITDA to the on XX% mix to anticipated of of revenues, of these for adjusted representing be full the at million and midpoint our cost $XXX Based range range. million, year expenses, growth $XXX we and our the outlook, expectations a expect in

discussed to to XX% in earlier, gross XXXX. margins XX% we expect I full As range be for the year

year achieve In growth significantly we first second implied reflected experienced the the growth to more EBITDA half in relative regards This half revenue results, in for second and cadence of half. adjusted of has to to the metrics. challenging that than the in comps full expect both is XXXX, we the the

timing step the expect of the picking quarter up from quarter. fourth we schedule sequentially second Additionally, projects, revenues based and down quarter the in to third before on

the discussed, to for the flow Overall, rest given seasonal are the previously June. very through and we best-in-class quarter, of industry-leading of our to and from us effect second tax are strong platform customers. cash continue the year, annual been flow be our clean As and cash will allow generating free CapEx operations payment in our of the the operating expected that integrated results for completed service majority having budgeted confident

markets. capture efficient With high-return product latest across markets positioned see attractive our our positioning strategic structure the in of demand our we differentiated end and remain offerings, well geographic we highly to investments, round cost

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

Operator

[Operator Instructions].

Tim comes go with Our Wojs first Baird. from question Please ahead.

Tim Wojs

kind the you're talk been kind bit first expand with seeing, brought And environment a morning. pretty just that can Maybe question, you little of is overall I guess just that of mean, you're types strong. maybe little a you backlog able Good I guys. on, area Hi, kind on bidding projects to if quoting. now? capacity just or Maybe about that still geographical bidding you talk have bit about of the incremental the the of

Jose Manuel Daes

good. Well, what we're for some seems and Maryland Texas the the down region, Florida, in is areas there, to York, quoting Boston a quoting seeing be getting not coming past, is California, are many going still a we're depending in seeing at moment example, that along the really quotes country like of but of strong lot we're New on rest going the and

Tim Wojs

have I from you and a any type you I delays seen, financing seen that bids a guess, guess or the And funding quotes weakness I perspective of from of actual mean, I kind of -- perspective, or have kind mean, of to underlying process. -- kind

Jose Manuel Daes

interest of are coming South very the it to to condominiums for prices the rentals. rentals make But selling of to them -- coming so high-end down in no sense being builders, the of We and are I building plus sense the that speak example, it for excited because but do construction are be condominiums, make -- couple Yes. in that very then down. the cost well, people rates it. delayed high because are the will Florida, the concrete. still weeks seem to seen I again are build I the that have about last mean doesn't

Tim Wojs

And guess, on Santiago, gross the Okay. just line. then margin I

are a pieces would it a phases where of and from sequential of buckets year-over-year of of today? there of that the we're expect Or peso the that move of appreciation that three kind of basis? at kind you year, kind face some just either I kind think in of around? outlined, the mean, mix Colombian into like to on Does you kind as product things As half or stabilize back that and you about kind the the kind how

Santiago Giraldo

Yes.

for for when So, and possible. business. mix FX if that up of we what gross you XX%, we after the year, recall, implied think to basically still the And said of margins Tim, that stabilize we rate is were guided QX, we coming normalization from to accounted going XX% the which full

the at I the also positive And happened previously. do are more that If currency trends, was that with most with macro world. were has in country-specific the guess FX rate, than what revalued trends peso you but the look they Colombian to

seeing that and the that's how year, for And we're forward. rest the has we're of projecting going now peso stabilized the

the back have more bit day, a at you sales So, stand-alone of it's product kind into peso the if we XX% end the in of already installation year. new range And implies of at the that XX%, today. where that rest of the the little to is

which here, of related with going mix of in revaluation business you if the the we're the being all is of really mean, forward. I peso, at moving pieces cautious the to So, look

we we So healthy mainly a yes, the the able trends. factors, perspective least those the expect what we going and two on rest in QX, were from at it's to depend of to expect to way, achieve but revenue continue

Tim Wojs

Very in you. Okay. hop Thank good. I'll queue.

