NYSE$TNC

Tennant Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Tennant reported first quarter results aligning with expectations, with strong demand offset by supply chain constraints and inflationary pressures.

Tennant Company's first quarter 2022 results showed a slight decrease in net sales compared to the previous year, driven by foreign currency exchange impacts and the divestiture of the Coatings business, though organic sales increased. Gross margin decreased due to material inflation and higher freight costs. The company lowered its full-year guidance for adjusted EBITDA due to anticipated continued challenges with parts availability.

  • Consolidated net sales decreased by 2.0% to $258.1 million compared to Q1 2021.
  • Organic sales increased by 0.8%, driven by higher selling prices, but offset by volume declines due to supply chain constraints.
  • Gross margin decreased to 38.3% from 43.0% in the prior-year period due to material inflation and higher freight costs.
  • Net income attributable to Tennant Company decreased to $10.3 million, driven by lower margins.

Headline financials

Total Revenue

$258M

Previous: $263M-2.0%
EPS (adj)

$0.73

Previous: $1.17-37.6%
Gross Margin

38.3%

Previous: 43.0%-10.9%
Capital Expenditures

-$5M

Previous: -$4.8M-4.2%
Free Cash Flow

$5.3M

Previous: $20.9M-74.6%
Net Income

$10.3M

Previous: $25.7M-59.9%
Operating Income

$14.6M

Previous: $36.3M-59.8%
Gross Profit

$98.9M

Previous: $113M-12.7%
Cash & Equivalents

$110M

Previous: $175M-37.0%
Total Assets

$1.05B

Previous: $1.08B-2.8%
Stock-Based Comp

$1.8M

Previous: $3.1M-41.9%

Revenue & EPS history

Tennant · Revenue · Quarterly

$258M

Q1 2022-2%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Tennant provides the following guidance for 2022: Net sales between $1,125.0 - $1,170.0 million, organic net sales growth of 4-6%, diluted net income per share between $3.65 - $4.25, Adjusted diluted net income per share between $4.15 - $4.75, Adjusted EBITDA between $140.0 - $155.0 million, and Capital expenditures between $25.0 - $30.0 million.

Tailwinds

  • Strong continuing demand for Tennant products.
  • Commitment and agility of teams in addressing the changing market landscape to meet demand.
  • Well positioned to capitalize on any improvement in parts availability.
  • Focus on overcoming challenges creatively and diligently.
  • Guidance includes organic net sales growth of 4-6%.

Headwinds

  • Macroeconomic headwinds and geopolitical risk factors have worsened.
  • Revised guidance reflects current operating environment constrained by parts availability and higher inflation.
  • Lowered full-year guidance for adjusted EBITDA from $145 to $160 million to $140 to $155 million.
  • Diminished parts availability resulting in increased backlog levels.
  • Uncertainty surrounding the impacts and duration of the COVID-19 pandemic.

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 2022

Historical avgQ1 2022

-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%

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