UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT
REPORT
PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest
event reported): May 1, 2008
NN, INC.
(Exact name of registrant as
specified in its charter)
|
Delaware
|
0-23486
|
62-1096725
|
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
2000 Waters Edge
Drive
|
37604
|
|
|
Johnson City,
Tennessee
|
(Zip
Code)
|
|
|
(Address
of principal executive offices)
|
Registrant's
telephone number, including area code: (423) 743-9151
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFT
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFT
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFT
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFT
240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS
AND FINANCIAL CONDITIONS
Furnished
as Exhibit 99.1 is NN Inc.'s press release dated May 1, 2008 regarding
the earnings for first quarter 2008.
ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS
The
following exhibit is furnished pursuant to Item 2.02, is not considered "filed"
under the Securities Exchange Act of 1934, as amended, and shall not be
incorporated by reference into any of the previous or future filings of NN, Inc,
Inc. under the Securities Act of 1933, as amended, or the Exchange
Act.
Exhibit:
Exhibit
Number Description of
Exhibit
99.1
Press Release of NN, Inc. dated May 1, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
| NN, INC. | |||
|
Date: May 1,
2008
|
By:
|
/s/ William C. Kelly, Jr. | |
| Name: William C. Kelly, Jr. | |||
| Title: Vice
President and
Chief Administrative Officer
|
|||
EXHIBIT 99.1
0; 
RE: NN, Inc.
2000
Waters Edge Drive
Johnson
City, TN 37604
FOR
FURTHER INFORMATION:
|
AT
THE COMPANY
|
AT
FINANCIAL RELATIONS BOARD
|
| Will Kelly | Marilynn Meek |
| Vice President and Chief Administrative Officer | (General info) |
| (423) 743-9151 | 212-827-3773 |
FOR
IMMEDIATE RELEASE
May 1,
2008
NN,
INC. REPORTS EARNINGS PER SHARE OF $0.32 FOR THE FIRST QUARTER 2008
First
Quarter 2008 Revenues Rise to $121.5 Million and Earnings per Share up 45.5% to
a Quarterly Record of $0.32 per Diluted Share
Johnson City, Tenn, May 1, 2008
– NN, Inc. (Nasdaq: NNBR) today reported its financial results for the
first quarter ended March 31, 2008. Net sales for the first quarter
of 2008 were $121.5 million, an increase of $13.6 million or 12.6% from $107.9
million for the same period of 2007. Net income for the first quarter
of 2008 totaled $5.1 million or $0.32 per diluted share as compared to $3.8
million or $0.22 per diluted share for the same period in 2007.
James H.
Dorton, Vice President and Chief Financial Officer commented, “We are pleased to
report revenues of $121.5 million for the quarter, a $13.6 million increase over
last year’s first quarter. Accounting for the increase was the
positive effect of currency translation of $8.1 million and net volume gains of
5.1%, or $5.5 million.”
Mr.
Dorton continued, “As a percentage of net sales, 2008 first quarter cost of
goods sold was 79.4% as compared to the 2007 first quarter cost of goods sold of
78.8%. Level 3 cost reductions and margin improvements at Whirlaway,
China and Slovakia offset the unfavorable effects of cost increases and
transactional currency losses at our Veenendaal, The Netherlands operation. As a
percentage of net sales, selling, general and administrative expenses for this
year’s first quarter were 8.4% as compared to 8.7% for the same period in
2007. Our reported net income of $5.1 million and $0.32 per diluted
share was up 34.2% and 45.5%, respectively in comparison to our 2007 first
quarter net income of $3.8 million, or $0.22 per diluted share. Our
year-over-year earnings per share improvements are higher in comparison to our
net income improvement due to the impact of the company’s share repurchase
program. During 2007, we repurchased 1,008,439 shares of the
Company’s stock.”
1
Mr.
Dorton concluded, “For 2008, we are focusing on further strengthening our
balance sheet by concentrating on specific working capital
improvements. Although we traditionally experience higher working
capital needs in the first quarter, we are beginning to see the results of our
efforts and are on track to meet our working capital goals for the
year.”
Roderick
R. Baty, Chairman and Chief Executive Officer commented, “In the latter part of
2007, we began to see evidence of improvements in three operations – Whirlaway,
Slovakia and China. During the first quarter of 2008, we experienced
improved profitability and operating margins at each of these locations as
compared to the prior year, due mainly to higher capacity utilization resulting
from new business awards at all three operations. However, we did
experience lower revenues and profits than planned in our Plastics and Rubber
Components Segment, driven principally by reductions in North American
automotive demand. Finally, with the exception of the transactional
currency losses in our Veenendaal, The Netherlands operation, our core Metal
Bearing Components operations in Europe and the U.S. are continuing to perform
extremely well and exceeded our expectations for the first quarter in both
revenues and earnings.”
