NNBR - Earnings call transcript Q1 2020

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Operator

Good day, and welcome to the NN, Inc.

First Quarter 2020 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Mark Schuermann. ahead. go Please

Mark Schuermann

XXXX Good I'm operator. Relations. and for first thanks like Thank Schuermann, morning, Vice us. quarter NN's to Mark welcome Investor conference President, joining call. to you, you everyone, earnings Treasurer I'd and

be this President Executive Vice Officer, and presenters Financial Chief Officer. and Our President DeByle, Veltman; Tom Chief will morning Senior and Warren

XXX-XXXX. If contact Abernathy please the supplemental anyone needs presentation, a copy at of (XXX) the press release or MacGregor

forward-looking statements the on Before as Risk I'd well December including Same regarding the XX, that on quarterly session XXXX. cautionary report supplemental take release, for you Factors today's the the applies Q&A live company's the of in we annual ended Form note contained the XX, filed, Form comments presentation year to conference fiscal report March XXXX, language and begin, ask call, ended the in in press made company's webcast. today's the on language and when for XX-K as XX-Q X section months

statements caution risks condition the be on coronavirus company's of the topics. presentation margins, markets, flow, foreign control. statements synergies, uncertainties, the results, and exchange with which pandemic and regarding impacts many future other used are These and subject performance company's worldwide today various the sales, financial of cash operating should of cash rate, to acquisitions, our tax forward-looking rates, will Our are cost and savings, contain outside

the the such of in measures section certain measures also the will presentation. by and rules. in supplemental press reconciliation non-GAAP include defined tables release the non-GAAP Presentation SEC A is contained as of final

and business the open a line will results, for Tom and update will and provide up review questions. we Warren then our

I over Veltman, turn will and to At CEO. Warren call time, this President the

Warren Veltman

and good Mark, morning, Thanks, everyone.

been but threat world our last China, time, businesses outside of coronavirus meet have COVID-XX and since to our As substantial of of aware, NN's call in to generation. challenges ago. months today, I'm proud that greatest has been all conference the not our that segments adversely At significantly say one had pandemic. the X there the the impacted risen changes of geographies operating everyone our by have employees is impacted

have employees a required combat changes all. working of environment the to have spread the challenges workplace and and to -- coronavirus Our safe numerous adapted maintained for

team, a requirements is customers' As that the adhering the standard NN continue to trademark facilities. all of they meet volume our high-quality while to

So over before collective my on prepared my I start their express you. X quarter, remarks thanks the I efforts to for the last Thank want months. sincere

the of on X. overview an quarter first with Page start We'll

uncertainty react reduction took viewed health by threat economic we the and substantial and volumes. in action a caused sales our potentially of this prolonged immediate a to employees COVID-XX, Given we our would to safety and to what be

two, three, employees areas: our focused Our safe; plan major our flex keep costs; in is and our costs one, customer requirements; four, reduce fortify liquidity. fixed variable X meet and

accomplish this cost perishable containment standpoint, include have variable costs. labor and indirect Unfortunately, are costs direct employees objective, tooling, with focused a both primarily we sales direct and reduced. on customer to From dramatically our reductions. material volumes would groups volume commensurate These have costs and our outsource-related been operating where furloughed reducing

of some manufacturing presentation. and those expenses. taken will reduce fixed also a review later action SG&A have I We to the summary in actions

the in $XX.X that United $XX.X XX, million held we Fortifying million credit facility, and under the XXXX, first $XX is we revolving end prior To in cash our importance. supreme down to our the of including States. drew of at quarter, liquidity million end March and

the We in of balance review the will are as we liquidity possible later other presentation. much taking also actions as retain during XXXX to

quarter. performance financial to Moving on the first in

foreign Our X.X% million from after of prior the or exchange consideration $XX.X quarter, down year sales million $XXX were differences. for the

launches down million, orthopedic $X the Our ago. Life $XX market customer of end Sciences within decrease reduction X.X% timing reduced of to the within markets million, the a demand driven due million pandemic. lower sales pandemic, and impact from COVID-XX $X.X of demand of year-over-year automotive million, were a This product the during a the the global result primarily sales year or Mobile group March. by resulting is reported COVID-XX Solutions of from especially $XX.X

comparison $XX.X Power Our sales $XX.X of group million a of reported Solutions in million to ago. year sales

