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SEC Filings

10-Q
NN INC filed this Form 10-Q on 11/09/2017
Entire Document
 


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NN, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

Amounts in thousands of dollars, except per share data

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2016(1)     2017     2016(1)  

Net sales

   $ 148,156     $ 146,714     $ 463,658     $ 443,310  

Cost of products sold (exclusive of depreciation and amortization shown separately below)

     110,836       107,185       339,345       323,660  

Selling, general and administrative expense

     16,985       14,201       52,606       46,931  

Acquisition related costs excluded from selling, general and administrative expense

     619       —         619       —    

Depreciation and amortization

     13,075       11,737       38,432       38,411  

Restructuring and integration expense

     345       606       362       4,851  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     6,296       12,985       32,294       29,457  

Interest expense

     12,739       15,801       39,916       48,708  

Loss on extinguishment of debt and write-off of unamortized debt issuance costs

     —         2,589       39,639       2,589  

Derivative payments on interest rate swap

     —         609       —         609  

Derivative loss (gain) on change in interest rate swap fair value

     (27     3,130       (14     3,130  

Other (income) expense, net

     (848     (263     (945     (2,297
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from continuing operations before benefit for income taxes and share of net income from joint venture

     (5,568     (8,881     (46,302     (23,282

Benefit for income taxes

     1,436       8,246       14,145       11,763  

Share of net income from joint venture

     1,202       1,427       4,139       4,170  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     (2,930     792       (28,018     (7,349

Income from discontinued operations, net of tax (Note 2)

     135,825       3,663       146,579       12,564  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 132,895     $ 4,455     $ 118,561     $ 5,215  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss):

        

Change in fair value of interest rate swap

   $ —       $ 2,244     $ —       $ 2,025  

Reclassification adjustment for discontinued operations

     (9,243     —         (9,243     —    

Foreign currency translation gain (loss)

     6,083       (378     20,327       1,774  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive income (loss):

   $ (3,160   $ 1,866     $ 11,084     $ 3,799  
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

   $ 129,735     $ 6,321     $ 129,645     $ 9,014  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income (loss) per share:

        

Income (loss) from continuing operations per share

   $ (0.11   $ 0.03     $ (1.02   $ (0.27

Income from discontinued operations per share

     4.93       0.13       5.35       0.47  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share

   $ 4.82     $ 0.16     $ 4.33     $ 0.19  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     27,544       27,159       27,403       26,973  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income (loss) per share:

        

Income (loss) from continuing operations per share

   $ (0.11   $ 0.03     $ (1.02   $ (0.27

Income from discontinued operations per share

     4.93       0.13       5.35       0.47  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share

   $ 4.82     $ 0.16     $ 4.33     $ 0.19  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     27,544       27,322       27,403       26,973  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends per common share

   $ 0.07     $ 0.07     $ 0.21     $ 0.21  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes the effects of discontinued operations (Note 2) and prior periods’ revisions (Note 1 and Note 15)

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

 

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