For the first quarter of 2021, Tennant reported net sales of $263.3 million, up 4.4% year-over-year, which included a favorable foreign currency effect of 3% and a divestiture impact of negative 1.7%.
Organic sales, which exclude the impact of currency and divestitures increased 3.1%.
In the first quarter, sales in the Americas declined 3%, reflecting the divestiture of the Coatings business earlier this year, which impacted results by negative 2.6%, along with a foreign currency effect of negative 0.8%.
Organically, the region grew 0.4%, reflecting the limited impact that the pandemic had on the prior year period, as well as solid growth in the direct and distribution channels in North America, along with growth in Brazil.
Sales in the EMEA region increased 12.4% or 2.3% organically, driven by performance in France, Italy and Germany and also benefited from a foreign currency effect of 10.1%.
Sales in the Asia Pacific region rose 40.6% with a foreign currency effect of positive 8.8%.
On an organic basis, sales in the region rose 31.8%.
Gross margin in the first quarter of 2021 was 43%, compared to 40.8% in the prior year period.
Adjusted gross margin was 43%, compared to 41.5% in Q1 of last year.
As far as expenses, during the first quarter, our adjusted S&A expenses were 30.2% of net sales, compared to 31.8% in the year-ago period.
Net income increased to $25.7 million, or $1.37 per diluted share, compared to $5.2 million, or $0.28 per diluted share in the year-ago period.
Adjusted EPS, which excluded non-operational items and amortization expense was a $1.17 per share, compared to $0.57 per share in the year-ago period.
Adjusted EBITDA in the first quarter of 2021 increased to $40.7 million, or 15.5% of sales, compared to $26.1 million, or 10.4% of sales in the first quarter of 2020.
As for our tax rate, in the first quarter, Tennant had an adjusted effective tax rate, excluding the amortization expense adjustment of 21.4%, compared to 20.5% in the year-ago period, which increased primarily due to the mix in full-year taxable earnings by country, and a decrease in certain discrete tax benefit items.
Turning to cash flow and balance sheet items, Tennant generated $18.4 million in cash flow from operations in the first quarter of 2021, mainly due to strong business performance.
As of March 31, 2021, the Company had $175.2 million in cash and cash equivalents.
This restructure allowed for enhanced flexibility with minimal covenants and no prepayment penalties, while also reducing future interest expense by approximately $1 million per month.
As included in today's earning announcement, our guidance for full-year 2021 is as follows: net sales of $1.09 billion to $1.11 billion with organic sales rising 9% to 11%; GAAP earnings per share of $3.45 to $3.85 per share; adjusted earnings per share of $4.10 to $4.50 per share, which excludes certain non-operational items and amortization expense; adjusted EBITDA in the range of $140million to $150 million; capital expenditures of $20 million to $25 million; and an adjusted effective tax rate of approximately 20%, which excludes the amortization expense adjustment.

Summary:
For the first quarter of 2021, Tennant reported net sales of $263.3 million, up 4.4% year-over-year, which included a favorable foreign currency effect of 3% and a divestiture impact of negative 1.7%.
Net income increased to $25.7 million, or $1.37 per diluted share, compared to $5.2 million, or $0.28 per diluted share in the year-ago period.
Adjusted EPS, which excluded non-operational items and amortization expense was a $1.17 per share, compared to $0.57 per share in the year-ago period.
As included in today's earning announcement, our guidance for full-year 2021 is as follows: net sales of $1.09 billion to $1.11 billion with organic sales rising 9% to 11%; GAAP earnings per share of $3.45 to $3.85 per share; adjusted earnings per share of $4.10 to $4.50 per share, which excludes certain non-operational items and amortization expense; adjusted EBITDA in the range of $140million to $150 million; capital expenditures of $20 million to $25 million; and an adjusted effective tax rate of approximately 20%, which excludes the amortization expense adjustment.