Tennant Company · NYSE:TNC
Tennant — Q3 2024 Earnings Presentation
17 slides from Tennant's earnings presentation, Nov 1, 2024
Slide 1: Earnings Release Call Third Quarter 2024 Results
Earnings Release Call Third Quarter 2024 Results November 1, 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 expectations or forecasts of
Slide 3: Executive Summary
Executive Executive Summary Summary Net Sales Growth • Organic net sales growth of 2.7% driven by price growth across each geography and volume growth in the Americas; partially offset by volume declines in EMEA and APAC Third Quarter Results Net Sales Adj. EBITDA* Adj. Diluted EPS* Adjusted EBITDA
Slide 4: Elevate Growth Strategy
Elevate Growth Strategy Our Strategic Pillars GROWTH PERFORMANCE PEOPLE Pricing Excellence Enterprise Resource Planning Employee Value Proposition Product Innovation Sustainability New Channels & Markets New Business Models Strategic Acquisitions 3 to 5% Organic Net 50 to 100 bps EBITDA Margin 100%
Slide 5: Third Quarter Updates
Third Quarter Updates Pricing Growth Across Each Geography • Positioned to achieve long-term growth goal of approximately 50 – 100 bps of annual price growth X4 ROVR New Product Development • Launched the new T291 small walk-behind scrubber in North America • Continued focus on small space and produ
Slide 6: Financial Results Third Quarter 2024
Financial Results Third Quarter 2024 Tennant Company Earnings Release Call | Third Quarter 2024 6
Slide 7: Third Quarter 2024 Performance
Third Quarter 2024 Performance Third quarter net income of $20.8M, Net Income Adjusted EPS compared to $22.9M in the prior year • Decrease due to ERP modernization costs and M&A transaction and integration costs • Interest expense decreased $0.6M in Q3 2024 due to lower debt balances and reduced int
Slide 8: Third Quarter 2024 Results
Third Quarter 2024 Results Net Sales Adjusted EBITDA Product Categories Gross Margin decreased 90 bps to 42.4% By Region** • Attributed to inflationary pressure on materials and elevated $51 M freight costs partially offset by price realization +4.6% Americas $47 M Service $68 M $68 M Adjusted S&A*
Slide 9: Capital Deployment
Capital Deployment YE 2023 Q3 2024 Total Debt $201M $209M Cash Flow Net Leverage* 0.43x 0.56x Revolver Availability: $439.3M Net cash provided by operating Capital expenditures of ~$4M Returned capital to activities of ~$31M driven by shareholders via dividend operating performance, partially and sh
Slide 10: Reaffirm 2024 Full-Year Guidance
Reaffirm 2024 Full-Year Guidance 2024 Guidance Net Sales $1.280B - $1.305B Organic Net Sales Growth 2.5% - 4.5% Adjusted Diluted EPS(1) $6.15 - $6.55 Adjusted EBITDA(1) $205M - $215M Adjusted EBITDA Margin(1) 16.0% - 16.5% Capital Expenditures(1) ~$20M Adjusted Effective Tax Rate(1) 22% - 27% (1) Ex
Slide 11: Q&A
Q&A 11 Tennant Company Earnings Release Call | Third Quarter 2024 11
Slide 12: Thank You
Thank You Tennant Company Earnings Release Call | Third Quarter 2024 12
Slide 13: Appendix
Appendix Tennant Company Earnings Release Call | Third Quarter 2024 13
Slide 14: 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 15: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Third Quarter 2024 15
Slide 16: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Third Quarter 2024 16
Slide 17: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Third Quarter 2024 17