Total Revenues Up for Tecnoglass for Q4 2019 and Full Year

Tecnoglass Inc., a manufacturer of architectural glass, windows and associated aluminum products, saw an improvement in its fourth quarter and full year 2019 revenues compared to last year. That’s according to the company’s financial ending December 31, 2019.

Total revenues for the fourth quarter of 2019 improved 3.6% to $101.4 million compared to $97.9 million in the prior year quarter. U.S. revenues increased 2.9% to $83.8 million compared to $81.5 million in the prior year quarter. The change was driven primarily by stronger residential invoicing partly offset by delayed starts on key commercial projects, representing an estimated $5 million of deferred invoicing. The delays were mainly attributable to labor constraints experienced by customers amid overall robust commercial construction activity. Colombia revenues of $14.1 million increased 9.2% as reported and 17.4% excluding foreign currency compared to the prior year quarter, primarily attributable to stronger project activity.

Gross profit for the fourth quarter of 2019 was $29.3 million, representing a 28.9% gross margin compared to gross profit of $34.1 million, representing a 34.9% gross margin in the prior year quarter. The lower gross margin was mainly attributable to higher U.S. labor costs, particularly on installation revenues and subcontracting costs, as well as modestly higher aluminum costs per unit.

“Backlog grew each quarter on a sequential basis through 2019, primarily in the U.S, leaving us on firm footing at year end. Our focused efforts to add new customers, enter new markets and provide best-in-class service drove a 24% full year sales increase in the U.S., representing 85% of our total revenues compared to 80% in 2018. Full year single-family residential sales increased by 78%, surpassing our expectations. At the same time, during the fourth quarter higher costs for aluminum and U.S. labor adversely impacted gross profit. In addition, some customers experienced their own labor constraints, resulting in an estimated $5 million of delayed commercial projects into 2020. We anticipate the efficiency savings from our timely completion of automation initiatives, among other actions, will help mitigate higher labor costs and allow us to accomplish our objectives in the year ahead,” says COO Christian Daes.

Full Year 2019 Results

Total revenues for the full year 2019 increased 16.2% to $430.9 million compared to $371 million in the prior year. Excluding the impact of unfavorable foreign currency exchange, total revenues increased 17.7% compared to the prior year.

Gross profit increased 13% year-over-year to a full year record of $135.8 million, representing a 31.5% gross margin, compared to $120.2 million, representing a 32.4% gross margin in the prior year. Operating income was $58.8 million compared to $47.2 million in the prior year.

Quanex First Quarter Net Sales Dip; Withdraws Prior Guidance

Quanex Building Products released its first quarter financial report, which ended on January 31, 2020. According to the report, net sales were $196.6 million, which represents a slight decrease when compared to the $196.8 million result in last year’s first quarter. U.S. fenestration sales segment resulted in $96.8 million, compared to $93.9 million in 2019.

The company has withdrawn its prior guidance for 2020. As a precautionary measure, and in an effort to increase its cash position and preserve financial flexibility due to uncertainty surrounding the pandemic, Quanex elected to draw an additional $50 million from its $325 million Senior Secured Revolving Credit Facility due 2023. The proceeds are available to be used for working capital and general corporate purposes. Quanex currently has approximately $70 million of cash on hand and approximately $100 million of capacity remaining under the credit facility.

“… we believe it is prudent to withdraw our prior guidance for 2020. That said, our balance sheet remains strong and we have a highly variable cost structure, which gives us the ability to rapidly reduce costs as demand dictates. As such, we feel our business is well-equipped to handle the challenges ahead and we are confident that we will weather this storm,” says George Wilson, president and CEO.

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