– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
First quarter net income of $10.3 million on net sales of $258.1 million, representing 0.8% organic sales growth
Continued strong market demand results in record sales backlog
First quarter adjusted EBITDA of $27.9 million, or 10.8% of sales; adjusted diluted EPS of $0.73
Company updates 2022 GAAP earnings guidance in range of $4.15 to $4.75 per diluted share and adjusted EBITDA of $140 million to $155 million
MINNEAPOLIS--(BUSINESS WIRE)--Tennant Company (“Tennant” or the “Company”) (NYSE: TNC), a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world, today reported its first quarter results for 2022.
“Overall, our first quarter financial performance aligns with our expectations and demand for our products and services remains strong, achieving pre-pandemic demand levels. We continue to take actions to offset inflationary pressures and increase production to serve our customers as we navigate through current operating conditions,” said Dave Huml, Tennant Company’s President and Chief Executive Officer. “Entering 2022, we expected that the availability of components would constrain our production, but anticipated that as we progressed throughout the year, market conditions would begin moderating and stabilizing. Based on the current macroeconomic outlook, we now believe that recovery efforts will be more back-end weighted. As such, we are lowering our full-year guidance for adjusted EBITDA from $145 to $160 million to $140 to $155 million.”
2022 First-Quarter Results
(In millions) |
Three Months Ended |
||||
March 31, |
|||||
2022 |
2021 |
Change |
|||
Net sales |
$258.1 |
|
$263.3 |
|
-2.0% |
Net income |
$10.3 |
$25.7 |
-59.9% |
||
Gross margin |
38.3% |
|
43.0% |
|
-4.7% |
Adjusted EBITDA |
$27.9 |
$40.7 |
-31.4% |
||
Adjusted EBITDA margin |
10.8% |
|
15.5% |
|
-4.7% |
Consolidated net sales in the first quarter of 2022 totaled $258.1 million, a 2.0% decrease as compared to consolidated net sales of $263.3 million in the first quarter of 2021. Overall demand remained strong; however, diminished parts availability resulted in increased backlog levels.
The 2.0% decrease in consolidated net sales in the first quarter of 2022 as compared to the same period in 2021 was driven by:
Gross margin was 38.3% in the first quarter of 2022, compared to 43.0% in the prior-year period. The decrease was attributed mainly to material inflation and higher freight costs, which were partly offset by price increases. While lower than the prior-year period, gross margin improved 189 basis points compared to the fourth quarter of 2021. Adjusted EBITDA was $27.9 million in the first quarter of 2022 compared to $40.7 million in the prior-year period. The decrease in adjusted EBITDA was primarily due to lower margins, partly offset by lower selling and administrative expenses. Net income attributable to Tennant Company decreased $15.4 million to $10.3 million, driven by lower margins, partly offset by interest expense savings and a $7.5 million gain after-tax from the divestiture of the Company’s coatings business recognized in 2021.
Organic Sales Results
Three Months Ended |
||||||||
March 31, 2022 |
||||||||
Americas |
EMEA |
APAC |
Total |
|||||
Organic net sales growth |
2.3% |
|
4.2% |
|
-20.2% |
|
0.8% |
|
Organic net sales increased by 0.8% in the first quarter of 2022. Regional results were as follows:
Cash Flow, Capital Allocation, and Liquidity
For the first quarter of 2022, cash flow used in operations was $10.1 million compared to $18.4 million cash from operations in the prior-year period. The year-over-year decrease in operating cash flow was driven primarily by significant changes in working capital, specifically inventory, which increased as a result of rising costs and an increase in safety stocks.
The Company continues to deploy cash flow toward operational capital needs and returning capital to shareholders. Liquidity remained strong with a balance of $110.4 million in cash and cash equivalents as of the end of the first quarter.
2022 Business Outlook
“We are pleased with the strong, continuing demand for Tennant products and are encouraged by the commitment and agility of our teams in addressing the changing market landscape to meet this demand,” said Huml. “Macroeconomic headwinds and geopolitical risk factors have worsened, and our revised guidance reflects the current operating environment, which is constrained by parts availability and higher inflation. We are working creatively and diligently to overcome these challenges and remain well positioned to capitalize on any improvement in parts availability.”
For 2022, Tennant provides the following updated guidance:
(In millions except per share data) |
FY 2022 Revised |
||
Guidance Range |
|||
Net sales |
$1,125.0 - $1,170.0 |
||
Organic net sales growth |
4.5% - 8.5% |
||
Diluted net income per share |
$3.65 - $4.25 |
||
Adjusted diluted net income per share* |
$4.15 - $4.75 |
||
Adjusted EBITDA |
$140.0 - $155.0 |
||
Capital expenditures |
$25.0 - $30.0 |
||
Adjusted effective tax rate* |
20.0% - 25.0% |
||
*Excludes certain non-operational items and amortization expense |
|||
Conference Call
Tennant will host a conference call to discuss its 2022 first-quarter results today, April 28, 2022, at 10 a.m. Central Time (11 a.m. Eastern Time). The conference call and accompanying slides will be available via webcast on Tennant's investor website. To listen to the call live and view the slide presentation, go to investors.tennantco.com and click on the link at the bottom of the home page. A replay of the conference call, with slides, will be available at investors.tennantco.com.
Company Profile
Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.09 billion in 2021 and has approximately 4,250 employees. Tennant has manufacturing operations throughout the world and sells products directly in 15 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries.
