NN, Inc. Reports Third Quarter 2016 Results
Press Release
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NN, Inc. Reports Third Quarter 2016 Results
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GAAP Results Net sales for the third quarter of 2016 increased On a GAAP basis, income from operations for the third quarter of 2016 was On a GAAP basis, income from operations for third quarter 2016 in the On a GAAP basis, income from operations for third quarter 2016 in the On a GAAP basis, income from operations for third quarter 2016 in the Adjusted Third Quarter 2016 Results Adjusted income from operations for the third quarter of 2016 was Business Group Results Autocam Precision Components Net sales for the third quarter of 2016 were Mr. Holder commented, "While the challenging industrial market continued to affect the Precision Bearing Components Net sales for the third quarter of 2016 were Mr. Holder commented, "The PBC team continues to achieve operating improvements driven by the NN Operating System, with margins flexing in line with expectations despite the ongoing industrial market challenges." Precision Engineered Products Net sales for the third quarter of 2016 were Mr. Holder commented, "We are pleased with the performance of our PEP group. Our integration efforts are on track, and we continue to see the benefits of the execution of the NN Operating System." Mr. Holder concluded, "Our results this quarter continue to support our strategic priorities of strong free cash flow generation and paying down debt. We believe our focus on driving continuous operating improvements and flex productivity across our balanced portfolio will produce solid performance into the future and offset continued industrial weakness." The full set of financial guidance for the fourth quarter and full year 2016, as well as full year 2017 can be found in our supplemental presentation posted in the Investor Relations section of our website at www.nninc.com. NN will discuss its results during its quarterly investor conference call tomorrow morning starting at NN discloses in this press release the non-GAAP financial measures of adjusted income from operations, adjusted net income and adjusted diluted earnings per share. Each of adjusted income from operations and adjusted net income provide supplementary information about the impacts of acquisition related expenses, foreign-exchange and other non-operating impacts on our business. The financial tables found later in this press release include a reconciliation of adjusted income from operations, adjusted net income and adjusted diluted earnings per share to the U.S. GAAP financial measures of income from operations, net income and diluted earnings per share. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements, are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of For additional information concerning such risk factors and cautionary statements, please see the section titled "Risk Factors" in the Company's periodic reports filed with the
Financial Tables Follow
The Company discloses in this presentation the non-GAAP financial measures of adjusted income from operations, adjusted net income and adjusted diluted earnings per share. Each of these non-GAAP financial measures provide supplementary information about the impacts of acquisition and integration related expenses, foreign-exchange impacts on inter-company loans reorganizational and impairment charges. Over the past three years, we have completed six acquisitions, two of which were transformative for the Company. The costs we incurred in completing such acquisitions, including the amortization of intangibles and deferred financing costs, have been excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and which we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management's control and are subject to volatility. Other non-operating charges such as, the write-off of our interest rate swap, are excluded as the charges on not indicative of our ongoing operating cost. We believe the presentation of adjusted income from operations, adjusted net income and adjusted diluted earnings per share provide useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP, and should not be considered as alternatives to actual net income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP Adjusted income from operations, represents GAAP income from operations, adjusted to exclude the effects of restructuring and non-cash impairment charges (related to plant closures and other charges incurred to implement our strategic goals, that do not necessarily represent a major strategic shift in operations), one-time charges related to acquisition and integration costs, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income from operations, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income from operations. (b) Non-GAAP adjusted net income and adjusted diluted earnings per share, represents GAAP net income, adjusted to exclude the tax-affected effects of restructuring and impairment charges (related to plant closures and other charges incurred to implement our strategic goals, that do not necessarily represent a major strategic shift in operations), one-time charges related to acquisition and integration costs, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, and foreign exchange gain (loss) on inter-company loans. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted net income and Non-GAAP adjusted diluted earnings per share, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP net income. (c) This line item reflects the aggregate tax effect of all nontax adjustments reflected in the table above. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying NN, Inc's. overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nn-inc-reports-third-quarter-2016-results-300356378.html SOURCE AT THE COMPANY, Robbie Atkinson, VP, Corporate Treasurer & Investor Relations, (423) 434-8305, or AT ABERNATHY MACGREGOR, Caitlin Petrakis, (General info), (212) 371-5999 |