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Mar 31, 2020
Tennant Q1 2020 Earnings Report
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.
Key Takeaways
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.
Revenue by Geographic Location
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.
Positive Outlook
- 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.
Challenges Ahead
- Uncertainty surrounding the impacts and duration of the COVID-19 pandemic.
- Temporary plant shutdowns.
- Slowdown in sales to some end markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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