Adjusted reported EBITDA impairment the sales, offset quarter reductions. ago and was primarily cost $XX.X due down adjusted from by was $XX.X for EBITDA, goodwill QX, million excluding first a was decline the the fixed Our year and EBITDA SG&A in slightly to year-over-year million.

Solutions group $XX.X the goodwill, Sciences EBITDA, reported each Solutions Life Our and of $X.X excluding quarter. Mobile reported Power for million, while million

our million of $XXX adversely accounting of associated $X.XX as the we of Solutions loss The year the a impacted the also reported $XXX.X share Life rationale a goodwill loss a during of million loss action operating first our resulted group. XXX% share $XXX.X versus This $X.XX per primarily write-off goodwill the associated in later per goodwill of quarter. is impairment Tom due with presentation. of of to write-off and quarter of EPS the Power write-off the discuss Sciences million will reported with a This ago. in goodwill

million, first $XX.X the a quarter use Our of from free a cash first improvement was million $X flow an quarter the ago. year for of

quarter expected payables capital XX, XXXX. December we of million in reductions lower improved expenditures improvement an versus XXXX, to we due better management. cost last have is and position our a benefit quarter, in working first at The remaining the discussed December maintained to we implemented, having due aged As trade capital $X

strategic a current a options announced is leverage number economic value. process strategic of goal that the previously and be potential enhancing shareholder broad it assets and and despite us clear we continues This with financial and a is for operational, of environment, the review range evaluate of substantial reducing will to ongoing, buyers to company where there the businesses. Lastly, high-quality

good a continue comments we review and regarding this This value. our of extent great shareholder company structure our have really before, flexibility good allows as moreover, we strategic to And said enhance process. and our have and we the disclosure businesses. As for is look organizational

appreciate we your patience initiative. with as to this pursue we always, alternatives continue associated As important and understanding

Circling back our the Page for COVID-XX to safe of a employees. X summarizes work some environment regarding action plan, overall our maintaining

to measures communication enhance taken and surrounding have and education We employee actions. the preventative coronavirus employee-driven

appropriate also personnel response officials protocol cleaning with on-site screening responsive We a visitors. recommendations have equipment personal and temperature and CDC coordinated We're on workplace protective standard local and conducting disinfection. and of based performing daily are frequent and issuing health

summary and costs Page we to our a reduce improve further of efforts On have X, presented liquidity.

addition goal flow by in achieved. annually. $XX announced improving has of All of That these previously our actions cash million are goal been to

Given liquidity. required the feel that uncertainty costs immediate additional preserve regarding our action the was reduce and COVID crisis, we to

implemented of Other programs, employee streamlining other noncritical reductions labor our million reductions in reductions These reductions and benefits, reductions for X% sale of suspension We team $XX indirect of exceed further XX%. salary and cost reductions and have include cost the suspension including annually. to employee executive that temporary SG&A to of management for the all members matching personnel travel gainsharing XXX(k) of include significant already and temporary XX% XX% cost costs. new

an capital our million to only CapEx enhancement authorizing relates going with extreme maintenance forward. we it expectation bias reduced the have below items to towards expenditure liquidity As measures, $XX

new We The to in deductions Act. back and provisions with depreciation also ability interest XXXX taxes paid to under expense 'XX, increase those expect to will back in to XXXX/'XX to benefit CARES along allow from and losses XXXX carry certain carryback the provisions years. us recover

implementing and that 'XX, actions until provide XXXX we pre-COVID plan. the over portion business of employer cash will including from in be deferring actions tax cost FICA addition, $XX In process or in we savings of million have the the our should

basis, On revenue prior by decreased issues our year X.X% versus coronavirus first pandemic. primarily associated Turning consolidated with which to total Slide a X, due details the to quarter segment. the

were impacted operations the Mobile for and quarter. America Our the Europe most of were in operations throughout part impacted quarter, Mobile Solutions the Life the latter and North first of Sciences and China in adversely Solutions

to turn over Now, it DeByle. to I'd Tom like

more quarter. performance So, Tom our can of provide a for the Tom? review financial in-depth

