Group 1 - The company Tennant Company (NYSE: TNC) was upgraded from a "hold" to a "buy" in early September of the previous year, indicating a positive outlook for its performance [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, which leads to value and growth prospects with real potential in the oil and natural gas sector [1] Group 2 - Subscribers to the service have access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas investment community [3]

Q4 and Full-Year 2024 Results Full-Year 2025 Guidance February 18, 2025 www.investors.tennantco.com Earnings Release Call Tennant Company Safe Harbor Statement Certain statements contained in this document 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 sub ...

Financial Data and Key Metrics Changes - For the full year 2024, net sales reached $1.287 billion, adjusted EBITDA rose to $208.8 million, and adjusted EBITDA margin expanded to 16.2% [9][52]. - The full year organic growth rate was 3.2%, primarily driven by price growth across regions, with a volume growth of over 5% in Q4 [9][10]. - GAAP net income for Q4 2024 was $6.6 million, down from $31 million in the prior year, while full year GAAP net income was $83.7 million compared to $109.5 million in 2023 [34][35]. Business Line Data and Key Metrics Changes - AMR equipment sales reached a record $75 million in 2024, driven by new product launches like the X4 ROVR [12][26]. - Equipment sales grew by 4.2% and service revenue increased by 8.5% in 2024 compared to 2023 [48]. - Parts and consumables sales decreased by 1.9% year-over-year, partly due to distributor consolidations [48]. Market Data and Key Metrics Changes - In the Americas, organic sales increased by 10%, driven by volume and price growth [44]. - EMEA organic sales increased by 4%, while APAC experienced a 19% decline in organic sales due to demand declines in China and Australia [45][51]. - The company noted a significant backlog reduction of $125 million, stabilizing backlog levels for future order alignment with revenue [10]. Company Strategy and Development Direction - The company aims to grow top-line revenue and expand bottom-line margins through pricing discipline, innovative product launches, and improved channel reach [16][32]. - Strategic investments in AMR and product line extensions are expected to drive future growth, with a target of exceeding $100 million in annual AMR revenue by 2027 [29][30]. - The company is actively pursuing M&A opportunities to add $150 million in net sales growth over three years [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving order growth of 3.5% to 7% in 2025, despite anticipating a negative organic sales decline of 1% to 4% due to backlog headwinds [30][58]. - The company is focused on managing costs and expanding margins, with expectations for gross margin expansion through pricing actions and cost-saving initiatives [32][60]. - Management acknowledged challenges in the APAC region, particularly in China, and plans to pivot strategies to focus on less competitive areas [96][99]. Other Important Information - The company plans to implement a staggered go-live of its ERP project in 2025, with total project costs expected to be around $50 million [61][137]. - A new share repurchase program was authorized for 2 million shares, reflecting a strategic approach to capital allocation [56][84]. - The company maintains strong liquidity with $99.8 million in cash and $449.3 million of unused borrowing capacity [57]. Q&A Session Summary Question: How does the company plan to maintain or grow margins in a declining revenue environment? - Management indicated that cost management initiatives and pricing realization will help offset inflation and support margin expansion [70][72]. Question: What were the order rates in Q4 and trends for early 2025? - Order rates in Q4 were strong, with nearly double-digit growth in the second half of 2024, and management expects 5% to 6% order rates in 2025 [80][81]. Question: Can you elaborate on the share repurchase strategy? - The share repurchase program has no time limit and is primarily aimed at offsetting dilution, with flexibility for opportunistic purchases [82][84]. Question: What are the opportunities in the Asia-Pacific market for 2025? - Management acknowledged challenges in APAC, particularly in China, and plans to focus on vertical markets with less competition [96][99]. Question: Can you provide an update on the ERP project costs and timeline? - The total ERP project costs are expected to be around $50 million, with expenses likely to be evenly split throughout 2025 [112][114].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number 001-16191 TENNANT COMPANY (Exact name of registrant as specified in its charter) State or other jurisdiction of (I ...

