TNC - Earnings call transcript Q1 2021

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Operator

Good morning. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to Tennant Company's 2021 First Quarter Earnings Conference call. This call is being recorded. [Operator Instructions] Thank you for participating in Tennant Company's 2021 First Quarter Earnings Conference Call. Mr. is meeting today's Beginning William Prate, and Planning Analysis Global Director Relations for of Investor Financial Tennant and Senior Company. Mr. Prate, you may begin.

William Prate

Thank welcome to earnings morning, and Analysis everyone, first Financial Relations. of Good William XXXX Investor Director I'm conference you, quarter call. Planning Senior Global and Tennant Rebecca. Company's Prate, and

quarter at our Dave for operations Tennant's presentation and to update and Fay open President the Investor call today's Dave cover investors.tennantco.com. questions. we will remarks, CEO; CFO. will website available this me call you accompanies and their Fay we and West, Joining on enterprise On guidance Huml, is the slide today and strategy, regarding financials. performance our our will brief and first After a you are XXXX. conference Please note on Vice will Relations President and our Senior call,

that Exchange to affect be we we Such differ and our Safe may are our These may and We documents to statements. today's materially may questions and begin, Securities our for expectations actual the contained a file statement, Commission. Harbor uncertainties risks Before review you and uncertainties from future news our with the morning uncertainties statements in encourage those and company's please remarks to in the this results risks answers documents, the are the subject of forward-looking advised contain our and that release risks those described regarding and particularly of description statements performance. results.

measures certain we this include conference non-GAAP or items. call, on Additionally, that discuss exclude will

GAAP and measures a includes release earnings non-GAAP comparable results. reconciliation our these of quarter measures GAAP to first XXXX Our the

posted Dave. and Investor this Business Wire on to website turn over investors.tennantco.com. the release morning at was is issued Our now I'll our earnings call Relations via also

Dave Huml

all one thank a ones we that past your regions. demand, the Thanks, quarter, way stay year and hope to organic demand to the by strong you, pandemic are able that pleased report the you operational the highlighted continuing us. We were to made We we are achieved increased navigated due expectations improvements joining Today, in date. we everyone, and to loved that the first and to in customer for have we exceeded meet revenue to our William, and growth safe. thanks

investing we've of resourcing management Specifically, the approach customers. the remained proud of This our serving ramp enterprise markets while worked yield past commitment signs continues of line prudent showing to our bottom am to especially committed global on ability long to staying our to term and Also, focused recovery. strategy, the in unprecedented overcome quickly our I preserved way as began strategy operational to up solid year. challenges expense team and results. ongoing our our

full uncertainty, year market we order pose the the sales positive in will in of raising have continue beginning year While growth are a the half us of account encouraging and our give and demand market overall guidance. second into to last trends saw represented strong recovery, the pandemic certainly QX the taken optimism which that we

required from Our a strong Tennant. effort result. everyone not inevitable QX was It or simple at significant

us and been planned cost-reduction supply mitigate was For the end the Key operating commodity plant have any value strategy approach adjusting not have unveiled for, from model at the implementing improved example, improvements from issues, to term we what discounting optimization, aggressive and inflation, challenges include us but it did not programs XXXX. engineering, our transportation our to operations of year, that faced go-to-market have could they stop long same more and we a shortages coatings significant parts the and productivity tirelessly of to advantage, in supply worked business chain impact. At resources the teams where regions. challenges an us is these past profitable and and of toward related while disruptions. of allowed our the of much sale to impact based XXXX larger example in our financial redirecting have strategic offset delivering year strive win leverage also the specific we activities. driving recent competitive But time,

also All of product combined across meet expansion the actions were product including and operations needs read designed have which these and an In to gross to our margins XXXX, resourcing is to of out. number initiatives, now broad simplifying a offering, our of all yield that in beginning investments better customers. of development, we maintained

products, Initial with customer new our including As new a our and the feedback now offerings well offerings product into a solutions positioned mid-tier positive. a floor portfolio scrubber, TXXAMR, cleaning commercial launch robotic launches have new regarding industrial full been autonomous of to standard result, we're market. recovering of

not pre-pandemic ahead. regions, year the remain have we yet While levels across reached all for sales optimistic we

aim service will quality, in Going our we customers of forward, an our strategy leadership continue and against and our industry to with enterprise will maintaining serve execute innovation.