Forward-Looking Statements
Certain statements contained in this document are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular risks and uncertainties presently facing us include: geopolitical and economic uncertainty throughout the world; uncertainty surrounding the impacts and duration of the COVID-19 pandemic; our ability to comply with global laws and regulations; our ability to adapt to customer pricing sensitivities; the competition in our business; fluctuations in the cost, quality or availability of raw materials and purchased components; our ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; our ability to attract, retain and develop key personnel and create effective succession planning strategies; our ability to effectively develop and manage strategic planning and growth processes and the related operational plans; our ability to successfully upgrade and evolve our information technology systems; our ability to successfully protect our information technology systems from cybersecurity risks; the occurrence of a significant business interruption; our ability to maintain the health and safety of our workers; our ability to integrate acquisitions; and our ability to develop and commercialize new innovative products and services.
We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Information about factors that could materially affect our results can be found in our 2021 Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.
We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by us in our filings with the Securities and Exchange Commission and in other written statements on related subjects. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
Non-GAAP Financial Measures
This news release and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or non-operational nature (hereinafter referred to as “special items”). Management believes that the Non-GAAP measures provide useful information to investors regarding the Company’s results of operations and financial condition because they permit a more meaningful comparison and understanding of Tennant Company’s operating performance for the current, past or future periods. Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company.
We believe that disclosing selling and administrative (“S&A”) expense – as adjusted, S&A expense as a percent of net sales – as adjusted, operating income – as adjusted, operating margin – as adjusted, income before income taxes – as adjusted, income tax expense – as adjusted, net income attributable to Tennant Company – as adjusted, net income attributable to Tennant Company per share – as adjusted, EBITDA – as adjusted, and EBITDA margin – as adjusted (collectively, the “Non-GAAP Measures”), excluding the impacts from special items, is useful to investors as a measure of operating performance. We use these as one measure to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We calculate S&A expense – as adjusted, and S&A expense as a percent of net sales – as adjusted by adjusting for restructuring charges. We calculate operating income – as adjusted and operating margin – as adjusted by adjusting for restructuring charges and gain on sale of business. We calculate income before income taxes – as adjusted by adjusting for the pre-tax effect of restructuring charges, amortization expense and gain on sale of business. We calculate income tax expense – as adjusted by adjusting for the tax effect of restructuring charges, amortization expense and gain on sale of business. We calculate net income attributable to Tennant Company – as adjusted by adjusting for the after-tax effect of restructuring charges, amortization expense and gain on sale of business. We calculate net income attributable to Tennant Company per share – as adjusted by adjusting for the after-tax effect of restructuring charges, amortization expense and gain on sale of business, and dividing the result by the diluted weighted average shares outstanding. We calculate EBITDA – as adjusted by adjusting for the pre-tax effect of the restructuring charges, amortization expense, gain on sale of business, interest expense, net, income tax expense, depreciation expense and amortization expense to net income including noncontrolling interest – as reported. We calculate EBITDA margin – as adjusted by dividing EBITDA – as adjusted by net sales.
Investors should consider these Non-GAAP financial measures in addition to, not as a substitute for, or better than, financial measures prepared in accordance with GAAP. Reconciliations of the components of these measures to the most directly comparable GAAP financial measures are included in the Supplemental Non-GAAP Financial Tables to this earnings release.
FINANCIAL TABLES FOLLOW
TENNANT COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||
(In millions, except shares and per share data) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net sales |
|
$ |
258.1 |
|
|
$ |
263.3 |
|
Cost of sales |
|
|
159.2 |
|
|
|
150.0 |
|
Gross profit |
|
|
98.9 |
|
|
|
113.3 |
|
Selling and administrative expense |
|
|
76.6 |
|
|
|
79.4 |
|
Research and development expense |
|
|
7.7 |
|
|
|
7.4 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Operating income |
|
|
14.6 |
|
|
|
36.3 |
|
Interest expense, net |
|
|
(0.3 |
) |
|
|
(3.9 |
) |
Net foreign currency transaction gain |
|
|
0.6 |
|
|
|
0.5 |
|
Other (expense) income, net |
