TGLS - Earnings call 3 2023

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Operator

Greetings, and welcome to the Tecnoglass' Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference being recorded. It is now my pleasure to introduce your host, Brad Cray, Investor Relations. Thank you.

You may begin.

Brad Cray

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

Private growth are are business. from affecting subject performance, meaning acquisitions. These in Chief speakers Chief Litigation and/or are to Officer, operation statements for this those Securities remind risks Giraldo. by call, Daes; the Chris everyone expressed today's current in of due Santiago Actual Tecnoglass' information, Our are changes and Chief other and Officer, and like uncertainties future Executive vary except Operating future circumstances. regarding or changes Financial competitive of in for implied future based or forward-looking and business, on I'd herein Act in economic, uncertainty José results regulatory Tecnoglass' statements the XXXX, Manuel and Officer, that nature the statements Daes, within statements to call and to material Reform matters historical beliefs factors discussed including the may expectations a of financial

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

to turn #X. the beginning call will Manuel, Slide José now I over on

Jose Daes

thank Thank today's for you, call. you, on Brad, participating and everyone,

the our resiliency are We underscoring in another volatile macroeconomic strong to of business environment. of the report yet results, quarter pleased

quarter quarter growth. of $XXX.X our entirely record Our a million, revenues of marking year-over-year organic increased third to XXth straight

our quarter the of by a expanding year-over-year main commercial commercial to again increased multifamily X% even and XXXX, was business top Our to third line $XXX.X of the driver comp. Compared multifamily in year-over-year XX%. revenue million growth, tough

a healthy This to high demand we of increased innovative geographies. gain single-family at increase from X% challenging We in for million year-over-year drove in record continue year key commercial demand, our record key and and an overall $XX.X quarter in highly geographies, activity of our as prior $XXX backlog to see products Sales residential a share a end. tough million a grew market both macroeconomic products despite in conditions. of commercial the period comp to

single-family residential the Compared to quarter. XXXX, revenues in increased XX%

non-cash million. XX%, business peso, the we a our our Colombian at flow proven previously implemented related Looking by has as industry-leading we single-family our the EBITDA third disciplined cycle, course operations management our margins high-return residential line which cash in end growth Year-over-year, shorter appreciation to were bottom margin adjusted $XX.X strong impacted reversed well cost above the our of controls quarter. which an enhanced. from results, working the and produced facility partially continued to attribute since as drove cash of of quarter the a effect capital

line million we is XX shareholders. commitment XX% This cash our to approximately with program value since external share repurchase return midyear. executed With of to in generation, our

attractive on announced market. windows giving into the our such is position also entrance capital us flexibility as and opportunities, strategic strong recently growth the Our to capitalize vinyl

return and to move our capital. this on a product expect investment innovative high of provide reach We the widen portfolio

the our years. of have annual coming a significant We invested already in anticipated required to business $XXX to CapEx the add additional million portion an in revenues

and performance record of confident ability as value cash continue as ever shareholders. in delivering to proud are summary, above-market flow our In strong to returns our generating remain we of track our and robust while

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

Christian Daes

Manuel. you, Thank José

our global of being company as long-term Slide market. stakeholders. relocation to sourced In and U.S., Miami, we and announce organic it U.S.-centric into by from our we with move U.S. headquarters will the ] in geographical . [ fostering growth this to that strategic look has the far with to revenues customers, #X. partnerships to aligns well pleased even received employees the were October, to Moving forward long-term penetration been Jorida. very continue strategy the become to continue our other XX% Please our aligns so and This fuel over strategy. our of move more We

in the quarter, results our activity bidding continued momentum wins project commercial Looking business we positive quarter. multifamily during saw during our at and as healthy the

grew million. in in our $XXX key backlog a acceleration to environment, XXXX. the XX% Despite was high continue growth record interest trends second see of This particularly quarter rate an U.S.. year-over-year the Our the favorable we Southeastern of in in to markets,

stages that planning the the are projects on the wins business of of backlog. were hold New put driving the and previously during our acceleration pandemic resumption in

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

The past in opportunities projects. Our attractive ration seeing the are spot not the bidding quarters. backlog future, single-family of over maintain project positive above helping we XX trajectory given near our residential consecutive captured the growth strong X.Xx book-to-bill is ratio to signals activity our in also fully shorter-term

growth quarter to of X.Xx contributing another in ability our revenue into at and Our is to strong book-to-bill XXXX. of for demonstrated backlog our expectation convert end year double-digit

