Tennant Company · NYSE:TNC
Tennant — Q2 2023 Earnings Presentation
16 slides from Tennant's earnings presentation, Aug 4, 2023
Slide 1: Earnings Release Call Second Quarter 2023
Earnings Release Call Second Quarter 2023 August 4, 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 Record net sales quarter 2023 Q2 organic sales growth of 15% • Net sales driven by delivering on backlog, base business relatively flat Q2 2023 Q2 2022 % Change Q2 Adjusted EBITDA* improves to Net Sales $321.7 $280.2 14.8% $57.6M • 17.9% of net sales – up from 10.8% Q2 ‘22 Adjusted
Slide 4: Innovation and Sustainability
Innovation and Sustainability Product Launches North Autonomous Robotics – Thriving People. America T16AMR Healthy Planet. • Enhances existing lineup of ride-on • Used in industrial applications like • 2023 Sustainability Report – sweepers logistics and manufacturing coming soon • Smaller size and i
Slide 5: Financial Results Second Quarter 2023
Tennant Company Financial Results Second Quarter 2023 I N V E S T O R S . T E N N A N T C O . C O M Tennant Company Earnings Release Call | Second Quarter 2023 5
Slide 6: Second Quarter 2023 Financial Performance
Second Quarter 2023 Financial Performance Net Income Net Income Adjusted Diluted EPS* ► Q2 2023 net income of $31.3M increased $14.7M compared to the same period last year ► Interest expense of $4.0M increased $2.8M in Q2 2023 compared to the prior-year period $1.86 $31.3 ► Effective tax rate of 21.
Slide 7: Second Quarter 2023 – Net Sales Performance
Second Quarter 2023 – Net Sales Performance Net Sales ► Favorable volume impact of ~$16M Volume increases in all major geographies except EMEA ► Favorable price realization of ~$26M Pricing realization impacting all geographies ► Unfavorable foreign currency impact of ~$1M, primarily APAC Region* Ca
Slide 8: Second Quarter 2023 – Adjusted EBITDA Performance
Second Quarter 2023 – Adjusted EBITDA Performance Adjusted EBITDA* 10.8% 17.9% Volume Improvement in S&A & Other Adjusted impact of gross margin increase due to EBITDA Margin* ~$6M contributed ~$28M higher variable improves to 17.9% of of the increase in employee net sales from 10.8% Adjusted EBITDA
Slide 9: Capital Deployment
Capital Deployment Q2 2023 YE 2022 Total Debt $278M $300M Net Leverage* 1.0x 1.67x Operating Cash Flow: $39M Revolver Availability: $262M Net cash provided by Capital expenditures of Returned capital to operating activities of ~$39M ~$5M in line with shareholders via dividend guidance expectations a
Slide 10: Increase 2023 Full-Year Guidance
Increase 2023 Full-Year Guidance Revised 2023 Guidance Original 2023 Guidance Net Sales $1.2B - $1.25B $1.115B - $1.155B Organic Net Sales Growth 10% - 14% 3% - 7% Diluted EPS $4.30 - $4.95 $3.10 - $3.90 Adjusted Diluted EPS(1) $5.10 - $5.75 $3.70 - $4.50 Adjusted EBITDA(1) $175M - $190M $140M - $16
Slide 11: Questions?
Questions? Tennant Company Earnings Release Call | Second Quarter 2023 Tennant Company Earnings Release Call | Second Quarter 2023 11
Slide 12: Thank you
Thank you Tennant Company Earnings Release Call | Second Quarter 2023 Tennant Company Earnings Release Call | Second Quarter 2023 12
Slide 13: Appendix
Appendix Tennant Company Earnings Release Call | Second Quarter 2023 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 | Second Quarter 2023 15
Slide 16: Tennant Company Supplemental Non-GAAP Financial Tables
TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES Tennant Company Earnings Release Call | Second Quarter 2023 16