Tom DeByle

basis. expenses; our Slide a to Thanks, into Warren. first X and excluding on quarter adjustments categories: non-GAAP items, category the and integration includes captured the the non-GAAP, to category break our special made which results adjusted company due number X, few We onetime unusual over one the second past expenses is has of which Please items, years. activities a is integration total transition and turn historically are special GAAP, and down acquisitions

A this couple slide. points of on

XX of driven goodwill less profit us goodwill and triggering by to market equity. of of the impairment of First, decline capitalization as in was write-off by market of net analysis March The in that This our noncash the that roughly was was our $XXX.X write-off GAAP event operating value of shareholders' a perform caused book than million. charge a goodwill. XX% was our capitalization a for a impacted decline a

production or $XX.X down million was and This is that $X.X Historical the X.X%. year-over-year variable of about down XX% on are decrease sales million circled Second, the results $X.X $XXX,XXX managing were margins only shows through excluding side operating cuts XX%. special Operating volumes levels. on cost non-GAAP, page. expected flexing be down. to on Therefore, to items, right would profit business a profit the million approximately lower

few adjusted I between Slide moving are special X, non on would like to to non-GAAP, go granularity page total GAAP, that with more and provides There reported bridge a excluding Let's a this which parts items GAAP. discuss.

the million let's write-down of focus The obligation on to $X.X attention building. our major the upper for elimination tax-affected portion lease a primarily First, the corporate headquarters portion related of asset the of bridge. of the

of write-off debt costs impairment a primarily the the $XXX.X million to In for the as items impacting item charge impairment was large special the The tax the there million unamortized toll the legislation. the $X.X prior tax Act to to foreign the relates a goodwill discrete the XXXX. noncash of results. consisted related of of charge impact impact well and for of discrete year, million tax-affected repatriation of earnings the of rate mentioned, of $X item related through previously As CARES the tax of issuance goodwill million, as $XX.X

was the our turn of down $X.X the foreign nonoperational were QX capabilities and lower section intangibles and to fees to and integration amortization million up tax-affected transformation year-over-year. and exchange $X.X Tax-affected In intercompany capacity down of relating year-over-year. million, million let's development, was attention on XXXX, $X.X the adjustments bridge. the Now, professional

years. in. Working Slide was were the in $XXX.X XX. Turning of the $XX.X the million. as turns the inventory at prior a less the decreased accounts by compared in both both payable million in X.X DSO were capital turns X.X brought year, first same decrease year days. Net prior to Inventory versus years, improved $XXX.X of quarter end was turns and with capital million working

versus million prior Please X.Xx Slide at $XX.X XX. a credit the the Net EBITDA decrease by of million. debt debt was turn $XXX.X a the million of year. first X.XXx in measured fund end $XXX the was prior versus to to quarter the in agreement year,

on During we revolver the liquidity drew million quarter, our purposes. $XX for

Our Due calendar year discussions efforts with been end of process. 'XX for our economic strategic credit down from at related review banks. are constructive we of X.XXx agreement the leverage supportive the the ratio the to COVID-XX, the Xx have in to as our quarter quarters of continue first remaining our environment steps 'XX. to uncertain we They

concern. Although and the tangible first XX-Q and show our of taken quarter uncertainty improve will implement us given reductions, environment, we have going the -- -- our economic steps improve steps tangible the for as to cost a liquidity

