Financial Data and Key Metrics Changes - The company reported revenues of $192.6 million for Q1 2024, a decrease of 4.9% year-over-year, primarily due to lower single-family residential revenues and maintenance downtime [11][41] - Adjusted EBITDA for Q1 2024 was $51 million, with an adjusted EBITDA margin of 26.5% [17] - The net debt-to-adjusted EBITDA ratio improved to a record low of 0.1x as of March 31, 2024, indicating strong financial health [12][20] Business Line Data and Key Metrics Changes - Single-family residential revenues were $73 million in Q1 2024, down from $84 million in the prior year, attributed to higher interest rates affecting demand [15] - Multifamily commercial revenues remained strong, supported by a record backlog of $960 million, reflecting healthy demand in key markets [35][37] - The company is experiencing a positive response to its vinyl product line, with expectations to ramp up deliveries in the latter half of 2024 [6][16] Market Data and Key Metrics Changes - The backlog has consistently grown, reaching $916 million, which is 1.8 times the last twelve months' multifamily and commercial revenues [14][37] - Orders for single-family residential products increased over 12% year-over-year in March and April, indicating a potential recovery in this segment [15][35] - The company is expanding its geographic presence in Florida and other southern states, benefiting from favorable demographic trends [38][40] Company Strategy and Development Direction - The company is focused on geographic diversification and strengthening customer relationships to capture additional market value [5] - The strategic entry into the vinyl market is expected to significantly expand the addressable market and drive organic growth [6][16] - The company aims to maintain a strong book-to-bill ratio, which stood at 1.2x as of Q1 2024, ensuring visibility into future revenues [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about underlying business drivers despite macroeconomic challenges, with a robust project pipeline supporting healthy activity [5][11] - The company provided three scenarios for 2024 revenue growth, with a base case of 5% growth, resulting in approximately $875 million in revenues [21][22] - Management acknowledged the impact of interest rates on consumer purchasing decisions but remains confident in the strength of key geographies and new product initiatives [22][35] Other Important Information - The company generated strong cash flow from operations of $33 million in Q1 2024, with free cash flow of $24 million [12][19] - The company returned $4.2 million to shareholders through dividends during the quarter and has approximately $26 million available for share repurchases [44] Q&A Session Summary Question: What is the expected split between commercial and residential revenue? - The company expects commercial to account for about 57% of total revenue, with residential at 43% [50] Question: What are the expectations for sales, gross margin, and EBITDA for Q2? - The company is modeling sales around $2.10 to $2.25, with expectations for improved gross margins due to operating leverage [54] Question: Can you provide details on the vinyl windows initiative? - The company is ramping up its vinyl product line and expects significant improvements in the second half of the year as the complete line is developed [61][62] Question: What is the mix between new construction and repair & remodeling in residential? - The mix is roughly two-thirds repair and remodeling and one-third new home construction, with expectations for a shift towards a more balanced mix as interest rates stabilize [63][64] Question: How is the backlog expected to grow? - The backlog is expected to continue growing due to strong quoting and bidding activity, particularly in Florida [80]

Financial Performance - FY23 revenues reached $833.3 million [25], a 16.3% year-over-year increase [34] - Adjusted EBITDA for FY23 was $304.1 million [25], representing a 14.5% year-over-year growth and a 36.5% margin [34] - Operating cash flow for FY23 was $138.8 million [26], driven by higher profitability and enhanced working capital management [34] - Adjusted net income for FY23 was $189.3 million, or $3.98 per diluted share, up 19.4% year-over-year [34] Backlog and Growth - Record backlog of $870.1 million [6, 23, 28], up approximately 20% year-over-year [7, 23, 34], with a book-to-bill ratio of 1.2x [32, 34] - U S backlog accounts for 94% of the total backlog, amounting to $814 million [23, 28] - Multi-family and commercial activity increased by 21.4% year-over-year to $497.9 million [34] - Single-family residential market grew by 9.5% year-over-year to $335.4 million [34] Market and Strategy - Over 85% of Tecnoglass' total revenues are considered Green Revenues [20] - Single-family residential revenues accounted for 42% of U S revenues in both Q4 2023 and full year 2023 [37, 56] - The company has entered the vinyl windows market, which more than doubles the addressable market, with a potential to add approximately $300 million in annual revenues [57, 59]

