JOHNSON CITY, Tenn.,
May 6, 2015 /PRNewswire/ -- NN,
Inc., (NASDAQ: NNBR) a diversified industrial company, today
reported its financial results for the first quarter ended
March 31, 2015.
First Quarter 2015 Results
Net sales for the first quarter of 2015 increased $61.2 million, or 60%, to $163.7 million, compared to $102.5 million for the first quarter of
2014. Excluding acquisitions that occurred after the first
quarter of 2014 and currency effects, the Company had sales volume
growth of $7.8 million or 7.6%,
compared with the prior year. Acquisitions made subsequent to
March 31, 2014 added $62.0 million in revenue. Negative currency
impacts reduced reported revenue by $8.3
million versus the first quarter of last year.
Adjusted income from operations for the first quarter of 2015
was $13.9 million, an increase of
58%, compared to $8.8 million for the
same period in 2014. Adjusted net income, which excludes the
after-tax impact of foreign exchange on inter-company loans,
increased to $6.9 million or
$0.36 per diluted share, compared to
$5.6 million or $0.31 per diluted share for the same period in
2014.
On a GAAP basis, income from operations for the first quarter of
2015 was $13.9 million, compared to
$8.3 million for the same period in
2014. Net income on a GAAP basis for the first quarter of 2015 was
$6.0 million or $0.31 per diluted share. This compares to
$5.2 million or $0.29 per diluted share in the first quarter of
2014.
Richard Holder, President and
Chief Executive Officer, commented, "Our first quarter results are
in line with our expectations and provide a solid start to the
year. The four acquisitions made in 2014 remain ahead of our stated
integration and synergy targets for 2015. "
Business Group Results
Metal Bearing Components
Net sales for the group increased $2.3
million to $73.2 million
during the first quarter of 2015, compared to $70.9 million for first quarter 2014. Excluding
acquisitions, volume increases, organic and adjacent market growth
of $8.0 million was offset by a
currency translation impact of $8.3
million. Income from operations for the first quarter
was $9.1 million, compared to
$8.8 million in the first quarter of
2014.
"Our opportunities in the Metal Bearing Components Group
continue to expand beyond the historical scope of the business,"
said Holder. "Volume and new growth opportunities continue to look
strong as we head into the second quarter."
Autocam Precision Components
Net sales for the first quarter of 2015 were $82.6 million, compared to $23.7 million in the first quarter of 2014, an
increase of $58.9 million.
Acquisitions accounted for $59.3
million of the increase. Income from operations for
the quarter increased $5.2 million to
$7.7 million, compared to
$2.6 million in the first quarter of
2014.
Holder commented, "The integration of the Autocam acquisition
continues to exceed our expectations and we expect this trend to
continue as several programs are projected to reach expected
operating performance levels during the second and third quarters
of this year."
Plastic and Rubber Components
Net sales for the first quarter were $7.9
million, which was equal to the same period in 2014. Income
from operations for the quarter was $0.2
million compared to $0.2
million in 2014.
Holder concluded, "The first quarter was in line with our
expectations and we anticipate continued improvement in our
businesses operating performance throughout the year."
NN will discuss its results during its quarterly investor
conference call tomorrow morning starting at 9:00 a.m. ET. The call and an accompanying
slide presentation may be accessed via NN's website or
www.earnings.com. For those who are unavailable to listen to the
live broadcast, a replay will be available shortly after the call
for 90 days.
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.
