TGLS - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Tecnoglass, Inc.

First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Brad Cray, IR. Please go ahead.

Brad Cray

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

call Manuel, will expressly Slide of disclaims be now otherwise. I new over not The light risks in as discussed financial meaning for Our and statements alter investors that #X. mind growth indicative Tecnoglass' changes future operation risks, of changes Jose uncertainty results. Daes; results in business. These a to the speakers any whether filings in of this future Tecnoglass' matters to implied on from Jose of and financial regulatory any Financial those forward-looking discussed Chief time call are in affecting beliefs the keep Officer, the performance, and like regarding to within results Giraldo. I'd changes acquisitions. obligation time except by future or Daes; assumptions and information, and/or Manuel uncertainties Officer, Tecnoglass Chris on material nature the to no update in subject Actual for particular Santiago of Litigation contingencies are with future in such historical and Officer, and These result to Securities Executive may SEC. to factors risks. of forward-looking uncertainties Reform based indicated statements a period statements vary under call or are due are the in expectations economic, including Chief XXXX, turn expressed in the today's the in during from beginning future information, and herein is current its should competitive Chief other presented statements are is Operating obligation or remind to Private events, Tecnoglass' call, information Further, business, circumstances. everyone that Act statements Tecnoglass' or and may

Jose Daes

and is I start for Brad, XXXX. steady Growth macroeconomic navigating backlog, record better single-family of $XXX.X residential of you, based single-family we look continues call. to you, everyone, on sales orders softer and against based to challenging growth months. revenues Despite much backlog business cushion end which the resilience helped environment, pipeline in executed market our commercial commercial We a a expectations the and markets. couple on trending met a healthy participating level during maintained on today's revenues off while pressures in million. Multifamily partly in continued now in our multifamily course. to thank proud This of of Thank am channel. team's this demand, resulted residential main a last seen

healthy million reflects XXXX. of and into product backlog Our demand $XXX activity record for in geographies growing commercial our key our visibility with

While due XXXX, to trajectory on residential to period compared April lagged were and over regular same indicating the XX% performance order consumer this in trends single-family March spending, in upward in an up inflationary business. constraints

surpassing vinyl half become results activity more contributor significant We the into a accelerate orders promising market quoting is our entry strategic window the our and showing the our will results Additionally, is as in to that later year. vinyl early anticipate expectations. of

Furthermore, profile. unfavorable the low further necessary million This with to coupled $XX and a ratio X.Xx with our to I enhancing the am vinyl was record included This of ramping quarter. net from pleased initiatives. strong of was EBITDA revenue efficient position provided [indiscernible] most to our yielded has support and $XX up fluctuations report debt expenditures, achieved leverage to despite net that an production was cash capital in growth we our evident of us improved This XXXX. solid flow particularly currency of capital of during first million in facing free financial windows as XX, management cash adjusted reduction in expected capital flexibility the our headwinds quarter. commitment Our flow mix. to working our low an from March operations

to turn our geographic Looking underlying as to remain the us macro continues broader customer the affecting look drivers results across optimistic end ahead, industry, a window We attractiveness vinyl XXXX. I of The provide robust support Chris will move relationships over well to additional about market, healthy Despite markets. our now we highlights. the call value. delivering additional strong operating capture the business. to of strengthened with combined pipeline positions our our of forward projects to we activity challenges and diversification through

Christian Daes

Thank you, Manuel. Jose

Moving to Slide #X.

performance multifamily our another quarter quarter backlog represented amidst We reflects dynamic operating the the first commercial our LTM and Our ended record adaptability a million. landscape. $XXX in X.Xx of revenues. with This

multiyear view multifamily interest of the revenues. This on backlog of is of our us in providing less key Our higher strategy, remains our commercial to a projects a sensitive our element rates. our side with of pipeline business growth portion historically

areas and these This on in of the capitalize planned overall us Tecnoglass notably continue well trends and the approximately Florida demographic Palm substantial and demand the within U.S. and Lauderdale positions share solid reinforces quarter. key in projects. This U.S. first Southeast levels alone. to has quoting confidence well in the growth favorable markets. to and XXX multifamily commercial as Miami, secular We experience trajectory, our in ongoing our Fort as bidding market Beach activity within

attention our XXXX. products scale activity are increase on later product deliveries in been we a our to surpassing half of our has Customers' and The expectations, offering to these quoting the lines. to positive. is Turning our response vinyl of exceptionally

of organic expand showroom into vinyl combined the is to our market. market, significantly move the strategic with expansion Our and drive our addressable network, poised growth

#X. Slide to Moving

seen Our sequential has growth since quarter each XXXX. backlog consistent in

stood XX our the at maintaining of above seeing to virtually into XXXX. which momentum that track ratio, invoicing X.Xx cancellation bidding stage provides completed this XX book-to-bill strong a will backlog the over X, quarters. following expect help the despite consecutive adds that we roughly our strong ratio on even of ratio Historically, and external invoiced in fact delays project this factors cause a of a X.Xx maintain quarter largely as windows the project past We record are believe pipeline late book-to-bill activity us months. With in X/X of visibility strong buildings, the This deliveries. installation certain we temporary our over no reported can historically are

are housing Looking trends Both in the multifamily in Slide and at trends. favorable from positive demographic trajectory, key our overall, regions mixed U.S. growth market an states housing Despite demographic markets are and single-family on by housing a we our a see the shortage. #X. outlook core for on starts pronounced driven the upward benefiting southern population

to While turn XXXX. I financial mostly expected over these the today, demographics call XXXX XXXX. will serve activity results to outlook in we through discuss are sustain to channels markets our now favorable and our and R&R Santiago robust primary for

Santiago Giraldo

Thank you, Christian.

residential Turning to #X. on family single Slide

year-over-year higher rates. quarter, single-family $XX in million and from primarily of The first compared sequential the was interest to $XX generated the prior revenues million to residential due and slower resulting During we mortgage quarter. much activity year-over-year year change

April, based on March by record up however, a Jose XX% and which level, year-over-year. reversed the level came has Manuel, mentioned orders over of at trend As significantly this for

markets points into in the recent to for While from to growth our and key Houston. #X, activity. see base our market, potential provides through to interest reiterate business underscores to operating recognition diversification revenue success response times, huge our through the high namely, confidence unique in higher once entry organic which single-family key brand a growth energy ramps quarter, the residential quoting of opportunities a windows. addressable attractive evidenced and saving would business products, recent The this entry long-term and The runway our interest our in of reinforces development positive a by a throughout I Florida enthusiasm vinyl expansion for this innovative short rates drove as continue few U.S. level vinyl showroom Slide the for tailwinds full capacity. On widened in by demand York, strategic weakness New been significantly geographic our such variety lead and customers our product product decision from enabled strategic market. our during into Tecnoglass, openings favorable market have we the from dealer Charleston expanded and up and customers and growing as in overwhelmingly And like

Our lines showrooms now window and legacy aluminum our feature our designs. both vinyl new

solidifying have distributors vast successfully we our market since last Northern new incredibly the Vinyl see opportunities the given the U.S. further are update, The within across presence. market addressable size we Florida Additionally, of promising our in onboarded

Due expectations. line X.X% downtime with expectations maintenance in decreased Turning of executed our to the $XXX.X revenues revenue our growing million, commercial residential in Slide for single-family continued January, quarter drivers business with revenues related we #XX. multifamily line perform our as on to to Total backlog. year-over-year to and lower to in internal and on first

by quarter, shipping million expenses #XX. salary EBITDA in adjusted XX.X%. for prior partially the beginning the decrease profit margin XXXX higher was year the at of adjustments on the took with Looking an annual $XX.X lower EBITDA the to $XX given first personnel representing of that quarter and at was Adjusted million the place compared year. million, drivers commission expenses, to offset of SG&A Slide $XX.X attributable

the of year-over-year. prior revenue lower quarter compared SG&A year as quarter. The revenues, total revenues to first increase due percentage of in to primarily percentage XX.X% revenue was a As of revenue XX.X% SG&A in for a of the was

of the gross The X prior primarily margin. million, gross in to gross quarter to is gross margin profit change margin related representing million, factors. year First gross XX.X% a main $XX.X XX.X% This a representing quarter. in profit year-over-year was compared $XXX.X

to and First, a an approximately basis against with functional cost revaluation This effect year-over-year. the noncash of FX points. XX% and effect the related nearly peso XXX expenses inventory as we currency on impact accounting steep unfavorable on had peso-denominated a of

