Tennant Company · NYSE:TNC
Tennant — Q2 2024 Earnings Presentation
17 slides from Tennant's earnings presentation, Aug 8, 2024
Slide 1: Earnings Release Call Second Quarter 2024 Results
Earnings Release Call Second Quarter 2024 Results August 8, 2024
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
Executive Executive Summary Summary Record Second Quarter Net Sales • Organic net sales growth of 2.7% driven by price growth across each geography Second Quarter Results Adjusted EBITDA Growth Net Sales Adj. EBITDA* Adj. Diluted EPS* • Second quarter Adjusted EBITDA increased 1.7% to record $58.6 m
Slide 4: Elevate Growth Strategy
Elevate Growth Strategy Our Strategic Pillars GROWTH PERFORMANCE PEOPLE Pricing Excellence Enterprise Resource Planning Employee Value Proposition Product Innovation Sustainability New Channels & Markets New Business Models Strategic Acquisitions Tennant Company Earnings Release Call | Second Quarte
Slide 5: Second Quarter Updates
Second Quarter Updates Pricing Growth Across Each Geography • Positioned to achieve long-term growth goal of approximately 50 – 100 bps of annual price growth X4 ROVR Strong Demand for New Product • Increased manufacturing capacity to support high X4 ROVR order demand • AMR sales trending higher tha
Slide 6: Financial Results
Financial Results Second Quarter 2024 Tennant Company Earnings Release Call | Second Quarter 2024 6
Slide 7: Second Quarter 2024 Performance
Second Quarter 2024 Performance Second quarter net income of $27.9M, Net Income Adjusted EPS compared to $31.3M in the prior year • Driven by ERP modernization costs and M&A transaction and integration costs • Interest expense decreased $1.5M in Q2 2024 due to lower debt balances $1.86 $1.83 • Effec
Slide 8: Second Quarter 2024 Results
Second Quarter 2024 Results Net Sales Adjusted EBITDA Product Categories Gross Margin decreased 30 bps to 43.1% By Region** • Price realization and cost savings activities materially offset $48 M $51 M inflation +5.5% Americas $69 M $71 M Service Adjusted S&A* as a percent of net sales improved -0.3
Slide 9: Capital Deployment
Capital Deployment YE 2023 Q2 2024 Total Debt $201M $213M Cash Flow Net Leverage* 0.43x 0.61x Revolver Availability: $321.8M Net cash provided by operating Capital expenditures of ~$4M in line Returned capital to activities of ~$19M driven by with full-year guidance expectations shareholders via div
Slide 10: 2024 Full-Year Guidance Raised
2024 Full-Year Guidance Raised Updated 2024 Original 2024 Guidance Guidance Net Sales $1.280B - $1.305B $1.27B - $1.295B Organic Net Sales Growth 2.5% - 4.5% 2% - 4% Adjusted Diluted EPS(1) $6.15 - $6.55 $6.05 - $6.65 Adjusted EBITDA(1) $205M - $215M $198M - $213M Adjusted EBITDA Margin 16.0% - 16.5
Slide 11: Q&A
Q&A 11 Tennant Company Earnings Release Call | Second Quarter 2024 11
Slide 12: Thank You
Thank You Tennant Company Earnings Release Call | Second Quarter 2024 12
Slide 13: Appendix
Appendix Tennant Company Earnings Release Call | Second Quarter 2024 13
Slide 14: 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 15: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Second Quarter 2024 15
Slide 16: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Second Quarter 2024 16
Slide 17: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Second Quarter 2024 17