Tennant Company · NYSE:TNC
Tennant — Q2 2019 Earnings Presentation
14 slides from Tennant's earnings presentation, Jul 31, 2019
Slide 1: Earnings Release Conference Call Second Quarter 2019
TENNANT COMPANY Earnings Release Conference Call Second Quarter 2019 Wednesday, July 31, 2019 TENNANT COMPANY 1
Slide 2: On the Call Today
On the Call Today Chris Killingstad Keith Woodward President and CEO Senior VP and CFO TENNANT COMPANY 2
Slide 3: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Our remarks this morning and our answers to questions may contain forward-looking statements regarding the company’s expectations of future performance. Such statements are subject to risks and uncertainties, and our actual results may differ Statements & materially from those contai
Slide 4: Earnings Release Conference Call Second Quarter 2019
TENNANT COMPANY Earnings Release Conference Call Second Quarter 2019 Wednesday, July 31, 2019 TENNANT COMPANY 4
Slide 5: Second Quarter 2019 – Strategy
Second Quarter 2019 – Strategy • Company in transition • Three Strategic Pillars • Shifting from strategic expansion • Winning where we have a competitive advantage • Focus on unlocking the benefits of broader • Reducing complexity and building scalable platform and driving profitable growth process
Slide 6: Earnings Release Conference Call Second Quarter 2019
TENNANT COMPANY Earnings Release Conference Call Second Quarter 2019 Wednesday, July 31, 2019 TENNANT COMPANY 6
Slide 7: Sales | Adjusted EPS
Second Quarter 2019 – Sales | Adjusted EPS Q2 '19 Organic Growth of +3.8% Q2 '19 Q2 '18 CHANGE SALES $299.7 M $292.2 M +2.6% EPS Adjusted* $1.13 $0.82 +37.8% Q2 2019 Results • Exceeded internal expectations • Second-quarter 2019 reported adjusted net earnings grew 37.7% to $20.8 million TENNANT COMP
Slide 8: Second Quarter 2019 – Geographies
Second Quarter 2019 – Geographies The Americas • Sales increased 6.0%, or +7.8% organically, driven by: • Broad-based strength across region • Strategic Accounts, Service, Parts and Consumables • Walmart autonomous T7 announcement EMEA • Sales declined 7.4%, or -2.9% organically, driven by: • Contin
Slide 9: Sales | Adjusted Gross Margin
Second Quarter 2019 – Sales | Adjusted Gross Margin Q2 '19 Q2 '18 CHANGE SALES $299.7 M $292.2 M +2.6% Gross Margin Adjusted* 41.4% 40.1% +130 bps 2019 Adjusted Results • 130 bps improvement – Positive pricing actions – Favorable sales mix – Mitigation efforts to offset macro headwinds TENNANT COMPA
Slide 10: Sales | S&A
Second Quarter 2019 – Sales | S&A Q2 '19 Q2 '18 CHANGE SALES $299.7 M $292.2 M +2.6% S&A Expense (% of sales) - Adjusted* 29.0% 29.8% (80 bps) • Operational rigor and tight expense management contributed to leverage YOY TENNANT COMPANY * See the Supplemental Non-GAAP Financial Table within Q2'19 Ear
Slide 11: EBITDA | Other Financial Metrics
Second Quarter 2019 – EBITDA | Other Financial Metrics Q2 '19 Q2 '18 CHANGE Adjusted EBITDA* $41.8M $35.7 M +17.1% Adjusted EBITDA Margin* 13.9% 12.2% +170 bps Second Half 2019 Reflects • EBITDA margin in the second half of 2019 to be lower than the first half due to: – Strategic investments in serv
Slide 12: 2019 Guidance
2019 Guidance • Full Year Sales of $1.150 billion to $1.165 billion (3% to 4% organic) • Adjusted Earnings per Share of $2.65 to $2.85 • GAAP Earnings per Share of $1.80 to $2.00 • Adjusted EBITDA of $131 million to $135 million • Other Key Assumptions • Capital expenditures of approximately $35 to
Slide 13: Questions
Questions TENNANT COMPANY 13
Slide 14: Thank You
Thank You TENNANT COMPANY £ TENNANT)