Business
NN, Inc. Reports Second Quarter 2020 Results
Free cash flow improved by $9.1 million compared to prior year Amended debt agreement enhances financial flexibility CHARLOTTE, N.C., Aug. 6, 2020
About this update from Nn, Inc.
[{"type":"text","content":"Free cash flow improved by $9.1 million compared to prior year\n Amended debt agreement enhances financial flexibility\n\n\nCHARLOTTE, N.C., Aug. 6, 2020 /PRNewswire/ -- NN, Inc., (NASDAQ: NNBR), a diversified industrial company, today reported its financial results for the second quarter ended June 30, 2020.\nGAAP Results \nNet sales for the second quarter of 2020 decreased $71.2 million, or 32.1%, to $150.4 million, compared to $221.7 million for the second quarter of 2019, driven by a decline in organic volume of $69.9 million, as a result of lower demand due to the COVID-19 pandemic within the orthopaedic, global automotive, electrical products, and oil and gas end markets, along with unfavorable foreign exchange effects of $1.3 million.\nOn a GAAP basis, loss from operations for the second quarter of 2020 was $8.2 million, compared to income from operations of $7.5 million for the same period in 2019. In the second quarter of 2020, the loss from operations was primarily driven by the above-referenced sales volume decline, which was partially offset by cost reduction initiatives that resulted in lower personnel and travel costs.\nNet loss on a GAAP basis for the second quarter of 2020 was $21.7 million, compared to net loss on a GAAP basis of $7.3 million in the second quarter of 2019. \nOn a GAAP basis, income from operations for second quarter 2020 in the Life Sciences segment was $4.3 million, compared to income from operations of $9.3 million for the same period in 2019.\nOn a GAAP basis, loss from operations for second quarter 2020 in the Mobile Solutions segment was $4.6 million, compared to income from operations of $3.5 million for the same period in 2019.\nOn a GAAP basis, income from operations for second quarter 2020 in the Power Solutions segment was $1.5 million, compared to income from operations of $5.7 million for the same period in 2019.\nAdjusted Results \nAdjusted income from operations for the second quarter of 2020 was $8.0 million, compared to $27.3 million for the same period in 2019. Adjusted EBITDA for the second quarter of 2020 was $22.9 million, or 15.3% of sales, versus $39.3 million, or 17.7% of sales, for the same period in 2019. Adjusted net loss was $4.8 million, or $0.11 per diluted share, compared to adjusted net income of $10.0 million, or $0.24 per diluted share, for the same period in 201...