for have future their impacted turn from importance Tennant the visible customers. to acute, trusted the benefits questions term more and the which has pandemic in invisible employees. needs. ways emphasis and grown greater and accelerated all and which something commercial we new one the to and with cleaning Regarding about partner cleaning ultimately we on we less our a technology we customers and how meeting continue will Certainly, At and the and beneficial long think be We new time, a has their the same for us of how pandemic for believe trends products market labor customers services places COVID offer. cleaning The the to tangible of desires are the benefit most industrial hear challenges our importance more of of elevated industry. working, is be the of taught cleaning, has the often the been about

a Lastly, I'd leadership say about word like to our transition.

Fay Senior Commercial President Officer; promotion Innovation of and numerous Energy Stokes' CFO. Kristin CFO President to Fay Balinski's Corporation. and is former welcomed And positions, Technology. we Chief and GATX has SunCoke saw at The General first including to Senior most promotion changes, held of our as Rusty level number West Vice including positions Counsel; a United leadership quarter executive. accomplished finance of senior She promotion and the new recently, an Vice PepsiAmericas to Zay's Airlines, is Barb and

at as As will talented CEO, so our culture I am aboard. Collectively, financials. hard thrilled be to over welcome continue to turn a enterprise with group knowledge discussion worked the on strategy With the I managerial for executives. industry a and that Fay, of seamless Tennant's that, call such of company execute will the legacy appreciation working everyone to expertise, of place. a put corporate in has their transition to we ensure Fay and

Fay West

in this at to Thank you, I'm Dave. excited look to forward Tennant's be here, I opportunities and journey, Hello, everyone. we have the particularly point ahead.

Italy the direct had by currency large lapping in that in $XXX.X declined on Sales to Asian negative for year-over-year, the QX the sales, increased this strategic which business in the Americas which Africa; the and channels and Europe, Japan, reflecting foreign America, of For period organically, of last along in which and increased foreign as favorable year, Tennant a the included EMEA driven accounts includes which sales up as X.X%. currency XX.X% with markets. China, other the some region Middle impact and divestiture In pandemic foreign by Sales in X.X%, EMEA, Pacific, X%, Organically, effect distribution quarter, benefited of X.X%. which Latin which or and results in earlier a impact and Americas, were the XXXX, negative X.X%. from X the the year of a with includes North reflecting well solid orders X% X.X% period divestiture performance prior the along the of of Germany of growth in into and exclude group down limited first from of also first impacted sales the of America, America a currency Asia impact currency effect all quarter the X.X%, East net prior million, Tennant Australia North Organic the divestitures, and growth XX.X%. reported and X.X% region Brazil. covers of coatings due grew effect the France, geographies: year. year negative of sales

particularly region APAC Africa. countries, Sales positive of pandemic and XX.X%. year. did an have in restrictions to currency pandemic-related of from East and related organic recorded Kingdom, rose channels impact region Pacific the United markets, growth the rebounded product X.X%. Central sales On all Middle strongly Tennant across Asia categories continue as in some in in region effect However, Europe, basis, a organic the the the Eastern foreign last with an and the slowdown XX.X%, rose

productivity, compared increase XX% actions margins. quarter. to we including Gross Adjusted QX to increased was of was product first gross XX.X% cost and strategy, in than the the in company's to year and in compared the pressures pricing was margin period. prior margin the cost experienced offset more last of initiatives. Turning reduction XX.X% attributed commodity This and enterprise XXXX year. This related XX% quarter mix in freight to to

