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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tennant Co | NYSE:TNC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-8.73 | -7.55% | 106.97 | 111.5581 | 104.43 | 109.90 | 247,665 | 01:00:00 |
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☑
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ___________ to __________
|
Minnesota
|
41-0572550
|
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.375 per share
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TNC
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New York Stock Exchange
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Yes
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☑
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No
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☐
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Yes
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☑
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No
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☐
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Large accelerated filer
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☑
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Accelerated filer
|
☐
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Non-accelerated filer
|
☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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|
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☐
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Yes
|
☐
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No
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☑
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PART I - FINANCIAL INFORMATION
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II - OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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Item 1.
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Financial Statements
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TENNANT COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions, except shares and per share data)
|
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June 30
|
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June 30
|
||||||||||||
|
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2019
|
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2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
|
$
|
299.7
|
|
|
$
|
292.2
|
|
|
$
|
562.1
|
|
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$
|
565.0
|
|
Cost of Sales
|
|
178.9
|
|
|
175.0
|
|
|
333.1
|
|
|
338.7
|
|
||||
Gross Profit
|
|
120.8
|
|
|
117.2
|
|
|
229.0
|
|
|
226.3
|
|
||||
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|
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|
||||||||
Operating Expense:
|
|
|
|
|
|
|
|
|
||||||||
Research and Development Expense
|
|
8.4
|
|
|
7.9
|
|
|
15.6
|
|
|
15.9
|
|
||||
Selling and Administrative Expense
|
|
92.5
|
|
|
90.3
|
|
|
182.7
|
|
|
181.0
|
|
||||
Total Operating Expense
|
|
100.9
|
|
|
98.2
|
|
|
198.3
|
|
|
196.9
|
|
||||
Profit from Operations
|
|
19.9
|
|
|
19.0
|
|
|
30.7
|
|
|
29.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
|
0.9
|
|
|
0.9
|
|
|
1.7
|
|
|
1.7
|
|
||||
Interest Expense
|
|
(5.4
|
)
|
|
(6.0
|
)
|
|
(10.5
|
)
|
|
(11.8
|
)
|
||||
Net Foreign Currency Transaction Losses
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
(1.1
|
)
|
||||
Other Income (Expense), Net
|
|
1.4
|
|
|
(0.5
|
)
|
|
1.3
|
|
|
(0.7
|
)
|
||||
Total Other Expense, Net
|
|
(3.3
|
)
|
|
(5.9
|
)
|
|
(7.5
|
)
|
|
(11.9
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Profit Before Income Taxes
|
|
16.6
|
|
|
13.1
|
|
|
23.2
|
|
|
17.5
|
|
||||
Income Tax Expense
|
|
1.8
|
|
|
0.4
|
|
|
3.0
|
|
|
1.4
|
|
||||
Net Earnings Including Noncontrolling Interest
|
|
$
|
14.8
|
|
|
$
|
12.7
|
|
|
$
|
20.2
|
|
|
$
|
16.1
|
|
Net Earnings Attributable to Noncontrolling Interest
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
Net Earnings Attributable to Tennant Company
|
|
$
|
14.8
|
|
|
$
|
12.7
|
|
|
$
|
20.2
|
|
|
$
|
16.0
|
|
|
|
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|
|
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|
||||||||
Net Earnings Attributable to Tennant Company per Share:
|
|
|
|
|
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||||||||
Basic
|
|
$
|
0.82
|
|
|
$
|
0.71
|
|
|
$
|
1.12
|
|
|
$
|
0.90
|
|
Diluted
|
|
$
|
0.81
|
|
|
$
|
0.69
|
|
|
$
|
1.10
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
18,082,492
|
|
|
17,943,450
|
|
|
18,062,591
|
|
|
17,867,641
|
|
||||
Diluted
|
|
18,394,865
|
|
|
18,371,538
|
|
|
18,367,384
|
|
|
18,303,960
|
|
||||
|
|
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|
||||||||
Cash Dividend Declared per Common Share
|
|
$
|
0.22
|
|
|
$
|
0.21
|
|
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$
|
0.44
|
|
|
$
|
0.42
|
|
TENNANT COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
June 30
|
|
June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Earnings Including Noncontrolling Interest
|
$
|
14.8
|
|
|
$
|
12.7
|
|
|
$
|
20.2
|
|
|
$
|
16.1
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
1.3
|
|
|
(19.5
|
)
|
|
(0.9
|
)
|
|
(11.1
|
)
|
||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Cash flow hedge
|
1.3
|
|
|
1.4
|
|
|
2.7
|
|
|
(1.3
|
)
|
||||
Income Taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
0.1
|
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
||||
Cash flow hedge
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(0.8
|
)
|
||||
Total Other Comprehensive Income (Loss), net of tax
|
2.4
|
|
|
(18.1
|
)
|
|
1.1
|
|
|
(13.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Comprehensive Income (Loss) Including Noncontrolling Interest
|
17.2
|
|
|
(5.4
|
)
|
|
21.3
|
|
|
3.0
|
|
||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Comprehensive Income (Loss) Attributable to Tennant Company
|
$
|
17.2
|
|
|
$
|
(5.4
|
)
|
|
$
|
21.3
|
|
|
$
|
2.9
|
|
TENNANT COMPANY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|||||||
|
June 30,
|
|
December 31,
|
||||
(In millions, except shares and per share data)
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash, Cash Equivalents, and Restricted Cash
|
$
|
55.4
|
|
|
$
|
86.1
|
|
Receivables:
|
|
|
|
||||
Trade, less Allowances of $3.0 and $2.5, respectively
|
222.1
|
|
|
208.0
|
|
||
Other
|
9.9
|
|
|
8.2
|
|
||
Net Receivables
|
232.0
|
|
|
216.2
|
|
||
Inventories
|
159.5
|
|
|
135.1
|
|
||
Prepaid and Other Current Assets
|
32.5
|
|
|
31.2
|
|
||
Total Current Assets
|
479.4
|
|
|
468.6
|
|
||
Property, Plant and Equipment
|
414.0
|
|
|
386.6
|
|
||
Accumulated Depreciation
|
(240.7
|
)
|
|
(223.2
|
)
|
||
Property, Plant and Equipment, Net
|
173.3
|
|
|
163.4
|
|
||
Operating Lease Assets
|
45.4
|
|
|
—
|
|
||
Goodwill
|
193.3
|
|
|
182.7
|
|
||
Intangible Assets, Net
|
150.1
|
|
|
146.5
|
|
||
Other Assets
|
29.3
|
|
|
31.3
|
|
||
Total Assets
|
$
|
1,070.8
|
|
|
$
|
992.5
|
|
LIABILITIES AND TOTAL EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Current Portion of Long-Term Debt
|
$
|
8.3
|
|
|
$
|
27.0
|
|
Accounts Payable
|
98.7
|
|
|
98.4
|
|
||
Employee Compensation and Benefits
|
50.2
|
|
|
56.1
|
|
||
Other Current Liabilities
|
102.5
|
|
|
67.4
|
|
||
Total Current Liabilities
|
259.7
|
|
|
248.9
|
|
||
Long-Term Liabilities:
|
|
|
|
||||
Long-Term Debt
|
346.1
|
|
|
328.1
|
|
||
Long-Term Operating Lease Liabilities
|
29.1
|
|
|
—
|
|
||
Employee-Related Benefits
|
20.6
|
|
|
21.1
|
|
||
Deferred Income Taxes
|
45.5
|
|
|
46.0
|
|
||
Other Liabilities
|
34.6
|
|
|
32.1
|
|
||
Total Long-Term Liabilities
|
475.9
|
|
|
427.3
|
|
||
Total Liabilities
|
735.6
|
|
|
676.2
|
|
||
Commitments and Contingencies (Note 14)
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Common Stock, $0.375 par value; 60,000,000 shares authorized; 18,192,486 and 18,125,201 shares issued and outstanding, respectively
|
6.8
|
|
|
6.8
|
|
||
Additional Paid-In Capital
|
34.5
|
|
|
28.5
|
|
||
Retained Earnings
|
328.5
|
|
|
316.3
|
|
||
Accumulated Other Comprehensive Loss
|
(36.1
|
)
|
|
(37.2
|
)
|
||
Total Tennant Company Shareholders' Equity
|
333.7
|
|
|
314.4
|
|
||
Noncontrolling Interest
|
1.5
|
|
|
1.9
|
|
||
Total Equity
|
335.2
|
|
|
316.3
|
|
||
Total Liabilities and Total Equity
|
$
|
1,070.8
|
|
|
$
|
992.5
|
|
TENNANT COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|||||||
|
Six Months Ended
|
||||||
