NNBR - Earnings call transcript Q2 2020

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Operator

Good day, and welcome to the NN, Inc.'s Second 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. Please go ahead.

Mark Schuermann

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

presenters the and Abernathy XXX-XXXX. Chief Chief Officer. If please President and Our contact a MacGregor DeByle, or Financial will copy the needs Warren presentation, of Tom President (XXX) Officer, release Veltman; and Vice Senior anyone morning this press at Executive be supplemental

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

will the will At time, Warren this for the measures results, Warren provide President measures of in over a Our will Company's should non-GAAP section business and and the supplemental Tom and certain and call on the pandemic control. by will the will which questions. Company's flow, our rules. non-GAAP and tables with CEO. review Presentation synergies, and many These impacts are worldwide the exchange the acquisitions, and is foreign statements tax are condition line press and operating rate, turn regarding Veltman, rates, COVID-XX cash of statements presentation include also topics. be markets, subject the other to uncertainties, such to defined financial risks and caution we sales, contain used presentation. various outside savings, release the reconciliation in SEC A the then performance of as cash contained open of future update of results, our today cost final I margins, forward-looking

Warren Veltman

quarter I conference our was our report would Thanks, everyone. Mark, the morning, and on that May, made that team morning, on progress, good in focus areas. against has call conducted our those that four This progress major like to we first on out indicated When objectives. we near-term

we before a for First, of and of a employees. goal operate a our locations criteria, work standardized our providing they approach environment and to admitted established manufacturing visitors our predetermined are one safe temperature facilities. have through checks, employees including where certain All offices

have thank facility diligent of or a leadership they demonstrated for customer area production requirements. a focus and In and of like safe have virus. employee COVID-XX would environment addition, areas as implemented employee situations Unfortunately, we in appropriate and been our provide commitment that A have to that discipline possible. consistent to the the our employees meeting the safe our disinfection have occurred, have including and those When I environment combat as shutdowns. communications had employees – on maintaining working best we tracing, and personal second was the our practices working area protocols, contracted providing the virus. protection to have employees standard we COVID-XX

second historical performance facility Although during our able strong with maintaining to requirements satisfy where consistent were quarter were record, customer we we required, quality volume shutdowns have instances a the and our reputation. while

sales our variable reduce continuing our costs volume flexing reduction fixed to expenses. with on focused are in and including SG&A overhead, consistent any we Third,

this additional decremental XX% the due sales loss expect $XX.X Our overall million Consequently, primarily each from approximately is QX on were QX to variable XXXX sales year-over-year $XXX.X reasonable levels COVID-XX a on $XX.X contribution of we sales down approximately sales pandemic. A the our of reduction. million estimate impact dollar. million would XXXX for from

been expenses QX from our adjusted and sacrificing better is to strategic and expenses. our XXXX, variance primarily $XX reflected can on expectation performance to only approximately EBITDA in process. from A for efforts areas Grant million XXXX auditor process. the the reported new EBITDA professional the SG&A from and plus selling, in favorable has relationship. costs during It is the true continues we $XX.X our team a a expenses example note decrease the employees results of million this to during year-ago. $XX.X Our that an a the second focus $XX.X costs experience manufacturing appointment and expect QX quarter. annual quality, have where GAAP that of independent a excellent as encouraging $X.X important our recent million of this $XX NN reported XXXX, Thornton The reputation SG&A and Grant million million, general in see result and our cost-cutting QX $X fees decreased of administrative without million with decreased same service. audit-related control reduction belt-tightening significant management we our million, XXXX as partners initiative result respectively will service reduce focus to to Thornton includes fixed of also million financial in period of is and $XX.X was It QX a associated our our

continue customer and of volume significant hourly a salaried while reduced at teammates work experienced working personnel layoffs our hours reduced result to Our have reductions, as wages.

second and commitment to goal gain-sharing that employees matching to NN remain the difficult I all discussed The fourth $XX.X that end as June the we time. generation XXX(k) have our last was appreciate addition, In liquidity primarily XX free to due from million made our contributions this the quarter our the during of in fortify of increased $X.X cash suspended. flow quarter. million $XX.X during at million We of to position. position QX cash

and in which capital, year-ago, credit working on a lenders Our performance improving previously volume, $XX.X our sales facility. primary our down provide million three under with maximizing which flexibility areas: discussed, liquidity our focus our was from to on lower I operating working was additional

reduced capital during reduction the Our quarter. the to has sales significant working second

many have been our liquidity of days able remain sales to a had payment period positions. own We desires XX.X to a customers reasonable their to at terms where day outstanding maintain at extend during

turns inventory will to sales time provide the to during Our significant in quarter his detail adapt deteriorated to lower more this on volumes. necessary the Tom due the presentation.

