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Sep 30, 2022
Tennant Q3 2022 Earnings Report
Reported third quarter results with net income of $15.6 million and organic sales growth of 1.7%.
Key Takeaways
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.
Revenue by Geographic Location
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
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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