have currency Excluding impact, on year FX margin with gross constant a would quarter, prior been the basis XX.X%. the

quarter Second, in impact the first subsequently quarter from the we basis promotional certain was has residential mostly which saw concluded. in a implemented fourth that products, activity temporary XXX single-family on invoiced point

and an lower by that in resulted also had leverage. margin included more operating lesser installation revenue gross dry extent, was softer energy in increase temporary due product impacted stand-alone sales. conditions a we To to in revenues costs weather Third, unfavorable Fourth, Colombia. mix a

operating in stability X% much currencies points that X% basis over basis we from sequential costs FX in of of costs. the the XXXX gross a months, of operating given the of each from year-over-year lower, included margins decrease XXXX. Other to impact to and FX activity impacting movement quarter the equates factors increase a lower salary given personnel, compared was estimated XXX quarter in residential revenues, quarter salary from to the X% first promotional higher place sequential take a appreciation As estimate higher year, last in the margin an the XXX to the was pronounced, in leverage peso reminder, approximately temporary margins. the for fourth from XX.X% a increases, with beginning several temporary impact operating impact to FX while in at energy and last given which points each relative costs of company-wide the annual our

at cash Now improved our flow strong #XX. looking and leverage Slide on

another flow solid million, quarter period driven amounting management. to showcased primarily first The capital working $XX.X by cash operating effective of

XXXX. the for million driving million, quarter. for the million automation We Our share continue quarter we and the increased repurchases market the significant remained capital our increase entry payments additional returned shareholders anticipate Net and a our were a of low and record of record reduction in within in dividend investments capacity. With current capital have totaled expenditures for to debt capacity, encompassing window track continue $X.X $XX year through $X.X operational available investments to our remainder unchanged vinyl land, expenditures pleased in to installed value adjusted in authorization. from in EBITDA, past cash We capital to roughly X.Xx during net dividend. through our LTM leverage at our our shareholders into prior

of liquidity This availability additional had return facilities our of and under generating we average. in million, flexibility committed $XXX $XXX in gives $XXX our highlight balance a of XX, superior cash drive revolver the million XX, to As we shareholders, credit outperforming for approximately resulting our financial of industry us business. On our success significant Slide value million. total March in

approach. past significant strategic have generation Our enhanced returns, over validating above-average flow years our cash the X profitability further yielded and

U.S. year. These scenarios a going for few year different for with current drivers the year, very expected how our in half macroeconomic Now the on recent consistent openings durability factors, #XX. are Slide the That said, growing the The of last certain we during X residential being slower we organic year. later revenue mainly are of of the trends, First, with themes highlighted remain in and record several remain we earnings to from highlighted we clarity visibility playing of moving out the growth scenarios forward, the results based backlog the trajectory updates the coupled the dynamics. expected to in geographical full our our the of showroom what on see to interest We year right we now are another our vinyl given and initiative, growth factors: to given call outlook rates the earlier, ramp-up vinyl our main predicated in sales on by our ability second single-family a for providing with lack on confident and start expense. revenues order including produce pickup seeing

increased stand-alone to an revenues of we a and sales from XXXX. Second, anticipate installation compared mix product

volatile Colombian XX% FX the than large average our and centric. FX duration of end within within multifamily to be a for fourth, roughly projected is current projects different rate and levels And on levels. assume of peso lines current and rate in less execution provide FX XXXX the XXXX rate activity XXXX a more based the stronger staying time the backlog X% short-term tend that since results Third, scheduled all scenarios smaller to which projects, for of commercial

In incorporate of decisions U.S. outcomes a through rate year-end. Fed addition, our range scenarios for interest

of X% X% full also approximately and million revenue year-over-year, up These scenarios both million. of and case have we adjusted of upside $XXX of base Based on and EBITDA in X%, $XXX revenues $XXX scenarios delivering and year in factored an out, respectively. growth a Our downside XXXX we mid-single-digit $XXX assumes adjusted million, revenue the case. EBITDA to million assume growth range of have of resulting laid scenario

and we pace record levels reaching As a activity in more April. seen have mentioned in single-family robust March earlier, orders with of residential

