Tecnoglass Inc. Ordinary Shares

Greetings and welcome to Technoglass Inc. 4th Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rodney Nassir, Investor Relations. Thank you. You may begin.

Thank you for joining us for TechnoGlass' fourth quarter and full year 2020 conference call. A copy of the slide presentation to accompany this call may be obtained on the Investors section of the TechnoGlass website. Our speakers for today's call are Chief Executive Officer Jose Manuel Diaz, Chief Operating Officer Chris Diaz, and Chief Financial Officer Santiago Geraldo. I'd like to remind everyone that matters discussed in this call, except for historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future acquisitions. These statements are based on Technoglass's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may differ in a material nature from those expressed or implied by the statements herein, due to changes in economic, business, competitive, and or regulatory factors, and other risks and uncertainties affecting the operation of Technoglass' business. These risks, uncertainties, and contingencies are indicated from time to time in Technoglass' filings with the Securities and Exchange Commission. The information discussed during the call is presented in light of such risks. Further, investors should keep in mind that Technoglass' financial results in any particular period may not be indicative of future results. Technoglass is under no obligation to and expressly disclaims any obligations to update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise. I will now turn the call over to Jose Manuel, beginning on slide number four.

Thank you, Rodney, and thank you, everyone, for participating on today's call. 2020 was a milestone year for Technoglass on many different fronts. On the operational side, during 2020, we further advanced our leadership position in the architectural glass industry to produce results at record level across many metrics. In early 2020, we announced that we had completed the implementation of several important high-return investments in automation and capacity to further strengthen or vertically integrated operations. These enhancements allowed us to produce record full-year operating cash flow, in addition to record gross profit and adjusted EBITDA, both on dollar basis and as a percentage of sales. Building on the momentum from our structural enhancements, we navigated successfully through pandemic-related challenges to source and win new businesses, which allowed us to end the year with our backlog up slightly on a year-over-year basis to a comfortable position of 545 million. These exceptional results reflect the resilience and dedication of our team. We ended the year on a positive note as we capitalized on the strong residential macro tailwinds and recovering commercial and market conditions to achieve our second straight quarter of growth in the U.S. geographic diversification is an important part of our strategy. And we continue to expand and diversify operations within attractive U.S. markets as we aim to capture additional market share, mainly in the rapidly growing Southeast region. As a result of our focus on maximizing our potential in the U.S., the country now represents 91% of full-year 2020 revenues, compared to 85% in 2019. Most importantly, Our focus on single-family residential end markets has been and will remain a significant driver of growth. At the end of 2020, single-family represented nearly 21% of ourselves compared to 18% in 2019, and only 3% just four years ago when we entered that business in 2017. Our recently introduced product line called Multimax, includes models from production to home builders, which is opening additional growth channels with those on top large customers. During the year, we also made significant progress by enhancing our capital structure to create additional value for our shareholders. Starting in the first quarter of 2020, we amended and simplified our dividend to a purely cash-only payment and eliminated the option to receive dividends in the stock. Furthermore, our success with managing our working capital is translating into a step change in cash generation, with our operating cash flow representing over 70% of adjusted EBITDA in 2020. Our outstanding cash flow allowed us to improve our leverage profile to a very conservative 1.6 times at December 31st, a level not seen since 2016. In November, our cash generation and record of success as a U.S.-focused company was validated by an extremely favorable recapitalization of our debt. This was funded by a consortium of mostly U.S. and European-based lenders on terms that were comparable to or better than many publicly traded U.S. companies of similar size. In further commitment to our U.S. shareholder base, we recently completed our planned listing from the Colombian Stock Exchange. Technoblast shares are now exclusively listed on NASDAQ, which we believe better aligns with our evolution as a U.S.-focused company. We remain committed to returning a portion of capital to shareholders while delivering strong returns on our accrued investments to drive improved profitability and cash flow. In summary, I'm extremely encouraged by our performance during 2020. We were thrilled to exit the year with a much stronger and leaner company, underpinned by a significantly improved capital position to further extend our leadership position in the industry. We will continue to leverage technoglass structure competitive advantages to maintain industry-leading margins while capturing additional market share in the U.S. We are well situated to achieve another year of stellar financial performance and returns for our shareholders in 2021. I will now turn the call over to Chris to provide additional details on our backlog.