NN(NNBR)2025-03-06 01:39Financial 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]