Tecnoglass Inc. Ordinary Shares

Good morning and welcome to the Technoglass, Inc. First Quarter 2022 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone keypad. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, today's conference is being recorded. I would now like to turn the conference over to Brad Cray, Investor Relations. Please go ahead.

Thank you for joining us for Technoglass' first quarter 2022 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 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' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary 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 SEC. 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 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. We are thrilled to continue our track record of exceptional performance into 2022 as we report yet another quarter of record results. Building from our momentum through 2021, we saw continued strength across our business in the first quarter, resulting in record total revenues, gross profit, operating profit, adjusted EBITDA, and backlog. This outstanding accomplishment is attributable to the dedication of our team across all levels of our business. We are further solidifying our position as a leader in the architectural glass space. Sales of our cutting-edge single-family residential products, which represent 44% of our first quarter revenues, continue to drive our top-line growth, increasing by 155% year-over-year. This was driven by our ability to further expand our relationships with contractors and builders in the single-family residential market. We have an incredibly strong footprint in the southeastern U.S., where circular tailwinds remain strong. In our multifamily and commercial business, we were also extremely pleased to see very strong momentum in large project demand, demonstrated by backlog growing, to a record of $651 million. Our record 44.8% gross margin helped drive outstanding bottom line results that continue to illustrate the success of our growth strategy as we produce record quarterly adjusted EBITDA of $45.4 million, growing 35% year-over-year to a record margin of 33.7%. This was achieved through improved operating leverage driven by structural and sustainable improvements we have made to our vertically integrated platform, through strategic growth investments and automation, as well as our higher mix of single-family revenues, which carry higher margins with no installation. With the better profitability in our business and strong working capital management in the quarter, we were pleased to generate our ninth straight quarter of robust operating cash flow at $27 million. This allowed us to prepare an additional $15 million of debt during the quarter. We strengthened our balance sheet to achieve the lowest leverage ratio in our history of 0.6 times net debt to adjusted EBITDA. In conclusion, our strong first quarter results provide us with confidence in our strategy. Our emphasis on vertical integration, sustainability, and being an employer of choice are paying off. The resilience of our business models puts us on a path to produce another exceptional year of profitability and cash flow generation in 2022. We will continue to leverage our industry-leading platform to drive profitable growth and deliver exceptional value creation. I will now turn the call over to Chris to provide additional details on our record backlog.