Tennant Company Reports 2024 Fourth-Quarter and Full-Year Results
Tennant Company (NYSE: TNC) reported its Q4 and full-year 2024 financial results, achieving record full-year net sales of $1,286.7 million, up 3.5% from 2023. The company's organic growth of 3.2% was driven by price growth across regions and volume growth in the Americas.
Q4 net sales increased 5.6% to $328.9 million, with organic growth of 6.3% led by volume growth in Americas and EMEA. Full-year adjusted EBITDA reached $208.8 million, an 8.2% increase, with margin expanding to 16.2%. However, net income decreased to $83.7 million, down 23.6% from 2023.
The company generated $89.7 million in operating cash flow and returned $41.0 million to shareholders through dividends and share repurchases. The Board authorized a new 2,000,000 share repurchase program. For 2025, Tennant expects organic net sales to decline between 1% to 4%, but anticipates margin expansion through cost management and operating efficiencies.
Tennant Company (NYSE: TNC) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, raggiungendo vendite nette record per l'intero anno di $1.286,7 milioni, in aumento del 3,5% rispetto al 2023. La crescita organica dell'azienda del 3,2% è stata guidata dall'aumento dei prezzi in tutte le regioni e dalla crescita dei volumi nelle Americhe.
Le vendite nette del quarto trimestre sono aumentate del 5,6% a $328,9 milioni, con una crescita organica del 6,3% guidata dalla crescita dei volumi nelle Americhe e nell'EMEA. L'EBITDA rettificato dell'intero anno ha raggiunto i $208,8 milioni, con un aumento dell'8,2%, e il margine è aumentato al 16,2%. Tuttavia, l'utile netto è diminuito a $83,7 milioni, in calo del 23,6% rispetto al 2023.
L'azienda ha generato $89,7 milioni in flusso di cassa operativo e ha restituito $41,0 milioni agli azionisti attraverso dividendi e riacquisti di azioni. Il Consiglio ha autorizzato un nuovo programma di riacquisto di 2.000.000 di azioni. Per il 2025, Tennant prevede che le vendite nette organiche diminuiranno tra l'1% e il 4%, ma prevede un'espansione del margine attraverso la gestione dei costi e l'efficienza operativa.
Tennant Company (NYSE: TNC) reportó sus resultados financieros del cuarto trimestre y del año completo 2024, logrando unas ventas netas récord de $1,286.7 millones para todo el año, un aumento del 3.5% en comparación con 2023. El crecimiento orgánico de la compañía del 3.2% fue impulsado por el aumento de precios en todas las regiones y el crecimiento de volumen en las Américas.
Las ventas netas del cuarto trimestre aumentaron un 5.6% a $328.9 millones, con un crecimiento orgánico del 6.3% liderado por el crecimiento de volumen en las Américas y EMEA. El EBITDA ajustado del año completo alcanzó los $208.8 millones, un incremento del 8.2%, con un margen que se expandió al 16.2%. Sin embargo, el ingreso neto disminuyó a $83.7 millones, una caída del 23.6% en comparación con 2023.
La compañía generó $89.7 millones en flujo de efectivo operativo y devolvió $41.0 millones a los accionistas a través de dividendos y recompra de acciones. La Junta autorizó un nuevo programa de recompra de 2,000,000 de acciones. Para 2025, Tennant espera que las ventas netas orgánicas disminuyan entre un 1% y un 4%, pero anticipa una expansión del margen a través de la gestión de costos y eficiencias operativas.
테넌트 컴퍼니 (NYSE: TNC)는 2024년 4분기 및 연간 재무 실적을 보고하며, 연간 순매출이 12억 8,670만 달러로 3.5% 증가하며 사상 최고치를 기록했습니다. 회사의 유기적 성장률은 3.2%로, 지역별 가격 상승과 미주 지역의 물량 증가에 의해 주도되었습니다.
4분기 순매출은 5.6% 증가하여 3억 2,890만 달러에 달했으며, 유기적 성장은 미주 및 EMEA 지역의 물량 증가에 힘입어 6.3%를 기록했습니다. 연간 조정 EBITDA는 2억 8,880만 달러에 도달했으며, 이는 8.2% 증가한 수치로, 마진은 16.2%로 확대되었습니다. 그러나 순이익은 8,370만 달러로 감소하여 23.6% 하락했습니다.
회사는 8,970만 달러의 운영 현금 흐름을 창출했으며, 배당금과 자사주 매입을 통해 주주에게 4,100만 달러를 반환했습니다. 이사회는 2,000,000주 매입 프로그램을 새롭게 승인했습니다. 2025년에는 테넌트가 유기적 순매출이 1%에서 4% 감소할 것으로 예상하고 있지만, 비용 관리와 운영 효율성을 통해 마진이 확대될 것으로 전망하고 있습니다.
