Tecnoglass Inc. Ordinary Shares

Greetings and welcome to Technoglass Incorporated's second quarter 2021 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Brad Cray, Investor Relations. Thank you. You may begin.

Thank you for joining us for Technoglass' second quarter 2021 conference call. A copy of the slide presentation to accompany this call may be obtained on the investor 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 Giraldo. 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's financial results in any particular period may not be indicative of future results. TechnoGlass is under no obligation to and expressly disclaims any obligation 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, Brad, and thanks, everyone, for participating on today's call. I am thrilled to announce our most profitable quarter on record, building on our exceptional performance, which again draws record results in nearly all financial metrics. We closed out the first half of 2021 with record levels of revenues, gross profit, adjusted EBITDA, cash flow, and backlog, reflecting another quarter of consistent execution and operational excellence. Looking at our top line, second quarter total revenues increased 49% to $121.7 million, led by a strong U.S. revenue growth of 39% year over year. This success was largely driven by our continued rapid expansion into single-family residential and overall market share gains in the U.S. To that point, we were extremely pleased to grow single-family revenues 159% year-over-year, which represented 37% of our U.S. sales during the quarter. we continue to develop new relationships and deliver high-quality products with better lead times than our competitors. We continue to look at current macroeconomic tailwinds and positive circular trends as catalysts to the development of long-term relationships and as a way to further expand our market share. This is clearly showing up in our financial performance and in what we expect for the foreseeable future. The strength of our low-cost, efficient, and vertically integrated operations was evident in the quarter and continues to provide a sustainable foundation to efficiently control our supply chain and deliver short lead times for our customers. This allowed us to not only maintain our industry-leading margins, but also generate a record second-quarter gross profit margin of 40%. This was driven largely by the positive reception to our higher-margin single-family residential products and better efficiencies in our business that have resulted from our prudent high-return investments in our operations. This margin performance helped us achieve our fifth strike quarter of substantial cash flow generation, reflecting increased profitability and enhanced working capital management. Given our strong cash flow performance here today, we plan to invest additional capital in our manufacturing facility to further automate and enhance our production lines which Santiago will discuss later in the call. We are proud of our entire team's execution and ability to continue serving customers with best-in-class products while delivering short lead times at our attractive value. Overall, we are very pleased with our positive momentum as we move into the second half of this year. Our reputation in the architectural glass market has never been stronger, and we are confident in the strength of our business. Moving forward, we will continue to build on our proven track record of execution to capture a strong single-family residential and commercial demand in the U.S., while approaching capital allocation with a growth-oriented mindset. Our strong balance sheet, very low leverage profile, and ample capital resources squarely position us to deliver on our openly revised outlook for full year 2021. The future remains extremely bright for Technoblast, and we look forward to another year of record financial results. I will now turn the call over to Chris to provide additional details on our robust demand.