Reported net income for the second quarter of 2014 was
Net sales for the first six months of 2014 increased
Reported net income for the first six months of 2014 was
As a percentage of net sales, cost of goods sold in the second quarter of 2014 of 79.0% increased slightly as compared to 78.7% for last year's second quarter. Cost of products sold for the first six months of 2014 of 78.7% decreased slightly as compared to 79.0% for the same period last year.
Debt, net of cash, was
"Looking forward, we remain optimistic about the second half of the year. We expect continued strong demand in
"Additionally, last month, we announced the signing of a definitive agreement to acquire
Mr. Holder concluded, "While we are pleased with what we have been able to accomplish so far this year, we are continually working toward further improvement to the benefit of all stakeholders. We will continue to focus on growing our business organically as well as through strategic acquisitions while simultaneously improving our cost structure."
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
NN, Inc. Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) |
||||||||
Three Months Ended June 30, |
Six Months Ended |
|||||||
2014 |
2013 |
2014 |
2013 |
|||||
Net sales |
$ 106,680 |
$ 96,305 |
$ 209,208 |
$ 190,102 |
||||
Cost of products sold (exclusive of |
84,285 |
75,751 |
164,569 |
150,268 |
||||
Selling, general and administrative |
10,074 |
8,339 |
20,104 |
17,445 |
||||
Depreciation and amortization |
4,084 |
4,294 |
7,961 |
8,825 |
||||
Loss on disposal of assets |
-- |
1 |
-- |
5 |
||||
Income from operations |
8,237 |
7,920 |
16,574 |
13,559 |
||||
Interest expense |
551 |
709 |
1,115 |
1,494 |
||||
Other expense (income), net |
129 |
(214) |
212 |
365 |
||||
Income before provision for income taxes |
7,557 |
7,425 |
15,247 |
11,700 |
||||
Provision for income taxes |
2,357 |
2,655 |
4,809 |
4,059 |
||||
Net income |
$ 5,200 |
$ 4,770 |
$ 10,438 |
$ 7,641 |
||||
Diluted income per common share |
$ 0.29 |
$ 0.28 |
$ 0.58 |
$ 0.45 |
||||
Weighted average diluted shares |
18,172 |
17,172 |
18,054 |
17,115 |
||||
NN, Inc. Condensed Balance Sheets (In thousands) (Unaudited) |
||||
June 31, 2014 |
December 31, 2013 |
|||
Assets |
||||
Current Assets: |
||||
Cash |
$ 5,812 |
$ 3,039 |
||
Accounts receivable, net |
80,740 |
58,929 |
||
Inventories |
61,541 |
54,530 |
||
Other current assets |
9,934 |
9,176 |
||
Total current assets |
158,027 |
125,674 |
||
Property, plant and equipment, net |
132,681 |
121,089 |
||
Goodwill and intangible assets, net |
12,108 |
9,524 |
||
Other non-current assets |
4,604 |
6,115 |
||
Total assets |
$ 307,420 |
$ 262,402 |
||
Liabilities and Stockholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 48,540 |
$ 40,687 |
||
Accrued salaries, wages and benefits |
13,408 |
11,761 |
||
Current maturities of long-term debt |
4,000 |
10,477 |
||
Income taxes payable |
3,300 |
1,340 |
||
Other current liabilities |
6,088 |
5,119 |
||
Total current liabilities |
75,336 |
69,384 |
||
Non-current deferred tax liabilities |
3,962 |
3,844 |
||
Long-term debt, net of current portion |
53,500 |
26,000 |
||
Other non-current liabilities |
10,783 |
10,414 |
||
Total liabilities |
143,581 |
109,642 |
||
Total stockholders' equity |
163,839 |
152,760 |
||
Total liabilities and stockholders' equity |
$ 307,420 |
$ 262,402 |
NN, Inc. Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited) |
|||||||
Three Months Ended June 30, 2014 |
Three Months Ended June 30, 2013 |
||||||
In Thousands |
Diluted Earnings |
In Thousands |
Diluted Earnings |
||||
Net income |
$ 5,200 |
$ 0.29 |
$ 4,770 |
$ 0.28 |
|||
After-tax acquisition and integration costs |
818 |
0.04 |
-- |
-- |
|||
After-tax foreign exchange gain on inter-company loans |
-- |
-- |
(138) |
(0.01) |
|||
Net income from normal operations |
$ 6,018 |
$ 0.33 |
$ 4,632 |
$ 0.27 |
|||
Six Months Ended June 30, 2014 |
Six Months Ended June 30, 2013 |
||||||
In Thousands |
Diluted Earnings |
In Thousands |
Diluted Earnings |
||||
Net income |
$ 10,438 |
$ 0.58 |
$ 7,641 |
$ 0.45 |
|||
After-tax acquisition and integration costs |
1,132 |
0.06 |
-- |
-- |
|||
After-tax foreign exchange loss on inter-company loans |
-- |
-- |
212 |
0.01 |
|||
After-tax restructuring and other non-recurring items |
-- |
-- |
399 |
0.02 |
|||
Net income from normal operations |
$ 11,570 |
$ 0.64 |
$ 8,252 |
$ 0.48 |
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