Net sales in quarter increased 9.5 percent, or 10.5 percent
organically;
Company posts record sales for a first
quarter of $184.0 million;
First quarter diluted EPS
up 6.9 percent to $0.31;
Company maintains 2014
full year guidance range
MINNEAPOLIS--(BUSINESS WIRE)--Apr. 21, 2014--
Tennant Company (NYSE:TNC), a world leader in designing, manufacturing
and marketing of solutions that help create a cleaner, safer, healthier
world, today reported net earnings of $5.8 million, or $0.31 per diluted
share, on net sales of $184.0 million for the first quarter ended March
31, 2014. In the 2013 first quarter, Tennant reported net earnings of
$5.1 million, or $0.27 per diluted share, on net sales of $168.1
million. The 2013 first quarter included two special items: a
restructuring charge of $0.05 per diluted share to rightsize the
European operations and a $0.03 per diluted share tax benefit related to
the retroactive reinstatement of the 2012 U.S. Federal R&D Tax Credit.
Excluding these special items, adjusted 2013 first quarter earnings
totaled $5.5 million, or $0.29 per diluted share. (See the Supplemental
Non-GAAP Financial Table.)
Commented
Chris Killingstad
, Tennant Company's president and chief
executive officer: “We are pleased to report record revenues for a first
quarter and double-digit organic growth, with higher sales across all of
our geographies. The implementation of our growth strategy is off to a
strong start in 2014, as we strive to reach $1 billion in revenues by
2017. All of our key drivers to reach this target performed well in the
first quarter, and we anticipate continued sales gains and improved
profitability as the year progresses.”
First Quarter Operating Review
The company's 2014 first quarter consolidated net sales of $184.0
million rose 9.5 percent compared to the prior year quarter. Unfavorable
foreign currency exchange reduced consolidated net sales by
approximately 1 percent. Organic net sales, which exclude the impact of
foreign currency exchange (and acquisitions when applicable), increased
approximately 10.5 percent.
Contributing to 2014 first quarter results was continued demand for
newly introduced products, especially the T12 rider scrubber, which is
the first new product in Tennant’s redesigned modular large equipment
portfolio, as well as strong sales of industrial equipment and sales
through distribution and to strategic accounts. Sales of scrubbers
equipped with ec-H2O™ technology grew 11.7 percent compared to the first
quarter of 2013.
Geographically, sales increased 8.1 percent in Tennant’s largest region,
the Americas, or 10.1 percent organically, excluding an unfavorable
foreign currency exchange impact of about 2.0 percent. Sales in Europe,
Middle East and Africa (EMEA) were up 9.9 percent, or 5.4 percent
organically, excluding a favorable foreign currency exchange impact of
about 4.5 percent. EMEA results benefited from higher sales through
distribution, as well as increased sales of Green Machines™ outdoor
sweepers. Sales in the Asia Pacific region (APAC) increased 18.3
percent, rising approximately 25.8 percent organically, excluding an
unfavorable foreign currency exchange impact of about 7.5 percent. The
APAC organic sales gain was broad based and included continued strong
sales performance in China, which had approximately 50 percent organic
sales growth in the 2014 first quarter.
Tennant's gross margin in the 2014 first quarter was 41.8 percent
compared to 43.1 percent in the prior year quarter. Gross margin in the
2014 first quarter was impacted by the mix of products sold, and also
the selling channel mix, with strong sales through distribution and
sales to strategic accounts. The company anticipates gross margin for
the 2014 full year will be in its target range of 43 percent to 44
percent due to expected benefits from recently enacted selling price
increases.
Research and development (R&D) expense for the 2014 first quarter
totaled $7.5 million, or 4.1 percent of sales, compared to $7.5 million,
or 4.5 percent of sales, in the prior year quarter. The company
continued to invest in developing innovative new products for its
traditional core business, as well as in its Orbio Technologies Group,
which is focused on advancing a suite of sustainable cleaning
technologies.