|
|
(0.2 |
) |
|
|
0.1 |
|
Income before income taxes |
|
|
14.7 |
|
|
|
33.0 |
|
Income tax expense |
|
|
4.4 |
|
|
|
7.3 |
|
Net income attributable to Tennant Company |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tennant Company per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
|
$ |
1.39 |
|
Diluted |
|
$ |
0.55 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
18,463,419 |
|
|
|
18,456,079 |
|
Diluted |
|
|
18,799,732 |
|
|
|
18,831,423 |
|
GEOGRAPHICAL NET SALES(1) (Unaudited)
|
|
Three Months Ended |
|
|||||||||
|
|
March 31, |
|
|||||||||
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|||
Americas |
|
$ |
160.3 |
|
|
$ |
157.8 |
|
|
|
1.6 |
% |
Europe, Middle East and Africa |
|
|
78.7 |
|
|
|
80.9 |
|
|
|
(2.7 |
)% |
Asia Pacific |
|
|
19.1 |
|
|
|
24.6 |
|
|
|
(22.4 |
)% |
Total |
|
$ |
258.1 |
|
|
$ |
263.3 |
|
|
|
(2.0 |
)% |
(1) Net of intercompany sales |
||||||||||||
TENNANT COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(In millions) |
|
(Unaudited) |
|
|
|
|
||
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash |
|
$ |
110.4 |
|
|
$ |
123.6 |
|
Receivables, less allowances of $5.6 and $5.3, respectively |
|
|
199.5 |
|
|
|
211.4 |
|
Inventories |
|
|
184.4 |
|
|
|
160.6 |
|
Prepaid and other current assets |
|
|
30.5 |
|
|
|
31.2 |
|
Total current assets |
|
|
524.8 |
|
|
|
526.8 |
|
Property, plant and equipment, less accumulated depreciation of $265.1 and $258.4, respectively |
|
|
171.2 |
|
|
|
172.8 |
|
Operating lease assets |
|
|
38.6 |
|
|
|
41.3 |
|
Goodwill |
|
|
190.0 |
|
|
|
193.1 |
|
Intangible assets, net |
|
|
91.6 |
|
|
|
98.0 |
|
Other assets |
|
|
34.0 |
|
|
|
29.7 |
|
Total assets |
|
$ |
1,050.2 |
|
|
$ |
1,061.7 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
4.7 |
|
|
$ |
4.2 |
|
Accounts payable |
|
|
120.0 |
|
|
|
121.5 |
|
Employee compensation and benefits |
|
|
48.0 |
|
|
|
60.6 |
|
Other current liabilities |
|
|
93.7 |
|
|
|
104.0 |
|
Total current liabilities |
|
|
266.4 |
|
|
|
290.3 |
|
Long-term debt |
|
|
276.9 |
|
|
|
263.4 |
|
Long-term operating lease liabilities |
|
|
22.9 |
|
|
|
25.4 |
|
Employee-related benefits |
|
|
16.2 |
|
|
|
16.3 |
|
Deferred income taxes |
|
|
19.6 |
|
|
|
20.6 |
|
Other liabilities |
|
|
10.9 |
|
|
|
10.6 |
|
Total long-term liabilities |
|
|
346.5 |
|
|
|
336.3 |
|
Total liabilities |
|
|
612.9 |
|
|
|
626.6 |
|
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,579,816 and 18,535,116 shares issued and outstanding, respectively |
|
|
7.0 |
|
|
|
7.0 |
|
Additional paid-in capital |
|
|
54.6 |
|
|
|
54.1 |
|
Retained earnings |
|
|
416.3 |
|
|
|
410.6 |
|
Accumulated other comprehensive loss |
|
|
(41.9 |
) |
|
|
(37.9 |
) |
Total Tennant Company shareholders' equity |
|
|
436.0 |
|
|
|
433.8 |
|
Noncontrolling interest |
|
|
1.3 |
|
|
|
1.3 |
|
Total equity |
|
|
437.3 |
|
|
|
435.1 |
|
Total liabilities and total equity |
|
$ |
1,050.2 |
|
|
$ |
1,061.7 |
|
TENNANT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
(In millions) |
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
8.2 |
|
|
|
8.3 |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
Deferred income tax expense (benefit) |
|
|
(1.3 |
) |
|
|
(1.5 |
) |
Share-based compensation expense |
|
|
1.8 |
|
|
|
3.1 |
|
Bad debt and returns expense |
|
|
0.4 |
|
|
|
0.6 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Other, net |
|
|
0.2 |
|
|
|
1.4 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
10.1 |
|
|
|
(0.7 |
) |
Inventories |
|
|
(29.0 |
) |
|
|
(18.3 |
) |
Accounts payable |
|
|
2.0 |
|
|
|
3.2 |
|
Employee compensation and benefits |
|
|
(12.6 |
) |
|
|
(5.7 |
) |
Other assets and liabilities |
|
|
(4.7 |
) |
|
|
6.8 |
|
Net cash (used in) provided by operating activities |
|
|
(10.1 |
) |
|
|
18.4 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(5.0 |
) |
|
|
(4.8 |
) |
Proceeds from sale of business, net of cash divested |
|
|
— |
|
|
|
24.7 |
|
Purchase of intangible assets |
|
|
— |
|
|
|
(0.1 |
) |
Investment in leased assets |
|
|
(3.7 |
) |
|
|
— |
|
Cash received from leased assets |
|
|
0.1 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(8.6 |
) |
|
|
19.8 |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
15.0 |
|
|
|
— |
|
Repayments of borrowings |
|
|
(0.9 |
) |
|
|
(0.2 |
) |
Contingent consideration payments |
|
|
— |
|
|
|
(0.5 |
) |
(Repurchases) proceeds from exercise of stock options, net of employee tax withholdings obligations |
|
|
(1.2 |
) |
|
|
3.1 |
|
Dividends paid |
|
|
(4.6 |
) |
|
|
(4.2 |
) |
Net cash provided by (used in) financing activities |
|
|
8.3 |
|
|
|
(1.8 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(2.8 |
) |
|
|
(2.2 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(13.2 |
) |
|
|
34.2 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
123.6 |
|
|
|
141.0 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
110.4 |
|
|
$ |
175.2 |
|
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Selling and Administrative Expense (S&A expense) and Operating Income |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Selling and administrative expense - as reported |
|
$ |
76.6 |
|
|
$ |
79.4 |
|
Selling and administrative expense as a percent of Net Sales - as reported |
|
|
29.7 |
% |
|
|
30.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
(0.2 |
) |
|
|
— |
|
Selling and administrative expense - as adjusted |
|
$ |