(In millions)
|
June 30
|
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net Earnings Including Noncontrolling Interest
|
$
|
20.2
|
|
|
$
|
16.1
|
|
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities:
|
|
|
|
||||
Depreciation
|
15.9
|
|
|
16.3
|
|
||
Amortization of Intangible Assets
|
11.5
|
|
|
11.7
|
|
||
Amortization of Debt Issuance Costs
|
0.6
|
|
|
1.3
|
|
||
Fair Value Step-Up Adjustment to Acquired Inventory
|
0.9
|
|
|
—
|
|
||
Deferred Income Taxes
|
(4.2
|
)
|
|
(7.9
|
)
|
||
Share-Based Compensation Expense
|
5.0
|
|
|
4.1
|
|
||
Allowance for Doubtful Accounts and Returns
|
0.9
|
|
|
0.9
|
|
||
Acquisition Contingent Consideration Adjustment
|
2.0
|
|
|
—
|
|
||
Note Receivable Write-down
|
2.7
|
|
|
—
|
|
||
Other, Net
|
0.1
|
|
|
0.3
|
|
||
Changes in Operating Assets and Liabilities, Net of Assets Acquired:
|
|
|
|
||||
Receivables, Net
|
(16.3
|
)
|
|
(6.8
|
)
|
||
Inventories
|
(23.1
|
)
|
|
(17.0
|
)
|
||
Accounts Payable
|
0.5
|
|
|
9.8
|
|
||
Employee Compensation and Benefits
|
(4.4
|
)
|
|
3.7
|
|
||
Other Current Liabilities
|
(2.1
|
)
|
|
(4.3
|
)
|
||
Other Assets and Liabilities
|
0.7
|
|
|
(2.2
|
)
|
||
Net Cash Provided by Operating Activities
|
10.9
|
|
|
26.0
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Purchases of Property, Plant and Equipment
|
(25.4
|
)
|
|
(7.7
|
)
|
||
Proceeds from Disposals of Property, Plant and Equipment
|
—
|
|
|
0.1
|
|
||
Proceeds from Principal Payments Received on Long-Term Note Receivable
|
0.1
|
|
|
0.7
|
|
||
Acquisition of Businesses, Net of Cash, Cash Equivalents and Restricted Cash Acquired
|
(8.9
|
)
|
|
—
|
|
||
Purchase of Intangible Assets
|
(0.4
|
)
|
|
(1.2
|
)
|
||
Net Cash Used in Investing Activities
|
(34.6
|
)
|
|
(8.1
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from Credit Facility Borrowings
|
25.0
|
|
|
—
|
|
||
Repayments of Debt
|
(25.9
|
)
|
|
(18.1
|
)
|
||
Change in Finance Lease Obligations
|
(0.1
|
)
|
|
0.1
|
|
||
Proceeds from Issuance of Common Stock
|
1.2
|
|
|
3.7
|
|
||
Purchase of Noncontrolling Owner Interest
|
(0.5
|
)
|
|
—
|
|
||
Dividends Paid
|
(8.0
|
)
|
|
(7.6
|
)
|
||
Net Cash Used in Financing Activities
|
(8.3
|
)
|
|
(21.9
|
)
|
||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
1.3
|
|
|
(0.6
|
)
|
||
Net Decrease in Cash, Cash Equivalents and Restricted Cash
|
(30.7
|
)
|
|
(4.6
|
)
|
||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
86.1
|
|
|
59.0
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
55.4
|
|
|
$
|
54.4
|
|
|
Tennant Company Shareholders
|
|
|
||||||||||||||||||||
|
Common Shares
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Loss
|
Tennant Company Shareholders' Equity
|
Noncontrolling Interest
|
Total Equity
|
|||||||||||||||
Balance, December 31, 2018
|
18,125,201
|
|
$
|
6.8
|
|
$
|
28.5
|
|
$
|
316.3
|
|
$
|
(37.2
|
)
|
$
|
314.4
|
|
$
|
1.9
|
|
$
|
316.3
|
|
Net Earnings
|
|
—
|
|
—
|
|
5.4
|
|
—
|
|
5.4
|
|
—
|
|
5.4
|
|
||||||||
Other Comprehensive Loss
|
|
—
|
|
—
|
|
—
|
|
(1.3
|
)
|
(1.3
|
)
|
—
|
|
(1.3
|
)
|
||||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings of 6,952 shares
|
35,338
|
|
—
|
|
0.2
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
0.2
|
|
|||||||
Share-Based Compensation
|
|
—
|
|
3.3
|
|
—
|
|
—
|
|
3.3
|
|
—
|
|
3.3
|
|
||||||||
Dividends paid $0.22 per Common Share
|
|
—
|
|
—
|
|
(4.0
|
)
|
—
|
|
(4.0
|
)
|
—
|
|
(4.0
|
)
|
||||||||
Recognition of Noncontrolling Interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.3
|
|
0.3
|
|
||||||||
Balance, March 31, 2019
|
18,160,539
|
|
$
|
6.8
|
|
$
|
32.0
|
|
$
|
317.7
|
|
$
|
(38.5
|
)
|
$
|
318.0
|
|
$
|
2.2
|
|
$
|
320.2
|
|
Net Earnings
|
|
—
|
|
—
|
|
14.8
|
|
—
|
|
14.8
|
|
—
|
|
14.8
|
|
||||||||
Other Comprehensive Income
|
|
—
|
|
—
|
|
—
|
|
2.4
|
|
2.4
|
|
—
|
|
2.4
|
|
||||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings of 3,310 shares
|
31,947
|
|
—
|
|
0.3
|
|
—
|
|
—
|
|
0.3
|
|
—
|
|
0.3
|
|
|||||||
Share-Based Compensation
|
|
—
|
|
1.7
|
|
—
|
|
—
|
|
1.7
|
|
—
|
|
1.7
|
|
||||||||
Dividends paid $0.22 per Common Share
|
|
—
|
|
—
|
|
(4.0
|
)
|
—
|
|
(4.0
|
)
|
—
|
|
(4.0
|
)
|
||||||||
Recognition of Noncontrolling Interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.3
|
)
|
(0.3
|
)
|
||||||||
Purchase of Noncontrolling Owner Interest
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
0.5
|
|
(0.5
|
)
|
—
|
|
||||||||
Other
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.1
|
|
0.1
|
|
||||||||
Balance, June 30, 2019
|
18,192,486
|
|
$
|
6.8
|
|
$
|
34.5
|
|
$
|
328.5
|
|
$
|
(36.1
|
)
|
$
|
333.7
|
|
$
|
1.5
|
|
$
|
335.2
|
|
|
Tennant Company Shareholders
|
|
|
||||||||||||||||||||
|
Common Shares
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Loss
|
Tennant Company Shareholders' Equity
|
Noncontrolling Interest
|
Total Equity
|
|||||||||||||||
Balance, December 31, 2017
|
17,881,177
|
|
$
|
6.7
|
|
$
|
15.1
|
|
$
|
297.0
|
|
$
|
(22.3
|
)
|
$
|
296.5
|
|
$
|
2.0
|
|
$
|
298.5
|
|
Net Earnings
|
|
—
|
|
—
|
|
3.3
|
|
—
|
|
3.3
|
|
—
|
|
3.3
|
|
||||||||
Other Comprehensive Income
|
|
—
|
|
—
|
|
—
|
|
5.1
|
|
5.1
|
|
—
|
|
5.1
|
|
||||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings of 4,151 shares
|
29,263
|
|
—
|
|
0.5
|
|
—
|
|
—
|
|
0.5
|
|
—
|
|
0.5
|
|
|||||||
Share-Based Compensation
|
|
—
|
|
2.7
|
|
—
|
|
—
|
|
2.7
|
|
—
|
|
2.7
|
|
||||||||
Dividends paid $0.21 per Common Share
|
|
—
|
|
—
|
|
(3.8
|
)
|
—
|
|
(3.8
|
)
|
—
|
|
(3.8
|
)
|
||||||||
Recognition of Noncontrolling Interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.1
|
)
|
(0.1
|
)
|
||||||||
Adjustments to Beginning Retained Earnings
|
|
—
|
|
—
|
|
1.2
|
|
—
|
|
1.2
|
|
—
|
|
1.2
|
|
||||||||
Balance, March 31, 2018
|
17,910,440
|
|
$
|
6.7
|
|
$
|
18.3
|
|
$
|
297.7
|
|
$
|
(17.2
|
)
|
$
|
305.5
|
|
$
|
1.9
|
|
$
|
307.4
|
|
Net Earnings
|
|
—
|
|
—
|
|
12.7
|
|
—
|
|
12.7
|
|
—
|
|
12.7
|
|
||||||||
Other Comprehensive Loss
|
|
—
|
|
—
|
|
—
|
|
(18.2
|
)
|
(18.2
|
)
|
—
|
|
(18.2
|
)
|
||||||||
Issue Stock for Directors, Employee Benefit and Stock Plans, net of related tax withholdings of 3,360 shares
|
163,273
|
|
0.1
|
|
2.6
|
|
—
|
|
—
|
|
2.7
|
|
—
|
|
2.7
|
|
|||||||
Share-Based Compensation
|
|
—
|
|
1.4
|
|
—
|
|
—
|
|
1.4
|
|
—
|
|
1.4
|
|
||||||||
Dividends paid $0.21 per Common Share
|
|
—
|
|
—
|
|
(3.8
|
)
|
—
|
|
(3.8
|
)
|
—
|
|
(3.8
|
)
|
||||||||
Balance, June 30, 2018
|
18,073,713
|
|
$
|
6.8
|
|
$
|
22.3
|
|
$
|
306.6
|
|
$
|
(35.4
|
)
|
$
|
300.3
|
|
$
|
1.9
|
|
$
|
302.2
|
|
1.
|
Summary of Significant Accounting Policies
|
2.
|
Newly Adopted Accounting Pronouncements
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Americas
|
$
|
189.5
|
|
|
$
|
178.8
|
|
|
$
|
350.3
|
|
|
$
|
341.4
|
|
Europe, Middle East and Africa
|
80.9
|
|
|
87.4
|
|
|
158.9
|
|
|
176.2
|
|
||||
Asia Pacific
|
29.3
|
|
|
26.0
|
|
|
52.9
|
|
|
47.4
|
|
||||
Total
|
$
|
299.7
|
|
|
$
|
292.2
|
|
|
$
|
562.1
|
|
|
$
|
565.0
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Equipment
|
$
|
188.4
|
|
|
$
|
192.1
|
|
|
$
|
349.9
|
|
|
$
|
364.1
|
|
Parts and Consumables
|
63.2
|
|
|
57.4
|
|
|
119.0
|
|
|
114.9
|
|
||||
Specialty Surface Coatings
|
7.1
|
|
|
7.8
|
|
|
13.3
|
|
|
14.3
|
|
||||
Service and Other
|
41.0
|
|
|
34.9
|
|
|
79.9
|
|
|
71.7
|
|
||||
Total
|
$
|
299.7
|
|
|
$
|
292.2
|
|
|
$
|
562.1
|
|
|
$
|
565.0
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales Direct to Consumer
|
$
|
201.4
|
|
|
$
|
187.5
|
|
|
$
|
373.8
|
|
|
$
|
366.2
|
|
Sales to Distributors
|
98.3
|
|
|
104.7
|
|
|
188.3
|
|
|
198.8
|
|
||||
Total
|
$
|
299.7
|
|
|
$
|
292.2
|
|
|
$
|
562.1
|
|
|
$
|
565.0
|
|
|
Six Months Ended
|
||||||
|
June 30
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
16.7
|
|
|
$
|
13.5
|
|
Additions to sales incentive accrual
|
14.6
|
|
|
14.9
|
|
||
Contract payments
|
(19.4
|
)
|
|
(16.8
|
)
|
||
Foreign currency fluctuations
|
0.1
|
|
|
(0.2
|
)
|
||
Ending balance
|
$
|
12.0
|
|
|
$
|
11.4
|
|
|
Six Months Ended
|
||||||
|
June 30
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
8.5
|
|
|
$
|
7.8
|
|
Increase in deferred revenue representing our obligation to satisfy future performance obligations
|
5.9
|
|
|
7.5
|
|
||
Deferred revenue addition from the acquisition of Gaomei
|
1.4
|
|
|
—
|
|
||
Decrease in deferred revenue for amounts recognized in Net Sales for satisfied performance obligations
|
(5.9
|
)
|
|
(7.0
|
)
|
||
Foreign currency fluctuations
|
—
|
|
|
(0.1
|
)
|
||
Ending balance
|
$
|
9.9
|
|
|
$
|
8.2
|
|
4.