Selling and administrative (S&A) expense in the 2014 first quarter
totaled $60.2 million, or 32.7 percent of sales. S&A in the 2013 first
quarter was $58.1 million, or 34.6 percent of sales, and $56.7 million
as adjusted, or 33.7 percent of sales as adjusted. Tennant continued to
gain leverage in S&A spending due to cost controls and operating
efficiencies.
Tennant's 2014 first quarter operating profit was $9.2 million, or 5.0
percent of sales, versus an operating profit of $6.9 million, or 4.1
percent of sales, in the year ago quarter. As adjusted, Tennant’s
operating profit in the prior year quarter was $8.3 million, or 5.0
percent of sales.
Cash from operations, which is typically negative in the first quarter
due to the seasonality in the business, totaled a negative $3.9 million
compared to a positive $7.3 million in the year earlier quarter. The
company's total debt was $28.2 million, down from $31.8 million at the
end of the prior year quarter. Cash on the balance sheet rose to $63.4
million, up from $49.8 million a year ago. Reflecting Tennant’s ongoing
commitment to enhancing shareholder return, the company paid cash
dividends of $0.18 per share in the 2014 first quarter and repurchased
58,158 shares at a cost of $3.6 million.
New Product and Technology Pipeline
Tennant Company continues to have the most robust new product pipeline
in its history. The company plans to launch more than 63 new products
and technologies between 2014 and 2016, on top of 37 new products that
were introduced from 2012 to 2013.
“The introduction of new products and technologies is important to our
revenue growth. We are encouraged by customers’ responses to our new and
expanded product lines, and we are excited to add a variety of new core
equipment models and sustainable technologies to our portfolio this year
and into the future,” said Killingstad.
In 2014, Tennant is launching nine products in the first half of the
year, followed by seven new products in the second half. Among the 2014
first quarter new product highlights, Tennant introduced a line of
walk-behind burnishers. These new core equipment offerings are
engineered to improve the customers’ cleaning performance and operator
safety, lower operating costs and reduce environmental impact.
In April, the Orbio Technologies Group from Tennant Company introduced
the Orbio® os3, which uses Split Stream™ Technology to
deliver on-site generation of an anti-microbial solution, as well as an
effective multi-surface cleaner, for use in a wide variety of customer
segments. The Orbio os3 is small enough to fit inside most janitorial
closets.
Tennant remains committed to being an industry innovation leader and
aims to set the standard for sustainable cleaning around the world.
Tennant Company Targets $1 Billion in Revenues
By 2017
Earlier this year, Tennant announced its growth strategy to reach sales
of $1 billion by 2017. The plan reflects the fact that over the past
five years, Tennant has been building a scalable business model capable
of delivering improved operational efficiency and profitability. To take
full advantage of that effort, the company has shifted its focus to
organic revenue growth to increase market share and enhance the
organization’s ability to reach a 12 percent or above operating profit
margin.
Stated Killingstad, “We have identified opportunities to increase our
market coverage and customer penetration in underserved markets where
our value proposition is compelling. The robust organic sales gains we
saw in the first quarter are an early indication that we are on the
right path. We have been investing in additional direct sales,
distribution and marketing capabilities to accelerate growth.”
Tennant plans to meet its objectives through a strong new product
pipeline in both the core business and in the Orbio Technologies Group,
continued gains in emerging markets, growth in Europe, focus on
strategic accounts and an enhanced go-to-market strategy designed to
significantly expand its global market coverage and customer base.
Business Outlook
Based on its 2014 first quarter results and expectations of future
performance, Tennant Company continues to estimate 2014 full year net
sales in the range of $780 million to $800 million, up 4 percent to 6
percent, and earnings in the range of $2.50 to $2.80 per diluted share,
an increase of 11 percent to 24 percent, compared to 2013, as adjusted.