76.4 |
|
|
$ |
79.4 |
|
Selling and administrative expense - as adjusted |
|
|
29.6 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
|
|
|
Operating income - as reported |
|
$ |
14.6 |
|
|
$ |
36.3 |
|
Operating margin - as reported |
|
|
5.7 |
% |
|
|
13.8 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Operating income - as adjusted |
|
$ |
14.8 |
|
|
$ |
26.5 |
|
Operating margin - as adjusted |
|
|
5.7 |
% |
|
|
10.1 |
% |
Reported to Adjusted Income Before Income Taxes and Income Tax Expense |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Income before income taxes - as reported |
|
$ |
14.7 |
|
|
$ |
33.0 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Income before income taxes - as adjusted |
|
$ |
19.4 |
|
|
$ |
28.5 |
|
|
|
|
|
|
|
|
|
|
Income tax expense - as reported |
|
$ |
4.4 |
|
|
$ |
7.3 |
|
Effective tax rate - as reported |
|
|
29.9 |
% |
|
|
22.1 |
% |
Adjustments(1): |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
— |
|
|
|
— |
|
Amortization expense |
|
|
1.3 |
|
|
|
1.5 |
|
Gain on sale of business |
|
|
— |
|
|
|
(2.3 |
) |
Income tax expense - as adjusted |
|
$ |
5.7 |
|
|
$ |
6.5 |
|
Effective tax rate - as adjusted |
|
|
29.4 |
% |
|
|
22.8 |
% |
(1) In determining the tax impact, we applied the statutory rate in effect for each jurisdiction where income or expenses were generated. |
||||||||
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Net Income and Net Income Per Share Attributable to Tennant Company |
||||||||
(In millions, except per share data) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net income attributable to Tennant Company - as reported |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Amortization expense |
|
|
3.2 |
|
|
|
3.8 |
|
Gain on sale of business |
|
|
— |
|
|
|
(7.5 |
) |
Net income attributable to Tennant Company - as adjusted |
|
$ |
13.7 |
|
|
$ |
22.0 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tennant Company per share - as reported: |
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.55 |
|
|
$ |
1.37 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.01 |
|
|
|
— |
|
Amortization expense |
|
|
0.17 |
|
|
|
0.19 |
|
Gain on sale of business |
|
|
— |
|
|
|
(0.40 |
) |
Net income attributable to Tennant Company per diluted share - as adjusted |
|
$ |
0.73 |
|
|
$ |
1.17 |
|
Reported Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net income attributable to Tennant Company - as reported |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Less: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
0.3 |
|
|
|
3.9 |
|
Income tax expense |
|
|
4.4 |
|
|
|
7.3 |
|
Depreciation expense |
|
|
8.2 |
|
|
|
8.3 |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
EBITDA |
|
|
27.7 |
|
|
|
50.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
EBITDA - as adjusted |
|
$ |
27.9 |
|
|
$ |
40.7 |
|
EBITDA margin - as adjusted |
|
|
10.8 |
% |
|
|
15.5 |
% |
Чистая прибыль за первый квартал составила $10,3 млн при чистых продажах в размере $258,1 млн, что представляет собой органический рост продаж на 0,8%.
Сохраняющийся высокий рыночный спрос приводит к рекордному отставанию в продажах
Скорректированная EBITDA за первый квартал составила $27,9 млн, или 10,8% от продаж; скорректированная разводненная прибыль на акцию составила $0,73
Компания обновила прогноз прибыли по GAAP на 2022 год в диапазоне от 4,15 до 4,75 доллара на разводненную акцию и скорректированную EBITDA от 140 до 155 миллионов долларов.
МИННЕАПОЛИС -- (BUSINESS WIRE)--Компания Tennant (“Tennant” или “Компания”) (NYSE: TNC), мировой лидер в разработке, производстве и маркетинге решений, которые помогают создать более чистый, безопасный и здоровый мир, сегодня отчиталась о результатах за первый квартал 2022 года.
“В целом, наши финансовые показатели за первый квартал соответствуют нашим ожиданиям, а спрос на наши продукты и услуги остается высоким, достигнув уровня спроса, существовавшего до пандемии. Мы продолжаем предпринимать действия, чтобы компенсировать инфляционное давление и увеличить производство, чтобы обслуживать наших клиентов, поскольку мы ориентируемся в текущих условиях эксплуатации”, - сказал Дэйв Хамл, президент и главный исполнительный директор Tennant Company. “Вступая в 2022 год, мы ожидали, что доступность компонентов ограничит наше производство, но ожидали, что по мере нашего продвижения в течение года рыночные условия начнут смягчаться и стабилизироваться. Основываясь на текущих макроэкономических прогнозах, мы теперь считаем, что усилия по восстановлению будут более взвешенными. Таким образом, мы снижаем наш прогноз по скорректированной EBITDA на весь год со 145 до 160 миллионов долларов до 140 -155 миллионов долларов”.
Результаты первого квартала 2022 года
(In millions) |
Three Months Ended |
||||
March 31, |
|||||
2022 |
2021 |
Change |
|||
Net sales |
$258.1 |
|
$263.3 |
|
-2.0% |
Net income |
$10.3 |
$25.7 |
-59.9% |
||
Gross margin |
38.3% |
|
43.0% |
|
-4.7% |
Adjusted EBITDA |
$27.9 |
$40.7 |
-31.4% |
||
Adjusted EBITDA margin |
10.8% |
|
15.5% |
|
-4.7% |
Консолидированные чистые продажи в первом квартале 2022 года составили 258,1 млн долларов, что на 2,0% меньше по сравнению с консолидированными чистыми продажами в размере 263,3 млн долларов в первом квартале 2021 года. Общий спрос оставался высоким; однако снижение доступности запасных частей привело к увеличению количества невыполненных заказов.
