-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BiU/N2EeIj6egh1TjJn4TULpbRJQd0SycgzdYrhHhGIgQGDyvlQ636ibqhYLgDJ8 bT6WWLM3Jsicq5tA9RvtDQ== 0001005794-05-000626.txt : 20050728 0001005794-05-000626.hdr.sgml : 20050728 20050728155645 ACCESSION NUMBER: 0001005794-05-000626 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NN INC CENTRAL INDEX KEY: 0000918541 STANDARD INDUSTRIAL CLASSIFICATION: BALL & ROLLER BEARINGS [3562] IRS NUMBER: 621096725 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23486 FILM NUMBER: 05981169 BUSINESS ADDRESS: STREET 1: 2000 WATERS EDGE DR CITY: JOHNSON CITY STATE: TN ZIP: 37604 BUSINESS PHONE: 4237439151 MAIL ADDRESS: STREET 1: 2000 WATERS EDGE DR CITY: JOHNSON CITY STATE: TN ZIP: 37604 FORMER COMPANY: FORMER CONFORMED NAME: NN BALL & ROLLER INC DATE OF NAME CHANGE: 19940203 8-K 1 nn8k072805.txt PRESS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 28, 2005 -------------- NN, INC. (Exact Name of Registrant as Specified in Charter) Delaware 0-23486 62-1096725 - -------------------------------------------------------------------------------- (State or Other Jurisdiction of (Commission (I.R.S. Employer Incorporation or Organization) File Number) Identification Number) 2000 Waters Edge Drive, Johnson City, Tennessee 37604 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (423) 743-9151 ------------------------- Not Applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition Furnished as Exhibit 99.1 is a copy of the earnings release of NN, Inc. reporting results for the second quarter of 2005, which was issued on July 28, 2005. Item 9.01. Financial Statements and Exhibits (c) Exhibits. The following exhibit is furnished pursuant to Item 2.02, is not considered "filed" under the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any of the previous or future filings of NN, Inc. under the Securities Act of 1933, as amended, or the Exchange Act: Exhibits: Exhibit Number Description of Exhibit ------- --------------------------------------------------- 99.1 Press Release of NN, Inc. dated July 28, 2005 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NN, Inc. Dated: July 28, 2005 By: /s/ William C. Kelly, Jr. ------------------------------------------ William C. Kelly, Jr. Secretary, Treasurer and Chief Administrative Officer EX-99 2 nnex99_1.txt EXHIBIT 99.1 - PRESS RELEASE EXHIBIT 99.1 FINANCIAL RELATIONS BOARD RE: NN, Inc. 2000 Waters Edge Drive Johnson City, TN 37604 FOR FURTHER INFORMATION: AT THE COMPANY AT FINANCIAL RELATIONS BOARD - -------------- ---------------------------- Will Kelly Marilynn Meek Susan Garland Vice President and Chief Administrative Officer (General info) (Analyst info) (423) 743-9151 212-827-3773 212-827-3775 FOR IMMEDIATE RELEASE July 28, 2005 NN, INC. REPORTS SECOND QUARTER 2005 RESULTS Revenues Up 12%, Earnings Per Share Up 75% Johnson City, Tenn, July 28, 2005 - NN, Inc. (Nasdaq: NNBR) today reported its financial results for the second quarter ended June 30, 2005. Net sales for the second quarter of 2005 rose 11.8% to $84.2 million from $75.3 million for the same period of 2004. Net income for the second quarter of 2005 totaled $3.6 million, or $0.21 per diluted share, compared to $2.0 million, or $0.12 per diluted share for the second quarter of 2004, an increase of 80.0% and 75.0% respectively. Net sales for the first half of 2005 were $170.9 million, up 11.8%, compared to $152.9 million for the same period of 2004. Net income for the first half of 2005 totaled $7.6 million, or $0.44 per diluted share, compared to $5.2 million, or $0.30 per diluted share for the same period of 2004, an increase of 46.2% and 46.7% respectively. James H. Dorton, Vice President and Chief Financial Officer, commented, "Of the total revenue increase of $18.0 million in the first half of 2005 as compared to the same period in 2004, volume improvements and new program share gains accounted for $7.8 million, the impact of currency translation accounted for $5.1 million and price increases associated with raw material pass through accounted for the remaining $5.1 million. Our 2005 second quarter revenues reflect slightly improving demand in both the North American and European automotive sectors and continuing year-to-date strong industrial demand in both markets. "As a percentage of net sales, 2005 second quarter cost of products sold was 78.4%. These margins, though essentially flat with the second quarter of 2004 level of 78.3%, were negatively impacted by increased resin prices at our Industrial Molding facility. Year-to-date cost of products sold was 78.2% which continued to show improvement over 2004 full year margins of 79.1%. This improvement was a direct result of the cost reduction efforts generated by our Level 3 initiative. "Selling, general and administrative expenses of $7.3 million, or 8.7% of net sales for the second quarter of 2005 decreased $744,000 from $8.0 million, or 10.6% of net sales for the second quarter of 2004. The decrease was primarily due to lower Sarbanes-Oxley compliance costs as compared to the prior year. Selling, general and administrative expenses for the first half of 2005 remained on plan at 8.7% of net sales as compared to 9.9% of net sales for the same period in 2004. Mr. Dorton concluded, "Debt minus cash remained relatively unchanged from the beginning of the year. Although traditionally our working capital needs are higher for the first half of the year, we are currently running behind our previously announced debt reduction goal of $12.0 million to $13.0 million for the full year of 2005. We remain committed to this goal and will take measures in the second half of the year to aggressively manage our working capital needs and reassess our capital expenditure plans." Roderick R. Baty, Chairman