NYSE$TNC

Tennant Company · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Tennant Company reported an increase in fourth-quarter net sales and earnings per share.

Tennant Company reported fourth-quarter net sales of $294.8 million, a 3.4 percent increase, and GAAP diluted earnings per share of $0.59. The company's adjusted EBITDA increased to $34.0 million, or 11.5 percent of sales.

  • Fourth-quarter net sales increased by 3.4 percent to $294.8 million.
  • Organic sales rose 2.8 percent in the fourth quarter.
  • GAAP diluted earnings per share were $0.59 in the fourth quarter.
  • Adjusted EBITDA increased to $34.0 million, representing 11.5 percent of sales.

Headline financials

Total Revenue

$295M

Previous: $285M+3.4%
EPS (adj)

$0.64

Previous: $0.54+18.5%
Adjusted EBITDA

$34M

Previous: $30.3M+12.2%
Adjusted EBITDA Margin

11.5%

Previous: 10.6%+8.5%
Gross Margin

40.2%

Previous: 39.3%+2.3%
Capital Expenditures

$10.1M

Previous: $6.01M+68.0%
Free Cash Flow

$15.6M

Previous: $30.5M-48.8%
Net Income

$10.9M

Previous: $7.72M+41.2%
Operating Income

$19.5M

Previous: $13.1M+48.4%
Gross Profit

$119M

Previous: $112M+5.7%
Cash & Equivalents

$74.6M

Previous: $85.6M-12.9%
Total Assets

$1.06B

Previous: $993M+7.1%
Stock-Based Comp

$2.7M

Previous: $2.31M+17.1%

Revenue & EPS history

Tennant · Revenue · Quarterly

$295M

Q4 2019+3.4%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

For 2020, Tennant provides net sales guidance of $1.15 billion to $1.16 billion, reflecting organic sales growth of 1.5 to 2.5%, GAAP earnings in the range of $3.05 to $3.20 per diluted share, adjusted EPS of $4.00 to $4.15 per diluted share, adjusted EBITDA of $146 million to $149 million, capital expenditures of approximately $35 million, and an effective tax rate of approximately 19 percent.

Tailwinds

  • Net sales of $1.15 billion to $1.16 billion.
  • Organic sales growth of 1.5 to 2.5 percent.
  • Full-year reported GAAP earnings in the range of $3.05 to $3.20 per diluted share.
  • Adjusted EPS of $4.00 to $4.15 per diluted share.
  • Adjusted EBITDA of $146 million to $149 million.

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 Q4 2019

Historical avgQ4 2019

-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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