Tecnoglass Inc. Ordinary Shares

Greetings and welcome to the TechnoGlass fourth quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. A brief 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. It is now my pleasure to introduce your host, Brad Cray of ICR. Thank you. Please go ahead.

Thank you for joining us for Technoglass' fourth quarter and full year 2022 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' 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 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. 2022 was a phenomenal year for Tecnoglass. We are extremely pleased with our performance and the talented group of people at this company. We achieved eight straight quarters of a strong double-digit organic revenue growth. We hit record results in each quarter as we continue to outperform our end markets, even during this uncertain time for the industry. This outperformance was driven by several factors. The focused execution of our dedicated team members, capitalizing on rebounding commercial activity and solid demand for our innovative single-family residential products, of which our sales almost doubled for the full year. This impressive performance has been supported by traction with new and existing customers, giving our commitment to exceptional service as well as our focus on deepening our presence in attractive markets, especially the Southeast USA. Our continued success is also supported by our vertically integrated business model. This has allowed us to minimize the impacts of supply chain constraints and inflationary pressures to our business. We can deliver products with lead times that we believe are well below industry average. This is evident in our record gross margin performance during the full year, which increased 800 basis points to 48.8%. Furthermore, we produce record full-year adjusted EBITDA of $266 million, at a margin of 37.1%. Our industry-leading margins are partly attributed to our continuous focus on implementing attractive automation and capacity investments, which have allowed us to realize immense operational efficiencies in our business. Additionally, we continue to get strong operating leverage on our growth with positive revenue mix and pricing dynamics. Furthermore, our strong margin performance and prudent working capital management allowed us to achieve another year of record cash flow generation. The exceptional cash flow profile we have built up over the past several years has provided us with a lot of financial flexibility to invest in our business. We have voluntarily paid down debt and further improve our net leverage ratio to a very conservative 0.2 times net debt to adjusted EBITDA at year end. Our cash generation capabilities and strong balance sheet have also allowed us to create value for our shareholders. through our increased dividend and additional investments in automation and capacity of our plants. This has significantly enhanced our ability to meet the high levels of demand for our products, as indicated by our growing backlog. In summary, we are thrilled with the direction of our business. we entered 2023 as a much stronger company, supported by our record backlog and improved cash flow position. We have further extended our leadership position in the architectural glass industry. As we look forward, We will continue to leverage Tecnoglass' vertically integrated platform, strategic geographical positioning, and prudent growth investments to maintain our industry-leading margins, gain additional market share, and create additional value for all our stakeholders. I will now turn the call over to Chris to provide additional details on our record backlog.