noting a the quarter. shows compared use quarter the our million XX worth is fourth quarter prior It cash use cash the first with the free provided of significant of the XXXX during activities represents flow that cash quarter year, for of XXXX the by $XX.X a in shown on first operating Slide million positive $X of net flow showed cash consecutive as of Free cash graph. improvement. a

with Slide our approximately Cash prior spending, amortization capital capital depreciation expenditures million year. and the $XX.X first trends. XX quarter million in $XX.X were summarizes compared the in

from forecast $XX from was percentage prior company's down COVID-XX. cut of million capital million X.X%. has For spending year's The capital the of X.X% sales, $XX the its to company in response to spending quarter,

call turn With to the back that, I'll Warren.

Warren Veltman

Tom. Thanks,

spite presented to sales. well evidenced operating of have We each information of of the impairment, continues expansion operating the EBITDA a our year-over-year to of percentage control process starting Life Sciences up groups, Sciences sales group EBITDA, labor improvement a with perform additional and reduction, on by over as due and XX. was million In SG&A activities. ago goodwill excluding profit, cost and as for indirect $X.X the Life our EBITDA continuous adjusted year our efforts Page

increase given million elective QX we the coronavirus significant is are reductions a million, by demand orthopedic surgeries of pandemic. this of from backlog the at XXXX. $XXX $XX Our caused in regarding spite increase, cautious In future

Our on reduced control, given quarter is focus in customer will cost demand and be significantly QX we flex and QX productivity first expect levels. from

Solutions on XX. included Mobile The summary is Page business

in have quarter and I group quarter, first to indicated, XX.X% As the from during declined operational during due in QX hit with -- ago. reduction XXXX were Solutions sharp million volume hardest by sales $X.X was XXXX million down occurred $XX pandemic million $XX reduction from one the Mobile first year EBITDA inefficiencies as declined mid-March. coronavirus the the EBITDA in sales experienced the that to to

running, started time. will couple recovery of mid-March a due over be normalized that return and reduced We expect of Europe demand in mid-May. If OEM OEMs production will months up to and and consumer of below models will the that to to next period normal extend remain production, volumes likely shutdowns substantially will quarters X to that to China, returns. North take America capacity the assuming for up Once

Our focus Solutions Mobile and will be working capital CapEx flex management containment, on productivity. in

sales Power's sales X.X% on to due impacted negatively primarily quarter decreased moving approvals on EBITDA, first facility the relatively Power and uncertainty caused delayed Page closure. $X.X was sales to goodwill resilient with by coronavirus to COVID-XX excluding loss million customer Power due to sales is the lower due a impairment, associated and Moving production has to mix. Solutions Reported effect. XX. been year-over-year

will impacted Solutions have than that less Sciences Mobile effect by full quarter sales that QX in as be negatively our be expect Life the coronavirus will likely of a QX, but impact, will We experienced groups. and

productivity, on other reductions. management and our capital flex focused with groups, As cost team Power be management will working

Normally, year. by next and the I would conclude my providing commentary quarter guidance for

and the we operate the will better not guidance to as and withdrew like in to industries earnings aware, plan for view due said, insight do provide we portion any a the how recover. we sales of and COVID-XX remaining which how you on year guidance of I'd the until impact, reinstate view world some year. are However, additional That to we our the have economies

to is those are Life over months group performed. dependent seen Given as just products, now its orthopedic in surgeries elective our replacements. joint massive concentration the reduction have a Sciences and on for surgeries, Elective X such starting be last

QX group the first a have expect over with result, recurring next will and X through our a As we that Life recovery quarters quarter Sciences from after reduced sales levels the of XXXX.