Financial Performance - Fourth-quarter net sales increased by 5.6% to $328.9 million, with organic growth of 6.3% driven by volume growth in the Americas and EMEA[5] - Full-year net sales reached $1,286.7 million, a 3.5% increase from 2023, supported by organic growth of 3.2% from price growth across all regions[5] - Adjusted EBITDA for the full year was $208.8 million, an 8.2% increase compared to 2023, with an adjusted EBITDA margin of 16.2%, up 70 basis points year-over-year[5] - Net income for the year decreased to $83.7 million from $109.5 million in 2023, reflecting a decline in profitability[30] - Reported net income for Q4 2024 was $6.6 million, a decrease of 78.7% from $31.0 million in Q4 2023[34] - Adjusted net income for Q4 2024 was $29.0 million, compared to $36.2 million in Q4 2023, reflecting a decline of 19.9%[34] - Total net income for the full year 2024 was $83.7 million, a decrease from $109.5 million in 2023[38] - Adjusted net income for the full year 2024 was $94.2 million, compared to $110.7 million in 2023[38] Cash Flow and Liquidity - Operating cash flow for 2024 was $89.7 million, with free cash flow of $68.8 million, reflecting investments in ERP modernization[16] - The company maintained a strong liquidity position with $99.8 million in cash and $449.3 million of unused borrowing capacity as of the end of 2024[17] - The net leverage ratio was 0.48 times adjusted EBITDA, below the targeted range of 1x to 2x[18] - The company returned $41.0 million to shareholders in 2024 through dividends and share repurchases[18] - Cash and cash equivalents decreased to $99.8 million from $117.1 million, showing a reduction in liquidity[33] - The company reported a net cash provided by operating activities of $89.7 million, down from $188.4 million in 2023, reflecting reduced cash generation[33] - Cash provided by operating activities for Q4 2024 was $37.5 million, down from $63.8 million in Q4 2023[38] Sales and Revenue Trends - Net sales for Q4 2024 were $328.9 million, a 5.6% increase from $311.4 million in Q4 2023[30] - The Americas region saw a 5.7% increase in net sales for the year, totaling $888.5 million[31] - The Asia Pacific region experienced a 10.3% decline in net sales for the year, totaling $79.7 million, indicating market challenges[31] - For 2025, the company anticipates net sales between $1,210 million and $1,250 million, with an expected organic sales decline of 1.0% to 4.0%[19] Operating Performance - Operating income for Q4 2024 was $7.6 million, down from $24.5 million in Q4 2023, highlighting challenges in operational efficiency[30] - Gross profit for the year was $550.0 million, up from $527.8 million, reflecting a gross margin improvement[30] - Gross profit for Q4 2024 was $136.0 million, an increase of 3.9% from $130.8 million in Q4 2023[36] - Selling and administrative (S&A) expense for Q4 2024 was $116.4 million, up 21.6% from $95.7 million in Q4 2023[36] - EBITDA for Q4 2024 was $21.0 million, down 45.0% from $38.2 million in Q4 2023[35] - Adjusted EBITDA margin for Q4 2024 was 14.4%, compared to 13.3% in Q4 2023[35] Research and Development - Research and development expenses increased to $43.8 million for the year, compared to $36.6 million in 2023, indicating a focus on innovation[30] Future Outlook - The diluted net income per share guidance for 2025 is projected to be between $3.80 and $4.30[19] - The company announced the launch of the new X6 ROVR, a larger autonomous scrubber, expected to be commercially available in Q2 2025[5] Capital Expenditures and Investments - The company invested $37.3 million in ERP modernization initiatives in 2024, with $23.3 million capitalized[34] - Capital expenditures for Q4 2024 were $9.4 million, compared to $7.5 million in Q4 2023[38] - ERP modernization costs for Q4 2024 amounted to $3.5 million, up from $1.2 million in Q4 2023[38] Legal and Settlement Charges - Legal settlement charge related to an intellectual property dispute amounted to $14.5 million, awarded on November 25, 2024[34]

Tennant (NYSE: TNC ) is a manufacturer of professional cleaning equipment. Established in 1870, Tennant is a challenger in the international markets, but holds a top position in the United States. Over the past 30 years, shares have returned over 1300I focus on investment ideas about companies that pay a (healthy) dividend while you wait for capital appreciation. I like to find good businesses which reward shareholders. The shares of the company should be for a temporary reason undervalued in relation to it ...