Tennant Company (NYSE: TNC) a annoncé ses résultats financiers du quatrième trimestre et de l'année complète 2024, atteignant des ventes nettes record de 1,286.7 millions de dollars pour l'année entière, en hausse de 3.5% par rapport à 2023. La croissance organique de l'entreprise de 3.2% a été soutenue par la hausse des prix dans toutes les régions et par la croissance des volumes en Amérique.
Les ventes nettes du quatrième trimestre ont augmenté de 5.6% pour atteindre 328.9 millions de dollars, avec une croissance organique de 6.3% menée par la croissance des volumes en Amérique et en EMEA. L'EBITDA ajusté pour l'année entière a atteint 208.8 millions de dollars, soit une augmentation de 8.2%, avec une marge élargie à 16.2%. Cependant, le bénéfice net a diminué à 83.7 millions de dollars, en baisse de 23.6% par rapport à 2023.
L'entreprise a généré 89.7 millions de dollars de flux de trésorerie d'exploitation et a restitué 41.0 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions. Le Conseil a autorisé un nouveau programme de rachat de 2.000.000 d'actions. Pour 2025, Tennant s'attend à ce que les ventes nettes organiques diminuent entre 1% et 4%, mais prévoit une expansion de la marge grâce à la gestion des coûts et à l'efficacité opérationnelle.
Tennant Company (NYSE: TNC) hat ihre Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und dabei einen Rekordumsatz von 1.286,7 Millionen USD für das gesamte Jahr erzielt, was einem Anstieg von 3,5% im Vergleich zu 2023 entspricht. Das organische Wachstum des Unternehmens von 3,2% wurde durch Preiserhöhungen in den Regionen und Volumenzuwächse in den Amerikas vorangetrieben.
Der Nettoumsatz im vierten Quartal stieg um 5,6% auf 328,9 Millionen USD, wobei das organische Wachstum von 6,3% durch Volumenzuwächse in den Amerikas und EMEA angeführt wurde. Das bereinigte EBITDA für das gesamte Jahr erreichte 208,8 Millionen USD, was einem Anstieg von 8,2% entspricht, und die Marge erweiterte sich auf 16,2%. Das Nettoergebnis sank jedoch auf 83,7 Millionen USD, was einem Rückgang von 23,6% im Vergleich zu 2023 entspricht.
Das Unternehmen erwirtschaftete 89,7 Millionen USD an operativem Cashflow und gab 41,0 Millionen USD an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück. Der Vorstand genehmigte ein neues Rückkaufprogramm für 2.000.000 Aktien. Für 2025 erwartet Tennant, dass die organischen Nettoumsätze um 1% bis 4% zurückgehen, rechnet jedoch mit einer Margenausweitung durch Kostenmanagement und betriebliche Effizienz.
- Record full-year net sales of $1,286.7 million, up 3.5%
- Q4 organic growth of 6.3% with strong volume growth in Americas and EMEA
- Adjusted EBITDA increased 8.2% to $208.8 million
- Adjusted EBITDA margin expanded 70 basis points to 16.2%
- New 2,000,000 share repurchase program authorized
- Net income decreased 23.6% to $83.7 million
- Projected organic sales decline of 1-4% for 2025
- APAC sales declined 19% in Q4 due to market saturation and pricing pressure
- Operating cash flow decreased to $89.7 million from $188.4 million in 2023
Insights
Tennant's Q4 and full-year 2024 results demonstrate strong operational execution despite mixed regional performance. The 16.2% adjusted EBITDA margin achievement represents significant progress in the company's margin expansion journey, driven by improved operating leverage and strategic pricing initiatives.
Regional performance reveals important trends: The Americas segment's 10% Q4 organic growth showcases robust demand for equipment and services, indicating healthy end-market conditions in this key region. EMEA's recovery in Q4 with 4% organic growth signals improving market conditions after earlier weakness. However, APAC's 19% decline reflects concerning market dynamics in China, where mid-tier product saturation is creating pricing pressure, and Australia, where economic uncertainty is shifting customer behavior toward rentals.
Working capital management deserves attention - while operating cash flow decreased to $89.7M from $188.4M, this was largely due to strategic investments in ERP modernization ($37.3M) and inventory positioning. The company's healthy balance sheet with net leverage of 0.48x provides significant flexibility for future investments and shareholder returns.
The launch of the X6 ROVR autonomous scrubber represents a strategic move into larger autonomous cleaning applications, targeting high-value sectors like healthcare and logistics. This expansion of the autonomous portfolio could help offset the projected 1-4% organic sales decline in 2025, which is primarily attributed to backlog normalization rather than fundamental demand weakness.
