Company posts net sales of $216.8 million;
Organic net sales rose 2.4 percent;
Second quarter diluted EPS totaled $0.85 versus $0.79 a year ago;
Company narrows 2016 full year sales guidance, raises EPS guidance
range
MINNEAPOLIS--(BUSINESS WIRE)--
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 $15.3 million, or $0.85 per
diluted share, on net sales of $216.8 million for the second quarter
ended June 30, 2016. On a “Constant Currency” basis (assuming no change
in foreign exchange rates from the prior year), Tennant would have
reported 2016 second quarter net earnings per diluted share of $0.89, up
12.7 percent compared to the prior year quarter. In the 2015 second
quarter, Tennant reported net earnings of $14.8 million, or $0.79 per
diluted share, on net sales of $215.4 million.
Commented Chris Killingstad, Tennant Company's president and chief
executive officer: “Tennant returned to modest growth in the second
quarter, primarily led by sales to strategic accounts in our Americas
and EMEA regions. In the Americas region, we posted record second
quarter sales. In EMEA, we were pleased to see the strongest level of
organic sales growth in a quarter since the last half of 2014. The
company’s sales and earnings gains over the prior year quarter reflect
our ongoing focus on executing our growth strategies and leveraging our
operating efficiency.”
Tennant continues to see positive performance from its growth strategy.
The company plans to reach its $1 billion organic sales goal through a
strong new product and technology pipeline, continued gains in emerging
markets, a return to growth in Europe, a focus on strategic accounts and
an enhanced go-to-market strategy designed to significantly expand
Tennant’s worldwide market coverage and customer base.
Second Quarter Operating Review
The company's 2016 second quarter consolidated net sales of $216.8
million rose 0.7 percent compared to the year ago quarter. Unfavorable
foreign currency exchange lowered consolidated net sales by
approximately 1.0 percent, and the impact from the divestiture of the
Green Machines™ outdoor city cleaning line reduced consolidated net
sales by 0.7 percent. Organic net sales, which exclude the impact of
foreign currency exchange and the divestiture, were up approximately 2.4
percent versus the prior year period.
Contributing to the 2016 second quarter results were increased sales to
strategic accounts in Tennant’s largest region, the Americas, and in the
Europe, Middle East and Africa (EMEA) region. Sales of scrubbers
equipped with ec-H2OTM technology rose 2 percent to
approximately $40.4 million in the 2016 second quarter.
Geographically, sales were up approximately 1.5 percent in the Americas,
or grew 2.5 percent organically, excluding an unfavorable foreign
currency exchange of approximately 1.0 percent. Sales in EMEA increased
1.9 percent and were up 6.3 percent organically, excluding the impact of
the Green Machines divestiture of 4.4 percent and a de minimis
unfavorable foreign currency exchange impact. Sales in the Asia Pacific
(APAC) region declined 8.2 percent and were down approximately 7.2
percent organically, excluding an unfavorable foreign currency exchange
impact of about 1.0 percent. Sales in APAC decreased chiefly due to a
sluggish economy in the region.
Tennant's gross margin in the 2016 second quarter was 43.9 percent
compared to 44.1 percent in the prior year quarter. Gross margin in the
2016 second quarter declined 20 basis points due primarily to the impact
from foreign currency exchange. On a “Constant Currency” basis, second
quarter gross margin would have been 44.1 percent. The company
anticipates gross margin for the 2016 full year will be in its target
range of 43 percent to 44 percent.
Research and development (R&D) expense for the 2016 second quarter was
flat with the prior year quarter and totaled $8.4 million, or 3.9
percent of sales. The company continued to invest in developing a robust
pipeline of innovative new products and technologies.
Selling and administrative (S&A) expense in the 2016 second quarter
totaled $64.3 million, or 29.6 percent of sales. Tennant continued to
invest in a digital platform to build and support the company’s
e-Business capabilities, which is anticipated to meet customers’
changing needs and enhance long-term sales growth. S&A in the 2015
second quarter was $64.0 million, or 29.7 percent of sales.
Tennant's 2016 second quarter operating profit was $22.6 million, or
10.4 percent of sales, versus an operating profit of $22.6 million, or
10.5 percent of sales, in the year ago quarter. Due to the continued
strength of the U.S. dollar in the 2016 second quarter, foreign currency
exchange rates reduced operating profit by approximately $1.1 million.