minimum As and to existing quarters our signed the it covenant. relates our it second waives we covenants which and with facility, an to the amendment for recently credit agreement, third credit a liquidity replaces leverage

amendment if in a an strategic reducing broad process the range necessary. of five goal of the is initiatives our continue needed strategic We over ongoing options provide value. operational, and evaluation process and of incorporated strategic expect and that enhancing this shareholder next months, The flexibility will us the financial to leverage initiatives with is

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

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

consolidated virus to associated Life Turning XX.X% were X, issues for to delay orthopedic with joint Sciences due elective quarter to the up primarily Page second XX.X% primarily impact versus prior those on that large due to On COVID-XX the group the replacement. surgeries, in year-to-date. the pandemic. for year related Sales decreased the and coronavirus our you of total revenue basis, a had can sales our see the especially

same June and These impacted and shutdowns due of customer be Mobile OEM significant Our lower for company-wide issues respectively for to facility XX.X%. the XX.X% to were to months XX due groups down Power number ended Mexico. in and caused sales negatively XX.X% components demand automotive six the shutdowns by electrical have

For Mobile was Sciences sales was the XX.X%. six-month up Life XX.X%, prior Solutions year period, Power XX% up up were and Solutions by

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

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

Thomas DeByle

a financial couple includes to Thank you, and A to non-GAAP years. expenses include and X, GAAP, items adjusted which Slide number quarter Warren. second related on the mentioned the flex non-GAAP very The special the activities, his made few the costs cost-cutting the total the and sales It to in turn were of past in shows basis. related able items had we The remarks. impact slide. activities shortfall, negative a our points items over are of the one-time unusual integration Despite difficult had integration sales non-op on opening year-over-year on due we controlling that business to really results. excluding Please to pandemic expenses special our acquisitions results Warren our environment. shortfall a the were

able despite that special sales on the were on we margins hit a shortfall, non-GAAP basis. point excluding a this double-digit non-GAAP to total adjusted reported items EBITDA slide and second The is

items Slide to provides non-GAAP adjusted which detailed non-GAAP. GAAP, Let's special reported X, bridge go between and total excluding a

$X.X asset we a bridge. quarter There the QX upper focus affected million, our costs the attention items and $X.X three severance expense. impacted on items sold of and Let's of tax special for Fairfield XXXX, as million in second portion of agreements. million move Two $X.X the were tax facility, write-down

$X.X First, quarters the second, the a tax goodwill special the divested the write-down, Brazil million. year million, prior severance and of CARES non-deductible of impact carryback million rate NOL the Act annual impact write-down provisions favorable the by provided unfavorable with precision tax impacted of quarter, businesses tax four VAT $X.X $X.X million were In of million. of items, of $X.X and $X.X affected there of the asset million $X.X consisting prior

adjustments lower intercompany section relating bridge. $X.X year-over-year. FX The capacity of year-over-year. $X.X and professional our and affected capabilities Tax affected turn intangibles the of amortization $X.X Now million fees, to transformation year-over-year, reduced was let's by integration million million tax non-operational and down attention development, the were down and to on

turns million. Slide increased $XXX.X turns of the X.Xx $XXX.X the X. year year. quarter X.X turns compared to sales turns inventory Net end second prior capital at related The $XX.X the in payable accounts the prior year, in with X.X. X.X in to days decrease due by X.X days, decrease prior turns Working a the capital DSO was and million Turning working decreased pandemic. by sharp versus versus to capital decreased million working the were the fall of by

few borrowing the in Cash improve by turn million. was capital a of revolver. million of end to million We $XXX.X the the $XXX.X debt turns $XX.X expect quarters. Slide as increased working our second versus prior to $XX.X decrease the volumes increase Please at in as year, Net on we quarter the X. normalized million next

credit end waived requires our cash covenants amended and daily amendment amendment review and we cash balance Warren to pandemic continue QX had allows recover measured at the Leverage a quarter, to for mentioned. a for process. the minimum as facility balance. the and strategic time due The the our QX, minimum businesses us During month

versus our implement us as million cash prior free show improvement. cash a was in have will is flow compared significant the the concern our in in shows a prior the $X.X Year-to-date our to cash cash good in of million XXXX the of environment. Although the flow second million $X.X free XX-Q improve cost we million $X.X a quarter for to a liquidity made the reductions Free uncertainty flow cash and progress Slide significant the going a use quarter. use $XX.X again quarter, year, economic improvement. during year, XX given

in As by of mentioned provided versus turn $XX or $XX.X the cash to With the sales Slide expenditures about expenditures is for XXXX sales quarter on or prior $XX.X anticipates X.X% million range quarter the our X.X% prior million the the million X.X% Year-to-date net year. to shows to to of back Warren. the the it compared slide, the were I'll million The fifth be second capital COVID. that, of spending spending, capital year. in $X.X amortization in million sales X.X% trends. XX company $XX bottom of operating depreciation call consecutive Cash and response activities. capital of or capital for of were in positive or

