Tennant Co. Files 10-Q for Quarter Ended March 31, 2024

TL;DR

<b>Tennant Co. has submitted its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

TENNANT CO (TNC) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Tennant Co. filed its 10-Q report for the quarter ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. The filing was made on May 3, 2024. Tennant Co. is incorporated in Minnesota and operates in the Refrigeration & Service Industry Machinery sector.

Why It Matters

For investors and stakeholders tracking TENNANT CO, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial performance and operational details for Tennant Co. during the first quarter of 2024. Understanding the specifics of this filing is crucial for assessing the company's current financial health, strategic direction, and potential future performance in the machinery industry.

Risk Assessment

Risk Level: low — TENNANT CO shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative disclosures.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to identify any emerging trends or specific performance indicators.

Key Numbers

• 2024-03-31 — Report Date (CONFORMED PERIOD OF REPORT)
• 2024-05-03 — Filing Date (FILED AS OF DATE)
• 12-31 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• TENNANT CO (company) — FILER
• 0000097134 (company) — CENTRAL INDEX KEY
• MN (company) — STATE OF INCORPORATION
• 104000 CLEAN STREET (company) — BUSINESS ADDRESS
• EDEN PRAIRIE (company) — BUSINESS ADDRESS CITY
• 7635401200 (company) — BUSINESS PHONE

FAQ

Industry Context

Tennant Co. operates within the Refrigeration & Service Industry Machinery sector, which involves the manufacturing and distribution of specialized equipment.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow trends.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into business performance and outlook.
3. Compare key financial metrics to prior periods and industry benchmarks.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q.
• 2024-05-03: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 10-K annual report.

Key Financial Figures

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

Filing Documents

• tnc-20240331.htm (10-Q) — 889KB
• tnc-20240331xexx311.htm (EX-31.1) — 9KB
• tnc-20240331xexx312.htm (EX-31.2) — 9KB
• tnc-20240331xexx321.htm (EX-32.1) — 4KB
• tnc-20240331xexx322.htm (EX-32.2) — 4KB
• tnc-20240331_g1.jpg (GRAPHIC) — 17KB
• 0000097134-24-000016.txt (&nbsp;) — 6233KB
• tnc-20240331.xsd (EX-101.SCH) — 40KB
• tnc-20240331_cal.xml (EX-101.CAL) — 81KB
• tnc-20240331_def.xml (EX-101.DEF) — 207KB
• tnc-20240331_lab.xml (EX-101.LAB) — 571KB
• tnc-20240331_pre.xml (EX-101.PRE) — 414KB
• tnc-20240331_htm.xml (XML) — 876KB

- FINANCIAL INFORMATION (Unaudited)

PART I - FINANCIAL INFORMATION (Unaudited) Page Item 1.

Financial Statements

Financial Statements 3 Consolidated Statements of Income 3 Consolidated Statements of Comprehensive Income 4 Consolidated Balance Sheets 5 Consolidated Statements of Cash Flows 6 Consolidated Statements of Equity 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Other Information

Item 5. Other Information 32 Item 6. Exhibits 30

Signatures

Signatures 31 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TENNANT COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except shares and per share data) Three Months Ended March 31, 2024 2023 Net sales $ 311.0 $ 305.8 Cost of sales 173.5 180.3 Gross profit 137.5 125.5 Selling and administrative expense 89.9 81.7 Research and development expense 10.1 7.9 Operating income 37.5 35.9 Interest expense, net ( 2.3 ) ( 3.7 ) Net foreign currency transaction loss ( 0.2 ) ( 0.1 ) Other income (expense), net 0.1 ( 0.1 ) Income before income taxes 35.1 32.0 Income tax expense 6.7 7.7 Net income $ 28.4 $ 24.3 Net income per share Basic $ 1.52 $ 1.32 Diluted $ 1.49 $ 1.30 Weighted average shares outstanding Basic 18,665,570 18,449,430 Diluted 19,077,767 18,682,268 3 Table of Contents TENNANT COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended March 31, 2024 2023 Net income $ 28.4 $ 24.3 Other comprehensive (loss) income: Foreign currency translation adjustments (net of related tax (expense) benefit of $( 0.2 ) and $ 0.1 , respectively) ( 8.2 ) 5.3 Derivative financial instruments (net of related tax (expense) benefit of $( 0.3 ), $ 0.2 , respectively) 1.0 ( 0.6 ) Total other comprehensive (loss) income, net of tax ( 7.2 ) 4.7 Comprehensive income $ 21.2 $ 29.0 See accompanying notes to consolidated financial statements. 4 Table of Contents TENNANT COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except shares and per share data) March 31, 2024 December 31, 2023 ASSETS Cash, cash equivalents, and restricted cash $ 88.8 $ 117.1 Receivables, less allowances of $ 7.1 and $ 7.2 , respectively 257.3 247.6 Inventories 181.4 175.9 Prepaid and other current assets 33.6 28.5 Total current assets 561.1 569.1 Property, plant and equipment, less accumulated depreciation of $ 307.4 and $ 304.0 , respectively 184.7 187.7 Operating lease assets 40.4 41.7 Goodwill 192.2 187.4 Inta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (In millions, except shares and per share data) 1. Summary of Significant Accounting Policies Tennant Company ("the Company", "we", "us", or "our") is a world leader in designing, manufacturing and marketing solutions that empower customers to achieve quality cleaning performance, reduce environmental impact and help create a cleaner, safer, healthier world. The Company is committed to creating and commercializing breakthrough, sustainable cleaning innovations to enhance its broad suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, and asset management solutions. Our products are used in many types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and more. Customers include contract cleaners to whom organizations outsource facilities maintenance as well as businesses that perform facilities maintenance themselves. The Company reaches these customers through the industry's largest direct sales and service organization and through a strong and well-supported network of authorized distributors worldwide. Basis of Presentation – The accompanying unaudited consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") requirements for interim reporting. In our opinion, the consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for the fair presentation of our financial position and results of operations. These statements should be read in conjunction with the consolidated financial statements and notes included in our annual report on Form 10-K for the year ended December 31, 2

View Full Filing

View this 10-Q filing on SEC EDGAR