net As far to the as expenses, XX.X% adjusted sales S&A year period. quarter, in were XX.X% ago compared expenses our during of the first

sales increased improvement EPS, excluded million the on in-person per the sale In ago in Adjusted to increased business to share savings was suspension of of to quarter period. quarter compared and period. and excluded Adjusted sales XX.X% per $X.XX $X.XX $X.XX or customer per year $XX.X careful in trade EBITDA per the share million some of expense, $XX.X to and in diluted year or XXXX. the divestiture gain this items or $X.X quarter share million or from addition million the included of in XX.X% to shows XXXX expense the results to share temporary coatings ago income Adjusted travel in which business. the the first first $X.XX Net most compared of of nonoperational to the amortization compared management, related $XX.X diluted events.

the As for full in in discrete due adjustment to rate, which Tennant benefit compared decrease primarily XX.X% an ago year and our expense XX.X% had in tax tax items. effective to first country mix excluding taxable a amortization in tax year increased period, earnings of rate certain quarter, the adjusted by the the

performance. XXXX, balance business cash in in generated from to sheet the due cash flow to $XX.X million items. Tennant and of flow Turning first strong quarter mainly operations

cash prepayment restructured XX, future after million by month. optimize March XXXX, to had $X and approximately enhanced structure. its company penalties, expense the with first April, equivalents. This quarter, $XXX.X also reducing the the credit the for while close no in million of minimal cash covenants its of debt allows and interest per As In restructure agreement flexibility company

Lastly, guidance. turning to

strategy. As Dave ability economic growth a to in continued and optimism regarding its of mentioned, our pace Tennant's the our and raised guidance long implement broad reflects recovery term

our to is announcement, organic $XX earnings the items million today's questions. and to of guidance rate for in per amortization X% XX%, to of range million, to billion, expense. effective XXXX $X.XX approximately included Net billion sales adjustment. $X.XX ahead. an certain please $XX share, full $X.XX follows. Adjusted that, in of Adjusted expenditures of the $X.XX open adjusted of expense $XXX excludes $XXX tax GAAP EBITDA rising to As XX%. amortization will $X.XX Operator, share. which EPS call go to the and to nonoperational capital year excludes With million we million of as with $X.XX EPS per which sales

Operator

[Operator the of Mike Securities. Instructions] from Your Shlisky first with line Colliers question comes

Mike Shlisky

hear Can okay? me you

Dave Huml

hear you, we Mike. Yes, can

Mike Shlisky

for on the asking And year. Fay, welcome touch we've question kind aboard. to a been I wanted really of whole

your Does Dave. bounce provided in percent? whether a it we're a have to commercial growth outlook a here? focus beyond Now curious, it of you've of over like larger prepared makes of more about being a to more space. you a kind is that visible comments, is organic given than as it That kind X And X-year answer your in your any XXXX, your of double kind thought which to seeing back. an But just cleanliness perhaps I'm outlook even just growth longer-term range pandemic on maybe the few

Dave Huml

Thanks, Mike.

it's take marketplace the you, given and long the that getting have from early term for signs potential that into and a some tell to and we're thought, project too just signals to try our I'll We business.

range is in be plan important comment long So made you holding on, would that our to I made you The that -- now. an one. focused that for we're

hide from in I spaces, it be they and largely think differently where and hide have used cleaning many viewing that something of invisible. it customers to employees be our customers their to their wanted are their from

to a floor to visible as be operate that sign value is in, Now for be, are there and seems employees their about space customers our whether talking their safe their in the cleaning being their customers. or that

That impact But do our customers applications, believe our too result on can of in industry, to the that neutral hours customers equipment tell. will us. and that term to overall our will both early our and it's our range it's broader a customers. they positive our long business, cleaner So we for for spaces have use that

we'll see, but are us. So positive early wait certainly and signs for

Mike Shlisky

there kind get an that see cleanliness from I'm a ways in the barber a the course. a I created unpack barbershops, it's make a cases and that entity, entity. want spaces example, perhaps starting outside of have go guess, to to can barber up a In some cleanliness, certification certain level people of I scissor bit. commercial shop cleaning, for sponsored certification of that fluids

part some you spaces, care the seeing bigger of being there? important of out efforts an the of some And floor certification wider are

