Tennant Company · NYSE:TNC
Tennant — Q1 2024 Earnings Presentation
23 slides from Tennant's earnings presentation, May 3, 2024
Slide 1: Earnings Release Call First Quarter 2024 Results
Earnings Release Call First Quarter 2024 Results May 3, 2024 INVESTORS.TENNANTCO.COM
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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
Slide 3: Executive Summary
ExecutiveSummary Executive Summary First quarter organic sales growth of 0.9% First-Quarter Results 4.6% price growth and -3.7% volume decline Net Sales Adj. EBITDA* Adj. Diluted EPS* First quarter gross margin increased 320 bps to 44.2% $311.0M $54.9M $1.81/share First quarter adjusted EBITDA
Slide 4: Enterprise Growth Strategy 2024-2026
Enterprise Growth Strategy 2024-2026 GROWTH PERFORMANCE PEOPLE Customer-focused new product Modernize existing ERP systems Invest in our employee value innovation and create a scalable digital proposition to attract, retain and infrastructure develop top talent Channel expansion and new go- to-marke
Slide 5: X4 ROVR – Summary
X4 ROVR – Summary Executive First Purpose-Built, Fully Autonomous Floor Cleaning Machine X4 ROVR Small size, versatile, and efficient First machine to be released under exclusive technology X4 ROVR high-performance design agreement with Brain Corp Powered by the next generation BrainOS® Robotics
Slide 6: Tennant Company Launches International Expansion of the i-mop Family of Products
Tennant Company Launches International Expansion of the i-mop Family of Products Tennant-branded i-mop® Lite and i-mop® XL Plus scrubber products will be available in Brazil, France, Portugal and Spain. The complete i-mop line gives facilities the productivity and performance boost of mechanized cle
Slide 7: Strategic M&A Priorities Aligned to Enterprise Strategy
Strategic M&A Priorities Aligned to Enterprise Strategy Defend & Grow Maintain and Enhance Sustained Cleaning Core Strong Margins & Growth Value-Add Expand Margins Drive Value Through Drive Industry Disruption to Gain Share and Increase Recurring Accelerate Growth Connected Autonomy Revenue Models E
Slide 8: Tennant Company Acquires Long-Time Distributor to Accelerate Growth in Central and Eastern Europe
Tennant Company Acquires Long-Time Distributor to Accelerate Growth in Central and Eastern Europe Tennant acquired M&F Management and Financing GmbH, the parent company of Tennant Company’s largest Central and Eastern Europe distributor. Gives Tennant an established direct channel into countries inc
Slide 9: Tennant to Host Investor Day on May 13, 2024
Tennant to Host Investor Day on May 13, 2024 Members of the executive management team will share a detailed view of the Company’s growth and innovation plans and provide an update on its long-term enterprise strategy. Speakers include: Monday, May 13, 2024 • Dave Huml – President & Chief Executive O
Slide 10: Financial Results First Quarter 2024
10 Tennant Company Financial Results First Quarter 2024 INVESTORS.TENNANTCO.COM 10
Slide 11: First Quarter Performance
First Quarter Performance Net Income Adjusted Diluted EPS* Net Income ► First quarter net income of $28.4M, a $4.1M increase compared to prior year ► Driven by higher net sales and an increase in gross margin through price realization & $28.4 mix $24.3 $1.81 ► Interest expense of $2.3M decreased $1.
Slide 12: First Quarter 2024 Results
First Quarter 2024 Results Net Sales Adjusted EBITDA* ► Gross margin increased to 44.2% Region** Product Categories Primarily driven by price realization and favorable product/ channel mix $46 M $50 M +5.1% Americas ► Adjusted S&A* as a percent of net sales increased to Service $73 M $71 M 27.6% Dri
Slide 13: Capital Deployment
Capital Deployment YE 2023 Q1 2024 Total Debt $201M $215M Net Leverage* 0.43x 1.05x Revolver Availability: $321.8M Net cash provided by Capital expenditures of ~$58M used to fund Returned capital to operating activities of ~$3M ~$3M in line with full- investment in Brain Corp shareholders via driven
Slide 14: Reaffirm 2024 Full-Year Guidance
Reaffirm 2024 Full-Year Guidance 2024 Guidance Net Sales $1.27B - $1.295B Organic Net Sales Growth 2% - 4% Adjusted Diluted EPS(1) $6.05 - $6.65 Adjusted EBITDA(1) $198M - $213M Adjusted EBITDA Margin 15.6% - 16.4% Capital Expenditures(1) $20M - $25M Adjusted Effective Tax Rate(1) 22% - 27% (1) Excl
Slide 15: Questions?
Questions? Tennant Company Earnings Release Call | First Quarter 2024 Tennant Company Earnings Release Call | First Quarter 2024 15
Slide 16: Thank you
Thank you Tennant Company Earnings Release Call | First Quarter 2024 Tennant Company Earnings Release Call | First Quarter 2024 16
Slide 17: Appendix
Appendix Tennant Company Earnings Release Call | First Quarter 2024 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation 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 pr
Slide 19: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2024 19
Slide 20: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2024 20
Slide 21: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2024 21
Slide 22: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2024 22
Slide 23: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2024 23