GAAP Results
Net sales for the third quarter of 2017 increased
On a GAAP basis, income from operations for the third quarter of 2017 was
On a GAAP basis, income from operations for third quarter 2017 in the
On a GAAP basis, income from operations for third quarter 2017 in the
Adjusted Results
Adjusted income from operations for the third quarter of 2017 was
Business Group Results
Autocam Precision Components
Net sales for the third quarter of 2017 were
Mr. Holder commented, "Autocam continues to take share and outgrow its CAFE end market. During the quarter we had several program wins that required immediate investments due to the short project launch requirements. These investments had a small near term impact on their profitability."
Precision Engineered Products
Net sales for the third quarter of 2017 were
Mr. Holder commented, "The impacts of the hurricanes during the third quarter had a negative effect on our profitability as we were unable to ship to several of our customers. We expect this to resolve in the fourth quarter."
Mr. Holder concluded, "The third quarter was another transformative period for the organization as we divested our PBC business. Additionally, our performance this quarter was negatively impacted by weather delays within the business. We expect these anomalies to our performance to normalize in the fourth quarter."
The full set of financial guidance for the fourth quarter and full year 2017 can be found in our supplemental presentation posted in the Investor Relations section of our website at www.nninc.com.
NN will discuss its results during its quarterly investor conference call tomorrow morning starting at
NN discloses in this press release the non-GAAP financial measures of adjusted income from operations and adjusted income (loss) from continuing operations. Each of adjusted income from operations and adjusted income (loss) from continuing operations provide supplementary information about the impacts of acquisition related expenses, foreign-exchange and other non-operating impacts on our business.
The financial tables found later in this press release include a reconciliation of adjusted income from operations, adjusted income (loss) from continuing operations to the U.S. GAAP financial measures of income from operations, and income (loss) from continuing operations.
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. |
|||
Condensed Consolidated Statements Operations |
|||
(Unaudited) |
|||
Three Months Ended |
|||
September 30, |
|||
2017 |
2016 |
||
Net sales |
$ 148,156 |
$ 146,714 |
|
Cost of products sold (exclusive of depreciation and |
110,836 |
107,185 |
|
Selling, general and administrative expense |
16,985 |
14,201 |
|
Acquisition related costs excluded from selling, general and |
619 |
- |
|
Depreciation and amortization |
13,075 |
11,737 |
|
Restructuring and integration expense |
345 |
606 |
|
Income from operations |
6,296 |
12,985 |
|
Interest expense |
12,739 |
15,801 |
|
Loss on extinguishment of debt and write-off of unamortized |
- |
2,589 |
|
Derivative payments on interest rate swap |
- |
609 |
|
Derivative loss (gain) on change in interest rate swap fair value |
(27) |
3,130 |
|
Other (income) expense, net |
(848) |
(263) |
|
Loss from continuing operations before benefit for income |
(5,568) |
(8,881) |
|
Benefit for income taxes |
(1,011) |
(7,733) |
|
Share of net income from joint venture |
1,202 |
1,427 |
|
Income (loss) from continuing operations |
(3,355) |
279 |
NN, Inc. |
|||
Condensed Consolidated Balance Sheets |
|||
(Unaudited) |
|||
September 30, |
December 31, |
||
2017 |
2016 |
||
Cash and cash equivalents |
$ 347,380 |
$ 6,271 |
|
Current maturities of long-term debt |
21,090 |
12,751 |
|
Current portion of obligations under capital leases |
2,905 |
3,332 |
|
Long-term debt, net of current portion |
793,999 |
785,713 |
|
Obligations under capital leases, net of current portion |
1,723 |
3,240 |
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations |
||||||
Three Months Ended |
Three Months Ended |
|||||
$000s |
September 30, |
$000s |
September 30, |
|||
NN, Inc. Consolidated |
2017 |
2016 |
Precision Engineered Products |
2017 |
2016 |
|
GAAP income from operations |
$ 6,296 |
$ 12,985 |
GAAP income from operations |
$ 7,922 |
$ 9,913 |
|
Restructuring and integration expense |
345 |
286 |
Restructuring and integration expense |
- |
- |
|
Acquisition and transition expense |
2,922 |
757 |
Acquisition and transition expense |
400 |
320 |
|
Amortization of intangibles |
5,840 |
5,865 |
Amortization of intangibles |
4,966 |
4,980 |
|
Non-GAAP adjusted income from operations (a) |
$ 15,403 |
$ 19,893 |
Non-GAAP adjusted income from operations (a) |
$ 13,288 |
$ 15,213 |
|
Non-GAAP adjusted operating margin (1) |
10.4% |
13.6% |
Non-GAAP adjusted operating margin (1) |
20.0% |
23.0% |
|
GAAP net sales |
148,156 |
146,714 |
GAAP net sales |
66,492 |
66,222 |
|
Three Months Ended |
||||||
$000s |
September 30, |
|||||
Autocam Precision Components |
2017 |
2016 |
||||
GAAP income from operations |
$ 6,799 |
$ 8,464 |
||||
Restructuring and integration expense |
345 |
286 |
||||
Acquisition and transition expense |
500 |
- |
||||
Amortization of intangibles |
874 |
885 |
||||
Share of net income from joint venture |
1,202 |
1,427 |
||||
Non-GAAP adjusted income from operations (a) |
$ 9,720 |
$ 11,062 |
||||
Non-GAAP adjusted operating margin (1) |
11.9% |
13.7% |
||||
GAAP net sales |
81,664 |
80,492 |
(1) Non-GAAP adjusted operating margin = Non-GAAP adjusted income from operations / GAAP net sales |
The Company discloses in this presentation the non-GAAP financial measures of adjusted income from operations and Non-GAAP adjusted operating margin. Each of these non-GAAP financial measures provide supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans reorganizational and impairment charges. Over the past four years, we have completed seven acquisitions, two of which were transformative for the Company, and sold two of our businesses. The costs we incurred in completing such acquisitions, including the amortization of intangibles and deferred financing costs, and these divestitures have been excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and which we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management's control and are subject to volatility. Other non-operating charges such as, the write-off of our interest rate swap, are excluded as the charges on not indicative of our ongoing operating cost. We believe the presentation of adjusted income from operations and adjusted operating margin provide useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP, and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.
(a) Non-GAAP Adjusted income from operations, represents GAAP income from operations, adjusted to exclude the effects of restructuring and integration expense, non-operational charges related to acquisition, divestiture and restructuring and integration costs, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income from operations, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income from operations.
View original content:http://www.prnewswire.com/news-releases/nn-inc-reports-third-quarter-2017-results-300548065.html
SOURCE
AT THE COMPANY, Robbie Atkinson, VP, Strategy & Investor Relations, (423) 434-8398; AT ABERNATHY MACGREGOR, Claire Walsh, (General info), (212) 371-5999