Delaware
|
62-1096725
|
(State or
other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification Number)
|
·
|
Part
I—Item 1—Financial Statements
|
·
|
Part
I—Item 2—Management's Discussion and Analysis of Financial Condition and
Results of Operations
|
·
|
Part
1—Item 4—Controls and Procedures
|
Part I. | Financial Information |
Page No.
|
Item 1. | Financial Statements: | |
Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2007 and 2006 unaudited)............... |
2
|
|
Condensed Consolidated Balance Sheets at June 30, 2007 and December 31, 2006 unaudited)......................................................................................... |
3
|
|
Consolidated
Statements of Changes in Stockholders’ Equity for the six
months ended June 30,
2007(unaudited)......................................................
|
4 | |
Consolidated Statements of Cash Flows for the six months ended June 30, 2007 and 2006 unaudited)............................................................................ |
5
|
|
Notes to Consolidated Financial Statements unaudited) ......................................................................................................................................................... |
6
|
|
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................................................................................ |
19
|
Item 3. | Quantitative and Qualitative Disclosures about Market Risk ................................................................................................................................................... |
26
|
Item 4. | Controls and Procedures ............................................................................................................................................................................................................... |
27
|
Part II. | Other Information | |
Item 1. | Legal Proceedings ........................................................................................................................................................................................................................... |
27
|
Item 1A. | Risk Factors ...................................................................................................................................................................................................................................... |
28
|
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds ................................................................................................................................................ |
28
|
Item 3. | Defaults Upon Senior Securities................................................................................................................................................................................................... |
28
|
Item 4. | Submission of Matters to a Vote of Security Holders ............................................................................................................................................................. |
28
|
Item 5. | Other Information .......................................................................................................................................................................................................................... |
28
|