and Chief Executive Officer, commented, "We continue to be pleased with the start-up investments we have made in Slovakia and China, as well as certain strategic initiatives which have positioned the Company well for improving financial performance for the remainder of 2005 and beyond. Mr. Baty concluded, "In total, our operations are performing at levels established in our original business plan. We anticipate the strong overall levels of demand we experienced during the first half of the year to continue into the third and fourth quarters. As a result, our capacity utilization rates should remain high for the remainder of the year. We still face concerns regarding the volatility of steel inflation in the U.S. We will continue to experience significant steel raw material inflation in the domestic market during the last six months of the year. In Europe, there is a downward trend for scrap surcharge pricing levels and we expect this trend to continue through the remainder of 2005. In addition to the steel inflation, we have experienced higher resin costs at our Industrial Molding operation due to historically high oil prices. Our 2005 earnings projections include provisions for a continuing pass through of both steel and plastic resin inflation in the form of higher selling prices to our customers. "Finally, currency remains an open issue with respect to our previously provided guidance for both revenue and earnings in 2005. If the U.S. Dollar-Euro exchange rate for the remainder of the year remains at the level in place at the end of the second quarter, we would anticipate currency translation to negatively affect both revenue and earnings. Our revenue estimate for the full year would be adjusted downward by approximately $9.0 million to $328.0 million. Our anticipated full year earnings would be impacted by approximately $0.04 per diluted share and result in revised full year guidance of $0.86 to $0.90 per diluted share." 2 NN, Inc. manufacturers and supplies high precision bearing components consisting of balls, rollers, seals, and retainers for leading bearing manufacturers on a global basis. In addition, the company manufactures a variety of other plastic components. NN, Inc. had sales of US $304 million in 2004. 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, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of NN, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "assumptions", "target", "guidance", "outlook", "plans", "projection", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "potential" or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. Factors which could materially affect actual results include, but are not limited to: general economic conditions and economic conditions in the industrial sector, inventory levels, regulatory compliance costs and the Company's ability to manage these costs, start-up costs for new operations, debt reduction, competitive influences, risks that current customers will commence or increase captive production, risks of capacity underutilization, quality issues, availability and price of raw materials, currency and other risks associated with international trade, the Company's dependence on certain major customers, and other risk factors and cautionary statements listed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on 10-K for the fiscal year ended December 31, 2004. Financial Tables Follow 3 NN, Inc. Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 ------------ ------------ ------------- ------------- Net sales $84,166 $75,265 $ 170,881 $ 152,897 Cost of products sold (exclusive of depreciation shown separately below) 66,005 58,937 133,670 119,326 Selling, general and administrative 7,297 8,041 14,782 15,184 Depreciation and amortization 4,130 3,969 8,303 7,918 Loss on disposal of assets 2 - 6 - ------------ ------------ ------------- ------------- Income from operations 6,732 4,318 14,120 10,469 Interest expense, net 1,025 932 2,008 1,824 Other (income) expense, net (168) 25 (340) (31) ------------ ------------ ------------- ------------- Income before provision for income taxes 5,875 3,361 12,452 8,676 Provision for income taxes 2,320 1,375 4,872 3,472 ------------ ------------ ------------- ------------- Net income $ 3,555 $ 1,986 $ 7,580 $ 5,204 ============ ============ ============= ============= Diluted income per common share $ 0.21 $ 0.12 $ 0.44 $ 0.30 ============ ============ ============= ============= Weighted average diluted shares 17,328 17,177 17,252 17,176 ------------ ------------ ------------- -------------
4 NN, Inc. Condensed Balance Sheets (In thousands) (Unaudited)
June 30, December 31, 2005 2004 -------------------- ------------------- Assets Current Assets: Cash $ 8,038 $ 10,772 Accounts receivable, net 56,933 51,597 Inventories, net 33,161 35,629 Other current assets 12,020 10,340 -------------------- ------------------ Total current assets 110,152 108,338 Property, plant and equipment, net 115,214 131,169 Goodwill, net 42,044 44,457 Other assets 5,840 5,905 -------------------- ------------------ Total assets $ 273,250 $ 289,869 ==================== ================== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 38,869 $ 45,217 Accrued salaries and wages 13,944 16,332 Current portion of long-term debt 7,255 7,160 Other liabilities 6,656 5,722 -------------------- ------------------ Total current liabilities 66,724 74,431 Deferred income taxes 16,760 17,857 Long-term notes payable 64,669 67,510 Other 13,009 14,931 -------------------- ------------------ Total liabilities 161,162 174,729 Total stockholders' equity 112,088 115,140 Total liabilities and stockholders' equity $ 273,250 $ 289,869 ==================== ==================
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