Tennant Co. Files Q3 2024 10-Q

TL;DR

Tennant Co. 10-Q filed for Q3 2024. Financials and operations detailed.

AI Summary

Tennant Company filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024, detailing financial performance and operational updates. Specific financial figures and operational highlights for the quarter and year-to-date are presented.

Why It Matters

This filing provides investors with a detailed look at Tennant Company's financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Players & Entities

• TENNANT CO (company) — Filer of the 10-Q
• 0000097134-24-000037 (filing_id) — Accession Number for the filing
• 20240930 (date) — Period of report for the 10-Q
• 20241101 (date) — Filing date of the 10-Q

FAQ

Key Financial Figures

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

Filing Documents

• tnc-20240930.htm (10-Q) — 1251KB
• tnc-20240930xexx311.htm (EX-31.1) — 9KB
• tnc-20240930xexx312.htm (EX-31.2) — 9KB
• tnc-20240930xexx321.htm (EX-32.1) — 4KB
• tnc-20240930xexx322.htm (EX-32.2) — 4KB
• tnc-20240930_g1.jpg (GRAPHIC) — 17KB
• 0000097134-24-000037.txt ( ) — 7463KB
• tnc-20240930.xsd (EX-101.SCH) — 44KB
• tnc-20240930_cal.xml (EX-101.CAL) — 92KB
• tnc-20240930_def.xml (EX-101.DEF) — 219KB
• tnc-20240930_lab.xml (EX-101.LAB) — 624KB
• tnc-20240930_pre.xml (EX-101.PRE) — 440KB
• tnc-20240930_htm.xml (XML) — 1173KB

- 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 10 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 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Other Information

Item 5. Other Information 32 Item 6. Exhibits 34

Signatures

Signatures 35 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net sales $ 315.8 $ 304.7 $ 957.8 $ 932.2 Cost of sales 182.0 172.7 543.8 535.2 Gross profit 133.8 132.0 414.0 397.0 Selling and administrative expense 92.7 88.2 275.5 256.9 Research and development expense 10.5 9.1 31.8 26.0 Operating income 30.6 34.7 106.7 114.1 Interest expense, net ( 2.7 ) ( 3.3 ) ( 7.5 ) ( 11.0 ) Net foreign currency transaction (loss) gain ( 0.4 ) ( 0.4 ) 0.1 0.5 Other (expense) income, net — ( 1.1 ) 0.2 ( 1.8 ) Income before income taxes 27.5 29.9 99.5 101.8 Income tax expense 6.7 7.0 22.4 23.3 Net income $ 20.8 $ 22.9 $ 77.1 $ 78.5 Net income per share Basic $ 1.11 $ 1.23 $ 4.10 $ 4.25 Diluted $ 1.09 $ 1.21 $ 4.03 $ 4.19 Weighted average shares outstanding Basic 18,810,267 18,570,293 18,790,824 18,485,806 Diluted 19,093,873 18,878,311 19,120,455 18,747,128 See accompanying notes to consolidated financial statements. 3 Table of Contents TENNANT COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 20.8 $ 22.9 $ 77.1 $ 78.5 Other comprehensive income (loss): Foreign currency translation adjustments (net of related tax benefit (expense) of $ 0.5 , $( 0.2 ), $ 0.4 , and $ 0.1 , respectively) 12.9 ( 10.6 ) ( 2.4 ) ( 5.2 ) Pension and postretirement medical benefits (net of related tax expense of $ 0 , $ 0 , $ 0 , and $ 0 , respectively) ( 0.2 ) — ( 0.2 ) — Derivative financial instruments (net of related tax benefit (expense) of $ 0.5 , $( 0.4 ), $ 0.1 , and $( 0.2 ), respectively) ( 1.7 ) 0.2 ( 0.4 ) 0.7 Total other comprehensive income (loss), net of tax 11.0 ( 10.4 ) ( 3.0 ) ( 4.5 ) Total comprehensive income $ 31.8 $ 12.5 $ 74.1 $ 74.0 See accompany

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