|
Management Actions
|
|
|
Severance and Related Costs
|
||
December 31, 2017 balance
|
|
$
|
3.4
|
|
2018 charges and utilization:
|
|
|
||
New charges
|
|
1.0
|
|
|
Cash payments
|
|
(2.1
|
)
|
|
Foreign currency adjustments
|
|
(0.1
|
)
|
|
December 31, 2018 balance
|
|
$
|
2.2
|
|
2019 charges and utilization:
|
|
|
||
New charges
|
|
4.3
|
|
|
Cash payments
|
|
(0.7
|
)
|
|
June 30, 2019 balance
|
|
$
|
5.8
|
|
5.
|
Acquisition
|
ASSETS
|
|
|
||
Current Assets
|
|
$
|
7.7
|
|
Intangible Assets Subject to Amortization:
|
|
|
||
Trade Name
|
|
1.8
|
|
|
Customer Lists
|
|
13.8
|
|
|
Other Assets
|
|
1.4
|
|
|
Total Identifiable Assets Acquired
|
|
24.7
|
|
|
LIABILITIES
|
|
|
||
Current Liabilities
|
|
(5.3
|
)
|
|
Long-Term Liabilities
|
|
(3.8
|
)
|
|
Total Identifiable Liabilities Assumed
|
|
(9.1
|
)
|
|
Goodwill
|
|
11.5
|
|
|
Total Purchase Price
|
|
$
|
27.1
|
|
•
|
$11.3 million
was paid during the first quarter of 2019 upon close of the transaction;
|
•
|
$11.3 million
which will be paid in January 2020; and
|
•
|
The remaining purchase price of
$4.5 million
represents the estimated fair value of contingent consideration at the acquisition date. The payment is based on a probability-weighted scenario analysis of achieving certain levels of gross profit growth over a three year period. Consideration of
$0.0 million
to
$42.4 million
will be paid in March 2021 if the gross profit growth targets are met. As of June 30, 2019, the contingent consideration had a fair value of
$6.6 million
.
|
6.
|
Inventories
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Inventories carried at LIFO:
|
|
|
|
||||
Finished goods
|
$
|
52.7
|
|
|
$
|
48.6
|
|
Raw materials, production parts and work-in-process
|
33.2
|
|
|
28.6
|
|
||
Excess of FIFO over LIFO cost
(a)
|
(31.4
|
)
|
|
(31.2
|
)
|
||
Total LIFO inventories
|
54.5
|
|
|
46.0
|
|
||
Inventories carried at FIFO:
|
|
|
|
|
|
||
Finished goods
|
63.1
|
|
|
53.5
|
|
||
Raw materials, production parts and work-in-process
|
41.9
|
|
|
35.6
|
|
||
Total FIFO inventories
|
105.0
|
|
|
89.1
|
|
||
Total inventories
|
$
|
159.5
|
|
|
$
|
135.1
|
|
(a)
|
Inventories of
$54.5 million
as of
June 30, 2019
, and
$46.0 million
as of
December 31, 2018
, were valued at LIFO. The difference between replacement cost and the stated LIFO inventory value is not materially different from the reserve for the LIFO valuation method.
|
7.
|
Goodwill and Intangible Assets
|
|
Goodwill
|
|
Accumulated
Impairment
Losses
|
|
Total
|
||||||
Balance as of December 31, 2018
|
$
|
221.7
|
|
|
$
|
(39.0
|
)
|
|
$
|
182.7
|
|
Additions
|
11.5
|
|
|
—
|
|
|
11.5
|
|
|||
Foreign currency fluctuations
|
(1.2
|
)
|
|
0.3
|
|
|
(0.9
|
)
|
|||
Balance as of June 30, 2019
|
$
|
232.0
|
|
|
$
|
(38.7
|
)
|
|
$
|
193.3
|
|
|
Customer Lists
|
|
Trade Names
|
|
Technology
|
|
Total
|
||||||||
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
||||||||
Original cost
|
$
|
156.2
|
|
|
$
|
32.2
|
|
|
$
|
17.3
|
|
|
$
|
205.7
|
|
Accumulated amortization
|
(42.1
|
)
|
|
(6.8
|
)
|
|
(6.7
|
)
|
|
(55.6
|
)
|
||||
Carrying value
|
$
|
114.1
|
|
|
$
|
25.4
|
|
|
$
|
10.6
|
|
|
$
|
150.1
|
|
Weighted average original life (in years)
|
14
|
|
|
11
|
|
|
11
|
|
|
|
|
||||
Balance as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Original cost
|
$
|
143.0
|
|
|
$
|
30.6
|
|
|
$
|
17.4
|
|
|
$
|
191.0
|
|
Accumulated amortization
|
(33.7
|
)
|
|
(5.3
|
)
|
|
(5.5
|
)
|
|
(44.5
|
)
|
||||
Carrying value
|
$
|
109.3
|
|
|
$
|
25.3
|
|
|
$
|
11.9
|
|
|
$
|
146.5
|
|
Weighted average original life (in years)
|
15
|
|
|
10
|
|
|
10
|
|
|
|
|
Remaining 2019
|
$
|
11.1
|
|
2020
|
20.8
|
|
|
2021
|
19.2
|
|
|
2022
|
17.1
|
|
|
2023
|
15.5
|
|
|
Thereafter
|
66.4
|
|
|
Total
|
$
|
150.1
|
|
8.
|
Debt
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Bank Borrowings
|
$
|
—
|
|
|
$
|
3.9
|
|
Senior Unsecured Notes
|
300.0
|
|
|
300.0
|
|
||
Credit Facility Borrowings
|
56.0
|
|
|
53.0
|
|
||
Secured Borrowings
|
2.2
|
|
|
2.4
|
|
||
Finance Lease Liabilities
|
0.4
|
|
|
0.5
|
|
||
Unamortized Debt Issuance Costs
|
(4.2
|
)
|
|
(4.7
|
)
|
||
Total Debt
|
354.4
|
|
|
355.1
|
|
||
Less: Current Portion of Long-Term Debt
(a)
|
(8.3
|
)
|
|
(27.0
|
)
|
||
Long-Term Debt
|
$
|
346.1
|
|
|
$
|
328.1
|
|
(a)
|
Current portion of long-term debt includes a
$7.0 million
anticipated repayment on Credit Facility Borrowings under our 2017 Credit Agreement,
$1.1 million
of current maturities of secured borrowings and
$0.2 million
of current maturities of finance lease liabilities.
|
9.
|
Warranty
|
|
Six Months Ended
|
||||||
|
June 30
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
13.1
|
|
|
$
|
12.7
|
|
Additions charged to expense
|
5.4
|
|
|
7.2
|
|
||
Foreign currency fluctuations
|
0.1
|
|
|
(0.1
|
)
|
||
Claims paid
|
(5.9
|
)
|
|
(6.5
|
)
|
||
Ending balance
|
$
|
12.7
|
|
|
$
|
13.3
|
|
10.
|
Derivatives
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
Balance Sheet Location
|
June 30, 2019
|
December 31, 2018
|
|
Balance Sheet Location
|
June 30, 2019
|
December 31, 2018
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency option contracts
|
Other Current Assets
|
$
|
—
|
|
$
|
0.2
|
|
|
Other Current Liabilities
|
$
|
—
|
|
$
|
—
|
|
Foreign currency option contracts
|
Other Assets
|
—
|
|
—
|
|
|
Other Liabilities
|
—
|
|
—
|
|
||||
Foreign currency forward contracts
|
Other Current Assets
|
2.4
|
|
2.3
|
|
|
Other Current Liabilities
|
—
|
|
—
|
|
||||
Foreign currency forward contracts
|
Other Assets
|
—
|
|
—
|
|
|
Other Liabilities
|
16.8
|
|
20.7
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward contracts
|
Other Current Assets
|
0.6
|
|
0.2
|
|
|
Other Current Liabilities
|
0.6
|
|
—
|
|
||||
Foreign currency forward contracts
|
Other Assets
|
$
|
—
|
|
$
|
—
|
|
|
Other Liabilities
|
$
|
—
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30
|
|
June 30
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Total
|
Amount of Gain (Loss) on Cash Flow Hedge Activity
|
|
Total
|
Amount of Gain (Loss) on Cash Flow Hedge Activity
|
|
Total
|
Amount of Gain (Loss) on Cash Flow Hedge Activity
|
|
Total
|
Amount of Gain (Loss) on Cash Flow Hedge Activity
|
||||||||||||||||
Net Sales
|
$
|
299.7
|
|
$
|
—
|
|
|
$
|
292.2
|
|
$
|
(0.8
|
)
|
|
$
|
562.1
|
|
$
|
—
|
|
|
$
|
565.0
|
|
$
|
(0.1
|
)
|
Interest Income
|
0.9
|
|
0.7
|
|
|
0.9
|
|
0.6
|
|
|
1.7
|
|
1.4
|
|
|
1.7
|
|
1.1
|
|
||||||||
Net Foreign Currency Transaction (Losses) Gains
|
(0.2
|
)
|
(2.1
|
)
|
|
(0.3
|
)
|
10.3
|
|
|
—
|
|
1.0
|
|
|
(1.1
|
)
|
5.2
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30, 2019
|
|
June 30, 2019
|
||||||||||||
|
|
Foreign Currency Option Contracts
|
|
Foreign Currency Forward Contracts
|
|
Foreign Currency Option Contracts
|
|
Foreign Currency Forward Contracts
|
||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) gain recognized in Other Comprehensive (Loss) Income, net of tax
(a)
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
|
$
|
4.1
|
|
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Interest Income
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
1.1
|
|
||||
Net (loss) gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction (Gain) Loss
|
|
—
|
|
|
(1.6
|
)
|
|
—
|
|
|
0.8
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Net loss recognized in earnings
(b)
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
—
|
|
|
$
|
(0.8
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30, 2018
|
|
June 30, 2018
|
||||||||||||
|
|
Foreign Currency Option Contracts
|
|
Foreign Currency Forward Contracts
|
|
Foreign Currency Option Contracts
|
|
Foreign Currency Forward Contracts
|
||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Net gain recognized in Other Comprehensive (Loss) Income, net of tax
(a)
|
|
$
|
—
|
|
|
$
|
9.4
|
|
|
$
|
—
|
|
|
$
|
3.7
|
|
Net loss reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Sales
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Interest Income
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.9
|
|
||||
Net gain reclassified from Accumulated Other Comprehensive Loss into earnings, net of tax, effective portion to Net Foreign Currency Transaction Losses
|
|
—
|
|
|
7.9
|
|
|
—
|
|
|
4.0
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Net gain recognized in earnings
(b)
|
|
$
|
—
|
|
|
$
|
3.2
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
(a)
|
Net change in the fair value of the effective portion classified in Other Comprehensive (Loss) Income.
