Net sales of $299.7 million in the second
quarter, an increase of 3.8 percent organically
Adjusted EBITDA growth of 17.1 percent to
$41.8 million, up 170 basis points to 13.9 percent of sales
Second-quarter GAAP diluted earnings per
share of $0.81; adjusted diluted EPS of $1.13 per share
Company raises 2019 guidance for net sales,
Adjusted EBITDA and EPS
Tennant Company (“Tennant”) (NYSE: TNC), a world leader in
designing, manufacturing and marketing of solutions that help
create a cleaner, safer, healthier world, today reported second
quarter 2019 results. Tennant Company reported net sales of $299.7
million, a 2.6 percent improvement for the 2019 second quarter.
Excluding the impact of the recent Gaomei acquisition and foreign
currency, organic sales grew 3.8 percent, led by the Americas
region. Net earnings were $14.8 million, or $0.81 per diluted
share, compared to $12.7 million, or $0.69 per diluted share, in
the 2018 second quarter. Included in the results were
non-operational charges of $5.1 million related to the exit of the
Green Machine and Orbio product lines. Excluding non-operational
items, adjusted net earnings grew 37.7 percent to $20.8 million, or
$1.13 per diluted share, compared to adjusted net earnings of $15.1
million in the 2018 second quarter, or $0.82 per diluted share.
(See the Supplemental Non-GAAP Financial Table.)
“We are pleased with our strong performance in the second
quarter, which exceeded our internal expectations. Tennant
Company’s transition from a period of strategic expansion to a
heightened focus on profitable growth is supported by three
strategic pillars: winning where we have the strongest value
proposition; reducing complexity and building scalable processes;
and building on our position as an innovation leader,” said Chris
Killingstad, Tennant Company’s president and chief executive
officer. “We continued to make progress on these efforts in the
second quarter, amid mixed economic and global market conditions.
Sales in the period reflected a blend of factors: strength in the
Americas, market softness in Europe, timing considerations in Asia
Pacific and negative currency impacts; while our profitability
gains illustrate our strategic focus and more deliberate approach
to margin improvement. These efforts continue to develop and mature
and resulted in strong earnings performance during the second
quarter of 2019 that bolstered our confidence in our outlook.”
Second-Quarter Operating
Review
Regional Sales Highlights
- Americas – Sales in the Americas rose 6.0 percent, or 7.8
percent organically, reflecting strength across both Latin America
and North America, primarily driven by a combination of growth in
strategic accounts, strength in service, parts and consumables,
contributions from the newly introduced autonomous cleaning machine
and pricing.
- EMEA – Sales in EMEA declined 7.4 percent, or down 2.9 percent
organically, reflecting general market weakness across the entire
region.
- APAC – Sales in APAC rose 12.7 percent, reflecting the
contribution from recently acquired Gaomei, but declined 0.5
percent organically. However, year-to-date organic sales rose 3.6
percent.
Profitability Measures and Related Factors
- (See the Supplemental Non-GAAP Financial Table)
- Gross margin – Gross margin in the 2019 second quarter was 40.3
percent compared to 40.1 percent in the 2018 second quarter.
Adjusted gross margin in the 2019 second quarter was 41.4 percent,
a 130-basis-point improvement year over year, reflecting the
benefits of pricing actions, favorable geographic and channel mix
and operational efficiencies, which helped offset factors such as
material inflation and tariffs.
- Adjusted EBITDA – Adjusted earnings before interest, taxes,
depreciation and amortization during the 2019 second quarter grew
17.1 percent, an improvement of 170 basis points, to 13.9 percent
of sales, reflecting Tennant’s broad-based efforts to improve gross
margins through pricing and other strategic initiatives, balancing
spending discipline with investments in EBITDA expanding
initiatives and timing of S&A and R&D shifts to the second
half of 2019. (See the Supplemental Non-GAAP Financial Table.)