Warren Veltman

Thanks, Tom.

starting additional for Page with our presented of information on Sciences have XX. each groups operating We Life

As I XX% has compared XXXX. QX been Sciences' Life when impacted orthopedic revenue reduction previously, by to elective surgeries in indicated

elective in will levels. of from of reduction, to inventory react to sometime to at be $XXX second XXXX. XX.X% our our end loss help a at our sales. focus the sales implemented volumes XX% currently second the adjusted result, on offset spite significant A reduce the XX, contribution to to we and of respectively. customers of surgeries that quarter. in the flat as EBITDA remainder until our continue when $XXX XXXX impact is the were As results QX normalization million down quarter have XXXX volumes efforts EBITDA backlog We reduced to not compared and to to from demand expected surgery our elective reduction slightly sales March also of million Cost in reaction to reduction a and occur XXXX expect seen reported reducing In the

they hit and saw over improvement an focus costs. in and XX% year. on of rebounded hardest a offset The included wages lost and the pandemic manufacturers XX.X% by of sales, Despite flex prior SG&A continue EBITDA GAAP margin shutdown the May a year and XX% contribution America respectively. greater remainder sales, OEM April with business reduced Page in along is travel The The sales cost indirect X% North summary productivity in to approximately most group sales of million QX was from benefits will positive and was during were May, the reduction and Mobile in be levels. Mobile million this levels. the adjusted as reduced coronavirus on causing June related variable to We Solutions $XX reduction by as $X significantly over of control than over Solutions group posted Europe and in XX.

greater last As strengthen volumes we perform volumes, discussed below to will at America QX for at our capacity expect running approximately expect European operations further the we COVID. of of due quarter, reduced XXXX. currently China XX% be Brazilian rate. the normalized We expect for of to experience our will than will that remainder remain XXXX beginning and North that and operations QX will our the balance Overall, volumes sales we

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

programs. closure quarter on XX. Solutions by sales sales for Power's Power XX.X% levels down actual $X.X Mexico the customer primarily caused Power sales. and four year for weeks of XX% approvals were decreased due or delayed and year-over-year Both second Page including lower of in sales to XX.X% million and reduction adjusted million reported facilities or of to prior certain six due of defense $X.X EBITDA from on to in COVID-XX, aerospace to sales. EBITDA Moving customer of

months During employee and margin shutdowns QX, caused two first production absenteeism to the unfavorable due variable experienced our expectations versus internal Power of performance COVID. by

Our during XXXX. XXXX that variable performance the continue and trend improved balance we margin through to June of expect

On experienced side, defense electrical stabilize we the demand backlog expect stability those QX at for slightly that an will sales due in and aerospace QX sales business and improved of our components. QX level improves in the to below and

my the Obviously, summarizes business working improve focused the impacted power capital which due be be COVID of other with was sales XXXX, reduction. QX to with both cost QX, levels was QX, Power the pandemic of that As uncertainty the a our three sales of approximately on surrounding each our QX remainder and company-wide QX slightly will we groups, commentary through expected by which management by COVID each team management been midpoint over of have and Safety significantly for on between and flex in COVID our our continue effect groups to customer groups. too remain and dampening causing on expect Based view to the have productivity, and that XXXX. impacted around groups, to our for of XX three will improvement and associated objectives the Mobile our will the Page sales pandemic. importance. obvious remainder satisfying operating employees goals remained significant of of we requirements that the

current our fluctuations sales and more these to variable our turn and focus Inventory based will our to our expenses. and expenditures reducing are Key reduce a with will second we flow fixed finished capital as is in of costs have major maintaining goods inventory in our uncertain We work-in-process believe on liquidity metrics. priority. tenants cash the working continue times major opportunities reduce be and half SG&A adjust Improving objective our and that to we capital.