Management's focus on margin expansion through cost management while facing revenue headwinds demonstrates confidence in operational efficiency initiatives. The authorization of a new 2M share repurchase program, combined with existing authorization, signals strong belief in the company's long-term value proposition despite near-term growth challenges.
Record Full-Year Net Sales and Adjusted EBITDA
Expanded Adjusted EBITDA Margin to
Introduces Full-Year Guidance for 2025
(In millions, except per share data) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Incr /
|
|
|
2024 |
|
|
|
2023 |
|
|
Incr /
|
||
Net sales |
$ |
328.9 |
|
|
$ |
311.4 |
|
|
5.6 |
% |
|
$ |
1,286.7 |
|
|
$ |
1,243.6 |
|
|
3.5 |
% |
Net income |
$ |
6.6 |
|
|
$ |
31.0 |
|
|
(78.7 |
)% |
|
$ |
83.7 |
|
|
$ |
109.5 |
|
|
(23.6 |
)% |
Diluted EPS |
$ |
0.35 |
|
|
$ |
1.64 |
|
|
(78.7 |
)% |
|
$ |
4.38 |
|
|
$ |
5.83 |
|
|
(24.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted diluted EPS(a) |
$ |
1.52 |
|
|
$ |
1.92 |
|
|
(20.8 |
)% |
|
$ |
6.57 |
|
|
$ |
6.57 |
|
|
— |
% |
Adjusted EBITDA(a) |
$ |
47.4 |
|
|
$ |
41.5 |
|
|
14.2 |
% |
|
$ |
208.8 |
|
|
$ |
192.9 |
|
|
8.2 |
% |
Adjusted EBITDA margin(a) |
|
14.4 |
% |
|
|
13.3 |
% |
|
110 bps |
|
|
16.2 |
% |
|
|
15.5 |
% |
|
70 bps |
||
Highlights
-
Fourth-quarter net sales increased
5.6% to$328.9 million 6.3% led by volume growth in theAmericas and EMEA. -
Delivered full-year net sales of
$1,286.7 million 3.5% increase from 2023. Organic growth of3.2% driven by price growth across all regions, favorable product and channel mix, and volume growth in theAmericas . -
Achieved full-year adjusted EBITDA(a) of
$208.8 million 8.2% increase compared to 2023. Full-year adjusted EBITDA margin(a) of16.2% improved by 70 basis points, driven by strong sales growth driving increased operating leverage year over year. -
Generated full-year operating cash flow of
$89.7 million $41.0 million - Tennant announces the new X6 ROVR, a larger purpose-built AMR scrubber targeting retail, education, healthcare, manufacturing, logistics, warehousing, and large public spaces. The X6 ROVR also features a fully integrated autonomous charging station, eliminating the daily need for an operator to remember to charge the machine. Both the X6 ROVR and XC1 will be commercially available in the second quarter of 2025.
“We are pleased to report on Tennant's strong finish to a successful 2024. We achieved record results in 2024 with strong organic sales growth and margin expansion aligned with our long-range targets,” said Dave Huml, Tennant President and Chief Executive Officer. “In the fourth quarter, we maintained our positive trajectory, achieving the third quarter of near double-digit order growth and shifting our mix to volume-driven growth. Our talented global team is well-positioned to build on this momentum and to continue executing our growth strategies, including new products and expanded channels.