of for We that Solutions longer group our expect the Mobile recovery will be Sciences. Life than

of and We production XX X ramp production expect automotive ultimate that American OEMs demand determinant with will being European to consumer gradually over the North weeks, overall levels. the next up their

until pre-COVID significant recent levels of unemployment happen that coupled and uncertainty not economic price half we the second automobile, an purchase Given of regarding the return with believe a to the growth, XXXX. levels extreme of will production

not in the QX We will the on growth and As either the Life lie improvement confidence. reductions somewhere severe economic and be Life volume previously, will as middle in recovery path believe be Mobile Sciences more as Power dependent the as as path believe sharp consumer QX, as and long Mobile, or will stated recovery likely Solutions' Solutions I the or be path. I as will not

to intended illustrative many do and crisis are on COVID-XX market As how my comments surrounding trends and represent as there be are revenue. will and estimates guidance not only purposes impact for -- the a revenue demand reminder, illustrative uncertainties

the concludes call remarks, I turn operator prepared back our the questions. now for and to That will

Operator

go Moore we'll our CJS Dan to first And Instructions] with [Operator from question Securities.

Lee Jagoda

this Dan Lee actually is morning. Jagoda This for

various a So you segments. just did outlook for the outlining job the good pretty --

at think and look should EBITDA, cost-cutting we already taken, about costs of you've As perhaps measures these outlook either flat I sort for EBITDA you've out or of the all how growing levels given the your segments? taken EBITDA,

Warren Veltman

Yes.

think, not sorry. -- I Dan, Dan

I up. indicated, it our guidance think for dependent time. be how And on is provide I tough on is to that, as given clearly volume EBITDA ends sales the point this going in at where it's us uncertain really to

thumb about fluctuate, when that fall remarks prepared it we that at Tom see the I and continue encourage relates in variable XX% use sales focused we more typically, to directionally to point to go where going through at going sales in sales expect would we're time. a to overall to on providing guidance of continue the indicated that rule of to his this as margin the that's we a think XX% forward. change. And So you

our consistent change of businesses volume. an think sales the have couple months I teams the extremely job last over our with done good in flexing the of

Lee Jagoda

give I the kind that view then current forward? of to of placement? took level Okay. late of any out, of us expense just a switching give and in private And on Can liquidity. last impacts maturities that your going us and kind year liquidity, a interest debt of the remind paper that you then you us refresher piece of how needs liquidity guess, And both near-term

Warren Veltman

I'll the -- we Yes. preferred in quarter. stock the about I'll talk issued let that fourth

One relates that pursued is today? address create do that's epic. didn't Tom, to demands the The that our was one on our it that instrument gave of of you some to and liquidity us our or where of from the a some cash is -- associated liquidity we cash the interest issuance comments want reasons benefits standpoint. liquidity that that And with was primary flexibility any of as position. it it position

Tom DeByle

Sure.

payments. every million $X.X have we principal So quarter of due about

$XX your roughly question? Did so Warren that's much we that's cash. that overseas we right we XX, mentioned including at answer speak. have today, that sheet And cash had had balance million the show how of on cash And ongoing, as now, and we March

Lee Jagoda

does. Yes, it

Operator

KeyBanc Barger Capital next We'll go our question from Markets. to with Steve

Steve Barger

decline of that think a a in we down China North think probably plants XQ. not mobile to auto the shut the revenue about in XX% should good are ramp. extreme? has revenue magnitude some trying quarter, about degree, that but slow enough Is to restarted for half to going down We be how know Is proxy decline? for American to I'm

Warren Veltman

give the we Solutions the The to our trend here's to in performance group okay? Steve, quarter. in I'll -- in data Mobile it as that first the you had comparison points that April, relates

did Mobile what at comparison in in Power quarter; volumes, XX%; about XX% and first was quarter about to operating first Life in were we the XX%. So April at sales was at of

indication sort you So so that of what gives seen of we've some far.