The company anticipates that its 2014 earnings will be stronger in the
second half of the year, as its growth investments gain further traction
and generate incremental revenues and profits. For the 2013 full year,
adjusted diluted earnings per share totaled $2.26 on net sales of $752
million. (See the Supplemental Non-GAAP Financial Table.)
The company's 2014 annual financial outlook includes the following
expectations:
-
Modest economic improvement in North America and Europe, and steady
growth in emerging markets;
-
Unfavorable foreign currency impact on sales for the full year of
approximately 1 percent;
-
Gross margin performance in the range of 43 percent to 44 percent;
-
R&D expense of approximately 4 percent of sales, as the company
continues to invest in its core products and in water-based cleaning
technologies; and
-
Capital expenditures in the range of $20 million to $22 million.
“We will continue to focus on growth, building on an excellent start to
2014 with the first quarter results,” said Killingstad. “At the same
time, we are committed to operational excellence and strong cost
controls, in order to deliver improved profitability.”
Conference Call
Tennant will host a conference call to discuss the 2014 first quarter
results today, April 21, 2014, at 10 a.m. Central Time (11 a.m. Eastern
Time). The conference call will be available via webcast on the investor
portion of Tennant's website. To listen to the call live, go to www.tennantco.com
and click on Company, Investors. A taped replay of the conference call
will be available at www.tennantco.com
for approximately two weeks after the call.
Company Profile
Minneapolis-based Tennant Company (TNC) is
a world leader in designing, manufacturing and marketing solutions that
help create a cleaner, safer, healthier world. Its products include
equipment for maintaining surfaces in industrial, commercial and outdoor
environments; chemical-free and other sustainable cleaning technologies;
and coatings for protecting, repairing and upgrading surfaces. Tennant's
global field service network is the most extensive in the industry.
Tennant has manufacturing operations in Minneapolis, Minn.; Holland,
Mich.; Louisville, Ky.; Uden, The Netherlands; the United Kingdom; São
Paulo, Brazil; and Shanghai, China; and sells products directly in 15
countries and through distributors in more than 80 countries. For more
information, visit www.tennantco.com.
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: geopolitical and economic
uncertainty throughout the world; the competition in our business; our
ability to attract and retain key personnel; our ability to successfully
upgrade, evolve and protect our information technology systems; our
ability to develop and commercialize new innovative products and
services; our ability to comply with laws and regulations; fluctuations
in the cost or availability of raw materials and purchased components;
unforeseen product liability claims or product quality issues; the
occurrence of a significant business interruption; the occurrence of
disruptions to our supply and delivery chains; 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. 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. For additional information about
factors that could materially affect Tennant's results, please see our
other Securities and Exchange Commission filings, including disclosures
under “Risk Factors.”
We do not undertake to update any forward-looking statement, and
investors are advised to consult any further disclosures by us on this
matter in our filings with the Securities and Exchange Commission and in
other written statements we make from time to time. 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 includes presentations 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. See the Supplemental Non-GAAP
Financial Table.