Financial Data and Key Metrics Changes - The company reported record total revenues of $833 million for 2023, with adjusted EBITDA of $304 million and gross profit of $391 million, maintaining a gross margin of approximately 47% despite foreign exchange headwinds [32][33][80] - For the fourth quarter, total revenues decreased by 7.8% year-over-year to $194.6 million, primarily due to lower single-family residential revenues, while full-year revenues increased by 16.3% year-over-year [50][51] - Adjusted EBITDA for the fourth quarter was $62 million, representing a margin of 31.8%, while full-year adjusted EBITDA increased by 14.5% year-over-year to a record $304.1 million, with a margin of 36.5% [79] Business Line Data and Key Metrics Changes - Single-family residential revenues for the fourth quarter were $77.1 million, down from $85.1 million in the prior year quarter, attributed to higher interest rates affecting activity [47][76] - The multifamily and commercial business performed in line with internal expectations, contributing to the overall revenue growth [50] - The company expects the vinyl initiative to contribute $20 million to $25 million in total orders, with significant growth anticipated in the second half of the year [6][49] Market Data and Key Metrics Changes - The company has seen a notable increase in single-family housing permits in Florida, indicating resilient activity in key markets despite a challenging macroeconomic environment [75] - The backlog grew to a record $870.1 million at year-end, reflecting strong demand in multi-family and commercial projects [41][72] Company Strategy and Development Direction - The company aims to drive above-market growth through strategic entry into the vinyl window market, geographic diversification, and strengthening customer relationships [34][42] - The focus remains on maintaining industry-leading margins while expanding the dealer base and introducing new products [76][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit revenue growth, supported by a strong backlog and favorable demographic trends in key regions [84][88] - The company anticipates a stable FX rate and increased revenue mix from installations, which should positively impact gross margins in 2024 [57][86] Other Important Information - The company plans to reduce capital expenditures significantly in 2024, with expectations of $40 million to $45 million, allowing for flexibility in share buybacks and dividends [12][81] - A 22% increase in the quarterly dividend to $0.11 per share was approved, reflecting the company's commitment to returning cash to shareholders [53] Q&A Session Summary Question: What is the expected impact of the vinyl initiative on revenue growth? - Management indicated that the vinyl initiative is expected to contribute significantly to revenue, particularly in the second half of the year, with early feedback being encouraging [6][49] Question: How does the company view the current residential business environment? - Management noted that the residential business is expected to grow, with recent improvements in interest rates leading to increased enthusiasm among customers [7][8] Question: What are the expectations for gross margins and EBITDA in the first quarter of 2024? - Management expects gross margins to be in line with the fourth quarter, with EBITDA potentially being slightly lower due to the revenue mix [91][92]

