Business
NN, Inc. Reports Financial Results For Third Quarter 2021
Third quarter net sales increased 3.1% over prior year, financial results impacted by ongoing supply chain challenges CHARLOTTE, N.C., Nov. 4, 2021
About this update from Nn, Inc.
[{"type":"text","content":"Third quarter net sales increased 3.1% over prior year, financial results impacted by ongoing supply chain challenges\n\n\nCHARLOTTE, N.C., Nov. 4, 2021 /PRNewswire/ -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today reported its financial results for the third quarter ended September 30, 2021.\nGAAP Results\nNet sales for the third quarter of 2021 increased $3.5 million, or 3.1%, to $117.2 million compared to $113.8 million for the third quarter of 2020. The increase in sales from prior year is attributable to continued recovery from the COVID-19 pandemic in Power Solutions, which was partially offset by the semiconductor chip shortage impact on Mobile Solutions sales. Third quarter Power Solutions sales increased 12.1% and Mobile Solutions sales decreased 2.5% compared to the prior year.\nLoss from operations for the third quarter of 2021 was $4.6 million compared to loss from operations of $1.5 million for the same period in 2020. The increase in loss from operations was primarily driven by the reinstatement of certain costs that had been temporarily suspended in the prior year, material and labor inflation, and operational inefficiencies driven by variability of customer production schedules and supply chain issues.\nLoss from operations for third quarter 2021 in the Mobile Solutions segment was $0.3 million compared to income from operations of $5.0 million for the same period in 2020. Income from operations for third quarter 2021 in the Power Solutions segment was $1.3 million compared to income from operations of $1.1 million for the same period in 2020.\nNet loss for the third quarter of 2021 was $3.4 million compared to net income of $22.0 million for the same period in 2020. The reduction in net income for the third quarter of 2021 was driven by the income of discontinued operations of the former Life Sciences business in 2020 as well as the reinstatement of certain costs that were temporarily suspended in the prior year due to the COVID-19 pandemic and increased income tax expense. The decrease in net income was partially offset by a favorable revaluation of warrants and reductions in interest expense resulting from termination of the interest rate swap in place in the prior year.\nAdjusted Results\nAdjusted loss from operations for the third quarter of 2021 was $0.2 million compared to an adjusted in...