CHARLOTTE, N.C., March 18, 2025 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, announced today that Harold Bevis, President and Chief Executive Officer, and Chris Bohnert, Senior Vice President and Chief Financial Officer, will be presenting virtually at the Sidoti Small Cap Conference on Thursday March 20, 2025. The presentation will begin at 3:15 p.m. ET on Thursday, March 20, 2025. Investors in ...

Financial Data and Key Metrics Changes - For Q4 2024, net sales were $106.5 million, reflecting a 5% decline compared to Q4 2023, impacted by the sale of the Lubbock facility and strategic volume rationalization [39][42] - Adjusted operating income improved to $2.4 million, a $3.8 million increase from the prior year, while adjusted EBITDA grew to $12.1 million, marking a 21% increase year-over-year [40][41] - For the full year, net sales totaled $464.3 million, a 5% decline compared to 2023, but adjusted operating income rose 65% to $5.1 million, and adjusted EBITDA increased by 12% to $48.3 million [42][44] Business Line Data and Key Metrics Changes - Power Solutions segment reported Q4 net sales of $39.2 million, down from $43.4 million in the prior year, with adjusted EBITDA at $5.6 million [47][48] - Mobile Solutions segment saw Q4 revenue of $67.4 million, a slight decline of over 2%, but adjusted EBITDA increased to $10 million, reflecting improved cost structure and productivity [50][51] - For the full year, Mobile Solutions revenue decreased to $283.9 million, primarily due to strategic exits from unprofitable business, but adjusted EBITDA grew to $35.6 million, up more than 19% [52][53] Market Data and Key Metrics Changes - The company is experiencing strong demand in the electrical grid market, driven by infrastructure investments and the need for upgrades due to EV adoption [111] - The medical components segment aims to grow to $50 million organically, currently at $20 million, with a $25 million pipeline [75][76] Company Strategy and Development Direction - The company has initiated a five-year transformation plan focusing on sales growth, cost reduction, and balance sheet improvement, with a goal of achieving $65 million in new business wins annually [9][14] - The strategy includes optimizing operational footprint, reducing costs by 3% annually, and leveraging existing assets to enhance profitability [18][19] - The company is also focusing on reshoring initiatives, with 70 new business win programs launching in 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in global markets and the potential impact of tariffs but remains committed to the transformation plan [59][60] - The outlook for 2025 projects net sales between $450 million and $480 million, with adjusted EBITDA ranging from $53 million to $63 million [58] Other Important Information - The company has closed two underperforming plants and is in the process of closing another, with a focus on improving operational performance and customer relationships [29][32] - The company has successfully reduced past due backlogs, leading to improved customer ratings and new business wins [118][121] Q&A Session Summary Question: Update on the turnaround of the Group of Seven plant - Management highlighted improvements in capacity and customer relationships, with expectations to increase EBITDA margins to 10% [66][69] Question: Insights on medical and electrical components businesses - The medical segment is on track to reach $50 million, with a focus on securing new business wins [75][76] Question: Impact of Class 8 truck orders and tariffs - Management clarified that their business is not significantly tied to Class 8 trucks, focusing instead on work trucks [86][89] Question: Long-term gross margin goal - Management indicated that achieving a 20% gross margin will require onboarding accretive business and optimizing operational structures [94][99] Question: Revenue trends in Power Solutions - Management expects an up year in Power Solutions, driven by strong demand in the electrical grid market [110][112] Question: On-time delivery metrics - Management noted significant reductions in past due backlogs, which have improved customer ratings and facilitated new business wins [117][121] Question: Breakdown of JV products staying in China versus exports - Management confirmed that parts produced in their JV are increasingly being exported to markets outside the US [124][126] Question: New business wins and gross margin targets - New business wins are being written above the 20% gross margin target, with a focus on selective opportunities [132][136]

Fourth Quarter and Full-Year 2024 Earnings Call March 6, 2025 Forward Looking Statement & Disclosures 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 statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or s ...