XXXX. on visibility us gives pipeline into projects Our

recent also the the residential which estimated an our through in additional represents and business single-family entrants $XX for XX% vinyl expansion showrooms, into We windows architectural of market, our market. windows see billion growth avenues

our us we additional into our our confidence #X. Slide as us showrooms give backlog to growth vinyl ability the market. of in to windows expand should Moving factors, share. The with help conjunction our in expansion growing generate These static organic significantly entry addressable and grow

taking our stakeholders. the to are creation, we and meaningful streamlining our commitment value all during for our generate strategic reflect relationship to moves the customers' operations returns strengthening our and Our accomplishments quarter

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

Santiago Giraldo

you, Thank Christian.

Slide #X. to Turning

During which the grew achieved the third year-over-year by of single-family X.X% to and revenues quarter, quarter by organically we XXXX. third compared residential XX.X%, record

ability of to a revenues on business and operations. single-family Our a grow complex located comparison, difficult verily strategically year to a is resilience prior model integrated environment, macro navigating the while testament our

to of pressures. U.S., We population higher conduct favorable portion broader a into benefiting the our interest helping Southern rates secular our business from macro of where are trend despite also are a migration business. These differentiate in factors we significant the

quarters, introductions. share the to base, upside revenues interest single-family market to in times highlighted low our broadening recent we our our and we've dealer product in see lead new As driven by

geographically market growth the for showrooms diversification. market, We and and throughout adding are initiative other highly soda geographies, revenue in our end new attractive expanding significant avenues provides vinyl

I touched on To Manuel like a point few key early. on into recent #X, Slide windows, our as that would and highlight José from points entry Christian to vinyl strategic

and During products. position leader $XX market, window announce estimated into billion our in were thrilled our an to the the window quarter, we and architectural market industry architectural entry which glass of an the windows solidifies XX% as represents vinyl

strong $XXX to have add incremental presence. made investments foundation of grow We in already revenues anticipated significant a vinyl the in to CapEx annual million providing an portion coming our the a years,

window range the benefits provide vinyl into Our our customers. Tecnoglass to of is and market expected a to entry

year-end, that And to with to an existing more This on attractive and current will than creates easier many performance, demos. expansion customers traction addressable Production doubles market. a in validates products. this requesting early market the capture XXXX distribution leverages the strategic strategic many products first have products given for well with orders both other preference makes produce delivered margin couple for thermal incremental customer move samples be ongoing a efficient entry end and trends and and we demand aligning dealers for our orders expertise vinyl base given have more sustainability vinyl and energy-efficient with increased our windows, in our existing many geographical for revenues. already product regions, we the This customers sell of weeks aluminum commence into already U.S. vinyl by technical

opportunities for this growth so end market. by and see We immense far are the in excited reception the we

the Slide million third to growth revenues, X.X% as in multifamily our revenues commercial year-over-year largely the share to well This residential growth Total of drivers for $XXX.X increased #XX. and led as market reflecting by gains. revenue activity, Turning was on quarter. single-family additional in increase

to noncash the impact $XX.X quarter. the million attributable Looking XX. EBITDA The third to or quarter Compared prior revenues. Slide #XX at related foreign in million change the Adjusted XX.X% to as million functional lower year XX.X% margins by operation. in million of commission was settlement increased for of of on gross of larger was support a lower the XXXX or charge in shipping currency, revenues $XX.X year exchange a primarily peso drivers the profit was on to partially costs corporate quarter compared expenses a dollars. $XX.X XXXX, attributable to partially third but SG&A with offset nonrecurring to quarter, SG&A prior the and offset in the by decrease $XX.X and

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

in profit This the gross representing to The margin currents functional our gross the attributable to change gross the of in the unfavorable margin. mainly was prior of $XX.X depreciation impact. XX.X% in profit quarter. and reflected significant a point non-cash million, XX% rapid was gross year Third markup XXX million, peso. a Colombian inventory compared margin This representing basis quarter of $XXX.X a year-over-year FX due gross to

peso, accounting the a P&L given Colombian the related subsequent second peso. Colombian actual third cash and stronger Specifically, the that purchased dollars. took and had the XXXX the during of place inventories sale in through the flow effect currency of XXXX a These during currency from translation ran much U.S. at weaker the dynamics no quarter both at quarter functional inventory purchase to

of paid Colombian do Separately, XX% the in our peso. expenses cost get and approximately

an have So basis the margin points we to revaluation, recent XXX of impact additional year-over-year. currency XXX

has since through of partially for rates year-end. less Looking an average allow been on the quarter That course end. have and variability inventory the majority forward, should down FX results worked accounted impacted reversed

