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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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) November 14, 2001
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NN, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-23485 62-1096725
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2000 Waters Edge Drive, Johnson City, Tennessee 37604
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (423) 743-9151
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Not applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events.
On November 14, 2001, the Company issued a press release announcing that,
due to the voluntary bankruptcy of one of its customers, the Company will record
a third quarter 2001 reserve for approximately $400,000 pre-tax as part of the
filing of its September 30, 2001 Form 10-Q. A copy of the press release is
attached as Exhibit 99.1 hereto and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) EXHIBITS. The following exhibits are filed herewith:
99.1 Press Release dated November 14, 2001.
SIGNATURE
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.
Date: November 14, 2001
NN, INC.
By: /s/ William C. Kelly, Jr.
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William C. Kelly, Jr.,
Chief Accounting Officer
Exhibit 99.1
[GRAPHIC OMITTED]
RE: NN Inc.
2000 Waters Edge Drive
Johnson City, TN 37604
FOR FURTHER INFORMATION:
AT THE COMPANY: AT FRB|WEBER SHANDWICK
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Will Kelly Kerry Thalheim Susan Garland
Treasurer & Manager of Investor Relations (General info) (Analyst info)
(423) 743-9151 212-445-8437 212-445-8458
FOR IMMEDIATE RELEASE
November 14, 2001
NN ANNOUNCES THIRD QUARTER RESERVE
Johnson City, Tenn - November 14, 2001 - NN, Inc. (NASDAQ: NNBR) today announced
that subsequent to the release of its third quarter 2001 earnings on October 30,
2001, the Company learned that a customer of its plastic division filed for
voluntary Chapter 7 bankruptcy protection. As a result, the Company will record
a third quarter 2001 reserve for approximately $400,000 pre-tax as part of the
filing of its September 30, 2001 Form 10-Q on November 14, 2001. As a result of
this action, the Company's earnings reported in its October 30th announcement
have been reduced for the three months and nine months ended September 30, 2001
from $0.06 per share to $0.05 per share and from $0.38 per share to $0.37 per
share, respectively.
For the nine-month period ended September 30, 2001, NN recorded sales of
approximately $1.8 million and had a trade receivable account balance of
approximately $1.0 million for this customer. Net payments received from this
customer subsequent to September 30, 2001, have reduced the outstanding balance
to approximately $800,000.
David L. Dyckman, Chief Financial Officer, stated, "We were surprised to learn
that this privately held company had filed for bankruptcy. Although we were
aware economics had slowed the Company's performance, our assessment and the
related payment history did not provide indications that would have led us to
anticipate the bankruptcy filing.
"It is also important to note that the bankruptcy proceedings are in the very
early stages and additional information is limited on this situation. However,
we can say that NN will have representation on the creditors' committee in an
effort to minimize our risk of loss. We feel that
the recording of a reserve for approximately $400,000 as part of the filing of
our September 30, 2001 Form 10-Q is warranted under the circumstances given the
information in our possession at this time.
"Although this situation is a concern to us, we do not anticipate any adverse
financial impact on our fourth quarter 2001 or full year 2002 financials beyond
the potential write-off of the trade accounts receivable balance. Over the last
couple of years, we have had a declining sales relationship with this customer
as they have moved production offshore. As a consequence, we did not include any
sales from this customer in our previously announced 2002 forecasts," added Mr.
Dyckman.
NN, Inc. is an independent manufacturer and supplier of high quality,
precision-bearing components to both domestic and international anti-friction
bearing manufacturers and had sales of US $132 million in 2000.
With the exception of the historical information contained in the release, the
matters described herein contain forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve a number of risks and
uncertainties that may cause actual results to be materially different from such
forward-looking statements. Such factors include, among others, general economic
conditions and economic conditions in the industrial sector, competitive
influences, risks that current customers will commence or increase captive
production, risks of capacity underutilization, quality issues, availability of
raw materials, currency and other risks associated with international trade, the
Company's dependence on certain major customers, 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,
2000.
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