Net sales for the third quarter of 2014 increased
As a percentage of net sales, cost of products sold in the third quarter of 2014 of 80.0% increased slightly as compared to 78.5% for last year's third quarter due to acquisition and integration costs.
Reported net loss for the third quarter of 2014 was
Adjusted income from operations for the nine months ended
Net sales for the first nine months of 2014 increased
Net income for the first nine months of 2014 was
Cost of products sold for the first nine months of 2014 of 79.1% decreased slightly as compared to 78.9% for the same period last year due to acquisition and integration costs. .
Debt, net of cash, was
"Shortly after the Autocam acquisition we created an NN Integration and Transformation team led by a group of leaders from our financial and operational disciplines. I am pleased to report we are on plan with this highly important initiative, specifically with our
Mr. Holder concluded, "2014 has already been a transformative year for NN with the acquisition and integration of four new businesses. Given our performance and the closing of the Autocam transaction, we are revising our expected revenue guidance for full year 2014 from
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
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended |
|||||||
2014 |
2013 |
2014 |
2013 |
|||||
Net Sales |
$ 125,632 |
$ 93,023 |
$ 334,840 |
$ 283,125 |
||||
Cost of products sold (exclusive of |
100,441 |
73,020 |
265,010 |
223,288 |
||||
Selling, general and administrative |
11,124 |
8,099 |
29,799 |
25,544 |
||||
Acquisition related costs excluded from |
5,651 |
-- |
7,080 |
-- |
||||
Depreciation and amortization |
5,864 |
4,110 |
13,824 |
12,935 |
||||
Loss on disposal of assets |
-- |
-- |
-- |
5 |
||||
Income from Operations |
2,552 |
7,794 |
19,127 |
21,353 |
||||
Interest expense |
5,622 |
655 |
6,737 |
2,149 |
||||
Other expense (income), net |
1,557 |
(281) |
1,769 |
84 |
||||
Income before provision for income taxes |
(4,627) |
7,420 |
10,621 |
19,120 |
||||
Provision (benefit) for income taxes |
(562) |
2,368 |
4,247 |
6,427 |
||||
Share of net income (loss) from joint |
225 |
-- |
225 |
-- |
||||
Net income |
$ (3,840) |
$ 5,052 |
$ 6,599 |
$ 12,693 |
||||
Diluted income per common share |
$ (0.21) |
$ 0.29 |
$ 0.36 |
$ 0.74 |
||||
Weighted average diluted shares |
18,411 |
17,450 |
18,120 |
17,180 |
||||
Condensed Balance Sheets
(In thousands)
(Unaudited)
September 30, 2014 |
December 31, 2013 |
|||
Assets |
||||
Current Assets: |
||||
Cash |
$ 26,892 |
$ 3,039 |
||
Accounts receivable, net |
112,859 |
58,929 |
||
Inventories |
86,921 |
54,530 |
||
Other current assets |
20,053 |
9,176 |
||
Total current assets |
246,725 |
125,674 |
||
Property, plant and equipment, net |
274,600 |
121,089 |
||
Goodwill and intangible assets, net |
141,904 |
9,524 |
||
Other non-current assets |
55,159 |
6,115 |
||
Total assets |
$ 718,388 |
$ 262,402 |
||
Liabilities and Stockholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 62,767 |
$ 40,687 |
||
Accrued salaries, wages and benefits |
20,821 |
11,761 |
||
Current maturities of long-term debt |
6,548 |
10,477 |
||
Income taxes payable |
1,338 |
1,340 |
||
Other current liabilities |
18,052 |
5,119 |
||
Total current liabilities |
109,526 |
69,384 |
||
Non-current deferred tax liabilities |
49,980 |
3,844 |
||
Long-term debt, net of current portion |
353,951 |
26,000 |
||
Other non-current liabilities |
24,675 |
10,414 |
||
Total liabilities |
538,132 |
109,642 |
||
Total stockholders' equity |
180,256 |
152,760 |
||
Total liabilities and stockholders' equity |
$ 718,388 |
$ 262,402 |
Reconciliation of Non-GAAP to GAAP Financial Measures
(Unaudited)
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
||
In Thousands |
In Thousands |
||
Income from operations |
$ 2,552 |
$ 7,794 |
|
Acquisition and integration costs |
8,088 |
-- |
|
Adjusted income from operations |
$ 10,640 |
$ 7,794 |
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
||||||
In Thousands |
Diluted Earnings Per Share |
In Thousands |
Diluted Earnings Per Share |
||||
Net income |
$ (3,840) |
$ (0.21) |
$ 5,052 |
$ 0.29 |
|||
After-tax acquisition and integration costs |
9,222 |
0.50 |
-- |
-- |
|||
After-tax foreign exchange loss on inter-company |
880 |
0.05 |
(44) |
-- |
|||
Adjusted net income |
$ 6,262 |
$ 0.34 |
$ 5,008 |
$ 0.29 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
||
In Thousands |
In Thousands |
||
Income from operations |
$ 19,127 |
$ 21,353 |
|
Acquisition and integration costs |
9,858 |
-- |
|
Adjusted income from operations |
$ 28,985 |
$ 21,353 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
||||||
In Thousands |
Diluted Earnings Per Share |
In Thousands |
Diluted Earnings Per Share |
||||
Net income |
$ 6,599 |
$ 0.36 |
$ 12,693 |
$ 0.74 |
|||
After-tax acquisition and integration costs |
10,354 |
0.57 |
-- |
-- |
|||
After-tax foreign exchange loss on inter-company |
880 |
0.05 |
168 |
0.01 |
|||
After-tax restructuring and other non-recurring |
-- |
-- |
399 |
0.02 |
|||
Adjusted net income |
$ 17,833 |
$ 0.98 |
$ 13,260 |
$ 0.77 |
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, Robbie Atkinson, Corporate Treasurer & Investor Relations, (423) 743-9151; AT FINANCIAL RELATIONS BOARD, Marilynn Meek, (General info), 212-827-3773