Tecnoglass Inc (TGLS) 2023 Q4 法說會逐字稿

Greetings. Welcome to the Tecnoglass, Inc. fourth quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 Tecnoglass, Inc. 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行問答環節。（操作員說明）請注意，本次會議正在錄製中。

I would now like to turn the conference over to Brad Cray, Investor Relations. Thank you. You may begin.

我現在想將會議交給投資者關係部門的布拉德·克雷 (Brad Cray)。謝謝。你可以開始了。

Thank you for joining us for Tecnoglass' fourth quarter and full year 2023 conference call. A copy of the slide presentation to accompany this call may be obtained in the Investors section of the Tecnoglass website. Our speakers for today's call are Chief Executive Officer, José Manuel Daes; Chief Operating Officer, Chris Daes; and Chief Financial Officer, Santiago Giraldo.

感謝您參加 Tecnoglass 第四季和 2023 年全年電話會議。您可以在 Tecnoglass 網站的投資者部分取得本次電話會議隨附的幻燈片簡報的副本。今天電話會議的發言人是執行長 José Manuel Daes；營運長克里斯·戴斯；財務長聖地牙哥‧吉拉爾多 (Santiago Giraldo)。

I'd like to remind everyone that 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 Tecnoglass' current expectations or beliefs and are subject to uncertainty and changes in circumstances.

我想提醒大家，本次電話會議中討論的事項，除歷史資訊外，均為 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括有關未來財務業績、未來增長和未來收購的陳述。這些陳述是基於 Tecnoglass 當前的期望或信念，並可能受到不確定性和情況變化的影響。

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 Tecnoglass' business.

由於經濟、業務、競爭和/或監管因素的變化以及影響 Tecnoglass 業務營運的其他風險和不確定性，實際結果可能與本聲明中明示或暗示的結果有重大差異。

These risks, uncertainties and contingencies are indicated from time-to-time in Tecnoglass' filings with the SEC. The information discussed during the call is presented in light of such risks.

Tecnoglass 向 SEC 提交的文件中會不時指出這些風險、不確定性和意外事件。電話會議中討論的資訊是根據此類風險提出的。

Further, investors should keep in mind that Tecnoglass' financial results in any particular period may not be indicative of future results. Tecnoglass 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.

此外，投資者應記住，Tecnoglass 在任何特定期間的財務表現可能並不代表未來的表現。Tecnoglass 沒有義務並明確否認有任何義務更新或更改其前瞻性陳述，無論是由於新資訊、未來事件、假設變更或其他原因。

I will now turn the call over to José Manuel, beginning on slide number 4.

我現在將把電話轉給何塞·曼努埃爾（José Manuel），從第 4 號幻燈片開始。

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 vertically integrated business model are all reflected in our solid full year results.

謝謝布拉德，也謝謝大家參加今天的電話會議。我們很自豪地報告又一個出色的一年，其特點是強勁的營運成就和許多關鍵財務指標的創紀錄的財務表現。我們各業務領域對卓越的不懈追求以及我們創新的垂直整合業務模式都體現在我們穩健的全年業績中。

During 2023, we produced record total revenues of $833 million, achieving a record adjusted EBITDA of $304 million and produced record gross profit 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 vinyl end market.

2023 年，我們的總收入達到創紀錄的 8.33 億美元，調整後 EBITDA 達到創紀錄的 3.04 億美元，毛利創紀錄的 3.91 億美元。我們很高興能取得這些成果，同時保持業界領先的彈性利潤狀況。透過策略性進入高端乙烯基市場，我們的目標市場增加了一倍以上。

We relocated our global headquarters to Miami, Florida, aligning with over 95% of our revenues sold from key US 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.

我們將全球總部遷至佛羅裡達州邁阿密，與我們 95% 以上的收入來自美國主要市場的情況一致。我們對營運資金的審慎管理使我們今年產生了 1.39 億美元的可觀營運現金流。同時，我們保持了強勁的資產負債表，為未來的成長和股東的額外回報提供了充足的靈活性。

And finally, we completed our strategic investment to expand operational capacity by 40% to roughly $1.2 billion of revenue, including installing. We have been experiencing healthy multi-family commercial demand from both high demand from our innovative products 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.

最後，我們完成了戰略投資，將營運能力擴大了 40%，收入約為 12 億美元，其中包括安裝。由於我們的創新產品的高需求以及我們主要地區商業活動的增加，我們一直在經歷健康的多戶商業需求。這導致年底積壓訂單增加至創紀錄的 8.701 億美元。

We continue to gain market share in key geographies, despite a challenging macroeconomic environment. We have also taken a disciplined approach to managing costs. We are leveraging our vertically integrated structure and try out (inaudible) 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 foreign exchange headwinds in the back half of the year.

儘管宏觀經濟環境充滿挑戰，我們仍繼續在關鍵地區獲得市場份額。我們也採取嚴格的方法來管理成本。我們正在利用我們的垂直整​​合結構並嘗試（聽不清楚）自動化投資來提高營運效率。我們的全年毛利率約為 47%，這一點顯而易見。儘管之前討論過下半年的外匯逆風，但我們還是實現了這個目標。

Furthermore, our solid capital position has given us flexibility to invest in a structural enhancements, increase our dividend, repurchase share, and improve leverage. We are pleased to improve our net debt to adjusted EBITDA to a record low of 0.1 times as of December 31, 2023.

此外，我們堅實的資本狀況使我們能夠靈活地投資結構性改善、增加股利、回購股票和提高槓桿。截至 2023 年 12 月 31 日，我們很高興將淨債務與調整後 EBITDA 的比率降至 0.1 倍的歷史新低。

In summary, 2023 was another exceptional year for Tecnoglass. We are pleased with the value we have created from our returns oriented investments, which have positioned Tecnoglass as a leading architectural glass and window player.

