Tennant Company · NYSE:TNC
Tennant — Q1 2022 Earnings Presentation
15 slides from Tennant's earnings presentation, Apr 28, 2022
Slide 1: Earnings Release Call First Quarter 2022
Earnings Release Call First Quarter 2022 Thursday, April 28, 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 Q1 2022 Q1 2021 Q1 in line with expectations Net Sales $258.1 $263.3 Adjusted Continued robust demand driving EBITDA* $27.9 $40.7 increased backlog Adjusted Diluted EPS* $0.73 $1.17 Macroeconomic headwinds persist In millions of USD, except adjusted diluted EPS Updated FY ‘22 adjus
Slide 4: Operational and Macroenvironment Overview
Operational and Macroenvironment Overview Balance of Year Q1 On Track What’s Our Changed Actions • Robust demand • Flatter supply chain recovery • Accelerated supply chain • Record backlog than expected dual sourcing and local-for- • Higher-than-expected local strategy • Price realization having imp
Slide 5: Tennant Company Financial Results First Quarter 2022
Tennant Company Financial Results First 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: First Quarter Financial Performance
First Quarter Financial Performance Net Income Net Income Adjusted EPS* Q1‘22 Net Income of $10.3M down $15.4M reflecting material and freight inflation resulting in lower margins and continued supply chain challenges resulting in lower $25.7 $1.17 volume partly offset by increased price and lower
Slide 7: First Quarter 2022 Results
First Quarter 2022 Results Net Sales Adjusted EBITDA* Unfavorable volume of approximately $5M as a result of Unfavorable volume of approximately $2M as a result of continued declines resulting from continued supply chain constraints supply chain constraints Favorable Price/Mix of approximately
Slide 8: Capital Deployment
Capital Deployment Q1 2022 YE 2021 Total Debt $282M $268M Net Leverage 1.35x 1.03x Revolver Availability: $264.1M Tennant Company Earnings Release Call First Quarter 2022 8
Slide 9: 2022 Guidance Update
2022 Guidance Update Original Update Net Sales $1.125B - $1.17B $1.125B - $1.170B Maintains path to long-term financial objectives: Organic Net Sales Growth 4.5% - 8.5% 4.5% - 8.5% 2-3% Diluted EPS $3.90 - $4.50 $3.65 - $4.25 Annual net sales growth Adjusted Diluted EPS(1) $4.40 - $5.00 $4.15 - $4.7
Slide 10: Questions?
Questions? Tennant Company Earnings Release Call First Quarter 2022 10
Slide 11: Appendix
Appendix Tennant Company Earnings Release Call First 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 First 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 First 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 processes Leveraging Our Platform Product Advancing Our Supply Chain – Capturing Operating Model Design Local for Local Efficiencies Tennant Company Earnings Release Call First 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 First Quarter 2022 15