"Looking forward to 2025, we anticipate a stable demand environment outside of APAC and we are confident in our plans to deliver mid-single-digit order growth. However, this will not fully offset the year-over-year impact of backlog reduction, resulting in a decrease in organic sales on a constant currency basis between
Net Sales
Consolidated net sales for the fourth quarter of 2024 totaled
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
2024 vs. 2023 |
||
Price |
|
|
|
|
Volume |
|
|
|
|
Organic growth |
|
|
|
|
Acquisitions |
|
|
|
|
Foreign currency |
|
(0.8)% |
|
(0.4)% |
Total growth |
|
|
|
|
Organic Sales
Organic sales, which exclude the effects of foreign currency and acquisitions, grew in both the fourth quarter and full year 2024 compared to 2023. Growth in the fourth quarter of 2024 was driven by volume growth in the
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
||||||||||||
|
|
|
EMEA |
|
APAC |
|
Total |
|
|
|
EMEA |
|
APAC |
|
Total |
Organic net sales growth |
|
|
|
|
(19.0)% |
|
|
|
|
|
(1.6)% |
|
(9.5)% |
|
|
EMEA: The
APAC: The
Operating Results
Gross profit margin decreased to
Selling and Administrative ("S&A") expense was
Adjusted EBITDA(a) was
Net income was
Adjusted net income(a) was
Cash Flow, Liquidity and Capital Allocation
Tennant generated
Liquidity remained strong with a balance of
The Company continues to strategically deploy cash flow to meet operational capital requirements and to return capital to shareholders in alignment with its capital allocation priorities. In 2024, the Company invested
2025 Guidance
For 2025, Tennant provides the following guidance ranges:
(In millions, except per share data) |
2025
|
Net sales |
|
Organic net sales decline |
(1.0)% - (4.0)% |
Diluted net income per share |
|
Adjusted diluted net income per share** |
|
Adjusted EBITDA** |
|
Adjusted EBITDA margin** |
|
Capital expenditures |
|
Adjusted effective tax rate** |
|
**Excludes ERP modernization costs and amortization expense. |
Conference Call
Tennant will host a conference call to discuss its 2024 fourth-quarter and full-year results on February 18, 2025, at 9 a.m. Central Time (10 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 overview 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
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 the Company serves. Particular risks and uncertainties presently facing it include: economic uncertainty throughout the world; geopolitical tensions or health epidemics; the Company's ability to comply with global laws and regulations; the Company's ability to adapt pricing to the competitive marketplace and customer pricing sensitivities; the competition in the Company's business; fluctuations in the cost, quality or availability of raw materials and purchased components; increasing cost pressures; unforeseen product liability claims or product quality issues; the Company's ability to attract, retain and develop key personnel and create effective succession planning strategies; the Company's ability to effectively develop and manage strategic planning and growth processes and the related operational plans; the Company's ability to successfully upgrade and evolve its information technology systems; the Company's ability to successfully protect our information technology systems from cybersecurity risks; the occurrence of a significant business interruption; the Company's ability to maintain the health and safety of its workers; the Company's ability to integrate acquisitions; and the Company's ability to develop and commercialize new innovative products and services.
The Company cautions 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 the Company's results can be found in its 2024 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.
The Company undertakes 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 the Company in its 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 nonoperational 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.
