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SEC Filings

10-Q
NN INC filed this Form 10-Q on 08/14/2017
Entire Document
 


Table of Contents
     Six Months Ended June 30,  

Source

   2017      2016  

Interest on debt

   $ 25,098      $ 30,347  

Interest rate swaps settlements

     —          927  

Amortization of debt issuance costs

     2,153        1,986  

Capital lease interest

     758        561  

Capitalized interest (1)

     (644      (768
  

 

 

    

 

 

 

Total interest expense

   $ 27,365      $ 33,053  
  

 

 

    

 

 

 

 

(1) Capitalized interest primarily relates to the equipment construction efforts at the various plants.

Loss on Extinguishment of Debt and Write-off of Unamortized Debt Issuance Cost. The $39.6 million write-off resulted from the extinguishment of the Senior Notes and modification of the credit facility.

Other (Income) Expense, Net. Other income decreased $1.9 million during the first half of 2017 compared to the first half of 2016, primarily due to foreign currency exchange effects related to the Brazilian real and the euro.

Net Income (Loss). The $39.6 million loss on extinguishment of debt and write-off of unamortized debt issuance cost was the primary reason for the net loss in the first half of 2017. This loss was partially offset by a $13.7 million increase in income from operations, a $5.7 million reduction in interest expense, and a $7.1 million decrease in income tax expense. Significant components of the changes in income from operations and interest expense were presented in the preceding paragraphs. The decrease in tax expense includes the tax effect of the loss on extinguishment of debt and write-off of unamortized debt issuance cost.

RESULTS BY SEGMENT

PRECISION BEARING COMPONENTS GROUP

 

     Six Months Ended June 30,  
     2017      2016      Change         

Net sales

   $ 136,687      $ 129,902      $ 6,785     

Volume

              6,763  

Foreign exchange effects

              (3,747

Price/material inflation pass-through/mix

              3,769  

Income from operations

   $ 16,752      $ 12,800      $ 3,952     
  

 

 

    

 

 

    

 

 

    

Net sales increased by $6.8 million during the first half of 2017 from the first half of 2016 due to higher demand volumes and changes to product mix. The higher volumes were primarily due to demand improvements within the industrial and automotive markets. These increases were partially offset by the effects of foreign currency exchange.

The primary driver of the improvement in income from operations was a $2.0 million reduction in restructuring costs compared to the first half of 2016, primarily related to headcount reductions in the prior year. The remaining increase in income from operations was consistent with the increase in net sales.

 

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