the we effect depending basis, sequential stand-alone and gross offset While scenario. On of we this our residual within strength and margins higher growth favorable of a purchasing product consumer and capital we geographies, strength business. sales, opportunities, overall has vinyl key free first new softer-than-expected that expected stable seen given in Combined quarter. All interest step year the scenarios from automation, more gross cash in facility the higher operating the accounting investments continue in expect assume which the revenue favorable FX revenues. in for acknowledge and weigh the mid-XXs on to year-over-year, flow leverage products scenarios, momentum our are in levels our optimistic on optimistic sequential installation on healthy decisions. could to completed. In first to to an gain our expansion a our majority be rates for down or fully which based gross a the through to less factor with on rate a year-over-year, operating partially we had of X based growth from pressures summary, been turn a expectation full remain we margins vinyl leverage, on Therefore, in related in range, expenditures expect mix, quarter a up to having a share related low increase of we margin

come. With and promising business Operator, quarters multifamily vinyl the we happy projects to Our line value that, years your to support open questions. and market and expansion be please of growing and backlog activity the in share answer in for our commercial will creation questions. to

Operator

with Stifel. from comes first The question Stanley Instructions] [Operator Elliott

Stanley Elliott

$XXX commercial -- the bit and Could the split discussions just guide. in million and of residential around that implied little growth midpoint, some kind the about of maybe then the the us kind in you terms between the in help the a let's talk of new

Santiago Giraldo

Yes. I'll take that, Stan.

normalized half line in schedule on the of business, able that we vinyl resi sequential in June, that baking sustainable in are orders that's we record XX% right see through down segment, as the commercial together, commercial right? year March million non-vinyl, on the on projects to of with deck do we on the second we XX%. now, we and see upside orders stepping you of the the If the being at to total And levels. are in about based case. we in the and amount growth invoice we We towards obviously, get stream implies that And of the more that you seeing going $XX about levels revenue and the some we're the sustain that for being more business, would to legacy then legacy that basically are that the put came assume have obviously April, in

Stanley Elliott

it And the at guess, year full -- it had kind of out just softer help double-digit. what it us before guide. about were of had expectations. had you top like within looked you We looking Maybe guess, sounds changes kind help line changed, the I like since talking Maybe, guess, of some when order growth what of overall bigger the I I February kind frame picked up.

Santiago Giraldo

and no about a clearly March I is on overall and outlook I came rates. really right? change or conditions. a in cuts whereas at I overall mean orders being the there's X Well, right cuts That then, fact thing macro in the we hike, just So psychology, about in now, talking said, the record been even we're as reiterated, main talking on April better definitely change levels. think interest were

upside and are that outlining So the to is if to we are able get definitely see on trend growth that a we reversal we'll case. double-digit the

So we're certain just are a to case. needs that saying is It possible met. that, things that still be

Stanley Elliott

if of Or of was from showrooms kind retail drive Curious great. out in that's March IBS. are that more at showing nice there? a the color of that strong be orders Just and had any what April? some there would the guys you some and And helped Yes.

Jose Daes

Well, windows. performing, have the gave people else. -- are all appreciating normally shows looking, you our Customers to better the is anywhere don't value let strengthened see our we me tell of They and Jose. And been the better lot modern. they it's that this. are them also products This a in glass proposition is more see that

and in space to the about amount going increase happens we're that get in to very we're shows ones. next happy we're the of those So what going

Operator

question next with The from comes Darkatsh James. Sam Raymond

Sam Darkatsh

would what X how the gross would guess framework questions, if EBITDA quarter? obvious sales, us expect for to you I of margin the quick and Three a Santiago, give you could. -- be can second I for

Santiago Giraldo

Yes.

trending So margin an sequential the increase in QX that. assumes and that given we obviously, orders in revenues. expect last in kind the with And most on And premises operating side pickup the base terms that gross SG&A last what months. From we're which a X by case we kind the of at the of ordinary. is of coming is from record perspective, out of discussed earlier, that for of we in are leverage, line expecting of level residential year, supported, coming anything really don't the highlighted

The QX for higher on be over QX. leverage sales should sequentially that So pickup operating comes from flattish.

Sam Darkatsh

So what sort of sequential the sales in second bump might you expect than in quarter?