Part I [Business](index=8&type=section&id=Item%201.%20Business%2E) Tecnoglass is a vertically integrated manufacturer of architectural glass, windows, and related aluminum/vinyl products for commercial and residential markets, primarily in the U.S. (95% of revenue) - Tecnoglass is a leading vertically integrated manufacturer of architectural glass and windows, with the United States accounting for **95% of its revenues**[29](index=29&type=chunk) - The company operates from a **5.6 million square foot**, state-of-the-art manufacturing complex in Barranquilla, Colombia[29](index=29&type=chunk)[33](index=33&type=chunk) - Tecnoglass has significantly penetrated the U.S. residential market, with sales growing from less than **5% in 2017 to 40.3% of total sales in 2023**[37](index=37&type=chunk)[64](index=64&type=chunk) - A key competitive advantage is its vertically integrated model, strengthened by a joint venture with Saint-Gobain, providing a secure supply of float glass[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - As of December 31, 2023, the company had **8,531 employees**, none of whom are represented by a union[97](index=97&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors%2E) The company faces a range of risks, including intense market competition, volatility in raw material costs, reliance on third-party suppliers, and economic instability in Colombia - The company operates in highly competitive markets, facing pressure on pricing and margins from competitors like Viracon, PGT, and Oldcastle Glass[102](index=102&type=chunk) - Reliance on a single primary production facility in Barranquilla, Colombia, subjects the company to concentrated operational risks[126](index=126&type=chunk) - Operations are subject to economic, political, and currency risks associated with Colombia, with approximately **24% of 2023 expenses in Colombian pesos** and **97% of revenues from outside Colombia**[142](index=142&type=chunk)[155](index=155&type=chunk)[173](index=173&type=chunk) - The company is a "controlled company" as Energy Holding Corporation beneficially owns approximately **52.4% of outstanding ordinary shares**, giving it significant influence over shareholder-approved transactions[149](index=149&type=chunk)[206](index=206&type=chunk) - An anti-dumping duty investigation on aluminum extrusions from Colombia could adversely impact the company's results if duties are imposed[138](index=138&type=chunk) [Unresolved Staff Comments](index=49&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments%2E) The company reports no unresolved staff comments from the SEC - None[213](index=213&type=chunk) [Cybersecurity](index=49&type=section&id=Item%201C.%20Cybersecurity) Tecnoglass has implemented a cybersecurity risk management program based on the NIST Cybersecurity Framework, overseen by the Board's Audit Committee, and has not experienced material attacks to date - The company's information security framework is based on the NIST Cybersecurity Framework[214](index=214&type=chunk) - The Audit Committee of the Board oversees cybersecurity risk and receives regular reports from management[216](index=216&type=chunk) - To date, the company has not experienced any attacks that led to interruptions, delays in service, or loss of personal information[218](index=218&type=chunk) [Properties](index=50&type=section&id=Item%202.%20Properties%2E) The company owns and operates 5.6 million square feet of manufacturing facilities, including a 5.4 million square foot complex in Colombia and a 123,399 square foot facility in Florida - The main manufacturing complex in Barranquilla, Colombia, spans **5.4 million square feet**[220](index=220&type=chunk) - The company also owns a **123,399 square foot** manufacturing and warehousing facility in Miami-Dade County, Florida[220](index=220&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings%2E) The company is involved in various legal matters arising from the ordinary course of business, none of which are expected to have a material adverse effect - The company is involved in legal matters from the regular course of business, but there are no indications that such claims will result in a material adverse effect[223](index=223&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures%2E) This item is not applicable to the company - Not Applicable[224](index=224&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=51&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities%2E) Tecnoglass's ordinary shares trade on the NYSE, and the company has paid regular quarterly dividends since August 2016, repurchasing **678,065 shares** for approximately **$23.5 million** in Q4 2023 - The company's ordinary shares are listed on the New York Stock Exchange under the symbol "**TGLS**"[226](index=226&type=chunk) - The company has paid regular quarterly dividends since August 2016, with future payments contingent on financial condition and Board discretion[228](index=228&type=chunk) Share Repurchase Activity (Q4 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program | |:---|---:|---:|---:|---:| | Q4 2023 Total | 678,065 | $34.7 | 676,515 | $26,527,637 