Financial Performance - Net sales for the year ended December 31, 2024, were $464.29 million, a decrease of 5.1% from $489.27 million in 2023[212] - The cost of sales for 2024 was $394.81 million, down from $419.18 million in 2023, resulting in a gross loss of $27.55 million[212] - Selling, general, and administrative expenses increased to $49.48 million in 2024 from $47.44 million in 2023, reflecting a rise of 4.3%[212] - The net loss for 2024 was $38.27 million, compared to a net loss of $50.15 million in 2023, indicating an improvement of 23.7%[212] - Comprehensive loss for 2024 was $48.69 million, compared to $50.79 million in 2023, showing a reduction of 4.1%[212] - The company reported a share of net income from joint ventures of $9.57 million in 2024, an increase from $5.81 million in 2023[212] - The company reported a loss before provision for income taxes of $45.434 million for the year ended December 31, 2024[329] - Basic and diluted net loss per common share for 2024 was $(1.11), compared to $(1.35) in 2023[348] Assets and Liabilities - Total assets decreased from $510,885,000 in 2023 to $456,893,000 in 2024, a decline of approximately 10.6%[216] - Total liabilities decreased from $308,084,000 in 2023 to $288,874,000 in 2024, a reduction of about 6.2%[216] - Stockholders' equity decreased significantly from $125,002,000 in 2023 to $74,522,000 in 2024, a decline of approximately 40.4%[216] - The total debt as of December 31, 2024, was $148.630 million, a decrease from $153.279 million in 2023, reflecting a reduction of approximately 3.9%[296] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased from $21,903,000 in 2023 to $18,128,000 in 2024, a decline of approximately 17.7%[219] - Cash flows from operating activities provided $11,070,000 in 2024, down from $29,344,000 in 2023, a decrease of about 62.3%[219] - Capital expenditures totaled $18.314 million in 2024, a decrease from $20.496 million in 2023[263] Revenue Breakdown - Mobile Solutions segment reported sales of $283.944 million for the year ended December 31, 2024, a decrease of 6.4% from $303.335 million in 2023[261] - Power Solutions segment achieved sales of $180.545 million in 2024, up from $185.948 million in 2023, reflecting a slight decline of 2.4%[261] - Revenue from the automotive industry was $221.192 million in 2024, down from $247.541 million in 2023, a decrease of 10.7%[269] - The United States accounted for $265.020 million in revenue in 2024, down from $294.045 million in 2023, a decline of 9.9%[266] Interest and Financing - Interest expense for 2024 was $22.10 million, slightly up from $21.14 million in 2023[212] - The interest rate on outstanding borrowings under the ABL Facility was 5.94% as of December 31, 2024[192] - The Term Loan Facility bore interest at 12.332% as of December 31, 2024, including paid-in-kind interest[299] - The company recognized an interest benefit of $1.0 million from gains on the effective interest rate swap in 2024, down from $1.8 million in 2023[379] Restructuring and Divestitures - The company plans to close two manufacturing facilities, expecting to incur $13.6 million in charges, with anticipated annual benefits of approximately $5.4 million once fully implemented[384] - The company recognized $12.6 million in restructuring costs, with $5.0 million recognized in the "Cost of sales" line[386] - The company completed the sale of its Lubbock operations for $17.0 million, receiving net proceeds of $15.4 million after transaction costs[382] - The net gain recognized from the divestiture amounted to $7.154 million, with net assets disposed of valued at $8.281 million and direct costs to sell at $1.565 million[383] Taxation - Total current tax expense for 2024 was $3,331 million, a decrease from $3,447 million in 2023[330] - The effective tax rate for 2024 was (5.3)%, compared to (4.3)% in 2023 and (5.2)% in 2022, primarily due to foreign tax rate differences and valuation allowance changes[331] - As of December 31, 2024, the company had a $28.4 million U.S. federal net operating loss (NOL) carryover, with a full valuation allowance established against it[334] Stock and Compensation - In 2024, the company granted 660,000 shares of restricted stock with a weighted average grant-date fair value of $4.25 per share, compared to 3,782,000 shares in 2023 at $1.37 per share[354] - The total grant-date fair value of restricted stock that vested in 2024 was $2.0 million, down from $4.2 million in 2023[354] - As of December 31, 2024, the unrecognized compensation cost related to unvested awards was $7.4 million, to be recognized over a weighted-average period of 3.4 years[353] Impairments and Losses - The company recognized an impairment loss of $6.5 million for machinery and equipment in 2024, related to a plant closure scheduled for 2025[284] - The company incurred a $0.3 million loss on extinguishment related to the termination of the 2021 ABL Facility during the year ended December 31, 2024[305]

Business Wins - NN, Inc. announced new business wins for the year ended December 31, 2024[4]. Financial Reporting - The press release detailing the financial results was issued on January 14, 2025[4]. - The financial statements and exhibits related to the report are included as part of the filing[6]. - The report was signed by Christopher H. Bohnert, Senior Vice President and Chief Financial Officer[10]. Company Classification - The company is registered under the ticker symbol NNBR on The Nasdaq Stock Market LLC[2]. - The report indicates that NN, Inc. is classified as an emerging growth company[3].

