Tecnoglass Inc. Ordinary Shares

Greetings and welcome to the TechnoGlass third quarter 2023 earnings conference call. At this time, all participants are in 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, Investor Relations. Thank you. You may begin.

Thank you for joining us for Technoglass' third quarter 2023 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 meeting of the Private Security Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future acquisitions. These statements are based on TechnoLast's 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. Tecnoglass is under no obligation to and expressly disclaims any obligation to update or alter its foreign-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 pleased to report yet another quarter of strong results. underscoring the resiliency of our business in the volatile macroeconomic environment. Our revenues increased to a third quarter record of $210.7 million, marking our 12th straight quarter of entirely organic year-over-year growth. Our multifamily and commercial business was again the main driver of our top-line growth, expanding 6% year-over-year to $122.9 million, even when a tough year-over-year comes. Compared to the third quarter of 2021, multifamily commercial revenue increased by 70%. We continue to see healthy commercial demand from both high demand for our products and increased commercial activity in our key geographies. This drove an increase in backlog to a record of 836 million at quarter end. Sales of our highly innovative single-family residential products grew 2% year-over-year to a record of 87.8 million as we gained market share in key geographies despite a tough comp in the prior year period and overall challenging macroeconomic conditions. Compared to 2021, single-family residential revenues increased 48% in the quarter. Looking at our bottom line results, we produced an industry-leading adjusted EBITDA margin above 30%, which we attribute to our discipline cost controls and previously implemented high return facility enhancement. Year over year, our margins were impacted by a non-cash effect related to the appreciation of the Colombian peso, which has partially reversed course since the end of the quarter. Our prudent working capital management, as well as the continued growth in our shorter cash cycle single-family residential business, drove a strong third-quarter cash flow from operations of $51.3 million. With the stellar cash generation, we executed approximately 40% of our $50 million share repurchase program since mid-year. This is in line with our commitment to return value to shareholders. Our strong capital position has also given us the flexibility to capitalize on attractive strategic growth opportunities, such as our recently announced entrance into the vinyl windows market. We expect this move to widen the reach of our innovative product portfolio and provide a high return on investment capital. We have already invested a significant portion of the anticipated capital required to add an additional $300 million in annual revenues to our business in the coming years. In summary, we are proud of our strong track record of returns and remain as confident as ever in our ability to continue delivering above-market performance while generating robust cash flow and value to our shareholders. I will now turn the call over to Chris to provide additional operating highlights.