總之，2023 年對 Tecnoglass 來說又是個不平凡的一年。我們對以回報為導向的投資所創造的價值感到滿意，這使 Tecnoglass 成為領先的建築玻璃和窗戶製造商。

Through our vertically integrated platform and strategic geographic positioning and proven growth investments, we have established an accessorial track record of cash flow generation. This is helping us create additional value for our shareholders as we look to 2024 and beyond.

透過我們的垂直整​​合平台、策略性地理定位和經過驗證的成長投資，我們建立了現金流產生的輔助記錄。展望 2024 年及以後，這有助於我們為股東創造額外價值。

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.

我們對 2023 年採取的策略行動充滿信心，並對透過有吸引力的乙烯基窗戶市場、加強客戶關係和地理多元化推動高於市場成長的前景感到興奮。

Based on our strong market growth and continued 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 headwinds for our industry.

基於我們強勁的市場成長和管道活動的持續強勁，我們預計明年收入將實現兩位數成長。這凸顯了即使我們的產業面臨充滿挑戰的宏觀逆風，我們也有能力繼續佔據市場份額。

I will now turn the call over to Chris to provide additional operating highlights.

我現在將把電話轉給克里斯，以提供更多營運亮點。

Thank you, José Manuel. Moving to slide number 5. Our fourth quarter results were in line with our expectations and reflect the resilience of our business model as we navigate a turbulent macroeconomic environment. Our results during the quarter demonstrated our ability to leverage our unique competitive advantages to preserve margin strength and generate solid cash flow.

謝謝你，何塞·曼努埃爾。轉到第 5 張投影片。我們第四季的業績符合我們的預期，反映了我們在動盪的宏觀經濟環境中業務模式的彈性。我們本季的業績證明了我們有能力利用我們獨特的競爭優勢來保持利潤率實力並產生穩定的現金流。

Backlog grew each quarter through the year and as of year-end, stood at a record of $870.1 million, reflecting a strong pipeline of multi-family and commercial projects. This represented roughly 1.7 times our LTM multi-family and commercial revenue. Equally as important, the pipeline activity remains robust, and we continue to see incremental signings year-to-date.

全年每季的積壓訂單都在成長，截至年底，達到創紀錄的 8.701 億美元，反映出多戶住宅和商業項目的強勁儲備。這大約是我們 LTM 多戶住宅和商業收入的 1.7 倍。同樣重要的是，管道活動仍然強勁，今年迄今為止我們繼續看到增量簽約。

Overall, despite the highest interest rate environment, we are levering favorable demographic trends in our markets. We are seeing solid levels of multi-family and commercial quoting and bidding, and we have a strong base of activity that gives us confidence in our ability to achieve another strong year in 2024. We will continue to focus our efforts on adding new customers, entering new markets and providing best-in-class service.

總體而言，儘管利率環境最高，但我們仍在利用市場中有利的人口趨勢。我們看到多戶住宅和商業報價和投標的穩定水平，並且我們擁有強大的活動基礎，這讓我們對在 2024 年再創輝煌的一年充滿信心。我們將繼續致力於增加新客戶、進入新市場並提供一流的服務。

While we are growing our backlog, we are being mindful to focus on projects that will allow us to sustain our industry-leading margins. We have an innovative R&D pipeline of high-performance products that should allowed us to continue growing faster than our end markets.

在我們增加積壓訂單的同時，我們也注意專注於那些能讓我們維持業界領先利潤率的項目。我們擁有高性能產品的創新研發管道，這將使我們能夠繼續比終端市場更快成長。

Our pipeline includes products developed for both the new geographies we are penetrating as well as products to support our expansion into the vinyl market. The expansion and automation investments made in recent years put us in a position to effectively execute our growth strategy with ample operational capacity and less CapEx requirements.

我們的產品線包括為我們正在滲透的新地區開發的產品以及支持我們擴展到乙烯基市場的產品。近年來進行的擴張和自動化投資使我們能夠以充足的營運能力和更少的資本支出要求有效地執行我們的成長策略。

In addition to the strong visibility afforded by our growing backlog, we are excited about the long-term growth potential of our single-family residential business. Early feedback from the sampling of our vinyl products are encouraging, giving us confidence that vinyl will provide meaningful contributions to revenue over time.

除了我們不斷增加的積壓訂單帶來的強大知名度之外，我們對單戶住宅業務的長期成長潛力感到興奮。我們的乙烯基產品樣品的早期反饋令人鼓舞，讓我們相信乙烯基將隨著時間的推移對收入做出有意義的貢獻。

Moving to slide number 6. We expect this momentum and a strong bidding activity we are seeing will help us keep a strong book-to-bill ratio, which stood at 1.2 times as of the quarter four 2023. This adds to our track record of maintaining a book-to-bill ratio above 1.1 times over the past 12 consecutive quarters.

轉到第 6 張投影片。我們預計這種勢頭和強勁的投標活動將幫助我們保持強勁的訂單出貨比，截至 2023 年第四季度，該比率為 1.2 倍。這增加了我們在過去連續 12 個季度保持訂單出貨比高於 1.1 倍的記錄。

Historically, roughly two-thirds of our reported backlog are invoiced over the following 12 months. We believe that this provides a strong visibility on invoicing, despite the fact that certain external factors can cause temporary delays in delivery.

從歷史上看，我們報告的積壓訂單中大約有三分之二是在接下來的 12 個月內開立發票的。我們相信，儘管某些外部因素可能會導致交貨暫時延遲，但這可以提供強大的發票可見性。

Looking at the favorable demographic trends we see in our key regions on slide number 7. Our key markets remained strong demographically as sovereign states continue to experience above average population growth relative to the rest of the country. Single-family housing starts remain resilient in the South due to this robust population growth.

我們在第 7 張投影片的關鍵地區看到了有利的人口趨勢。我們的主要市場在人口方面仍然強勁，因為主權國家相對於該國其他地區的人口增長繼續高於平均水平。由於人口強勁成長，南方的單戶住宅開工量仍保持彈性。

In Florida, our largest market, single-family housing permits have shown a notable increase in the past few years, and activity in our main metropolitan areas are showing growth even against tough prior year comparisons. All of these trends point to resilient activity in the key markets where we conduct the majority of our business.

