- Revenues of
$93.8 million for the quarter exceeded forecast, however down 10.2% from the first quarter of 2012, due to continued soft European and Asian demand - Solid margins on lower revenues reflect strong leverage of costs from on-going Level 3 cost containment and improvement programs
Reported net income for the first quarter of 2013 of
As a percentage of net sales, cost of goods sold for the quarter of 79.4% remained flat as compared to the same period in the prior year. On-going cost containment and improvement programs driven by the Company's Level 3 initiatives have continued to produce positive results. Good levels of profitability and margin performance were achieved despite the revenue reduction that occurred during the quarter as compared to the prior year.
Debt, net of cash, was
Mr. Baty concluded, "Our cash flow and debt retirement performance over the last three years has strengthened our balance sheet significantly. This provides us with the ability and opportunity to fund key strategic plan initiatives of organic and acquisitive growth as well as explore other shareholder value actions."
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
Financial Tables Follow
NN, Inc. |
|||
Three Months Ended |
|||
March 31, |
|||
2013 |
2012 |
||
Net sales |
$ 93,797 |
$ 104,519 |
|
Cost of goods sold (exclusive of depreciation shown separately below) |
74,517 |
82,969 |
|
Selling, general and administrative |
9,106 |
8,068 |
|
Depreciation and amortization |
4,531 |
4,457 |
|
Loss (gain) on disposal of assets |
4 |
(8) |
|
Income from operations |
5,639 |
9,033 |
|
Interest expense |
785 |
1,211 |
|
Other expense, net |
579 |
438 |
|
Income before provision for income taxes |
4,275 |
7,384 |
|
Provision for income taxes |
1,404 |
1,475 |
|
Net income |
2,871 |
5,909 |
|
Diluted income per common share |
$ 0.17 |
$ 0.35 |
|
Weighted average diluted shares |
17,162 |
17,075 |
NN, Inc. |
||||
March 31, 2013 |
December 31, 2012 |
|||
Assets |
||||
Current Assets: |
||||
Cash |
$ 7,647 |
$ 18,990 |
||
Accounts receivable, net |
66,877 |
51,628 |
||
Inventories |
44,590 |
46,150 |
||
Other current assets |
10,912 |
10,528 |
||
Total current assets |
130,026 |
127,296 |
||
Property, plant and equipment, net |
116,839 |
119,687 |
||
Goodwill, net |
7,937 |
8,254 |
||
Intangible assets |
900 |
900 |
||
Other non-current assets |
8,945 |
9,206 |
||
Total assets |
$ 264,647 |
$ 265,343 |
||
Liabilities and Stockholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 39,093 |
$ 37,000 |
||
Accrued salaries, wages and benefits |
10,325 |
10,174 |
||
Current maturities of long-term debt |
7,943 |
5,801 |
||
Income taxes payable |
1,573 |
543 |
||
Other current liabilities |
6,150 |
5,240 |
||
Total current liabilities |
65,084 |
58,758 |
||
Non-current deferred tax liabilities |
3,699 |
3,850 |
||
Long-term debt, net of current portion |
55,715 |
63,715 |
||
Other non-current liabilities |
10,093 |
10,460 |
||
Total liabilities |
134,591 |
136,783 |
||
Total stockholders' equity |
130,056 |
128,560 |
||
Total liabilities and stockholders' equity |
$ 264,647 |
$ 265,343 |
NN, Inc. |
|||
Three Months Ended March 31, 2013 |
|||
In |
Diluted Earnings |
||
Net income |
$ 2,871 |
$ 0.17 |
|
After-tax foreign currency loss on intercompany loans |
350 |
0.02 |
|
After-tax restructuring and other non-recurring items |
399 |
0.02 |
|
Net income from normal operations |
$ 3,620 |
$ 0.21 |
Three Months Ended March 31, 2012 |
|||
In |
Diluted Earnings |
||
Net income |
$ 5,909 |
$ 0.35 |
|
After-tax foreign currency loss on intercompany loans |
734 |
0.04 |
|
Net from normal operations |
$ 6,643 |
$ 0.39 |
The Company's management evaluates operating performance excluding unusual and/or nonrecurring items. The Company believes excluding such items provides a more effective and comparable measure of performance and a clearer view of underlying trends. Since net income excluding these items is not a measure calculated in accordance with GAAP, this should not be considered as a substitute for other GAAP measures, including net income, as an indicator of performance. Accordingly, net income/loss excluding the above items is reconciled to net income/loss on a GAAP basis.
SOURCE
AT THE COMPANY: Will Kelly, Vice President and Chief Administrative Officer, (423) 743-9151; AT FINANCIAL RELATIONS BOARD: Marilynn Meek, (General info), 212-827-3773