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
|
(In thousands, except shares and per share data)
|
|
|
Three Months Ended
|
|
|
|
March 31
|
|
|
|
2014
|
|
|
2013
|
Net Sales
|
|
|
$
|
183,979
|
|
|
|
$
|
168,092
|
|
Cost of Sales
|
|
|
|
107,062
|
|
|
|
|
95,569
|
|
Gross Profit
|
|
|
|
76,917
|
|
|
|
|
72,523
|
|
Gross Margin
|
|
|
|
41.8
|
%
|
|
|
|
43.1
|
%
|
Operating Expense:
|
|
|
|
|
|
|
Research and Development Expense
|
|
|
|
7,481
|
|
|
|
|
7,518
|
|
Selling and Administrative Expense
|
|
|
|
60,199
|
|
|
|
|
58,122
|
|
Total Operating Expense
|
|
|
|
67,680
|
|
|
|
|
65,640
|
|
Profit from Operations
|
|
|
|
9,237
|
|
|
|
|
6,883
|
|
Operating Margin
|
|
|
|
5.0
|
%
|
|
|
|
4.1
|
%
|
Other Income (Expense):
|
|
|
|
|
|
|
Interest Income
|
|
|
|
75
|
|
|
|
|
114
|
|
Interest Expense
|
|
|
|
(486
|
)
|
|
|
|
(467
|
)
|
Net Foreign Currency Transaction Losses
|
|
|
|
(208
|
)
|
|
|
|
(324
|
)
|
Other (Expense) Income, Net
|
|
|
|
(31
|
)
|
|
|
|
6
|
|
Total Other Expense, Net
|
|
|
|
(650
|
)
|
|
|
|
(671
|
)
|
|
|
|
|
|
|
|
Profit Before Income Taxes
|
|
|
|
8,587
|
|
|
|
|
6,212
|
|
Income Tax Expense
|
|
|
|
2,792
|
|
|
|
|
1,153
|
|
Net Earnings
|
|
|
$
|
5,795
|
|
|
|
$
|
5,059
|
|
|
|
|
|
|
|
|
Net Earnings per Share:
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.32
|
|
|
|
$
|
0.28
|
|
Diluted
|
|
|
$
|
0.31
|
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
18,318,260
|
|
|
|
|
18,343,933
|
|
Diluted
|
|
|
|
18,839,172
|
|
|
|
|
18,889,317
|
|
|
|
|
|
|
|
|
Cash Dividends Declared per Common Share
|
|
|
$
|
0.18
|
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHICAL NET SALES(1) (Unaudited)
|
|
|
|
|
(In thousands)
|
|
|
Three Months Ended
|
|
|
|
March 31
|
|
|
|
2014
|
|
|
2013
|
|
|
%
|
Americas
|
|
|
$
|
122,389
|
|
|
$
|
113,247
|
|
|
8.1
|
Europe, Middle East and Africa
|
|
|
|
43,064
|
|
|
|
39,191
|
|
|
9.9
|
Asia Pacific
|
|
|
|
18,526
|
|
|
|
15,654
|
|
|
18.3
|
Total
|
|
|
$
|
183,979
|
|
|
$
|
168,092
|
|
|
9.5
|
(1) Net of intercompany sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(In thousands)
|
|
|
March 31,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
$
|
63,400
|
|
|
|
$
|
80,984
|
|
|
|
$
|
49,755
|
|
Restricted Cash
|
|
|
|
411
|
|
|
|
|
393
|
|
|
|
|
188
|
|
Net Receivables
|
|
|
|
143,957
|
|
|
|
|
140,182
|
|
|
|
|
130,427
|
|
Inventories
|
|
|
|
73,838
|
|
|
|
|
66,906
|
|
|
|
|
64,126
|
|
Prepaid Expenses
|
|
|
|
14,231
|
|
|
|
|
11,426
|
|
|
|
|
13,177
|
|
Deferred Income Taxes, Current Portion
|
|
|
|
9,603
|
|
|
|
|
13,723
|
|
|
|
|
10,294
|
|
Other Current Assets
|
|
|
|
1,678
|
|
|
|
|
1,682
|
|
|
|
|
253
|
|
Total Current Assets
|
|
|
|
307,118
|
|
|
|
|
315,296
|
|
|
|
|
268,220
|
|
Property, Plant and Equipment