The Company believes 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 – as adjusted, net income per diluted 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. The Company uses these measures to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). The Company calculates the Non-GAAP measures by adjusting for legal contingency costs, ERP modernization costs, restructuring-related costs, transaction-related costs and amortization expense. The Company calculates income tax expense – as adjusted by adjusting for the tax effect of these Non-GAAP measures. The Company calculates net income per diluted share – as adjusted by adjusting for the after-tax effect of these Non-GAAP measures and dividing the result by the diluted weighted average shares outstanding. The Company calculates EBITDA margin – as adjusted by dividing EBITDA – as adjusted by net sales.
(a) See Supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. |
FINANCIAL TABLES FOLLOW
TENNANT COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||||||
(In millions, except shares and per share data) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
328.9 |
|
|
$ |
311.4 |
|
|
$ |
1,286.7 |
|
|
$ |
1,243.6 |
|
Cost of sales |
|
192.9 |
|
|
|
180.6 |
|
|
|
736.7 |
|
|
|
715.8 |
|
Gross profit |
|
136.0 |
|
|
|
130.8 |
|
|
|
550.0 |
|
|
|
527.8 |
|
Selling and administrative expense |
|
116.4 |
|
|
|
95.7 |
|
|
|
391.9 |
|
|
|
352.6 |
|
Research and development expense |
|
12.0 |
|
|
|
10.6 |
|
|
|
43.8 |
|
|
|
36.6 |
|
Operating income |
|
7.6 |
|
|
|
24.5 |
|
|
|
114.3 |
|
|
|
138.6 |
|
Interest expense, net |
|
(1.6 |
) |
|
|
(2.5 |
) |
|
|
(9.1 |
) |
|
|
(13.5 |
) |
Net foreign currency transaction (loss) gain |
|
— |
|
|
|
(0.2 |
) |
|
|
0.1 |
|
|
|
0.3 |
|
Other (expense) income, net |
|
(0.7 |
) |
|
|
0.2 |
|
|
|
(0.5 |
) |
|
|
(1.6 |
) |
Income before income taxes |
|
5.3 |
|
|
|
22.0 |
|
|
|
104.8 |
|
|
|
123.8 |
|
Income tax (benefit) expense |
|
(1.3 |
) |
|
|
(9.0 |
) |
|
|
21.1 |
|
|
|
14.3 |
|
Net income |
$ |
6.6 |
|
|
$ |
31.0 |
|
|
$ |
83.7 |
|
|
$ |
109.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.36 |
|
|
$ |
1.67 |
|
|
$ |
4.46 |
|
|
$ |
5.92 |
|
Diluted |
$ |
0.35 |
|
|
$ |
1.64 |
|
|
$ |
4.38 |
|
|
$ |
5.83 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
18,775,004 |
|
|
|
18,579,763 |
|
|
|
18,786,871 |
|
|
|
18,509,523 |
|
Diluted |
|
19,044,968 |
|
|
|
18,906,887 |
|
|
|
19,096,138 |
|
|
|
18,783,633 |
|
GEOGRAPHICAL NET SALES(1) (Unaudited) |
|||||||||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
||
|
$ |
226.4 |
|
$ |
208.1 |
|
8.8 |
% |
|
$ |
888.5 |
|
$ |
840.3 |
|
5.7 |
% |
||||
|
|
83.9 |
|
|
|
80.3 |
|
|
4.5 |
% |
|
|
318.5 |
|
|
|
314.4 |
|
|
1.3 |
% |
|
|
18.6 |
|
|
|
23.0 |
|
|
(19.1 |
)% |
|
|
79.7 |
|
|
|
88.9 |
|
|
(10.3 |
)% |
Total |
$ |
328.9 |
|
|
$ |
311.4 |
|
|
5.6 |
% |
|
$ |
1,286.7 |
|
|
$ |
1,243.6 |
|
|
3.5 |
% |
(1) Net of intercompany sales. |
| TENNANT COMPANY
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
(In millions, except shares and per share data) |
|
|
|
||||
December 31 |
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
||||
Cash, cash equivalents, and restricted cash |
$ |
99.8 |
|
|
$ |
117.1 |
|
Receivables, less allowances of |
|
259.1 |
|
|
|
247.6 |
|
Inventories |
|
183.8 |
|
|
|
175.9 |
|
Prepaid and other current assets |
|
33.9 |
|
|
|
28.5 |
|
Total current assets |
|
576.6 |
|
|
|
569.1 |
|
Property, plant and equipment, less accumulated depreciation of |
|
184.4 |
|
|
|
187.7 |
|
Operating lease assets |
|
54.6 |
|
|
|
41.7 |
|
Goodwill |
|
185.6 |
|
|
|
187.4 |
|
Intangible assets, net |
|
58.7 |
|
|
|
63.1 |
|
Other assets |
|
130.2 |
|
|
|
64.4 |
|
Total assets |
$ |
1,190.1 |
|
|
$ |
1,113.4 |
|
LIABILITIES AND TOTAL EQUITY |
|
|
|
||||
Current portion of long-term debt |
$ |
1.3 |
|
|
$ |
6.4 |
|
Accounts payable |
|
126.9 |
|
|
|
111.4 |
|
Employee compensation and benefits |
|
60.5 |
|
|
|
67.3 |
|
Other current liabilities |
|
103.5 |
|
|
|
88.6 |
|
Total current liabilities |
|
292.2 |
|
|
|
273.7 |
|
Long-term debt |
|
198.2 |
|
|
|
194.2 |
|
Long-term operating lease liabilities |
|
36.3 |
|
|
|
27.4 |
|
Employee-related benefits |
|
13.5 |
|
|
|
13.3 |
|
Deferred income taxes |
|
4.9 |
|
|
|