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) In fiscal year 2023, Tecnoglass's revenue grew **16.3% to $833.3 million**, with net income rising to **$183.5 million**, maintaining strong liquidity and investing **$87.3 million** in capital expenditures Consolidated Results of Operations (in thousands) | | 2023 | 2022 | 2021 | |:---|---:|---:|---:| | **Operating revenues** | **$833,265** | **$716,570** | **$496,785** | | Gross profit | $390,934 | $349,499 | $202,584 | | Operating income | $259,762 | $226,415 | $116,985 | | **Net income** | **$183,510** | **$156,412** | **$68,428** | | Income attributable to parent | $182,882 | $155,743 | $68,151 | - Cash and cash equivalents increased to **$129.5 million** as of December 31, 2023, from **$103.7 million** in 2022, with cash from operating activities at **$138.8 million** in 2023[253](index=253&type=chunk)[278](index=278&type=chunk) - Capital expenditures in 2023 were **$87.3 million**, primarily for automation of production lines, aluminum capacity expansion, and establishing new vinyl window assembly lines[256](index=256&type=chunk)[259](index=259&type=chunk) [Comparison of 2023 vs. 2022](index=59&type=section&id=Comparison%20of%20years%20ended%20December%2031%2C%202023%20and%20December%2031%2C%202022) For the year ended December 31, 2023, operating revenue increased by **16.3% to $833.3 million**, while gross margin declined by **190 basis points to 46.9%**, and net income rose to **$183.5 million** Financial Performance Comparison (2023 vs. 2022) | Metric | 2023 | 2022 | Change | % Change | |:---|---:|---:|---:|---:| | Operating Revenue | $833.3M | $716.6M | +$116.7M | +16.3% | | Gross Profit | $391.0M | $349.5M | +$41.5M | +11.9% | | Gross Margin | 46.9% | 48.8% | -190 bps | - | | Net Income | $183.5M | $156.4M | +$27.1M | +17.3% | - U.S. sales grew by **$106.7 million (15.5%)**, with commercial sales up **20.3%** and single-family residential sales up **9.5%**[261](index=261&type=chunk) [Comparison of 2022 vs. 2021](index=60&type=section&id=Comparison%20of%20years%20ended%20December%2031%2C%202022%20and%20December%2031%2C%202021) For the year ended December 31, 2022, operating revenue increased by **44.2% to $716.6 million**, gross profit rose **72.5% to $349.5 million**, and net income more than doubled to **$156.4 million** Financial Performance Comparison (2022 vs. 2021) | Metric | 2022 | 2021 | Change | % Change | |:---|---:|---:|---:|---:| | Operating Revenue | $716.6M | $496.8M | +$219.8M | +44.2% | | Gross Profit | $349.5M | $202.6M | +$146.9M | +72.5% | | Gross Margin | 48.8% | 40.8% | +800 bps | - | | Net Income | $156.4M | $68.4M | +$88.0M | +128.6% | - U.S. sales increased by **$232.0 million (50.8%)**, driven by a **72.8%** increase in single-family residential sales and a **36.9%** increase in commercial sales[269](index=269&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2E) The company is exposed to market risks from interest rates, foreign currency exchange rates, and commodity prices, with a **100 basis point** interest rate rise decreasing net earnings by **$0.5 million** and a **5%** COP appreciation decreasing net earnings by **$6.8 million** - A **100 basis point** increase in interest rates would decrease net earnings by approximately **$0.5 million**[295](index=295&type=chunk) - A **5%** appreciation of the Colombian Peso relative to the U.S. Dollar would result in a **$6.8 million** decrease to net earnings[296](index=296&type=chunk) - The company is subject to market risk from volatility in aluminum prices, a principal raw material[299](index=299&type=chunk) [Financial Statements and Supplementary Data](index=64&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%2E) This section contains the company's consolidated financial statements for fiscal years 2023, 2022, and 2021, along with the independent auditor's report from PwC - The consolidated financial statements and the report of the independent registered public accounting firm are included, starting on page F-1[301](index=301&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%209A.