Net income for the third quarter was
Net sales for the first nine months of 2013 were
Net income for the first nine months of 2013 was
As a percentage of net sales, cost of products sold for the quarter decreased to 78.5% from 79.0% for last year's third quarter. Cost of products sold for the first nine months of this year was 78.9% as compared to 79.1% for the same period last year. This reflects the improving operational performance of our divisions.
Debt, net of cash, was
"The positive revenue trend combined with our ability to leverage strong incremental profits for each additional dollar of revenue is encouraging. We continue to be sensitive to the prolonged general economic uncertainty hanging over the markets as well as the weakness in European automotive markets and in particular European industrial markets."
Mr. Holder concluded, "We previously announced that we are currently revising and enhancing our business strategy. This strategy will include, among other components and initiatives, plans to more aggressively pursue acquisitive and organic growth opportunities in our core and adjacent markets. Everyone on the management team and the Board of Directors is excited about the new opportunities this process has identified and we are extremely eager to begin executing on the initiatives once complete. We will be sharing the details of this strategy early in 2014."
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. |
||||||||
Condensed Statements of Income |
||||||||
(In Thousands, except per share amounts) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2013 |
2012 |
2013 |
2012 |
|||||
Net sales |
$ 93,023 |
$ 86,586 |
$ 283,125 |
$ 289,929 |
||||
Cost of products sold (exclusive of depreciation shown separately below) |
73,020 |
68,426 |
223,288 |
229,243 |
||||
Selling, general and administrative |
8,099 |
7,886 |
25,544 |
24,266 |
||||
Depreciation and amortization |
4,110 |
4,357 |
12,935 |
13,203 |
||||
Loss (Gain) on disposal of assets |
-- |
-- |
5 |
(8) |
||||
Income from operations |
7,794 |
5,917 |
21,353 |
23,225 |
||||
Interest expense |
655 |
1,061 |
2,149 |
3,388 |
||||
Other expense (income), net |
(281) |
765 |
84 |
(36) |
||||
Income before provision for income taxes |
7,420 |
4,091 |
19,120 |
19,873 |
||||
Provision for income taxes |
2,368 |
976 |
6,427 |
3,811 |
||||
Net income |
$ 5,052 |
$ 3,115 |
$ 12,693 |
$ 16,062 |
||||
Diluted income per common share |
$ 0.29 |
$ 0.18 |
$ 0.74 |
$ 0.94 |
||||
Weighted average diluted shares |
17,450 |
17,150 |
17,180 |
17,105 |
||||
NN, Inc. |
||||
Condensed Balance Sheets |
||||
(In thousands) |
||||
(Unaudited) |
||||
September 30, 2013 |
December 31, 2012 |
|||
Assets |
||||
Current Assets: |
||||
Cash |
$ 4,468 |
$ 18,990 |
||
Accounts receivable, net |
65,783 |
51,628 |
||
Inventories |
48,109 |
46,150 |
||
Other current assets |
8,411 |
10,528 |
||
Total current assets |
126,771 |
127,296 |
||
Property, plant and equipment, net |
117,488 |
119,687 |
||
Goodwill and intangible assets, net |
9,337 |
9,154 |
||
Other non-current assets |
7,834 |
9,206 |
||
Total assets |
$ 261,430 |
$ 265,343 |
||
Liabilities and Stockholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 43,172 |
$ 37,000 |
||
Accrued salaries, wages and benefits |
11,716 |
10,174 |
||
Current maturities of long-term debt |
5,714 |
5,801 |
||
Income taxes payable |
2,194 |
543 |
||
Other current liabilities |
6,438 |
5,240 |
||
Total current liabilities |
69,234 |
58,758 |
||
Non-current deferred tax liabilities |
3,975 |
3,850 |
||
Long-term debt, net of current portion |
33,000 |
63,715 |
||
Other non-current liabilities |
10,368 |
10,460 |
||
Total liabilities |
116,577 |
136,783 |
||
Total stockholders' equity |
144,853 |
128,560 |
||
Total liabilities and stockholders' equity |
$ 261,430 |
$ 265,343 |
NN, Inc. |
|||||||
Reconciliation of Non-GAAP to GAAP Financial Measures |
|||||||
(Unaudited) |
|||||||
Three Months Ended September 30, 2013 |
Three Months Ended September 30, 2012 |
||||||
In Thousands |
Diluted Earnings Per Share |
In Thousands |
Diluted Earnings Per Share |
||||
Net Income |
$ 5,052 |
$ 0.29 |
$ 3,115 |
$ 0.18 |
|||
Foreign exchange (gain) loss on intercompany loans |
(44) |
(0.00) |
659 |
0.04 |
|||
Net Income from normal operations |
$ 5,008 |
$ 0.29 |
$ 3,774 |
$ 0.22 |
|||
Nine Months Ended September 30, 2013 |
Nine Months Ended September 30, 2012 |
||||||
In Thousands |
Diluted Earnings Per Share |
In Thousands |
Diluted Earnings Per Share |
||||
Net Income |
$ 12,693 |
$ 0.74 |
$ 16,062 |
$ 0.94 |
|||
Foreign exchange loss on intercompany loans |
168 |
0.01 |
284 |
0.02 |
|||
After-tax restructuring and other non- recurring item |
399 |
0.02 |
-- |
-- |
|||
Net Income from normal operations |
13,260 |
$ 0.77 |
$ 16,346 |
$ 0.96 |
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