Tennant’s operating profit margin would have been 10.8 percent on a
“Constant Currency” basis, excluding the impact of unfavorable foreign
currency exchange. Tennant remains committed to the goal of a 12 percent
or above operating profit margin.
New Product and Technology Pipeline
Tennant Company continues to execute against the strongest new product
pipeline in its history. The company is on track to introduce 14 new
products, mostly industrial machines, in 2016. Tennant is committed to
being an industry innovation leader and raising the standard for
sustainable cleaning around the world.
In late June, Tennant launched the next generation of three large,
high-performance cleaning machines for the industrial market. These
include the M20 and M30 Integrated Sweeper-Scrubbers, and the T20
Heavy-Duty Industrial Rider Scrubber. With these new models, the company
is taking its most established industrial products and relaunching them
with Tennant’s latest digital innovations and technology, such as the
Pro-Panel™ intuitive touch-screen and modular steering wheel, among
other new features.
In late March, Tennant unveiled the M17 Battery-Powered
Sweeper-Scrubber, Tennant’s largest battery-powered sweeper-scrubber.
This versatile machine allows operators to choose between dry sweeping,
scrubbing, or simultaneously sweeping and scrubbing. The fume-free
sweeper-scrubber has been engineered to be easy to operate and maintain,
while providing big productivity gains through industry leading
innovations. The machine also features Tennant’s Pro-Panel touch-screen
interface.
Commented Killingstad: “Tennant is committed to developing new products
and technologies that fuel our revenue growth. We also aim to create new
growth avenues, through our advanced product development efforts. We are
no longer just trying to improve cleaning performance. We are looking at
our customers’ needs holistically to address a broader array of customer
needs, such as managing labor costs, productivity and machine
maintenance information. We anticipate expanding our business through
telemetry – such as our new IRIS® Asset Manager – as well as
battery technology, water recycling and robotics. We are excited about
the impact of these innovations for Tennant’s future.”
2016 First Half Results
For the six months ended June 30, 2016, Tennant’s net earnings totaled
$19.8 million, or $1.10 per diluted share, on net sales of $396.7
million. In the prior year first six months, Tennant reported net
earnings of $19.8 million, or $1.06 per diluted share, on net sales of
$401.1 million. Unfavorable foreign currency exchange lowered
consolidated net sales in the first six months by approximately 1.5
percent, and the impact from the Green Machines divestiture reduced
consolidated net sales by 0.9 percent. Organic net sales, which exclude
the impact of foreign currency exchange and the divestiture, rose
approximately 1.3 percent versus the prior year period.
Year-to-date 2016 gross margin was 43.6 percent versus 43.2 percent in
the year earlier period. R&D expense in the 2016 first half was $16.3
million, or 4.1 percent of sales, compared to $16.1 million, or 4.0
percent of sales, in the prior year period. S&A Expense in the 2016
first half was $126.7 million, or 31.9 percent of sales, versus $126.2
million, or 31.4 percent of sales, in the first six months of 2015.
Operating profit in the 2016 first half was $29.7 million, or 7.5
percent of sales, compared to $30.8 million, or 7.7 percent of sales, in
the prior year first six months. Due to the strength of the U.S. dollar
in the 2016 first half, foreign currency exchange rates reduced
operating profit by approximately $2.1 million. Tennant’s operating
profit margin would have been 7.9 percent on a “Constant Currency”
basis, excluding the impact of unfavorable foreign currency exchange.
Cash from operations totaled $12.4 million in the 2016 first half, up
from $6.6 million in the year earlier period. The company's total debt
was $21.2 million, down from $24.6 million at the end of the prior year
quarter. Cash on the balance sheet totaled $27.9 million versus $67.6
million a year ago. Reflecting Tennant’s ongoing commitment to enhancing
shareholder return, the company paid cash dividends of $7.1 million in
the 2016 first half and repurchased 246,474 shares of common stock at a
cost of $12.8 million.
2016 Business Outlook
Killingstad stated: “Looking ahead, we will continue to face global
economic volatility which can lead to lumpy order patterns, particularly
in our industrial sector. We are narrowing our full year revenue
guidance, while raising our earnings guidance to reflect a less adverse
foreign currency exchange environment than we previously anticipated. We
remain committed to balancing our growth strategies with continued
discipline in spending.”
