Nn, Inc. (NASDAQ:NNBR)

Third Quarter 2015 Results

• Net sales for the third quarter of 2015 increased $29.2 million, or 23% to $154.8 million, compared to $125.6 million for the third quarter of 2014. Acquisitions added $41.6 million in revenue. Negative currency impacts reduced reported net sales by $7.8 million versus the third quarter of last year.
•  Adjusted net income, which excludes the after-tax impact of foreign exchange on inter-company loans and after-tax acquisition and integration expenses, increased to $8.3 million, or $0.31 per diluted share, compared to $6.3 million, or $0.34 per diluted share for the same period in 2014.

Richard Holder, President and Chief Executive Officer, commented, "The third quarter presented a series of challenges in the broader economy that impacted our sales during the quarter. Despite these headwinds we began to see the impact of the NN Operating System as we were able to appropriately manage our business in a rapidly changing environment and deliver strong operating performance."

Guidance

Holder continued, "As previously committed, beginning with the fourth quarter we will initiate a more comprehensive set of financial guidance designed to help our shareholders have the appropriate information to accurately evaluate our performance. This will include sales, adjusted EBITDA, adjusted operating margin, and adjusted earnings per share. With the completion of the PEP acquisition we will also begin excluding non-cash amortization charges from our adjusted earnings per share. We believe removing these charges provides the shareholder with the best evaluation of the Company's performance."

JOHNSON CITY, Tenn., Oct. 29, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it is expanding its North American manufacturing footprint by opening a new precision ball plant in Ciudad Juarez in the Mexican state of Chihuahua in response to increasing demand and growth in auto manufacturing in Mexico.  The plant, which has been under construction since June of this year, is expected to commence production in November, 2015.  The plant will be co-located with NN's existing precision metal components plant in Juarez and will share management, supply chain, and administrative services.

Rich Holder, NN's President and CEO commented, "I am pleased to announce NN's expansion in Mexico, which is a growing market for automotive and industrial manufacturing.   This new plant will serve existing and new customers and represents incremental demand created with the expansion of the Mexican automotive market.  The rapid construction of this new plant was made possible by NN's existing presence in Mexico and showcases our ability to leverage our assets across multiple platforms.    The plant will implement the next generation NN operating system complete with advanced 'in house developed' manufacturing technology from the NN R&D centers in the U.S. and Italy."

The plant will operate under the IMMEX Program (formerly the Maquiladora Program).

The plant is expected to have capacity to produce nearly 200 million tight-tolerance, high precision steel balls within 2016, with additional room to expand in the future.  Production will ramp through 2016 as production validation continues.

JOHNSON CITY, Tenn., Oct. 20, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that the Company has successfully completed its acquisition of Precision Engineered Products Holdings, Inc. (PEP), a global manufacturer of highly engineered precision customized solutions serving the medical, electrical, transportation and aerospace end markets.

Richard Holder, President and CEO commented, "The acquisition of PEP, the largest in NN's 35 year history, is a transformational milestone that expands our market segment reach, broadens our portfolio of products, services, and solutions, as well as expands margins and strengthens our global geographic footprint."

"PEP adds proven capabilities in medical, electrical, transportation and aerospace to NN's strengths in light auto, CAFE technologies, general industrial, commercial transportation and fluid power," Holder said. "These complementary technologies further accelerate NN's growth as a diversified industrial focused on delivering a complete portfolio of world class products and solutions to our customers and being a consistent earner through the economic cycle."

NN, Inc., a diversified industrial company, manufactures and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis.  Headquartered in Johnson City, Tennessee, NN has 43 manufacturing plants in North America, Western Europe, Eastern Europe, South America and China.

JOHNSON CITY, Tenn., Aug. 17, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it has entered into a definitive agreement to acquire Precision Engineered Products Holdings, Inc. (P.E.P.) for $615 million in cash. The transaction is expected to be immediately accretive to earnings. The Company anticipates that the transaction will close by the end of October, 2015, subject to customary closing conditions and regulatory approval. NN was advised on the transaction by KeyBanc Capital Markets, Inc.

P.E.P. is a global manufacturer of highly engineered precision customized solutions serving the medical, electrical, transportation and aerospace end markets. P.E.P. has built a highly respected brand on which customers rely to solve their most difficult problems across diversified end markets. P.E.P.'s net sales for the last twelve months ending June 30, 2015, including acquisitions, were$245.3 million, with approximately $180.0 million coming from the medical and electrical businesses.