XXX FX full now year-end. expect peso-denominated XX% of against year around through to produce be cost outside the and the and from XXXX. XX expect with gross effect expenses to the we volatility year FX will remainder margins levels XXX XX% Therefore, We range point in to the basis of to to from comparables for gross similar significant margins no normalized

on strong cash and at looking Slide cash exceptional cash bringing trailing of flow flow Now, leverage operating million, of million. quarter, our #XX. to $XX.X our improved third a the record level In flow $XXX delivered generation we XX-month

previously the payments quarter, CapEx facilities included of million, future also market. previously had infrastructure purchased vinyl disclosed expansion. During enter a and in capacity the which for land investments the to we operational of for significant capital window included $XX.X expenditures potential portion

strong We largely expect in through fourth free expected quarter. cash expenditures given continue an to in year-end, flow the capital decrease

our generation in and working impressive significant business. made of to Our capital careful financial has reduced us cash value drive management, additional possible profitability more providing interest flexibility expense, higher been favorable revenues, with by mix our

the This and LTM repurchases $X.X level XXXX. million from vinyl end, to we down ratio record with market the net includes million to share prior of our and under of ended the leverage adjusted $XX.X additional year investments total, repurchase the quarter in quarter in November after current X, into a of returned $XX $X.X in highly In shares debt share window X.Xx the attractive our as low dividends X.Xx enter repurchases. quarter. authorization during million near remaining EBITDA, repurchased recent an remained million quarter At approximately and cash

our return availability credit million, our we September and financial significant As us under execute million, shareholders. cash in cash to of $XXX liquidity balance revolving resulting facilities and flexibility invest XX, a approximately in growth, $XXX had total to committed $XXX of of of giving million business

U.S. #XX, returns driven have of our substantially validating on Slide flow and ROE average, plus have cash comparing dividends returns. peers, our our success approach generation, reinvestment shareholders. strategic I our like shareholders, our our On metrics further and profitability in average returns those returns. reiterate meaningful value into generating over years, business significant driven ROIC to would product to building step-up our the higher to On stronger strong to the When driving for in X past

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

returns. record track in maintain above our We are growth our market as and confident ability as of to exceptional ever

of our of moving our Now are we through outlook year-end so our revenue. to to markets, $XXX outlook at of million timing now growth residential entirely and our adjusting outlook to far Slide the We deliveries expect on in strong on year commercial midpoint. XX% in revenue XXXX range for be This results $XXX the organic and full XX. Based represents million. expected the

a impacted carrying to at in million, into higher growth has of midpoint we of delays EBITDA of by updating installation quarter the While maintained for of fourth revenue $XXX and our be impact for the of the foreign expectation of been the million a the expectations aforementioned timing range. strong for mix the the half adjusted to growth as order invoicing of currency, for delays, backlog rest Accounting the has of some XXXX. XX% the a quarter, the representing result the during year project deliveries first customer in $XXX a mainly trajectory, range are the our third unfavorable

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

operations the to of remainder facility As flow the having cash automation, year, are capital previously and flow discussed, cash expenditures majority the vinyl strong expansion expected free of investments and be completed. related to been related for given from

summary, In pleased year-to-date. our with are results we

residential in of double-digit of traction. and our facility expansion year cash with vinyl our has of produce in incredible in revenue single-family and another windows, latest commercial opportunity the growth confidence completed continues ability in and generation industry-leading XXXX. significant Our gain multifamily to backlog have With to enhancements flow margins accelerated we projects our round strategy

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

Operator

Riley. Our question B. Instructions] first [Operator Alex comes with from Rygiel

Alexander Rygiel

questions quarter. very here. Christian, nice José, few A

this relates I look growth little XXXX, both? you a understand bit Is towards EPS or it And revenue residential do specific As you're at here? more or you double-digit guiding commercial? Can rates be within how to and the growth.

Jose Daes

Hello.

