Tennant(TNC) - 2020 Q1 - Quarterly Report

Financial Performance - Consolidated Net Sales for Q1 2020 totaled $252.1 million, a 4.0% decrease from $262.5 million in Q1 2019[124] - Organic Net Sales decreased by approximately 2.4%, primarily due to declines in the EMEA and APAC regions, largely driven by the impact of COVID-19[124] - Gross Profit margin was 41.3%, a 10 basis point increase compared to Q1 2019, driven by pricing actions and cost-reduction initiatives[128] - Research and Development Expense was $7.4 million, or 2.9% of Net Sales, essentially flat compared to Q1 2019[130] - Selling and Administrative Expense decreased by $7.9 million to $82.3 million, with a percentage of Net Sales decreasing to 32.6% from 34.4% in Q1 2019[132] Cash Flow and Financial Position - Cash, Cash Equivalents, and Restricted Cash totaled $192.1 million at March 31, 2020, up from $74.6 million at December 31, 2019[140] - Operating Activities provided $8.7 million of cash for Q1 2020, driven by inflows from Net Earnings and a decrease in Accounts Receivables[141] - Net cash provided by financing activities was $123.0 million, primarily from credit facility borrowings of $125.0 million[143] - The debt-to-capital ratio increased to 56.5% as of March 31, 2020, compared to 48.5% at December 31, 2019[140] Tax and Accounting - The effective tax rate for Q1 2020 was 18.0%, compared to 17.7% in Q1 2019[137] - No new accounting pronouncements are expected to have a material impact on the company's results of operations or financial position[145] Risks and Forward-Looking Statements - The company faces various risks including the impacts of the COVID-19 pandemic and geopolitical uncertainties[146] - The company has no obligation to update or revise any forward-looking statements unless required by law[147] - There have been no material changes in the company's market risk since December 31, 2019[148]