%20Controls%20and%20Procedures%2E) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with PwC also issuing an unqualified opinion - Management concluded that disclosure controls and procedures were effective as of December 31, 2023[304](index=304&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2023, based on the COSO 2013 framework[307](index=307&type=chunk)[308](index=308&type=chunk) - No material changes were made to internal control over financial reporting during the most recent fiscal quarter[309](index=309&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=67&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance%2E) This section lists the company's directors and executive officers, confirms the adoption of a code of conduct, and identifies Julio Torres as the "audit committee financial expert" Directors and Executive Officers | Name | Position | |:---|:---| | José M. Daes | Chief Executive Officer and Director | | Christian T. Daes | Chief Operating Officer and Director | | Santiago Giraldo | Chief Financial Officer | | Lorne Weil | Non-Executive Chairman of the Board | | Luis Fernando Castro Vergara | Director | | Anne Louise Carricarte | Director | | Julio A. Torres | Director | | Carlos Alfredo Cure Cure | Director | - The company has a standing audit committee composed of independent directors Carlos Cure, Luis Fernando Castro, and Julio Torres[329](index=329&type=chunk) - The Board has determined that Julio Torres qualifies as an "audit committee financial expert"[330](index=330&type=chunk) [Executive Compensation](index=70&type=section&id=Item%2011.%20Executive%20Compensation%2E) Executive compensation is designed to attract and retain talent, with CEO José M. Daes and COO Christian T. Daes each receiving **$3,969,000** in total compensation for 2023, resulting in an **868 to 1** CEO-to-median-employee pay ratio 2023 Summary Compensation Table (Named Executive Officers) | Name and Principal Position | Year | Salary | Bonus | Total | |:---|---:|---:|---:|---:| | Jose M. Daes, CEO | 2023 | $2,940,000 | $1,029,000 | $3,969,000 | | Christian T. Daes, COO | 2023 | $2,940,000 | $1,029,000 | $3,969,000 | | Santiago Giraldo, CFO | 2023 | $594,000 | $207,900 | $801,900 | - The CEO pay ratio for 2023 was **868 to 1**, with the CEO's total compensation at **$3,969,000** and the median employee's at **$4,579**[351](index=351&type=chunk)[352](index=352&type=chunk) - As of December 31, 2023, no outstanding equity awards had been granted to any executive officers[353](index=353&type=chunk) - Non-employee directors receive annual cash compensation of **$75,522**, with additional fees for committee chairs and members[357](index=357&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=77&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters%2E) As of December 31, 2023, Energy Holding Corporation, controlled by the Daes family, is the largest beneficial owner, holding **52.4%** of the company's ordinary shares, with **1,593,917** shares available for future issuance under the 2013 Long-Term Equity Incentive Plan - Energy Holding Corporation beneficially owns **24,628,108 ordinary shares**, representing **52.4%** of the company[364](index=364&type=chunk) - CEO José M. Daes and COO Christian T. Daes have indirect ownership interests through Energy Holding Corporation but hold no shares directly[364](index=364&type=chunk)[366](index=366&type=chunk) - The 2013 Long-Term Equity Incentive Plan has **1,593,917 ordinary shares** available for future issuance, with no awards granted as of year-end 2023[365](index=365&type=chunk)[367](index=367&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=81&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence%2E) The company engages in related-party transactions, including **$32.0 million** in material purchases from Vidrio Andino and **$3.3 million** in charitable contributions, with the board determining five directors are independent - In 2023, the company purchased **$32.0 million** of materials from its joint venture, Vidrio Andino, and had outstanding payables of **$3.9 million** at year-end[378](index=378&type=chunk) - The company made charitable contributions of **$3.3 million** to Fundacion Tecnoglass-ESWindows in 2023[370](index=370&type=chunk) - On November 10, 2023, the company acquired the remaining **30%** of ESMetals from Incantesimo SAS, a company affiliated with a senior manager, for **$5.5 million**[372](index=372&type=chunk) - The Board has determined that Messrs. Weil, Cure Cure, Castro Vergara, Torres and Ms. Carricarte qualify as independent directors[385](index=385&type=chunk) [Principal Accountant Fees and Services](index=84&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services%2E) The company paid its independent registered public accounting firm, PwC, a total of **$857,412** in fees for fiscal year 2023, primarily for audit services, all of which were pre-approved by the Audit Committee Accountant Fees (PwC) | Fee Type | 2023 | 2022 | |:---|---:|---:| | Audit Fees | $854,512 | $692,754 | | Audit-Related Fees | $0 | $376 | | All Other Fees | $2,000 | $2,900 | | **Total Fees** | **$857,412** | **$696,030** | - All audit and non-audit services provided by PwC were pre-approved by the company's audit committee[387](index=387&type=chunk)[389](index=389&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=85&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules%2E) This section provides an index of all financial statements, schedules, and exhibits filed with the Form 10-K, including articles of association, material contracts, and certifications - This section provides an index of all financial statements, schedules, and exhibits filed with the Form 10-K[390](index=390&type=chunk)[392](index=392&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm](index=89&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PwC issued an unqualified opinion on Tecnoglass's consolidated financial statements and internal control over financial reporting, identifying "Revenue Recognition - Estimated Costs to Complete Fixed Price Contracts" as a Critical Audit Matter - The auditor, PwC, issued an unqualified opinion on both the consolidated financial statements and the effectiveness of internal control over financial reporting[407](index=407&type=chunk) - A Critical Audit Matter was identified related to "Revenue Recognition - Estimated Costs to Complete Fixed Price Contracts" due to the significant management judgment required in estimating costs[414](index=414&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk) [Consolidated Balance Sheets](index=92&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets were **$962.7 million**, total liabilities **$414.7 million**, and total shareholders' equity grew substantially to **$548.0 million** Key Balance Sheet Items (in thousands) | | Dec 31, 2023 | Dec 31, 2022 | |:---|---:|---:| | Cash and cash equivalents | $129,508 | $103,671 | | Total Current Assets | $535,760 | $432,134 | | **Total Assets** | **$962,717** | **$734,308** | | Total Current Liabilities | $235,886 | $209,802 | | **Total Liabilities** | **$414,697** | **$383,983** | | **Total Shareholders' Equity** | **$548,020** | **$350,325** | [Consolidated Statements of Operations and Comprehensive Income](index=93&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the year ended December 31, 2023, total operating revenues were **$833.3 million**, operating income **$259.8 million**, net income **$183.5 million**, and diluted earnings per share **$3.85** Key Income Statement Items (in thousands) | | 2023 | 2022 | |:---|---:|---:| | Total operating revenues | $833,265 | $716,570 | | Gross profit | $390,934 | $349,499 | | Operating income | $259,762 | $226,415 | | **Net income** | **$183,510** | **$156,412** | | **Diluted income per share** | **$3.85** | **$3.27** | [Consolidated Statements of Cash Flows](index=96&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the year ended December 31, 2023, net cash provided by operating activities was **$138.8 million**, with **$76.0 million** used in investing activities and **$42.8 million** in financing activities, resulting in a **$25.8 million** net increase in cash Key Cash Flow Items (in thousands) | | 2023 | 2022 | |:---|---:|---:| | Cash Provided by Operating Activities | $138,827 | $141,920 | | Cash Used in Investing Activities | ($76,017) | ($72,584) | | Cash Used in Financing Activities | ($42,768) | ($44,801) | | **Net Increase in Cash** | **$25,837** | **$18,660** | | Cash at End of Period | $129,508 | $103,671 |

Exhibit 99.1 Tecnoglass Reports Record Financial Metrics Across the Board for Full Year 2023 - Full Year Revenues Increased 16% to a Record $833.3 Million Through Entirely Organic Growth - - Full Year Net Income of $183.5 Million, or $3.85 Per Diluted Share; Full Year Adjusted Net Income of $189.3 Million, or $3.98 Per Diluted Share - - Full Year Adjusted EBITDA up 15% to an all-time high of $304.1 Million, Representing 36.5% of Revenues - - Record Full Year Gross Profit of $390.9 Million, Producing Gross M ...

13 3 Year Average ROE 3 Year Average ROIC Notes: Evolution of Revenue & Adjusted EBITDA Revenues Adjusted EBITDA Investment in top-class manufacturing facility to produce high-spec insulated glass Entered into JV agreement with Saint Gobain for secure float glass supply Investments in automation began, $25 mm of Capex invested during 2019 COVID-19 Pandemic Sales reps in expanding geographies building relationships with targeted general contractors, developers, architects & glazers Revenue increase of 44% Yo ...

