Tennant Company · NYSE:TNC
Tennant — Q3 2022 Earnings Presentation
10 slides from Tennant's earnings presentation, Oct 27, 2022
Slide 1: Earnings Release Call Third Quarter 2022
Earnings Release Call Third Quarter 2022 October 27, 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 Q3 organic sales growth of 1.7%; Q3 2022 Q3 2021 foreign currency headwinds Net Sales $262.9 $272.0 Q3 Adjusted EBITDA improvement on Constant Currency $276.7 constant-currency basis • Sequential improvement versus Q2 Adjusted $33.8 $36.0 EBITDA* Macroeconomic headwinds persist Con
Slide 4: Addressing Current Environment…Remain Focused on Long-Term
Addressing Current Environment…Remain Focused on Long-Term Operations Margin Expansion Playbook Playbook Enterprise Increase Preserve Strategy Production Profitability • Expand dual-sourcing supply • Deliver value to customers • Win where we have a • Local-for-local procurement • Drive Service and P
Slide 5: Financial Results Third Quarter 2022
Tennant Company Financial Results Third 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: Third Quarter Financial Performance
Third Quarter Financial Performance Net Income Adjusted EPS* Net Income Q3 ‘22 Net Income of $15.6M decreased $1.33 $5.9M from Q3 ‘21 reflecting unfavorable $21.5 currency variances and cost inflation, offset $0.99 $15.6 partially by pricing actions Q3 ’22 income taxes of $4.2M were unfavorable
Slide 7: Third Quarter 2022 Results
Third Quarter 2022 Results Net Sales Adjusted EBITDA* Organic growth 1.7%: Americas 4.6%, EMEA 0.6%, Unfavorable volume impact of ~ $6M APAC -14% Increase in gross margin accounts for $4M driven primarily by: Unfavorable volume impact of ~ $14M Inflation related to material, labor, freight
Slide 8: Capital Deployment
Capital Deployment Q3 2022 YE 2021 Total Debt $282M $268M Net Leverage* 1.65x 1.03x Revolver Availability: $261.9M *Calculated based on midpoint of revised guidance range Changes in working capital driven by higher inventory (additional purchases and inflation) and higher accounts receivable (cust
Slide 9: 2022 Guidance – Revised Guidance Range
2022 Guidance – Revised Guidance Range Prior Guidance Revised Guidance Net Sales $1.125B - $1.17B $1.08B - $1.11B Organic Net Sales Growth 6.0% - 10.0% 3.0% - 6.0% Diluted EPS $3.65 - $4.25 $3.20 - $3.60 Adjusted Diluted EPS(1) $4.15 - $4.75 $3.70 - $4.10 Adjusted EBITDA(1) $140M - $155M $130M - $14
Slide 10: Questions?
Questions? Tennant Company Earnings Release Call Third Quarter 2022 10