Tennant Company · NYSE:TNC
Tennant — Q2 2022 Earnings Presentation
15 slides from Tennant's earnings presentation, Aug 9, 2022
Slide 1: Earnings Release Call Second Quarter 2022
Earnings Release Call Second Quarter 2022 August 9, 2022 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 Q2 2022 Q2 2021 Q2 in line with expectations Net Sales $280.2 $279.1 Continued robust demand driving Adjusted increased backlog EBITDA* $30.3 $35.1 Adjusted Diluted EPS* $0.92 $1.18 Macroeconomic headwinds persist In millions of USD, except adjusted diluted EPS Confirm FY ‘22 adjus
Slide 4: Operational and Strategic Overview
Operational and Strategic Overview Strategic Operations Margin Expansion Playbook Playbook Playbook • Relentless focus on high- • Capacity expansion • Strategic pricing quality products • Design around parts • Cost structure optimization • Customer experience constraints • Delivering value to • Cont
Slide 5: Financial Results Second Quarter 2022
Tennant Company Financial Results Second Quarter 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: Second Quarter Financial Performance
Second Quarter Financial Performance Net Income Adjusted EPS* Net Income ▪ Q2 ‘22 Net Income of $16.6M increased $16.6 $6.8M from Q1 ‘22 reflecting price increases $1.18 offset by currency headwinds and lower $0.92 volumes due to parts availability issues $9.8 coupled with lower margins from materia
Slide 7: Second Quarter 2022 Results
Second Quarter 2022 Results Net Sales Adjusted EBITDA* ▪ Organic growth 4.4%: Americas 6.5%, EMEA 3%, APAC -4.5% ▪ Unfavorable volume impact of approximately $2M ▪ Unfavorable volume impact of approx. $4M ▪ Decline in gross margin accounts for $2M driven primarily by: ▪ North America and EMEA impact
Slide 8: Capital Deployment
Capital Deployment Q2 2022 YE 2021 Total Debt $266M $268M Net Leverage* 1.30x 1.03x Revolver Availability: $279.1M *Calculated based on midpoint of guidance range ▪ Higher inventory driven by additional purchases (future builds, built-not-shipped, safety stock) and inflation ▪ As production output i
Slide 9: 2022 Guidance – Confirm Guidance Range 50-100 bps
2022 Guidance – Confirm Guidance Range Guidance Net Sales $1.125B - $1.170B Maintains path to long-term financial objectives: Organic Net Sales Growth 6.0% - 10.0% 2-3% Diluted EPS $3.65 - $4.25 Annual net sales growth Adjusted Diluted EPS(1) $4.15 - $4.75 6-10% Adjusted EBITDA(1) $140M - $155M Annu
Slide 10: Questions?
Questions? Tennant Company Earnings Release Call Second Quarter 2022 10
Slide 11: Appendix
Appendix Tennant Company Earnings Release Call Second Quarter 2022 11
Slide 12: Enterprise Strategy – Global Positioning Strategy (GPS)
Enterprise Strategy – Global Positioning Strategy (GPS) Win where we have a Reduce complexity & build Innovate for profitable competitive advantage scalable processes growth Tennant Company Earnings Release Call Second Quarter 2022 12
Slide 13: Win where we have a competitive advantage
Focus investments and resources where we can create the most value Focus Areas Win where 1 2 3 we have a competitive advantage Simplifying the product portfolio Strengthening local advantage Optimizing go-to-market Tennant Company Earnings Release Call Second Quarter 2022 13
Slide 14: Reduce complexity & build scalable processes
Simplify and standardize to gain efficiency and leverage Focus Areas Reduce 1 2 3 complexity & build scalable Leveraging Our Advancing Our Capturing processes Platform Product Supply Chain – Operating Model Design Local for Local Efficiencies Tennant Company Earnings Release Call Second Quarter 2022
Slide 15: Innovate for profitable growth
Thinking Differently to Maximize Value for Customers and Tennant Innovate for Customer- New Unlocking profitable Driven Insights Innovation Approach Value for Customers growth and Tennant Tennant Company Earnings Release Call Second Quarter 2022 15