Although manufacturing could a due in a liquidity absorbed the is reduction result earnings increased goods in lower WIP believe we tradeoff and under positive. for finished burden, to

questions. comply in the in and with we half prepared turn our That will order Lastly, to our plan remarks, call requirement now our cash back to concludes operator credit I the manage will to position second to for our facility. the liquidity continue

Operator

from will Please take Instructions] you. Lake Capital our ahead. first We Brown Thank from Markets. [Operator go Street question Rob

Robert Brown

morning. Good

Warren Veltman

Rob. morning, Good

Robert Brown

on First question sense of I'm this where and sort at day-to-day? in great, you're Power Just but – point, the is those what sort to of sort just in get some and sense – a Mobile you color in How but outlook. the there? daily, kind are seeing a visibility some visibility, gave you're Is the of of of confident in around not which terms markets of particular sure at markets? you visibility is those want pretty how is in good or it better getting the of

Warren Veltman

Yes. saw from June. as couple greater In relates was as to we Rob, a cases, an it of uptick in volumes gave saw June I than example, in sales that what some significant case, May. a the guidance in XX% happened we what Mobile the in period actually

So in right it's the direction. trend going from a standpoint,

our view it least to schedules. their side, to of it to Mobile tend have of As I as the our that reliability as relates pretty OEMs gave to a relates the outlook, Normally, on production the strong at it structure that. relates

six-week short-term window, So comfortable least four the in forecast. the we feel a at in with to relatively

of that established pair planned past, and up to it firm that to is a to forecast from forecasted IHS outlook. leases from try we're IHS to window. If either automotive then or customer it about in within is what relates data from also as predicting in talked XX-week factors. our a a are in order we're based seeing match we seeing the One – the relates we get as environment the work relates probably – get a overall our balance I customer macroeconomic As what we and with use what it sales we the also couple we firm that off as sales. that And

of types side, on markets overall As of and housing to construction the methodologies basis it demand then with our using try in standpoint. understand an and forecast out customer an the some Power on the and expectation use going same relates from what's and those to we economy balance our within

Robert Brown

That's Okay. profile, here or margin which and on Do margin then see how you stabilize you of great of job to color. maintaining growth, gross maybe grow the sort your and good the the to did profile, but you given pretty revenue And on of grow on cost Thank do a you. that? is gross directionally efforts of sort that ability expect just reduction depends costs? what's your margin, kind

Warren Veltman

Yes.

As we think I expand an the as over and – is as see over QX QX. that QX indicated, sales what the I in improvement we'll expand margins

taking our As we see when comments, an of falling of us, I administrative XX% of the the into margin. carryover thumb dollar, the for that teams associate rule incremental into very a business, out And and the to the that in my an we sales of start expenses of early our gross have future. majority selling, indicated costs been excellent successful, general company has expect that done we fixed fact and to job given of we kind –

a as April, the on place cuts we the wage that we've on we put that hope in timeframe. our just in had some but of is in we the Now reduction the economy, recovery I hope see think that, have wages, April a caution firmer to restore footing in more once

than sooner do to that preference later. Our be rather would

So – that. little we our sales, a pull offset would contribution margin that from is back that view on you tell incremental XX% a will But would the impact the I margin that will just bit.

Robert Brown

Okay. I'll Great. you. Thank over. it turn

Operator

you. Thank

our question from Daniel Securities. take now will Moore from We next CJS

Daniel Moore

Thanks morning. for questions. good Tom, taking Warren,

Warren Veltman

morning. Good

Thomas DeByle

Yes. Good morning.

Daniel Moore

Is in first – it surgeries. Life at as to process of correctly, the going get QX relates guess, on on and thought next to I be QX color Great this opportunity But understood year that hear I the the you'd point? to back expect be to Sciences elective pre-COVID what's first levels. to opportunity

Warren Veltman

volumes with elective that's at when Yes. to thereafter. on rebound kind shortly typically would And we our customers, our – relationship levels way that the of crop it XXXX our we and the look up surgeries based essentially

may one resurgence it we So that volumes. to in lag to have Sciences the business quarter as the a relates Life

Daniel Moore

in longer-term stage segment? as this XXXX That's growth as well rate then helpful. And be we beyond, a expected from for look that and would market as for perspective, what the the at at NN

Warren Veltman

Yes.

for is Our going volumes. to a how some will return longer-term fill. at of liquidity in this customers inventory some our What a a were of new business second looking the timing they of dealing our deferring would conserve some just seen it implementation we've looking programs, to us. which introduce XXXX that the is always recovery relates their XXXX of little process, They're programs the to half CapEx, with their view as new the is in at pandemic positive order potentially be are of types bit COVID to for the which soften and

So and as full we a a XXXX, thereafter. we rate look in at XXXX, return we see or were where above X% growth that annualized volumes X% then to as probably

Daniel Moore

then And given But can where that the ability Helpful. to itself. the three the on want on push your conduct comment today? strategic to you last ability months over review it. process and stands COVID-XX Got you don't

Warren Veltman

it's and of like too a will have been trying Yes. process a the I COVID going on get Obviously, this. to a challenge certainly to component process. been. tell you the where that into work I'm big financial just markets with not deep that's the

extensive a it's an that process. So reasons been of challenge been it's and such that's one the

Daniel Moore

Understood.

that’s from follow-up. I jump it Thank I'll back with any think, me. you.

