Industry Financials Improve, But Remain Mostly Below Last Year’s Levels

The effects of the COVID-19 pandemic hit most glass and glazing companies’ financials earlier in the year, with improved results reported by many in the second half of 2020. While this is good news, revenue and operating profit dollars are still below last year’s levels. However, certain segments are proving to bounce back quicker.

Apogee Enterprises Inc.

Apogee Enterprises Inc.’s second-quarter 2021 revenue was $319.5 million, compared to $357.1 million in the second quarter of fiscal year 2020, reflecting COVID-19 and market-related volume declines in three of the company’s segments. That’s according to the company’s fiscal 2021 second-quarter results.

Earnings were $0.67 per diluted share, compared to $0.72 per diluted share in the prior year period, reflecting the lower revenue, partially offset by cost savings and improved productivity. Adjusted earnings were $0.73 per diluted share, compared to $0.72 in the prior year. Adjusted results excluded $2.3 million of pre-tax costs related to COVID-19 and acquired project matters.

NSG Group

While the COVID-19 pandemic continues to affect the NSG Group’s year-over-year revenue and operating profit comparisons, demand recovered significantly from the first to second quarter of 2021. This was due to global easing of lockdowns, according to the group’s FY2021 2nd Quarter Consolidated Financial Results for the period of July 1-September 30, 2020.

The company’s Q2 2021 revenue was $1.25 billion*, compared to $1.36 billion during the same period last year. NSG Group’s operating profit was $36.6 million in the second quarter of FY2021, down from $58.9 million in the same quarter of FY2020. However, that is an improvement from the first quarter, which saw an operating loss of $5.6 million.

Second quarter year-over-year comparisons don’t show the entire picture of how hard the glass manufacturer was hit by pandemic measures. In the first half of FY2021, NSG Group’s total revenue was $2.14 billion. That’s down from $2.78 billion in the first half of FY2020. More significantly, the company’s first half 2021 operating profit was less than a quarter of what it was in the same period last year. The company’s first half 2021 operating profit was $30.9 million, a sharp decline from $143.7 million in the same period of FY2020. This largely was driven by operating losses in its automotive and “other” segments.

*Editor’s Note: The financial results were converted from Japanese Yen to U.S. dollars on November 5, 2020.

Glaston Corp.

The COVID-19 pandemic continues to impact Glaston Corp.’s orders received and net sales, according to the company’s third quarter interim report.

A comparison of the first nine months of 2020 (January through September) with the pro forma financial information from the same period in 2019 shows a similar trend to the third quarter year-over-year results. The unaudited pro forma financial information presented in the interim report is presented as if the acquisition of Bystronic glass, which occurred in April 2019, would have already been completed on January 1, 2019.

Tecnoglass Inc.

Third quarter revenues and gross profit for Tecnoglass Inc. were near or more than those of the same period last year. Total revenues for the third quarter of 2020, which ended September 30, 2020, were $103.3 million compared to $108.5 million in the prior year quarter. U.S. revenues of $95.7 million, which represented 93% of total revenues, grew 3.1% compared to $92.8 million in the prior year quarter, primarily driven by strong growth in residential activity.

The contribution of U.S. revenue growth to total revenues was more than offset by lower revenue from Colombia and other Latin American regions. Changes in foreign currency exchange rates had an adverse impact of $0.9 million on Colombia and total revenues in the quarter.

Based on the company’s current invoicing schedule and underlying market demand, it is providing a full year 2020 adjusted EBITDA outlook of $95 million to $100 million. At the midpoint, this outlook implies adjusted EBITDA growth of approximately 6% for the full year and 18% for the fourth quarter on a year-over-year basis, according to chief financial officer Santiago Giraldo.

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