5.0 |
|
Other liabilities |
|
22.9 |
|
|
|
21.5 |
|
Total long-term liabilities |
|
275.8 |
|
|
|
261.4 |
|
Total liabilities |
$ |
568.0 |
|
|
$ |
535.1 |
|
Common Stock, |
|
7.1 |
|
|
|
7.0 |
|
Additional paid-in capital |
|
76.7 |
|
|
|
64.9 |
|
Retained earnings |
|
609.7 |
|
|
|
547.4 |
|
Accumulated other comprehensive loss |
|
(72.7 |
) |
|
|
(42.3 |
) |
Total Tennant Company shareholders' equity |
|
620.8 |
|
|
|
577.0 |
|
Noncontrolling interest |
|
1.3 |
|
|
|
1.3 |
|
Total equity |
|
622.1 |
|
|
|
578.3 |
|
Total liabilities and total equity |
$ |
1,190.1 |
|
|
$ |
1,113.4 |
|
TENNANT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
(In millions) |
|
||||||
December 31 |
|
2024 |
|
|
|
2023 |
|
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
83.7 |
|
|
$ |
109.5 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation expense |
|
40.1 |
|
|
|
36.4 |
|
Amortization expense |
|
15.0 |
|
|
|
14.7 |
|
Deferred income tax benefit |
|
(9.8 |
) |
|
|
(26.9 |
) |
Share-based compensation expense |
|
11.9 |
|
|
|
11.6 |
|
Bad debt and returns expense |
|
3.4 |
|
|
|
3.4 |
|
Other, net |
|
0.6 |
|
|
|
1.3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
(15.0 |
) |
|
|
4.1 |
|
Inventories |
|
(33.0 |
) |
|
|
14.3 |
|
Accounts payable |
|
15.4 |
|
|
|
(15.3 |
) |
Employee compensation and benefits |
|
(5.2 |
) |
|
|
22.3 |
|
Other assets and liabilities |
|
(17.4 |
) |
|
|
13.0 |
|
Net cash provided by operating activities |
|
89.7 |
|
|
|
188.4 |
|
INVESTING ACTIVITIES |
|
|
|
||||
Purchases of property, plant and equipment |
|
(20.9 |
) |
|
|
(22.8 |
) |
Purchase of investment |
|
(32.1 |
) |
|
|
— |
|
Payments made in connection with business acquisition, net of cash acquired |
|
(25.7 |
) |
|
|
— |
|
Investment in leased assets |
|
(0.5 |
) |
|
|
(1.2 |
) |
Cash received from leased assets |
|
0.8 |
|
|
|
0.8 |
|
Net cash used in investing activities |
|
(78.4 |
) |
|
|
(23.2 |
) |
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from borrowings |
|
40.9 |
|
|
|
20.0 |
|
Repayments of borrowings |
|
(42.5 |
) |
|
|
(120.0 |
) |
Payment of debt financing costs |
|
(2.2 |
) |
|
|
— |
|
Change in finance lease obligations |
|
— |
|
|
|
0.2 |
|
Proceeds from exercise of stock options, net of employee tax withholdings obligations of |
|
19.6 |
|
|
|
19.0 |
|
Repurchases of common stock |
|
(19.6 |
) |
|
|
(21.7 |
) |
Dividends paid |
|
(21.4 |
) |
|
|
(20.1 |
) |
Net cash used in financing activities |
|
(25.2 |
) |
|
|
(122.6 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(3.4 |
) |
|
|
(2.9 |
) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(17.3 |
) |
|
|
39.7 |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
117.1 |
|
|
|
77.4 |
|
Cash, cash equivalents and restricted cash at end of year |
$ |
99.8 |
|
|
$ |
117.1 |
|
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Net Income and Net Income Per Share |
|||||||||||||||
(In millions, except per share data) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income - as reported |
$ |
6.6 |
|
$ |
31.0 |
|
$ |
83.7 |
|
$ |
109.5 |
||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization expense |
|
2.6 |
|
|
|
2.7 |
|
|
|
11.0 |
|
|
|
10.6 |
|
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
0.5 |
|
Restructuring-related charge (S&A expense) (2) |
|
5.6 |
|
|
|
0.8 |
|
|
|
6.0 |
|
|
|
1.6 |
|
ERP modernization costs (S&A expense) (3) |
|
3.5 |
|
|
|
1.2 |
|
|
|
10.5 |
|
|
|
1.2 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.4 |
|
|
|
— |
|
|
|
4.0 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
10.3 |
|
|
|
— |
|
|
|
10.3 |
|
|
|
— |
|
Net income - as adjusted |
$ |
29.0 |
|
|
$ |
36.2 |
|
|
$ |
125.5 |
|
|
$ |
123.4 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share - as reported: |
|
|
|
|
|
|
|
||||||||
Diluted |
$ |
0.35 |
|
|
$ |
1.64 |
|
|
$ |
4.38 |
|
|
$ |
5.83 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization expense |
|
0.14 |
|
|
|
0.14 |
|
|
|
0.58 |
|
|
|
0.56 |
|
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
Restructuring-related charge (S&A expense) (2) |
|
0.29 |
|
|
|
0.05 |
|
|
|
0.31 |
|
|
|
0.09 |