Steve Barger

Right. helpful. No, that's really

So $XX pick million, cap? number, what if revenue million loss revenue is or would whatever, $XX down sequentially, of a percentage $XX it Could in million XQ from be released $XX million? that be working

Warren Veltman

Yes. of somewhere do to of working when XX% at the that, we It's we on in capital. We be We sales -- XX% XX%. between around look modeling should able working and change. our up pick typically --

Steve Barger

Got it.

what think cap XQ out And working burn net in at what happens or standpoint, a if cash and cost level? So generate revenue XQ? in you you standpoint a action versus you from do

Warren Veltman

we've XX% we some think of okay, capital after I modeled imagine. consideration that different lot our from burn, scenarios And basis, company-wide there of of before certainly, of the down as an get. working consideration if might -- is pickups would we're even and a out Well, cash you overall a plan on

Steve Barger

there size way frame Is burn of to any cash in the the XQ?

Warren Veltman

in case quarter That's next the end XX% that quarters a for very the our tell, our the year. up slight will an the fourth comfortable us. look down a We're hold that would scenario liquidity with of definitely not at through issue X we I over liquidity. recovery Yes. with

Steve Barger

on obligations continue in you through your product other year? can the you interest shipping and see Meaning meeting based what

Warren Veltman

Correct.

Steve Barger

but impairments value no last cost accountant, don't thought future me I for understand of relate falling cash I'm so on is this, my flows the that typically the of the One goodwill. below sure I'm to question carrying impairment.

of does in the just the of impairment can that? inherently Life you through profitability So Or a Sciences talk suggest segment? mechanics lack that

Tom DeByle

that take Warren. one, I'll Sure.

XX. capitalization. year-end, at to let's at to market related like $X March say, mean went measurement it's price $X.XX above I So time, our our all our share from, down

capitalization with market went shareholder of value was and the our reconciliation going down clearly we function below it is that down do so have book of result XX% that just the -- capitalization a a our of our And to that. we you our or accepting. have on market have equity, roughly flows cash our And had an $XXX market off businesses -- is do have we'd -- discounted we to to goodwill. of a out not premium such just -- that extreme million, you the write otherwise, And

So it, is. agree don't it's it an but machination. what is I accounting with it

Operator

Lake go [Operator to Capital Instructions] with We'll Markets. Brown next Street Rob

Rob Brown

a environment right Sciences your through visibility take start now, it particular. sort do business but flow when it's in to happen? does How procedures business, things how of Life much to long improve? you tough Obviously, as to have start into

Warren Veltman

to would that tell contact we for it, through let's constant Rob, on the customers end been side Life it the demand have end I expectations we of with Sciences the as -- are our their Well, call of you in this summer. relates -- through

as of our to data it level's Our we've amount their that of we're gave done and at is will of weeks, that right the trying given up statistics the April, -- there the is when to been have they elective April, any last over expectation have still believe And been elective They and hasn't that gauge means been X so that that And that just hasn't -- fact surgeries customers significant held X well dial been now quickly. looked and where there's what will back. an happen business at, most that product. -- some that the in clearly inventory reasonably the taking view recovery there surgeries that major right? of to you related reasonably I

our occurs. volume So for be to they hand a that situation customers when the want where inventory be in have don't left in surge to ready of a on none

good So a probably reasonably point position I they're in think in of that that time. at this

to Life we in early summer. more the than May, back future the in the place they'll why see business, the July late for then we talk make customers trying because the how the And potential schedules their they June, are time Sciences our see and right have about sure planning they they're frame where inventory now occurs. that's for it's once volume, now So hole recovery in dial when it

I are we're a seeing, and more we're wish having conversations those our I on but the So with customers you definitive that, what could response give that's today.

Operator

go Kwon Wellfleet next We'll to Young with Credit Partners.