Item 6. | Exhibits ............................................................................................................................................................................................................................................. |
28
|
Signatures | ............................................................................................................................................................................................................................................................. |
29
|
Item
1.
|
Financial
Statements
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|
As
restated
|
As
restated
|
(Thousands
of Dollars, Except Per Share Data)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Net
sales
|
$ | 107,302 | $ | 83,554 | $ | 215,246 | $ | 169,571 | ||||||||
Cost
of products sold (exclusive of depreciation
and
amortization shown separately below)
|
85,929 | 64,905 | 171,010 | 130,904 | ||||||||||||
Selling,
general and administrative
|
9,558 | 7,063 | 18,983 | 14,744 | ||||||||||||
Depreciation
and amortization
|
5,658 | 4,425 | 11,180 | 8,587 | ||||||||||||
Restructuring
and impairment charges
|
13,336 | -- | 13,336 | -- | ||||||||||||
(Gain)
loss on disposal of assets
|
(6 | ) | 4 | (11 | ) | (726 | ) | |||||||||
Income
(loss) from operations
|
(7,173 | ) | 7,157 | 748 | 16,062 | |||||||||||
Interest
expense
|
1,630 | 1,021 | 3,325 | 2,007 | ||||||||||||
Other
(income) expense, net
|
(22 | ) | 449 | 3 | 240 | |||||||||||
Income
(loss) before provision for income taxes
|
(8,781 | ) | 5,687 | (2,580 | ) | 13,815 | ||||||||||
Provision
for income taxes
|
1,584 | 2,234 | 4,030 | 5,100 | ||||||||||||
Net
income (loss)
|
(10,365 | ) | 3,453 | (6,610 | ) | 8,715 | ||||||||||
Other
comprehensive income:
|
||||||||||||||||
Foreign
currency translation gain
|
1,351 | 5,414 | 3,427 | 7,644 | ||||||||||||
Comprehensive
income
|
$ | (9,014 | ) | $ | 8,867 | $ | (3,183 | ) | $ | 16,359 | ||||||
Basic
income (loss) per common share:
|
$ | (0.62 | ) | $ | 0.20 | $ | (0.39 | ) | $ | 0.51 | ||||||
Weighted
average shares outstanding
|
16,815 | 17,157 | 16,814 | 17,153 | ||||||||||||
Diluted
income (loss) per common share:
|
$ | (0.61 | ) | $ | 0.20 | $ | (0.39 | ) | $ | 0.50 | ||||||
Weighted
average shares outstanding
|
17,028 | 17,369 | 17,031 | 17,365 | ||||||||||||
Cash
dividends per common share
|
$ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.16 | ||||||||
June
30,
|
December
31,
|
|||||||
(Thousands
of Dollars)
|
2007
|
2006
|
||||||
As
restated
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 12,820 | $ | 11,681 | ||||
Accounts
receivable, net of allowances of $1,315 and $1,278,
respectively
|
74,267 | 63,442 | ||||||
Inventories,
net
|
45,273 | 43,538 | ||||||
Other
current assets
|
8,448 | 7,203 | ||||||
Total
current assets
|
140,808 | 125,864 | ||||||
Property,
plant and equipment, net
|
152,369 | 156,447 | ||||||
Goodwill,
net
|
36,523 | 46,147 | ||||||
Intangible
assets, net
|
9,737 | 10,131 | ||||||
Other
assets
|
4,404 | 4,112 | ||||||
Total
assets
|
$ | 343,841 | $ | 342,701 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 49,782 | $ | 52,576 | ||||
Accrued
salaries, wages and benefits
|
14,886 | 13,519 | ||||||
Income
taxes
|
830 | 94 | ||||||
Current
maturities of long-term debt
|
9,054 | 851 | ||||||
Other
current liabilities
|
8,168 | 7,829 | ||||||
Total