|
ERP modernization costs (S&A expense) (3) |
|
0.18 |
|
|
|
0.06 |
|
|
|
0.55 |
|
|
|
0.06 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.02 |
|
|
|
— |
|
|
|
0.21 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
0.54 |
|
|
|
— |
|
|
|
0.54 |
|
|
|
— |
|
Net income per diluted share - as adjusted |
$ |
1.52 |
|
|
$ |
1.92 |
|
|
$ |
6.57 |
|
|
$ |
6.57 |
|
(2) Restructuring expenses reflect our ongoing global reorganization efforts to align our expense structure with key strategic initiatives and long-term business objectives. These restructuring actions are expected to generate annualized cost savings beginning in 2025. |
(3) Enterprise Resource Planning (ERP) modernization initiative investment. In 2024, the Company invested |
(4) Due diligence and integration costs associated with the acquisition of TCS, and costs associated with the investment in Brain Corp, Inc., a privately held autonomous technology company. |
(5) Legal settlement charge related to an intellectual property dispute regarding ec-H2O™ option on commercial floor cleaning machines sold between 2015 and 2023. On November 25, 2024, a jury ruled against the Company in a case brought by Oxygenator Water Technologies, Inc. (OWT), awarding |
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) |
|||||||||||||||
(In millions) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income - as reported |
$ |
6.6 |
|
|
$ |
31.0 |
|
|
$ |
83.7 |
|
|
$ |
109.5 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
1.6 |
|
|
|
2.5 |
|
|
|
9.1 |
|
|
|
13.5 |
|
Income tax (benefit) expense |
|
(1.3 |
) |
|
|
(9.0 |
) |
|
|
21.1 |
|
|
|
14.3 |
|
Depreciation expense |
|
10.5 |
|
|
|
10.0 |
|
|
|
40.1 |
|
|
|
36.4 |
|
Amortization expense |
|
3.6 |
|
|
|
3.7 |
|
|
|
15.0 |
|
|
|
14.7 |
|
EBITDA |
|
21.0 |
|
|
|
38.2 |
|
|
|
169.0 |
|
|
|
188.4 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Restructuring-related charge (S&A expense) (2) |
|
7.6 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.2 |
|
ERP modernization costs (S&A expense) (3) |
|
4.8 |
|
|
|
1.6 |
|
|
|
14.0 |
|
|
|
1.6 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.5 |
|
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
13.5 |
|
|
|
— |
|
|
|
13.5 |
|
|
|
— |
|
EBITDA - as adjusted |
$ |
47.4 |
|
|
$ |
41.5 |
|
|
$ |
208.8 |
|
|
$ |
192.9 |
|
EBITDA margin - as adjusted |
|
14.4 |
% |
|
|
13.3 |
% |
|
|
16.2 |
% |
|
|
15.5 |
% |
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
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Gross profit - as reported |
$ |
136.0 |
|
|
$ |
130.8 |
|
|
$ |
550.0 |
|
|
$ |
527.8 |
|
Gross margin - as reported |
|
41.3 |
% |
|
|
42.0 |
% |
|
|
42.7 |
% |
|
|
42.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Gross profit - as adjusted |
$ |
136.0 |
|
|
$ |
131.5 |
|
|
$ |
550.0 |
|
|
$ |
528.5 |
|
Gross margin - as adjusted |
|
41.3 |
% |
|
|
42.2 |
% |
|
|
42.7 |
% |
|
|
42.5 |
% |
|
|
|
|
|
|
|
|
||||||||
S&A expense - as reported |
$ |
116.4 |
|
|
$ |
95.7 |
|
|
$ |
391.9 |
|
|
$ |
352.6 |
|
S&A expense as a percent of net sales - as reported |
|
35.4 |
% |
|
|
30.7 |
% |
|
|
30.5 |
% |
|
|
28.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring-related charge (S&A expense) (2) |
|
(7.6 |
) |
|
|
(1.0 |
) |
|
|
(8.2 |
) |
|
|
(2.2 |
) |
ERP modernization costs (S&A expense) (3) |
|
(4.8 |
) |
|
|
(1.6 |
) |
|
|
(14.0 |
) |
|
|
(1.6 |
) |
Transaction and integration-related costs (S&A expense) (4) |
|
(0.5 |
) |
|
|
— |
|
|
|
(4.1 |
) |
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
(13.5 |
) |
|
|
— |
|
|
|
(13.5 |
) |
|
|
— |
|
S&A expense - as adjusted |
$ |
90.0 |
|
|
$ |
93.1 |
|
|
$ |
352.1 |
|
|
$ |
348.8 |
|
S&A expense as a percent of net sales - as adjusted |
|
27.4 |
% |
|
|
29.9 |
% |
|
|
27.4 |
% |
|
|
28.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Operating income - as reported |
$ |
7.6 |
|
|
$ |
24.5 |
|
|
$ |
114.3 |
|
|
$ |
138.6 |
|
Operating margin - as reported |
|
2.3 |
% |
|
|
7.9 |
% |
|
|
8.9 |
% |
|
|
11.1 |
% |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Restructuring-related charge (S&A expense) (2) |