在我們最大的市場佛羅裡達州，單戶住房許可在過去幾年中顯著增加，即使與去年的艱難比較相比，我們主要大都市區的活動也顯示出增長。所有這些趨勢都表明我們開展大部分業務的關鍵市場的活動具有彈性。

I will now turn the call over to Santiago to discuss our financial results and outlook for 2024.

我現在將把電話轉給聖地牙哥，討論我們的財務表現和 2024 年的前景。

Thank you, Christian. Turning to single-family residential on slide number 8. During the fourth quarter, we generated single-family residential revenues of $77.1 million compared to $85.1 million in the prior year quarter. The year-over-year change was primarily due to slower sequential and year-over-year activity, resulting from much higher interest rates and mortgage rates.

謝謝你，克里斯蒂安。轉向第 8 號投影片上的單戶住宅。第四季度，我們的單戶住宅收入為 7,710 萬美元，而去年同期為 8,510 萬美元。年比變化主要是由於利率和抵押貸款利率大幅上漲導致環比和年比活動放緩。

Despite a challenging macroeconomic environment and a year of declines in housing starts, we were pleased to produce record full year 2023 single-family residential revenues of $335.4 million. We continue to see market share upside in single-family residential revenues through a variety of factors. This includes our widening dealer base enabled by short lead times, new product introductions, geographic expansion throughout Florida, additional showrooms in other markets, and our recent entrance into the vinyl market. This provides significant runway for revenue growth and product diversification on a long-term basis.

儘管宏觀經濟環境充滿挑戰，而且新屋開工量在這一年有所下降，但我們很高興 2023 年全年單戶住宅收入達到創紀錄的 3.354 億美元。透過多種因素，我們繼續看到單戶住宅收入的市場份額上升。這包括我們透過縮短交貨時間、新產品推出、整個佛羅裡達州的地理擴張、其他市場的額外陳列室以及我們最近進入黑膠唱片市場而擴大的經銷商基礎。這為長期收入成長和產品多元化提供了重要的途徑。

To that point, on Slide number 9, I would like to highlight a few key points from our recent strategic entry into vinyl windows. Our strategic entry into vinyl windows has significantly expanded our addressable market. We were pleased to begin shipments of our innovative vinyl products in December. We are currently working with additional clients and prospects to perform a significant amount of testing and sampling in order to ramp up deliveries throughout 2024.

就此而言，在第 9 號投影片上，我想強調我們最近策略進入乙烯基窗戶的幾個關鍵點。我們對乙烯基窗戶的策略性進入極大地擴大了我們的目標市場。我們很高興在 12 月開始發貨我們的創新乙烯基產品。我們目前正在與更多客戶和潛在客戶合作，進行大量測試和採樣，以提高 2024 年全年的交付量。

In addition to our showroom expansions, we are excited for what the future holds for Tecnoglass in the vinyl market. We expect these high-end value added vinyl products to contribute more meaningfully to results, particularly in single-family residential after the second quarter of 2024 and beyond.

除了我們的展廳擴張之外，我們也對 Tecnoglass 在乙烯基市場的未來感到興奮。我們預計這些高端加值乙烯基產品將對業績做出更有意義的貢獻，特別是在 2024 年第二季及以後的單戶住宅。

Importantly, we've already completed a significant portion of the anticipated CapEx to enable our facilities and operational infrastructure to accommodate this transformational initiatives. We expect this strategic entrance into the vinyl segment will more than double our addressable market with an opportunity to add an incremental $300 million in annual revenues in the coming years.

重要的是，我們已經完成了預期資本支出的很大一部分，以使我們的設施和營運基礎設施能夠適應此轉型計劃。我們預計，這項策略性進入黑膠唱片領域將使我們的目標市場規模擴大一倍以上，並有機會在未來幾年增加 3 億美元的年收入。

Our entry into the vinyl window market is expected to provide a range of benefits to Tecnoglass and our customers. Notably, we see attractive synergies, given many of our existing dealer customers already sell both aluminum and vinyl windows, and we are able to leverage our manufacturing expertise and vertically integrated operations to make this a relatively seamless addition.

我們進入乙烯基窗戶市場預計將為 Tecnoglass 和我們的客戶帶來一系列好處。值得注意的是，我們看到了有吸引力的協同效應，因為我們的許多現有經銷商客戶已經銷售鋁窗和乙烯基窗，並且我們能夠利用我們的製造專業知識和垂直整合的運營來實現相對無縫的添加。

We already have two new vinyl distributors signed in Sarasota and Tampa, and approximately 30 to 40 legacy dealers in Central and Northern Florida that have been quoting projects and testing the products. This early traction gives us confidence in future demand for our vinyl products, and we are excited for the immense opportunity we see in this end market, given the size of the addressable market throughout the US.

我們已經在薩拉索塔和坦帕簽約了兩家新的乙烯基經銷商，並在佛羅裡達州中部和北部簽約了大約 30 至 40 個傳統經銷商，他們一直在報價項目並測試產品。這種早期的吸引力讓我們對乙烯基產品的未來需求充滿信心，考慮到整個美國潛在市場的規模，我們對在這個終端市場看到的巨大機會感到興奮。

Turning to the drivers of revenue on slide number 11. Total revenues for the fourth quarter decreased 7.8% year-over-year to $194.6 million, due to lower single-family residential revenues with a multifamily and commercial business performing in line with internal expectations. Total revenues for the full year increased 16.3% year-over-year to a record $833.3 million, mainly attributable to a strong rebound in multi-family and commercial activity, resilient demand for our single-family residential products and market share gains compared to prior year.