current liabilities
|
82,720 | 74,869 | ||||||
Non-current
deferred tax liability
|
16,926 | 16,334 | ||||||
Long-term
debt
|
97,493 | 80,711 | ||||||
Related
party debt
|
2,667 | 21,305 | ||||||
Accrued
pension and other
|
16,685 | 16,313 | ||||||
Total
liabilities
|
216,491 | 209,532 | ||||||
Total
stockholders’ equity
|
127,350 | 133,169 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 343,841 | $ | 342,701 |
(Thousands
of Dollars and Shares)
|
Common
Stock
|
Retained
Earnings
As
restated
|
Accumulated
Other
Comprehen-
sive
Income
|
Total
As
restated
|
||||
Number
Of
Shares
|
Par
Value
|
Additional
Paid
in
Capital
|
||||||
Balance,
January 1, 2007
|
16,842 | $ | 169 | $ | 53,473 | $ | 64,178 | $ | 15,349 | $ | 133,169 | |||||||||||||
Shares
issued
|
24 | -- | 292 | -- | -- | 292 | ||||||||||||||||||
Net
income, as restated
|
-- | -- | -- | (6,610 | ) | -- | (6,610 | ) | ||||||||||||||||
Amortization
of restricted stock
Award
|
-- | -- | 53 | -- | -- | 53 | ||||||||||||||||||
Forfeiture
of restricted stock
|
(3 | ) | -- | -- | -- | -- | -- | |||||||||||||||||
Stock
option expense
|
-- | -- | 315 | -- | -- | 315 | ||||||||||||||||||
Dividends
declared
|
-- | -- | -- | (2,696 | ) | -- | (2,696 | ) | ||||||||||||||||
Cumulative
effect of adoption of
FIN
48
|
-- | -- | -- | (600 | ) | -- | (600 | ) | ||||||||||||||||
Cumulative
translation gain
|
-- | -- | -- | -- | 3,427 | 3,427 | ||||||||||||||||||
Balance,
June 30, 2007
|
16,863 | $ | 169 | $ | 54,133 | $ | 54,272 | $ | 18,776 | $ | 127,350 |
Six
Months Ended
|
|||
June
30,
|
|||
(Thousands
of Dollars)
|
2007
|
2006
|
|
As
restated
|
|||
Operating
Activities:
|
|||
Net
income (loss)
|
$ (6,610)
|
$ 8,715
|
|
Adjustments
to reconcile net income (loss) to net cash provided by
operating
activities:
|
|||
Depreciation
and amortization
|
11,180
|
8,587
|
|
Amortization
of debt issue costs
|
100
|
261
|
|
Gain
on disposal of property, plant and equipment
|
--
|
(726)
|
|
Compensation
expense from issuance of restricted stock and incentive stock
options
|
368
|
206
|
|
Restructuring
and impairment charges
|
13,336
|
--
|
|
Deferred
income tax
|
84
|
--
|
|
Changes
in operating assets and liabilities:
|
|||
Accounts
receivable
|
(9,931)
|
(8,627)
|
|
Inventories
|
(1,221)
|
3,031
|
|
Accounts
payable
|
(3,585)
|
(1,692)
|
|
Other
assets and liabilities
|
302
|
212
|
|
Net
cash provided by operating activities
|
4,023
|
9,967
|
|
Investing
Activities:
|
|||
Acquisition
of property, plant and equipment
|
(6,824)
|
(6,413)
|
|
Proceeds
from disposals of property, plant and equipment
|
--
|
2,966
|
|
Acquisition
of intangibles and goodwill
|
(162)
|
(529)
|
|
Net
cash used by investing activities
|
(6,986)
|
(3,976)
|
|
Financing
Activities:
|
|||
Increase
in cash from book overdraft
|
84
|
657
|
|
Repayment
of long-term debt
|
(617)
|
(4,668)
|
|
Proceeds
from short-term debt
|
8,203
|
1,017
|
|
Principal
payment on capital lease
|
(18)
|
(13)
|
|
Repurchase
of common stock
|
--
|
(683)
|
|
Proceeds
from issuance of stock
|
292
|
696
|
|
Proceeds
from long term debt
|
17,400
|
--
|
|
Debt
issuance cost paid
|
(161)
|
--
|
|
Dividends
paid
|
(2,696)
|
(2,753)
|
|
Repayment
of related party debt
|
(18,638)
|
--
|
|
Net
cash provided (used) by financing activities
|
3,849
|
(5,747)
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
253
|
1,041
|
|
Net