|
(b)
|
Classified in Net Foreign Currency Transaction Losses.
|
11.
|
Fair Value Measurements
|
•
|
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
•
|
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
|
•
|
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts
|
$
|
7.1
|
|
|
$
|
—
|
|
|
$
|
7.1
|
|
|
$
|
—
|
|
Total Assets
|
$
|
7.1
|
|
|
$
|
—
|
|
|
$
|
7.1
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency forward exchange contracts
|
$
|
21.5
|
|
|
$
|
—
|
|
|
$
|
21.5
|
|
|
$
|
—
|
|
Contingent consideration
|
6.6
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
||||
Total Liabilities
|
$
|
28.1
|
|
|
$
|
—
|
|
|
$
|
21.5
|
|
|
$
|
6.6
|
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts
|
$
|
7.2
|
|
|
$
|
—
|
|
|
$
|
7.2
|
|
|
$
|
—
|
|
Foreign currency option contracts
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Total Assets
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency forward exchange contracts
|
$
|
25.4
|
|
|
$
|
—
|
|
|
$
|
25.4
|
|
|
$
|
—
|
|
Total Liabilities
|
$
|
25.4
|
|
|
$
|
—
|
|
|
$
|
25.4
|
|
|
$
|
—
|
|
12.
|
Retirement Benefit Plans
|
13.
|
Leases
|
|
|
June 30,
|
||
Leases
|
Classification
|
2019
|
||
Assets
|
|
|
||
Operating lease assets
|
Operating Lease Assets
|
$
|
45.4
|
|
Finance lease assets
|
Property, Plant and Equipment
(a)
|
0.4
|
|
|
Total leased assets
|
|
$
|
45.8
|
|
Liabilities
|
|
|
||
Current
|
|
|
||
Operating
|
Other Current Liabilities
|
$
|
17.2
|
|
Finance
|
Current Portion of Long-term Debt
|
0.2
|
|
|
Noncurrent
|
|
|
||
Operating
|
Long-term Operating Lease Liabilities
|
29.1
|
|
|
Finance
|
Long-term Debt
|
0.2
|
|
|
Total lease liabilities
|
|
$
|
46.7
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
Lease Cost
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating lease cost
|
$
|
5.7
|
|
(a)
|
$
|
5.3
|
|
|
$
|
11.3
|
|
(a)
|
$
|
10.7
|
|
Finance lease cost
(b)
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Net lease cost
|
$
|
5.8
|
|
|
$
|
5.3
|
|
|
$
|
11.5
|
|
|
$
|
10.7
|
|
(a)
|
Includes short-term lease costs of
$0.8 million
and
$1.4 million
for the three and six months ended June 30, 2019, respectively, and variable lease costs of
$1.0 million
and
$1.6 million
for the three and
six
months ended
June 30, 2019
, respectively.
|
Maturity of Lease Liabilities
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
|
|||
Remaining 2019
|
$
|
10.1
|
|
$
|
0.1
|
|
$
|
10.2
|
|
2020
|
14.9
|
|
0.2
|
|
15.1
|
|
|||
2021
|
9.8
|
|
0.1
|
|
9.9
|
|
|||
2022
|
5.8
|
|
—
|
|
5.8
|
|
|||
2023
|
4.4
|
|
—
|
|
4.4
|
|
|||
Thereafter
|
4.8
|
|
—
|
|
4.8
|
|
|||
Total lease payments
|
$
|
49.8
|
|
$
|
0.4
|
|
$
|
50.2
|
|
Less: Interest
|
(3.5
|
)
|
—
|
|
(3.5
|
)
|
|||
Present value of lease liabilities
|
$
|
46.3
|
|
$
|
0.4
|
|
$
|
46.7
|
|
2019
|
$
|
15.2
|
|
2020
|
9.0
|
|
|
2021
|
5.5
|
|
|
2022
|
3.6
|
|
|
2023
|
2.6
|
|
|
Thereafter
|
4.2
|
|
|
Total
|
$
|
40.1
|
|
|
June 30,
|
|
Lease Term and Discount Rate
|
2019
|
|
Weighted-average remaining lease term (years)
|
|
|
Operating leases
|
3.8
|
|
Finance leases
|
1.7
|
|
Weighted-average discount rate
|
|
|
Operating leases
|
3.5
|
%
|
Finance leases
|
2.5
|
%
|
|
Six Months Ended
|
||
|
June 30,
|
||
Other Information
|
2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows from finance leases
|
$
|
—
|
|
Operating cash flows from operating leases
|
11.3
|
|
|
Financing cash flows from finance leases
|
0.2
|
|
|
Lease assets obtained in exchange for new finance lease liabilities
|
0.1
|
|
|
Lease assets obtained in exchange for new operating lease liabilities
|
12.7
|
|
14.
|
Commitments and Contingencies
|
15.
|
Accumulated Other Comprehensive Loss
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Foreign currency translation adjustments
|
$
|
(32.8
|
)
|
|
$
|
(31.9
|
)
|
Pension and retiree medical benefits
|
(0.3
|
)
|
|
(0.3
|
)
|
||
Cash flow hedge
|
(3.0
|
)
|
|
(5.0
|
)
|
||
Total Accumulated Other Comprehensive Loss
|
$
|
(36.1
|
)
|
|
$
|
(37.2
|
)
|
|
Foreign Currency Translation Adjustments
|
|
Pension and Post-Retirement Benefits
|
|
Cash Flow Hedge
|
|
Total
|
||||||||
December 31, 2018
|
$
|
(31.9
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
(37.2
|
)
|
Other comprehensive (loss) income before reclassifications
|
(0.9
|
)
|
|
—
|
|
|
3.9
|
|
|
3.0
|
|
||||
Amounts reclassified from Accumulated Other Comprehensive Loss
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
(1.9
|
)
|
||||
Net current period other comprehensive loss
|
(0.9
|
)
|
|
—
|
|
|
2.0
|
|
|
1.1
|
|
||||
June 30, 2019
|
$
|
(32.8
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(3.0
|
)
|
|
$
|
(36.1
|
)
|
16.
|
Income Taxes
|
17.
|
Share-Based Compensation
|
18.
|
Earnings Attributable to Tennant Company Per Share
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net Earnings Attributable to Tennant Company
|
$
|
14.8
|
|
|
$
|
12.7
|
|
|
$
|
20.2
|
|
|
$
|
16.0
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic - Weighted Average Shares Outstanding
|
18,082,492
|
|
|
17,943,450
|
|
|
18,062,591
|
|
|
17,867,641
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Share-based compensation plans
|
312,373
|
|
|
428,088
|
|
|
304,793
|
|
|
436,319
|
|
||||
Diluted - Weighted Average Shares Outstanding
|
18,394,865
|
|
|
18,371,538
|
|
|
18,367,384
|
|
|
18,303,960
|
|
||||
Basic Earnings per Share
|
$
|
0.82
|
|
|
$
|
0.71
|
|
|
$
|
1.12
|
|
|
$
|
0.90
|
|
Diluted Earnings per Share
|
$
|
0.81
|
|
|
$
|
0.69
|
|
|
$
|
1.10
|
|
|
$
|
0.88
|
|
19.
