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NN NN , Inc. Reports Financial Results For Third Quarter 2021 November 4 , 2021 Third quarter net sales increased 3.1 % over prior year , financial results impacted by ongoing supply chain challenges CHARLOTTE , N.C. , Nov. 4 , 2021 / PRNewswire / -- NN , Inc. ( NASDAQ : NNBR ) , a diversified industrial company , today reported its financial results for the third quarter ended September 30 , 2021 . GAAP Results Net sales for the third quarter of 2021 increased $ 3.5 million , or 3.1 % , to $ 117.2 million compared to $ 113.8 million for the third quarter of 2020. The increase in sales from prior year is attributable to continued recovery from the COVID - 19 pandemic in Power Solutions , which was partially offset by the semiconductor chip shortage impact on Mobile Solutions sales . Third quarter Power Solutions sales increased 12.1 % and Mobile Solutions sales decreased 2.5 % compared to the prior year . Loss from operations for the third quarter of 2021 was $ 4.6 million compared to loss from operations of $ 1.5 million for the same period in 2020. The increase in loss from operations was primarily driven by the reinstatement of certain costs that had been temporarily suspended in the prior year , material and labor inflation , and operational inefficiencies driven by variability of customer production schedules and supply chain issues . Loss from operations for third quarter 2021 in the Mobile Solutions segment was $ 0.3 million compared to income from operations of $ 5.0 million for the same period in 2020. Income from operations for third quarter 2021 in the Power Solutions segment was $ 1.3 million compared to income from operations of $ 1.1 million for the same period in 2020 . Net loss for the third quarter of 2021 was $ 3.4 million compared to net income of $ 22.0 million for the same period in 2020. The reduction in net income for the third quarter of 2021 was driven by the income of discontinued operations of the former Life Sciences business in 2020 as well as the reinstatement of certain costs that were temporarily suspended in the prior year due to the COVID - 19 pandemic and increased income tax expense . The decrease in net income was partially offset by a favorable revaluation of warrants and reductions in interest expense resulting from termination of the interest rate swap in place in the prior year . Adjusted Results Adjusted loss from operations for the third quarter of 2021 was $ 0.2 million compared to an adjusted income from operations of $ 4.9 million for the same period in 2020. Adjusted EBITDA for the third quarter of 2021 was $ 9.7 million , or 8.3 % of sales , versus $ 14.7 million , or 12.9 % of sales , for the same period in 2020. Adjusted net income for the third quarter of 2021 was $ 0.5 million , or $ 0.01 per diluted share , compared to adjusted net income of $ 2.9 million , or $ 0.07 per diluted share , for the same period in 2020. Free cash flow for the third quarter of 2021 was a use of cash of $ 3.7 million compared to use of cash of $ 1.4 million for the same period in 2020 . Warren Veltman , President and Chief Executive Officer , said , " During the quarter we saw strong growth in Power Solutions , particularly in commercial and residential electrical end product which grew 25 % year over year . This strong growth was partially offset by the ongoing semiconductor chip shortage affecting customers in our Mobile Solutions business . In addition , broader supply chain constraints and material and other inflationary cost pressures have affected margins across our business segments . We have implemented , or are negotiating , price adjustments to recover these cost increases , and we believe that these increases coupled with expected operational improvements will enable us to achieve normalized margins as our operating environment stabilizes . " Mobile Solutions Net sales for the third quarter of 2021 were $ 68.6 million compared to $ 70.4 million in the third quarter of 2020 , a decrease of 2.5 % or $ 1.8 million . The decrease in sales was driven by the ongoing impact of the semiconductor shortage's affecting the automotive industry , resulting in production shutdowns at a number of our customers ' facilities during the quarter . Adjusted income from operations for the third quarter of 2021 was $ 1.0 million compared to $ 6.3 million of adjusted operating income in the third quarter of 2020. Adjusted operating income decreased as a result of lower sales volume , 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 input costs during the third quarter of 2021 . Power Solutions Net sales for the third quarter of 2021 were $ 48.7 million compared to $ 43.4 million in the third quarter of 2020 , an increase of 12.1 % or $ 5.3 million . The increase in sales was primarily driven by stronger demand within the end markets which were adversely impacted by the COVID - 19 pandemic in the prior year . Adjusted income from operations for the third quarter was $ 4.0 million compared to $ 5.4 million in the third quarter of 2020. The decrease in adjusted operating income was primarily due to higher sales volumes that were offset by an increase in input costs and 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 November 5 , 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 November 5 , 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 .