Printer Friendly

TENNANT COMPANY REPORTS HIGHER SALES FOR 1992; ACCOUNTING CHANGE REDUCES EARNINGS

 MINNEAPOLIS, Feb. 11 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale today announced results for the fourth quarter and year ended Dec. 31, 1992.
 Accounting Change Lowers 1992 Net Earnings
 Net earnings for 1992 were $9.2 million, or $1.88 per share, versus $12.0 million, or $2.42 per share, for the prior year. The 23 percent decrease resulted primarily from adopting Statement of Financial Accounting Standard (SFAS) 106 for post retirement medical benefits (SFAS 109, relating to income taxes, was also adopted.) Results for the first nine-months of 1992 will be restated to reflect a $4.4 million, or 88 cents per share, charge to net earnings for the cumulative effect of this accounting change relating to prior years, and $297,000, or 6 cents per share, for 1992 expenses.
 Earnings before extraordinary gain and cumulative effect of accounting change were $13.2 million, or $2.68 per share. The 10 percent increase from last year's $12.0 million, or $2.42 per share, came from a $1.0 million one-time reduction in tax expense. Profit before income taxes declined 3 percent for several reasons: the development and introduction of new industrial products, market entry and expansion activities, international financial market turmoil (especially Europe), and current-year expense related to the accounting change (SFAS 106).
 Net sales of $214.9 million were up 8 percent from the $198.6 million reported for 1991. Sales in North America and overseas were each up 8 percent despite weak or deteriorating economic conditions in key markets. While 1992's significant currency fluctuations had a minimal net effect on translated sales, earnings were reduced by an estimated $0.4 million, or 9 cents per share.
 Sales and Earnings Rise in Fourth Quarter
 For the three months ended Dec. 31, 1992, net earnings were $4.6 million, or 93 cents per share, versus $3.6 million, or 74 cents per share, for the same quarter last year. The 26 percent increase was due to the $1.0 million reduction in tax expense. Profit before income taxes declined 7 percent for the reasons mentioned previously as contributing to the annual decline.
 Net sales of $60.7 million for the fourth quarter were up 12 percent from the prior year's $54.0 million.
 Financial Condition Continues Strong
 Tennant's financial position remained strong throughout 1992. The company finished the year with debt equal to 5 percent of capital, and shareholders' equity per share increased 10 percent to $17.28 from $15.74. Return on beginning shareholders' equity was 17.2 percent (before extraordinary gain and cumulative effect of accounting change), versus 16.4 percent for 1991.
 Increased Investment in Industrial and Commercial Equipment
 In commenting on the year, Hale said, "In 1992, margins came under pressure due to turbulent economic conditions in key markets and a planned step-up in the level of investment in growth. For industrial equipment, this involves enhancing our distribution network internationally, and updating and expanding the product line. In 1992, we introduced a redesigned mid-sized rider sweeper line. Additional introductions are planned over the next several years including the 1993 replacement of our largest sweepers. Industrial equipment is our core business, and we are focused on increasing our strong worldwide market position.
 "Another side of our business, commercial equipment, is a prime growth opportunity. In 1992 we began an entry into selected international markets with products exported from the United States. Equally important, we continued the expansion of distribution in North America and increased product development efforts.
 1993: Earnings Under Pressure From Poor International Economic Conditions
 Discussing the outlook, Hale said, "Looking forward to 1993 and beyond, we believe Tennant has a unique opportunity to significantly improve its competitive position in industrial and commercial products. We therefore plan to continue pursuing a more aggressive growth strategy.
 "With the poor economic conditions that currently exist in key overseas markets, earnings will be under pressure at least through the first half of 1993. Better results are possible in the second half if conditions improve as expected in Europe and Japan, and the economy continues to gain momentum in North America. Under these assumptions, we believe an increase in full-year profit before income taxes is possible. However, it will be more of a challenge to achieve an increase in after-tax earnings, excluding extraordinary gain and cumulative effect of accounting change, due to 1992's unusually low income tax rate," Hale concluded.
 Company Profile
 Tennant is a world leading manufacturer of floor maintenance equipment. Products include industrial and commercial floor scrubbers, sweepers, buffers and polishers, other specialized floor cleaning equipment, and a line of industrial floor coatings. Tennant's business currently is concentrated in industrial maintenance equipment, where the company has a leading market share in North America and most international areas. Tennant's stock is traded on NASDAQ under the symbol "TANT."
 TENNANT COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS
 (In thousands, except per share data)
 (Unaudited)
 EARNINGS Three Months Ended 12 Months Ended
 12/31/92 12/31/91 Pct. 12/31/92 12/31/91 Pct.
 Change Change
 Net sales $60,728 $53,986 12 $214,863 $198,575 8
 Less:
 Cost of sales 35,349 30,986 14 121,792 112,147 9
 Selling and
 administrative
 expenses 20,411 18,103 13 76,942 69,707 10
 Profit from
 operations 4,968 4,897 1 16,129 16,721 (4)
 Other income 165 646 (74) 1,864 1,800 4
 Earnings before income
 taxes, extraordinary
 gain and cumulative
 effect of accounting
 change 5,133 5,543 (7) 17,993 18,521 (3)
 Income tax expense 546 1,906 (71) 4,803 6,529 (26)
 Earnings before
 extraordinary gain
 and cumulative
 effect of accounting
 change 4,587 3,637 26 13,190 11,992 10
 Extraordinary gain
 (net of income
 taxes of $208) --- --- -- 395 --- --
 Cumulative effect of
 accounting change
 (net of income taxes
 of $2,558) --- --- -- (4,356) --- --
 Net earnings $4,587 $3,637 26 $9,229 $11,992 (23)
 Percent of net sales 7.6 6.7 -- 4.3 6.0 --
 PER SHARE
 Earnings before
 extraordinary gain
 and cumulative effect
 of accounting change .93 .74 -- 2.68 2.42 --
 Extraordinary gain --- --- -- .08 --- --
 Cumulative effect of
 accounting change --- --- -- (.88) --- --
 Net earnings $.93 $.74 -- $1.88 $2.42 --
 Dividends paid $.32 $.30 -- $1.22 $1.20 --
 Average number of
 shares 4,922,200 4,908,600 -- 4,915,800 4,946,200 --
 -0- 2/11/93
 /CONTACT: Richard Snyder, treasurer of Tennant, 612-540-1208/
 (TANT)