|
Separate Financial Information of Guarantor Subsidiaries
|
Condensed Consolidated Statement of Earnings
|
|||||||||||||||||||
For the three months ended June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Sales
|
$
|
141.0
|
|
|
$
|
175.0
|
|
|
$
|
147.8
|
|
|
$
|
(164.1
|
)
|
|
$
|
299.7
|
|
Cost of Sales
|
92.5
|
|
|
148.1
|
|
|
101.0
|
|
|
(162.7
|
)
|
|
178.9
|
|
|||||
Gross Profit
|
48.5
|
|
|
26.9
|
|
|
46.8
|
|
|
(1.4
|
)
|
|
120.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and Development Expense
|
6.8
|
|
|
0.3
|
|
|
1.3
|
|
|
—
|
|
|
8.4
|
|
|||||
Selling and Administrative Expense
|
27.6
|
|
|
19.6
|
|
|
45.3
|
|
|
—
|
|
|
92.5
|
|
|||||
Total Operating Expense
|
34.4
|
|
|
19.9
|
|
|
46.6
|
|
|
—
|
|
|
100.9
|
|
|||||
Profit from Operations
|
14.1
|
|
|
7.0
|
|
|
0.2
|
|
|
(1.4
|
)
|
|
19.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in Earnings of Affiliates
|
4.4
|
|
|
0.6
|
|
|
0.9
|
|
|
(5.9
|
)
|
|
—
|
|
|||||
Interest (Expense) Income, Net
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|||||
Intercompany Interest Income (Expense)
|
3.3
|
|
|
(1.4
|
)
|
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Foreign Currency Transaction Gains (Losses)
|
0.2
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||||
Other Expense, Net
|
(0.9
|
)
|
|
(0.3
|
)
|
|
2.7
|
|
|
(0.1
|
)
|
|
1.4
|
|
|||||
Total Other Expense, Net
|
2.5
|
|
|
(1.1
|
)
|
|
1.3
|
|
|
(6.0
|
)
|
|
(3.3
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit Before Income Taxes
|
16.6
|
|
|
5.9
|
|
|
1.5
|
|
|
(7.4
|
)
|
|
16.6
|
|
|||||
Income Tax Expense (Benefit)
|
1.8
|
|
|
1.9
|
|
|
(1.2
|
)
|
|
(0.7
|
)
|
|
1.8
|
|
|||||
Net Earnings Including Noncontrolling Interest
|
14.8
|
|
|
4.0
|
|
|
2.7
|
|
|
(6.7
|
)
|
|
14.8
|
|
|||||
Net Earnings Attributable to Tennant Company
|
$
|
14.8
|
|
|
$
|
4.0
|
|
|
$
|
2.7
|
|
|
$
|
(6.7
|
)
|
|
$
|
14.8
|
|
Condensed Consolidated Statement of Earnings
|
|||||||||||||||||||
For the six months ended June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Sales
|
$
|
257.5
|
|
|
$
|
323.3
|
|
|
$
|
281.1
|
|
|
$
|
(299.8
|
)
|
|
$
|
562.1
|
|
Cost of Sales
|
168.9
|
|
|
271.0
|
|
|
189.8
|
|
|
(296.6
|
)
|
|
333.1
|
|
|||||
Gross Profit
|
88.6
|
|
|
52.3
|
|
|
91.3
|
|
|
(3.2
|
)
|
|
229.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and Development Expense
|
12.4
|
|
|
0.5
|
|
|
2.7
|
|
|
—
|
|
|
15.6
|
|
|||||
Selling and Administrative Expense
|
54.9
|
|
|
38.6
|
|
|
89.2
|
|
|
—
|
|
|
182.7
|
|
|||||
Total Operating Expense
|
67.3
|
|
|
39.1
|
|
|
91.9
|
|
|
—
|
|
|
198.3
|
|
|||||
Profit from Operations
|
21.3
|
|
|
13.2
|
|
|
(0.6
|
)
|
|
(3.2
|
)
|
|
30.7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in Earnings of Affiliates
|
4.7
|
|
|
1.4
|
|
|
2.3
|
|
|
(8.4
|
)
|
|
—
|
|
|||||
Interest (Expense) Income, Net
|
(8.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
|||||
Intercompany Interest Income (Expense)
|
6.9
|
|
|
(2.8
|
)
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Foreign Currency Transaction Gains (Losses)
|
0.2
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|||||
Other Expense, Net
|
(1.1
|
)
|
|
(0.7
|
)
|
|
3.2
|
|
|
(0.1
|
)
|
|
1.3
|
|
|||||
Total Other Expense, Net
|
1.9
|
|
|
(2.1
|
)
|
|
1.2
|
|
|
(8.5
|
)
|
|
(7.5
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit Before Income Taxes
|
23.2
|
|
|
11.1
|
|
|
0.6
|
|
|
(11.7
|
)
|
|
23.2
|
|
|||||
Income Tax Expense (Benefit)
|
3.0
|
|
|
3.0
|
|
|
(0.2
|
)
|
|
(2.8
|
)
|
|
3.0
|
|
|||||
Net Earnings Including Noncontrolling Interest
|
20.2
|
|
|
8.1
|
|
|
0.8
|
|
|
(8.9
|
)
|
|
20.2
|
|
|||||
Net Earnings Attributable to Tennant Company
|
$
|
20.2
|
|
|
$
|
8.1
|
|
|
$
|
0.8
|
|
|
$
|
(8.9
|
)
|
|
$
|
20.2
|
|
Condensed Consolidated Statement of Earnings
|
|||||||||||||||||||
For the three months ended June 30, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Sales
|
$
|
126.3
|
|
|
$
|
163.9
|
|
|
$
|
151.1
|
|
|
$
|
(149.1
|
)
|
|
$
|
292.2
|
|
Cost of Sales
|
85.1
|
|
|
137.2
|
|
|
101.8
|
|
|
(149.1
|
)
|
|
175.0
|
|
|||||
Gross Profit
|
41.2
|
|
|
26.7
|
|
|
49.3
|
|
|
—
|
|
|
117.2
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and Development Expense
|
6.4
|
|
|
0.4
|
|
|
1.1
|
|
|
—
|
|
|
7.9
|
|
|||||
Selling and Administrative Expense
|
28.6
|
|
|
19.3
|
|
|
42.4
|
|
|
—
|
|
|
90.3
|
|
|||||
Total Operating Expense
|
35.0
|
|
|
19.7
|
|
|
43.5
|
|
|
—
|
|
|
98.2
|
|
|||||
Profit from Operations
|
6.2
|
|
|
7.0
|
|
|
5.8
|
|
|
—
|
|
|
19.0
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in Earnings of Affiliates
|
10.0
|
|
|
0.6
|
|
|
1.4
|
|
|
(12.0
|
)
|
|
—
|
|
|||||
Interest (Expense) Income, Net
|
(5.4
|
)
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
(5.1
|
)
|
|||||
Intercompany Interest Income (Expense)
|
3.6
|
|
|
(1.4
|
)
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Foreign Currency Transaction (Losses) Gains
|
(0.6
|
)
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
(0.3
|
)
|
|||||
Other (Expense) Income, Net
|
(0.7
|
)
|
|
(0.6
|
)
|
|
0.8
|
|
|
—
|
|
|
(0.5
|
)
|
|||||
Total Other Income (Expense), Net
|
6.9
|
|
|
(1.4
|
)
|
|
0.6
|
|
|
(12.0
|
)
|
|
(5.9
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit Before Income Taxes
|
13.1
|
|
|
5.6
|
|
|
6.4
|
|
|
(12.0
|
)
|
|
13.1
|
|
|||||
Income Tax Expense (Benefit)
|
0.4
|
|
|
1.4
|
|
|
—
|
|
|
(1.4
|
)
|
|
0.4
|
|
|||||
Net Earnings Including Noncontrolling Interest
|
12.7
|
|
|
4.2
|
|
|
6.4
|
|
|
(10.6
|
)
|
|
12.7
|
|
|||||
Net Earnings Attributable to Tennant Company
|
$
|
12.7
|
|
|
$
|
4.2
|
|
|
$
|
6.4
|
|
|
$
|
(10.6
|
)
|
|
$
|
12.7
|
|
Condensed Consolidated Statement of Earnings
|
|||||||||||||||||||
For the six months ended June 30, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Sales
|
$
|
240.0
|
|
|
$
|
312.3
|
|
|
$
|
291.5
|
|
|
$
|
(278.8
|
)
|
|
$
|
565.0
|
|
Cost of Sales
|
162.3
|
|
|
260.3
|
|
|
193.6
|
|
|
(277.5
|
)
|
|
338.7
|
|
|||||
Gross Profit
|
77.7
|
|
|
52.0
|
|
|
97.9
|
|
|
(1.3
|
)
|
|
226.3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and Development Expense
|
12.5
|
|
|
0.6
|
|
|
2.8
|
|
|
—
|
|
|
15.9
|
|
|||||
Selling and Administrative Expense
|
57.7
|
|
|
39.0
|
|
|
84.3
|
|
|
—
|
|
|
181.0
|
|
|||||
Total Operating Expense
|
70.2
|
|
|
39.6
|
|
|
87.1
|
|
|
—
|
|
|
196.9
|
|
|||||
Profit from Operations
|
7.5
|
|
|
12.4
|
|
|
10.8
|
|
|
(1.3
|
)
|
|
29.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in Earnings of Affiliates
|
14.4
|
|
|
1.1
|
|
|
4.0
|
|
|
(19.5
|
)
|
|
—
|
|
|||||
Interest (Expense) Income, Net
|
(10.5
|
)
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(10.1
|
)
|
|||||
Intercompany Interest Income (Expense)
|
7.3
|
|
|
(2.8
|
)
|
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Foreign Currency Transaction (Losses) Gains
|
(0.3
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(1.1
|
)
|
|||||
Other (Expense) Income, Net
|
(0.9
|
)
|
|
(1.2
|
)
|
|
1.5
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|||||
Total Other Income (Expense), Net
|
10.0
|
|
|
(2.9
|
)
|
|
0.6
|
|
|
(19.6
|
)
|
|
(11.9
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit Before Income Taxes
|
17.5
|
|
|
9.5
|
|
|
11.4
|
|
|
(20.9
|
)
|
|
17.5
|
|
|||||
Income Tax Expense
|
1.4
|
|
|
2.3
|
|
|
1.6
|
|
|
(3.9
|
)
|
|
1.4
|
|
|||||
Net Earnings Including Noncontrolling Interest
|
16.1
|
|
|
7.2
|
|
|
9.8
|
|
|
(17.0
|
)
|
|
16.1
|
|
|||||
Net Earnings Attributable to Noncontrolling Interest
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
(0.1
|
)
|
|
$
|
0.1
|
|
Net Earnings Attributable to Tennant Company
|
$
|
16.0
|
|
|
$
|
7.2
|
|
|
$
|
9.7
|
|
|
$
|
(16.9
|
)
|
|
$
|
16.0
|
|
Condensed Consolidated Statement of Comprehensive Income (Loss)
|
|||||||||||||||||||
For the three months ended June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Earnings Including Noncontrolling Interest