|
|
|
|
305,972
|
|
|
|
|
300,906
|
|
|
|
|
294,884
|
|
Accumulated Depreciation
|
|
|
|
(222,104
|
)
|
|
|
|
(217,430
|
)
|
|
|
|
(210,437
|
)
|
Property, Plant and Equipment, Net
|
|
|
|
83,868
|
|
|
|
|
83,476
|
|
|
|
|
84,447
|
|
Deferred Income Taxes, Long-Term Portion
|
|
|
|
2,760
|
|
|
|
|
2,423
|
|
|
|
|
10,352
|
|
Goodwill
|
|
|
|
19,161
|
|
|
|
|
18,929
|
|
|
|
|
19,798
|
|
Intangible Assets, Net
|
|
|
|
18,506
|
|
|
|
|
19,028
|
|
|
|
|
19,929
|
|
Other Assets
|
|
|
|
17,056
|
|
|
|
|
17,154
|
|
|
|
|
9,503
|
|
Total Assets
|
|
|
$
|
448,469
|
|
|
|
$
|
456,306
|
|
|
|
$
|
412,249
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Short-Term Borrowings and Current Portion of Long-Term Debt
|
|
|
$
|
2,236
|
|
|
|
$
|
3,803
|
|
|
|
$
|
1,567
|
|
Accounts Payable
|
|
|
|
54,409
|
|
|
|
|
53,079
|
|
|
|
|
51,580
|
|
Employee Compensation and Benefits
|
|
|
|
25,300
|
|
|
|
|
29,756
|
|
|
|
|
24,999
|
|
Income Taxes Payable
|
|
|
|
808
|
|
|
|
|
812
|
|
|
|
|
1,019
|
|
Other Current Liabilities
|
|
|
|
41,390
|
|
|
|
|
44,076
|
|
|
|
|
36,876
|
|
Total Current Liabilities
|
|
|
|
124,143
|
|
|
|
|
131,526
|
|
|
|
|
116,041
|
|
Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
|
|
26,000
|
|
|
|
|
28,000
|
|
|
|
|
30,200
|
|
Employee-Related Benefits
|
|
|
|
24,925
|
|
|
|
|
25,173
|
|
|
|
|
25,784
|
|
Deferred Income Taxes, Long-Term Portion
|
|
|
|
2,900
|
|
|
|
|
2,870
|
|
|
|
|
3,164
|
|
Other Liabilities
|
|
|
|
5,069
|
|
|
|
|
4,891
|
|
|
|
|
4,577
|
|
Total Long-Term Liabilities
|
|
|
|
58,894
|
|
|
|
|
60,934
|
|
|
|
|
63,725
|
|
Total Liabilities
|
|
|
|
183,037
|
|
|
|
|
192,460
|
|
|
|
|
179,766
|
|
Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
Preferred Stock
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Common Stock
|
|
|
|
6,919
|
|
|
|
|
6,934
|
|
|
|
|
6,911
|
|
Additional Paid-In Capital
|
|
|
|
30,172
|
|
|
|
|
31,956
|
|
|
|
|
23,928
|
|
Retained Earnings
|
|
|
|
252,233
|
|
|
|
|
249,927
|
|
|
|
|
233,134
|
|
Accumulated Other Comprehensive Loss
|
|
|
|
(23,892
|
)
|
|
|
|
(24,971
|
)
|
|
|
|
(31,490
|
)
|
Total Shareholders’ Equity
|
|
|
|
265,432
|
|
|
|
|
263,846
|
|
|
|
|
232,483
|
|
Total Liabilities and Shareholders’ Equity
|
|
|
$
|
448,469
|
|
|
|
$
|
456,306
|
|
|
|
$
|
412,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(In thousands)
|
|
|
Three Months Ended
|
|
|
|
March 31
|
|
|
|
2014
|
|
|
2013
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net Earnings
|
|
|
$
|
5,795
|
|
|
|
$
|
5,059
|
|
Adjustments to reconcile Net Earnings to Net Cash (Used by) Provided
by Operating Activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
|
4,427
|
|
|
|
|
4,492
|
|
Amortization
|
|
|
|
611
|
|
|
|
|
644
|
|
Deferred Income Taxes