Not or in looking the And very both is very minor a a to increase. a of line know high, have growth hope digits higher going backlog but double strong surgically going was line at we're then there digits. with aluminum. we [indiscernible] the and X X are now commercial power everything we We areas and be double in we line, is new of to because years, because the with is

a expecting big residential So in and we are commercial. increase

Santiago Giraldo

is a top as just Alex, for projection follow-up, the line revenue.

that to the down obviously. level, We you'll the haven't EPS after drilled get next call, but get sure to

Alexander Rygiel

to then -- are strategy, of or market as the as profile maybe product residential the the aluminum vinyl it well? And of of be new your traditional secondly, product after relates the you to versus margin more R&R Windows this product. -- do talk you And vinyl about is going expect that this sort an

Jose Daes

[indiscernible] sales mean are of nationwide line about the are is of And goes of most the are margin north, we everywhere sales vinyl only XX% of the today. The not aluminum. I same. that and the for the XX% the from vinyl. residential vinyl

we and high commercial the growth the expect high we vinyl on So expect aluminum. the also, side growth on of very

Operator

your line Sam, live. is

Sam Darkatsh

Darkatsh This Raymond is from James. Sam

So if three two, a I couple questions, could.

bit you project can XQ delays a bit is First, put little And to in protracted sales, delay a little quantification you impact that to more a is the what on be? also Santiago, why it a fourth of this that? into that might more be those going quarter delays Or or color delay? this of of color EBITDA customer in terms give as than XQ little cited

Santiago Giraldo

numbers impact, closer and like. see as question take José and so market I'll if the then with much you to EBITDA follow the to the is and let I'll up why

Jose Daes

are projects was main delayed. $XX the Yes. Well, lot reason that the months, around delay month, And a million X, commercial X for because banks we're a lending. of not

I are the Somehow, really, the and I going again keep still ] next really they projects backlog going is we work mean, commercial believe [ now it pipeline. have good and lots and more on the opened to valve year. and hit we same getting all the of

Santiago Giraldo

José $X on the follow let's to leverage revenues million the to, our costs given about the that EBITDA, -- in Essentially, take equates to million, the $XX numbers $XX referring fact million which midpoint that are to I'll take expenses if XX% of up $XX we So with then. operating the to you million is manufacturing XX% that get $X fixed about million and costs. of

So if math, that $X $X do moving into is million the equates about that 'XX. you to million to

that, 'XX. I'll José timing, first probably half but the as far reiterate revenue As we'll say, that let of I be would in realized that's the

by call, that revenue replaced on revenue And installation being the then lower heard as carries much some some of you is that a margin.

having of the to revenues the XXXX. in that. not mix, about operating is installation million coming when that seeing leverage from is brunt So the But based of the on about effect EBITDA million you're into those the we're $XX impact $X on moving

Sam Darkatsh

is me Santiago. now, Which question. around since right some of in specific color fourth leads implied Thank be more bit terms in wide? to actual expectations Can and There's gave perfectly the a in for my you the margin lot parts a margin of you range gross might gross though really you what moving you, next be guidance the think normalization quarter.

Santiago Giraldo

year to XX% implied XX%. the for range to the equates So margin full

be high to would rate range. So just be a high be type continue should mix out for But that a margins on in also kind the the of whatnot. depending the where about there's 'XX, those normalized impacted revenues deleveraging that quarter run sequentially better It's that are moving from guidance QX. XX% obviously, and pieces On moving gross is by are continue basis, you in X. or run QX would I to going that would on XX%, new say XXs QX rate But than forward. so

Sam Darkatsh

the in vinyl obviously builder PGT Southeast you're share Could And orders seeing color in because a quarter, mix. right different first you And them different family. and R&R you got Florida. out some the and single-family now? market against was you Florida question, lead it's it time versus and a looking not last give like perfect are comparable and different your from so in single what my times didn't in in standpoint the mix what they've a as this But to market Florida comp a compete

Jose Daes

Yes.

are made the have big penetrating We we market. gains.

