Attached files
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|---|---|
| 8-K - FORM 8-K - NN INC | d604028d8k.htm |
Exhibit 99.1
NN, Inc.
Supplemental Business Segment Financial Information
Net Sales and Income from Operations
Life Sciences and Power Solutions
(unaudited)
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Precision Engineered Products |
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| GAAP net sales |
$ | 258,816 | $ | 71,109 | $ | 71,289 | $ | 66,492 | $ | 74,051 | $ | 282,941 | ||||||||||||
| Income from operations |
$ | 33,900 | $ | 10,417 | $ | 10,617 | $ | 7,177 | $ | 8,500 | $ | 36,711 | ||||||||||||
| Non-GAAP adjusted income from operations (a) |
$ | 58,279 | $ | 15,483 | $ | 15,584 | $ | 12,544 | $ | 15,127 | $ | 58,738 | ||||||||||||
| Non-GAAP adjusted operating margin (1) |
22.5 | % | 21.8 | % | 21.9 | % | 18.9 | % | 20.4 | % | 20.8 | % | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Power Solutions |
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| GAAP net sales |
$ | 180,330 | $ | 48,424 | $ | 48,734 | $ | 44,824 | $ | 44,620 | $ | 186,602 | ||||||||||||
| Income from operations |
$ | 24,060 | $ | 6,795 | $ | 6,819 | $ | 4,166 | $ | 5,660 | $ | 23,440 | ||||||||||||
| Non-GAAP adjusted income from operations (a) |
$ | 37,695 | $ | 9,620 | $ | 9,544 | $ | 7,291 | $ | 9,048 | $ | 35,503 | ||||||||||||
| Non-GAAP adjusted operating margin (1) |
20.9 | % | 19.9 | % | 19.6 | % | 16.3 | % | 20.3 | % | 19.0 | % | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Life Sciences |
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| GAAP net sales |
$ | 80,057 | $ | 23,129 | $ | 23,114 | $ | 22,154 | $ | 29,932 | $ | 98,329 | ||||||||||||
| Income from operations |
$ | 9,840 | $ | 3,622 | $ | 3,798 | $ | 3,011 | $ | 2,840 | $ | 13,271 | ||||||||||||
| Non-GAAP adjusted income from operations (a) |
$ | 20,584 | $ | 5,863 | $ | 6,040 | $ | 5,253 | $ | 6,079 | $ | 23,235 | ||||||||||||
| Non-GAAP adjusted operating margin (1) |
25.7 | % | 25.4 | % | 26.1 | % | 23.7 | % | 20.3 | % | 23.6 | % | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Elimination |
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| GAAP net sales |
$ | (1,571 | ) | $ | (444 | ) | $ | (559 | ) | $ | (486 | ) | $ | (501 | ) | $ | (1,990 | ) | ||||||
| Income from operations |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Non-GAAP adjusted income from operations (a) |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| (1) | Non-GAAP adjusted operating margin = Non-GAAP adjusted income from operations / GAAP net sales |
| (a) | Non-GAAP Adjusted income from operations, represents GAAP income from operations, adjusted to exclude the effects of restructuring and integration expense, non-operational charges related to acquisition, divestiture and integration costs, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income from operations, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income from operations. |
NN, Inc.
Reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations
Supplemental Business Segment Financial Information - Life Sciences and Power Solutions
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Precision Engineered Products |
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| GAAP income from operations |
$ | 33,900 | $ | 10,417 | $ | 10,617 | $ | 7,177 | $ | 8,500 | $ | 36,711 | ||||||||||||
| Restructuring and integration expense |
1,318 | — | — | — | — | — | ||||||||||||||||||
| Acquisition and transition expense |
596 | 100 | — | 400 | 1,548 | 2,048 | ||||||||||||||||||
| Amortization of intangibles |
22,465 | 4,966 | 4,967 | 4,967 | 5,079 | 19,979 | ||||||||||||||||||
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| Non-GAAP adjusted income from operations (a) |
$ | 58,279 | $ | 15,483 | $ | 15,584 | $ | 12,544 | $ | 15,127 | $ | 58,738 | ||||||||||||
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| Non-GAAP adjusted operating margin (1) |
22.5 | % | 21.8 | % | 21.9 | % | 18.9 | % | 20.4 | % | 20.8 | % | ||||||||||||
| GAAP net sales |
$ | 258,816 | $ | 71,109 | $ | 71,289 | $ | 66,492 | $ | 74,051 | $ | 282,941 | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Power Solutions |
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| GAAP income from operations |
$ | 24,060 | $ | 6,795 | $ | 6,819 | $ | 4,166 | $ | 5,660 | $ | 23,440 | ||||||||||||
| Restructuring and integration expense |
717 | — | — | — | — | — | ||||||||||||||||||
| Acquisition and transition expense |
596 | 100 | — | 400 | 664 | 1,164 | ||||||||||||||||||
| Amortization of intangibles |
12,322 | 2,725 | 2,725 | 2,725 | 2,724 | 10,899 | ||||||||||||||||||
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| Non-GAAP adjusted income from operations (a) |
$ | 37,695 | $ | 9,620 | $ | 9,544 | $ | 7,291 | $ | 9,048 | $ | 35,503 | ||||||||||||
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| Non-GAAP adjusted operating margin (1) |
20.9 | % | 19.9 | % | 19.6 | % | 16.3 | % | 20.3 | % | 19.0 | % | ||||||||||||
| GAAP net sales |
$ | 180,330 | $ | 48,424 | $ | 48,734 | $ | 44,824 | $ | 44,620 | $ | 186,602 | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Life Sciences |
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| GAAP income from operations |
$ | 9,840 | $ | 3,622 | $ | 3,798 | $ | 3,011 | $ | 2,840 | $ | 13,271 | ||||||||||||
| Restructuring and integration expense |
601 | — | — | — | — | — | ||||||||||||||||||
| Acquisition and transition expense |
— | — | — | — | 884 | 884 | ||||||||||||||||||
| Amortization of intangibles |
10,143 | 2,241 | 2,242 | 2,242 | 2,355 | 9,080 | ||||||||||||||||||
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| Non-GAAP adjusted income from operations (a) |
$ | 20,584 | $ | 5,863 | $ | 6,040 | $ | 5,253 | $ | 6,079 | $ | 23,235 | ||||||||||||
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| Non-GAAP adjusted operating margin (1) |
25.7 | % | 25.4 | % | 26.1 | % | 23.7 | % | 20.3 | % | 23.6 | % | ||||||||||||
| GAAP net sales |
$ | 80,057 | $ | 23,129 | $ | 23,114 | $ | 22,154 | $ | 29,932 | $ | 98,329 | ||||||||||||
| $000s | For the Year Ended 31-Dec, 2016 |
For the Quarters Ended 2017 | For the Year Ended 31-Dec, 2017 |
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| 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||
| Elimination |
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| GAAP net sales |
$ | (1,571 | ) | $ | (444 | ) | $ | (559 | ) | $ | (486 | ) | $ | (501 | ) | $ | (1,990 | ) | ||||||
| (1) | Non-GAAP adjusted operating margin = Non-GAAP adjusted income from operations / GAAP net sales |
| (a) | Non-GAAP Adjusted income from operations, represents GAAP income from operations, adjusted to exclude the effects of restructuring and integration expense, non-operational charges related to acquisition, divestiture and integration costs, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income from operations, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income from operations. |