Santiago Giraldo

point think range. would that to should X range. X XX of I modeling that's we're that coming of a this in end time, broader around I mean somewhere there. higher But I probably kind the be around towards at say XX

Sam Darkatsh

you don't out talk and/or you it's folks peso, the there's continue Can of these sensitivity within the or the now your terms in I -- range. hedging issues? Colombian your to you upper we within and out peso. And in to exposure volatility peso of have band thinking, Board Obviously, the you considering whether hedging so terms you the with know the were where right Got are you. lower consider then of the about

Santiago Giraldo

Yes.

we the look averaging of X,XXX and of X,XXX year, mean, you I how it's think it of been it's the has trended, last lapsing completely to outliers volatility, this months. we're is actually of at Last an same currencies, it really But clearly level outlier. averaging on X see you this QX quarter at think the If And at for volatility, look the I type the the if year. right? So the have you low don't last all-time since this that down the QX mean as not comps definitely I QX kind economics. clearly vary an all-time expected from tough based in along relationship rest quarters. macro year. steps and we We of get that into on QX and of to much the is any move I will from peso QX easier were right? hit the based quarter the year projections reason expect FX

Christian Daes

me, also Christian Daes. So -- and me let This excuse add. is

on past XX We have aluminum, to years tried XX, the dollar. on hedge hedge in the

them, have ended the taken job. all And banks or we And missed of somehow, always hedged downside we mean upside XX% it. loosing. do we even that time, we best I the the the up the of in because

told I yesterday a Santiago to move. So it's going that is not the place at rate where

look when look and at if at a so it case -- special rate, for back was a or ago, normal. this you you few to back up X,XXX, to X,XXX went months If to it went then used months it it XX be

playing we to it may money. make so end end, instead we the start -- don't God, even moves wasting maybe So more time, because we that we up play out want don't to of let losing at

we there So at mean the hedging is -- are. we that -- would no to go comfortable it it the looks it down keep Obviously, now, rate. sense. anymore. support would right very like exchange not we But I when make looking type feel doesn't can way see where of country it

Sam Darkatsh

last And Chris. last question, share My then quarter. the there question, was repo my no in

would knowing XXXX, horizon, be the around share Talk priorities, the this certainly repurchase, allocation near-term the capital on within that a Russell at your not if think stock that folks that, about might get soon. quarter, you reasonable I least, there's so included accordingly? chance act especially

Santiago Giraldo

definitely of each Yes, discussion and that's always topic be will on a of the obviously, in them and Board's opportunistic. one mind

the return only been. to not dividends. a ever to flexible is it as In value it's chance repurchases, great sheet, balance but shareholders I as also think via there's

So than just half that to opportunistic. I us execute. we'll answer have to to we of that, obviously, more available still be And mean, program

So how see created plays we'll to value of a out. there. definitely, lot But there's it be

Operator

next comes Baird. with The Tim Wojs question from

Timothy Wojs

to both year-over-year. Jose continues to you you backlog mean, and a just grow around I good activity Maybe back, things sequentially pipeline I that. talked quoting of just of And like about your step mentioned bidding Manuel, -- pretty and and mean, kind

So of both pricing and of I guess you grow here just perspective? little could to And the seeing flavor what quoting in continue you're backlog a of would terms kind add expect a bit from the near on the a to you in ground term? maybe

Jose Daes

The invoice invoiced. we up past flowing, to It's continue playing less activity, crazy. And month see is we not it's day, the Miami, much then of than is Beach, jobs we the closing. you we that seeing the Boca it enthusiastic booming I are all to Pompano go mean, lot backlog closed every grow West Tampa, Jacksonville, like because mean, funded. Beach Raton, trend, fully everywhere. this they're I we're we for because And than not and is it It's to more will I continuing very a only much what games. jobs we're are grow. mean,

retail. just up, is So residential. And the in backlog, see we nothing there the the I retail remember mean, coming of backlog is growing. And that

on believe the outlook. do going is that to we we turn But believe be on, to all semester. we second we're going conservative to Anyhow, very July want products good, So align around. good after the new on everything the from

Timothy Wojs

Okay.

you And $XXX million the the like you. residential sales that's Got I of residential mean, plug in then Okay. think guess expectation No, the year, for just kind just if side. for something or that of on Santiago, helpful. something you for I I like get kind resi.

of So then or kind kind the the $XX case math in the of base million really get And you so business? legacy vinyl? kind of that just X%, that is math? Is of kind X%