NN, Inc., a diversified industrial company manufactures 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 25
manufacturing plants in the United
States, 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 pending or completed
acquisitions are also forward-looking statements, including
statements relating to the anticipated closing date of an
acquisition, the Company's ability to obtain required regulatory
approvals or satisfy closing conditions, the costs of an
acquisition and the Company's source(s) of financing, 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. 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
|
|
|
March
31,
|
|
|
2015
|
|
2014
|
Net sales
|
|
$163,746
|
|
$102,528
|
Cost of products sold
(exclusive of depreciation and amortization shown separately
below)
|
|
129,317
|
|
80,283
|
Selling, general and
administrative
|
|
12,001
|
|
10,030
|
Depreciation and
amortization
|
|
8,494
|
|
3,877
|
Income from
operations
|
|
13,934
|
|
8,338
|
|
|
|
|
|
Interest
expense
|
|
5,938
|
|
564
|
Other expense,
net
|
|
1,400
|
|
83
|
Income before
provision for income taxes and share of net income from joint
venture
|
|
6,596
|
|
7,691
|
|
|
|
|
|
Provision for income
taxes
|
|
1,456
|
|
2,453
|
Share of net income
from joint venture
|
|
861
|
|
--
|
Net income
|
|
6,001
|
|
5,238
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
common share:
|
|
$0.31
|
|
$0.29
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
19,380
|
|
17,962
|
|
|
|
|
|
NN, Inc.
Condensed Balance
Sheets
(In thousands)
(Unaudited)
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$16,760
|
|
$37,317
|
Accounts
receivable, net
|
117,249
|
|
97,510
|
Inventories
|
85,629
|
|
91,469
|
Other current
assets
|
18,370
|
|
16,503
|
Total current
assets
|
$238,008
|
|
242,799
|
|
|
|
|
Property, plant and
equipment, net
|
$264,805
|
|
278,442
|
Goodwill,
net
|
83,004
|
|
83,941
|
Intangible asset,
net
|
51,419
|
|
52,827
|
Investment in joint
venture
|
36,895
|
|
34,703
|
Other non-current
assets
|
20,255
|
|
20,001
|
Total assets
|
$694,386
|
|
$712,713
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$61,801
|
|
$71,094
|
Accrued
salaries, wages and benefits
|
18,792
|
|
21,148
|
Current
maturities of long-term debt
|
23,248
|
|
22,160
|
Income taxes
payable
|
6,275
|
|
3,274
|
Current
portion of obligations under capital lease
|
5,439
|
|
5,418
|
Other current
liabilities
|
11,584
|
|
14,504
|
Total current
liabilities
|
127,139
|
|
137,598
|
|
|
|
|
Non-current deferred
tax liabilities
|
47,804
|
|
49,461
|
Long-term debt, net
of current portion
|
334,995
|
|
328,026
|
Obligations under
capital lease, net of current portion
|
12,823
|
|
14,539
|
Other non-current
liabilities
|
10,337
|
|
9,390
|
Total liabilities
|
$533,098
|
|
539,014
|
|
|
|
|
Total stockholders'
equity
|
$161,288
|
|
173,699
|
Total liabilities and
stockholders' equity
|
$694,386
|
|
$712,713
|
NN, Inc.
Reconciliation of Non-GAAP
to GAAP Financial Measures
(Unaudited)
|
Three
Months
Ended
March, 31,
2015
|
|
Three
Months
Ended
March, 31,
2014
|
|
(In
Thousands)
|
|
(In
Thousands)
|
Income from
operations
|
13,934
|
|
8,338
|
Acquisition and
integration expenses
|
-
|
|
491
|
Adjusted Income from
operations
|
13,934
|
|
8,829
|
|
|
|
|
|
Three Months
Ended
March 31,
2015
|
|
Three Months
Ended
March 31,
2014
|
|
(In
Thousands)
|
|
Diluted
Earnings
Per
Share
|
|
(In
Thousands)
|
|
Diluted
Earnings
Per
Share
|
|
|
|
|
|
|
|
|
Net Income
|
$6,001
|
|
$ 0.31
|
|
$5,238
|
|
$ 0.29
|
After tax acquisition
and integration expenses
|
-
|
|
0.00
|
|
314
|
|
0.02
|
After-tax foreign
exchange loss on inter-company loans
|
886
|
|
0.05
|
|
-
|
|
0.00
|
Adjusted Net
Income
|
$6,887
|
|
$0.36
|
|
$5,552
|
|
$0.31
|
|
|
|
|
|
|
|
|
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-first-quarter-2015-results-300079069.html
SOURCE NN, Inc.