|
7.6 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.2 |
|
ERP modernization costs (S&A expense) (3) |
|
4.8 |
|
|
|
1.6 |
|
|
|
14.0 |
|
|
|
1.6 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.5 |
|
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
13.5 |
|
|
|
— |
|
|
|
13.5 |
|
|
|
— |
|
Operating income - as adjusted |
$ |
34.0 |
|
|
$ |
27.8 |
|
|
$ |
154.1 |
|
|
$ |
143.1 |
|
Operating margin - as adjusted |
|
10.3 |
% |
|
|
8.9 |
% |
|
|
12.0 |
% |
|
|
11.5 |
% |
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Reported to Adjusted Income Before Income Taxes and Income Tax Expense |
|||||||||||||||
(In millions) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Income before income taxes - as reported |
$ |
5.3 |
|
|
$ |
22.0 |
|
|
$ |
104.8 |
|
|
$ |
123.8 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization expense |
|
3.6 |
|
|
|
3.7 |
|
|
|
15.0 |
|
|
|
14.7 |
|
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.7 |
|
Restructuring-related charge (S&A expense) (2) |
|
7.6 |
|
|
|
1.0 |
|
|
|
8.2 |
|
|
|
2.2 |
|
ERP modernization costs (S&A expense) (3) |
|
4.8 |
|
|
|
1.6 |
|
|
|
14.0 |
|
|
|
1.6 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.5 |
|
|
|
— |
|
|
|
4.1 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
13.5 |
|
|
|
— |
|
|
|
13.5 |
|
|
|
— |
|
Income before income taxes - as adjusted |
$ |
35.3 |
|
|
$ |
29.0 |
|
|
$ |
159.6 |
|
|
$ |
143.0 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax (benefit) expense - as reported |
$ |
(1.3 |
) |
|
$ |
(9.0 |
) |
|
$ |
21.1 |
|
|
$ |
14.3 |
|
Effective tax rate - as reported |
|
(24.5 |
)% |
|
|
(40.9 |
)% |
|
|
20.1 |
% |
|
|
11.6 |
% |
Adjustments (6): |
|
|
|
|
|
|
|
||||||||
Amortization expense |
|
1.0 |
|
|
|
1.0 |
|
|
|
4.0 |
|
|
|
4.1 |
|
Restructuring-related charge (Cost of sales) (2) |
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.2 |
|
Restructuring-related charge (S&A expense) (2) |
|
2.0 |
|
|
|
0.2 |
|
|
|
2.2 |
|
|
|
0.6 |
|
ERP modernization costs (S&A expense) (3) |
|
1.3 |
|
|
|
0.4 |
|
|
|
3.5 |
|
|
|
0.4 |
|
Transaction and integration-related costs (S&A expense) (4) |
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Legal contingency costs (S&A expense) (5) |
|
3.2 |
|
|
|
— |
|
|
|
3.2 |
|
|
|
— |
|
Income tax expense (benefit) - as adjusted |
$ |
6.3 |
|
|
$ |
(7.2 |
) |
|
$ |
34.1 |
|
|
$ |
19.6 |
|
Effective tax rate - as adjusted |
|
17.8 |
% |
|
|
(24.8 |
)% |
|
|
21.4 |
% |
|
|
13.7 |
% |
(6) For determining the tax impact, the statutory tax rate was applied for each jurisdiction where income or expenses were generated. |
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
Free Cash Flow Conversion |
|||||||||||||||
(In millions) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income - as reported |
$ |
6.6 |
|
|
$ |
31.0 |
|
|
$ |
83.7 |
|
|
$ |
109.5 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
ERP modernization costs (S&A expense) (3) |
|
3.5 |
|
|
|
1.2 |
|
|
|
10.5 |
|
|
|
1.2 |
|
Net income - as adjusted |
$ |
10.1 |
|
|
$ |
32.2 |
|
|
$ |
94.2 |
|
|
$ |
110.7 |
|
|
|
|
|
|
|
|
|
||||||||
Cash provided by operating activities - as reported |
$ |
37.5 |
|
|
$ |
63.8 |
|
|
$ |
89.7 |
|
|
$ |
188.4 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(9.4 |
) |
|
|
(7.5 |
) |
|
|
(20.9 |
) |
|
|
(22.8 |
) |
Free cash flows (7) |
$ |
28.1 |
|
|
$ |
56.3 |
|
|
$ |
68.8 |
|
|
$ |
165.6 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
ERP modernization spend |
|
11.7 |
|
|
|
1.8 |
|
|
|
37.3 |
|
|
|
1.8 |
|
Free cash flows - as adjusted |
$ |
39.8 |
|
|
$ |
58.1 |
|
|
$ |
106.1 |
|
|
$ |
167.4 |
|
|
|
|
|
|
|
|
|
||||||||
Net income to free cash flows conversion |
|
394 |
% |
|
|
180 |
% |
|
|
113 |
% |
|
|
151 |
% |
(7) Free Cash Flow reflects cash provided by operating activities less capital expenditures |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250217800732/en/
INVESTOR RELATIONS CONTACT:
Lorenzo Bassi
Vice President, Finance and Investor Relations
investors@tennantco.com
763-540-1242
Source: Tennant Company
FAQ
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