Mr. Baty
concluded, “We are encouraged by our first quarter financial performance and in
particular the results from our operations that experienced profitability
difficulties in 2007. Economic conditions in Europe for both
automotive and industrial end markets remain healthy along with good demand in
the industrial end markets in North America. Although North American
reduced automotive demand impacted some of our U.S. operations in the first
quarter, the reductions we experienced were essentially forecasted at the
beginning of the year. Consequently, we see overall good levels of
global demand and corresponding revenues continuing into the second quarter of
the year.”
NN, Inc.
manufacturers and supplies high precision metal bearing components, industrial
plastic and rubber products and precision metal components to a variety of
markets on a global basis. Headquartered in Johnson City, Tennessee,
NN has 14 manufacturing plants in the United States, Western Europe, Eastern
Europe and China. NN, Inc. had sales of US $421 million in
2007.
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 NN, Inc. and its subsidiaries to differ materially from those
expressed or implied by this discussion. All forward-looking
information is provided by the Company pursuant to the safe harbor established
under the Private Securities Litigation Reform Act of 1995 and should be
evaluated in the context of these factors. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as
“assumptions”, “target”, “guidance”, “outlook”, “plans”, “projection”, “may”,
“will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”,
“potential” or “continue” (or the negative or other derivatives of each of these
terms) or similar terminology. Factors which could materially affect actual
results include, but are not limited to: general economic conditions and
economic conditions in the industrial sector, inventory levels, regulatory
compliance costs and the Company's ability to manage these costs, start-up costs
for new operations, debt reduction, competitive influences, risks that current
customers will commence or increase captive production, risks of capacity
underutilization, quality issues, availability and price of raw materials,
currency and other risks associated with international trade, the Company’s
dependence on certain major customers, the successful implementation of the
global growth plan including development of new products and consummation of
potential acquisitions and other risk factors and cautionary statements listed
from time to time in the Company’s periodic reports filed with the Securities
and Exchange Commission, including, but not limited to, the Company’s Annual
Report on 10-K for the fiscal year ended December 31, 2007.
Financial
Tables Follow
2
NN,
Inc.
Consolidated
Statements of Income
(In
thousands, except per share amounts)
(Unaudited)
|
Three
Months Ended
|
||||||||
|
March
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Net
sales
|
$ | 121,542 | $ | 107,944 | ||||
|
Cost
of goods sold (exclusive of depreciation shown
separately below)
|
96,494 | 85,082 | ||||||
|
Selling,
general and administrative
|
10,209 | 9,424 | ||||||
|
Depreciation
and amortization
|
6,263 | 5,523 | ||||||
|
Gain
on disposal of assets
|
(141 | ) | (5 | ) | ||||
|
Income
from operations
|
8,717 | 7,920 | ||||||
|
Interest
expense, net
|
1,542 | 1,694 | ||||||
|
Other
(income) loss
|
(136 | ) | 26 | |||||
|
Income
before provision for income taxes
|
7,311 | 6,200 | ||||||
|
Provision
for income taxes
|
2,209 | 2,445 | ||||||
|
Net
income
|
$ | 5,102 | $ | 3,755 | ||||
|
Diluted
income per common share
|
$ | 0.32 | $ | 0.22 | ||||
|
Weighted
average diluted shares
|
15,962 | 17,033 | ||||||
3
NN,
Inc.
Condensed
Balance Sheets
(In
thousands)
(Unaudited)
|
March
31,
2008
|
December
31,
2007
|
|||||||
|
Assets
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
|
$ | 12,902 | $ | 13,029 | ||||
|
Accounts
receivable, net
|
81,311 | 65,566 | ||||||
|
Inventories,
net
|
55,016 | 51,821 | ||||||
|
Other
current assets
|
8,121 | 7,608 | ||||||
|
Total
current assets
|
157,350 | 138,024 | ||||||
|
Property,
plant and equipment, net
|
168,933 | 161,008 | ||||||
|
Goodwill,
net
|
40,474 | 39,471 | ||||||
|
Other
assets
|
12,468 | 11,575 | ||||||
|
Total
assets
|
$ | 379,225 | $ | 350,078 | ||||
|
Liabilities
and Stockholders’ Equity
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 58,142 | $ | 51,124 | ||||
|
Dividends
payable
|
1,268 | -- | ||||||
|
Accrued
salaries and wages
|
17,234 | 15,087 | ||||||
|
Current
portion of long-term debt
|
11,313 | 11,851 | ||||||
|
Other
liabilities
|
8,612 | 6,194 | ||||||
|
Total
current liabilities
|
96,569 | 84,256 | ||||||
|
Deferred
income taxes
|
20,284 | 18,682 | ||||||
|
Long-term
notes payable
|
100,127 | 100,193 | ||||||
|
Other
liabilities
|
18,091 | 16,904 | ||||||
|
Total
liabilities
|
235,071 | 220,035 | ||||||
|
Total
stockholders’ equity
|
144,154 | 130,043 | ||||||
|
Total
liabilities and stockholders’ equity
|
$ | 379,225 | $ | 350,078 | ||||
###
4