|
$
|
14.8
|
|
|
$
|
4.0
|
|
|
$
|
2.7
|
|
|
$
|
(6.7
|
)
|
|
$
|
14.8
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
1.3
|
|
|
(0.2
|
)
|
|
(21.9
|
)
|
|
22.1
|
|
|
1.3
|
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flow hedge
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Income Taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
0.1
|
|
|
—
|
|
|
0.9
|
|
|
(0.9
|
)
|
|
0.1
|
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
—
|
|
|||||
Cash flow hedge
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||||
Total Other Comprehensive Income (Loss), net of tax
|
2.4
|
|
|
(0.2
|
)
|
|
(20.7
|
)
|
|
20.9
|
|
|
2.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Comprehensive Income (Loss) Including Noncontrolling Interest
|
17.2
|
|
|
3.8
|
|
|
(18.0
|
)
|
|
14.2
|
|
|
17.2
|
|
|||||
Comprehensive Income (Loss) Attributable to Tennant Company
|
$
|
17.2
|
|
|
$
|
3.8
|
|
|
$
|
(18.0
|
)
|
|
$
|
14.2
|
|
|
$
|
17.2
|
|
Condensed Consolidated Statement of Comprehensive Income (Loss)
|
|||||||||||||||||||
For the six months ended June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Earnings Including Noncontrolling Interest
|
$
|
20.2
|
|
|
$
|
8.1
|
|
|
$
|
0.8
|
|
|
$
|
(8.9
|
)
|
|
$
|
20.2
|
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
(0.9
|
)
|
|
(0.2
|
)
|
|
(0.7
|
)
|
|
0.9
|
|
|
(0.9
|
)
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flow hedge
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|||||
Income Taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
1.0
|
|
|
(1.0
|
)
|
|
—
|
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flow hedge
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|||||
Total Other Comprehensive Income (Loss), net of tax
|
1.1
|
|
|
(0.2
|
)
|
|
0.3
|
|
|
(0.1
|
)
|
|
1.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Comprehensive Income (Loss) Including Noncontrolling Interest
|
21.3
|
|
|
7.9
|
|
|
1.1
|
|
|
(9.0
|
)
|
|
21.3
|
|
|||||
Comprehensive Income (Loss) Attributable to Tennant Company
|
$
|
21.3
|
|
|
$
|
7.9
|
|
|
$
|
1.1
|
|
|
$
|
(9.0
|
)
|
|
$
|
21.3
|
|
Condensed Consolidated Statement of Comprehensive (Loss) Income
|
|||||||||||||||||||
For the three months ended June 30, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Earnings Including Noncontrolling Interest
|
$
|
12.7
|
|
|
$
|
4.2
|
|
|
$
|
6.4
|
|
|
$
|
(10.6
|
)
|
|
$
|
12.7
|
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
(19.5
|
)
|
|
(0.3
|
)
|
|
(24.3
|
)
|
|
24.6
|
|
|
(19.5
|
)
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flow hedge
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|||||
Income Taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.3
|
|
|||||
Pension and retiree medical benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flow hedge
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||||
Total Other Comprehensive Loss, net of tax
|
(18.1
|
)
|
|
(0.3
|
)
|
|
(24.0
|
)
|
|
24.3
|
|
|
(18.1
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Comprehensive (Loss) Income Including Noncontrolling Interest
|
(5.4
|
)
|
|
3.9
|
|
|
(17.6
|
)
|
|
13.7
|
|
|
(5.4
|
)
|
|||||
Comprehensive (Loss) Income Attributable to Tennant Company
|
$
|
(5.4
|
)
|
|
$
|
3.9
|
|
|
$
|
(17.6
|
)
|
|
$
|
13.7
|
|
|
$
|
(5.4
|
)
|
Condensed Consolidated Statement of Comprehensive Income (Loss)
|
|||||||||||||||||||
For the six months ended June 30, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
Net Earnings Including Noncontrolling Interest
|
$
|
16.1
|
|
|
$
|
7.2
|
|
|
$
|
9.8
|
|
|
$
|
(17.0
|
)
|
|
$
|
16.1
|
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
(11.1
|
)
|
|
(0.5
|
)
|
|
(16.4
|
)
|
|
16.9
|
|
|
(11.1
|
)
|
|||||
Pension and retiree medical benefits
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Cash flow hedge
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|||||
Income Taxes:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
0.2
|
|
|||||
Pension and retiree medical benefits
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Cash flow hedge
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
Total Other Comprehensive Loss, net of tax
|
(13.1
|
)
|
|
(0.5
|
)
|
|
(16.2
|
)
|
|
16.7
|
|
|
(13.1
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Comprehensive Income (Loss) Including Noncontrolling Interest
|
3.0
|
|
|
6.7
|
|
|
(6.4
|
)
|
|
(0.3
|
)
|
|
3.0
|
|
|||||
Comprehensive Income Attributable to Noncontrolling Interest
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
|||||
Comprehensive Income (Loss) Attributable to Tennant Company
|
$
|
2.9
|
|
|
$
|
6.7
|
|
|
$
|
(6.5
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
2.9
|
|
Condensed Consolidated Balance Sheet
|
|||||||||||||||||||
As of June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, Cash Equivalents, and Restricted Cash
|
$
|
11.7
|
|
|
$
|
1.0
|
|
|
$
|
42.7
|
|
|
$
|
—
|
|
|
$
|
55.4
|
|
Net Receivables
|
1.0
|
|
|
104.6
|
|
|
126.4
|
|
|
—
|
|
|
232.0
|
|
|||||
Intercompany Receivables
|
31.8
|
|
|
119.0
|
|
|
—
|
|
|
(150.8
|
)
|
|
—
|
|
|||||
Inventories
|
42.5
|
|
|
18.8
|
|
|
111.7
|
|
|
(13.5
|
)
|
|
159.5
|
|
|||||
Prepaid and Other Current Assets
|
19.2
|
|
|
0.8
|
|
|
12.2
|
|
|
0.3
|
|
|
32.5
|
|
|||||
Total Current Assets
|
106.2
|
|
|
244.2
|
|
|
293.0
|
|
|
(164.0
|
)
|
|
479.4
|
|
|||||
Property, Plant and Equipment
|
248.2
|
|
|
13.2
|
|
|
152.6
|
|
|
—
|
|
|
414.0
|
|
|||||
Accumulated Depreciation
|
(166.9
|
)
|
|
(6.9
|
)
|
|
(66.9
|
)
|
|
—
|
|
|
(240.7
|
)
|
|||||
Property, Plant and Equipment, Net
|
81.3
|
|
|
6.3
|
|
|
85.7
|
|
|
—
|
|
|
173.3
|
|
|||||
Operating Lease Assets
|
5.7
|
|
|
9.8
|
|
|
29.9
|
|
|
—
|
|
|
45.4
|
|
|||||
Investment in Affiliates
|
409.5
|
|
|
13.1
|
|
|
40.0
|
|
|
(462.6
|
)
|
|
—
|
|
|||||
Intercompany Loans
|
300.5
|
|
|
—
|
|
|
—
|
|
|
(300.5
|
)
|
|
—
|
|
|||||
Goodwill
|
12.9
|
|
|
1.7
|
|
|
178.7
|
|
|
—
|
|
|
193.3
|
|
|||||
Intangible Assets, Net
|
3.6
|
|
|
2.6
|
|
|
143.9
|
|
|
—
|
|
|
150.1
|
|
|||||
Other Assets
|
8.4
|
|
|
3.2
|
|
|
17.7
|
|
|
—
|
|
|
29.3
|
|
|||||
Total Assets
|
$
|
928.1
|
|
|
$
|
280.9
|
|
|
$
|
788.9
|
|
|
$
|
(927.1
|
)
|
|
$
|
1,070.8
|
|
LIABILITIES AND TOTAL EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Portion of Long-Term Debt
|
$
|
7.0
|
|
|
$
|
—
|
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
8.3
|
|
Accounts Payable
|
39.9
|
|
|
5.5
|
|
|
53.3
|
|
|
—
|
|
|
98.7
|
|
|||||
Intercompany Payables
|
118.7
|
|
|
—
|
|
|
32.1
|
|
|
(150.8
|
)
|
|
—
|
|
|||||
Employee Compensation and Benefits
|
13.2
|
|
|
12.0
|
|
|
25.0
|
|
|
—
|
|
|
50.2
|
|
|||||
Other Current Liabilities
|
29.0
|
|
|
19.3
|
|
|
53.9
|
|
|
0.3
|
|
|
102.5
|
|
|||||
Total Current Liabilities
|
207.8
|
|
|
36.8
|
|
|
165.6
|
|
|
(150.5
|
)
|
|
259.7
|
|
|||||
Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-Term Debt
|
344.8
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
346.1
|
|
|||||
Intercompany Loans
|
3.6
|
|
|
128.0
|
|
|
168.9
|
|
|
(300.5
|
)
|
|
—
|
|
|||||
Long-Term Operating Lease Liabilities
|
4.7
|
|
|
4.6
|
|
|
19.8
|
|
|
—
|
|
|
29.1
|
|
|||||
Employee-Related Benefits
|
11.1
|
|
|
1.6
|
|
|
7.9
|
|
|
—
|
|
|
20.6
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
—
|
|
|
45.5
|
|
|
—
|
|
|
45.5
|
|
|||||
Other Liabilities
|
20.9
|
|
|
3.0
|
|
|
10.7
|
|
|
—
|
|
|
34.6
|
|
|||||
Total Long-Term Liabilities
|
385.1
|
|
|
137.2
|
|
|
254.1
|
|
|
(300.5
|
)
|
|
475.9
|
|
|||||
Total Liabilities
|
592.9
|
|
|
174.0
|
|
|
419.7
|
|
|
(451.0
|
)
|
|
735.6
|
|
|||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock
|
6.8
|
|
|
—
|
|
|
11.1
|
|
|
(11.1
|
)
|
|
6.8
|
|
|||||
Additional Paid-In Capital
|
34.5
|
|
|
77.6
|
|
|
417.4
|
|
|
(495.0
|
)
|
|
34.5
|
|
|||||
Retained Earnings
|
328.5
|
|
|
30.7
|
|
|
(1.7