Change in Cash and Cash Equivalents
|
1,139
|
1,285
|
|
Cash
and Cash Equivalents at Beginning of Period
|
11,681
|
10,856
|
|
Cash
and Cash Equivalents at End of Period
|
$ 12,820
|
$ 12,141
|
|
Three
Months Ended
June
30 2007,
|
Six
Months Ended
June
30 2007,
|
|||||||||||||||
(Thousands
of Dollars, Except Per Share Data)
|
As
Originally
Reported
|
As
restated
|
As
Originally
Reported
|
As
restated
|
||||||||||||
Restructuring
and impairment charges
|
$ | 15,269 | $ | 13,336 | $ | 15,269 | $ | 13,336 | ||||||||
Income
(loss) from operations
|
(9,106 | ) | (7,173 | ) | (1,185 | ) | 748 | |||||||||
Loss
before provision for income taxes
|
(10,714 | ) | (8,781 | ) | (4,513 | ) | (2,580 | ) | ||||||||
Provision
for income taxes
|
1,104 | 1,584 | 3,550 | 4,030 | ||||||||||||
Net loss
|
(11,818 | ) | (10,365 | ) | (8,063 | ) | (6,610 | ) | ||||||||
Comprehensive
income
|
(10,467 | ) | (9,014 | ) | (4,636 | ) | (3,183 | ) | ||||||||
Basic
and Diluted Earnings Per Share
|
$ | (0.70 | ) | $ | (0.62 | ) | $ | (0.48 | ) | $ | (0.39 | ) |
June
30, 2007
|
June
30, 2007
|
|||||||
(Thousands of
Dollars)
|
As
Originally Reported
|
As
restated
|
||||||
Intangible
assets, net
|
$ | 7,804 | $ | 9,737 | ||||
Other
assets
|
4,884 | 4,404 | ||||||
Total
assets
|
342,388 | 343,841 | ||||||
Total
stockholders’ equity
|
125,897 | 127,350 | ||||||
Total
liabilities and stockholders’ equity
|
342,388 | 343,841 |
June
30 2007,
|
||||||||
(Thousands
of Dollars)
|
As
Originally Reported
|
As
restated
|
||||||
Operating
Activities:
|
||||||||
Net loss
|
$ | (8,063 | ) | $ | (6,610 | ) | ||
Adjustments
to reconcile net loss to net cash provided by operating activities:
|
||||||||
Restructuring
and impairment charges
|
15,269 | 13,336 | ||||||
Deferred
income tax
|
(396 | ) | 84 |
(In
Thousands of Dollars)
|
Reserve
Balance
at
01/01/07
|
Charges
|
Paid
in
2007
|
Currency
Impacts
|
Reserve
Balance
at
06/30/07
|
||||
Severance
and other employee costs
|
$ 309
|
$ --
|
$
(15)
|
$ 8
|
$ 302
|
||||
$ 309
|
$ --
|
$
(15)
|
$ 8
|
$ 302
|
June
30,
|
December
31,
|
||
2007
|
2006
|
||
Raw
materials
|
$ 12,848
|
$ 11,828
|
|
Work
in process
|
8,890
|
10,427
|
|
Finished
goods
|
25,422
|
23,596
|
|
Less
inventory reserves
|
(1,887)
|
(2,313)
|
|
$ 45,273
|
$ 43,538
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
(Thousands
of Dollars, Except Share and Per Share Data)
|
2007
As
restated
|
2006
|
2007
As
restated
|
2006
|
|||
Net
income
|
$ (10,365)
|
$ 3,453
|
$ (6,610)
|
$ 8,715
|
|||
Weighted
average basic shares
|
16,815,249
|
17,156,721
|
16,813,871
|
17,152,713
|
|||
Effect
of dilutive stock options
|
212,928
|
211,863
|
217,667
|
212,291
|
|||
Weighted
average dilutive shares outstanding
|
17,028,177
|
17,368,584
|
17,031,538
|
17,365,004
|
|||
Basic
net income per share
|
$ (0.62)
|
$ 0.20
|
$ (0.39)
|
$ 0.51
|
|||
Diluted
net income per share
|
$ (0.61)
|
$ 0.20
|
$ (0.39)
|
$ 0.50
|
Three Months Ended June
30,
|
|||||||||
2007
|
2006
|
||||||||
(In
Thousands of Dollars)
|
Metal
Bearing Com-
ponents
Segment
As
restated
|
Precision
Metal Com-
ponents
Segment
|
Plastic
and Rubber Com-ponents
Segment
|
All
Other
|
Metal
Bearing Com-
ponents
Segment
|
Precision
Metal Com-
ponents
Segment
|
Plastic
and Rubber Com-ponents Segment
|
All
Other
|
|
Revenues
from external customers
|
$ 76,275
|
$
17,108
|
$
13,919
|
$ --
|
$ 69,965
|
$ --
|
$
13,589
|
$ --
|
|
