Tecnoglass Inc. Ordinary Shares

Greetings. Welcome to the Technoglass Inc. 4th Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. The 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. Please note this conference is being recorded. I would now like to turn the conference over to Brad Cray, Investor Relations. Thank you. You may begin.

Thank you for joining us for Technoglass' fourth quarter and full year 2023 conference call. A copy of the slide presentation to accompany this call may be obtained in 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 the 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. We are proud to report another outstanding year marked by strong operational accomplishments and record financial performance across many of our key financial metrics. The relentless dedication of excellence across our businesses, our innovation and vertically integrated business model are all reflected in our solid full-year results. During 2023, we produced record total revenues of $833 million, achieved record adjusted EBITDA of $304 million, and produced record gross profits of $391 million. We are pleased to accomplish these results while maintaining a resilient industry-leading margin profile. We more than doubled our addressable market with our strategic entrance into the high-end, final-end market. We relocated our global headquarters to Miami, Florida, aligning with over 95% of our revenues sourced from key U.S. markets. Our prudent management of working capital allowed us to generate impressive operating cash flow of $139 million for the year. At the same time, we have preserved a strong balance sheet, which provides ample flexibility for future growth and additional returns for shareholders. And finally, we completed our strategic investment to expand operational capacity by 40% to roughly $1.2 billion of revenue, including Easterly. We have been experiencing healthy multifamily commercial demand, from both high demand for our innovative product and increased commercial activity in our key geographies. This drove an increase in backlog to a record of $870.1 million at the year end. We continue to gain market share in key geographies despite the challenging macroeconomic environment. We have also taken a disciplined approach to managing costs. We are leveraging our vertically integrated structure and prior automation investments to drive operational efficiency. This focus is evident in our full-year gross margin of approximately 47%. We achieved this despite the previously discussed falling exchange headwinds in the back half of the year. Furthermore, our solid capital position has given us flexibility to invest in structural investments, increase our dividends, repurchase shares, and improve leverage. We were pleased to improve our net debt to adjusted EBITDA to a record low of 0.1 times as of December 31st of 2023. In summary, 2023 was another exceptional year for Tango Glass. We are pleased with the value we have created from our returns-oriented investments, which have positioned Tecnoblast as a leading architectural class and window player. Through our vertically integrated platform, strategic geographic positioning, and building growth investments, we have established an exceptional track record of cash flow generation. This is helping us create additional value for our shareholders as we look to 2024 and beyond. We are very confident in the strategic actions we have taken during 2023 and remain excited about the prospects of driving above-market growth through the attractive vinyl window market, strengthening customer relationships, and geographic diversification. Based on our strong backlog growth and continuous strength in pipeline activity, we are projecting another year of double-digit revenue growth. This highlights our ability to continue taking market share, even in the face of challenging macro and headwinds for our industry. I will now turn the call over to Chris to provide additional operating highlights.