轉向第 11 投影片中的收入驅動因素。第四季總營收年減 7.8% 至 1.946 億美元，原因是單戶住宅收入下降，而多戶和商業業務的表現符合內部預期。全年總收入年增 16.3%，達到創紀錄的 8.333 億美元，主要歸因於多戶住宅和商業活動的強勁反彈、對單戶住宅產品的強勁需求以及與之前相比市場份額的增長年。

Looking at the profit drivers on slide numbers 12 and 13. Adjusted EBITDA for the fourth quarter 2023 was $62 million, representing an adjusted EBITDA margin of 31.8%. Adjusted EBITDA for the full year increased 14.5% year-over-year to a record $304.1 million, representing a margin of 36.5%.

請參閱投影片 12 和 13 上的利潤驅動因素。2023 年第四季調整後 EBITDA 為 6,200 萬美元，調整後 EBITDA 利潤率為 31.8%。全年調整後 EBITDA 年成長 14.5%，達到創紀錄的 3.041 億美元，利潤率為 36.5%。

SG&A for the fourth quarter was $32.4 million or 16.7% of revenue compared to $33.4 million or 15.8% of revenue in the prior year quarter. The increase in SG&A as a percentage of revenue was primarily due to lower revenues year-over-year. For the full year, SG&A as a percentage of total revenues was 15.7%, an improvement of 140 basis points over the prior year.

第四季的銷售及管理費用為 3,240 萬美元，佔營收的 16.7%，而去年同期為 3,340 萬美元，佔營收的 15.8%。SG&A 佔收入百分比的增加主要是由於收入年減。全年SG&A佔總營收的百分比為15.7%，較上年提高140個基點。

Fourth quarter gross profit was $83 million, representing a 42.6% gross margin. This compared to gross profit of $110.2 million, representing a 52.2% gross margin in the prior year quarter. The year-over-year change in gross margin mainly reflected an unfavorable FX impact related to functional currency and a steep revaluation of the Colombian peso of approximately 15% year-over-year.

第四季毛利為8,300萬美元，毛利率為42.6%。相較之下，去年同期的毛利為 1.102 億美元，毛利率為 52.2%。毛利率的同比變化主要反映了與功能貨幣相關的不利外匯影響以及哥倫比亞比索同比大幅升值約15%。

Additionally, gross margin was impacted by lower revenues and an increase in the mix of installation versus product revenue during the quarter. Gross profit for the full year increased 11.9% to a record $391 million, representing a 46.9% gross margin and in line with our target range of 47% to 49% for the full year 2023.

此外，本季毛利率也受到收入下降以及安裝與產品收入組合增加的影響。全年毛利成長 11.9%，達到創紀錄的 3.91 億美元，毛利率為 46.9%，符合我們 2023 年全年 47% 至 49% 的目標範圍。

As a reminder, we estimate that each movement of 5% in FX equates to approximately 150 basis points in operating margins.

提醒一下，我們估計外匯每 5% 的變動相當於營業利潤率約 150 個基點。

Now looking at our strong cash flow and improved leverage on slide number 14. For the full year, we generated another very strong year of operating cash flow of $139 million. This was driven by higher profitability and strong working capital management. The full year included capital expenditures of $78 million, which included payments for previously purchased land for future potential capacity expansion.

現在看看第 14 號幻燈片上我們強勁的現金流和改善的槓桿率。全年我們又創造了 1.39 億美元的強勁營運現金流。這是由更高的獲利能力和強大的營運資本管理所推動的。全年資本支出為 7,800 萬美元，其中包括為未來潛在產能擴張而購買的土地的付款。

CapEx also included a significant portion of previously disclosed investments in facilities and operational infrastructure related to our entry into the vinyl window market. Given our higher install capacity, we expect a meaningful decrease in capital expenditures in 2024. Our impressive cash generation has allowed us to unlock additional value in our business through share repurchases and increases in our cash dividend.

資本支出還包括先前披露的與我們進入乙烯基窗戶市場相關的設施和營運基礎設施投資的很大一部分。鑑於我們的裝置容量較高，我們預計 2024 年資本支出將大幅減少。我們令人印象深刻的現金產生能力使我們能夠透過股票回購和增加現金股利來釋放業務的額外價值。

We returned capital to shareholders through $23.5 million in share repurchases during the year, leaving roughly $27 million of remaining purchase power under the current authorization. Additionally, given the visibility afforded by a record backlog as of the year-end and the expectation for continued strength in cash flow, our Board of Directors has approved a 22% dividend increase to a quarterly payment of $0.11 per share. This reflects our commitment to return incremental cash to shareholders.

年內，我們透過 2,350 萬美元的股票回購向股東返還資本，在目前授權下剩餘購買力約為 2,700 萬美元。此外，考慮到截至年底創紀錄的積壓以及對現金流持續強勁的預期，我們的董事會已批准將股息增加 22%，季度支付率為每股 0.11 美元。這反映了我們向股東返還增量現金的承諾。

We ended the year at a record low net leverage ratio of 0.1 times net debt to LTM adjusted EBITDA, down from 0.2 times in the prior year. As of December 31, we had a cash balance of $130 million and availability under our committed revolving credit facilities of $170 million, resulting in total liquidity of approximately $300 million.

年終淨槓桿率創歷史新低，為淨債務與 LTM 調整後 EBITDA 的 0.1 倍，低於前一年的 0.2 倍。截至 12 月 31 日，我們的現金餘額為 1.3 億美元，承諾的循環信貸額度下的可用資金為 1.7 億美元，流動性總額約為 3 億美元。

Overall, we remain very pleased with our efforts to grow our cash generation capabilities, which, in turn, has provided us with multiple levers to drive additional value in our business.

總體而言，我們對增強現金產生能力的努力仍然感到非常滿意，這反過來又為我們提供了多種槓桿來推動我們業務的附加價值。

On slide number 15, I would like to reiterate our exceptional track record of creating value compared to the industry. On average, over the past three years, our stronger profitability and meaningful step-up in cash flow generation have driven significant above average returns. When comparing our ROE and ROIC metrics to those of US building product peers, the returns on reinvestments into our business plus dividends have driven substantially higher value to our shareholders, further validating our growth strategy and capital allocation priorities.

