Tennant Co. (NYSE: TNC) reported Q4 EPS of $0.48, $0.04 better than the analyst estimate of $0.44. Revenue for the quarter came in at $273 million versus the consensus estimate of $271.87 million.

“In a year in which we all were tested in ways we would have never previously imagined, I am extremely proud of the way the Tennant team rose to the challenge, remained true to our core principles, and continued to provide the solutions and service that our customers have always expected from us,” said Chris Killingstad, Tennant Company’s president and chief executive officer. “Our full-year results reflect the speed and effectiveness with which we responded to the pandemic to prioritize the health and safety of our employees, the measures we took to manage costs and ensure liquidity, and the resiliency and dedication of our people in working to minimize the overall financial and operational impact while continuing to serve our customers. At the same time, we’ve made the strategic investments necessary to allow us to exit the pandemic in a strong position as the markets continue to recover.”

“As we plan for the future, we will continue to invest in our business to support our long-term enterprise strategy of winning where we have competitive advantage, reducing complexity and building scalable processes, and innovating for profitable growth. Our implementation of that strategy continued throughout 2020, despite the pandemic, and was integral to everything we accomplished, including product development. Our recent launch of a range of new floor scrubbers demonstrates our culture of responding to customer needs by delivering quality, innovation and value, even during a pandemic. Now more than ever, our customers rely on us to help maintain the safety and appearance of their facilities while reducing their overall cost to clean.”

GUIDANCE:

Tennant Co. sees FY2021 EPS of $3.50-$3.95, versus the consensus of $3.14. Tennant Co. sees FY2021 revenue of $1.05-1.08 million, versus the consensus of $1.08 million.

For 2021, Tennant provides the following guidance:

• Net sales of $1.050 billion to $1.080 billion, reflecting organic sales growth of 5 to 8 percent;
• Full-year reported GAAP earnings in the range of $3.30 to $3.75 per diluted share;
• Adjusted EPS of $3.50 to $3.95 per diluted share, which excludes certain non-operational items and amortization expense;
• Adjusted EBITDA of $130 million to $140 million;
• Capital expenditures of $20 to $25 million; and
• An adjusted effective tax rate of approximately 20 percent, which excludes the amortization expense adjustment.

“While the macroeconomic outlook remains uncertain, we are encouraged by the sequential sales growth we saw in the fourth quarter and are well positioned to ramp up quickly as the anticipated recovery gains pace,” said Killingstad. “As we transition to a new leadership team, led by our COO Dave Huml, the Company is poised to benefit not only from improving market conditions, but also from the strategic investments and improvements to our operating model that we initiated in 2020 and that will support the execution of our enterprise strategy.”

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