- Effective tax rate – In the 2019 second quarter, Tennant
realized a discrete tax benefit due to a partial release of our
valuation allowance on deferred tax assets, resulting in an
adjusted effective tax rate for the quarter of 11.7 percent.
Cash Flow, Capital Allocation and Other
Items
During the quarter, Tennant generated cash flow from operations
of $22.5 million, primarily driven by strong business performance.
During the same period, the company reduced our outstanding debt by
$5.8 million and paid $4.0 million in cash dividends to
shareholders.
2019 Business Outlook
Killingstad concluded, “We are pleased with the growth platform we
have built and are now taking the steps necessary to more fully
realize its benefits. Tennant continues to face mixed market
conditions and various economic headwinds, and internally, we
remain a company in transition. We are tightly focused on our three
strategic pillars, which are guiding how we evolve our business
portfolio, deepening our operational rigor and investing in
innovation, all toward improving our ongoing EBITDA margin and
driving shareholder value. We are making additional investments in
these strategies in the back half of 2019, which is reflected in
our updated 2019 outlook.”
For 2019, Tennant revised its previously provided guidance as
follows:
- Net sales of $1.150 billion to $1.165 billion, reflecting
organic sales growth of 3.0 to 4.0 percent;
- GAAP earnings in the range of $1.80 to $2.00 per diluted
share;
- Adjusted EPS of $2.65 to $2.85 per diluted share;
- Adjusted EBITDA of $131 million to $135 million;
- Capital expenditures in the range of $35 million to $40
million; and
- An effective tax rate of approximately 16 percent.
Conference Call Tennant will
host a conference call to discuss 2019 second-quarter results on
July 31, 2019, at 10 a.m. Central Time (11 a.m. Eastern Time). The
conference call and accompanying slides will be available via
webcast on Tennant's investor website. To listen to the call live
and view the slide presentation, go to investors.tennantco.com and
click on the link at the bottom of the home page. A taped replay of
the conference call, with slides, will be available at
investors.tennantco.com until August 31, 2019.
Company Profile Founded in
1870, Tennant Company (TNC), headquartered in Minneapolis,
Minnesota, is a world leader in designing, manufacturing and
marketing solutions that empower customers to achieve quality
cleaning performance, reduce their environmental impact and help
create a cleaner, safer, healthier world. Its products include
equipment for maintaining surfaces in industrial, commercial and
outdoor environments; detergent-free and other sustainable cleaning
technologies; cleaning tools and supplies; and coatings for
protecting, repairing and upgrading surfaces. Tennant's global
field service network is the most extensive in the industry.
Tennant Company had sales of $1.12 billion in 2018 and has
approximately 4,300 employees. Tennant has manufacturing operations
throughout the world and sells products directly in 15 countries
and through distributors in more than 100 countries. For more
information, visit www.tennantco.com
and www.ipcworldwide.com. The Tennant
Company logo and other trademarks designated with the symbol “®”
are trademarks of Tennant Company registered in the United States
and/or other countries.
Forward-Looking Statements
Certain statements contained in this document, as well as other
written and oral statements made by us from time to time, 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
expectations or forecasts of future events. Any such expectations
or forecasts of future events are subject to a variety of factors.
These include factors that affect all businesses operating in a
global market as well as matters specific to us and the markets we
serve. Particular risks and uncertainties presently facing us
include: our ability to effectively develop and manage strategic
planning and growth processes and the related operational plans;
our ability to successfully upgrade and evolve our information
technology systems; fluctuations in the cost, quality or
availability of raw materials and purchased components;
geopolitical and economic uncertainty throughout the world; our
ability to attract, retain and develop key personnel and create
effective succession planning strategies; our ability to develop
and commercialize new innovative products and services; our ability
to integrate acquisitions, including IPC and Gaomei; the
competition in our business; our ability to successfully protect
our information technology systems from cybersecurity risks; the
potential disruption of our business from actions of activist
investors or others; the occurrence of a significant business
interruption; our ability to comply with laws and regulations;
unforeseen product liability claims or product quality issues; our
ability to generate sufficient cash to satisfy our debt
obligations; and the relative strength of the U.S. dollar, which
affects the cost of our materials and products purchased and sold
internationally.