XX% seeing in or Southeast. least at year-per-year be we're a and cannot steady gains have the market the XX% now. that share growing what But we Now is

Now the we we're good we going have everything icing on speed go with cake. full And as nothing, made where we Southwest, have north, penetration. is where the

Sam Darkatsh

So orders all in right rate growth year-on-year Santiago, look the if now like? you family, at look single your what's

Santiago Giraldo

in earlier saw quarterly said Since in the were that stable we well. basis, revenues the that residential and year, year be a have throughout to the you QX somewhat on as going

different So XXXX, I QX, is not saw today, say what based than I some once what with pickup into on already a it's going the actually invoiced. that too of expect you vinyl have would we be stable to getting anything in would product more Sam. somewhat

heard probably year-end. earlier, first is next starting delivered production already in that you As by week orders with the

So you capture that in and QX QX, that on. will start of so benefit the don't necessarily get but capturing you to in QX,

Operator

with Baird. Our Tim next question comes Wojs from

Timothy Wojs

clear EBITDA guide. Maybe just on I'm to sure make the totally

million So guide about prior of lower. is I the midpoint guide think midpoint $XX the maybe of versus your this

or pieces from the margins Are dollars so the of So the project some hit you've of QX, to higher $X revaluation of the gap? kind million million to bridge from and in that that from then mix? X pushouts kind a million those $XX $X about installation got gross million couple about

Santiago Giraldo

are -- previous you gave QX? Tim, Are we versus the guidance that sorry, talking about you during

Timothy Wojs

Yes.

would midpoint have $XXX million. prior your been So

million. $XXX it's Now

between moving make sure ever And I understand the to so want I completely those just items. pieces

Santiago Giraldo

that, much it we was results of results QX, not QX to just guidance million, the mainly inventory So resulting that you math well, million to non-cash, the of is previous QX more is operating of QX, do from as because mentioning, revenues some gave the obviously million, effect out, all mix then have of So and that that's right? is of difference the after pushed and revenue, that QX. for from actual related And leverage you out the out $XX million at $XX that on $XX you not million markup that asked new actually EBITDA, installation below that guidance that from as else So you came million. the when get going is to revenue from about mix, because hit being to take right? question, the below because the revenue revenue, $XX is you as $X guidance the between Sam is some if than remaining $XX as $XX the previous was take guidance about taking I look right? revenue if the if of the anything down some coming million, . But

from operating million $X it's So million leverage from essentially about and $X mix.

second If I you XX% the do the think right? the now at the for year. QX, The is math, previous for have looking take full the you about was of midpoint you're mean which mix. out QX to XX%. it half midpoint I

Timothy Wojs

Yes. Yes. Exactly.

Okay.

doesn't I'm And both of then are the the should realize kind add. timing-related Perfect. next recur to what right? going and year, is These is what you pushouts items Okay. revaluation

Christian Daes

the in will that XX that far, it and by inventory, down back has invoice some because believe so year-end, had and latest. to the why supplies actually last the at months. that COVID, during obviously we we be always revaluation, inventory still That's good. up. at lot will it peso But price The for X, in-house of we we're We hasn't just which clean then, [ up all X last came we had rate, -- this be which rebound a we X,XXX current by our year-end, bought is tradition. X,XXX been suffer Since ] ]. Obviously, all to will moved XX% all carry clean of and But didn't we eating the higher we [ out will days, is inventory. go much

Santiago Giraldo

completely more and sell a follow to is because the those we wanted the in inventory were during them Tim, peso, Colombian all that and of issue. just impact already. dollars purchase right? right? QX been currency revenues having are leverage it in timing projects because a on purchased Obviously, that So going QX the highlight sold as essentially the just that in you you the operating of effect is any to are inventories being So being It's function are the already, up, have 'XX. a you not that timing inventories shouldn't up are getting They're that those functional non-cash Just It's cancellations. issue dollars. is well and pushed out into

So it's a issue, said. as timing you

Timothy Wojs

Okay.

how today financing of you Okay. a last you the with of quarter. Very you roll some are starting last see bit curious maybe It you constructive on the were months this the maybe sound good. just I piece bidding? the does Is kind just And market that -- then And like of market guys more are market. to quarter just banks? on because guess, little just the better than ago. through I'm actually seeing So X than

Jose Daes

they last don't has The lowering so. steady. of biggest then postponed next subsidiaries good but the The haven't And first invoicing and PGT see the been $XX and then the that but I and pricing -- to simply, the other second done the million their we competition prices pricing revaluation, for have competitor small and peso been is had prices of because I mentioned year was less problem the quarter us. quarter. quarter

aluminum. pricing next steady costs year, and a have have we So in we lower

So next par everything should again year. be

Operator

Stanley next from Our comes with question Stifel. Elliott

Stanley Elliott

before double-digit I us build around into year on starters? I apologize little bouncing you had got for next with revenue the top if for help line bit. this asked the a Can growth

