Vice President and Chief Financial Officer
Director, Global Corporate
Tennant Company Reports 2012 Fourth Quarter and Full Year Results
Quarterly net sales of $187.5 versus record 2011 fourth quarter of $193.2 million;
North America region returns to net sales growth in quarter;
Quarterly diluted EPS of $0.73, or $0.62 as adjusted, up from $0.59 diluted EPS in year ago period;
Quarterly gross margin of 44.5 percent exceeded target range;
Operating profit margin rose to 10.1 percent from 8.0 percent in prior year quarter;
2012 diluted EPS of $2.18, or $2.08 as adjusted, up from 2011 adjusted diluted EPS of $1.95;
Company provides 2013 sales and earnings guidance
MINNEAPOLIS, Feb. 19, 2013-Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer, healthier world, today reported net earnings of $13.8 million, or $0.73 per diluted share, on net sales of $187.5 million for the fourth quarter ended December 31, 2012. Results in the 2012 fourth quarter included a special item of $0.11 per diluted share related to tax benefits from an international entity restructuring. Excluding the special tax benefit, adjusted 2012 fourth quarter earnings totaled $0.62 per diluted share. (See the Supplemental Non-GAAP Financial Table.) In the 2011 fourth quarter, Tennant reported net earnings of $11.3 million, or $0.59 per diluted share, on record net sales of $193.2 million.
“Our balanced strategy to aggressively lower Tennant's cost structure, while investing in future growth, is paying off,” said Chris Killingstad, Tennant Company's president and chief executive officer. “In the 2012 fourth quarter, our operational excellence initiatives helped generate our strongest gross margins since 1999, a fourth quarter double-digit operating profit margin for the first time in 12 years, and record fourth quarter adjusted earnings. On the revenue side, we returned to growth in North America, and we expect continued improvement in our financial metrics as the economy recovers.”
Fourth Quarter Operating Review
Tennant's consolidated net sales were down 2.9 percent to $187.5 million versus $193.2 million in the 2011 fourth quarter. Unfavorable foreign currency exchange impact reduced net sales by approximately 0.5 percent compared to the prior year period. Organic net sales, which exclude acquisitions and foreign currency impact, decreased approximately 2.4 percent. Organic net sales rose approximately 3.3 percent in Tennant's Americas region, excluding unfavorable foreign currency exchange of approximately 0.5 percent. The increase stemmed from a sales rebound in Tennant's largest geography of North America due to higher sales to strategic accounts, as well as continued double-digit growth in Latin America. Organic sales in the Europe, Middle East and Africa (EMEA) region were down approximately 14.6 percent, excluding unfavorable foreign currency exchange of approximately 2.0 percent, due to macroeconomic conditions
The following information was filed by Tennant Co (TNC) on Tuesday, February 19, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.