NYSE$TNC

Tennant Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Tennant Company's first quarter results for 2020 were reported, showing a decrease in net sales and net income compared to the same period last year, impacted by the coronavirus pandemic.

Tennant Company reported a decrease in net sales by 4.0% year-over-year to $252.1 million, with a net income of $5.2 million, or $0.28 per diluted share. The results were impacted by the coronavirus pandemic, which led to temporary plant shutdowns and a slowdown in sales to some end markets.

  • Net sales totaled $252.1 million, a 4.0% year-over-year decrease.
  • Net income was $5.2 million, or $0.28 per diluted share.
  • Adjusted diluted earnings per share were $0.57, compared to $0.72 in the first quarter of 2019.
  • Adjusted EBITDA was $26.1 million, or 10.4% of sales, compared to $29.5 million, or 11.2% of sales, in the year-ago period.

Headline financials

Total Revenue

$252M

Previous: $263M-4.0%
EPS (adj)

$0.57

Previous: $0.49+16.3%
Adjusted EBITDA

$26.1M

Previous: $29.5M-11.5%
Gross Margin

41.3%

Previous: 41.2%+0.2%
Capital Expenditures

-$12.4M

Previous: -$20.5M+39.5%
Free Cash Flow

-$7.2M

Previous: -$15.1M+52.3%
Net Income

$5.2M

Previous: $5.4M-3.7%
Operating Income

$14.4M

Previous: $10.8M+33.3%
Gross Profit

$104M

Previous: $108M-3.8%
Cash & Equivalents

$192M

Previous: $46.9M+309.6%
Total Assets

$1.15B

Previous: $1.04B+10.5%
Stock-Based Comp

$2.8M

Previous: $3.3M-15.2%

Revenue & EPS history

Tennant · Revenue · Quarterly

$252M

Q1 2020-4%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The Company withdrew the full-year guidance due to the uncertain nature of the coronavirus pandemic and does not have the ability to accurately predict the level of impact on its businesses and financial results for the remainder of fiscal 2020.

Tailwinds

  • Implemented reduced work schedules and furlough programs for all employees globally.
  • CEO will forgo 100 percent of his salary through the second quarter of 2020.
  • Senior leaders will forgo 35 percent of their salaries through the second quarter of 2020.
  • Board of directors will take a 50 percent cut in pay through the second quarter of 2020.
  • Proactive in establishing a dedicated enterprise-wide response team.

Headwinds

  • Uncertainty surrounding the impacts and duration of the COVID-19 pandemic.
  • Temporary plant shutdowns.
  • Slowdown in sales to some end markets.
  • Widespread closures of customer facilities and operations.
  • Currency transaction loss of approximately $4 million related to significant strengthening of the U.S. dollar.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.1%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+20.3%

Q1 2023

Best reaction

-23.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+6.5%+3.3%
Q4 2025-23.0%-25.8%-17.7%
Q3 2025-5.5%-6.3%-6.7%
Q1 2025+2.7%+1.9%+7.1%
Q4 2024-1.7%-0.7%-3.4%
Q3 2024-7.7%-5.0%-2.0%
Q2 2024-2.5%-3.0%-4.7%
Q1 2024-7.5%-6.6%-11.3%
Q4 2023+4.3%+12.5%+19.5%
Q3 2023+5.3%+9.2%+13.5%
Q2 2023+7.1%+6.3%+2.7%
Q1 2023+20.3%+18.1%+13.0%
Q4 2022+4.9%+3.4%-5.6%
Q3 2022-0.5%-1.8%+5.9%
Q2 2022+3.5%+7.3%-7.8%
Q1 2022-8.3%-11.4%-10.1%
Q4 2021+3.5%+1.2%+5.1%
Q3 2021-1.5%+2.5%-1.2%
Q2 2021-4.1%-4.9%-3.6%
Q1 2021+3.6%+6.6%+3.9%
Q4 2020-3.7%-2.2%+2.4%
Q3 2020-0.4%+2.2%+14.8%
Q2 2020-4.3%-5.1%-1.9%
Q1 2020-4.7%-4.2%+22.7%
Q4 2019-0.3%-2.6%-38.0%
Q3 2019+8.2%+9.5%+4.0%
Q2 2019+8.5%+3.1%+1.8%
Q1 2019-6.1%-4.3%-15.7%
Q4 2018+4.8%+1.1%-0.8%
Q3 2018-3.9%-7.7%-8.5%
Q2 2018+5.4%+1.8%-4.4%
Q1 2018+6.7%+5.9%+12.8%
Q4 2017+1.6%+8.7%+6.4%
Q3 2017-5.6%-2.2%-5.5%
Q2 2017-13.4%-12.7%-19.1%
Q1 2017-1.6%-0.5%-4.3%
Q4 2016+6.9%+0.2%+0.9%
Q3 2016-0.3%+3.5%+24.0%
Q2 2016+9.5%+11.3%+11.4%
Q1 2016-1.4%
Q4 2015+0.4%
Q3 2015-0.2%
Q2 2015-5.1%
Q1 2015-0.2%
Q4 2014-3.2%
Q3 2014+0.6%
Q2 2014+2.8%
Q1 2014+0.1%
Q4 2013-9.0%
Q3 2013-6.9%
Q2 2013-0.1%
Q1 2013-0.5%
Q4 2012+0.3%
Q3 2012-3.0%
Q2 2012+1.7%
Q1 2011+1.8%
Q1 2012+3.6%
Q4 2011-2.1%
Q4 2009-2.1%
Q1 2010-2.1%
Q3 2011+7.2%
Q3 2010+7.2%
Q2 2010-6.5%
Q2 2011-6.5%
Q4 2010-6.5%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro