Tennant Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Tennant Co. has submitted its annual 10-K filing for the fiscal year ending December 31, 2023.</b>

AI Summary

TENNANT CO (TNC) filed a Annual Report (10-K) with the SEC on February 22, 2024. Tennant Co. filed its 10-K report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 104000 Clean Street, Eden Prairie, MN 55344. Tennant Co. was incorporated in Minnesota (MN). The filing was submitted on February 22, 2024.

Why It Matters

For investors and stakeholders tracking TENNANT CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Tennant Co.'s financial performance, operations, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed financial data and disclosures within the report are essential for understanding the company's financial position, including its assets, liabilities, and equity, as well as its revenue streams and profitability.

Risk Assessment

Risk Level: medium — TENNANT CO shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not immediately highlight any significant positive or negative deviations that would suggest an unusually high or low risk profile without further in-depth analysis of the specific financial statements and risk factors.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-K to identify key performance indicators, revenue trends, and any emerging risks or opportunities for Tennant Co.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-22 — Filing Date (FILED AS OF DATE)
• 136 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 001-16191 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• TENNANT CO (company) — FILER
• MN (location) — STATE OF INCORPORATION
• 7635401200 (phone_number) — BUSINESS PHONE
• TENNANT G H CO (company) — FORMER COMPANY

FAQ

Industry Context

Tennant Co. operates in the Refrigeration & Service Industry Machinery sector (SIC 3580). This 10-K filing provides insights into its performance within this industrial machinery market.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the financial statements (Balance Sheet, Income Statement, Cash Flow) for trends in revenue, profitability, and liquidity.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for management's perspective on performance and outlook.
3. Examine the 'Risk Factors' section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted for the 2023 10-K. Comparative data from previous filings would be needed to assess year-over-year changes.

Key Financial Figures

• $0.375 — ich registered Common Stock, par value $0.375 per share TNC New York Stock Exchange

Filing Documents

• tnc-20231231.htm (10-K) — 2110KB
• tnc-20231231xexx103.htm (EX-10.3) — 4KB
• tnc-20231231xexx21.htm (EX-21.0) — 26KB
• tnc-20231231xexx231.htm (EX-23.1) — 2KB
• tnc-20231231xexx311.htm (EX-31.1) — 9KB
• tnc-20231231xexx312.htm (EX-31.2) — 9KB
• tnc-20231231xexx321.htm (EX-32.1) — 4KB
• tnc-20231231xexx322.htm (EX-32.2) — 4KB
• tnc-20231231xexx97.htm (EX-97.0) — 26KB
• tnc-20231231_g1.jpg (GRAPHIC) — 17KB
• tnc-20231231_g2.jpg (GRAPHIC) — 147KB
• 0000097134-24-000008.txt (&nbsp;) — 14160KB
• tnc-20231231.xsd (EX-101.SCH) — 76KB
• tnc-20231231_cal.xml (EX-101.CAL) — 165KB
• tnc-20231231_def.xml (EX-101.DEF) — 436KB
• tnc-20231231_lab.xml (EX-101.LAB) — 1177KB
• tnc-20231231_pre.xml (EX-101.PRE) — 808KB
• tnc-20231231_htm.xml (XML) — 2504KB

Business

Business 3 Item 1A

Risk Factors

Risk Factors 7 Item 1B Unresolved Staff Comments 12 Item 1C Cybersecurity 12 Item 2

Properties

Properties 13 Item 3

Legal Proceedings

Legal Proceedings 13 Item 4 Mine Safety Disclosures 14 PART II Item 5 Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 15 Item 6 [Reserved] 16 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 26 Report of Independent Registered Public Accounting Firm 26 Consolidated Financial Statements 29 Consolidated Statements of Income 29 Consolidated Statements of Comprehensive Income 30 Consolidated Balance Sheets 31 Consolidated Statements of Cash Flows 32 Consolidated Statements of Equity 33 Notes to the Consolidated Financial Statements 34 1 Summary of Significant Accounting Policies 34 2 Newly Adopted Accounting Pronouncements 39 3 Revenue 39 4 Management Actions 41 5 Acquisitions and Divestitures 42 6 Inventories 43 7 Property, Plant and Equipment 43 8 Goodwill and Intangible Assets 44 9 Debt 45 10 Other Current Liabilities 47 11 Derivatives 47 12 Fair Value Measurements 51 13 Retirement Benefit Plans 52 14 Shareholders' Equity 58 15 Leases 58 16 Commitments and Contingencies 60 17 Income Taxes 60 18 Share-Based Compensation 63 19 Income Attributable to Tennant Company Per Share 66 20 Segment Reporting 67 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 68 Item 9A

Controls and Procedures

Controls and Procedures 68 Item 9B Other Information 69 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 69 PART III Item 10 Directors, Executive Officers and Corporate Governance 70 Item 11

Executive Compensation

Executive Compensation 70 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 70 Item 13 Certain Relationships and Related Transactions, and Director Independence 70 Item 14 Principal Accountant Fees and Services 70 PART IV Item 15 Exhibits and Financial Statement Schedules 71 Item 16 Form 10-K Summary 75

Signatures

Signatures 76 2 Table of Contents TENNANT COMPANY 2023 ANNUAL REPORT Form 10–K PART I

– Business

ITEM 1 – Business General Development of Business Founded in 1870 by George H. Tennant, Tennant Company ("the Company, we, us, or our"), headquartered in Eden Prairie, Minnesota, is a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer and healthier world. Tennant was incorporated as a Minnesota corporation in 1909 and began as a one-man woodworking business, eventually evolving into a successful wood flooring and wood products company, and finally into a manufacturer of floor cleaning equipment. Throughout its history, the Company has remained focused on advancing our industry by aggressively pursuing new technologies and creating a culture that celebrates innovation. Today, the Company has 11 global manufacturing locations and operates in three geographic areas including the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC). We aggregate our operating segments into one reportable segment that consists of the design, manufacture, sale and servicing of products used primarily in the maintenance of nonresidential surfaces. The Company is committed to developing innovative and sustainable solutions that help our customers clean spaces more effectively with high-performance solutions that minimize waste, reduce costs, improve safety and further sustainability goals. Principal Products, Markets and Distribution The Company offers products and solutions consisting of manual and mechanized cleaning equipment for both industrial and commercial use, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and business solutions such as financing, rental and leasing programs, and machine-to-machine asset management solutions. The Company is committed to developing cleaning technologies, including autonomous solutions, which increase cleaning productivity. We have strong brand presence in the global markets we serve, off

– Risk Factors

ITEM 1A – Risk Factors The following are risk factors known to us that could materially adversely affect our business, financial condition or operating results. Macroeconomic Risks We may encounter financial difficulties if the United States or other global economies experience an additional or continued long-term economic downturn, decreasing the demand for our products and negatively affecting our sales growth. Our product sales are sensitive to declines in capital spending by our customers. Decreased demand for our products could result in decreased revenues, profitability and cash flows and may impair our ability to maintain our operations and fund our obligations to others. In the event of a continued long-term economic downturn in the U.S. or other global economies, our revenues could decline to the point that we may have to take cost-saving measures, such as restructuring actions. In addition, other fixed costs would have to be reduced to a level that is in line with a lower level of sales. A long-term economic downturn that puts downward pressure on sales could also negatively affect investor perception relative to our publicly stated profit targets. 7 Table of Contents Our operations could be adversely affected by geopolitical tensions or health epidemics. We may be adversely impacted by factors outside of our control, including geopolitical tensions or public health epidemics. Geopolitical tensions, acts of violence or war, or other international conflicts may also adversely impact our operations. Public health epidemics, such as the COVID-19 pandemic, have impacted economic markets, manufacturing operations, supply chains, employment and consumer behavior in nearly every geographic region and industry across the world, and we have been, and may in the future be, adversely affected as a result. Our global operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk. Due to the in

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View this 10-K filing on SEC EDGAR