Tecnoglass Inc. Ordinary Shares

Greetings and welcome to Techno Glass Inc. 4th 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 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, Brad Cray, Investor Relations. Thank you. You may begin.

Thank you for joining us for TechnoGlass' fourth quarter and full year 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 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' 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's business. These risks, uncertainties, and contingencies are indicated from time to time in Technoglass's filings with the SEC. 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 thank you, everyone, for participating on today's call. I am excited to discuss our exceptional fourth quarter and full year results, which reflect the focused execution of the Tecnograph team across all areas of our business. During the fourth quarter, we further advanced our leading industry position to produce yet another quarter of record results across nearly all operating metrics. This allowed us to achieve the most profitable and highest cash flow year in technoglass history. Our strong growth continues to be largely driven by outperformance in the sales of our innovative single-family residential product. Single-family sales rose over 140% year-over-year in the fourth quarter, and for the year, our single-family sales increased over 150%. This impressive performance in residential has been supported by a combination of our penetration into the attractive Southeast U.S. region and our track record of excellent customer service, including our ability to deliver products with lead times well below industry average, despite the supply constraints impacting our industry. We continue to take a disciplined approach to managing costs. We are leveraging our vertically integrated structure and prior automation investments to drive operational efficiencies. That has allowed us to further advance our industry-leading margins, This is evident in our fourth quarter gross margins, which increased 710 basis points year-over-year to a record 42.9%, contributing to full-year gross margin improvement of 380 basis points to 40.8%. In November, we took further steps to reinforce our balance sheet through additional amendments to our credit facility. which increased our financial flexibility and reduced our borrowing costs, all to support future growth. These achievements were a recognition by our lenders of our careful working capital management and the growing mix of our revenues from our single-family business, which has a shorter cash cycle. Together, these factors helped us generate our eighth straight quarter of accessible cash flow as we produce a record $117.3 million of operating cash flow in the full year 2021. Our improved cash generation profile has augmented our capabilities to invest further in automation and capacity of our plants. And we also voluntarily prepaid $30 million of debt during the year, further strengthening our balance sheet to achieve the lowest leverage ratio in our history at 0.8 times net debt to adjusted EBITDA. And given the strength of our business and cash flow, in December 2021, we announced a 136% increase in our dividend to further boost capital returns to shareholders. In summary, our fourth quarter results mark the completion of another outstanding year for Tecnoglass. We could not be more pleased with the value we have created from our returns-oriented investments and the actions we have taken to propel our company into a leading architectural glass player. Through our vertically integrated platform, strategic geographic positioning, and prudent growth investments, we have established an exceptional track record of cash flow generation, which is helping us create additional value for our shareholders as we set the foundation for the next chapter in our growth history. As we look to 2022 and beyond, we are confident in the actions we have taken to leverage our structural advantages and strengthen our capital positions. All these will collectively allow us to gain additional market share while maintaining our industry-leading margins and structurally enhanced cash flow profile. I will now turn the call over to Chris to provide additional details on our record backlog.