The following is a summary of the NN, Inc. (NNBR) Q1 2024 Earnings Call Transcript:
Financial Performance:
NN, Inc. reported Q1 2024 net sales of $121.2 million and an operating loss of $4.8 million.
Adjusted EBITDA grew to $11.3 million, marking a 20% increase from $8.1 million in the previous year.
The company projects net sales between $485 million to $505 million and adjusted EBITDA between $48 million to $54 million for the year.
A total of $4.9 million was achieved through equipment sale leasebacks in Q1, and similar moves are planned throughout the year.
Interest expense for the first quarter was $5.4 million, primarily due to the term loan interest rate of 14.3%.
Business Progress:
NN, Inc. won new businesses worth $17 million in Q1 2024, approximately three times the market growth rate.
Three of the seven underperforming plants are now profitable, while the rest are expected to profit also by the end of the year.
Planned improvements for these underperforming plants extend into 2025.
The firm is focusing on a strategic pipeline of approximately $550 million for growth.
CapEx spending is capped at around $20 million, with plans to expand based on successful product launches.
The firm is leveraging existing capacity after winning new contracts and expects to launch about 40 new programs in the next two to three quarters.
Growth in the China-based business is primarily coming from expansion into adjacent markets in collaboration with the top 50 Original Equipment manufacturers (OEs), accounting for a third of its total expansion plans.
More details: NN Inc IR
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