Business
NN, Inc. Reports First Quarter 2020 Results
Implemented additional cost savings initiatives to increase financial flexibility and liquidity position Significantly improved free cash flow by $15.7
About this update from Nn, Inc.
[{"type":"text","content":"Implemented additional cost savings initiatives to increase financial flexibility and liquidity position\n Significantly improved free cash flow by $15.7 million\n\n\n CHARLOTTE, N.C., May 7, 2020 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR), a diversified industrial company, today reported its financial results for the first quarter ended March 31, 2020.\nGAAP Results \nNet sales for the first quarter of 2020 decreased $13.5 million, or 6.3%, to $199.7 million, compared to $213.3 million for the first quarter of 2019, driven by a decrease in organic volume of $11.4 million, as a result of decreases in core volumes in the orthopaedic, automotive, and electrical end markets; unfavorable foreign exchange effects of $2.1 million; and decreased demand across all segments related to the COVID-19 pandemic. \nOn a GAAP basis, loss from operations for the first quarter of 2020 was $245.3 million, compared to a loss from operations of $0.3 million for the same period in 2019. In the first quarter of 2020, the loss from operations included a goodwill impairment charge of $239.7 million, which negatively impacted Life Sciences by $146.8 million and Power Solutions by $92.9 million. This negative impact was partially offset by a decrease in selling, general and administrative expense of $3.3 million, compared to the first quarter of 2019, primarily due to cost reduction initiatives that drove decreases in personnel costs and travel costs.\nNet loss on a GAAP basis for the first quarter of 2020 was $248.2 million, compared to net loss on a GAAP basis of $19.5 million in the first quarter of 2019. \nOn a GAAP basis, loss from operations for first quarter 2020 in the Life Sciences segment was $141.0 million, compared to income from operations of $3.8 million for the same period in 2019.\nOn a GAAP basis, income from operations for first quarter 2020 in the Mobile Solutions segment was $0.3 million, compared to income from operations of $3.2 million for the same period in 2019.\nOn a GAAP basis, loss from operations for first quarter 2020 in the Power Solutions segment was $90.3 million, compared to income from operations of $3.8 million for the same period in 2019.\nAdjusted Results \nAdjusted income from operations for the first quarter of 2020 was $17.1 million, compared to $22.4 million for the same period in 2019. Adjusted EBITDA for the first...