JOHNSON CITY, Tenn.,
March 15, 2016 /PRNewswire/
-- NN, Inc., (NASDAQ: NNBR), a diversified industrial company,
reported that it has today filed its Annual Report on Form 10-K for
the year ended December 31,
2015. The report may be viewed or downloaded from the
company's website, www.nninc.com. The Company initially
reported its financial results for the fourth quarter and year
ended December 31, 2015 on
March 10, 2016.
In the GAAP Results section of the March
10, 2016 release, the Company overstated its net loss for
the quarter of $27.1 million or
$(1.01) per share. The correct net
loss for the quarter, as filed in the Company's Annual Report on
Form 10-K on March 15, 2016, is
$25.0 million or $(0.93) per share. Similarly, the Company
overstated its net loss for the year of $9.6
million or $(0.45) per share.
The correct net loss for the year is $7.4
million or $(0.35) per share.
The changes resulted primarily from adjustments in income tax
expense related to non-deductible mergers and acquisitions expense.
Additionally, the Company identified an adjustment related to
the Chinese Joint Venture that impacted the share of net income
from joint venture and provision for income taxes but did not
impact net income.
The changes noted above did not change the Company's adjusted
income from operations, adjusted net income or adjusted earnings
per share.
Please see the following reconciliation of changes to the income
statement attached in the tables below.
The Company discloses in this press release the non-GAAP
financial measures of adjusted income from operations and adjusted
net income. Each of adjusted income from operations and
adjusted net income provide supplementary information about the
impacts of acquisition related expenses, foreign-exchange and other
non-operating impacts on its business. The Company believes
the presentation of adjusted income from operations and adjusted
net income provides useful information in assessing our results of
operations
The attached financial tables include a reconciliation of
adjusted income from operations and adjusted net income to the GAAP
financial measures of income from operations and net income.
NN, Inc., a diversified industrial company, combines advanced
engineering and production capabilities with in-depth materials
science expertise to design and manufacture high-precision
components and assemblies for a variety of markets on a global
basis. Headquartered in Johnson
City, Tennessee, NN has 42 manufacturing plants in
North America, Western Europe, Eastern Europe, South America and China.
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, and the successful implementation of the global growth
plan including development of new products. Similarly, statements
made herein and elsewhere regarding completed acquisitions are also
forward-looking statements, including statements relating to the
future performance and prospects of an acquired business, the
expected benefits of an acquisition on the Company's future
business and operations and the ability of the Company to
successfully integrate recently acquired businesses.
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 Securities and
Exchange Commission, including, but not limited to, the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and the Quarterly Report on
Form 10-Q for the quarterly period ended September 30, 2015. Except as required by law, we
undertake no obligation to update or revise any forward-looking
statements we make in our press releases, whether as a result of
new information, future events or otherwise.
Financial Tables Follow
NN,
Inc.
|
Consolidated
Statements of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
2015
|
Twelve Months
Ended
December 31,
2015
|
|
|
|
(In Thousands of
Dollars, Except Per Share Data)
|
As Reported
in March 10,
2016 Press
Release
|
As Reported in
the 10-K on
March 15,
2016
|
Change
|
As Reported
in March 10,
2016 Press
Release
|
As Reported
in the 10-K
on March 15,
2016
|
Change
|
Net sales
|
$183,855
|
$183,855
|
-
|
$667,280
|
$667,280
|
-
|
Cost of products sold
(exclusive of depreciation
and amortization shown separately
below)
|
147,773
|
147,773
|
-
|
525,993
|
525,993
|
-
|
Selling, general and
administrative
|
14,771
|
13,835
|
(936)
|
51,902
|
51,745
|
(157)
|
Acquisition related
costs excluded from selling, general and administrative
|
6,256
|
7,734
|
1,478
|
10,884
|
11,682
|
798
|
Depreciation and
amortization
|
18,780
|
18,780
|
-
|
44,482
|
44,482
|
-
|
(Gain) loss on
disposal of assets
|
-
|
(687)
|
(687)
|
|
(687)
|
(687)
|
Restructuring and
impairment charges
|
5,195
|
7,268
|
2,073
|
5,294
|
7,268
|
1,974
|
Income from
operations
|
(8,920)
|
(10,848)
|
(1,928)
|
28,725
|
26,797
|
(1,928)
|
|
|
|
|
|
|
|
Interest
expense
|
13,357
|
13,357
|
-
|
29,899
|
29,899
|
-
|
Write-off of
unamortized debt issuance cost
|
18,673
|
18,673
|
-
|
18,673
|
18,673
|
-
|
Other expense,
net
|
1,091
|
(837)
|
(1,928)
|
3,103
|
1,175
|
(1,928)
|
Income before
provision (benefit) for income
taxes and share of net
income from joint venture
|
(42,041)
|
(42,041)
|
-
|
(22,950)
|
(22,950)
|
-
|
Provision (benefit)
for income taxes
|
(13,923)
|
(14,527)
|
(604)
|
(9,914)
|
(10,518)
|
(604)
|
Share of net income
from joint venture
|
951
|
2498
|
1,547
|
3,454
|
5,001
|
1,547
|
Net income (loss)
|
$(27,167)
|
$(25,016)
|
2,151
|
$(9,582)
|
$(7,431)
|
2,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per common share:
|
$(1.01)
|
$(0.93)
|
$0.08
|
$(0.45)
|
$ (0.35)
|
$0.10
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
26,840
|
26,840
|
-
|
21,181
|
21,181
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per common share:
|
$(1.01)
|
$(.93)
|
$0.08
|
$(0.45)
|
$(0.35)
|
$.10
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
26,840
|
26,840
|
-
|
21,181
|
21,181
|
-
|
|
|
|
|
|
|
|
Cash dividends per
common share
|
$ 0.07
|
$ 0.07
|
-
|
$ 0.28
|
$ 0.28
|
-
|
NN,
Inc.