Dave Huml

that floor how case our that scrubber was to in I've Tennant are long of offering with or been used. was floor proof our a some we certification used, something it as it that was used -- can entire agencies assurance AMR, when clean. the standard. technology of a it used, would some the our sort been the missing seen cleaning play that has can the offering similar of referencing companies or we it in the some role Mike, I actually And industry, provide Yes. think And always call has of just the we whether in That's cover some are space. highlight the customer where you're of clean that

to a floors whatever to like and from that clean used apply in can proof proof they'd they we so we the that role clean way of then And is out stakeholders. the give equipment perspective, think proof customer can to play was their their the

Mike Shlisky

balance wanted on I sheet. cash balance touch to the And then also on the

I'm but so You're And be really in to various at points $XXX you've over capitalization about appears maybe much. other should or million time, or the the rest outlook thinking M&A outlook mean past for some areas a of can you've the cash had kind that got this year. months. next in it of some we curious I here. of higher be in your outline by you of XX not free strong,

Fay West

So you're right.

maintaining we that look capital -- way for returning allocation add sits Certainly, So you our to ways balance and is liquidity $XXX a I leverage to always the do million, there? opportunities From profile as Maybe provide nice nice have shareholder of will capital right think it some well shareholder return. shareholders by perspective, about we're cash Tennant. to dividend. we and focused the experience on where a wanted for as evaluate

Dave Huml

for work assure We just this don't return putting activity. specifically comment positive forward-looking that Thanks committed our shareholders. is team you Yes, add. on just cash I'll to our to I M&A return will Mike. a to

Operator

CJS Chris Securities. Your of next with the line comes from question Moore

Chris Moore

the follow-up quick a on just cash maybe So flow.

flow So obviously, QX. in good cash

there's growth to little revenue capital missed like cash more some I give needs. 'XX? a looking for, assume on I Can flow be thoughts some what the that -- in would going you're unless you looked it, working Given

Fay West

where So capital with I with right, and just capital there'll working kind working flows. think way bit probably the guidance, of on little are need the based we our be here you're a of

cash changed flow. CapEx. We've operating strong our year We will really have full not significantly

for -- flow year really from driven working our that's working So cash for capital. flow in changes strong be strong really should down XXXX. the free free be and just XXXX, cash slightly by cash will and But

Dave Huml

is in business to of structural our allocation our the was think we're in I result our driving executing because really out beginning term more read really benefits to line. I'm strategy. see I'll of have to it's you're cash. chart of of the enterprise pleased forward-looking bit the uses to -- And around And Fay But just out it's I now and changes -- help and what top It strategies our a you're against think us the muted -- add role in in long capital her strategy. really read seeing that seeing what you're difficult XXXX.

Chris Moore

conversation. to perhaps that usual were drive increases demand. this where at this steel understanding of a just to I'm understand My help is sit year from price than little less you Switch beginning trying aggressive the And right. to

Now rapid that balance increasing between -- the with steel, prices talk Maybe rise little a between and bit. demand? in could that to you

Dave Huml

Yes.

in margins gross of expansion the saw You QX.

comment mind our a about relative in commodities. chain because supply to broaden that make I'll the but other inflation of relevant for think top supply to comment in globe which XXXX. immune of So context, that's that's chain global what first key challenges about us, can general, is steel, not our happened Tennant a commodity topic I in We me the of stakeholders let across QX, let resin projection And lead, on it that then used only and commodities, was comment not investors. and comments the to forward-looking many bit and see did I our for steel, batteries. and in in experienced some me it's quarter

financial including base. on freight or and capacity general was We it logistics, supply number challenges also And transportation in we the challenges also freight of electronics cost going and and container freight ocean of some shortage solvency managed a the or constraints everyone's through saw availability freight. ship -- also globally, familiar supply the of based air with challenges, our whether

