NN(US:NNBR)2023-05-05 20:04Financial Performance - Net sales decreased by 0.8% year-over-year, from $128.1 million to $127.1 million[31] - Non-GAAP adjusted EBITDA decreased by $5.3 million, from $13.4 million to $8.1 million[31] - Non-GAAP adjusted EBITDA margin decreased by 406 bps, from 10.5% to 6.4%[31] - Free cash flow showed a use of $3.7 million, but was positive $2.7 million over the past 6 months[8] Segment Performance - Power Solutions sales decreased by 5.7% year-over-year due to lower volume[4, 59] - Mobile Solutions sales increased by 2.6% year-over-year due to increased pricing[86] Strategic Initiatives - Implemented a global plan to reduce indirect labor by 10% in Q2, expecting over $4 million benefit for the full year 2023[7] - Facility closures are on track, with an estimated adjusted EBITDA improvement of ~$11 million over 2022[5, 178] - New business wins increased by 75% from Q1 2022, with 76% in strategic segments[162, 180] Liquidity and Debt - Net debt to adjusted EBITDA leverage ratio was 3.82x, with liquidity of $43 million as of March 31, 2023[7] - The company is targeting a $10 million preferred equity raise to improve domestic liquidity[43] Market Outlook - Global Light Duty Vehicle Production is forecasted to increase by ~5.0% YoY in 2023[21]