Tennant Company is narrowing its estimated 2016 full year net sales to
the range of $800 million to $820 million, down 1.5 percent to up 1.0
percent, or approximately up 1 percent to 3 percent organically,
excluding an unfavorable foreign currency exchange impact and a sales
decline from the Green Machines divestiture. The company is raising its
2016 full year earnings guidance to a range of $2.35 to $2.60 per
diluted share. Previously, Tennant estimated 2016 full year net sales in
the range of $795 million to $825 million and earnings in the range of
$2.25 to $2.55 per diluted share.
Foreign currency exchange headwinds in 2016 are estimated to negatively
impact operating profit in the range of $3 million to $4 million, or a
negative impact of approximately $0.10 to $0.15 per diluted share. On a
“Constant Currency” basis (assuming no change in foreign exchange rates
from the prior year), 2016 full year earnings are anticipated to be in
the range of $2.50 to $2.70 per diluted share. The estimated slightly
higher effective tax rate in 2016 is also anticipated to negatively
impact earnings per share by approximately $0.05. The company expects
its 2016 financial results to be stronger in the second half of the year.
Tennant’s 2016 annual financial outlook includes the following
assumptions:
-
Slower economic growth in North America, modest improvement in Europe
and growth in emerging markets;
-
Continued negative foreign currency impact on sales for the full year
in the range of an unfavorable 1 percent to 2 percent, with a $3
million to $4 million negative effect on operating profit;
-
Decline in sales of approximately 1 percent from the Green Machines
divestiture, and an immaterial impact on earnings;
-
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;
-
Capital expenditures in the range of $25 million to $30 million; and
-
An effective tax rate of approximately 31 percent.
Commented Killingstad: “While we anticipate continued global economic
uncertainty this year, we continue to believe that Tennant is
competitively advantaged. Our targeted vertical markets of education,
healthcare and retail are performing well. We are focused on controlling
costs and enhancing productivity across the organization. We remain
committed to reaching our goals of $1 billion in organic sales and a 12
percent operating profit margin.”
Conference Call
Tennant will host a conference call to discuss the 2016 second quarter
results today, July 26, 2016, 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
for approximately three months after the call.
Company Profile
Minneapolis-based Tennant Company (TNC) is a world leader in designing,
manufacturing and marketing solutions that empower customers to achieve
quality cleaning performance, significantly 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; 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; 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.
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: geopolitical and economic
uncertainty throughout the world; the competition in our business;
foreign currency exchange rate fluctuations, particularly the relative
strength of the U.S. dollar against other major currencies; our ability
to attract and retain key personnel; our ability to successfully
upgrade, evolve and protect our information technology systems;
fluctuations in the cost, quality, or availability of raw materials and
purchased components; our ability to effectively manage organizational
changes; our ability to develop and commercialize new innovative
products and services; unforeseen product liability claims or product
quality issues; the occurrence of a disruption to the value chain
process, such as sourcing, distribution, logistics or customer support;
the occurrence of a significant business interruption; and our ability
to comply with laws and regulations.
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.
"Constant Currency" Presentation
This news release and related conference call include a discussion of
sales, sales growth, gross margin, operating profit margin and net
earnings per diluted share on a “Constant Currency” basis, which are
non-GAAP measures. For the purpose of comparison, financial performance
on a “Constant Currency” basis uses the prior year exchange rates for
the comparative period to enhance the visibility of the underlying
business trends, excluding the impact arising from foreign currency
exchange rate fluctuations.