Segment
profit (loss) excluding restructuring and
impairment changes
|
4,826
|
(507)
|
630
|
(1,894)
|
4,120
|
--
|
777
|
(1,444)
|
|
Restructuring
and impairment charges
|
(13,336)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|
Deferred
income tax impacts
|
(84)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|
Net
income (loss)
|
$
(8,594)
|
$ (507)
|
$ 630
|
$
(1,894)
|
$ 4,120
|
$ --
|
$ 777
|
$
(1,444)
|
|
Assets
|
$ 231,614
|
$53,064
|
$52,182
|
$ 6,981
|
$229,456
|
$ --
|
$
52,981
|
$ 5,763
|
Six
Months Ended June 30,
|
|||||||||
2007
|
2006
|
||||||||
(In
Thousands of Dollars)
|
Metal
Bearing Com-
ponents
Segment
As
restated
|
Precision
Metal Com-
ponents
Segment
|
Plastic
and Rubber Com-
ponents
Segment
|
All
Other
|
Metal
Bearing Com-
ponents
Segment
|
Precision
Metal Com-
ponents
Segment
|
Plastic
and Rubber Com-
ponents
Segment
|
All
Other
|
|
Revenues
from external customers
|
$
153,559
|
$
35,136
|
$
26,551
|
$ --
|
$
141,305
|
$ --
|
$ 28,266
|
$ --
|
|
Segment
profit (loss) excluding restructuring and impairment
changes
|
9,708
|
(460)
|
1,119
|
(3,557)
|
9,939
|
--
|
1,705
|
(2,929)
|
|
Restructuring
and impairment charges
|
(13,336)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|
Deferred
income tax impacts
|
(84)
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|
Net
income (loss)
|
$
(3,712)
|
$ (460)
|
$ 1,119
|
$
(3,557)
|
$ 9,939
|
$ --
|
$ 1,705
|
$
(2,929)
|
|
Assets
|
$231,614
|
$53,064
|
$52,182
|
$ 6,981
|
$229,456
|
$ --
|
$
52,981
|
$ 5,763
|
Six
Months Ended June 30, 2006
|
|
Net
sales
|
$ 211,547
|
Net
income
|
$ 9,856
|
Basic
net income per share
|
$ 0.57
|
Diluted
net income per share
|
$ 0.57
|
Three Months Ended
June 30,
|
Six
Months Ended
June 30,
|
|||||||||||||||
(In
Thousands of Dollars)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Service
cost
|
$ | -- | $ | 26 | -- | $ | 52 | |||||||||
Interest
cost
|
60 | 66 | 118 | 128 | ||||||||||||
Net
loss
|
2 | 13 | 3 | 24 | ||||||||||||
Net
periodic pension cost
|
$ | 62 | $ | 105 | $ | 121 | $ | 204 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
(In
Thousands of Dollars)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Beginning
balance
|
$ | (7,975 | ) | $ | (6,950 | ) | $ | (8,020 | ) | $ | (6,644 | ) | ||||
Amounts
accrued
|
(343 | ) | (269 | ) | (586 | ) | (525 | ) | ||||||||
Payments
|
-- | 208 | 381 | 327 | ||||||||||||
Currency
impacts
|
(113 | ) | (358 | ) | (206 | ) | (527 | ) | ||||||||
Ending
balance
|
$ | (8,431 | ) | $ | (7,369 | ) | $ | (8,431 | ) | $ | (7,369 | ) |
June
30,
2007
|
December
31,
2006
|
|
Borrowings
under our $135,000 revolving credit facility bearing interest at a
floating rate equal to LIBOR (5.36% at June 30, 2007) plus an applicable
margin of 0.60 to 0.925, expiring September 20, 2011.
|
$ 65,069
|
$ 39,466
|
Borrowings
under our $40,000 aggregate principal amount of senior notes bearing
interest at a fixed rate of 4.89% maturing on April 26,
2014. Annual principal payments of $5,714 begin on April 26,
2008 and extend through the date of maturity.
|
40,000
|
40,000
|
Long
term note payable with customer related to acquiring equipment from
customer as part of long term supply agreement. Note carries a
0% rate of interest. Interest on this note has been imputed at
a rate of 5.41%. Note is paid down by applying a fixed amount
per piece purchased by customer.