在第 15 張投影片上，我想重申與業界相比，我們在創造價值方面的卓越記錄。平均而言，在過去三年中，我們在更強的獲利能力和現金流產生方面的顯著提升推動了回報率顯著高於平均水平。將我們的 ROE 和 ROIC 指標與美國建築產品同行進行比較時，我們業務再投資的回報加上股息為我們的股東帶來了更高的價值，進一步驗證了我們的成長策略和資本配置優先事項。

As you can see on slide 17, the upward trajectory of our revenue and adjusted EBITDA remains positive, and there is a latter runway for growth. Our recent capacity additions and entrance into the vinyl window market have provided us with the capabilities to produce over $1.2 billion of annual revenues, including installation. We remain as confident as ever in our ability to achieve another year of exceptional growth and above-market returns in 2024 and beyond.

正如您在投影片 17 中看到的那樣，我們的收入和調整後 EBITDA 的上升軌跡仍然為正，並且還有後一條成長之路。我們最近的產能增加和進入乙烯基窗戶市場使我們有能力創造超過 12 億美元的年收入（包括安裝收入）。我們一如既往地相信，我們有能力在 2024 年及以後實現另一年的卓越成長和高於市場的回報。

Now moving to our outlook on slide 18. As Chris mentioned earlier, our key markets remain largely resilient, and we have witnessed positive trends indicating improving demand. We remain confident that 2024 has strong potential to be another year of double-digit revenue growth based on the visibility afforded by our backlog and by the different avenues for growth in our single-family residential business, including the new vinyl initiative, showroom openings, and geographical expansion.

現在轉向我們對幻燈片 18 的展望。正如克里斯之前提到的，我們的主要市場在很大程度上仍然具有彈性，我們看到了表明需求改善的積極趨勢。我們仍然相信，基於我們的積壓訂單以及我們單戶住宅業務的不同增長途徑（包括新的乙烯基計劃、陳列室開業、和地理擴張。

That being said, given the current lack of clarity on US macroeconomic factors, mainly the trajectory of interest rates going forward, we believe it is more appropriate and prudent to provide explicit guidance ranges for full year 2024 revenue and adjusted EBITDA at a later date.

話雖如此，鑑於目前美國宏觀經濟因素（主要是未來利率走勢）尚不明確，我們認為稍後為 2024 年全年收入和調整後 EBITDA 提供明確的指導範圍更為合適和審慎。

In addition to potentially having better clarity on macroeconomic indicators, in the coming months we should be better able to assess the cadence of growth in the single-family residential business and the timing of invoicing in certain projects. This includes projects in backlog as well as single-family residential, where we already see improving trends as well as a healthy amount of interest for our new line of vinyl products.

除了可能更清楚地了解宏觀經濟指標外，在未來幾個月中，我們應該能夠更好地評估單戶住宅業務的成長節奏以及某些項目的開票時間。這包括積壓的項目以及單戶住宅項目，我們已經看到了改善趨勢以及對我們的新乙烯基產品系列的濃厚興趣。

In place of explicit ranges, we will provide some additional color on our growth outlook. In regards to margins for the year, we expect gross margins to step up from the levels seen in the last two quarters of 2023 based on a stable FX rate and the expected operating leverage resulting from a sequential increase in revenues throughout the year.

我們將為我們的成長前景提供一些額外的色彩來代替明確的範圍。就今年的利潤率而言，基於穩定的匯率以及全年收入連續成長帶來的預期營運槓桿，我們預計毛利率將較 2023 年最後兩季的水平有所上升。

While we assume FX rates will remain stable with current levels based on internal expectations and economies projections, as a reminder, we estimate that every 5% movement in FX has an approximate 150 basis points impact on adjusted EBITDA margins. Therefore, despite the expected quarterly improvement in gross margin after Q1, for the full year 2024, it is reasonable to assume gross margin will be lower than the 47% level seen in the full 2023 year.

雖然我們根據內部預期和經濟預測假設匯率將保持在當前水準穩定，但提醒一下，我們估計外匯每 5% 的變動都會對調整後 EBITDA 利潤率產生約 150 個基點的影響。因此，儘管預計第一季後毛利率將逐季改善，但對於 2024 年全年，可以合理地假設毛利率將低於 2023 年全年 47% 的水平。

This is predicated on two main factors. First, a stable FX rate since the beginning of 2024 results in a Colombian peso that is on average 10% stronger than the average FX rate for 2023 based on the current and projected 2024 FX levels. Second, we anticipate an increased mix of revenues from installation compared to 2023.

這是基於兩個主要因素。首先，自 2024 年初以來匯率穩定，根據當前和預計的 2024 年外匯水平，哥倫比亞比索平均比 2023 年平均匯率強 10%。其次，我們預計與 2023 年相比，安裝收入組合將會增加。

Based on the timing of projects, scheduled maintenance of our facilities in January and the expected ramp-up period of our vinyl products, we anticipate the first quarter of 2024 to be roughly similar sequentially to Q4 2023 in terms of revenues, with a higher degree of installation mix sequentially. The first quarter of the year is expected to be the seasonal low quarter of the year than increasing sequentially thereafter.

根據專案的時間表、一月份設施的計劃維護以及乙烯基產品的預期增長期，我們預計 2024 年第一季的收入將與 2023 年第四季度的收入大致相似，並且程度更高安裝順序混合。預計今年第一季將是全年季節性最低的季度，此後將持續成長。

Finally, cash flow from operations is expected to remain strong for the full year. Free cash flow is expected to improve in 2024, given the majority of capital expenditures related to facility automation, expansion, and vinyl related investments having been completed.

最後，預計全年營運現金流將保持強勁。鑑於與設施自動化、擴建和乙烯基相關投資相關的大部分資本支出已經完成，自由現金流預計將在 2024 年改善。

With all of this in mind, we continue to be very excited about our business prospects and growth opportunities for this year and beyond. As discussed, we have several avenues to expand our market share for years to come.