Santiago Giraldo

breakdown about Are that's the as to how spend? you talking composed

Stanley Elliott

Yes. Roughly, kind are trying going the to for get to that. get main to a drivers to sense be just of what

Santiago Giraldo

should our executed show the do graph highlight that right? of we that's take typically, that to following to obviously So you and really gets you visibility. the executed, the that of that And about do the sticky why wanted slide. the that, months, gets come on that XX what things and just reported, XXXX, know you the you of for over with right? side And right? backlog math X/X math if Well, on lot gives we latest a up that you commercial if is backlog be

obviously, product, on no José the year, other and reiterate vinyl the I'll this these you where on have have But residential opportunity this hand, when you we new have the revenues And single-family showrooms side. let of now operational for to also doable. 'XX in you want don't where confidence XX year next I no provides know, revenues very you that is to achieving that. growth if José, have add double-digit that months, kind

Jose Daes

they Yes. Well, before, I new. and very like lining mean, happy next the people is year our are for relationship. a with get of vinyl I said with up anything we have with that we lot product our service,

give you me example. Let an

$XXX,XXX I month around a buys vinyl of clients He $X million month one in a our buy aluminum. from Orlando, mean, in suppliers. Somebody

to him, for buy that ready many, are we -- everything actually many wants he vendor. little that we And us. one clients there are like turn many, today So to have very

selling the anybody to of not we're have now. on hand, we other nobody Orlando, north Now

let's all with we City, know. line Florida. mine can everybody we about Panama only in Jacksonville we [ really because New penetrate that's York, the as the I is Jersey, New And now see mean, our say excited ] -- So things. Carolina, Milo Texas, And

Stanley Elliott

there the where And picking since like kind I'm beginning have to the now goods were of in August to inventory had just not the second back most cost purchased cash. then of of You the it is of understanding sounds curious, Perfect. most to from Did happen? something revaluation. you piece, the to of quarter.

Santiago Giraldo

that flew up more We expected. originally this is the function having inventory more And happens than ended nothing again, No, currency. then. the functional through of a QX

$X,XXX give inventory, dollar. about bought when it out we later, even you the exact and XX at cost So when XX, for was you the the XX I'll XX, X,XXX. peso per numbers was quarter average the days And the

because a just more more XX%, kind impact we period. dollar the worked the inventory that. expected. little of of But function essentially much of you running and how that all was it's being sudden, of going have ended P&L to by a as QX should call, non-cash was dollars out very function more a QX have dimensioning of impact on had it XX% during of But all the said So up than weakened we through in

Stanley Elliott

lastly, the share to the repurchase see we the completing the then upsizing are for that and price point, some then think nice What And given is Board that at about where should activity. potentially today? plans

Santiago Giraldo

we an have available and opportunity Yes. original approval that of there, We to certainly XX% that still there's feel us.

to that we see to extent will. to So opportunities the continue we execute,

flow we generation be As strong. prices. we're think the return cash to CapEx that And our to is way that is that at the very of good lot this should it a way a of we now certainly way the shareholders, out projecting today's cash said, especially

Operator

from question Romero Our Sidoti. next with comes Julio

Julio Romero

first guess I my José is for Manuel. question just

what scope partially dried little project On customers customer or banks delays lending are reworking bit? in driven the are a those why all? your saying And maybe the and delays, at projects by of at financing customers stopped project changing for their order least terms up why the hesitation,

Jose Daes

for After it under delays is the XX% the the was we're have No, money main XXXX reason banks to asking other XX%. that they the XX%. have Julio. the And percentage increased the to XX%. to in XXXX, was XX% release the that increase Actually, for before now percentage they contract to

So that are on commercial today all are for That's side the ongoing condominiums. going. the projects

and they which interest. The seems more apartments, the for for went the numbers on up, [ rental interest for are car the Now ] met demand are X. payment rate

most that projects. all So of to been has the clear

had cancellations. any haven't We

I looks everything postponement moving. have going both for and Like sides next are said, We good. to year, be postponed

Julio Romero

I That's appreciate there. there. color it good

higher sounds And thoughts really to reworking to in guess standards have it causing rates, trying just anything hurdle rates banks. what nature customers guess, of the are any the terms hesitation at higher or any sort and projects. their the lending sort second like higher that or so I of -- are from or of I'm customers I is get of