|
1,478
|
2,096
|
Total
debt
|
106,547
|
81,562
|
Less
current maturities of long-term debt
|
9,054
|
851
|
Long-term
debt, excluding current maturities of long-term debt and related party
debt
|
$ 97,493
|
$ 80,711
|
(In
Thousands of Dollars)
|
Precision
Metal
Components
Segment
|
Plastic
and
Rubber
Components
Segment
|
Metal
Bearing
Components
Segment
|
Total
|
||
Balance
as of January 1, 2006
|
$ --
|
$ 25,755
|
$ 15,893
|
$ 41,648
|
||
Goodwill
acquired
|
2,352
|
--
|
--
|
2,352
|
||
Currency
impacts
|
--
|
--
|
2,147
|
2,147
|
||
Balance
as of December 31, 2006
|
$ 2,352
|
$ 25,755
|
$ 18,040
|
$ 46,147
|
|
|
Balance as of January 1, 2007 | $2,352 | $25,755 | $18,040 | $46,147 | ||
Adjustment
to the purchase price allocation
|
(134) | -- | -- | (134) | ||
Goodwill impaired | -- | -- | (10,016) | (10,016) | ||
Currency impacts | -- | -- | 526 | 526 | ||
Balance as of June 30, 2007 | $ 2,218 | $ 25,755 | $ 8,550 | $ 36,523 |
(In
Thousands of Dollars)
|
Precision
Metal
Components
Segment
|
Metal
Bearing
Components
Segment
As
restated
|
Total
As
restated
|
Balance
as of January 1, 2006
|
$ --
|
$ 474
|
$ 474
|
Acquisition
of Intangibles
|
7,180
|
1,855
|
9,035
|
Amortization
|
(39)
|
(402)
|
(441)
|
Currency
impacts
|
--
|
163
|
163
|
Balance
as of December 31, 2006
|
$ 7,141
|
$ 2,090
|
$ 9,231
|
Balance
as of January 1, 2007
|
$ 7,141
|
$ 2,090
|
$ 9,231
|
Acquisition
of Intangibles
|
--
|
66
|
66
|
Amortization
|
(237)
|
(267)
|
(504)
|
Currency
impacts
|
--
|
44
|
44
|
Balance
as of June 30, 2007
|
$ 6,904
|
$ 1,933
|
$ 8,837
|
Options
|
Shares
(000’s)
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value
($000)
|
||||
Outstanding
at January 1, 2007
|
1,452
|
$ 9.81
|
||||||
Granted
|
192
|
$
12.05
|
||||||
Exercised
|
(26)
|
$
10.95
|
||||||
Forfeited
or expired
|
(41)
|
$
12.54
|
||||||
Outstanding
at June 30, 2007
|
1,577
|
$ 9.99
|
6.07
|
$ 2,850(1)
|
||||
Exercisable
at June 30, 2007
|
1,216
|
$ 9.46
|
5.05
|
$
2,850 (1)
|
Shares
(000’s)
|
Weighted-
Average
Grant-
Date
Fair Value
|
|||||
Non-vested
at January 1, 2007
|
33
|
$
12.70
|
||||
Granted
|
--
|
--
|
||||
Vested
|
--
|
--
|
||||
Forfeited
|
(3)
|
$12.70
|
||||
Non-vested
at June 30, 2007
|
30
|
$
12.70
|
(In
Thousands of Dollars)
|
Consolidated
NN, Inc.
|
||
2007
As
restated
|
2006
|
Change
As
restated
|
|
Net
sales
|
$ 107,302
|
$
83,554
|
$ 23,748
|
Cost
of products sold (exclusive of depreciation
and
amortization shown separately below)
|
85,929
|
64,905
|
21,024
|
Selling,
general, and administrative
|
9,558
|
7,063
|
2,495
|
Depreciation
and amortization
|
5,658
|
4,425
|
1,233
|
Restructuring
and asset impairment charges
|
13,336
|
--
|
13,336
|
Interest
expense, net
|
1,630
|
1,021
|
609
|
(Gain)
loss on disposal of assets
|
(6)
|
4
|
(10)
|
Other
(income) expense, net
|
(22)
|
449
|
(471)
|
Income
(loss) before provision for income taxes
|
(8,781)
|
5,687
|
(14,468)
|
Provision
for income taxes
|
1,584
|
2,234
|
(650)
|
Net
income (loss)
|
$ (10,365)
|
$ 3,453
|
$ (13,818)
|
(In
Thousands of Dollars)
|
Three
Months Ended June 30,
|
|||
2007
As
restated
|
2006
|
Change
As
restated
|
||
Net
sales
|
$ 76,275
|
$ 69,965
|
$ 6,310
|
|
Segment
profit, excluding restructuring and impairment charges
|
4,826
|
4,120
|
706
|
|
Restructuring
and impairment charges
|
(13,336)
|
--
|
(13,336)
|
|
Deferred
income tax impacts
|
(84)
|
--
|
(84)
|
|
Net
income (loss)
|
$
(8,594)
|
$ 4,120
|
$
(12,714)
|
(In
Thousands of Dollars)
|
Three
Months Ended June 30,
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Net
sales
|
$ | 17,108 | $ | -- | $ | 17,108 | ||||||
Net
loss
|
$ | (507 | ) | $ | -- | $ | (507 | ) |
(In
Thousands of Dollars)
|
Three
Months Ended June 30,
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Net
sales
|
$ | 13,919 | $ | 13,589 | $ | 330 | ||||||
Net
income
|
$ | 630 | $ | 777 | $ | (147 | ) |
(In
Thousands of Dollars)
|
Consolidated
NN, Inc.