考慮到所有這些，我們仍然對今年及以後的業務前景和成長機會感到非常興奮。正如所討論的，我們有多種途徑可以在未來幾年擴大我們的市場份額。

In summary, 2023 was another milestone year for Tecnoglass. Demand for our innovative product portfolio remain resilient, and we've made great progress against our growth strategy through geographic expansion, new product introductions, and our entrance into the attractive vinyl window market.

總而言之，2023 年對 Tecnoglass 來說是另一個具有里程碑意義的一年。對我們創新產品組合的需求保持彈性，並且透過地理擴張、新產品推出以及進入有吸引力的乙烯基窗戶市場，我們在成長策略方面取得了巨大進展。

As we look to 2024, we are optimistic in our ability to continue growing faster than the market, while unlocking additional value in our business through our highly efficient cost structure, targeted investments, and strategic positioning in attractive US markets.

展望 2024 年，我們對繼續快於市場成長的能力感到樂觀，同時透過高效的成本結構、有針對性的投資以及在有吸引力的美國市場的戰略定位來釋放我們業務的附加價值。

With that, we will be happy to answer your questions. Operator, please open the line for questions.

這樣，我們將很樂意回答您的問題。接線員，請開通提問線。

(Operator Instructions) Sam Darkatsh, Raymond James.

（操作員說明）Sam Darkatsh，Raymond James。

So I've got three questions, if you forgive me. So first, and you mentioned, Santiago, the first quarter sales expected to be flattish with the fourth quarter with the installation element higher. So could you help us in that vein, what you might be pegging for realistic gross margins and EBITDA for the quarter?

所以我有三個問題，請原諒我。首先，聖地牙哥，您提到，第一季的銷售額預計將與第四季持平，安裝量較高。那麼您能否在這方面幫助我們，您對本季實際毛利率和 EBITDA 的預期是多少？

Yeah. In gross margin, Sam, I will see something in line with Q4, perhaps. I would expect that over the quarter, being the fact that we're going to have more mix, there's going to be a little bit of a headwind in there. But from an EBITDA perspective, we wanted to wait and see what the cadence of the orders on the residential side are looking like, and then we'll be able to determine that. But it should be kind of in line with Q4 all around from an FX perspective.

是的。在毛利率方面，山姆，我也許會看到與第四季一致的東西。我預計，在本季度，由於我們將有更多的組合，因此將會出現一些阻力。但從 EBITDA 的角度來看，我們想等等看看住宅方面的訂單節奏是什麼樣的，然後我們才能確定這一點。但從外匯角度來看，它應該與第四季基本一致。

If you look at what's happened in the last six months, FX has been really stable. The main impact was year-over-year. As you recall, 2022 had a very depreciated peso. But in the last six months, it's been rather stable. So I think from a quarter-over-quarter comparison, the FX pressure is really behind us. So I would expect something more in line with Q4 and then sequentially growing thereafter, as we said on the call, and that's based on what we're expecting from the timing of deliveries and also from the timing of how the vinyl initiative is ramping up.

如果你看看過去六個月發生的事情，你會發現外匯非常穩定。主要影響是同比。您還記得，2022 年比索大幅貶值。但在過去的六個月裡，它相當穩定。因此，我認為從環比來看，外匯壓力確實已經過去了。因此，正如我們在電話會議上所說，我預計會與第四季度更加一致，然後會連續增長，這是基於我們對交付時間以及黑膠唱片計劃如何加強的時間的預期。

And the other thing is that, as you know, in January, we have a scheduled maintenance where we only had about 20 days -- 20 working days. So that has an impact in there as well, which we did not have in January of last year.

另一件事是，正如你所知，在一月份，我們進行了一次定期維護，我們只有大約 20 天——20 個工作天。所以這也對那裡產生了影響，這是我們去年一月沒有產生的。

Yeah. Because that's normally in December, right?

是的。因為那通常是在十二月，對嗎？

Yeah, more in December. So this time is going to be a little bit unusual.

是的，12月還會有更多。所以這次會有點不尋常。

Got it. So the gross margin and EBITDA, similar to fourth quarter or just gross margin? I was trying to get a sense of EBITDA also. Sorry.

知道了。那麼毛利率和 EBITDA 與第四季相似還是只是毛利率？我也試著了解 EBITDA。對不起。

I think EBITDA could be in line or slightly lower based on the mix of revenues. And then, as I was saying, just ramping up throughout the year.

我認為，根據收入組合，息稅折舊攤提前利潤 (EBITDA) 可能會保持一致或略低。然後，正如我所說，全年都在增加。

Got it. And then I respect the reticence to talk about EBITDA for the entirety of '24 because of macro uncertainty. But if you just thought that the sales growth would be 10%, which is the low end of your double-digit growth expectations, how should we think about what prospective EBITDA might look like under that scenario?

知道了。然後，我尊重由於宏觀不確定性而在整個 24 年保持沉默的 EBITDA。但如果你只是認為銷售成長率為 10%，這是你的兩位數成長預期的下限，那麼我們應該如何考慮在這種情況下預期的 EBITDA 會是什麼樣子呢？

I would consider two things on that. You're going to get operating leverage on higher sales, but then you're going to have the effect of FX, which for 2023 was at COP4,325 and what we're projecting for 2024 is in line with current conditions, which is COP4,000. So you're talking about the peso being stronger by about 8% to 10%.

對此我會考慮兩件事。你將在更高的銷售額上獲得營運槓桿，但隨後你將受到外匯的影響，2023 年的匯率為 COP4,325，我們對 2024 年的預測符合當前條件，即COP4,000。所以你說的是比索升值了大約 8% 到 10%。

As we discussed earlier, and we alluded on the call this morning, for every 5% movement on FX, you have about 150 basis points of impact to operating margins, right?

