Tennant Company · NYSE:TNC
Tennant — Q4 2022 Earnings Presentation
11 slides from Tennant's earnings presentation, Feb 23, 2023
Slide 1: Earnings Release Call Fourth Quarter and Full Year 2022
Earnings Release Call Fourth Quarter and Full Year 2022 February 23, 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 Q4 2022 Q4 2021 FY 2022 FY 2021 Net Sales $291.0 $276.4 $1,092.2 $1,090.8 2022 Full Year organic sales growth of 4.2% Constant $303.1 $1,135.2 • Strong Q4 with Organic sales Currency growth of 9.7% Adjusted $41.7 $28.4 $133.7 $140.2 FY Adjusted EBITDA* declines EBITDA* compared to
Slide 4: Focused investments beyond recovery
Focused investments beyond recovery Investments in Market and Enterprise the business customer Strategy • Investments in supply chain to • Expansion of AMR product line, • Win where we have a solve for parts shortages traction with customer base competitive advantage • Investments in plant operation
Slide 5: Tennant Company Financial Results
Tennant Company Financial Results Fourth Quarter and Full Year 2022 I N V E S T O R S . T E N N A N T C O . C O M 5
Slide 6: Fourth Quarter and Full Year Financial Performance
Fourth Quarter and Full Year Financial Performance Net Income Adjusted Diluted EPS* Net Income ▪ 2022 Record net income of $66.3M increased $66.3 $64.9 $1.4M from 2021 $4.39 $4.10 ▪ Q4 ’22 Strong quarterly net income of $23.8M was $15.9M higher than the same quarter last year $23.8 $1.46 Adjusted Di
Slide 7: Fourth Quarter 2022 Results
Fourth Quarter 2022 Results Net Sales Adjusted EBITDA* ▪ Organic growth 9.7% ▪ Volume impact relatively flat • Americas 16%, EMEA 2.3%, APAC -7.5% ▪ Increase in gross margin accounts for $20M driven ▪ Favorable volume impact of ~ $1M primarily by pricing actions, only partially offset by labor and m
Slide 8: Full Year 2022 Results
Full Year 2022 Results Net Sales Adjusted EBITDA* ▪ Organic growth 4.2%: ▪ Unfavorable volume impact of ~ $10M • Americas 7.4%, EMEA 2.5%, APAC -11.4% ▪ Increase in gross margin accounts for $13M driven primarily ▪ Unfavorable volume impact of ~ $24M by pricing, partially offset by inflation in labo
Slide 9: Capital Deployment
Capital Deployment YE 2022 YE 2021 Total Debt $300M $268M Net Leverage 1.67x 1.03x Revolver Availability: $242.2M ▪ Changes in working capital driven by higher inventory (additional purchases and inflation) and higher accounts receivable (customer mix with extended payment terms) ▪ Capital Expenditu
Slide 10: 2023 Guidance
2023 Guidance 2022 Full Year 2023 Guidance Net Sales $1,092.2 $1.115B - $1.155B Organic Net Sales Growth 4.2% 3.0% - 7% Diluted EPS $3.55 $3.10 - $3.90 Adjusted Diluted EPS(1) $4.10 $3.70 - $4.50 Adjusted EBITDA(1) $133.7M $140M - $160M Adjusted EBITDA Margin 12.2% 12.6% - 13.9% Capital Expenditures
Slide 11: Questions?
Questions? Tennant Company Earnings Release Call | Fourth Quarter and Full Year 2022 Tennant Company Earnings Release Call | Fourth Quarter and Full Year 2022 11