|
|
|
|
3,874
|
|
|
|
|
1,537
|
|
Share-Based Compensation Expense
|
|
|
|
1,540
|
|
|
|
|
1,707
|
|
Allowance for Doubtful Accounts and Returns
|
|
|
|
429
|
|
|
|
|
313
|
|
Other, Net
|
|
|
|
(9
|
)
|
|
|
|
5
|
|
Changes in Operating Assets and Liabilities:
|
|
|
|
|
|
|
Receivables
|
|
|
|
(4,123
|
)
|
|
|
|
5,939
|
|
Inventories
|
|
|
|
(7,292
|
)
|
|
|
|
(7,097
|
)
|
Accounts Payable
|
|
|
|
1,648
|
|
|
|
|
5,816
|
|
Employee Compensation and Benefits
|
|
|
|
(4,707
|
)
|
|
|
|
(8,736
|
)
|
Other Current Liabilities
|
|
|
|
(3,370
|
)
|
|
|
|
(469
|
)
|
Income Taxes
|
|
|
|
(2,310
|
)
|
|
|
|
(1,847
|
)
|
Other Assets and Liabilities
|
|
|
|
(426
|
)
|
|
|
|
(100
|
)
|
Net Cash (Used by) Provided by Operating Activities
|
|
|
|
(3,913
|
)
|
|
|
|
7,263
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchases of Property, Plant and Equipment
|
|
|
|
(3,511
|
)
|
|
|
|
(4,017
|
)
|
Proceeds from Disposals of Property, Plant and Equipment
|
|
|
|
40
|
|
|
|
|
39
|
|
Proceeds from Sale of Business
|
|
|
|
—
|
|
|
|
|
699
|
|
Increase in Restricted Cash
|
|
|
|
(2
|
)
|
|
|
|
—
|
|
Net Cash Used for Investing Activities
|
|
|
|
(3,473
|
)
|
|
|
|
(3,279
|
)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Payments of Short-Term Debt
|
|
|
|
(1,500
|
)
|
|
|
|
—
|
|
Payments of Long-Term Debt
|
|
|
|
(2,006
|
)
|
|
|
|
(428
|
)
|
Purchases of Common Stock
|
|
|
|
(3,556
|
)
|
|
|
|
(7,515
|
)
|
Proceeds from Issuances of Common Stock
|
|
|
|
226
|
|
|
|
|
2,795
|
|
Tax Benefit on Stock Plans
|
|
|
|
169
|
|
|
|
|
708
|
|
Dividends Paid
|
|
|
|
(3,490
|
)
|
|
|
|
(3,314
|
)
|
Net Cash Used for Financing Activities
|
|
|
|
(10,157
|
)
|
|
|
|
(7,754
|
)
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
(41
|
)
|
|
|
|
(415
|
)
|
|
|
|
|
|
|
|
Net Decrease in Cash and Cash Equivalents
|
|
|
|
(17,584
|
)
|
|
|
|
(4,185
|
)
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Year
|
|
|
|
80,984
|
|
|
|
|
53,940
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Year
|
|
|
$
|
63,400
|
|
|
|
$
|
49,755
|
|
|
|
|
|
|
|
|
|
TENNANT COMPANY
|
SUPPLEMENTAL NON-GAAP FINANCIAL TABLE
|
|
(In thousands, except per share data)
|
|
|
Three Months Ended
|
|
|
|
March 31
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
|
183,979
|
|
|
|
$
|
168,092
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
|
107,062
|
|
|
|
|
95,569
|
|
Gross Profit - as reported
|
|
|
|
76,917
|
|
|
|
|
72,523
|
|
Gross Margin
|
|
|
|
41.8
|
%
|
|
|
|
43.1
|
%
|
|
|
|
|
|
|
|
Operating Expense:
|
|
|
|
|
|
|
Research and Development Expense
|
|
|
|
7,481
|
|
|
|
|
7,518
|
|
Selling and Administrative Expense
|
|
|
|
60,199
|
|
|
|
|
58,122
|
|
Total Operating Expense
|
|
|
|
67,680
|
|
|
|
|
65,640
|
|
|
|
|