Снижение консолидированных чистых продаж на 2,0% в первом квартале 2022 года по сравнению с аналогичным периодом 2021 года было обусловлено:
Валовая прибыль составила 38,3% в первом квартале 2022 года по сравнению с 43,0% в предыдущем году. Снижение было обусловлено главным образом существенной инфляцией и более высокими затратами на перевозку, которые были частично компенсированы ростом цен. Несмотря на то, что валовая прибыль была ниже, чем в предыдущем году, она увеличилась на 189 базисных пунктов по сравнению с четвертым кварталом 2021 года. Скорректированный показатель EBITDA в первом квартале 2022 года составил 27,9 млн долларов по сравнению с 40,7 млн долларов за аналогичный период прошлого года. Снижение скорректированной EBITDA произошло в основном из-за снижения маржи, частично компенсированного снижением продаж и административных расходов. Чистая прибыль, приходящаяся на компанию Tennant, снизилась на 15,4 млн долларов до 10,3 млн долларов, что обусловлено снижением маржи, частично компенсированной экономией на процентных расходах и прибылью в размере 7,5 млн долларов после уплаты налогов от продажи бизнеса Компании по производству покрытий, признанного в 2021 году.
Результаты органических продаж
Three Months Ended |
||||||||
March 31, 2022 |
||||||||
Americas |
EMEA |
APAC |
Total |
|||||
Organic net sales growth |
2.3% |
|
4.2% |
|
-20.2% |
|
0.8% |
|
Чистые органические продажи выросли на 0,8% в первом квартале 2022 года. Региональные результаты были следующими:
Денежный поток, Распределение капитала и Ликвидность
За первый квартал 2022 года денежный поток, использованный в операционной деятельности, составил 10,1 млн долларов США по сравнению с 18,4 млн долларов США от операционной деятельности за аналогичный период прошлого года. Снижение операционного денежного потока в годовом исчислении было обусловлено главным образом значительными изменениями в оборотном капитале, в частности в товарно-материальных запасах, которые увеличились в результате роста затрат и увеличения резервных запасов.
Компания продолжает направлять денежный поток на удовлетворение потребностей в операционном капитале и возврат капитала акционерам. Ликвидность оставалась высокой: остаток денежных средств и их эквивалентов на конец первого квартала составил 110,4 миллиона долларов США.
Перспективы бизнеса на 2022 год
“Мы довольны высоким, сохраняющимся спросом на продукты Tennant и воодушевлены целеустремленностью и гибкостью наших команд в решении меняющихся рыночных условий для удовлетворения этого спроса”, - сказал Хумл. “Макроэкономические препятствия и геополитические факторы риска ухудшились, и наше пересмотренное руководство отражает текущую операционную среду, которая ограничена доступностью запчастей и более высокой инфляцией. Мы работаем творчески и усердно, чтобы преодолеть эти проблемы, и сохраняем хорошие позиции, чтобы извлечь выгоду из любого улучшения доступности запасных частей”.
Для 2022 года Tennant предоставляет следующие обновленные рекомендации:
(In millions except per share data) |
FY 2022 Revised |
||
Guidance Range |
|||
Net sales |
$1,125.0 - $1,170.0 |
||
Organic net sales growth |
4.5% - 8.5% |
||
Diluted net income per share |
$3.65 - $4.25 |
||
Adjusted diluted net income per share* |
$4.15 - $4.75 |
||
Adjusted EBITDA |
$140.0 - $155.0 |
||
Capital expenditures |
$25.0 - $30.0 |
||
Adjusted effective tax rate* |
20.0% - 25.0% |
||
*Excludes certain non-operational items and amortization expense |
|||
Конференц-связь
Tennant проведет селекторное совещание для обсуждения результатов первого квартала 2022 года сегодня, 28 апреля 2022 года, в 10 утра по Центральному времени (11 утра по Восточному времени). Конференц-связь и сопровождающие слайды будут доступны через веб-трансляцию на веб-сайте Tennant для инвесторов. Чтобы прослушать звонок в прямом эфире и просмотреть слайд-презентацию, перейдите по investors.tennantco.com и нажмите на ссылку в нижней части домашней страницы. Запись телефонной конференции со слайдами будет доступна по адресу investors.tennantco.com .
Профиль компании
Основанная в 1870 году компания Tennant (TNC) со штаб-квартирой в Иден-Прери, штат Миннесота, является мировым лидером в разработке, производстве и маркетинге решений, которые помогают создать более чистый, безопасный и здоровый мир. Ее продукция включает в себя оборудование для ухода за поверхностями в промышленных, коммерческих и наружных помещениях; технологии очистки без моющих средств и другие экологически чистые технологии; а также инструменты и принадлежности для чистки. Глобальная сеть обслуживания на местах Tennant является самой обширной в отрасли. Объем продаж компании Tennant в 2021 году составил 1,09 миллиарда долларов, в ней работает около 4250 сотрудников. Tennant имеет производственные мощности по всему миру и продает продукцию напрямую в 15 странах и через дистрибьюторов в более чем 100 странах. Для получения дополнительной информации посетите www.tennantco.com и www.ipcworldwide.com . Логотип компании Tennant и другие товарные знаки, обозначенные символом “®”, являются товарными знаками компании Tennant, зарегистрированными в США и/или других странах.
Прогнозные заявления
Определенные заявления, содержащиеся в этом документе, считаются “прогнозными заявлениями” по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам. Эти заявления не относятся к строго историческим или текущим фактам и содержат текущие ожидания или прогнозы будущих событий. Любые такие ожидания или прогнозы будущих событий зависят от множества факторов. К ним относятся факторы, влияющие на все предприятия, работающие на глобальном рынке, а также вопросы, характерные для нас и рынков, которые мы обслуживаем. Особые риски и неопределенности, с которыми мы сталкиваемся в настоящее время, включают: геополитическую и экономическую неопределенность во всем мире; неопределенность, связанную с последствиями и продолжительностью пандемии COVID-19; нашу способность соблюдать глобальные законы и правила; нашу способность адаптироваться к ценовой чувствительности клиентов; конкуренцию в нашем бизнесе; колебания стоимости, качество или доступность сырья и закупаемых компонентов; наша способность корректировать цены в соответствии с давлением затрат; непредвиденные претензии по ответственности за продукцию или проблемы с качеством продукции; наша способность привлекать, удерживать и развивать ключевой персонал и создавать эффективные стратегии планирования преемственности; наша способность эффективно разрабатывать и управлять процессами стратегического планирования и роста и соответствующие операционные планы; наша способность успешно модернизировать и развивать наши системы информационных технологий; наша способность успешно защищать наши системы информационных технологий от рисков кибербезопасности; возникновение значительных перерывов в работе; наша способность поддерживать здоровье и безопасность наших работников; наша способность интегрировать приобретения; и наша способность разработка и коммерциализация новых инновационных продуктов и услуг.
