Business
NN, Inc. Reports Fourth Quarter And Full Year 2019 Results
Full Year Net Sales Increase 10% to $847.5M Driven by Sales from Acquired Businesses and Organic Growth in Life Sciences CHARLOTTE, N.C., March 12, 2020
About this update from Nn, Inc.
[{"type":"text","content":"Full Year Net Sales Increase 10% to $847.5M Driven by Sales from Acquired Businesses and Organic Growth in Life Sciences\n\n\nCHARLOTTE, N.C., March 12, 2020 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR), a diversified industrial company, today reported its financial results for the fourth quarter and the year ended December 31, 2019. \nGAAP Results \nFourth Quarter 2019\nGAAP net sales were $198.6 million, compared to $199.5 million for the fourth quarter of 2018. Life Sciences net sales increased by $8.9 million during the quarter due to increased core volumes, which were offset by lower demand in the automotive and general industrial end markets. \nFourth quarter 2019 GAAP loss from operations was $4.7 million, compared to a GAAP loss of $188.4 million for the same period in 2018. The loss from operations in the fourth quarter 2018 was largely driven by a goodwill impairment charge of $182.5 million and a fixed asset impairment charge of $5.2 million. Gross profit increased in the fourth quarter of 2019 by $1.8 million, offset by higher depreciation and amortization expenses and SG&A expenses.\nFourth quarter 2019 GAAP net loss was $14.1 million, compared to a GAAP net loss of $217.4 million in the fourth quarter of 2018. The higher GAAP net loss in 2018 was primarily due to the goodwill impairment charges and fixed asset impairment charges taken in 2018 and an impairment charge of $16.6 million taken against the investment in NN's China joint venture. \nFull Year 2019\nNet sales in 2019 increased $76.8 million to $847.5 million, or 10%, compared to $770.7 million in 2018, attributable to $75.3 million in sales from businesses acquired in 2018, as well as organic growth of $9.8 million, driven by higher core volume in the Life Sciences group. This was partially offset by lower demand within the automotive end market in NN's Mobile Solutions group as well as unfavorable foreign exchange effects of $8.4 million in Europe, South America and Asia.\nGAAP income from operations was $9.9 million, compared to a $179.9 million GAAP loss for the same period in 2018. The 2018 loss was driven by certain one-time charges including a goodwill impairment of $182.5 million, fixed asset impairment of $5.2 million and acquisition expenses of $5.9 million. Gross profit grew by $24.3 million in 2019 from increased sales, offset by higher SG&A costs o...