|
)
|
|
(29.0
|
)
|
|
328.5
|
|
|||||
Accumulated Other Comprehensive Loss
|
(36.1
|
)
|
|
(1.4
|
)
|
|
(59.1
|
)
|
|
60.5
|
|
|
(36.1
|
)
|
|||||
Total Tennant Company Shareholders' Equity
|
333.7
|
|
|
106.9
|
|
|
367.7
|
|
|
(474.6
|
)
|
|
333.7
|
|
|||||
Noncontrolling Interest
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
(1.5
|
)
|
|
1.5
|
|
|||||
Total Equity
|
335.2
|
|
|
106.9
|
|
|
369.2
|
|
|
(476.1
|
)
|
|
335.2
|
|
|||||
Total Liabilities and Total Equity
|
$
|
928.1
|
|
|
$
|
280.9
|
|
|
$
|
788.9
|
|
|
$
|
(927.1
|
)
|
|
$
|
1,070.8
|
|
Condensed Consolidated Balance Sheet
|
|||||||||||||||||||
As of December 31, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, Cash Equivalents, and Restricted Cash
|
$
|
24.8
|
|
|
$
|
1.6
|
|
|
$
|
59.7
|
|
|
$
|
—
|
|
|
$
|
86.1
|
|
Net Receivables
|
0.9
|
|
|
94.8
|
|
|
120.5
|
|
|
—
|
|
|
216.2
|
|
|||||
Intercompany Receivables
|
30.0
|
|
|
148.9
|
|
|
—
|
|
|
(178.9
|
)
|
|
—
|
|
|||||
Inventories
|
37.1
|
|
|
13.4
|
|
|
94.7
|
|
|
(10.1
|
)
|
|
135.1
|
|
|||||
Prepaid and Other Current Assets
|
17.5
|
|
|
1.2
|
|
|
13.0
|
|
|
(0.5
|
)
|
|
31.2
|
|
|||||
Total Current Assets
|
110.3
|
|
|
259.9
|
|
|
287.9
|
|
|
(189.5
|
)
|
|
468.6
|
|
|||||
Property, Plant and Equipment
|
229.8
|
|
|
12.7
|
|
|
144.1
|
|
|
—
|
|
|
386.6
|
|
|||||
Accumulated Depreciation
|
(159.4
|
)
|
|
(6.9
|
)
|
|
(56.9
|
)
|
|
—
|
|
|
(223.2
|
)
|
|||||
Property, Plant and Equipment, Net
|
70.4
|
|
|
5.8
|
|
|
87.2
|
|
|
—
|
|
|
163.4
|
|
|||||
Operating Lease Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Investment in Affiliates
|
421.0
|
|
|
12.1
|
|
|
20.8
|
|
|
(453.9
|
)
|
|
—
|
|
|||||
Intercompany Loans
|
301.6
|
|
|
—
|
|
|
3.2
|
|
|
(304.8
|
)
|
|
—
|
|
|||||
Goodwill
|
12.9
|
|
|
1.7
|
|
|
168.1
|
|
|
—
|
|
|
182.7
|
|
|||||
Intangible Assets, Net
|
4.0
|
|
|
2.7
|
|
|
139.8
|
|
|
—
|
|
|
146.5
|
|
|||||
Other Assets
|
11.0
|
|
|
3.1
|
|
|
17.2
|
|
|
—
|
|
|
31.3
|
|
|||||
Total Assets
|
$
|
931.2
|
|
|
$
|
285.3
|
|
|
$
|
724.2
|
|
|
$
|
(948.2
|
)
|
|
$
|
992.5
|
|
LIABILITIES AND TOTAL EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Portion of Long-Term Debt
|
$
|
21.8
|
|
|
$
|
—
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
27.0
|
|
Accounts Payable
|
41.0
|
|
|
5.0
|
|
|
52.4
|
|
|
—
|
|
|
98.4
|
|
|||||
Intercompany Payables
|
149.5
|
|
|
—
|
|
|
29.5
|
|
|
(179.0
|
)
|
|
—
|
|
|||||
Employee Compensation and Benefits
|
14.4
|
|
|
17.2
|
|
|
24.5
|
|
|
—
|
|
|
56.1
|
|
|||||
Other Current Liabilities
|
22.8
|
|
|
17.6
|
|
|
27.5
|
|
|
(0.5
|
)
|
|
67.4
|
|
|||||
Total Current Liabilities
|
249.5
|
|
|
39.8
|
|
|
139.1
|
|
|
(179.5
|
)
|
|
248.9
|
|
|||||
Long-Term Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-Term Debt
|
326.5
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
328.1
|
|
|||||
Intercompany Loans
|
3.3
|
|
|
128.1
|
|
|
173.5
|
|
|
(304.9
|
)
|
|
—
|
|
|||||
Long-Term Operating Lease Liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Employee-Related Benefits
|
11.0
|
|
|
2.0
|
|
|
8.1
|
|
|
—
|
|
|
21.1
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
—
|
|
|
46.0
|
|
|
—
|
|
|
46.0
|
|
|||||
Other Liabilities
|
24.6
|
|
|
2.9
|
|
|
4.6
|
|
|
—
|
|
|
32.1
|
|
|||||
Total Long-Term Liabilities
|
365.4
|
|
|
133.0
|
|
|
233.8
|
|
|
(304.9
|
)
|
|
427.3
|
|
|||||
Total Liabilities
|
614.9
|
|
|
172.8
|
|
|
372.9
|
|
|
(484.4
|
)
|
|
676.2
|
|
|||||
Equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Stock
|
6.8
|
|
|
—
|
|
|
11.1
|
|
|
(11.1
|
)
|
|
6.8
|
|
|||||
Additional Paid-In Capital
|
28.5
|
|
|
77.5
|
|
|
399.5
|
|
|
(477.0
|
)
|
|
28.5
|
|
|||||
Retained Earnings
|
316.3
|
|
|
36.6
|
|
|
(2.5
|
)
|
|
(34.1
|
)
|
|
316.3
|
|
|||||
Accumulated Other Comprehensive Loss
|
(37.2
|
)
|
|
(1.6
|
)
|
|
(58.7
|
)
|
|
60.3
|
|
|
(37.2
|
)
|
|||||
Total Tennant Company Shareholders' Equity
|
314.4
|
|
|
112.5
|
|
|
349.4
|
|
|
(461.9
|
)
|
|
314.4
|
|
|||||
Noncontrolling Interest
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
(1.9
|
)
|
|
1.9
|
|
|||||
Total Equity
|
316.3
|
|
|
112.5
|
|
|
351.3
|
|
|
(463.8
|
)
|
|
316.3
|
|
|||||
Total Liabilities and Total Equity
|
$
|
931.2
|
|
|
$
|
285.3
|
|
|
$
|
724.2
|
|
|
$
|
(948.2
|
)
|
|
$
|
992.5
|
|
Condensed Consolidated Statement of Cash Flows
|
|||||||||||||||||||
For the six months ended June 30, 2019
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
10.1
|
|
|
$
|
(0.5
|
)
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
10.9
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of Property, Plant and Equipment
|
(19.9
|
)
|
|
(0.1
|
)
|
|
(5.4
|
)
|
|
—
|
|
|
(25.4
|
)
|
|||||
Proceeds from Principal Payments Received on Long-Term Note Receivable
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Acquisition of Businesses, Net of Cash, Cash Equivalents and Restricted Cash Acquired
|
—
|
|
|
—
|
|
|
(8.9
|
)
|
|
—
|
|
|
(8.9
|
)
|
|||||
Purchase of Intangible Assets
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||||
Loan Payments from Parent
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
0.4
|
|
|
—
|
|
|||||
Net Cash Used in Investing Activities
|
(19.9
|
)
|
|
(0.1
|
)
|
|
(15.0
|
)
|
|
0.4
|
|
|
(34.6
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from Credit Facility Borrowings
|
25.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|||||
Repayments of Debt
|
(21.8
|
)
|
|
—
|
|
|
(4.1
|
)
|
|
—
|
|
|
(25.9
|
)
|
|||||
Change in Finance Lease Obligations
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||||
Loan Payments to Subsidiaries
|
0.4
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|||||
Proceeds from Issuances of Common Stock
|
1.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|||||
Purchase of Noncontrolling Owner Interest
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||||
Dividends Paid
|
(8.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|||||
Net Cash Used in Financing Activities
|
(3.2
|
)
|
|
—
|
|
|
(4.7
|
)
|
|
(0.4
|
)
|
|
(8.3
|
)
|
|||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
(0.1
|
)
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.3
|
|
|||||
Net Decrease in Cash, Cash Equivalents and Restricted Cash
|
(13.1
|
)
|
|
(0.6
|
)
|
|
(17.0
|
)
|
|
—
|
|
|
(30.7
|
)
|
|||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
24.8
|
|
|
1.6
|
|
|
59.7
|
|
|
—
|
|
|
86.1
|
|
|||||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
11.7
|
|
|
$
|
1.0
|
|
|
$
|
42.7
|
|
|
$
|
—
|
|
|
$
|
55.4
|
|
Condensed Consolidated Statement of Cash Flows
|
|||||||||||||||||||
For the six months ended June 30, 2018
|
|||||||||||||||||||
(in millions)
|
Parent
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Total Tennant Company
|
||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Cash Provided by (Used in) Operating Activities
|
$
|
27.0
|
|
|
$
|
1.4
|
|
|
$
|
(2.4
|
)
|
|
$
|
—
|
|
|
$
|
26.0
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of Property, Plant and Equipment
|
(2.3
|
)
|
|
—
|
|
|
(5.4
|
)
|
|
—
|
|
|
(7.7
|
)
|
|||||
Proceeds from Disposal of Property, Plant and Equipment
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Proceeds from Principal Payments Received on Long-Term Note Receivable
|
—
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|||||
Purchase of Intangible Asset
|
(1.0
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(1.2
|
)
|
|||||
Loan Payments from Parent
|
—
|
|
|
—
|
|
|
1.5
|
|
|
(1.5
|
)
|
|
—
|
|
|||||
Net Cash Used in Investing Activities
|
(3.3
|
)
|
|
—
|
|
|
(3.3
|
)
|
|
(1.5
|
)
|
|
(8.1
|
)
|
|||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan Payments to Subsidiaries
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|||||
Repayment of Debt
|
(18.0
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(18.1
|
)
|
|||||
Change in Finance Lease Obligations