Santiago Giraldo

I were earlier. I your to right sequential right? that's interest a is XX%, And up the the what's And be obviously. to think already Tim, the continues pickup presentation, that mentioned, is from But to percentages really that's Yes. whether we right on key on the is So as on. different based overall I case, why visibility over mean coming, significant on, be have we base we gave QX, your good right? QX, I math wanted happens on just orders out in the and partially ingredient rate psychology related on to and that's going think lay what with cases. that sustainable, here and the math

Timothy Wojs

Okay.

you big Okay. Good. what you commercial smaller guess is how I of then just last the and give had, guys. for some exactly to in one slides mentioned know definition I I want what just And just you is the -- of commercial just a projects. don't of if that percentage examples the business that

Santiago Giraldo

right? large that maybe like I but something projects, to a are will projects, that, small, And Yes. really Tim. you in will mean that same dealership or the million nature, car invoiced million, something like extent. that could multiyear a get And per you range like $XX million, comes your in multifamily million, year. that and in that's you that typically, much more have Think I month. also have street mall $XX spot something $XX March about between $XX be in like mean

up at light scenarios. end the where on depending the commercial, we end what end different X we of higher on So lower these kind of range on end or up,

Operator

next question from Riley B. with Alex Rygiel comes FBR. The

Alexander Rygiel

here. A questions couple of

little windows Just to either a to manufacturing more there. a provide it or relates greater detail and or you as dealers could quantify bit bit successes the First, date, detail quoting orders maybe little vinyl lines? or of number

Jose Daes

Okay.

we since a few the the We Let launched a it what everything line. And new mistakes me explain made line, about line. happened. and complete we wasn't didn't know

are said but in to to this even the had went we on much, you're before we our of semester hurdles to for of is don't have they line going go doing, missing the complete end product. cannot semester, but outlook to the we I "Oh, better. like with the going you are everything. you're we I our it, year the this much customers". that, And being line. if a the say, And redeveloping sure. of And a by for tenfold when to by next extrusions we second with like ready expect So be conservative few question, supplier And on June we I know dealers, way like my and yes, second and complete a be the we what to are very And

Alexander Rygiel

That's what very kind new into homebuilders there the talk us in helpful. about construction a your then outlook? remind that bit between And to residential, you then and how R&R as sales mix it changed of can is has and relates and

Santiago Giraldo

I'll new breakdown. and X/X construction, dynamics repair as It the with the such. and talk about Alex. talk about I'll roughly homebuilders home let X/X Jose remodeling is

Jose Daes

little because Well, the a construction we're new is seeing the stalling rate. bit of interest

as market. of taken So believe start mix more has R&R should it we But rates as down. XX-XX the soon be of the a interest coming

Operator

Romero & The next from comes with Sidoti Co. question Julio

Julio Romero

in on did were the clarify, The little first products vinyl I orders or samples just in translate into were vinyl actually they Just revenues for bit. to of a to wanted that shipments stay quarter? December, they

Jose Daes

and orders stronger we minimum shipments I more. were the day, up mean No, real first every quarter, mean, see more for don't even But the account, no. real and orders. were had I stronger them getting and we They shipped because we In we orders. coming samples, they give free.

Christian Daes

Just May, we're February. of together in you month than invoice than an more May, in February, of example. March supposed month March, and the invoice April to in more invoiced did we in and June, to vinyl. And give to April, going we're the we In

obviously, tried to before go exponentially complete we're several million once to minute. we see month. improving we're up, be a invoicing So the it line, But going Jose is to by that, going this is what and the dollars explain

So we're for, we're for what and that's for. That's shooting ready getting what working we're it.

were window, they better. ours and already good. are installed -- projects, the it We and comparing buying to I previous look looks they really they mean wider, stronger, have is some some windows

see and of happy, really vinyl. a in we're future So we ahead us good

Julio Romero

I in, Northern X you think, And and Sarasota, Florida, the Got new talked new as signed about well. then it. Very the distributors distributor Florida helpful. in

from a the of bit would distributors what's throughout And year? feedback have us the distributors. those how additional the about think about you early talk Just also, ramp

Jose Daes

line, ready sometimes but a then other are are don't a we Those go X have for have the they complete to busy. X and like difficult distributors them order, and into and X said and have we job I to only products, it's before, different

