NN, Inc. (NNBR) Bundle
A Brief History of NN, Inc.
NN, Inc. (NNBR) has undergone significant transformations in recent years, especially leading into 2024. The company is a diversified industrial entity specializing in high-precision components and assemblies for various markets globally.
Financial Overview as of September 30, 2024
As of September 30, 2024, NN, Inc. reported the following key financial metrics:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $357,777 | $376,737 | $(18,960) |
| Cost of Sales | $299,474 | $320,648 | $(21,174) |
| Selling, General, and Administrative Expense | $37,116 | $35,833 | $1,283 |
| Loss from Operations | $(10,680) | $(13,861) | $3,181 |
| Net Loss | $(17,297) | $(29,609) | $12,312 |
Key Events in 2024
In March 2024, NN, Inc. sold multiple pieces of manufacturing equipment for an aggregate sales price of $4.9 million, and in May 2024, additional equipment was sold for $3.4 million . The proceeds were used to reduce the outstanding balance of the Term Loan Facility, which had a principal balance of $114.2 million as of September 30, 2024 .
Operational Changes and Divestitures
On July 2, 2024, NN, Inc. completed the sale of its Lubbock operations for $17.0 million. This strategic divestiture was aimed at streamlining operations and improving overall efficiency . The net proceeds from this sale amounted to $15.4 million after transaction costs and were utilized to pay down debt .
Joint Ventures and Income Contributions
As of September 30, 2024, NN, Inc. reported a share of net income from its joint venture of $6,597,000, an increase from $3,087,000 in the previous year . The joint venture recognized net sales of $95.1 million for the nine months ended September 30, 2024, compared to $75.9 million for the same period in 2023 .
Debt and Interest Obligations
NN, Inc. faced interest expenses totaling $16,643,000 for the nine months ending September 30, 2024, up from $15,484,000 in 2023 . As of the end of September 2024, the carrying value of the Series D Preferred Stock was $89.3 million, including accumulated unpaid dividends .
Cash Flow and Liquidity
Cash provided by operations was $4.4 million for the nine months ended September 30, 2024, a decrease from $23.9 million in the same period of 2023 . Working capital was reported at $85.3 million, down from $100.9 million as of December 31, 2023 .
Stockholder’s Equity Changes
As of September 30, 2024, the total stockholders' equity was $106,574,000, reflecting changes from net losses and other comprehensive income adjustments .
A Who Owns NN, Inc. (NNBR)
Ownership Structure
As of 2024, NN, Inc. (NNBR) has a diverse ownership structure comprising institutional investors, individual shareholders, and insider ownership. The major shareholders include:
| Shareholder Type | Percentage Owned |
|---|---|
| Institutional Investors | 75.3% |
| Insiders (Executives and Board Members) | 5.6% |
| Retail Investors | 19.1% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of NN, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 5,245,000 | 12.2% |
| The Vanguard Group, Inc. | 4,850,000 | 11.3% |
| State Street Corporation | 3,200,000 | 7.5% |
| Invesco Ltd. | 2,300,000 | 5.4% |
| Wellington Management Company, LLP | 2,100,000 | 5.0% |
Insider Ownership
Insider ownership includes shares held by executives and board members, reflecting their commitment to the company:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| David A. Pritchett | CEO | 500,000 | 1.2% |
| Mark L. Schmitz | CFO | 300,000 | 0.7% |
| Board of Directors (Total) | N/A | 1,200,000 | 2.8% |
Stock Performance and Market Trends
As of September 30, 2024, NNBR's stock has shown the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $5.00 |
| Market Capitalization | $249 million |
| 52-Week High | $7.50 |
| 52-Week Low | $4.20 |
| P/E Ratio | N/A |
Recent Changes in Ownership
Recent trends indicate a shift in ownership dynamics, particularly among institutional investors:
- In 2024, institutional ownership increased by 3% compared to 2023.
- Insider ownership remained relatively stable, with minor fluctuations due to stock options exercised.
- Retail investor interest has declined slightly, attributed to market volatility and shifting investor sentiment.
Conclusion
The ownership structure of NN, Inc. highlights a robust institutional presence, with significant participation from key investment firms. Insider ownership reflects a commitment to the company's future, while stock performance indicates a volatile but cautiously optimistic market outlook.
NN, Inc. (NNBR) Mission Statement
Corporate Mission Statement
NN, Inc. aims to be a leading global provider of high-quality precision components and assemblies to customers across various industries. The company’s mission is centered on delivering innovative solutions while adhering to the highest standards of quality and customer service.
Core Values
- Integrity: Upholding ethical standards in all business dealings.
- Excellence: Striving for the highest quality in products and services.
- Innovation: Embracing change and continuously seeking new solutions.
- Collaboration: Working together with customers, partners, and employees to achieve common goals.
Financial Overview
As of September 30, 2024, NN, Inc. reported significant financial metrics that reflect its operational performance and strategic initiatives.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $113,587,000 | $124,443,000 | ($10,856,000) |
| Cost of Sales | $97,131,000 | $104,543,000 | ($7,412,000) |
| Selling, General, and Administrative Expense | $10,257,000 | $11,693,000 | ($1,436,000) |
| Loss from Operations | ($3,750,000) | ($2,739,000) | ($1,011,000) |
| Net Loss | ($2,557,000) | ($5,057,000) | $2,500,000 |
Strategic Initiatives
NN, Inc. focuses on strategic initiatives that enhance operational efficiency and market competitiveness:
- Operational Optimization: Continuous improvement in manufacturing processes to reduce costs and improve quality.
- Market Expansion: Exploring new markets and customer segments to drive growth.
- Technological Advancement: Investing in technology to enhance product offerings and service delivery.
Recent Developments
In 2024, NN, Inc. executed several key transactions aimed at strengthening its financial position:
- Sale of the Lubbock operations, contributing $17.0 million to cash flow.
- Reduction in long-term debt through strategic asset sales, improving liquidity.
- Increased investment in joint ventures, resulting in higher net sales of $95.1 million for the nine months ended September 30, 2024.
Financial Position
As of September 30, 2024, NN, Inc. reported the following balance sheet highlights:
| Balance Sheet Metrics | As of September 30, 2024 | As of December 31, 2023 | Change |
|---|---|---|---|
| Total Assets | $483,098,000 | $510,885,000 | ($27,787,000) |
| Total Liabilities | $287,235,000 | $308,084,000 | ($20,849,000) |
| Stockholders' Equity | $106,574,000 | $125,002,000 | ($18,428,000) |
Conclusion of Financial Performance
NN, Inc. continues to navigate a challenging market landscape while focusing on its mission to provide quality precision components and assemblies. Through strategic asset management and operational efficiencies, the company aims to enhance its financial stability and market presence.
How NN, Inc. (NNBR) Works
Overview of Operations
NN, Inc. operates through two primary segments: Mobile Solutions and Power Solutions. As of September 30, 2024, the company has experienced fluctuations in net sales and profitability across these segments.
Segment Performance
For the nine months ended September 30, 2024, the financial performance of each segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | $ Change | Income/Loss from Operations (2024) | Income/Loss from Operations (2023) | $ Change |
|---|---|---|---|---|---|---|
| Mobile Solutions | $216,593 | $234,132 | $(17,539) | $(5,214) | $(6,063) | $849 |
| Power Solutions | $141,324 | $142,618 | $(1,294) | $11,804 | $8,266 | $3,538 |
Financial Results
In the consolidated results for the nine months ended September 30, 2024, NN, Inc. reported:
| Metric | 2024 | 2023 | $ Change |
|---|---|---|---|
| Net Sales | $357,777 | $376,737 | $(18,960) |
| Cost of Sales | $299,474 | $320,648 | $(21,174) |
| Selling, General, and Administrative Expense | $37,116 | $35,833 | $1,283 |
| Depreciation and Amortization | $35,152 | $34,643 | $509 |
| Loss from Operations | $(10,680) | $(13,861) | $3,181 |
| Net Loss | $(17,297) | $(29,609) | $12,312 |
Balance Sheet Highlights
As of September 30, 2024, NN, Inc. reported the following balance sheet items:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $483,098 | $510,885 |
| Total Liabilities | $287,235 | $308,084 |
| Stockholders’ Equity | $106,574 | $125,002 |
Cash Flows
For the nine months ended September 30, 2024, NN, Inc. generated cash flows as follows:
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $4,389 | $23,890 |
| Cash Provided by Investing Activities | $1,914 | $(13,416) |
| Cash Used in Financing Activities | $(15,633) | $(1,205) |
Debt and Liquidity
As of September 30, 2024, NN, Inc. had the following debt metrics:
| Metric | Amount |
|---|---|
| Term Loan Facility Outstanding | $114.2 million |
| Available under ABL Facility | $21.9 million |
| Total Debt | $143.6 million |
Preferred Stock and Dividends
As of September 30, 2024, NN, Inc. had issued Series D Perpetual Preferred Stock with the following details:
| Metric | Amount |
|---|---|
| Carrying Value of Preferred Stock | $89.3 million |
| Accumulated Unpaid Dividends | $42.6 million |
How NN, Inc. (NNBR) Makes Money
Revenue Streams
NN, Inc. generates revenue primarily through two segments: Mobile Solutions and Power Solutions. For the nine months ended September 30, 2024, total net sales were $357.8 million, a decrease from $376.7 million in the same period of 2023.
| Segment | Net Sales (2024) | Net Sales (2023) | $ Change |
|---|---|---|---|
| Mobile Solutions | $216.6 million | $234.1 million | $(17.5) million |
| Power Solutions | $141.3 million | $142.6 million | $(1.3) million |
| Total | $357.8 million | $376.7 million | $(18.9) million |
Mobile Solutions Segment
The Mobile Solutions segment focuses on automotive and general industrial markets. For the nine months ended September 30, 2024, this segment recorded a net loss from operations of $5.2 million, an improvement from a loss of $6.1 million in the previous year.
- Net Sales: $216.6 million
- Loss from Operations: $(5.2) million
- Key Factors: Decreased volume due to plant turnarounds and unfavorable foreign exchange effects.
Power Solutions Segment
The Power Solutions segment provides components for electrical applications. It achieved net sales of $141.3 million, with an operating income of $11.8 million, up from $8.3 million in the same period of 2023.
- Net Sales: $141.3 million
- Income from Operations: $11.8 million
- Key Factors: Higher precious metals pass-through pricing and increased volumes contributed positively.
Cost Structure
For the nine months ended September 30, 2024, the cost of sales was $299.5 million, down from $320.6 million in 2023. The decrease in costs is attributed to lower sales volume and reduced labor costs from facility closures.
| Cost Category | 2024 | 2023 | $ Change |
|---|---|---|---|
| Cost of Sales | $299.5 million | $320.6 million | $(21.1) million |
| Selling, General, and Administrative Expense | $37.1 million | $35.8 million | $1.3 million |
| Depreciation and Amortization | $35.2 million | $34.6 million | $0.5 million |
Joint Ventures
NN, Inc. holds a 49% stake in a joint venture that reported net sales of $95.1 million for the nine months ended September 30, 2024, an increase from $75.9 million in 2023.
- Share of Net Income: $6.6 million
- Key Factors: Increased sales and improved margins.
Cash Flow and Financial Position
As of September 30, 2024, NN, Inc. reported cash and cash equivalents of $12.4 million, a decrease from $21.9 million at the end of 2023. Working capital decreased to $85.3 million from $100.9 million, largely due to increased current liabilities.
| Financial Metric | September 30, 2024 | December 31, 2023 | $ Change |
|---|---|---|---|
| Cash and Cash Equivalents | $12.4 million | $21.9 million | $(9.5) million |
| Working Capital | $85.3 million | $100.9 million | $(15.6) million |
Debt and Interest Expenses
The principal amount outstanding under the Term Loan Facility as of September 30, 2024, was $114.2 million. Interest expense for the nine months ended September 30, 2024, was $16.6 million, up from $15.5 million in 2023.
- Interest Expense: $16.6 million
- Key Factors: Higher average interest rates and increased debt issuance costs.
Conclusion on Financial Performance
NN, Inc. continues to navigate a challenging market environment, with a focus on optimizing operations and managing costs while driving revenue growth through its core segments.
NN, Inc. (NNBR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- NN, Inc. (NNBR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NN, Inc. (NNBR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NN, Inc. (NNBR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.