Мы предупреждаем, что прогнозные заявления должны быть тщательно рассмотрены и что фактические результаты могут существенно отличаться из-за рисков и неопределенностей, как известных, так и неизвестных. Информацию о факторах, которые могут существенно повлиять на наши результаты, можно найти в нашей форме 10-K. на 2021 год. Акционерам, потенциальным инвесторам и другим читателям настоятельно рекомендуется учитывать эти факторы при оценке прогнозных заявлений и предостерегать от чрезмерного доверия к таким прогнозным заявлениям.
Мы не берем на себя никаких обязательств по обновлению или пересмотру каких-либо прогнозных заявлений, будь то в результате новой информации, будущих событий или иным образом, за исключением случаев, предусмотренных законом. Инвесторам рекомендуется ознакомиться с любым дальнейшим раскрытием нами информации в наших заявках в Комиссию по ценным бумагам и биржам и в других письменных заявлениях по смежным вопросам. Невозможно предвидеть или предусмотреть все факторы риска, и инвесторам не следует рассматривать какой-либо список таких факторов как исчерпывающий или полный список всех рисков или неопределенностей.
Финансовые показатели, Не относящиеся к ОПБУ
Этот пресс-релиз и связанная с ним телеконференция включают презентацию мер, не относящихся к GAAP, которые включают или исключают специальные статьи разового и/или неоперативного характера (далее именуемые “специальные статьи”). Руководство считает, что показатели, не относящиеся к GAAP, предоставляют инвесторам полезную информацию о результатах деятельности и финансовом состоянии Компании, поскольку они позволяют более содержательно сравнивать и понимать операционные показатели Компании Tennant за текущий, прошлые или будущие периоды. Руководство использует эти показатели, не относящиеся к GAAP, для мониторинга и оценки текущих операционных результатов и тенденций, а также для получения представления о сравнительных операционных показателях Компании.
Мы считаем, что раскрытие информации о продажах и административных расходах (“S&A”) – скорректировано, расходы на S&A в процентах от чистых продаж – скорректированы, операционный доход – скорректирован, операционная маржа – скорректирована, доход до налогообложения – скорректирован, расходы по налогу на прибыль – скорректированы, чистая прибыль, приходящаяся на компанию Tennant, – скорректированная, чистая прибыль, приходящаяся на компанию Tennant на акцию, – скорректированная, EBITDA – скорректированная, и рентабельность по EBITDA – скорректированная (в совокупности “Показатели, не относящиеся к GAAP”), исключая влияние специальных статей, полезна для инвесторов в качестве показателя эксплуатационные характеристики. Мы используем их в качестве одного из показателей для мониторинга и оценки операционной эффективности. Показатели, не относящиеся к GAAP, представляют собой финансовые показатели, которые не отражают Общепринятые принципы бухгалтерского учета Соединенных Штатов (GAAP). Мы рассчитываем расходы на НИОКР – с поправкой, а расходы на НИОКР – в процентах от чистых продаж - с поправкой на расходы по реструктуризации. Мы рассчитываем скорректированный операционный доход и скорректированную операционную маржу с учетом расходов на реструктуризацию и прибыли от продажи бизнеса. Мы рассчитываем доход до вычета налогов на прибыль – скорректированный с учетом доналогового эффекта расходов на реструктуризацию, расходов на амортизацию и прибыли от продажи бизнеса. Мы рассчитываем расходы по налогу на прибыль – скорректированные с учетом налогового эффекта расходов на реструктуризацию, расходов на амортизацию и прибыли от продажи бизнеса. Мы рассчитываем чистую прибыль, относящуюся к компании Tennant, скорректированную с учетом эффекта после налогообложения расходов на реструктуризацию, расходов на амортизацию и прибыли от продажи бизнеса. Мы рассчитываем чистую прибыль, приходящуюся на компанию Tennant, на акцию, скорректированную путем корректировки на влияние расходов на реструктуризацию после налогообложения, расходов на амортизацию и прибыли от продажи бизнеса, и деления результата на разводненную средневзвешенную стоимость акций в обращении. Мы рассчитываем показатель EBITDA – скорректированный с учетом доналогового эффекта расходов на реструктуризацию, расходов на амортизацию, прибыли от продажи бизнеса, процентных расходов, нетто, расходов по налогу на прибыль, расходов на амортизацию и расходов на амортизацию до чистой прибыли, включая неконтролирующие проценты, - как указано в отчете. Мы рассчитываем рентабельность по EBITDA – скорректированную путем деления EBITDA – скорректированной на чистые продажи.
Инвесторам следует рассматривать эти финансовые показатели, не относящиеся к GAAP, в дополнение, а не в качестве замены или улучшения финансовых показателей, подготовленных в соответствии с GAAP. Сверки компонентов этих показателей с наиболее непосредственно сопоставимыми финансовыми показателями GAAP включены в Дополнительные Финансовые таблицы, не относящиеся к GAAP, к настоящему отчету о доходах.
