Q1 2024 Tennant Co Earnings Call Transcript
Key Points
- Tennant Co (TNC) reported a strong first quarter with net sales increasing to $311 million and adjusted EBITDA rising to $54.9 million, resulting in an adjusted EBITDA margin of 17.7%.
- The company successfully reduced backlog for the fifth consecutive quarter, capturing pricing benefits and expanding gross margins.
- Tennant Co (TNC) launched the X4 ROVR, a new autonomous floor cleaning machine, which has received strong interest from customers and is expected to drive revenue growth.
- The company announced the international expansion of the Tennant-branded i-mop family of products, which is expected to enhance cleaning standards globally and open new market opportunities.
- Tennant Co (TNC) maintains a strong financial position with over $115 million in cash and a disciplined capital allocation strategy, allowing for strategic M&A activities and robust shareholder returns.
- Despite overall strong performance, Tennant Co (TNC) faced challenges in the EMEA region with a declining macroeconomic environment and lower than expected results.
- The company's performance in the APAC region was impacted by phasing of customer order timing, leading to decreased sales in key markets like Australia and China.
- Operating expenses were higher due to ERP implementation costs and transaction costs associated with investments and acquisitions.
- The company experienced a decrease in parts and consumables sales by 3.8%, primarily driven by volume decreases in North America and EMEA.
- Tennant Co (TNC) anticipates ending the year with a higher than normal backlog level, which could impact future sales and operations.
Good morning. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to Tennant Companyâs First Quarter 2024 Earnings Conference Call. This call is being recorded. (Operator Instructions)
Thank you for participating in Tennant Companyâs first quarter 2024 earnings conference call. Beginning todayâs meeting is Mr. Lorenzo Bassi, Vice President, Finance and Investor Relations for Tennant Company. Mr. Bassi, you may begin.
Good morning, everyone, and welcome to Tennant Companyâs first quarter 2024 earnings conference call. I am Lorenzo Bassi, Vice President, Finance and Investor Relations. Joining me on the call today are Dave Huml, Tennantâs President and CEO; and Fay West, Senior Vice President and CFO.
Today, we will provide an update on our 2024 first quarter performance. Dave will discuss our results and enterprise strategy, and Fay will cover our financials. After our prepared remarks, we will open the call to
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