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
|
|
(In thousands, except shares and per share data)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
Net Sales
|
|
|
$
|
216,828
|
|
|
|
$
|
215,404
|
|
|
|
$
|
396,692
|
|
|
|
$
|
401,144
|
|
Cost of Sales
|
|
|
|
121,539
|
|
|
|
|
120,371
|
|
|
|
|
223,901
|
|
|
|
|
228,030
|
|
Gross Profit
|
|
|
|
95,289
|
|
|
|
|
95,033
|
|
|
|
|
172,791
|
|
|
|
|
173,114
|
|
Gross Margin
|
|
|
|
43.9
|
%
|
|
|
|
44.1
|
%
|
|
|
|
43.6
|
%
|
|
|
|
43.2
|
%
|
Operating Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and Development Expense
|
|
|
|
8,390
|
|
|
|
|
8,404
|
|
|
|
|
16,294
|
|
|
|
|
16,114
|
|
Selling and Administrative Expense
|
|
|
|
64,253
|
|
|
|
|
64,042
|
|
|
|
|
126,692
|
|
|
|
|
126,159
|
|
Loss on Sale of Business
|
|
|
|
87
|
|
|
|
|
—
|
|
|
|
|
149
|
|
|
|
|
—
|
|
Total Operating Expense
|
|
|
|
72,730
|
|
|
|
|
72,446
|
|
|
|
|
143,135
|
|
|
|
|
142,273
|
|
Profit from Operations
|
|
|
|
22,559
|
|
|
|
|
22,587
|
|
|
|
|
29,656
|
|
|
|
|
30,841
|
|
Operating Margin
|
|
|
|
10.4
|
%
|
|
|
|
10.5
|
%
|
|
|
|
7.5
|
%
|
|
|
|
7.7
|
%
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
40
|
|
|
|
|
53
|
|
|
|
|
81
|
|
|
|
|
103
|
|
Interest Expense
|
|
|
|
(288
|
)
|
|
|
|
(419
|
)
|
|
|
|
(590
|
)
|
|
|
|
(796
|
)
|
Net Foreign Currency Transaction Gains (Losses)
|
|
|
|
597
|
|
|
|
|
(225
|
)
|
|
|
|
324
|
|
|
|
|
(668
|
)
|
Other Expense, Net
|
|
|
|
(314
|
)
|
|
|
|
(185
|
)
|
|
|
|
(350
|
)
|
|
|
|
(237
|
)
|
Total Other Income (Expense), Net
|
|
|
|
35
|
|
|
|
|
(776
|
)
|
|
|
|
(535
|
)
|
|
|
|
(1,598
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit Before Income Taxes
|
|
|
|
22,594
|
|
|
|
|
21,811
|
|
|
|
|
29,121
|
|
|
|
|
29,243
|
|
Income Tax Expense
|
|
|
|
7,266
|
|
|
|
|
6,994
|
|
|
|
|
9,354
|
|
|
|
|
9,400
|
|
Net Earnings
|
|
|
$
|
15,328
|
|
|
|
$
|
14,817
|
|
|
|
$
|
19,767
|
|
|
|
$
|
19,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.88
|
|
|
|
$
|
0.81
|
|
|
|
$
|
1.13
|
|
|
|
$
|
1.09
|
|
Diluted
|
|
|
$
|
0.85
|
|
|
|
$
|
0.79
|
|
|
|
$
|
1.10
|
|
|
|
$
|
1.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,508,022
|
|
|
|
|
18,197,431
|
|
|
|
|
17,526,107
|
|
|
|
|
18,240,027
|
|
Diluted
|
|
|
|
17,933,243
|
|
|
|
|
18,672,040
|
|
|
|
|
17,954,167
|
|
|
|
|
18,724,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends Declared per Common Share
|
|
|
$
|
0.20
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHICAL NET SALES(1) (Unaudited)
|
|
(In thousands)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
2016
|
|
|
2015
|
|
|
%
|
|
|
2016
|
|
|
2015
|
|
|
%
|
Americas
|
|
|
$
|
163,857
|
|
|
$
|
161,429
|
|
|
1.5
|
|
|
|
$
|
297,410
|
|
|
$
|
295,432
|
|
|
0.7
|
|
Europe, Middle East and Africa
|
|
|
|
34,391
|
|
|
|
33,741
|
|
|
1.9
|
|
|
|
|
65,124
|
|
|
|
68,388
|
|
|
(4.8
|
)
|
Asia Pacific
|
|
|
|
18,580
|
|
|
|
20,234
|
|
|
(8.2
|
)
|
|
|
|
34,158
|
|
|
|
37,324
|
|
|
(8.5
|
)
|
Total
|
|
|
$
|
216,828
|
|
|
$
|
215,404
|
|
|
0.7
|
|
|
|
$
|
396,692
|
|
|
$
|
401,144
|
|
|
(1.1
|
)
|
|
(1) Net of intercompany sales.