We caution that forward-looking statements must be considered
carefully and that actual results may differ in material ways due
to risks and uncertainties both known and unknown. Information
about factors that could materially affect our results can be found
in our 2018 Form 10-K or 2019 Form 10-Qs. Shareholders, potential
investors and other readers are urged to consider these factors in
evaluating forward-looking statements and are cautioned not to
place undue reliance on such forward-looking statements.
We undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law. Investors
are advised to consult any further disclosures by us in our filings
with the Securities and Exchange Commission and in other written
statements on related subjects. It is not possible to anticipate or
foresee all risk factors, and investors should not consider any
list of such factors to be an exhaustive or complete list of all
risks or uncertainties.
Non-GAAP Financial Measures
This news release and the related conference call include
presentation of non-GAAP measures that include or exclude special
items. Management believes that the non-GAAP measures provide
useful information to investors regarding the company’s results of
operations and financial condition because they permit a more
meaningful comparison and understanding of Tennant Company’s
operating performance for the current, past or future periods.
Management uses these non-GAAP measures to monitor and evaluate
ongoing operating results and trends and to gain an understanding
of the comparative operating performance of the company.
We believe that disclosing Gross Profit – as adjusted, Gross
Margin – as adjusted, Selling and Administrative Expense – as
adjusted, Selling and Administrative Expense as a percent of Net
Sales – as adjusted, Profit from Operations – as adjusted,
Operating Margin – as adjusted, Profit Before Income Taxes – as
adjusted, Income Tax Expense – as adjusted, Net Earnings
Attributable to Tennant Company – as adjusted and Net Earnings
Attributable to Tennant Company per Share – as adjusted
(collectively, the “Non-GAAP Measures”), excluding the impacts from
the discontinuation of product lines, acquisition and integration
costs, certain non-operational professional services, restructuring
charges and a note receivable write down are useful to investors as
a measure of operating performance. We use these as one measure to
monitor and evaluate operating performance. The non-GAAP measures
are financial measures that do not reflect United States Generally
Accepted Accounting Principles (GAAP). We calculate Gross Profit –
as adjusted, Gross Margin – as adjusted, Selling and Administrative
Expense – as adjusted, Selling and Administrative Expense as a
percent of Net Sales – as adjusted, Profit from Operations – as
adjusted, Operating Margin – as adjusted, and Profit Before Income
Taxes – as adjusted by adding back the pre-tax effect of the
discontinuation of product lines, acquisition and integration
costs, certain non-operational professional services, restructuring
charges and a note receivable write down. We calculate Income Tax
Expense – as adjusted by adding back the tax effect of the
discontinuation of product lines, acquisition and integration
costs, certain non-operational professional services, restructuring
charges and a note receivable write down. We calculate Net Earnings
Attributable to Tennant Company – as adjusted by adding back the
after-tax effect of the discontinuation of product lines,
acquisition and integration costs, certain non-operational
professional services, restructuring charges and a note receivable
write down. We calculate Net Earnings Attributable to Tennant
Company per Share – as adjusted by adding back the after-tax effect
of the discontinuation of product lines, acquisition and
integration costs, certain non-operational professional services,
restructuring charges and a note receivable write down, and
dividing the result by the diluted weighted average shares
outstanding.
We believe that disclosing Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) and EBITDA Margin, excluding
the impact from the discontinuation of product lines, acquisition
and integration costs, certain non-operational professional
services, restructuring charges, and a note receivable write down
(EBITDA – as adjusted) and EBITDA Margin – as adjusted, is useful
to investors as a measure of operating performance. We use these
measures to monitor and evaluate operating performance. EBITDA – as
adjusted and EBITDA Margin – as adjusted are financial measures
that do not reflect GAAP. We calculate EBITDA – as adjusted by
adding back the pre-tax effect of the discontinuation of product
lines, acquisition and integration costs, certain non-operational
professional services, restructuring charges, and a note receivable
write down,
Interest Income, Interest Expense, Income Tax Expense,
Depreciation Expense and Amortization Expense to Net Earnings
(Loss) – as reported. We calculate EBITDA Margin – as adjusted by
dividing EBITDA – as adjusted by Net Sales.
Investors should consider these non-GAAP financial measures in
addition to, not as a substitute for, or better than, financial
measures prepared in accordance with GAAP. Reconciliations of the
components of these measures to the most directly comparable GAAP
financial measures are included in the Supplemental Non-GAAP
Financial Table to this earnings release.
TENNANT COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except shares and per share
data)
Three Months Ended
Six Months Ended
June 30
June 30
2019
2018
2019
2018
Net Sales
$
299.7
$
292.2
$
562.1
$
565.0
Cost of Sales
178.9
175.0
333.1
338.7
Gross Profit
120.8
117.2
229.0
226.3
Gross Margin
40.3%
40.1%
40.7%
40.1%
Operating Expense:
Research and Development Expense
8.4
7.9
15.6
15.9
Selling and Administrative Expense
92.5
90.3
182.7
181.0
Total Operating Expense
100.9
98.2
198.3
196.9
Profit from Operations
19.9
19.0
30.7
29.4
Operating Margin
6.6%
6.5%
5.5%
5.2%
Other Income (Expense):
Interest Income
0.9
0.9
1.7
1.7
Interest Expense
(5.4)
(6.0)
(10.5)
(11.8)
Net Foreign Currency Transaction
Losses
(0.2)
(0.3)
—
(1.1)
Other Income (Expense), Net
1.4
(0.5)
1.3
(0.7)
Total Other Expense, Net
(3.3)
(5.9)
(7.5)
(11.9)
Profit Before Income Taxes
16.6
13.1
23.2
17.5
Income Tax Expense
1.8
0.4
3.0
1.4
Net Earnings Including Noncontrolling
Interest
14.8
12.7
20.2
16.1
Net Earnings Attributable to
Noncontrolling interest
—
—
—
0.1
Net Earnings Attributable to Tennant
Company
$
14.8
$
12.7
$
20.2
$
16.0
Net Earnings Attributable to Tennant
Company per Share:
Basic
$
0.82
$
0.71
$
1.12
$
0.90
Diluted
$
0.81
$
0.69
$
1.10
$
0.88
Weighted Average Shares Outstanding:
Basic
18,082,492
17,943,450
18,062,591
17,867,641
Diluted
18,394,865
18,371,538
18,367,384
18,303,960
Cash Dividends Declared per Common
Share
$
0.22
$
0.21
$
0.44
$
0.42
GEOGRAPHICAL NET SALES(1)
(Unaudited)
(In millions)
Three Months Ended
Six Months Ended
June 30
June 30
2019
2018
%
2019
2018
%
Americas
$
189.5
$
178.8
6.0
$
350.3
$
341.4
2.6
Europe, Middle East and Africa
80.9
87.4
(7.4)
158.9
176.2
(9.8)
Asia Pacific
29.3
26.0
12.7
52.9
47.4
11.6
Total
$
299.7
$
292.2
2.6
$
562.1
$
565.0
(0.5)
(1) Net of intercompany sales.