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Proceeds from Issuance of Common Stock
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|||||
Dividends Paid
|
(7.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|||||
Net Cash (Used in) Provided by Financing Activities
|
(23.4
|
)
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
(21.9
|
)
|
|||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
|
0.1
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.6
|
)
|
|||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
0.4
|
|
|
1.4
|
|
|
(6.4
|
)
|
|
—
|
|
|
(4.6
|
)
|
|||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
18.5
|
|
|
0.5
|
|
|
40.0
|
|
|
—
|
|
|
59.0
|
|
|||||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
18.9
|
|
|
$
|
1.9
|
|
|
$
|
33.6
|
|
|
$
|
—
|
|
|
$
|
54.4
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30
|
|
June 30
|
||||||||||||||||||||||||
|
2019
|
|
%
|
|
2018
|
|
%
|
|
2019
|
|
%
|
|
2018
|
|
%
|
||||||||||||
Net Sales
|
$
|
299.7
|
|
|
100.0
|
|
|
$
|
292.2
|
|
|
100.0
|
|
|
$
|
562.1
|
|
|
100.0
|
|
|
$
|
565.0
|
|
|
100.0
|
|
Cost of Sales
|
178.9
|
|
|
59.7
|
|
|
175.0
|
|
|
59.9
|
|
|
333.1
|
|
|
59.3
|
|
|
338.7
|
|
|
59.9
|
|
||||
Gross Profit
|
120.8
|
|
|
40.3
|
|
|
117.2
|
|
|
40.1
|
|
|
229.0
|
|
|
40.7
|
|
|
226.3
|
|
|
40.1
|
|
||||
Operating Expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Research and Development Expense
|
8.4
|
|
|
2.8
|
|
|
7.9
|
|
|
2.7
|
|
|
15.6
|
|
|
2.8
|
|
|
15.9
|
|
|
2.8
|
|
||||
Selling and Administrative Expense
|
92.5
|
|
|
30.9
|
|
|
90.3
|
|
|
30.9
|
|
|
182.7
|
|
|
32.5
|
|
|
181.0
|
|
|
32.0
|
|
||||
Total Operating Expense
|
100.9
|
|
|
33.7
|
|
|
98.2
|
|
|
33.6
|
|
|
198.3
|
|
|
35.3
|
|
|
196.9
|
|
|
34.8
|
|
||||
Profit from Operations
|
19.9
|
|
|
6.6
|
|
|
19.0
|
|
|
6.5
|
|
|
30.7
|
|
|
5.5
|
|
|
29.4
|
|
|
5.2
|
|
||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Income
|
0.9
|
|
|
0.3
|
|
|
0.9
|
|
|
0.3
|
|
|
1.7
|
|
|
0.3
|
|
|
1.7
|
|
|
0.3
|
|
||||
Interest Expense
|
(5.4
|
)
|
|
(1.8
|
)
|
|
(6.0
|
)
|
|
(2.1
|
)
|
|
(10.5
|
)
|
|
(1.9
|
)
|
|
(11.8
|
)
|
|
(2.1
|
)
|
||||
Net Foreign Currency Transaction Loss
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
(0.2
|
)
|
||||
Other Income (Expense), Net
|
1.4
|
|
|
0.5
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
1.3
|
|
|
0.2
|
|
|
(0.7
|
)
|
|
(0.1
|
)
|
||||
Total Other Expense, Net
|
(3.3
|
)
|
|
(1.1
|
)
|
|
(5.9
|
)
|
|
(2.0
|
)
|
|
(7.5
|
)
|
|
(1.3
|
)
|
|
(11.9
|
)
|
|
(2.1
|
)
|
||||
Profit Before Income Taxes
|
16.6
|
|
|
5.5
|
|
|
13.1
|
|
|
4.5
|
|
|
23.2
|
|
|
4.1
|
|
|
17.5
|
|
|
3.1
|
|
||||
Income Tax Expense
|
1.8
|
|
|
0.6
|
|
|
0.4
|
|
|
0.1
|
|
|
3.0
|
|
|
0.5
|
|
|
1.4
|
|
|
0.2
|
|
||||
Net Earnings Including Noncontrolling Interest
|
14.8
|
|
|
4.9
|
|
|
12.7
|
|
|
4.3
|
|
|
20.2
|
|
|
3.6
|
|
|
16.1
|
|
|
2.8
|
|
||||
Net Earnings Attributable to Tennant Company
|
$
|
14.8
|
|
|
4.9
|
|
|
$
|
12.7
|
|
|
4.3
|
|
|
$
|
20.2
|
|
|
3.6
|
|
|
$
|
16.0
|
|
|
2.8
|
|
Net Earnings Attributable to Tennant Company per Share - Diluted
|
$
|
0.81
|
|
|
|
|
$
|
0.69
|
|
|
|
|
|
$
|
1.10
|
|
|
|
|
$
|
0.88
|
|
|
|
|
2019 v. 2018
|
||
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30
|
|
June 30
|
Organic Net Sales
|
3.8%
|
|
1.6%
|
Foreign Currency
|
(2.6%)
|
|
(3.0%)
|
Acquisitions and Divestitures
|
1.4%
|
|
0.9%
|
Total Net Sales
|
2.6%
|
|
(0.5%)
|
•
|
An organic sales increase of approximately
3.8%
, which excludes the effects of foreign currency exchange and acquisitions and divestitures. The organic sales growth was primarily due to increases in the Americas region, particularly in the strategic account channel in addition to strength in service, parts and consumables sales in North America and broad-based growth in Brazil. The organic sales growth was partially offset by sales declines in the EMEA region due to general market weakness across the entire region and declines in the APAC region due to declines in Korea.
|
•
|
An increase in sales of
1.4%
due to our acquisition of Gaomei.
|
•
|
An unfavorable impact from foreign currency exchange of approximately
2.6%
.
|
•
|
An organic sales increase of approximately
1.6%
, which excludes the effects of foreign currency exchange and acquisitions and divestitures. The organic sales increase was primarily due to increases in the Americas business from strong growth in our strategic account and direct sales channels in North America, strength in Latin America from growth in Brazil and Mexico, and growth in our APAC region from strength in China and Australia. The organic sales increase was partially offset by a decrease in our EMEA region from general market weakness across the entire region and from higher comparable sales growth in the first six months of 2018.
|
•
|
An increase in sales of
0.9%
due to our acquisition of Gaomei.
|
•
|
An unfavorable impact from foreign currency exchange of approximately
3.0%
.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
June 30
|
|
June 30
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
%
|
|
2019
|
|
2018
|
|
%
|
||||||||
Americas
|
|
$
|
189.5
|
|
|
$
|
178.8
|
|
|
6.0
|
|
$
|
350.3
|
|
|
$
|
341.4
|
|
|
2.6
|
Europe, Middle East and Africa
|
|
80.9
|
|
|
87.4
|
|
|
(7.4)
|
|
158.9
|
|
|
176.2
|
|
|
(9.8)
|
||||
Asia Pacific
|
|
29.3
|
|
|
26.0
|
|
|
12.7
|
|
52.9
|
|
|
47.4
|
|
|
11.6
|
||||
Total
|
|
$
|
299.7
|
|
|
$
|
292.2
|
|
|
2.6
|
|
$
|
562.1
|
|
|
$
|
565.0
|
|
|
(0.5)
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
For the Quarter Ended June 30, 2019
|
|
Total Number
of Shares
Purchased
(1)
|
|
Average Price
Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||
April 1 - 30, 2019
|
|
3,170
|
|
|
$
|
66.25
|
|
|
—
|
|
|
1,392,263
|
|
May 1 - 31, 2019
|
|
68
|
|
|
63.14
|
|
|
—
|
|
|
1,392,263
|
|
|
June 1 - 30, 2019
|
|
72
|
|
|
59.51
|
|
|
—
|
|
|
1,392,263
|
|
|
Total
|
|
3,310
|
|
|
$
|
66.04
|
|
|
—
|
|
|
1,392,263
|
|
(1)
|
Includes 3,310 shares delivered or attested to in satisfaction of the exercise price and/or tax withholding obligations by employees who exercised stock options or restricted stock under employee share-based compensation plans.
|
Item 6.
|
Exhibits
|
Item #
|
|
Description
|
|
Method of Filing
|
|
3i
|
|
|
|
Incorporated by reference to Exhibit 3i to the Company’s report on Form 10-Q for the quarterly period ended June 30, 2006.
|
|
3ii
|
|
|
|
Incorporated by reference to Exhibit 3iii to the Company’s Form 8-K dated December 14, 2010.
|
|
3iii
|
|
|
|
Incorporated by reference to Exhibit 3iii to the Company's report on Form 10-Q for the quarterly period ended March 31, 2018.
|
|
4.1
|
|
|
|
Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed April 24, 2017.
|
|
31.1
|
|
|
|
Filed herewith electronically.
|
|
31.2
|
|
|
|
Filed herewith electronically.
|
|
32.1
|
|
|
|
Filed herewith electronically.
|
|
32.2
|
|
|
|
Filed herewith electronically.
|
|
101
|
|
|
The following financial information from Tennant Company's Quarterly Report on Form 10-Q for the period ended June 30, 2019, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Consolidated Statements of Earnings for the three and six months ended June 30, 2019 and 2018; (ii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018; (iii) Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018; (v) Consolidated Statements of Equity; and (vi) Notes to the Consolidated Financial Statements.
|
|
Filed herewith electronically.
|
|
|
|
|
TENNANT COMPANY
|
|
|
|
|
|
Date:
|
|
August 1, 2019
|
|
/s/ H. Chris Killingstad
|
|
|
|
|
H. Chris Killingstad
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
|
August 1, 2019
|
|
/s/ Keith A. Woodward
|
|
|
|
|
Keith A. Woodward
Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
|
|
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