Tennant, we're customers of managing. to and impact our the financial and job those monitoring action supply the chain of but our challenges also definitive to health an the mitigate And done fantastic chain our our from absolutely taking supply operations team both impact so insulate -- has team

has productivity the favorable has enterprise cost done some volume, pricing and proud strategic In notably couldn't what significant the of So plants, be through QX, chain team is in us to product challenges. to really positioned how a the of the execute strategy, benefit and and team I mix. leveraging broad based, offset earlier, activities. the weather more continuing And supply portion our increased work the from reduction impact I mentioned as we

we challenges the overcome just help XXXX, challenges reflected actions the And continue in supply I'm in we full guidance. year to XXXX. have again, expect our while the into to the taken of so has proud here So team that chain Tennant

Chris Moore

price When volume? I break look at the down between that X.X% then, and does growth how organic

William Prate

for that really We a while, haven't out broken Chris.

this William. is So

of terms market that knowing In actions, take the probably it's not historical, were did but price, around the to into, we X.X% net. pricing coming just have which been would we

But manufactured So haven't that. the for units on fell from while. we price year. broken it's it out Expect lower than this vantage growth really point definitely that a and

Operator

question line of your the with Sidoti Ferazani comes Company. And next Steve from &

Steve Ferazani

want I on the guidance. little a to follow-up bit

quarter, the of So million implies end adjusted in with XX%, more in guidance your so even $XX it at EBITDA range. high the than

get trying wouldn't why -- being Just to that year? about conservative, you're that this low a why be costs, you're the of point relatively sense the if concerned

Fay West

order will in on now into the is And current and hit month we assumes prior of guidance based by do the our trend the start and rates there. pandemic. to know that were our lap are that improvement year -- hardest So the kind we visibility a in environment microeconomic continuing we

guidance. come results this this encouraged I seeing our in is did by trends range our our our in QX initial that. and at is we're that's But our that point, of and point. at think balanced guidance we're the I revised reflected that think reflective expectations, above And

Steve Ferazani

on the based yes. -- I mean,

William Prate

margin drive terms to the improving that invest of revenue early into that take just Dave's the in other Steve, in step the proven the To also commodity back the gross we're We've that. add pricing around strategic I'd ourselves the as freight. further that initiatives will we're prior just and points of and year, facing in is we half in on thing only back maybe year. headwinds a business

and S&A last that the year So like XXXX. you'll in on see have you would line, seen

feel we'll we've on and embedded make our guidance. that we freight the into see our things and headwinds into the So that commodity items, the pricing, business investments we both the those positive

we've So what we're that's thinking how through provided.

Steve Ferazani

noting that And has significant end on? And the at that call did improvement then that March? February, the was -- in you of see did carried

Fay West

actually March. And see really, the we of uptick in month an did

saw continuing And year-end end post the so into our March strong in was of April. and really performance a which I call, February, in here we think

Steve Ferazani

new can And for sales just last updates industrial marketing one the give you is, any on me of and kind effort AMR? with

Dave Huml

about can interest the our know, in briefly is I'll that. Customer robotics comment offering. very, and our industrial introduction our TXXAMR, is high you excited really on offering. this very a Yes, -- markets. is with this have the of as now a We're entire robotics But our into portfolio range we And engage of our vertical across a industry. range of TXXAMR, product enter robotics, broad industrial broadest markets, X with to customers the vertical broad product importantly, in of we

that And every we opportunity AMR so adopters important across our were important around are earnest global sales organization able in expanding an robotics is to and AMR the early attack -- geography. reordering programs. their and point our activate It's

drawing we're So confidence that, offering. that. around We're optimism product some well our AMR really with from from some positioned

fantastic the And know potential. we're driving doing a an teams adoption. accelerated to bullish experience, Our customer which a supporting we on is deployment and critical fantastic job delivering are

are adoption we AMR the well prepared in So of customer to globally. ramp pace at

