Slide 1: Second Quarter 2016 Earnings Release
Second Quarter 2016 Earnings Release August 4,
Slide 2: Forward Looking Statements & Disclosures
Forward Looking Statements & Disclosures Forward Looking Statement: With the exception of the historical information contained in this presentation, the matters described herein contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigati
Slide 3: Second Quarter
Second Quarter
Slide 4: Highlights of 2nd Quarter 2016
Highlights of 2nd Quarter 2016 Sales of $214.3M PEP acquisition contributed $58.4M Adjusted Diluted Earnings Per Share of $0.46 Adjusted EBITDA of $40.8M Adjusted Operating Margins increased 420 bps to 13.4% compared to Q2 2015 Free Cash Flow continues to exceed expectations
Slide 5: 2nd Quarter 2016 Financial Summary
2nd Quarter 2016 Financial Summary Adjusted Diluted Earnings Per Share Net Sales Issued 7.6M shares in Q3 201530% growth compared to prior year In Millions $0.50 $230.0 $0.45 $220.0 $0.46 $210.0$214.3 $0.40 $0.42$200.0 $0.35 $190.0 $0.30 $180.0 $170.0 $0.25 $160.0$164.9 $0.20 $150.0 $0.15 $140.0 $13
Slide 6: 2nd Quarter 2016 Financial Summary
2nd Quarter 2016 Financial Summary Gross Margin Adjusted Operating Margin 490 bps improvement driven by acquisition of 420bps margin expansion resulting from acquisitions PEP and the NN Operating System and improvements in the NN Operating System 30.0% 14.0% 13.0%13.4% 25.0% 26.8%12.0% 11.0% 20.0% 2
Slide 7: 2nd Quarter 2016 Financial Summary
2nd Quarter 2016 Financial Summary Adjusted EBITDA Margin SG&A 410bps improvement resulting from the Includes $1.9M of restructuring and M&A cost acquisition of PEP & the NN Operating System $4.6 million of the increase from theacquisition of PEP In Millions 20.0% $24.0 18.0% 19.0% $22.0 $20.0$21.6
Slide 8: Autocam Precision Components Group
Autocam Precision Components Group Net SalesAdjusted Operating Margin Weakness in industrial markets drove the NN Operating System continues to drive margin declineexpansion In Millions $100.0 16.0% 15.0% $90.0 14.0%14.6% $80.0 $86.5 13.0% $83.0 12.0%12.7% $70.0 11.0% $60.0 10.0% 9.0% $50.0 8.0% $40
Slide 9: Precision Bearing Components Group
Precision Bearing Components Group Net SalesAdjusted Operating Margin Weakness in industrial markets drove the Margins flexing in line with expectations decline In Millions $80.0 14.0% 13.0%13.7% $70.0 $69.3 12.0%12.6% $60.0 $65.211.0% 10.0% $50.0 9.0% 8.0% $40.0 7.0% $30.0 6.0% 5.0% $20.0 4.0% 3.0%
Slide 10: Precision Engineered Products Group
Precision Engineered Products Group Net Sales Adjusted Operating Margin Acquisition of PEP added $58M 380bps improvement compared to Q1 2016 In Millions 26.0% $70.0 24.0%24.6% $66.122.0% $60.0 20.0% $50.0 18.0% 16.0% $40.0 14.0% $30.0 12.0% 10.0% $20.0 8.0% 6.0% $10.0 $9.1 4.0%5.7% $0.0 2.0% 2015 20
Slide 11: 2nd Quarter Summary
2nd Quarter Summary Balanced portfolio continues to be benefit Continued weakness in the industrial end market impacted the top line Excluding industrials our portfolio continues to grow in line with our expectations NN Operating System driving margin expansion Margin expansion ahead of plan Free Ca
Slide 12: Guidance
Guidance
Slide 13: 2nd Quarter 2016 Guidance
2nd Quarter 2016 Guidance Second Quarter Third Quarter Commentary Actual Guidance Net Sales $214.3M $213M-$228MIndustrial markets remain tepid Adj. Op Margin 13.4% 13.3%-14.5%Margin expansion driven by end market diversification & operational improvements Adj. EBITDA $40.1M $40.1M-$45.1M Growth in n
Slide 14: 2016 Guidance
2016 Guidance Updated Prior 2016 Guidance 4Commentary Guidance Net Sales $875M -$905M$850M -$875MGrowth in other end markets offset by industrial uncertainty Adj. Operating Continued improvements in the NN Operating System 12.5% -13.2%12.9% -13.3% Margin driving expansion Adj. EBITDA $162.5M—$175M$1
Slide 15: Reconciliation Tables
Reconciliation Tables
Slide 16: Reconciliation of Adjusted Income from Operations
Reconciliation of Adjusted Income from Operations
Slide 17: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA
Slide 18: Reconciliation of Adjusted Net Income
Reconciliation of Adjusted Net Income
Slide 19: 3rd Quarter & Full Year Guidance – Adjusted Operating Margin
3rd Quarter & Full Year Guidance – Adjusted Operating Margin
Slide 20: 3rd Quarter & Full Year Guidance – Adjusted EBITDA
3rd Quarter & Full Year Guidance – Adjusted EBITDA
Slide 21: 3rd Quarter & Full Year Guidance – Adjusted Net Income & EPS
3rd Quarter & Full Year Guidance – Adjusted Net Income & EPS
Slide 22: Full Year Guidance – Free Cash Flow
Full Year Guidance – Free Cash Flow