Tennant Company reported a solid performance for the third quarter and the first nine months of 2024, with net sales reaching $315.8 million for the three months ended September 30, 2024, a 3.6% increase from $304.7 million in the same period of 2023. For the nine months, net sales totaled $957.8 million, up 2.7% from $932.2 million in the prior year. The growth was driven by a combination of price increases and contributions from recent acquisitions, particularly in the EMEA region.
Gross profit for Q3 2024 was $133.8 million, slightly up from $132.0 million in Q3 2023, while gross profit for the nine months increased to $414.0 million from $397.0 million. The gross profit margin for Q3 2024 was 42.4%, a decrease of 90 basis points compared to the previous year, but the margin for the nine months improved to 43.2%, reflecting effective price realization and cost-saving initiatives.
Operating income for Q3 2024 was $30.6 million, down from $34.7 million in Q3 2023, and for the nine months, it decreased to $106.7 million from $114.1 million. Net income for Q3 2024 was $20.8 million, compared to $22.9 million in Q3 2023, while net income for the nine months was $77.1 million, down from $78.5 million in the prior year. Basic earnings per share for Q3 2024 were $1.11, down from $1.23, and for the nine months, it was $4.10, compared to $4.25.
The company’s total assets increased to $1,216.1 million as of September 30, 2024, from $1,113.4 million at the end of 2023, while total liabilities rose to $567.6 million from $535.1 million. Retained earnings also grew to $608.6 million from $547.4 million. Tennant's total shareholders' equity increased to $647.2 million from $577.0 million.
Strategically, Tennant Company acquired M&F Management and Financing GmbH on February 29, 2024, enhancing its presence in the EMEA region. This acquisition contributed $7.5 million in revenue and $1.1 million in net income for Q3 2024. The company also faced macroeconomic challenges, including inflation and geopolitical risks, which impacted demand, particularly in the EMEA and APAC regions.
Cash flow from operating activities for the nine months ended September 30, 2024, was $52.2 million, a significant decrease from $124.6 million in the same period in 2023, primarily due to working capital consumption and investments in an ERP modernization project. Net cash used in investing activities increased to $69.1 million, driven by the acquisition of TCS and an investment in Brain Corp.
About TENNANT CO
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