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Sep 30, 2020
Tennant Q3 2020 Earnings Report
Reported a decrease in net sales due to the global business slowdown resulting from the coronavirus pandemic but adjusted EBITDA increased.
Key Takeaways
Tennant Company reported a decrease in net sales of 7.1 percent organically, primarily due to the global business slowdown resulting from the coronavirus pandemic. Net income was $11.7 million, or $0.63 per diluted share. Adjusted diluted earnings per share were $0.90. Adjusted EBITDA was $32.6 million, or 12.4 percent of sales.
Net sales of $261.9 million, a decrease of 7.1 percent organically
GAAP net income of $11.7 million, or $0.63 diluted earnings per share
Adjusted diluted EPS of $0.90 per share
Adjusted EBITDA of $32.6 million, up 120 basis points to 12.4 percent of sales
Revenue by Geographic Location
Forward Guidance
Tennant provides guidance for 2020 as follows: Net sales of $995.0 to $1,005.0 million; GAAP earnings in the range of $2.00 to $2.20 per diluted share; Adjusted EPS in the range of $2.80 to $3.00 per diluted share; Adjusted EBITDA in the range of $116 to $121 million; Capital expenditures of approximately $35 million; and An effective tax rate of approximately 17 percent.
Positive Outlook
- Net sales of $995.0 to $1,005.0 million
- GAAP earnings in the range of $2.00 to $2.20 per diluted share
- Adjusted EPS in the range of $2.80 to $3.00 per diluted share
- Adjusted EBITDA in the range of $116 to $121 million
- Capital expenditures of approximately $35 million
Challenges Ahead
- Uncertainty surrounding the impacts and duration of the COVID-19 pandemic
- Fluctuations in the cost, quality or availability of raw materials and purchased components
- Geopolitical and economic uncertainty throughout the world
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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