Operator

Next Stifel. comes from Elliott question Please go ahead. Stanley with

Stanley Elliott

about good question. Hey, talk flattish basis. a you Can a you it's on sequential mean little I Thank what I bit seeing side? surprised. for bit the a residential on the was you're everyone. morning

You a within what's of guys have resources, residential lot put us Maybe in with there. on a help markets? going capacity the of lot

Jose Manuel Daes

beginning market, like residential products, market Florida, because new of expansion did see we for new are on if after very are we lot designs, it's we condominiums of especially mistakes and the to the make pressure then so a the that way shipping, change of we the window. after and that insurances we putting a people -- do we was we the with learned small market, gaining grow -- slow the outside the that grew to we market are at Well, new the

lot residential we But see level, growth, especially no growing because rates. it going of needle. the the see level, has interest don't a strong here keep we're is to grow. very and going little believe in to stabilize strong slowed construction in Florida but down I because side We outside a by So, not

Stanley Elliott

It year. looks segments Am sure I I that holistically. back implied make kind both to would the indicate sort the revenues FX getting the of second thinking of involved? in just Maybe like half was of kind the want of that some I of for flattish guidance correctly? there's half about

Santiago Giraldo

we is residential because at No. are wouldn't dollars, significant U.S. here know. you make guided of had a for FX in revenues if what just our difference as very you really we X.X% But XX% look you sequentially, saying with did guided this to QX there's step-up much be which going in QX as line. a I mean saw we had quarter, [ph] the XX%.

there today, was have on And rest of line sequentially So, step-up orders the saying. sequentially. a modeling based flattish is should way, that be Jose the way this QX, in that it we're the with what was of we kind from that the out

And have the also, comps half much year for 'XX versus we the tougher year-over-year 'XX. of second

side, will kind resi see some flattishness. the So, on you of

On the numbers and going year we're the the is 'XX the basis. come commercial of year-over-year in last year, on versus from the modeling I two that on growth second half the growth top-line those where we And second and believe mainly side, XXX%, increased quarters we half. growth are of that's seeing XXX% respectively, the did last side. to

Stanley Elliott

growth a genesis at kind multifamily guide? year-over-year kind probably Right. the basis. guess commercial the side, of midpoint of I But that the of the on looking was to of to get the kind on like Is that question. of you're mid-single-digit

Santiago Giraldo

Yes.

comes, a first the half was our that the second because temper makes of you're growth would looking that, original stronger. back sense more yes. much, just year half for And bit if just you of If the much little obviously, year that the guidance, into

the the case. original to that get guidance, would to you be expect So, to

Stanley Elliott

Okay, guy. much. you Thank so

Santiago Giraldo

Thank you.

Operator

& from Sidoti ahead. Company. comes Romero Please question Next with Julio go

Julio Romero

specific delta if about Just of components million? you maybe window versus the facility between $XX is expansion $XXX the you the at or all million the the could that morning. $X Good expand base product Can lines part expansion, expectation? above incremental billion installed what make up Are talk on there the expectation?

Chris Daes

and If we taking add it Well, it but capacity those the will believe them that higher. consideration lines at to glass sell windows, $X depend as are If everything by are September. into $X it that billion. even be extra will the can some into put beyond will really capacity, might installed and least made way on or to go going in expecting I we used. that, we're after them of we have finished be we how aluminum, can products billion

we in are position. good a So, very

do I were this a have on very We not good is really we XX maintenance a and there use day, working expansion seven every uncomfortable -- believe equipment, and that them week, needed days hours to to because and you we day.

maintenance. doing now better So, we're

we we up. are have the many projects have that for ready extra We the and capacity, coming

Julio Romero

five be before? about competitors' weeks product Very talked then helpful. of what's sense lead times several times lead were on And at? Christian, you your times lead the lines. And those of would where What

Chris Daes

to capacity. And be time, five used can we're have makes even -- have more. XX down same we better have deliver we we still same at is the and quality, they Well, competition to weeks, And it better XX XX time. now a us a which the product, bit weeks, little weeks, around we bring our We weeks. down can

gaining will this time really all going be to are is optimistic talk inflation and and we're know have about interest to many but ever. that that, and are -- rate share. our a XXXX we going the so that think, So, good I best not the market on because year there be I -- we variables that

Julio Romero

helpful. Thanks Very very much.

Operator

with James. comes ahead. from Josh question Raymond Next Wilson go Please

Joshua Wilson

would it Thank question. on early like your you for And taking morning. 'XX? CapEx Could thoughts total latest what your what budget be thoughts will give any look in for my on you 'XX? Good us

Santiago Giraldo

you executed. lot do CapEx, a we to year-to-date planned look of been the have what if at Yes, has

that 'XX. by $XX would to million down absent in that the -- half, it $XX $XX I half then And for or going imagine everything at that projects year. I the Based half would to bit next total new any be is on less than down Christian to stepping to down, the quite it's to required held depend grow. backlog least the the case. for base of idea on the than that is year. future absent and expansion pipeline growth, step say, is million to continue the equal, but step -- million discussed, CapEx would going second But 'XX how a So, we installed with less end capacity for up

Joshua Wilson

Got versus showrooms could the about the has your been far it. And you what thus talk productivity expectations? of single-family

Jose Manuel Daes

-- showrooms Well, are the showroom yes. working very well.