TENNANT COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions)
June 30,
December 31,
2019
2018
ASSETS
Current Assets:
Cash, Cash Equivalents and Restricted
Cash
$
55.4
$
86.1
Receivables:
Trade, less Allowances of $3.0 and $2.5,
respectively
222.1
208.0
Other
9.9
8.2
Net Receivables
232.0
216.2
Inventories
159.5
135.1
Prepaid and Other Current Assets
32.5
31.2
Total Current Assets
479.4
468.6
Property, Plant and Equipment
414.0
386.6
Accumulated Depreciation
(240.7)
(223.2)
Property, Plant and Equipment, Net
173.3
163.4
Operating Lease Assets
45.4
—
Goodwill
193.3
182.7
Intangible Assets, Net
150.1
146.5
Other Assets
29.3
31.3
Total Assets
$
1,070.8
$
992.5
LIABILITIES AND TOTAL EQUITY
Current Liabilities:
Current Portion of Long-Term Debt
$
8.3
$
27.0
Accounts Payable
98.7
98.4
Employee Compensation and Benefits
50.2
56.1
Other Current Liabilities
102.5
67.4
Total Current Liabilities
259.7
248.9
Long-Term Liabilities:
Long-Term Debt
346.1
328.1
Long-Term Operating Lease Liabilities
29.1
—
Employee-Related Benefits
20.6
21.1
Deferred Income Taxes
45.5
46.0
Other Liabilities
34.6
32.1
Total Long-Term Liabilities
475.9
427.3
Total Liabilities
735.6
676.2
Equity:
Common Stock
6.8
6.8
Additional Paid-In Capital
34.5
28.5
Retained Earnings
328.5
316.3
Accumulated Other Comprehensive Loss
(36.1)
(37.2)
Total Tennant Company Shareholders’
Equity
333.7
314.4
Noncontrolling Interest
1.5
1.9
Total Equity
335.2
316.3
Total Liabilities and Total Equity
$
1,070.8
$
992.5
TENNANT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Six Months Ended
June 30
2019
2018
OPERATING ACTIVITIES
Net Earnings Including Noncontrolling
Interest
$
20.2
$
16.1
Adjustments to reconcile Net Earnings to
Net Cash Provided by Operating Activities:
Depreciation
15.9
16.3
Amortization of Intangible Assets
11.5
11.7
Amortization of Debt Issuance Costs
0.6
1.3
Fair Value Step-Up Adjustment to Acquired
Inventory
0.9
—
Deferred Income Taxes
(4.2)
(7.9)
Share-Based Compensation Expense
5.0
4.1
Allowance for Doubtful Accounts and
Returns
0.9
0.9
Acquisition Contingent Consideration
Adjustment
2.0
—
Note Receivable Write-down
2.7
—
Other, Net
0.1
0.3
Changes in Operating Assets and
Liabilities, Net of Assets Acquired:
Receivables, Net
(16.3)
(6.8)
Inventories
(23.1)
(17.0)
Accounts Payable
0.5
9.8
Employee Compensation and Benefits
(4.4)
3.7
Other Current Liabilities
(2.1)
(4.3)
Other Assets and Liabilities
0.7
(2.2)
Net Cash Provided by Operating
Activities
10.9
26.0
INVESTING ACTIVITIES
Purchases of Property, Plant and
Equipment
(25.4)
(7.7)
Proceeds from Disposals of Property, Plant
and Equipment
—
0.1
Proceeds from Principal Payments Received
on Long-Term Note Receivable
0.1
0.7
Acquisition of Business, Net of Cash, Cash
Equivalents and Restricted Cash Acquired
(8.9)
—
Purchase of Intangible Assets
(0.4)
(1.2)
Net Cash Used in Investing Activities
(34.6)
(8.1)
FINANCING ACTIVITIES
Proceeds from Credit Facility
Borrowings
25.0
—
Repayments of Debt
(25.9)
(18.1)
Change in Finance Lease Obligations
