NN Inc (NNBR) Reports Q3 2023 Financial Results: Net Sales Down 2. ...
Net sales of $124.4 million, down 2.2% versus prior year period
Operating loss of $2.7 million and adjusted EBITDA of $14.5 million
Free cash flow of $11.3 million, up significantly versus prior period
Reduced leverage ratio to 3.37x, down sequentially from 3.87x
On November 6, 2023, NN Inc (NASDAQ:NNBR), a global diversified industrial company, reported its financial results for the third quarter ended September 30, 2023. The company's transformation plan has driven margin expansion, adjusted EBITDA growth, and strong free cash flow.
Financial and Strategic Highlights
Despite a 2.2% decrease in net sales compared to the same period last year, NN Inc (NASDAQ:NNBR) reported a significant increase in free cash flow, up to $11.3 million. The company also managed to reduce its leverage ratio to 3.37x, down sequentially from 3.87x, supported by improved adjusted EBITDA and cash flow performance.
Harold Bevis, President and Chief Executive Officer, commented,
In our first quarter with the newly supplemented management team, we delivered improved operating results and made significant progress against many of our strategic transformation initiatives."
Third Quarter GAAP Results
Net sales were $124.4 million, a decrease of 2.2% from the third quarter of 2022, primarily due to reduced volume. Loss from operations was $2.7 million compared to a loss from operations of $2.1 million in the third quarter of 2022. The increase in loss from operations was primarily driven by lower volumes and increased wages and stock compensation expense, partially offset by cost savings initiatives.
Adjusted Results and 2023 Outlook
Adjusted income from operations for the third quarter of 2023 was $3.7 million compared to adjusted income from operations of $2.5 million for the same period in 2022. Adjusted EBITDA was $14.5 million, or 11.6% of sales, compared to $11.8 million, or 9.3% of sales, for the same period in 2022.
Based on financial results for the year to date, as well as expectations for the remainder of the year, the Company has narrowed its ranged outlook for revenues and Adjusted EBITDA and raised the range of free cash flow expectations for the full year. Full-year 2023 financial outlook is as follows:
Revenue in the range of $487 million to $497 million
Adjusted EBITDA in the range of $40 million to $44 million
Free cash flow in the range of $10 million to $14 million
Michael Felcher, Senior Vice President and Chief Financial Officer, added,
We are tightening our sales and profitability guidance for the full-year 2023 to align with our year-to-date results and our expectations for consistent demand levels year-over-year."
Explore the complete 8-K earnings release (here) from NN Inc for further details.
This article first appeared on GuruFocus.
