Tennant Company · NYSE:TNC
Tennant — Q1 2023 Earnings Presentation
14 slides from Tennant's earnings presentation, Apr 28, 2023
Slide 1: Earnings Release Call First Quarter 2023
Earnings Release Call First Quarter 2023 April 28, 2023 I N V E S T O R S . T E N N A N T C O . C O M 1
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures 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 expe
Slide 3: Executive Summary
Executive Summary Q1 2023 Q1 2022 2023 Q1 organic sales growth of 21% Net Sales $305.8 $258.1 • 11% backlog reduction and 10% base business growth Constant Currency $312.4 Q1 Adjusted EBITDA* improves to $47.9M Adjusted $47.9 $27.9 • 15.7% of Net Sales – up from 10.8% Q1 ‘22 EBITDA* • Sequential qua
Slide 4: Innovation and Leadership
Innovation and Leadership Research and New Product Net-Zero Development Launches Commitment • Innovate to drive customer value • Penetrate new channels and grow • Leading the industry with new business models • Expand product lines to capitalize • Goal of achieving net-zero GHG on diverse customer u
Slide 5: Financial Results First Quarter 2023
Tennant Company Financial Results First Quarter 2023 I N V E S T O R S . T E N N A N T C O . C O M 5
Slide 6: First Quarter 2023 Financial Performance
First Quarter 2023 Financial Performance Net Income Adjusted Diluted EPS* Net Income ▪ Q1 2023 net income of $24.3M increased $14.0M compared to the same period last year $24.3 $1.45 ▪ Interest expense, net of $3.7M in Q1 2023 compared to $0.3M in the prior-year quarter on higher debt levels and int
Slide 7: First Quarter 2023 Results
First Quarter 2023 Results Net Sales Adjusted EBITDA* ▪ Organic growth 21% ▪ Volume impact of ~$10M • Americas 28%, EMEA 11%, APAC 7% ▪ Improvement in gross margin contributed ~$19M of the ▪ Favorable volume impact of ~$27M increase in adjusted EBITDA primarily due to pricing actions more than offse
Slide 8: Capital Deployment
Capital Deployment Q1 2023 YE 2022 Total Debt $299M $300M Net Leverage* 1.38x 1.67x Revolver Availability: $242M Operating Cash Flow: $31M ▪ Net cash provided by operating activities of ~$31M was driven by improved operating performance and moderating investments in working capital ▪ Capital expendi
Slide 9: Reaffirm 2023 Guidance
Reaffirm 2023 Guidance 2023 Guidance Net Sales $1.115B - $1.155B Organic Net Sales Growth 3% - 7% Diluted EPS $3.10 - $3.90 Adjusted Diluted EPS(1) $3.70 - $4.50 Adjusted EBITDA(1) $140M - $160M Adjusted EBITDA Margin 12.6% - 13.9% Capital Expenditures $20M - $25M Adjusted Effective Tax Rate(2) 20%
Slide 10: Questions?
Questions? Tennant Company Earnings Release Call | First Quarter 2023 Tennant Company Earnings Release Call | First Quarter 2023 10
Slide 11: Appendix
Appendix Tennant Company Earnings Release Call | First Quarter 2023 11
Slide 12: 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 13: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2023 13
Slide 14: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | First Quarter 2023 14