CO: Tennant Company ST: Minnesota IN: SU: ERN

AL -- MN023 -- 5519 02/11/93 08:31 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 11, 1993
Words:1092
Previous Article:MARION MERRELL DOW INC. AWARDS LABORATORY DESIGN WORK TO JACOBS
Next Article:ALPHA-BETA TECHNOLOGY, INC. REPORTS YEAR-END FINANCIAL RESULTS
Topics:


Related Articles
TENNANT COMPANY REPORTS INCREASED SALES, EARNINGS DECLINE FOR SECOND QUARTER AND SIX MONTHS
TENNANT COMPANY REPORTS INCREASED SALES AND EARNINGS FOR THIRD QUARTER
TENNANT COMPANY REPORTS STABLE NET EARNINGS, SALES FOR 1993; FOURTH QUARTER EARNINGS LOWER DUE TO RESTRUCTURING CHARGES
TENNANT COMPANY REPORTS HIGHER SALES AND EARNINGS FOR FIRST QUARTER 1994
TENNANT CO. REPORTS RECORD SALES AND OPERATING EARNINGS FOR SECOND QUARTER AND SIX MONTHS
TENNANT COMPANY REPORTS RECORD SALES AND OPERATING EARNINGS FOR THIRD QUARTER AND NINE MONTHS
TENNANT COMPANY REPORTS RECORD SALES AND EARNINGS FOR FIRST QUARTER 1995
TENNANT COMPANY REPORTS RECORD SALES AND OPERATING EARNINGS FOR SECOND QUARTER, SIX MONTHS
TENNANT COMPANY REPORTS RECORD SALES AND OPERATING NET EARNINGS FOR THIRD QUARTER, NINE MONTHS
Tennant Company Reports Higher Sales and Earnings for Third Quarter and Nine Months

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters