Tecnoglass Inc. (NASDAQ:TGLS) Q2 2019 Earnings Conference Call Transcript
Aug 09, 2019 • 10:00 am ET
Greetings. Welcome to the Tecnoglass Incorporated Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I will now turn the conference over to your host, Rodny Nacier, Investor Relations. Mr Nacier, you may begin.
Thank you for joining us for Tecnoglass' Second Quarter 2019 Conference Call. A copy of the slide presentation to accompany this call may be obtained on the Investors section of the Tecnoglass website. Our speakers for today's call are Chief Executive Officer, Jose Manuel Daes; Chief Operating Officer, Chris Daes; and Chief Financial Officer, Santiago, Geraldo. I'd like to remind everyone that matters discussed on 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.
Actual results may vary 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. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass' filings with the Securities and Exchange Commission. The information discussed during the call is presented in light of such risks. 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.
I will now turn the call over to Jose Manuel, beginning on Slide number four.
Jose Manuel Daes
Thank you, Rodney, and thank you, everyone, for participating on today's call. We closed out the first half of 2019 with record levels of gross profit, adjusted EBITDA and backlog. Second quarter total revenues increased 28% to $113.9 million. Marginal ninth straight quarter of record revenues. The restructure was largely driven by continued rapid expansion in reservation and overall market share gains. The U.S. continues to represent a larger mix of our business, increasing to 87% over second quarter revenues. This compared to 79% a year ago. Furthermore, we generated cash flow from operation of $40 million in the second quarter, reflecting increased profitability and enhanced working capital management. On this positive momentum, we increased adjusted EBITDA by 41% to $25.8 million. This adjusted EBITDA growth resulting from our continued successful U.S. market penetration and better product mix. The strength of our low-cost, efficient and vertically integrated operations was evident. This continues to provide a sustainable platform to drive industry relating margins.
In addition, in May 2019, we completed our previously announced Float Glass joint vendor with Saint-Gobain. This was a very positive step for our company. We expect the JV to contribute to enhance our vertical integration strategy to cure our float glass supply and generate significant synergies over the coming years.