We have a find And new I but a lot to before, products. that sell to has and of in. and that new there how we Every of because people we mentioned are have over-rush we products know ton market new coming projects want out as ship don't decide. that we then didn't

working clients. with So, the diligently we're

been shipped optimistic XXXX. believe are -- of reception new like very zones Santiago we landing said and projects. to have we're all great. And already about new have has next We the now the And I year

are faith we lot opening we're play states open on We too. And we in We doing have in have more we're right. we're and know doing. that going. showrooms. we what very And games. we of plan don't couple shown to We're a Texas, soon a West opening And more it where

Joshua Wilson

to would If future any had say whichever would on the what changed, one a not FX sensitivity today is guidance peso I if your changes? the could more just sneak to give been you in easier, us have impact,

Santiago Giraldo

it. Well, into back you can

where being strengthened the I year most so revalued about peak has is think the of peso about the to the XX% operating to margins. today, the That this it in currency being quarter world. impact based again, was on X% to or

positive to the were out So, up the into rest you back X% can of you of the with impact the way, rest way, a just of number. it kind if model impact our

Joshua Wilson

Thanks.

Santiago Giraldo

Sure.

Operator

B. Next from Alex go ahead. question Securities. comes Riley Rygiel Please with

Alex Rygiel

nice Good morning, quarter. gentlemen,

bit going a the You talked pricing in forward we should that think How competitive your environment? quarter. about of favorable of the light in about comments little about a

Jose Manuel Daes

because their ones of with see competitors, biggest prices well the increased Well, what doing some that we they our is not were low have that margins.

aluminum. have less somehow The we glass pressure stabilized So, the has on pricing. in

So, as be renovating market, is on soon houses people of see And a don't buying Florida insurances as we the that. a lot to interest any and pricing. a It's going we are the for in of and pressure strong just think, pressure stabilizes, I lot market, rates especially everybody. see putting on their favorable

Alex Rygiel

can you success about talk the growth having, driving the products, they're of and in secondly, importance then the new those And XXXX?

Jose Manuel Daes

of every course, I And example, Northeast, the Yes, as more different are products, heating. and market, looking has they're the control low. really on said, temperature coefficients in into saving for

we installation at few or that problems for the end. a try we design out, learning in we and the new area. is we few, So, very is curve, market since projects, a better But a see is and how are design the we to few ship products works it difficult how

problem we alone. leave the And we improved it then

feedback gain that that to a have us gain we're lot market of in going of a areas. lot makes believe We those

enthusiastic. very we're So,

Alex Rygiel

Thank you.

Operator

Instructions]. [Operator

Our Brent Please go ahead. Davidson. comes next from Thielman with A. question D.

Unidentified Analyst

question. seeing. for accounting Thielman. provide for business U.S. some the for And I'll part, John Brent of on is type in on residential in the other the Southeast, provide just in the up which is progress second And you're an two-part This update Could picking the the in start Texas? of expansion with residential? color strength the markets your you

Jos Manuel Daes

with just I Houston the the have couple feedback small in but And like opening doing Well, sold not rental of showroom we're was feedback, we And before, starting. getting we're a well jobs. Texas, said because soon. good. in us a We're is

full So, take of to and and we speed Austin on we're crazy advantage some want like But of Houston going that. that. and Dallas building are

there few a before, -- great. a mean, and slower South we're said but today, from We are to And been we for market little reception I like us jobs, of Carolina the because I which has exploring Arizona, Northeast, the done California, on are have a is up, lot new. explore

So, we're very happy.

Unidentified Analyst

with Thank -- U.S., or shortage? labor have you thinking any you. have navigate revenue, And your seen construction the able been so, And regarding on to of if impact labor in work could shortages business? Florida. how in you you Have

Jose Manuel Daes

Well, have buildings I on have I end our in see up will not that that jobs going high. the end. we And have no our the people. actually, -- all seen shortage with we we mean,

We have not experienced that.

Unidentified Analyst

I I'll Great. back appreciate that. in. hop

Operator

floor for further turn Manuel There over closing at Jose are time. I like this to no Daes to remarks. questions back the would

Jose Manuel Daes

Well, for thanks, everyone, participating.

enthusiastic poised what company's keep they giving our you are and the very that future are much. We deserve. I believe shareholders about and we growing Thank very to

Operator

This concludes today's teleconference.

your lines this You for participation, time. you Thank disconnect day. at have great your may and a

Tecnoglass (TGLS) 8 Aug 232023 Q2 Earnings call transcript