|
|
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|
(In thousands)
|
|
|
June 30,
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
$
|
27,945
|
|
|
|
$
|
51,300
|
|
|
|
$
|
67,638
|
|
Restricted Cash
|
|
|
|
529
|
|
|
|
|
640
|
|
|
|
|
349
|
|
Net Receivables
|
|
|
|
154,609
|
|
|
|
|
140,445
|
|
|
|
|
151,146
|
|
Inventories
|
|
|
|
82,520
|
|
|
|
|
77,292
|
|
|
|
|
86,534
|
|
Prepaid Expenses
|
|
|
|
10,289
|
|
|
|
|
14,656
|
|
|
|
|
11,357
|
|
Deferred Income Taxes, Current Portion
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9,747
|
|
Other Current Assets
|
|
|
|
1,790
|
|
|
|
|
2,485
|
|
|
|
|
1,844
|
|
Assets Held for Sale
|
|
|
|
—
|
|
|
|
|
6,826
|
|
|
|
|
—
|
|
Total Current Assets
|
|
|
|
277,682
|
|
|
|
|
293,644
|
|
|
|
|
328,615
|
|
Property, Plant and Equipment
|
|
|
|
295,849
|
|
|
|
|
276,811
|
|
|
|
|
269,368
|
|
Accumulated Depreciation
|
|
|
|
(190,763
|
)
|
|
|
|
(181,853
|
)
|
|
|
|
(180,207
|
)
|
Property, Plant and Equipment, Net
|
|
|
|
105,086
|
|
|
|
|
94,958
|
|
|
|
|
89,161
|
|
Deferred Income Taxes, Long-Term Portion
|
|
|
|
14,102
|
|
|
|
|
12,051
|
|
|
|
|
7,625
|
|
Goodwill
|
|
|
|
17,524
|
|
|
|
|
16,803
|
|
|
|
|
17,670
|
|
Intangible Assets, Net
|
|
|
|
2,979
|
|
|
|
|
3,195
|
|
|
|
|
14,292
|
|
Other Assets
|
|
|
|
15,508
|
|
|
|
|
11,644
|
|
|
|
|
12,379
|
|
Total Assets
|
|
|
$
|
432,881
|
|
|
|
$
|
432,295
|
|
|
|
$
|
469,742
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Current Portion of Long-Term Debt
|
|
|
$
|
3,460
|
|
|
|
$
|
3,459
|
|
|
|
$
|
3,435
|
|
Accounts Payable
|
|
|
|
49,838
|
|
|
|
|
50,350
|
|
|
|
|
59,735
|
|
Employee Compensation and Benefits
|
|
|
|
30,137
|
|
|
|
|
34,528
|
|
|
|
|
28,566
|
|
Income Taxes Payable
|
|
|
|
3,950
|
|
|
|
|
1,398
|
|
|
|
|
3,579
|
|
Other Current Liabilities
|
|
|
|
40,792
|
|
|
|
|
43,027
|
|
|
|
|
41,494
|
|
Liabilities Held for Sale
|
|
|
|
—
|
|
|
|
|
454
|
|
|
|
|
—
|
|
Total Current Liabilities
|
|
|
|
128,177
|
|
|
|
|
133,216
|
|
|
|
|
136,809
|
|
Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
|
|
17,751
|
|
|
|
|
21,194
|
|
|
|
|
21,143
|
|
Employee-Related Benefits
|
|
|
|
21,245
|
|
|
|
|
21,508
|
|
|
|
|
24,800
|
|
Deferred Income Taxes, Long-Term Portion
|
|
|
|
72
|
|
|
|
|
5
|
|
|
|
|
4,343
|
|
Other Liabilities
|
|
|
|
4,846
|
|
|
|
|
4,165
|
|
|
|
|
4,543
|
|
Total Long-Term Liabilities
|
|
|
|
43,914
|
|
|
|
|
46,872
|
|
|
|
|
54,829
|
|
Total Liabilities
|
|
|
|
172,091
|
|
|
|
|
180,088
|
|
|
|
|
191,638
|
|
Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
Preferred Stock
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Common Stock
|
|
|
|
6,592
|
|
|
|
|
6,654
|
|
|
|
|
6,848
|
|
Additional Paid-In Capital
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
17,185
|
|
Retained Earnings
|
|
|
|
298,568
|
|
|
|
|
293,682
|
|
|
|
|
298,586
|
|
Accumulated Other Comprehensive Loss
|
|
|
|
(44,370
|
)
|
|
|
|
(48,129
