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TENNANT COMPANY REPORTS INCREASED SALES AND EARNINGS FOR THIRD QUARTER

 MINNEAPOLIS, Oct. 14 /PRNewswire/ -- Tennant Company (NASDAQ: TANT) CEO Roger L. Hale today announced results for the third quarter and nine months ended Sept. 30, 1993.
 Sales and Earnings Increase
 Net earnings for the 1993 third quarter were $3.2 million, or 65 cents per share, up 3 percent compared with last year's $3.1 million, or 63 cents per share. Net sales of $53.9 million were up 2 percent from the $53.0 million reported for 1992's third quarter.
 For the nine-month period ended Sept. 30, 1993, net earnings were $6.7 million, or $1.37 per share, versus $4.6 million, or 94 cents per share, for the same period last year. However, 1992 results were affected by an extraordinary gain and an accounting change. On a comparable basis, 1993 nine-month earnings of $6.7 million, or $1.37 per share, were down 22 percent from last year's earnings before extraordinary gain and cumulative effect of accounting change of $8.6 million, or $1.75 per share.
 Nine-month sales of $156.0 million were up 1 percent from the $154.1 million reported for the same period in 1992. North American sales increased 3 percent and overseas sales declined 3 percent. A stronger U.S. dollar reduced consolidated sales by $1.4 million.
 New Products Performing Well,
 Severe European Recession Impacting Earnings
 Commenting on results, Hale said, "Our core business, industrial equipment in North America, is performing quite well on the strength of a number of new products. While several international markets are also performing well, our
European business continues to suffer from a severe recession. We have been counteracting the resulting earnings drop with expense control actions in all parts of our business. The 14 percent gain in third quarter profit from operations, on a 2 percent sales increase, shows the effects of these efforts."
 Fourth Quarter Outlook
 Discussing the outlook for the remainder of 1993, Hale said, "Europe will have a significant negative effect on fourth quarter earnings. On the positive side, we are expecting strong sales gains in several key areas, and our expense control and product cost reduction efforts will continue. The net result should be a double-digit percentage increase in profit from operations. However, a gain in fourth quarter net earnings will be more challenging due to last year's unusually low effective tax rate."
 Fourth quarter 1992 net earnings were $4.6 million, or 93 cents per share, on sales of $60.7 million. The quarter's effective tax rate was an unusually low 11 percent due to a one-time reduction in tax expense of $1.0 million.
 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)
 Three Months Ended Percent
 9/30/93 9/30/92 Change
 Net sales $53,846 $52,970 2
 Less:
 Cost of sales 31,236 29,667 5
 Selling and administrative expenses 18,023 19,272 (6)
 Profit from operations 4,587 4,031 14
 Other income (expense) 95 565 (83)
 Profit before income taxes, extra-
 ordinary gain and cumulative
 effect of accounting change 4,682 4,596 2
 Income tax expense 1,500 1,498 --
 Earnings before extraordinary gain
 and cumulative effect of accounting
 change 3,182 3,098 3
 Extraordinary gain (net of income
 taxes of $208) -- -- --
 Cumulative effect of accounting change
 (net of income taxes of $2,558) -- -- --
 Net earnings $3,182 $3,098 3
 Percent of net sales 5.9 5.8 --
 PER SHARE
 Earnings before extraordinary gain
 and cumulative effect of accounting
 change $.65 $.63 --
 Extraordinary gain -- -- --
 Cumulative effect of accounting change -- -- --
 Net earnings $.65 $.63 --
 Dividends paid $.32 $.30 --
 Average number of shares 4,913,000 4,911,600 --
 Nine Months Ended Percent
 9/30/93 9/30/92 Change
 Net sales $156,040 $154,135 1
 Less:
 Cost of sales 89,762 86,443 4
 Selling and administrative expenses 57,188 56,531 1
 Profit from operations 9,090 11,161 (19)
 Other income (expense) 1,021 1,699 (40)
 Profit before income taxes, extra-
 ordinary gain and cumulative
 effect of accounting change 10,111 12,860 (21)
 Income tax expense 3,367 4,257 (21)
 Earnings before extraordinary gain
 and cumulative effect of accounting
 change 6,744 8,603 (22)
 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 $6,744 $4,642 45
 Percent of net sales 4.3 3.0 --
 PER SHARE
 Earnings before extraordinary gain
 and cumulative effect of accounting
 change $1.37 $1.75 --
 Extraordinary gain -- $.08 --
 Cumulative effect of accounting change -- $(.89) --
 Net earnings $1.37 $.94 --
 Dividends paid $.96 $.90 --
 Average number of shares 4,920,300 4,913,600 --
 -0- 10/14/93
 /CONTACT: Richard Snyder, treasurer of Tennant Company, 612-540-1208/
 (TANT)


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

DB-DS -- MN018 -- 2286 10/14/93 13:21 EDT
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Date:Oct 14, 1993
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