Business
NN, Inc. Announces Initiatives to Reduce Costs and Improve Cash Flow
CHARLOTTE, N.C., Oct. 21, 2019 /PRNewswire/ -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced expense reduction and cash savings
About this update from Nn, Inc.
[{"type":"text","content":" CHARLOTTE, N.C., Oct. 21, 2019 /PRNewswire/ -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced expense reduction and cash savings initiatives to help the Company continue to pay down its debt and support greater growth by reinvesting in its businesses. The initiatives are expected to produce approximately $32 million in annualized cash savings and include the following: streamlining facilities and reducing overall SG&A costs, which are expected to save NN approximately $10 million per year when fully implemented; elimination of the quarterly dividend, which is expected to save the Company approximately $12 million per year; and a reduction in capital expenditures as NN returns to a more normalized level of capital spending after several years of higher investment, which is expected to generate an additional $10 million of savings per year. The Company expects these cost reductions to be fully realized by the second quarter of 2020. \n\"NN has a strong portfolio of businesses and a solid foundation from which we can build, and we are focused on making the most efficient use of our capital to best position NN for the long term,\" said Warren Veltman, interim President and CEO of NN. \"The initiatives we are undertaking should generate cash savings of approximately $32 million per year, which we can utilize to de-lever our balance sheet while also making further investments in the areas where we see the highest growth potential. Tom DeByle and I have been working closely with the Board to identify opportunities to improve our overall financial performance. To that end, we will continue to look at the entire business to explore additional cost savings and other strategic actions we could take to improve free cash flow generation and accelerate our ability to pay down our debt.\"\nCommenting on the initiatives, Tom DeByle, Senior Vice President and Chief Financial Officer said, \"We are focused on carefully evaluating each of our businesses to determine where we can further streamline costs and allocate our capital more strategically and efficiently to ensure that we have the flexibility to continue to de-lever while also making investments that have the highest potential return.\"\nIn addition to these initiatives, NN announced that it plans to refinance its existing senior credit facilities to extend...