正如我們之前討論的，以及今天早上的電話會議中提到的，外匯每波動 5%，就會對營業利潤率產生約 150 個基點的影響，對嗎？

So at the end of the day, you're going to have operating leverage helping out with double-digit growth, but then you're going to have the impact of FX for the full year, which we see stable, but then 8% to 10% stronger year-over-year versus 2023.

因此，最終，您將擁有營運槓桿來幫助實現兩位數的成長，但隨後您將受到全年外匯的影響，我們認為該影響穩定，但隨後為 8%與2023 年相比，同比增長10% 。

So if you kind of back into it, I think we can -- there's a chance that we can grow EBITDA, but it's going to be probably more in line year-over-year based on mainly FX and mix.

因此，如果你重新考慮一下，我認為我們可以 - 我們有機會增加 EBITDA，但主要基於外匯和組合，它可能會比去年同期更加一致。

Got it. So we would use a normal -- sorry, you'd use a normal incremental margin on the 10% volume growth and then apply a 300 basis point or so headwind from FX? Is that the way to think about it holistically?

知道了。因此，我們會使用正常的——抱歉，您會在 10% 的交易量增長上使用正常的增量保證金，然後應用 300 個基點左右的外匯逆風？這是整體思考的方式嗎？

Yeah. And if you look about the guidance or the high-level color that we're giving on gross margins, we ended up at 47%. And if you do kind of the math on gross margins that we're talking about for 2024 and discussing mid-40s gross margins, you already kind of have that effect baked in there, right?

是的。如果你看看我們給出的毛利率指引或高級顏色，你會發現我們最終達到了 47%。如果你對我們正在討論的 2024 年毛利率進行數學計算，並討論 40 年代中期的毛利率，你已經有了這種效果，對吧？

I mean you have a 300-basis-point effect on FX, which gets you to about 44%. The difference from then is going to be how much operating leverage can we get, how fast is this residential initiatives going to ramp up. So that's going to be the upside.

我的意思是，你對外匯有 300 個基點的影響，這會讓你達到大約 44%。與那時的不同之處在於我們可以獲得多少營運槓桿，這項住宅計畫的進展速度有多快。所以這將是好處。

And obviously, we can get more operating leverage on those higher revenues. But then you kind of offset that with the fact that we're going to have more installation mix. So those are the three variables that are kind of playing a part in there. All-in-all, I think that mid-40s is probably the run rate and the adequate way to project gross margins.

顯然，我們可以透過這些更高的收入獲得更多的營運槓桿。但隨後我們將有更多的安裝組合這一事實抵消了這一點。這就是其中發揮作用的三個變數。總而言之，我認為 40 多歲可能是運行率和預測毛利率的適當方法。

And then my last question -- thank you for that, Santiago. My last question, lots of price increase announcements from US windows -- single-family window manufacturers and a lot of your competitors of late. Are you anticipating raising prices for single-family resi in line with those announcements or are you looking to keep pricing flattish and maybe pick up some share as a result?

然後是我的最後一個問題——謝謝你，聖地牙哥。我的最後一個問題是，美國窗戶—單戶窗戶製造商和許多競爭對手最近發布了許多漲價公告。您是否預計會根據這些公告提高單戶住宅的價格，或者您是否希望保持定價不變，並可能因此獲得一些份額？

Well, we don't have any plans to increase prices because to the contrary, we have good sources for aluminum and glass. We see no price increases on that end. So our clients are very happy with our price point. And actually, February was better than expected month than August. So we're very happy with where we are right now. We're not going to increase prices, at least not in the -- this month or next.

嗯，我們沒有任何提高價格的計劃，因為相反，我們有良好的鋁和玻璃來源。我們認為這方面的價格不會上漲。所以我們的客戶對我們的價格非常滿意。事實上，二月的情況好於八月的預期。所以我們對現在的處境非常滿意。我們不會提高價格，至少在本月或下個月不會。

Stanley Elliott, Stifel.

史丹利·艾利奧特，史蒂菲爾。

On the vinyl initiative, can you talk about how much you're assuming that vinyl would contribute to the double-digit revenue growth you guys are targeting for the year?

關於黑膠唱片計劃，您能談談您認為黑膠唱片將為您今年的兩位數收入增長做出多大貢獻嗎？

Yeah. It's basically weighted towards the second half, first of all, because what is taking place right now is the delivery of sampling and testing of the product, so bear that in mind. But we are seeing that contributing more meaningfully in the -- after the second quarter of the year to the range of probably $20 million to $25 million in total orders.

是的。首先，它基本上偏重於下半年，因為現在正在進行的是產品抽樣和測試的交付，所以請記住這一點。但我們發現，今年第二季之後，訂單總額可能達到 2,000 萬至 2,500 萬美元，這項貢獻更為有意義。

Now if it ramps up better than expected, that's where you're going to see the upside come from. But early indicators on feedback and what's going on right now are encouraging, Stan.

現在，如果它的成長好於預期，那麼你就會看到上漲的根源。但有關回饋的早期指標和目前正在發生的事情令人鼓舞，史丹。

Great. And then could you remind us again kind of what you're thinking about from a CapEx perspective for the coming year, now a lot of that heavy lift is done. And then how are you all thinking about maybe accelerating a buyback at this point?

偉大的。然後您能否再次提醒我們，您從資本支出的角度對來年的想法是什麼，現在很多繁重的工作已經完成。那麼，你們現在如何考慮加速回購呢？

Yeah. That's going to be one of the strongest points for 2024. We see probably the best free cash flow year that the company has ever had. And that's predicated on the fact that we, again, are seeing double-digit growth. And CapEx is expected to essentially go down by half, I would say, to the range of $40 million to $45 million.

是的。這將是 2024 年最強勁的點之一。我們可能會看到該公司有史以來自由現金流最好的一年。這是基於我們再次看到兩位數成長的事實。我想說，資本支出預計將大幅下降一半，降至 4,000 萬美元至 4,500 萬美元之間。

So that's going to give us a lot of flexibility to do many things, including being opportunistic on the buyback. As you know, we still have roughly half of the program available to us. And if we make sense, the free cash flow is going to be there to get another approval, if you make sense. So we'll definitely be opportunistic on that end.