Revenue and Profitability - Operating revenues increased by $9.0 million, or 4.4%, from $201.8 million in Q3 2022 to $210.7 million in Q3 2023, driven by U.S. market activity[96] - Gross profit for Q3 2023 was $90.5 million, a decrease of $14.8 million, or 14.0%, from $105.3 million in Q3 2022, with a gross profit margin of 43.0% compared to 52.2% in the prior year[97] - Net income for Q3 2023 was $46.1 million, compared to $46.9 million in Q3 2022, reflecting a stable performance despite revenue fluctuations[104] - For the nine months ended September 30, 2023, operating revenues increased by $133.2 million, or 26.4%, from $505.5 million in 2022 to $638.7 million in 2023[105] - Gross profit for the nine months ended September 30, 2023, increased by $68.7 million, or 28.7%, to $308.0 million, resulting in a gross profit margin of 48.2%[107] - The company recorded a net income of $147.0 million for the nine months ended September 30, 2023, compared to $101.3 million for the same period in 2022, reflecting a year-over-year increase of approximately 45.2%[113] Operating Expenses and Cash Flow - Operating expenses decreased by $5.6 million, or 16.1%, from $35.2 million in Q3 2022 to $29.5 million in Q3 2023, improving the operating expenses as a percentage of sales from 17.4% to 14.0%[98] - Operating expenses for the nine months ended September 30, 2023, increased by $9.1 million, or 10.1%, from $89.7 million to $98.8 million, but the percentage of sales improved from 17.7% to 15.5%[108] - Operating activities generated approximately $94.5 million in cash flow for the nine months ended September 30, 2023, compared to $92.1 million in the same period of 2022, showing a growth of about 2.6%[117] - Financing activities used $20.9 million in cash during the nine months ended September 30, 2023, a decrease from $41.2 million in the same period of 2022, indicating improved cash management[119] Market Performance - U.S. commercial market revenues increased by $91.0 million, or 34.9%, from $260.6 million in 2022 to $351.6 million in 2023, indicating strong growth in this segment[106] - Revenues from Latin-American markets increased by $5.3 million, or 22.4%, from $23.5 million in 2022 to $28.8 million in 2023, reflecting successful market expansion[106] Investments and Capital Expenditures - The company invested $73.8 million in capital expenditures during the nine months ended September 30, 2023, a significant increase from $51.4 million in the same period of 2022, representing a rise of approximately 43.5%[116] - The company utilized $62.5 million in investing activities during the nine months ended September 30, 2023, primarily for automation and expansion efforts, compared to $48.1 million in 2022[118] Tax and Interest Expenses - Interest expense for the nine months ended September 30, 2023, increased by $1.5 million, or 27.4%, to $6.9 million, primarily due to rising floating interest rates[111] - The effective income tax rate for the nine months ended September 30, 2023, was 30.1%, down from 32.3% in 2022, reflecting a favorable tax environment due to increased profits from US subsidiaries[112] Future Outlook - The company anticipates continued positive cash flow from operating activities through the end of 2023, providing flexibility to meet obligations over the next twelve months[115] - The company expects that current manufacturing operating capacity has reached approximately $1 billion, excluding incremental installation revenue capacity, indicating significant growth potential[116] Currency Impact - A 5% appreciation of the Colombian Peso relative to the US Dollar would result in a $1.0 million increase in annual revenues but a $6.0 million increase in costs, leading to a $5.0 million decrease in net earnings[122]

Financial Data and Key Metrics Changes - Total revenues increased by 4.4% year-over-year to $210.7 million for the third quarter, driven by growth in multifamily and commercial activity, as well as single-family residential revenues [10][104] - Adjusted EBITDA for Q3 2023 was $71.3 million, or 33.8% of revenues, compared to $78.5 million, or 38.9% of revenues in the prior year quarter, primarily due to a non-cash foreign exchange impact on gross margins [11][20] - The leverage ratio remained low at 0.2 times net debt-to-LTM adjusted EBITDA, down from 0.6 times in the prior year quarter, with a cash balance of $119 million and total liquidity of approximately $289 million [13] Business Line Data and Key Metrics Changes - Multifamily and commercial revenue increased by 6% year-over-year to $122.9 million, while single-family residential revenues grew by 2% year-over-year to a record of $87.8 million [103][104] - The company announced its entry into the vinyl window market, which represents an estimated 60% of the $26 billion architectural window market, expected to provide significant revenue growth opportunities [3][85] Market Data and Key Metrics Changes - The backlog grew to a record of $836 million at quarter end, with approximately two-thirds composed of medium and high-rise residential buildings, indicating strong demand in key markets [104][112] - The company is experiencing healthy demand in the Southeastern US, with new business wins and a resumption of previously delayed projects contributing to backlog growth [112] Company Strategy and Development Direction - The company is expanding geographically, particularly in the Florida market, and has relocated its global headquarters to Miami to align with its US-centric strategy [109][110] - The strategic entry into the vinyl window market is expected to double the addressable market and enhance geographical expansion opportunities [4][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in 2024, supported by a strong backlog