Tennant(US:TNC)2022-04-28 16:28Financial Performance - Consolidated net sales for Q1 2022 totaled $258.1 million, a 2.0% decrease from $263.3 million in Q1 2021[82] - Net income attributable to Tennant Company was $10.3 million, or $0.55 per diluted share, compared to $25.7 million, or $1.37 per diluted share in Q1 2021[81] - Gross profit margin decreased to 38.3%, down 470 basis points compared to Q1 2021, primarily due to material inflation and higher freight costs[87] Expenses - Research and Development expense was $7.7 million, representing 3.0% of net sales, reflecting continued investment in new product development[89] - Selling and administrative expenses were $76.6 million, a decrease of $2.8 million compared to Q1 2021, with S&A expense as a percentage of net sales decreasing to 29.7%[88] - Interest expense, net was $0.3 million in Q1 2022, significantly lower than $3.9 million in the same period of 2021 due to debt restructuring[91] Cash and Liquidity - Cash, cash equivalents, and restricted cash totaled $110.4 million as of March 31, 2022, down from $123.6 million at the end of 2021[97] Taxation - The effective tax rate for Q1 2022 was 30.1%, an increase from 22.1% in Q1 2021, due to changes in forecasted taxable earnings by country[93] Order Backlog and Supply Chain - The order backlog at March 31, 2022, was approximately five times larger compared to March 31, 2021, driven by higher order rates and supply chain challenges[95] - The company anticipates ongoing supply chain challenges and inflationary trends throughout 2022, while maintaining confidence in long-term growth trends[79] Risks and Uncertainties - The company has identified various risks and uncertainties, including geopolitical and economic uncertainty, competition, and the impacts of the COVID-19 pandemic[103] - There have been no material changes in the company's market risk since December 31, 2021[106] Forward-Looking Statements - The company emphasizes the importance of considering forward-looking statements carefully due to potential material differences in actual results[104] - The company has no obligation to update or revise any forward-looking statements unless required by law[105]