NYSE$TNC

Tennant Company · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter results with net income of $15.6 million and organic sales growth of 1.7%.

Tennant Company reported a decrease in net sales by 3.3% to $262.9 million, but achieved a 1.7% organic sales increase. Net income decreased to $15.6 million, primarily driven by lower margins. The company is managing costs and addressing supply chain disruptions.

  • Net income for the third quarter was $15.6 million on net sales of $262.9 million, with a 1.7% organic sales growth.
  • Adjusted EBITDA for the third quarter was $33.8 million, representing 12.9% of sales; adjusted diluted EPS was $0.99.
  • Macroeconomic headwinds, including foreign currency volatility, negatively impacted results.
  • The company lowered full-year diluted EPS guidance range to $3.20 - $3.60 and Adjusted EBITDA guidance range to $130 million - $140 million.

Headline financials

Total Revenue

$263M

Previous: $272M-3.3%
EPS (adj)

$0.99

Previous: $1.33-25.6%
Adjusted EBITDA

$33.8M

Previous: $36M-6.1%
Adjusted EBITDA Margin

12.9%

Previous: 13.2%-2.3%
Capital Expenditures

-$19.4M

Previous: -$12M-61.7%
Free Cash Flow

-$3.8M

Previous: $9.5M-140.0%
Net Income

$15.6M

Previous: $21.5M-27.4%
Operating Income

$21.4M

Previous: $23.9M-10.5%
Gross Profit

$101M

Previous: $109M-7.8%
Cash & Equivalents

$59.2M

Previous: $141M-57.9%
Total Assets

$1.01B

Previous: $1.07B-5.8%
Stock-Based Comp

$1.7M

Previous: $2.5M-32.0%

Revenue & EPS history

Tennant · Revenue · Quarterly

$263M

Q3 2022-3.3%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The Company’s full-year 2022 revised guidance, detailed below, factors in the impacts of foreign currency headwinds, inflation and price realization, as well as increasing energy costs.

Tailwinds

  • Incremental improvements to stabilize supply chain.
  • Increase production levels to deliver best-in-class service.
  • Enhance the customer experience.
  • Focus on increasing production to service backlog.
  • Improve profit margins through price realization.

Headwinds

  • Impacts of foreign currency headwinds.
  • Inflation.
  • Increasing energy costs.
  • Geopolitical factors have moderated demand patterns, specifically in EMEA and APAC.
  • Macroeconomic headwinds, including foreign currency volatility, persisted during the quarter, and we anticipate this environment will continue to impact results.

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 Q3 2022

Historical avgQ3 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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