Richard Holder, President and CEO commented, "The addition of the P.E.P. business into our portfolio is a transformative step in creating a diversified industrial company that serves a variety of end markets and delivers consistent results through the economic cycle. P.E.P. strengthens our technical capabilities and provides us with additional dynamic platforms to support outgrowth of our end markets. P.E.P.'s focus on the medical, electrical, and aerospace end markets and delivery of world class precision and technology to their customers aligns perfectly with our strategic plan. Utilizing the NN Operating System, P.E.P. will have the tools and resources to continue to develop new products and drive operational efficiency in the years to come. We look forward to welcoming the P.E.P. team into the NN family."

NN expects to finance the transaction primarily with available cash and the issuance of debt from new fully committed credit facilities.

JOHNSON CITY, Tenn., June 18, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced it is revising its 2015 revenue guidance from the previously provided range of $670 - $690 million dollars as a result of continued weakness in the Brazilian economy.  The company now expects 2015 revenue to be between $660 - $670 million dollars.

During 2014, NN and its acquired companies sold approximately $47 million into Brazil. The company now expects 2015 revenue in Brazil to be off the planned $52 million by approximately 38% - 40% based on new estimates showing Brazil's GDP will contract 2% in 2015 along with the reduction in automotive build and sales estimates in the country.

NN's 2015 revenue in North America, Europe and Asia remain at or near the guidance levels previously provided.  NN continues to reaffirm its 2018 strategic targets.

Richard Holder, President and CEO commented, "While our team did a great job in the first quarter managing our Brazilian business, the economic challenges continue to persist. Light vehicle sales in Brazil were 20% lower through May and are expected to be 30% lower in the coming months compared to the last several years, which have pushed OEM inventories higher than normal. While this economic struggle is disappointing, we remain committed to the Brazilian market and believe our competitive position in the country will provide us a significant advantage in the future.  Excluding Brazil, the remainder of our businesses around the globe continue to perform in line with our expectations and we remain committed to achieving our 2018 strategic plan and targets."

JOHNSON CITY, Tenn., June 22, 2015 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR) a diversified industrial company, today announced that it is commencing an underwritten registered public offering of 6,000,000 shares of its common stock.  In connection with this offering, NN expects to grant the underwriters a 30-day option to purchase up to an additional 900,000 shares. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

NN intends to use the net proceeds from the offering to repay debt under its term loan and asset-backed revolving credit facility, and the remainder of the net proceeds will be used for other general corporate purposes, including to fund acquisitions and investments, to finance capital expenditures, to repay or refinance other borrowings and to provide working capital..

KeyBanc Capital Markets Inc. is acting as sole book-running manager for the offering and William Blair & Company, L.L.C., Stephens Inc., Stifel, Nicholaus, & Company, Incorporated, Avondale Partners, LLC, CJS Securities, Inc. and Regions Securities LLC are acting as co-managers.

Reported Q1 2015 results:

• Q1 2015 revenues of $163.7 million vs $102.5 million in the prior year and slightly below analyst estimates of $164.1 million.

• Q1 2015 EPS of $0.36 vs $0.31 in the prior year and ahead of analyst estimates of $0.34

Comments from managment:

Richard Holder, President and Chief Executive Officer, commented, "Our first quarter results are in line with our expectations and provide a solid start to the year. The four acquisitions made in 2014 remain ahead of our stated integration and synergy targets for 2015. "

Earlier today, we began tracking NNBR due to:

• Bullish commentary in its financial press release issued on August 11, 2010.

"For the second half of the year, we are forecasting continued strong customer demand for our products. Traditionally, in terms of revenues, our third quarter is our weakest quarter due to seasonality factors. Historically, our third quarter has been down sequentially versus the second quarter in a range of 8% to 10%. However, based on continued strong customer demand, we are anticipating a third quarter with sales only slightly down from second quarter levels with continuing good demand through the end of the year. We therefore are revising our previous guidance of $315 million to $335 million in revenues to a range of $350 million to $360 million in revenues for the full 2010 year. The midpoint of our guidance reflects the assumption that during the second half of 2010 we will see revenues in line with our experience during the first half of the year. We are encouraged by the pace of the recovery and the significant improvement we have experienced in profitability and corresponding cash flows during the first half of 2010. We look forward to the last half of 2010 with some level of confidence that the global economic recovery will continue to provide a level of demand that will return NN to solid levels of profitability moving forward."

• EPS Estimates that point to some strong growth for the back half of 2010, where the company is expected to report EPS of $0.34 compared to a loss in EPS of $(0.53) in the same period in 2009.
  
• At $7.30, the stock has pulled back from a recent high of $8.42, which could give investors a chance to enter a stock that is selling at a P/E of 10 on 2010 EPS estimates of $0.73. 

Please note that EPS comparisons will become more challenging starting in the second half of 2011.