|
)
|
|
|
|
(44,515
|
)
|
Total Shareholders’ Equity
|
|
|
|
260,790
|
|
|
|
|
252,207
|
|
|
|
|
278,104
|
|
Total Liabilities and Shareholders’ Equity
|
|
|
$
|
432,881
|
|
|
|
$
|
432,295
|
|
|
|
$
|
469,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TENNANT COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
(In thousands)
|
|
|
Six Months Ended
|
|
|
|
June 30
|
|
|
|
2016
|
|
|
2015
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net Earnings
|
|
|
$
|
19,767
|
|
|
|
$
|
19,843
|
|
Adjustments to reconcile Net Earnings to Net Cash Provided by
Operating Activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
|
8,655
|
|
|
|
|
8,155
|
|
Amortization
|
|
|
|
224
|
|
|
|
|
1,036
|
|
Deferred Income Taxes
|
|
|
|
(1,633
|
)
|
|
|
|
(1,754
|
)
|
Share-Based Compensation Expense
|
|
|
|
4,426
|
|
|
|
|
4,889
|
|
Allowance for Doubtful Accounts and Returns
|
|
|
|
606
|
|
|
|
|
1,246
|
|
Loss on Sale of Business
|
|
|
|
149
|
|
|
|
|
—
|
|
Other, Net
|
|
|
|
(63
|
)
|
|
|
|
(74
|
)
|
Changes in Operating Assets and Liabilities:
|
|
|
|
|
|
|
Receivables
|
|
|
|
(12,314
|
)
|
|
|
|
(1,717
|
)
|
Inventories
|
|
|
|
(3,941
|
)
|
|
|
|
(11,002
|
)
|
Accounts Payable
|
|
|
|
(389
|
)
|
|
|
|
(3,440
|
)
|
Employee Compensation and Benefits
|
|
|
|
(5,788
|
)
|
|
|
|
(5,970
|
)
|
Other Current Liabilities
|
|
|
|
(3,936
|
)
|
|
|
|
(3,174
|
)
|
Income Taxes
|
|
|
|
6,743
|
|
|
|
|
1,668
|
|
Other Assets and Liabilities
|
|
|
|
(65
|
)
|
|
|
|
(3,133
|
)
|
Net Cash Provided by Operating Activities
|
|
|
|
12,441
|
|
|
|
|
6,573
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchases of Property, Plant and Equipment
|
|
|
|
(14,769
|
)
|
|
|
|
(7,594
|
)
|
Proceeds from Disposals of Property, Plant and Equipment
|
|
|
|
427
|
|
|
|
|
190
|
|
Proceeds from Sale of Business
|
|
|
|
285
|
|
|
|
|
—
|
|
Decrease (Increase) in Restricted Cash
|
|
|
|
120
|
|
|
|
|
(18
|
)
|
Net Cash Used in Investing Activities
|
|
|
|
(13,937
|
)
|
|
|
|
(7,422
|
)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Payments of Long-Term Debt
|
|
|
|
(3,444
|
)
|
|
|
|
(3,429
|
)
|
Purchases of Common Stock
|
|
|
|
(12,762
|
)
|
|
|
|
(14,229
|
)
|
Proceeds from Issuances of Common Stock
|
|
|
|
1,196
|
|
|
|
|
802
|
|
Excess Tax Benefit on Stock Plans
|
|
|
|
246
|
|
|
|
|
669
|
|
Dividends Paid
|
|
|
|
(7,058
|
)
|
|
|
|
(7,348
|
)
|
Net Cash Used in Financing Activities
|
|
|
|
(21,822
|
)
|
|
|
|
(23,535
|
)
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
(37
|
)
|
|
|
|
(940
|
)
|
|
|
|
|
|
|
|
Net Decrease in Cash and Cash Equivalents
|
|
|
|
(23,355
|
)
|
|
|
|
(25,324
|
)
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
|
51,300
|
|
|
|
|
92,962
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Period
|
|
|
$
|
27,945
|
|
|
|
$
|
67,638
|
|
|
|
|
|
|
|
|
|
|
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20160726005240/en/
Source: Tennant Company