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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