финансовые таблицы следуют
Tennant COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||
(In millions, except shares and per share data) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net sales |
|
$ |
258.1 |
|
|
$ |
263.3 |
|
Cost of sales |
|
|
159.2 |
|
|
|
150.0 |
|
Gross profit |
|
|
98.9 |
|
|
|
113.3 |
|
Selling and administrative expense |
|
|
76.6 |
|
|
|
79.4 |
|
Research and development expense |
|
|
7.7 |
|
|
|
7.4 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Operating income |
|
|
14.6 |
|
|
|
36.3 |
|
Interest expense, net |
|
|
(0.3 |
) |
|
|
(3.9 |
) |
Net foreign currency transaction gain |
|
|
0.6 |
|
|
|
0.5 |
|
Other (expense) income, net |
|
|
(0.2 |
) |
|
|
0.1 |
|
Income before income taxes |
|
|
14.7 |
|
|
|
33.0 |
|
Income tax expense |
|
|
4.4 |
|
|
|
7.3 |
|
Net income attributable to Tennant Company |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tennant Company per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
|
$ |
1.39 |
|
Diluted |
|
$ |
0.55 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
18,463,419 |
|
|
|
18,456,079 |
|
Diluted |
|
|
18,799,732 |
|
|
|
18,831,423 |
|
ГЕОГРАФИЧЕСКИЕ ЧИСТЫЕ ПРОДАЖИ(1) (неаудированные)
|
|
Three Months Ended |
|
|||||||||
|
|
March 31, |
|
|||||||||
|
|
2022 |
|
|
2021 |
|
|
% Change |
|
|||
Americas |
|
$ |
160.3 |
|
|
$ |
157.8 |
|
|
|
1.6 |
% |
Europe, Middle East and Africa |
|
|
78.7 |
|
|
|
80.9 |
|
|
|
(2.7 |
)% |
Asia Pacific |
|
|
19.1 |
|
|
|
24.6 |
|
|
|
(22.4 |
)% |
Total |
|
$ |
258.1 |
|
|
$ |
263.3 |
|
|
|
(2.0 |
)% |
(1) Net of intercompany sales |
||||||||||||
Tennant COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(In millions) |
|
(Unaudited) |
|
|
|
|
||
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Cash, cash equivalents, and restricted cash |
|
$ |
110.4 |
|
|
$ |
123.6 |
|
Receivables, less allowances of $5.6 and $5.3, respectively |
|
|
199.5 |
|
|
|
211.4 |
|
Inventories |
|
|
184.4 |
|
|
|
160.6 |
|
Prepaid and other current assets |
|
|
30.5 |
|
|
|
31.2 |
|
Total current assets |
|
|
524.8 |
|
|
|
526.8 |
|
Property, plant and equipment, less accumulated depreciation of $265.1 and $258.4, respectively |
|
|
171.2 |
|
|
|
172.8 |
|
Operating lease assets |
|
|
38.6 |
|
|
|
41.3 |
|
Goodwill |
|
|
190.0 |
|
|
|
193.1 |
|
Intangible assets, net |
|
|
91.6 |
|
|
|
98.0 |
|
Other assets |
|
|
34.0 |
|
|
|
29.7 |
|
Total assets |
|
$ |
1,050.2 |
|
|
$ |
1,061.7 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
4.7 |
|
|
$ |
4.2 |
|
Accounts payable |
|
|
120.0 |
|
|
|
121.5 |
|
Employee compensation and benefits |
|
|
48.0 |
|
|
|
60.6 |
|
Other current liabilities |
|
|
93.7 |
|
|
|
104.0 |
|
Total current liabilities |
|
|
266.4 |
|
|
|
290.3 |
|
Long-term debt |
|
|
276.9 |
|
|
|
263.4 |
|
Long-term operating lease liabilities |
|
|
22.9 |
|
|
|
25.4 |
|
Employee-related benefits |
|
|
16.2 |
|
|
|
16.3 |
|
Deferred income taxes |
|
|
19.6 |
|
|
|
20.6 |
|
Other liabilities |
|
|
10.9 |
|
|
|
10.6 |
|
Total long-term liabilities |
|
|
346.5 |
|
|
|
336.3 |
|
Total liabilities |
|
|
612.9 |
|
|
|
626.6 |
|
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,579,816 and 18,535,116 shares issued and outstanding, respectively |
|
|
7.0 |
|
|
|
7.0 |
|
Additional paid-in capital |
|
|
54.6 |
|
|
|
54.1 |
|
Retained earnings |
|
|
416.3 |
|
|
|
410.6 |
|
Accumulated other comprehensive loss |
|
|
(41.9 |
) |
|
|
(37.9 |
) |
Total Tennant Company shareholders' equity |
|
|
436.0 |
|
|
|
433.8 |
|
Noncontrolling interest |
|
|
1.3 |
|
|
|
1.3 |
|
Total equity |
|
|
437.3 |
|
|
|
435.1 |
|
Total liabilities and total equity |
|
$ |
1,050.2 |
|
|
$ |
1,061.7 |
|
Tennant COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
|
|
Three Months Ended |
|
|||||
(In millions) |
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income including noncontrolling interest |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
8.2 |
|
|
|
8.3 |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
Deferred income tax expense (benefit) |
|
|
(1.3 |
) |
|
|
(1.5 |
) |
Share-based compensation expense |
|
|
1.8 |
|
|
|
3.1 |
|
Bad debt and returns expense |
|
|
0.4 |
|
|
|
0.6 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Other, net |
|
|
0.2 |
|
|
|
1.4 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
10.1 |
|
|
|
(0.7 |
) |
Inventories |
|
|
(29.0 |
) |
|
|
(18.3 |
) |
Accounts payable |
|
|
2.0 |
|
|
|
3.2 |
|
Employee compensation and benefits |
|
|
(12.6 |
) |
|
|
(5.7 |
) |
Other assets and liabilities |
|
|
(4.7 |
) |
|
|
6.8 |
|
Net cash (used in) provided by operating activities |
|
|
(10.1 |
) |
|
|
18.4 |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(5.0 |
