Tecnoglass(US:TGLS)2021-08-06 21:01Revenue and Sales Growth - Operating revenues increased by $39.8 million, or 48.5%, from $81.9 million in Q2 2020 to $121.7 million in Q2 2021[86] - Sales in the U.S. residential and commercial markets increased by $30.7 million, or 38.8%, from $79.1 million in 2020 to $109.9 million in 2021[87] - Single-family residential market sales surged by $25.1 million, or 159%, from $15.8 million in 2020 to $40.9 million in 2021, accounting for 33.6% of total sales in Q2 2021[87] - For the six months ended June 30, 2021, operating revenues increased by $63.4 million, or 37.4%, from $169.2 million in 2020 to $232.6 million[96] - Sales to Latin American markets, including Colombia, increased by $10.6 million, or 94.0%, as customers resumed activities post-lockdowns[98] Profitability - Gross profit rose by $16.8 million, or 52.8%, to $48.6 million in Q2 2021, resulting in a gross profit margin of 39.9%[90] - Gross profit for the first six months of 2021 increased by $31.5 million, or 50.7%, to $93.7 million, with a gross profit margin of 40.3%[99] - The company recorded a net income of $19.3 million for Q2 2021, compared to $16.1 million in Q2 2020[95] - For the six months ended June 30, 2021, the company recorded a net income of $27.5 million, a significant improvement compared to a net loss of $2.6 million for the same period in 2020[106] Operating Expenses and Cash Flow - Operating expenses increased by $3.7 million, or 22.1%, from $16.6 million in Q2 2020 to $20.2 million in Q2 2021, with operating expenses as a percentage of sales improving from 20.2% to 16.6%[91] - Operating activities generated approximately $60.8 million in cash flow for the six months ended June 30, 2021, compared to $24.8 million in the same period of 2020[113] - The main source of operating cash was trade accounts payables, which generated $24.6 million in the first half of 2021, compared to a use of $10.4 million in the same period of 2020[114] Financial Position and Investments - Cash and cash equivalents increased to approximately $100.3 million as of June 30, 2021, up from $66.9 million as of December 31, 2020[107] - The company invested $19.3 million in capital expenditures during the six months ended June 30, 2021, compared to $8.3 million in the same period of 2020[110] - Financing activities resulted in a cash outflow of $6.8 million for the six months ended June 30, 2021, primarily due to the redemption of $210 million in unsecured senior notes[116] Tax and Interest Expenses - Interest expense decreased by $5.1 million, or 46.2%, to $6.0 million for the six months ended June 30, 2021, due to a new financing arrangement[104] - The effective income tax rate for the six months ended June 30, 2021 was 29%, compared to -40% for the same period in 2020, reflecting changes in foreign currency transaction losses[105] Strategic Initiatives - A joint venture with Saint-Gobain was established, acquiring a 25.8% interest in Vidrio Andino for $45 million, with plans to build a new plant in Galapa, Colombia[111] - The new $300 million Senior Secured Credit Facility is expected to save approximately $12 million annually in interest expenses[108] - The company anticipates that working capital will continue to benefit cash flow for the full year 2021, providing flexibility to service obligations[109]