NN, Inc. Highlights Third Quarter 2024 Results
NN, Inc. (NASDAQ: NNBR), a leader in engineering high-precision industrial component manufacturing, has recently shared its financial performance results for the third quarter ending September 30, 2024. This exciting release encompasses key metrics that showcase the company's ongoing transformation and growth strategies.
Key Financial Highlights
During the reported quarter, NN, Inc. achieved business wins totaling $15 million. This brought the year-to-date totals to an impressive $49 million, with trailing 21-month totals standing at $113 million. The company is on track to meet its full-year guidance, which is further supported by cost optimization efforts within its North American Mobile Solutions operations.
Cost Efficiency Measures
To enhance profitability, NN, Inc. is steadfast in reducing costs across its operations. The company aims for a minimum of 10% adjusted EBITDA margin through systematic footprint optimization and overhead cost reductions. Notably, the leverage ratio decreased to 2.97x due to proactive cash management, particularly following the sale of its Lubbock plant, which contributed positively to debt reduction.
Growth in China
In Asia, specifically China, sales grew by 19% compared to the prior year as the company continued to build robust relationships with top-tier customers. The operational and cost reduction measures introduced in the third quarter, including a $2 million annualized cost-out program, are set to extend into the fourth quarter and the first half of 2025, driving sustainable financial health.
Operational Performance
In terms of operational results, net sales for Q3 were reported at $113.6 million, reflecting a decrease of 8.7% from the $124.4 million achieved during the same period last year. This dip primarily results from the earlier Lubbock sale, reduced volumes from plants undergoing improvements, and unfavorable foreign exchange impacts.
Loss from Operations
According to the reports, NN recorded a loss from operations of $3.8 million for the quarter, compared to a loss of $2.7 million in Q3 2023. This was influenced predominantly by the lower sales volumes. However, adjusted income from operations remains a silver lining; it stood at $1.3 million, compared to $3.7 million in the prior year.
Outlook for 2024 and Beyond
The company is optimistic about its 2024 outlook, forecasting revenues between $465 million and $485 million. They anticipate adjusted EBITDA to range from $47 million to $51 million, alongside expectations for free cash flow between $8 million and $12 million. Additionally, NN intends to secure new business wins ranging between $55 million and $70 million as part of its growth objectives.
Strategic Refinancing Efforts
Looking ahead, NN, Inc. is dedicated to a strategic refinancing process focusing on its long-term growth capital needs and ensuring that operational transformations remain on course. The leadership team at NN believes that the proactive approach, including judicious investments in high-return projects, will align with their broader operational goals.
Conference Call and Further Engagement
NN will delve deeper into its Q3 financial results during its quarterly investor conference call on October 31, 2024, at 9 a.m. ET. This event is a pivotal moment for shareholders and interested parties to further engage with the company’s strategic direction and financial health.
About NN, Inc.
Headquartered in Charlotte, North Carolina, NN, Inc. integrates advanced engineering and manufacturing capabilities with a deep understanding of materials science. Offering high-precision components and assemblies, NN serves various markets across North America, Europe, and Asia. To learn more about their products and strategic initiatives, visit their corporate website.
Frequently Asked Questions
What were NN, Inc.'s net sales for Q3 2024?
NN, Inc. reported net sales of $113.6 million for the third quarter of 2024, a decrease from $124.4 million in Q3 2023.
What strategies is NN, Inc. implementing to improve profitability?
NN, Inc. is focusing on cost reductions, optimizing their North American Mobile Solutions operations, and increasing new business wins.
How did the sale of the Lubbock plant impact NN, Inc.?
The sale of the Lubbock plant positively contributed to the company's debt reduction and allowed for increased focus on core competencies.
What is NN, Inc.'s outlook for 2024?
NN, Inc. is forecasting revenues between $465 million to $485 million and anticipates adjusted EBITDA between $47 million and $51 million for 2024.
When will NN, Inc. hold its next investor conference call?
The next investor conference call for NN, Inc. is scheduled for October 31, 2024, at 9 a.m. ET.
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