(0.1)
0.1
Proceeds from Issuances of Common
Stock
1.2
3.7
Purchase of Noncontrolling Owner
Interest
(0.5)
—
Dividends Paid
(8.0)
(7.6)
Net Cash Used in Financing Activities
(8.3)
(21.9)
Effect of Exchange Rate Changes on Cash,
Cash Equivalents and Restricted Cash
1.3
(0.6)
Net Decrease in Cash, Cash Equivalents and
Restricted Cash
(30.7)
(4.6)
Cash, Cash Equivalents and Restricted Cash
at Beginning of Period
86.1
59.0
Cash, Cash Equivalents and Restricted Cash
at End of Period
$
55.4
$
54.4
TENNANT COMPANY
SUPPLEMENTAL NON-GAAP FINANCIAL TABLE (In millions, except
per share data)
Three Months Ended
Six Months Ended
June 30
June 30
2019
2018
2019
2018
Gross Profit - as reported
$
120.8
$
117.2
$
229.0
$
226.3
Gross Margin - as reported
40.3 %
40.1 %
40.7 %
40.1 %
Adjustments:
Discontinuation of Product Lines
2.4
—
2.4
—
Inventory Step-Up
0.9
—
0.9
—
Gross Profit - as adjusted
$
124.1
$
117.2
$
232.3
$
226.3
Gross Margin - as adjusted
41.4 %
40.1 %
41.3 %
40.1 %
Selling and Administrative Expense - as
reported
$
92.5
$
90.3
$
182.7
$
181.0
Selling and Administrative Expense as a
percent of Net Sales - as reported
30.9 %
30.9 %
32.5 %
32.0 %
Adjustments:
Acquisition and Integration Costs (S&A
Expense)
(0.8)
(2.8)
(1.4)
(3.8)
Professional Services
—
(0.3)
(0.1)
(1.5)
Restructuring Charge
—
—
(4.3)
—
Note Receivable Write-down
(2.7)
—
(2.7)
—
Acquisition Contingent Consideration
Adjustment
(2.0)
—
(2.0)
—
Selling and Administrative Expense - as
adjusted
$
87.0
$
87.2
$
172.2
$
175.7
Selling and Administrative Expense as a
percent of Net Sales - as adjusted
29.0 %
29.8 %
30.6 %
31.1 %
Profit from Operations - as reported
$
19.9
$
19.0
$
30.7
$
29.4
Operating Margin - as reported
6.6 %
6.5 %
5.5 %
5.2 %
Adjustments:
Discontinuation of Product Lines
2.4
—
2.4
—
Inventory Step-Up
0.9
—
0.9
—
Acquisition and Integration Costs (S&A
Expense)
0.8
2.8
1.4
3.8
Professional Services
—
0.3
0.1
1.5
Restructuring Charge
—
—
4.3
—
Note Receivable Write-down
2.7
—
2.7
—
Acquisition Contingent Consideration
Adjustment
2.0
—
2.0
—
Profit from Operations - as adjusted
$
28.7
$
22.1
$
44.5
$
34.7
Operating Margin - as adjusted
9.6 %
7.6 %
7.9 %
6.1 %
Profit Before Income Taxes - as
reported
$
16.6
$
13.1
$
23.2
$
17.5
Adjustments:
Discontinuation of Product Lines
2.4
—
2.4
—
Inventory Step-Up
0.9
—
0.9
—
Acquisition and Integration Costs (S&A
Expense)
0.8
2.8
1.4
3.8
Acquisition and Integration Costs (Other
Income, Net)
(1.8)
—
(1.8)
—
Professional Services
—
0.3
0.1
1.5
Restructuring Charge
—
—
4.3
—
Note Receivable Write-down
2.7
—
2.7
—
Acquisition Contingent Consideration
Adjustment
2.0
—
2.0
—
Profit Before Income Taxes - as
adjusted
$
23.6
$
16.2
$
35.2
$
22.8
TENNANT COMPANY
SUPPLEMENTAL NON-GAAP FINANCIAL
TABLE
(In millions, except per share data)
Three Months Ended
Six Months
June 30
June 30
2019
2018
2019
2018
Income Tax Expense - as reported
$
1.8
$
0.4
$
3.0
$
1.4
Adjustments:
Discontinuation of Product Lines(1)
0.6
—
0.6
—
Inventory Step-Up(1)
0.2
—
0.2
