- Record full year net sales including acquisitions of
$488.6 million , an increase of$115.4 million or 31% compared to 2013 - Record annual adjusted income from operations of
$39.9 million before acquisition and integration charges, an increase of 40% compared to the prior year - Record adjusted net income for 2014 of
$23.5 million or$1.29 per diluted share - 2015 foreign currency adjusted revenue forecast of
$670 to $690 million
Fourth Quarter 2014 Results
Net sales for the fourth quarter increased
Adjusted income from operations which excludes acquisition and other related expenses for the fourth quarter was
Reported income from operations for the fourth quarter was
Full Year 2014 Results
Net sales for full year 2014 increased
The primary drivers behind these results were the four acquisitions, organic and adjacent market growth coupled with improved operating performance.
Reported income from operations for the year 2014 was
"The global economy in 2015 will again present a mixed bag. While we are optimistic the global economy will see improvement as the year progresses, our businesses are built to expand margins in the current environment. As some of the weaker markets begin to show improvement in 2015 and beyond, we are in position to bring strong incremental profits to the bottom line. We will continue to closely monitor the impact of foreign exchange on all our businesses. We expect foreign exchange to have a negative impact on 2015 sales of 3% to 5%. With this backdrop we expect 2015 to be another solid year of growth for us. Our businesses will be growing at 8% while our margins continue to expand as we continue to make progress on the strategic initiatives we have in place. We are forecasting our 2015 foreign currency adjusted revenue to be
Mr. Holder concluded, "I am very proud of our accomplishments during the fourth quarter and over the past year. My sincere thanks to our entire team. The results of the fourth quarter and full year 2014 continue to provide evidence that we are committed to do what we said we would do. We are extremely excited about 2015 and remain well positioned to deliver increased shareholder value, while continuing to execute our strategic plan to build a diversified industrial company that is a consistent earner through the cycle."
The attached financial tables include a reconciliation of adjusted income from operations and adjusted net income to the U.S. GAAP financial measures of income from operations and net income.
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 |
Twelve Months Ended |
|||||||
2014 |
2013 |
2014 |
2013 |
|||||
Net Sales |
$ 153,761 |
$ 90,081 |
$ 488,601 |
$ 373,206 |
||||
Cost of products sold (exclusive of |
119,879 |
71,848 |
384,889 |
295,136 |
||||
Selling, general and administrative |
13,957 |
7,737 |
43,756 |
33,281 |
||||
Acquisition related costs excluded from |
2,168 |
-- |
9,248 |
-- |
||||
Depreciation and amortization |
8,322 |
4,022 |
22,146 |
16,957 |
||||
Impairment Charges |
875 |
-- |
875 |
-- |
||||
Loss on disposal of assets |
-- |
-- |
-- |
5 |
||||
Income from Operations |
8,560 |
6,474 |
27,687 |
27,827 |
||||
Interest expense |
5,556 |
225 |
12,293 |
2,374 |
||||
Other expense, net |
453 |
191 |
2,222 |
275 |
||||
Income before provision for income taxes |
2,551 |
6,058 |
13,172 |
25,178 |
||||
Provision for income taxes |
1,539 |
1,573 |
5,786 |
8,000 |
||||
Share of net income (loss) from joint |
606 |
-- |
831 |
-- |
||||
Net income |
$ 1,618 |
$ 4,485 |
$ 8,217 |
$ 17,178 |
||||
Diluted income per common share |
$ 0.08 |
$ 0.25 |
$ 0.45 |
$ 1.00 |
||||
Weighted average diluted shares |
19,317 |
17,817 |
18,253 |
17,260 |
||||
NN, Inc. |
||||
Condensed Balance Sheets |
||||
(In thousands) |
||||
(Unaudited) |
||||
December 31, 2014 |
December 31, 2013 |
|||
Assets |
||||
Current Assets: |
||||
Cash |
$ 37,317 |
$ 3,039 |
||
Accounts receivable, net |
97,510 |
58,929 |
||
Inventories |
91,469 |
54,530 |
||
Other current assets |
15,210 |
9,176 |
||
Total current assets |
241,506 |
125,674 |
||
Property, plant and equipment, net |
278,442 |
121,089 |
||
Goodwill and intangible assets, net |
136,768 |
9,524 |
||
Other non-current assets |
58,126 |
6,115 |
||
Total assets |
$ 714,842 |
$ 262,402 |
||
Liabilities and Stockholders' Equity |
||||
Current liabilities: |
||||
Accounts payable |
$ 71,094 |
$ 40,687 |
||
Accrued salaries, wages and benefits |
20,873 |
11,761 |
||
Current maturities of long-term debt |
22,160 |
10,477 |
||
Income taxes payable |
3,274 |
1,340 |
||
Other current liabilities |
20,197 |
5,119 |
||
Total current liabilities |
137,598 |
69,384 |
||
Non-current deferred tax liabilities |
48,039 |
3,844 |
||
Long-term debt, net of current portion |
328,026 |
26,000 |
||
Other non-current liabilities |
27,931 |
10,414 |
||
Total liabilities |
541,594 |
109,642 |
||
Total stockholders' equity |
173,248 |
152,760 |
||
Total liabilities and stockholders' equity |
$ 714,842 |
$ 262,402 |
Reconciliation of Non-GAAP to GAAP Financial Measures
(Unaudited)
Three Months December 31, |
Three Months December 31, |
||
In |
In Thousands |
||
Income from operations |
$ 8,560 |
$ 6,474 |
|
Acquisition and integration costs |
1,452 |
-- |
|
Impairment charges |
875 |
-- |
|
Adjusted income from operations |
$ 10,887 |
$ 6,474 |
Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
||||||
In |
Diluted |
In |
Diluted |
||||
Net income |
$ 1,618 |
$ 0.08 |
$ 4,485 |
$ 0.25 |
|||
After-tax acquisition and integration costs |
3,199 |
0.17 |
-- |
-- |
|||
After-tax foreign exchange loss on inter-company |
317 |
0.02 |
|||||
After-tax impairment charges |
577 |
0.03 |
-- |
-- |
|||
Adjusted net income |
$ 5,711 |
$ 0.30 |
$ 4,485 |
$ 0.25 |
Twelve December 31, |
Twelve December 31, |
||
In Thousands |
In Thousands |
||
Income from operations |
$ 27,687 |
$ 27,827 |
|
Acquisition and integration costs |
11,311 |
-- |
|
Restructuring and Impairment charges |
875 |
568 |
|
Adjusted income from operations |
$ 39,873 |
$ 28,395 |
Twelve Months Ended December 31, 2014 |
Twelve Months Ended December 31, 2013 |
||||||
In |
Diluted |
In |
Diluted |
||||
Net income |
$ 8,217 |
$ 0.45 |
$ 17,178 |
$ 1.00 |
|||
After-tax acquisition and integration costs |
13,553 |
0.74 |
-- |
-- |
|||
After-tax foreign exchange loss on inter-company |
1,197 |
0.07 |
84 |
0.01 |
|||
After-tax impairment charges |
577 |
0.03 |
483 |
0.02 |
|||
Adjusted net income |
$ 23,544 |
$ 1.29 |
$ 17,745 |
$ 1.03 |
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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nn-inc-reports-fourth-quarter-and-full-year-2014-results-300048112.html
SOURCE
AT THE COMPANY: Robbie Atkinson, Corporate Treasurer & Investor Relations, (423) 434-8300 or AT FINANCIAL RELATIONS BOARD: Marilynn Meek, (General info), 212-827-3773