and the anticipated impact of new vinyl products [22][122] - The company noted that while there have been project delays due to higher lending standards, the overall demand remains strong, particularly in the commercial sector [137][155] Other Important Information - The company has executed approximately 40% of its $50 million share repurchase program since mid-year, demonstrating a commitment to returning value to shareholders [106][130] - Management expects gross margins to be in the range of 47% to 49% for the full year 2023, with strong cash flow generation anticipated for the remainder of the year [14][119] Q&A Session All Questions and Answers Question: Can you provide specifics on the guidance for 2024 growth? - Management indicated that the guidance pertains to revenue growth, with expectations for double-digit growth across both residential and commercial segments [15][134] Question: What is the impact of customer project delays on sales and EBITDA? - Management noted that approximately $10 million in commercial projects were delayed due to banks not lending, but they expect these projects to proceed now that lending has resumed [17][137] Question: How do you see the market share in Florida and single-family orders? - Management reported steady growth in market share in the Southeast and noted that single-family orders are expected to increase significantly with the introduction of vinyl products [26][31] Question: What are the expectations for SG&A in Q4? - SG&A is expected to trend similarly to Q3, with lower shipping and commission expenses contributing to a more favorable cost structure [19][158] Question: How is the company addressing pricing pressures in the residential market? - Management stated that pricing has remained stable, with only minor reductions from some vendors to maintain competitiveness [79][147]

FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35436 TECNOGLASS INC. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands 98-1271120 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - Total revenues in the second quarter increased 33% year-over-year to $225.3 million, marking the tenth consecutive quarter of double-digit organic revenue growth [77][82] - Adjusted EBITDA for the second quarter increased 55.8% to a record $85 million compared to $54.6 million in the prior year quarter, with an adjusted EBITDA margin of 37.7% [33][86] - Gross profit increased 49% to $109.7 million, representing a gross margin of 48.7%, compared to a gross margin of 43.5% in the prior year quarter [33][84] Business Line Data and Key Metrics Changes - Single-family residential revenues grew organically by 15% year-over-year to a record $86.9 million, driven by dealership growth and geographic expansion [32][102] - Multifamily and commercial activity saw significant growth, contributing to the overall revenue increase [82][72] - The backlog at quarter end reached a record $797 million, up 19% year-over-year, indicating strong bidding activity and project wins [79][72] Market Data and Key Metrics Changes - The South region, where the company has its largest presence, saw an expansionary ABI reading of 50.5, supporting healthy levels of activity and demand [30] - The company noted strong quoting activity in regions like Florida, New York, Maryland, and Texas, while California showed a decline in quotes [17][18] Company Strategy and Development Direction - The company is focused on expanding its operational capacity by over 40% to meet growing demand for high-performance products [29][73] - There is a strategic emphasis on diversifying into the more profitable single-family residential market, which is expected to drive future growth [83][84] - The company plans to open more showrooms in Texas and other western states to capture additional market share [26][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that 2024 could be the best year ever for the company, driven by strong demand and operational improvements [97][98] - The company expects gross margins to stabilize in the range of 48% to 50% for the full year 2023, despite some variability due to market conditions [84][86] - Management highlighted that the appreciation of the Colombian peso has positively impacted operating margins and is expected to remain stable [109][126] Other Important Information - The company maintained a low leverage ratio of 0.2 times net debt to LTM adjusted EBITDA, with total liquidity of approximately $275 million [13][110] - Cash flow from operations was strong, excluding the timing of annual tax payments, with expectations for improved cash flow generation in the second half of the year [35][112] Q&A Session Summary Question: Can you discuss the overall environment and backlog strength? - Management noted strong quoting activity across various regions, with a particularly strong performance in Florida and Texas, while California showed a decline [17][18] Question: What are the expectations for gross margins in the second half of the year? - Management expects gross margins to stabilize around the current levels achieved in Q2, influenced by the Colombian peso and product mix [39][40] Question: How is the residential market performing, especially outside Florida? - The company is gaining market share in new regions, with a focus on learning and adapting to new markets before scaling up operations [42][46] Question: What is the CapEx budget for 2023 and expectations for 2024? - The anticipated CapEx for 2023 is expected to be between $40 million to $45 million, with a significant reduction planned for 2024 [25][48] Question: How are the new showrooms performing? - The showrooms are performing well, with a focus on careful expansion to ensure quality service and product delivery [125][130]