|
|||||||||||
2007
As
restated
|
2006
|
Change
As
restated
|
||||||||||
Net
sales
|
$ | 215,246 | $ | 169,571 | $ | 45,675 | ||||||
Cost
of products sold (exclusive of depreciation
and
amortization shown separately below)
|
171,010 | 130,904 | 40,106 | |||||||||
Selling,
general, and administrative
|
18,983 | 14,744 | 4,239 | |||||||||
Depreciation
and amortization
|
11,180 | 8,587 | 2,593 | |||||||||
Restructuring
and asset impairment charges
|
13,336 | -- | 13,336 | |||||||||
Interest
expense, net
|
3,325 | 2,007 | 1,318 | |||||||||
Gain
on disposal of assets
|
(11 | ) | (726 | ) | 715 | |||||||
Other
expense, net
|
3 | 240 | (237 | ) | ||||||||
Income
(loss) before provision for income taxes
|
(2,580 | ) | 13,815 | (16,395 | ) | |||||||
Provision
for income taxes
|
4,030 | 5,100 | (1,070 | ) | ||||||||
Net
income (loss)
|
$ | (6,610 | ) | $ | 8,715 | $ | (15,325 | ) |
(In
Thousands of Dollars)
|
Six
Months Ended June 30,
|
|||||||||||
2007
As
restated
|
2006
|
Change
As
restated
|
||||||||||
Net
sales
|
$ | 153,559 | $ | 141,305 | $ | 12,254 | ||||||
Segment
profit, excluding restructuring and asset impairment
changes
|
9,708 | 9,939 | (231 | ) | ||||||||
Restructuring
and impairment charges
|
(13,336 | ) | -- | (13,336 | ) | |||||||
Deferred
income tax impacts
|
(84 | ) | -- | (84 | ) | |||||||
Net
income (loss)
|
$ | (3,712 | ) | $ | 9,939 | $ | (13,651 | ) |
(In
Thousands of Dollars)
|
Six
Months Ended June 30,
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Net
sales
|
$ | 35,136 | $ | -- | $ | 35,136 | ||||||
Net
loss
|
$ | (460 | ) | $ | -- | $ | (460 | ) |
(In
Thousands of Dollars)
|
Six
Months Ended June 30,
|
|||||||||||
2007
|
2006
|
Change
|
||||||||||
Net
sales
|
$ | 26,551 | $ | 28,266 | $ | (1,715 | ) | |||||
Net
income
|
$ | 1,119 | $ | 1,705 | $ | (586 | ) |
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
a)
|
None
|
b)
|
None
|
c)
|
None
|
NN, Inc.
|
|||
(Registrant) | |||
Date:
February 27, 2008
|
By:
|
/s/ Roderick R. Baty | |
Roderick R. Baty | |||
Chairman,
President and
Chief Executive Officer
(Duly Authorized Officer)
|
|||
Date:
February 27, 2008
|
By:
|
/s/ James H. Dorton | |
James H. Dorton | |||
Chief
Financial Officer
(Principal Financial
Officer)
(Duly
Authorized Officer)
|
|||
Date:
February 27, 2008
|
By:
|
/s/ William C. Kelly, Jr. | |
William C. Kelly, Jr. | |||
Vice
President and
Chief
Administrative Officer
(Duly
Authorized Officer)
|
|||
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation;
and
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b)
|
Any fraud, whether or not
material, that involves management or other employees who have a
significant role in the registrant’s internal control over financial
reporting.
|