Operator

comes line of Your next from Capital. Instructions] Marco Rodriguez with question the Stonegate [Operator

Marco Rodriguez

you are very thinking everyone's there? to bit FX mean, to But a in prices I continue prices are and commentary costs I your raising obviously, It's a wanted on maybe guys the up, supply lot go pass-through these bit to can ability appreciate you markets about commodity prices. a continuing seeing rise are rising your here just show of you in about follow-up talk expectations helpful. How perhaps? that to provided. little just terms the inflation, what little the chain. of I just

Dave Huml

in of question. the the a how am earlier great It's sensing the ability actions team offset Yes. of mitigate tell It's our the rallying our guidance. will help proud our marketplace of in supply of the around and mentioned we're in reflected to a chain mind risks. I some I confidence that I offset top for doing us is you challenges and to set specific us.

we these so in we ourselves prepared of will over reflected XXXX. And for expect have guidance. in manage subside headwinds manage to to remainder expect to do time. it the of XXXX, And we against do and these the against rest that Well, that's our

Marco Rodriguez

And kind chain terms long kind us supply you're color far the lead any any any seeing? of is of sort can way little that us constraints other -- the as might that understand? then of in or sense give constraints the times help you how seeing, that of of bit there or I you're mean, sort as what better information a are

Dave Huml

then question. meaningful It's Yes. gave would Really, there's the I be a major is to cost. buckets. logistics which specific general commodity It's data And a again. inflation both that component. just quantify challenges. into There's and supply transportation, challenges a lump to availability you. freight the I'll rest we're and difficult great broad-based. also of based seeing, repeat them so point I It's that you

capacity our pandemic, ramp had online supply come meet back their post to base As they've their has demand. to

the tracking their need to to XXXX. financial supply up capacity solvency and ramp And as they'll saw suppliers that around electronics, of constraints effect -- familiar what our there's the And of serve capacity they so and also, shortage, parts you back base. general. a with halo try and across we're then chip There you're our are I project to many noted in -- capacity

not suppliers the pandemic well others. weather did as as Some

have plan signal action to augment talk a we And supply may then else, certainly if any so reach get to we supplier of in we what that take chain be an is. And someone need that where to we'll supplier with understand and them ahead out their early to recovery trouble, disruption.

in to tough job that, we've challenges it's in tell did to the it our and team you dimensionalize. to fantastic responding again, guidance. for and offset continue a QX, mitigate reflected but I we to it it So ability 'XX, just our will expect

Marco Rodriguez

me Obviously, some for growth last one And you in guys strong Asia. saw here. really

rising Just of the wondering are about of there, thinking new how the we region part you in world. variants coronavirus that the that kind just guys by out see cases driven that given

Dave Huml

everyone, the We're in well -- aspects and really pandemic. specifically, vaccination whether manage like Yes. are restrictions pandemic the and In as as -- Asia -- response put in importantly, deployment case the the spread, this hardest being Pacific, hit early. was to vaccination of we're in its try place then that what watching China, government pandemic, to started various economy

And they're further recovery ahead some like. so in journey of the looks what regards, on

I channel. entire saw Generally out region, it. in growth governments And speaking, not the our a across as and a China way APAC organic It's we was that uneven choppy, it's recovery. think trying see what trajectory. product of we you and we is see dig different every straight-line manage QX are to this -- thing in rate that in every category, geography every

view get geography. It's in seen market But a other are of or, we which we economic as not really levels, I recovery. do because of expect back APAC straight-line normal trajectory prepared as we've to unevenness every we So on. a broad-based a recovery, on that to pre-pandemic just say, bit capitalize