I if little the cancellations, no but on is more good, could. color a mentioned You front, which demand just

Jose Daes

the postponing been the down on [indiscernible] high, have demand or still I in -- Florida, Tampa we the much who Mexico they in to selling now, South surprise, asked who when developers the lower is or serve The market. has been of don't But buyer to, and largest Brazil. cancellations clients demand from that that and are and refresh, my Orlando is the by end, the I

are coming on learn So XXX% before homes that track I of the cash. they people Mexican in There's And cash. travel they that hand, California. production the from lot A of their Texas here lot interest the Florida homebuilders, X% that's and good. Southern want And other -- to retiring of sales half the to rate. a take don't

steady keeps we're what also, surprising, most. is above up. or amount up. And the selling the going I mean, what's going So million $X.X anything

good. of that's buildings. mean, windows So lot I a in those

Julio Romero

a one-off Is Great. kind that do and Great. is quarter? SG&A Santiago, then expect just one lower the in And mentioned Good fourth trend SG&A. expenses. SG&A shipping there. on color how just of low you thing? commission me to And you last then for was to

Santiago Giraldo

we the in to the part nonrecurring charge of comparison settlement And QX That of was it. made XXXX then volume.

margin So with to more of installation, have you incorporate expectation And line installation, would much with gross on the transportation don't be QX. in you for that So quarter is in SG&A lower there. flip next side right? more that costs also have that the the is obviously,

would gross So for QX for it the to of be. But we'll margin to purpose, what are be be offset should lower able QX variables SG&A. having by some that similar impacting modeling

Operator

with comes Our question Ramirez next Davidson. D.A. from John

Unknown Analyst

time. your for you Thank

mentioned months commercial. -- the and in is look QX growth, cadence terms of the and like X/X over the vinyl the period of we -- step-up XXXX? in for remaining what how You does that of Can much is backlog, XX throughout

Santiago Giraldo

can the to family Just vinyl. of the look to on way with So at is the being backlog clarify that that Everything nor reflected X/X commercial that's not single it. you see related multifamily in something. is to the multifamily, and strictly side of X/X right? residential backlog

no So the to nature. single-family your very spot And that because vinyl is matter, no quick in included for very in are and in included residential revenues that question, backlog that second is backlog. is

X, weeks. and get out you X the in door So order it's an

intra-quarter. it So a worked gets of lot

you a all from see the segment. So what backlog perspective commercial to is of related

Can you that. to follow-up a repeat? had you Sorry,

Unknown Analyst

product thank of sort half know just are growth get Yes. single-family what what I in do was in 'XX? expecting of residential expectations you want focusing into the what I of clarification. you already first have and the there, the in -- to on sort of you're seeing not it's sense of first all, of I QX you for was and first half the but mentioned you just of I for a that and kind terms

Santiago Giraldo

into want our to process. 'XX in until go too will Well, many we're able formally complete we details to budgeting

So more you'll the call. after hear details QX much

projection residential, kind QX that I be expecting flattish of as to far earlier, was As saying the sequentially. as we're for

purposes, we you in stable they've as for previous would So the again, be look quarters, expecting quarter-over-quarter, that's kind QX modeling well. what at if of been and

related first really quarter hitting the second revenues not start quarter, to going of vinyl the this Again, P&L are until year. next

have in of So benefit you that don't the XXXX.

orders just projecting on current that based stable still we're to So be sequentially.

Unknown Analyst

Got -- And more. one you to any just pricing see that it. I ask pressure you any continuing seeing if are residential? Are in could

Santiago Giraldo

let take José that. I'll

Jose Daes

X%, seen I that major been No, couple like to is a prices before, vendors there their work. of compete. go to Only they get steady. Otherwise, said in haven't reduce has -- have by pricing any XX% order the we would

Operator

remarks. I for to closing time, turn to call would over the José this At back Manuel like

Jose Daes

you on are participating company. enough everyone, We about excited. we very the of for tell the Thanks, cannot today's very, call. future

increasing better results. sales the you to by give for are you. Our Thank next much we day and year. hope

Operator

does conclude This teleconference. today's you. Thank

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

Tecnoglass (TGLS) 6 Nov 232023 Q3 Earnings call transcript