|
|
|
|
Profit from Operations - as reported
|
|
|
$
|
9,237
|
|
|
|
$
|
6,883
|
|
Operating Margin - as reported
|
|
|
|
5.0
|
%
|
|
|
|
4.1
|
%
|
Adjustments:
|
|
|
|
|
|
|
Restructuring Charge
|
|
|
|
—
|
|
|
|
|
1,440
|
|
Profit from Operations - as adjusted
|
|
|
$
|
9,237
|
|
|
|
$
|
8,323
|
|
Operating Margin - as adjusted
|
|
|
|
5.0
|
%
|
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
Interest Income
|
|
|
|
75
|
|
|
|
|
114
|
|
Interest Expense
|
|
|
|
(486
|
)
|
|
|
|
(467
|
)
|
Net Foreign Currency Transaction Losses
|
|
|
|
(208
|
)
|
|
|
|
(324
|
)
|
Other (Expense) Income, Net
|
|
|
|
(31
|
)
|
|
|
|
6
|
|
Total Other Expense, Net
|
|
|
|
(650
|
)
|
|
|
|
(671
|
)
|
|
|
|
|
|
|
|
Profit Before Income Taxes - as reported
|
|
|
$
|
8,587
|
|
|
|
$
|
6,212
|
|
Adjustments:
|
|
|
|
|
|
|
Restructuring Charge
|
|
|
|
—
|
|
|
|
|
1,440
|
|
Profit Before Income Taxes - as adjusted
|
|
|
$
|
8,587
|
|
|
|
$
|
7,652
|
|
|
|
|
|
|
|
|
Income Tax Expense - as reported
|
|
|
$
|
2,792
|
|
|
|
$
|
1,153
|
|
Adjustments:
|
|
|
|
|
|
|
Restructuring Charge
|
|
|
|
—
|
|
|
|
|
417
|
|
Discrete Tax Item Related to 2012 R&D Tax Credit
|
|
|
|
—
|
|
|
|
|
582
|
|
Income Tax Expense - as adjusted
|
|
|
$
|
2,792
|
|
|
|
$
|
2,152
|
|
|
|
|
|
|
|
|
|
TENNANT COMPANY
|
SUPPLEMENTAL NON-GAAP FINANCIAL TABLE
|
|
(In thousands, except per share data)
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
Net Earnings - as reported
|
|
|
|
$
|
5,795
|
|
|
$
|
5,059
|
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring Charge
|
|
|
|
|
—
|
|
|
|
1,023
|
|
Discrete Tax Item Related to 2012 R&D Tax Credit
|
|
|
|
|
—
|
|
|
|
(582
|
)
|
Net Earnings - as adjusted
|
|
|
|
$
|
5,795
|
|
|
$
|
5,500
|
|
|
|
|
|
|
|
|
|
Net Earnings per Share - as reported:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.32
|
|
|
$
|
0.28
|
|
Diluted
|
|
|
|
$
|
0.31
|
|
|
$
|
0.27
|
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring Charge
|
|
|
|
|
—
|
|
|
|
0.05
|
|
Discrete Tax Item Related to 2012 R&D Tax Credit
|
|
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
Diluted Net Earnings per Share - as adjusted
|
|
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
Full
|
|
|
|
Year
|
|
|
|
2013
|
|
|
|
|
Diluted Earnings per Share - as reported
|
|
|
$
|
2.14
|
|
Adjustments:
|
|
|
|
Restructuring Charges
|
|
|
|
0.15
|
|
Discrete Tax Item Related to 2012 R&D Tax Credit
|
|
|
|
(0.03
|
)
|
|
|
|
|
Diluted Earnings per Share - as adjusted
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|

Source: Tennant Company
Tennant Company
Investor Contact:
Tom Paulson,
763-540-1204
Senior Vice President and Chief Financial Officer
or
Media
Contact:
Kathryn Lovik, 763-540-1212
Director, Communications
|
|