) |
|
|
(4.8 |
) |
Proceeds from sale of business, net of cash divested |
|
|
— |
|
|
|
24.7 |
|
Purchase of intangible assets |
|
|
— |
|
|
|
(0.1 |
) |
Investment in leased assets |
|
|
(3.7 |
) |
|
|
— |
|
Cash received from leased assets |
|
|
0.1 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(8.6 |
) |
|
|
19.8 |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
15.0 |
|
|
|
— |
|
Repayments of borrowings |
|
|
(0.9 |
) |
|
|
(0.2 |
) |
Contingent consideration payments |
|
|
— |
|
|
|
(0.5 |
) |
(Repurchases) proceeds from exercise of stock options, net of employee tax withholdings obligations |
|
|
(1.2 |
) |
|
|
3.1 |
|
Dividends paid |
|
|
(4.6 |
) |
|
|
(4.2 |
) |
Net cash provided by (used in) financing activities |
|
|
8.3 |
|
|
|
(1.8 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(2.8 |
) |
|
|
(2.2 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(13.2 |
) |
|
|
34.2 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
123.6 |
|
|
|
141.0 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
110.4 |
|
|
$ |
175.2 |
|
Tennant COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Selling and Administrative Expense (S&A expense) and Operating Income |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Selling and administrative expense - as reported |
|
$ |
76.6 |
|
|
$ |
79.4 |
|
Selling and administrative expense as a percent of Net Sales - as reported |
|
|
29.7 |
% |
|
|
30.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
(0.2 |
) |
|
|
— |
|
Selling and administrative expense - as adjusted |
|
$ |
76.4 |
|
|
$ |
79.4 |
|
Selling and administrative expense - as adjusted |
|
|
29.6 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
|
|
|
Operating income - as reported |
|
$ |
14.6 |
|
|
$ |
36.3 |
|
Operating margin - as reported |
|
|
5.7 |
% |
|
|
13.8 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Operating income - as adjusted |
|
$ |
14.8 |
|
|
$ |
26.5 |
|
Operating margin - as adjusted |
|
|
5.7 |
% |
|
|
10.1 |
% |
Reported to Adjusted Income Before Income Taxes and Income Tax Expense |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Income before income taxes - as reported |
|
$ |
14.7 |
|
|
$ |
33.0 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
Income before income taxes - as adjusted |
|
$ |
19.4 |
|
|
$ |
28.5 |
|
|
|
|
|
|
|
|
|
|
Income tax expense - as reported |
|
$ |
4.4 |
|
|
$ |
7.3 |
|
Effective tax rate - as reported |
|
|
29.9 |
% |
|
|
22.1 |
% |
Adjustments(1): |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
— |
|
|
|
— |
|
Amortization expense |
|
|
1.3 |
|
|
|
1.5 |
|
Gain on sale of business |
|
|
— |
|
|
|
(2.3 |
) |
Income tax expense - as adjusted |
|
$ |
5.7 |
|
|
$ |
6.5 |
|
Effective tax rate - as adjusted |
|
|
29.4 |
% |
|
|
22.8 |
% |
(1) In determining the tax impact, we applied the statutory rate in effect for each jurisdiction where income or expenses were generated. |
||||||||
Tennant COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Net Income and Net Income Per Share Attributable to Tennant Company |
||||||||
(In millions, except per share data) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net income attributable to Tennant Company - as reported |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Amortization expense |
|
|
3.2 |
|
|
|
3.8 |
|
Gain on sale of business |
|
|
— |
|
|
|
(7.5 |
) |
Net income attributable to Tennant Company - as adjusted |
|
$ |
13.7 |
|
|
$ |
22.0 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Tennant Company per share - as reported: |
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.55 |
|
|
$ |
1.37 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.01 |
|
|
|
— |
|
Amortization expense |
|
|
0.17 |
|
|
|
0.19 |
|
Gain on sale of business |
|
|
— |
|
|
|
(0.40 |
) |
Net income attributable to Tennant Company per diluted share - as adjusted |
|
$ |
0.73 |
|
|
$ |
1.17 |
|
Reported Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) |
||||||||
(In millions) |
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Net income attributable to Tennant Company - as reported |
|
$ |
10.3 |
|
|
$ |
25.7 |
|
Less: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
0.3 |
|
|
|
3.9 |
|
Income tax expense |
|
|
4.4 |
|
|
|
7.3 |
|
Depreciation expense |
|
|
8.2 |
|
|
|
8.3 |
|
Amortization expense |
|
|
4.5 |
|
|
|
5.3 |
|
EBITDA |
|
|
27.7 |
|
|
|
50.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring charge (S&A expense) |
|
|
0.2 |
|
|
|
— |
|
Gain on sale of business |
|
|
— |
|
|
|
(9.8 |
) |
EBITDA - as adjusted |
|
$ |
27.9 |
|
|
$ |
40.7 |
|
EBITDA margin - as adjusted |
|
|
10.8 |
% |
|
|
15.5 |
% |