Core Viewpoint - NN, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting the success of its transformation plan and outlining future growth strategies [1][2]. Financial Performance - Fourth quarter net sales were $106.5 million, a decrease of 5.3% compared to $112.5 million in Q4 2023, primarily due to the sale of Lubbock operations and lower volumes [4][5]. - Full-year net sales decreased by $25.0 million, or 5.1%, to $464.3 million, attributed to the sale of Lubbock operations and unfavorable foreign exchange effects [8]. - Adjusted EBITDA for Q4 2024 was $12.1 million, representing an increase of $2.1 million from Q4 2023 [4][11]. - The company reported a net loss of $21.0 million for Q4 2024, compared to a net loss of $20.5 million in Q4 2023 [7][10]. Transformation and Growth Strategy - The company successfully upgraded its leadership team and rationalized underperforming legacy businesses, securing $73 million in new business wins in 2024, surpassing the previous record of $63 million in 2023 [4][12]. - NN is on track to achieve its organic growth goal of reaching $600 million in sales, with over 70 new programs scheduled for production in 2025 [4][22]. - The company is focused on creating a stronger balance sheet and enhancing free cash flow, with a new business acquisition program in place [2][4]. Regional Performance - Sales growth in NN's China operations was notable, increasing by 15.6% in Q4 2024 and 20.6% for the full year compared to the prior year [4][24]. - The company continues to fund its growth in China through local cash flow generation [4]. Future Outlook - For 2025, NN expects revenues between $450 million and $480 million, with adjusted EBITDA projected between $53 million and $63 million [22]. - The company anticipates continued growth in its US electrical grid power business due to rising electrical demand from data centers and electric vehicles [4].

Company Announcement - NN, Inc. will release its fourth quarter and full-year 2024 financial results on March 5, 2025, after market close [1] - A conference call to discuss the results will be held on March 6, 2025, at 9:00 a.m. E.T. [1] - Participants are required to register five to ten minutes prior to the call [1] Webcast Information - The conference call will be webcast live through the NN, Inc. Investor Relations website [2] - A replay of the call will be available on the company's website until March 6, 2026 [2] Company Overview - NN, Inc. is a global diversified industrial company specializing in high-precision components and assemblies [3] - The company combines advanced engineering and production capabilities with materials science expertise [3] - NN, Inc. is headquartered in Charlotte, North Carolina, with facilities across North America, Europe, South America, and Asia [3]

Company Overview - NN (NASDAQ: NNBR) is described as a large, independent, old-fashioned, mega machine shop, which is rare in the US today [1] - The company operates large factory floors with rows of large machinery, indicating a significant scale of operations [1] Analyst's Perspective - The analyst has a beneficial long position in NNBR through stock ownership, options, or other derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with the mentioned companies [2] Portfolio Strategy - The analyst's portfolio consists of 50-75% deep value stocks, primarily small caps, indicating a focus on undervalued opportunities [1] - The analyst typically writes about stocks that are considered their best ideas and in which they hold a position [1] Performance and Background - The analyst's stock recommendations have averaged over 31% returns over a one-year period, showcasing a strong track record [1] - The analyst has a background as a Credit Manager for a mid-sized publicly traded bank and retired early in 2013 due to success in the stock market [1] - Despite no prior industry experience, the analyst passed the CFA Level 1 exam, demonstrating a commitment to financial expertise [1]

Core Viewpoint - NN, Inc. has announced a revised schedule for its executive management's virtual presentation at the Sidoti Micro Cap conference, now set for January 22, 2025, at 2:30 p.m. ET [1][2]. Company Overview - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies for various markets worldwide [4]. - The company is headquartered in Charlotte, North Carolina, and operates facilities across North America, Europe, South America, and Asia [4]. Investor Engagement - In addition to the webcast presentation, NN, Inc.'s executive management will conduct one-on-one and group meetings with registered investors and analysts during the conference [3]. - Investors interested in the webcast can register to access the live event and will receive a link upon registration [2].

Core Insights - NN, Inc. released its 2023 Sustainability Report, highlighting its commitment to sustainable business practices and transparency [1] - The report aligns with major sustainability frameworks such as SASB and TCFD, and incorporates UN Sustainable Development Goals [2] Company Overview - NN, Inc. is a global diversified industrial company specializing in high-precision components and assemblies, with a strong focus on engineering and materials science [3] - The company is headquartered in Charlotte, North Carolina, and operates facilities across North America, Europe, South America, and Asia [3]