Young Kwon

I I little seems discussed little bit, maybe covenant. far getting detail this a you going know conversations revolver you're but you was a give the are that with as the more how if hoping as against it close like lenders. pretty Certainly,

detail if maybe could far whatnot? So more that getting just you as any waiver as share on a topic and

Warren Veltman

Tom, that you one? want to take

Tom DeByle

Sure.

supportive So shared gone actions. together. Lead we've forth, productive. And our forecast to them, delever We've to through discussions all and alternatives. our strategic balance Bank, We've going all through a of We've sheet gone just They just that of cost want down to Truist. going road through get as what it's that with And very we're reduction active before. it's the and process we're to back see with been We through the Left want of and they're be our us discussed doing. we're weeks -- liquidity. in the we're working we're few

Young Kwon

Okay.

really strategic this about seems those discussions, It alternative still to As a pursue is those we think these opportunities. time like are active? tough like,

should that? So about think we how

Tom DeByle

fantastic assets. They they're after have positive businesses. flow. And businesses. good sought absolutely start I'll free all great we off X generated businesses, Well, I They're with that. cash mean have

we want you comment everyone Warren -- didn't valuable. comment... Warren, it. as on do let and to I'll great on said -- add that But mean, comment I anymore are to have that any remember So want should just really he he businesses

Warren Veltman

Yes.

is difficult we're we that consider on to to point a where in people, given but spite had debt overriding think think where have in the at, would opportunities. we're that of amount that markets And is to of markets of in that time are to this the that it's way evaluate had -- trying we we've and creative talking be and process. at I I a good continuing what are today, the success that debt the and -- to question spite answer and success with certainly, be reasonable the

So will what's is expect that to answer And today still your in at continue this will point. in it on question, going the with we on -- we continue process spite ongoing. that it markets of

Young Kwon

the about in because fourth quarter, commentary payables capital still little was back quarter that that weaker expected were flow being cash Did cash yet some was and through I actually remember you there like Also to you Okay. just negative. flow bit ahead guys working going a XQ, that to your result? on first benefit flow

Warren Veltman

I Yes. mean go -- oh, ahead, Tom...

Tom DeByle

Go ahead, go Warren. ahead. Please,

Warren Veltman

we we're fourth accounts we were did much not -- would was in a quarter the $XX.X the in $X This position, we're same a it we expected you first other, of we in of indicate year, better the of in each have. ago, in payable we In can't that to When not we our and a million. at -- quarter, look from there's Sorry, use unfortunately, And cash performance first million. our see we're transition had a the the benefit that smooth trying so and room, that quarter. this as we that use can. as believe year we

So situation we're fact shape clearly that. on in than some we to ago resulted in Certainly, cut in done us has things better met up and of were But today we've the a actually liquidity year being improve $XX.X in to the the versus year and that we contributed were business a million a that XX/XX addition, other our in payables we've at that fact costs our ago. better the expectations.

quarter we that that free to the the guidance at it pretty flow, to as the provided. cash range the If generation, you look go back in provided for of middle much first we're cash we relates

Young Kwon

more for just And me. one Okay. Great.

be cost there cash savings you the going there a On activities, number? And component to is to number that provide? is a can

Warren Veltman

The million cash. That's itemized of the all out $XX reduction. the cost cash we've is that savings

Young Kwon

to... that a cash that is component you're have guess, I to in No, outlay cash there going

Warren Veltman

those? accomplish To

Young Kwon

Yes.

Warren Veltman

some associated which earlier, our on $X.X severance be after that termination cash of lease was that full we the $XX And cash floors the the on amounts. for a that we the office. that number was that X Charlotte have outlay cash minor could the already we actually termination The terminate fee almost There have. million with of in currently had to Tom provided lease That's is million sheet Charlotte. our paying -- biggest balance

doing little So accomplishing there's very cost the accomplish we or our friction to to -- that reduction costs item order related was in hurdle those. of that some today, that efforts. things we're biggest had The

Operator

And no at questions. are this time, there further

Warren Veltman

over Okay. to everybody for thank to shout time Once of and their employees support their be the I'd not for team. this everything but And really organization whole for Proud thank your out they've and me, X last to you, thank by you group. for our done again, morning. a that management of big And NN. again, just a only like the appreciated months the time today. leader that

Operator

you participation. conference. conclude does This We thank for your today's

NN (NNBR) 9 May 202020 Q1 Earnings call transcript