Operator

the of Your Securities. comes Shlisky line Mike next Colliers from question with

Mike Shlisky

quarters? margin when about furloughs quarter better in I performance to year's the think, you alluded of -- last ever. there future It your still in had quarter second curious, in that related cuts worst maybe pandemic. of and was pandemic cost could how guess, can were was best the I'm of EBITDA want some the I you quarter. quarter tailwinds the some were the the extreme extreme come EBITDA from I to, mean was ask But I reductions. kind the of much in one margin quarters of the the help in you back Fay, us quantify only

Fay West

of couple a things. So

which products of higher really a and the and reflects actions the cost reduction you that think of taken, number the has mix productivity, saw quarter actions the we I that in mentioned, pricing initiatives. improvement including company

there that have percentage occurring quarter. gross just we significant was S&A into through performance part the this related, that that. that the was travel kind of trade perspective, not pandemic like and and so big shows because From and costs were you on first certain quarter, of a was costs that in margin management other saw And impact cost an onetime and

as So taken as the to kind specific actions by very related that from the the of were quarter just benefited pandemic. company well actions

Dave Huml

just point. Yes. my QX, would an in proof mind, is add, important I

recover, so You'll volume, recall emerge our improvements that order against in of we in drive enterprise were to continue so we'd strong. think it our and markets you're volume structural business in is, can volume. use that and we volume, the we're seeing when and benefit. discussed we XXXX, ability house only be leverage service from not what during the the to our our -- strategy we deliver demand, leverage were called our to demonstrating I with position can We And the but entirety in the to QX productivity get get drive with a getting execute the we the the leverage

rewards drive XXXX beginning in that team took QX. point me it's now in a improvements in of to reap the actions and very challenging the to operating a structural despite to the we're So the proof environment business,

Mike Shlisky

initiatives? That XX.X% impacted But Absolutely, entirely there's us have of job no. here. that almost It's by? was and to material may what as really number. all can give much trade you great EBITDA full a ongoing was just due no show been to travel not a along number the Or

William Prate

Yes.

million to couple Mike, then I our dividends if But for implement are necessarily also a the wouldn't you is so baseline our say, QX then investments S&A quarter of that wouldn't plan point S&A I items dollars. of a to I impact our think a of future couple maybe to numbers, our future million the strategic dollars made, add we be and To strategic years. make into either, continuing continue that can though. business we prior good S&A in get those

want QX and have provided just question out. in I'd that our be about on the to Fay can there headwinds make we've to, Dave we really really it incremental we the guidance So on is extrapolate getting margin and business. that accounts the the talked lean take gross the careful line and and for investments that

Mike Shlisky

Can in And environment perhaps Is environment? on pricing the anybody the last there? one being from out competitors current you for the comment irrational me.

Dave Huml

-- is hesitant channel through way assess find out difficult of and is removes leverage in the I'll because about to negotiation. only the business our It's that. it share, customers take sort to Yes, pricing their they're you in back because it

and -- one that market, price pillars And we're of to is to So that That customers. delivering the that, to for of going our doesn't be part, don't large the paid behaviors we're mean the very value our of we're enterprise But our pricing, the and for one get at from pricing that competitors are, see strategically value delivering. in to marketplace. to some we value rational odd to we make price Tennant's competitors we're about that end and we make getting the the and rational sure the of customers we're is our and going strategy rational sure time-to-time. just day, to delivering our paid in

is pricing not when commandable we we gauge need yes, something take ultimately our of of. them. whether are premium are interesting to a or price And mind the customers competitive we So and

So seen Thank an we crazy we'll to you. year, but on it. keep anything haven't this eye continue

Operator

at over no turn time, are Since to questions call further there management like for to closing the I would this remarks.

Dave Huml

interest the concludes day. ongoing and I of our thank special a for they all and also give our to Tennant meeting Tennant. continue have the global us do want a again, you all in call. Hope you, challenges in pandemic. Thank for This nice you to joining teams for earnings to your have done

Operator

you This call. for concludes today's Thank conference participating.

disconnect. now may You

Tennant (TNC) 8 May 212021 Q1 Earnings call transcript