Tennant Company (NYSE:TNC) Q3 2024 Earnings Conference Call November 1, 2024 10:00 AM ET Company Participants Lorenzo Bassi - Vice President, Finance & Investor Relations Dave Huml - President & Chief Executive Officer Fay West - Senior Vice President & Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti Tom Hayes - CL King Aaron Reed - Northcoast Research Operator Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome ev ...

Tennant's future remains bright, even if the market was less than pleased with the company's third-quarter results.Shares of leading mechanized cleaning equipment manufacturer Tennant (TNC -4.99%) were down 5% today as of 4 p.m. ET Friday, according to data provided by S&P Global Market Intelligence.The Dividend King announced third-quarter earnings late Thursday afternoon and slightly missed analysts' expectations on both the top and bottom lines, spurring today's share price drop.Tennant's focus on autono ...

Financial Performance - Consolidated net sales for Q3 2024 totaled $315.8 million, a 3.6% increase from $304.7 million in Q3 2023[107]. - Organic sales growth for Q3 2024 was 2.7%, primarily due to price realization and higher equipment sales in the Americas[107]. - Gross profit margin for Q3 2024 was 42.4%, a decrease of 90 basis points compared to Q3 2023, attributed to higher inflationary pressure on materials[116]. - Selling and administrative expenses for Q3 2024 were $92.7 million, representing 29.4% of net sales, an increase of 50 basis points from Q3 2023[117]. - Research and development expenses for Q3 2024 were $10.5 million, or 3.3% of net sales, reflecting a 30 basis point increase compared to Q3 2023[118]. - Net income for Q3 2024 was $20.8 million, a decrease from $22.9 million in Q3 2023, resulting in diluted net income per share of $1.09[106]. Regional Sales Performance - Americas net sales for Q3 2024 were $218.7 million, a 3.6% increase from Q3 2023, driven by organic sales growth of 4.6%[111]. - EMEA net sales for Q3 2024 were $76.3 million, a 6.0% increase from Q3 2023, primarily due to inorganic sales from the acquisition of TCS[112]. - APAC net sales for Q3 2024 were $20.8 million, a decrease of 3.3% from Q3 2023, driven by organic sales decline in China and Australia[114]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $52.2 million, down from $124.6 million for the same period in 2023, attributed to working capital consumption and ERP modernization spending of $25.6 million[129]. - Net cash used in investing activities during the nine months ended September 30, 2024, was $69.1 million, compared to $15.2 million in the same period of 2023, primarily due to a $32.1 million investment in Brain Corp and a $25.7 million acquisition of TCS[130]. - The company's liquidity position included cash, cash equivalents, and restricted cash totaling $91.3 million as of September 30, 2024, down from $117.1 million at December 31, 2023[127]. Debt and Interest - The debt-to-capital ratio improved to 24.4% as of September 30, 2024, compared to 25.8% at December 31, 2023[127]. - Interest expense for the nine months ended September 30, 2024, was $3.6 million, down from $4.3 million in the same period of 2023[121]. - The average interest rate on borrowings increased to 6.54% for the nine months ended September 30, 2024, compared to 6.48% for the same period in 2023[121]. - The company has a notional amount of $120.0 million in interest rate swaps to manage floating rate debt exposure, exchanging variable rates for a fixed rate of 4.076%[121]. Tax and Currency - The effective tax rate for the third quarter of 2024 was 24.4%, an increase from 23.4% in the third quarter of 2023, mainly due to higher nondeductible executive compensation[123]. - The company reported a net foreign currency transaction loss of $0.4 million in the third quarters of 2024 and 2023, primarily due to the strengthening of the U.S. dollar against the Chinese renminbi and Mexican peso[122]. Business Outlook - The company remains confident in its long-term business health despite challenging economic conditions in EMEA and APAC[104]. - As of September 30, 2024, the company's order backlog was $76.8 million, a decrease from $186.2 million at December 31, 2023, due to improved production levels and component availability[126].

| --- | --- | --- | --- | --- | |-------------------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | Earnings Release Call Third Quarter 2024 Results November 1, 2024 | | | | | SAFE HARBOR STATEMENT Certain statements contained in this document 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 a ...