因此，這將為我們提供很大的靈活性來做很多事情，包括在回購方面抓住機會。如您所知，我們仍然有大約一半的計劃可供我們使用。如果我們有道理的話，自由現金流將會得到另一次批准，如果你有道理的話。因此，我們在這方面肯定會投機取巧。

Perfect. And last for me, with kind of a lot of moving parts this year, how should we think about SG&A maybe on a dollar basis or a percent of revenues? However you want to frame that out, but just to kind of give us some direction there?

完美的。最後對我來說，今年有很多變化，我們應該如何考慮以美元為基礎或以收入百分比為基礎的銷售及管理費用（SG&A）？然而，你想把它弄清楚，但只是為了給我們一些方向？

Not a whole lot of changes, I would say in there, Stan, other than the adjustments that you have to do on salaries locally, which are to the order of 8%. But other than that, the only moving pieces are on the transportation and commission side which are the variable expenses related to higher sales. But nothing really out of the ordinary. I wouldn't say flattish, but I would imagine that growing slightly less than revenues. And that's also based on the fact that we have some non-recurring expenses in 2023, which we do not expect in '24. So to that extent, I would imagine that we can generate operating leverage on those higher sales.

史丹，我想說，除了你必須對當地工資進行 8% 左右的調整之外，沒有太多變化。但除此之外，唯一的變動因素是運輸和佣金方面，即與較高銷售額相關的變動費用。但沒有什麼特別不尋常的。我不會說持平，但我認為成長略低於收入。這也是基於這樣一個事實，即我們在 2023 年會有一些非經常性支出，而我們預計 24 年不會出現這些支出。因此，從這個意義上說，我認為我們可以利用這些更高的銷售額來產生營運槓桿。

Thank you. (Operator Instructions) Tim Wojs, Baird.

謝謝。（操作員說明）Tim Wojs，Baird。

Maybe just on the underlying kind of residential business. I guess, what do you think has kind of changed over the last three to four months? And I think José Manuel you said that February was a little bit better. I mean has that business kind of gotten back to growth? I'm just kind of curious as you kind of look at expectations and order rates and things, what have you been hearing from your customers around kind of the underlying residential business?

也許只是在住宅業務的基礎類型上。我想，您認為過去三到四個月發生了什麼變化？我認為何塞·曼努埃爾（José Manuel）你說過二月的情況要好一些。我的意思是該業務已經恢復成長了嗎？我只是有點好奇，當你專注於期望、訂單率等事情時，你從客戶那裡聽到了關於基礎住宅業務的什麼訊息？

Well, this resi business we expect to grow because we are moving upward. We were only selling a lot from, let's say, St. Petersburg, South of Florida. And now, we're moving all the way up to the Georgia, Carolina and also Tampa, the Panhandle. So we expect that market to grow.

嗯，我們預計這項 Resi 業務將會成長，因為我們正在向上發展。我們只從佛羅裡達州南部的聖彼得堡出售大量產品。現在，我們正一路向北，前往喬治亞州、卡羅來納州以及坦帕、狹長地帶。因此我們預計該市場將會成長。

It was stalled for three, four months. I mean, not bad, but it wasn't growing because a lot of housing projects were delayed because of the high interest rate. But lately, it seems that the interest rate went down like 1 point, and people are enthusiastic.

就這樣停滯了三、四個月。我的意思是，還不錯，但它沒有成長，因為許多住房項目由於高利率而被推遲。但最近好像利率下降了1個點左右，人們熱情高漲。

Like I just said, this month was a very good month for me in February. We're very happy. And I think the trend -- I mean we just went to the show in Vegas, and the acceptance of our new products for Northern Florida and outside of Florida has been tremendous, and we're very happy.

就像我剛才說的，這個月對我來說是二月非常好的一個月。很高興。我認為趨勢 - 我的意思是我們剛剛去了拉斯維加斯的展會，佛羅裡達州北部和佛羅裡達州以外地區對我們的新產品的接受度非常高，我們非常高興。

Okay. That's good. And then Santiago, just on the cadence of kind of growth through the year, I guess how -- I'm just trying to kind of understand maybe like how we should think about the sequential ramp? Would you kind of expect it to be fairly linear through the year or is there more of a, I guess, second half weighting to kind of some of the sequential improvement at this point?

好的。那挺好的。然後聖地牙哥，就全年成長的節奏而言，我想——我只是想了解我們應該如何考慮連續成長？您是否預計全年的表現會相當線性，或者我猜下半年是否有更多的權重來實現一些連續的改進？

I would expect sequential improvement each quarter. Typically, you know that Q2 and Q3 are the best out of the year, but that’s again going to depend on how the vinyl initiative and the geographical expansion on the residential side ramp-up. But I would model it -- as we were saying, Q1 in line with Q4 is going to be the seasonal low quarter, given the fact that we had almost half a month of January of invoicing, and then ramping up the rest of the year is how we’re modeling this out.

我預計每季都有連續改善。通常，您知道第二季和第三季是今年最好的，但這又取決於黑膠唱片計劃和住宅方面的地理擴張如何推進。但我會對其進行建模 - 正如我們所說，考慮到我們一月份有近半個月的發票，然後在今年剩餘時間裡增加，第一季度與第四季度將成為季節性低季度這就是我們對此進行建模的方式。

Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Mr. José Manuel Daes for closing remarks.

謝謝。我們的問答環節已經結束。現在我想請何塞·曼努埃爾·澤斯先生致閉幕詞。

Okay. Thanks everyone for participating on today's call. We expect to keep giving good news to our investors, and I think this next two, three years are going to be fabulous for the company. Thank you.

好的。感謝大家參加今天的電話會議。我們希望繼續向投資者提供好消息，我認為未來兩三年對公司來說將是極好的。謝謝。

Thank you. That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。