|
Reconciliation of
Non-GAAP to GAAP Financial Measures
|
(Unaudited)
|
|
Reconciliation of
net income to adjusted net income:
|
|
|
|
|
|
|
NN, Inc. – Total
Company
|
Three Months
Ended
December 31, 2015
|
|
Three Months
Ended
December 31, 2014
|
|
(In
Thousands)
|
|
Diluted
Earnings Per
Share
|
|
(In
Thousands)
|
|
Diluted
Earnings Per
Share
|
Net Income
|
$(25,016)
|
|
$(0.93)
|
|
$1,618
|
|
$0.08
|
After tax acquisition
and integration expenses
|
23,410
|
|
0.87
|
|
3,199
|
|
0.17
|
After-tax foreign
exchange loss on inter-company loans
|
31
|
|
0.00
|
|
317
|
|
0.02
|
After-tax impairment
charges
|
4,565
|
|
0.17
|
|
577
|
|
0.03
|
Amortization of
intangibles & deferred financing costs, net of tax
|
3,796
|
|
0.14
|
|
969
|
|
0.05
|
Adjusted Net
Income
|
$6,786
|
|
$0.25
|
|
$6,680
|
|
$0.35
|
|
|
|
|
|
|
|
|
Reconciliation of
net income to adjusted net income:
|
|
|
|
|
|
|
NN, Inc. – Total
Company
|
Twelve Months
Ended
December 31, 2015
|
|
Twelve Months
Ended
December 31, 2014
|
|
(In
Thousands)
|
|
Diluted
Earnings Per
Share
|
|
(In
Thousands)
|
|
Diluted
Earnings Per
Share
|
Net Income
|
$(7,431)
|
|
$(0.35)
|
|
$8,217
|
|
$0.45
|
After
tax acquisition and integration expenses
|
27,222
|
|
1.29
|
|
13,553
|
|
0.74
|
After-tax foreign
exchange loss on inter-company loans
|
952
|
|
0.04
|
|
1,197
|
|
0.07
|
After-tax impairment
charges
|
4,575
|
|
0.22
|
|
577
|
|
0.03
|
Amortization of
intangibles & deferred financing costs, net of tax
|
7,040
|
|
0.33
|
|
1,435
|
|
0.08
|
Adjusted Net
Income
|
$32,358
|
|
$1.53
|
|
$24,979
|
|
$1.37
|
|
|
|
|
|
|
|
|
Reconciliation of
income from operations to adjusted income from
operations:
|
|
|
|
|
NN, Inc. – Total
Company
|
Three Months
Ended
December 31, 2015
|
|
Three Months
Ended
December 31, 2014
|
|
Twelve Months
Ended
December 31, 2015
|
|
Twelve Months
Ended
December 31, 2014
|
|
(In
Thousands)
|
|
(In
Thousands)
|
|
(In
Thousands)
|
|
(In
Thousands)
|
Income from
operations
|
$(10,848)
|
|
$8,560
|
|
$26,797
|
|
$27,687
|
Restructuring &
impairment charges
|
7,379
|
|
875
|
|
7,379
|
|
875
|
Acquisition and
integration expenses
|
17,931
|
|
1,452
|
|
23,749
|
|
11,311
|
Amortization of
intangibles
|
4,940
|
|
971
|
|
7,790
|
|
1,340
|
Adjusted Income from
operations
|
$19,402
|
|
$11,858
|
|
$65,715
|
|
$41,213
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nn-inc-files-annual-report-on-form-10-k-for-2015-300236704.html
SOURCE NN, Inc.