We are look wait situation. be they're of don't and good. a it's the see can X with it above ramp what glass only So we vinyl they line, bit. That's that people telling offer is wait great. really crazy been X a like because rather mix the competition. And feel to win-win composition, to mean, it there product little the like better have they XXXX up, the going what That's quarters end to I I've because we a we have cut people so so have to year house on next it the one going until just you why doesn't complete and much the is line said. to we look, we have and better the know

Julio Romero

scenarios us scenario. gave for then Okay. the appreciate last I one, me And each vinyl -- on is about you just how to and think and each you Understood. for the outlook 'XX one for revenue gave

curious to is relating for product revenue legacy aluminum how showroom embedded those scenarios? your in much Just

Santiago Giraldo

holdup the Julio, markets. with on of up the kind It's line full in products we of ramp-up kind of had and for of still what kind just is the ramping those estimated, originally development the

maybe around So year places some of in as these well. shooting But also vinyl of million that geographies. talking for to those we'll we're $XX other out remember sell the be

some is for not you exclusively it I to right? mean model, that windows aluminum interchangeable. going to of So is be

Julio Romero

Perfect. just more. And then one

If you could were sales the in to much us showroom the 'XX, year-over-year? think just about remind how

Santiago Giraldo

it I mean No, Julio, still it's still mean that's not more upside million year-over-year. of a complete couple dollars. material. wasn't I than

still it's going a to ramping kind basis, So increase, like on a right? up. if is look a of huge it just It's you at nominal basis, percentage look

Operator

question D.A. with The from Ramirez Jean comes next Davidson.

Jean Paul Ramirez

gross margin across kept have scenarios. all low You guidance mid-XXs to

what during that. I the anything around this keeping during from confidence more call, some around the to Aside color second just you've -- drives what this guidance sort mentioned or want half. of hear of

Santiago Giraldo

Just in all clarify, baking to scenarios. low to we're X not mid-XXs in

talking mid-XXs at base low to about the look the mid-XXs ones, we're If on the case, upside. you on different

lot clarify essentially just from I a coming that. to want through it's is where you move So And leverage as more operating year. the

because is As mix to the revenue. as if seeing improve we're is well it's that March, of more going we're ramping April, manufacturing up orders that sustainable, the residential that in all

upside low to are essentially better the again, So just But you leverage operating we mid-XXs on the case. saying on -- upper case, mid-XXs have to mix. and base clarify,

a on So coming know event, what in that far seeing QX. as what revenues, in we're based you as step-up from any is saw we

Jean Paul Ramirez

a said And commercial? is you there? residential. What the look like ramp-up outlook about What so

Santiago Giraldo

to well. I projects the schedule have as you're and the you more on deliver Growing -- there mean based that on. visibility about of

schedule of already the residential So be shouldn't modeling we're volatility as the year. delivering a spot you're the until way be that have growth you that throughout so to project business this a is throughout there rest sequential much more the And side, will the the So product nature you supposed out right? year-end. of on see of or on

Jean Paul Ramirez

decline is The How sort to back mix much the bridge to going mix $XX related just how price. of price? to indicates and related million is And guidance. much around to related EBITDA and

Santiago Giraldo

when that. about you're for Or provide are talking EBITDA because an -- bridge Are didn't about you talking talking you we QX? guidance, about

Jean Paul Ramirez

Just the year. full

Santiago Giraldo

X,XXX. going impact On X,XXX FX. to We're on average. is year, the Last was year full be the an roughly main projecting

an revaluation So year-over-year. it's X%

factors the the mix on to then leverage. FX. essentially, negative to getting variance right? impact So on other an and effect, only nets case, your are scenario, the the incremental if upside out X and mix And FX leverage have related is operating revenue are you you So that operating on

XX% a be you what from pricing other factor here we're for was not to probably were the pricing more and in essentially effect should XX% case, And promotional about concluded. the a and is, sales. done only that, QX On related have that's expecting than QX mix roughly, stand-alone product impacts that sales, to base because on out,

going effect. of more it's mix a to So be

Operator

concludes to remarks. closing to like conference for back turn would our over the This session. any Jose Manuel question-and-answer I Daes

Jose Daes

Well, thanks, everyone, for participating today's call. on

is markets going company and our do better our reiterated, penetrate have to things, better shareholders more give to I and much results As everybody. Thank you.

Operator

you today's conference now attending has The Thank presentation. for concluded.

You may disconnect. now

Tecnoglass (TGLS) 9 May 242024 Q1 Earnings call transcript