—
Acquisition and Integration Costs (S&A
Expense)(1)
0.2
0.6
0.3
0.9
Acquisition and Integration Costs (Other
Income, Net)(1)
—
—
—
—
Professional Services(1)
—
0.1
—
0.4
Restructuring Charge(1)
—
—
1.2
—
Note Receivable Write-down(1)
—
—
—
—
Acquisition Contingent Consideration
Adjustment(1)
—
—
—
—
Income Tax Expense - as adjusted
$
2.8
$
1.1
$
5.3
$
2.7
Net Earnings Attributable to Tennant
Company - as reported
$
14.8
$
12.7
$
20.2
$
16.0
Adjustments:
Discontinuation of Product Lines
1.8
—
1.8
—
Inventory Step-Up
0.7
—
0.7
—
Acquisition and Integration Costs (S&A
Expense)
0.6
2.2
1.1
2.9
Acquisition and Integration Costs (Other
Income, Net)
(1.8)
—
(1.8)
—
Professional Services
—
0.2
0.1
1.2
Restructuring Charge
—
—
3.1
—
Note Receivable Write-down
2.7
—
2.7
—
Acquisition Contingent Consideration
Adjustment
2.0
—
2.0
—
Net Earnings Attributable to Tennant
Company - as adjusted
$
20.8
$
15.1
$
29.9
$
20.1
Net Earnings Attributable to Tennant
Company per Share - as reported:
Diluted
$
0.81
$
0.69
$
1.10
$
0.88
Adjustments:
Discontinuation of Product Lines
0.10
—
0.10
—
Inventory Step-Up
0.04
—
0.04
—
Acquisition and Integration Costs (S&A
Expense)
0.02
0.12
0.06
0.16
Acquisition and Integration Costs (Other
Income, Net)
(0.10)
—
(0.10)
—
Professional Services
—
0.01
—
0.06
Restructuring Charge
—
—
0.17
—
Note Receivable Write-down
0.15
—
0.15
—
Acquisition Contingent Consideration
Adjustment
0.11
—
0.11
—
Net Earnings Attributable to Tennant
Company per Share - as adjusted
$
1.13
$
0.82
$
1.63
$
1.10
(1) In determining the tax impact, we
applied the statutory rate in effect for each jurisdiction where
expenses were incurred and deductible for tax purposes.
TENNANT COMPANY
SUPPLEMENTAL NON-GAAP FINANCIAL
TABLE
(In millions, except per share data)
Three Months Ended
Six Months Ended
June 30
June 30
2019
2018
2019
2018
Net Earnings Including Noncontrolling
Interest - as reported
$
14.8
$
12.7
$
20.2
$
16.1
Adjustments:
Interest Income
(0.9)
(0.9)
(1.7)
(1.7)
Interest Expense
5.4
6.0
10.5
11.8
Income Tax Expense
1.8
0.4
3.0
1.4
Depreciation Expense
7.9
8.6
15.9
16.3
Amortization Expense
5.8
5.8
11.5
11.7
Discontinuation of Product Lines
2.4
—
2.4
—
Inventory Step-Up
0.9
—
0.9
—
Acquisition and Integration Costs (S&A
Expense)
0.8
2.8
1.4
3.8
Acquisition and Integration Costs (Other
Income, Net)
(1.8)
—
(1.8)
—
Professional Services
—
0.3
0.1
1.5
Restructuring Charge
—
—
4.3
—
Note Receivable Write-down
2.7
—
2.7
—
Acquisition Contingent Consideration
Adjustment
2.0
—
2.0
—
Earnings Before Interest, Taxes,
Depreciation & Amortization - as adjusted
$
41.8
$
35.7
$
71.4
$
60.9
EBITDA Margin - as adjusted
13.9 %
12.2 %
12.7 %
10.8 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190731005221/en/
INVESTOR CONTACT: Keith A. Woodward Senior Vice
President and Chief Financial Officer keith.woodward@tennantco.com
763-540-1205
William Prate Director, Investor Relations
william.prate@tennantco.com 763-540-1212
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