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NN NN , Inc. Reports Strong Sales Growth And Margin Improvement For Second Quarter 2021 August 5 , 2021 Second quarter net sales increased 56.8 % over prior year , driving improved profitability within the quarter CHARLOTTE , N.C. , Aug. 5 , 2021 / PRNewswire / -- NN , Inc. ( NASDAQ : NNBR ) , a diversified industrial company , today reported its financial results for the second quarter ended June 30 , 2021 . GAAP Results Net sales for the second quarter of 2021 increased $ 44.6 million , or 56.8 % , to $ 123.2 million , compared to $ 78.5 million for the second quarter of 2020 , led by strong sales growth across both segments due to higher demand within markets that were negatively impacted by the COVID - 19 pandemic in the prior year and new business in the general industrial market . Second quarter Mobile Solutions sales increased 80.0 % and Power Solutions sales increased 31.4 % compared to the prior year . Loss from operations for the second quarter of 2021 was $ 1.6 million , compared to loss from operations of $ 11.2 million for the same period in 2020. The reduction in loss from operations was primarily driven by an increase in sales volume and the ongoing impact of cost reduction initiatives , partially offset by the reinstatement of certain costs that were temporarily suspended in the prior year . Income from operations for second quarter 2021 in the Mobile Solutions segment was $ 2.5 million , compared to loss from operations of $ 4.6 million for the same period in 2020. Income from operations for second quarter 2021 in the Power Solutions segment was $ 2.9 million , compared to income from operations of $ 1.5 million for the same period in 2020 . Net loss for the second quarter of 2021 was $ 5.4 million , compared to net loss of $ 21.7 million for the same period in 2020. The reduction in net loss for the second quarter of 2021 was driven by the improvement in gross profit generated from incremental sales volume , as well as reductions in SG & A , interest expense , and overall loss from discontinued operations , which were partially offset by increases in other expenses due to foreign exchange effects on intercompany borrowings and litigation related expenses incurred during the second quarter . Adjusted Results Adjusted income from operations for the second quarter of 2021 was $ 3.2 million , compared to an adjusted loss from operations of $ 5.7 million for the same period in 2020. Adjusted EBITDA for the second quarter of 2021 was $ 13.4 million , or 10.9 % of sales , versus $ 4.9 million , or 6.2 % of sales , for the same period in 2020 . Adjusted net loss for the second quarter of 2021 was $ 0.2 million , or $ 0.00 per diluted share , compared to adjusted net loss of $ 10.2 million , or $ 0.24 per diluted share , for the same period in 2020. Free cash flow for the second quarter of 2021 was a use of cash of $ 7.5 million , compared to net cash inflow of $ 1.3 million for the same period in 2020. Free cash flow within the second quarter of 2021 was impacted by $ 9.2 million in payments related to the sale of Life Sciences . Warren Veltman , President and Chief Executive Officer , said , " NN's strong momentum continued in the second quarter , with strong top - line growth driven by customer demand across our two segments . Higher sales and associated increases in gross profit , coupled with the continuing impact of our cost reduction efforts , contributed to the improvement in our bottom line during the quarter . While we are continuing to see the impact of supply chain challenges on some of our customers due to the continuing impact of the COVID - 19 pandemic , we are optimistic on the long - term prospects for continued growth and profitability in our business . " Mobile Solutions Net sales for the second quarter of 2021 were $ 73.9 million , compared to $ 41.0 million in the second quarter of 2020 , an increase of 80.0 % or $ 32.8 million . The increase in sales was driven by higher demand within all markets that were negatively impacted by the COVID - 19 pandemic in the prior year , as well as new business in the general industrial market . Adjusted income from operations for the second quarter of 2021 was $ 3.3 million , compared to $ 3.4 million of adjusted operating loss in the second quarter of 2020. Adjusted operating income increased as a result of the higher sales as well as a build - up of inventory to combat supply interruptions that resulted in favorable overhead absorption in the quarter . This was partially offset by the reintroduction of costs that were suspended in the prior year due to the COVID - 19 pandemic , including certain benefits and overtime pay , as well as an increase in costs with the resumption of travel in the second quarter of 2021 . Power Solutions Net sales for the second quarter of 2021 were $ 49.3 million , compared to $ 37.5 million in the second quarter of 2020 , an increase of 31.4 % or $ 11.8 million . The increase in sales was driven primarily by demand within the end markets which were negatively impacted by the COVID - 19 pandemic in the prior year , as well as the impact of higher precious metals prices , which are passed through to customers . Adjusted income from operations for the second quarter was $ 5.7 million , compared to $ 4.7 million in the second quarter of 2020. The increase in adjusted operating income was due primarily to higher sales volumes partially offset by lower margins on products that use precious metals as well as the reintroduction of expenses and benefits that were temporarily suspended in the prior year due to the COVID - 19 pandemic . Conference Call NN will discuss its results during its quarterly investor conference call on August 6 , 2021 , at 9:00 a.m. ET . The call and supplemental presentation may be accessed via NN's website , www.nninc.com . The conference call can also be accessed by dialing 1-877-317-6789 or 1-412-317-6789 , Conference ID : 10155662. For those who are unavailable to listen to the live broadcast , a replay will be available shortly after the call until August 6 , 2022 . NN discloses in this press release the non - GAAP financial measures of adjusted income ( loss ) from operations , adjusted EBITDA , adjusted net income ( loss ) , adjusted net income ( loss ) per diluted share , and free cash flow . Each of these non - GAAP financial measures provides supplementary information about the impacts of restructuring and integration expense , acquisition and transition expenses , foreign exchange impacts on inter - company loans , amortization of intangibles and deferred financing costs , and other non - operating impacts on our business . The financial tables found later in this press release include a reconciliation of adjusted income ( loss ) from operations , adjusted operating margin , adjusted EBITDA , adjusted EBITDA margin , adjusted net income ( loss ) , adjusted net income ( loss ) per diluted share , and free cash flow to the U.S. GAAP financial measures of income ( loss ) from operations , net income ( loss ) , net income ( loss ) per diluted share , and cash provided ( used ) by operating activities . About NN , Inc. NN , Inc. , a diversified industrial company , combines advanced engineering and production capabilities with in - depth materials science expertise to design and manufacture high - precision components and assemblies for a variety of markets on a global basis . Headquartered in Charlotte , North Carolina , NN has 31 facilities