Warren Veltman

you. Thank

Operator

Barger next Capital take Steve Instructions] will KeyBanc We ahead. Markets. [Operator our go Please from now question from

Stephen Barger

Good guys. morning,

Warren Veltman

Steve. morning, Good

Thomas DeByle

Good morning, Steve.

Stephen Barger

cash free flow positive see year-to-date. to Good

to you the in XQ. can talk in terms generation cash segments cash burn of Just or

were half? business able just what quarter the do you trough and manage broadly, you in for back expect us for Just to sense to give a how the the

Warren Veltman

it. you a generating EBITDA think groups each been has the basis, associated with look of one segment-by-segment our a take that at On and CapEx then I the

our our it And that and the see did flow. tell could that down team results with would that important each And components you manage the as quarter case, are can in think job they second groups cash that in most expenditures the is CapEx be historical and managing working I I runway. good capital our a from you from our corporate the capital. individual significantly done we've So had

view towards we spending and of we've So team. a has bias we of our type the seen on is From groups quarter do extreme can good some of maintenance a of inventory last CapEx that flex orders each our the our And only indicated of standpoint, that job better working that to the job that one reason been is on had turns done think an focus for the And that. the We've a inventory capital I that part had. side. inability down. the go we that

Some raw ordering order material cases, to and XX-week those mill that of locations. lead the directly overseas in orders from from the have associated We're XX with we comes certain them. times

was when us react. from standpoint, difficult COVID for to it dip volumes did as quickly So a they as the

than I the other the the we've goals talk and is think the the fact components. the WIP reduction which timing there and quarter I very And two half same And inventory groups. of of levels actually Sciences in a targeted the bit that higher the on true that of fourth carry to a in especially finished side, from tends reduction are significant when goods a in So Life about little significant the groups. have standpoint. true our I we focused second Power that's on Mobile all particular the know year, groups inventory the

to that's as that work So an going well. area we're on

future, That's look into we still it. going a we're As going out the to big to CapEx. control the piece be of

be. rebounds, demands for this it group, of we're very XX%. as working from tight tell put in gave for the what of in variable it to against a about capital But range, as a rule is would you working costs. we XX% to on sales on rule amount. business thumb it back I capital XX% working XX% cost annualized will the cautious us us – to place you, pretty standpoint relates as As each relates a to thing I and an it's look dollars The sales dollar capital at between thumb

the to go us The So we're that Obviously, that on at based terms. time, prevent payment from we're still expect forecast a lot we I that with going pressure to is sales to realized expectation the is cash see really this customers be and generate think point through we only going don't to working always I and it's to standpoint, the from our be could sure some there's to make in thing that going thing we be we're the there. hard positive capital that hard. a to certainly volumes, that think But that continue. very the year, we're flow. given our as going working have would manage maintaining

Stephen Barger

Right.

year would great accomplishment. to think I cash be this be able to flow a generate free

business crisis the any the finding whether can you can the cash looked you situation, that in working it's you're you've processes make the structural a at are of managing forward? flow other areas of in As improve improvements, or how going where business profile cap

Warren Veltman

more Yes. statement company and getting is generalized go a that. This that a continuous to I'm businesses on would yes. And say, going every are three and around back better to improvement day. I built

believing you philosophy built So company core the improve, moment goes you stop really the against around. that that can it the

couple need and other yet. of what we're is from sales example, not an a our drivers objectives. getting an consolidation of be, are efficiency for to labor a The So for to yes, as standpoint. us of we've improvement. where And we need targeted we there are opportunities And do opportunities a our can and indirect just standpoint. Mobile that from they there still From and those achieve significant percentage Power know an there's fixed SG&A groups, our cost our costs, standpoint, started some our group, that view established on

working to can hard efficiencies are delivered think and as IT gain of efficiency groups the some the we try very there it's information Our we and teams improve operating well. our that to

Stephen Barger

Or manufacturing? how this at new pandemic is Or willingness things, seeing Life to if the Sciences, you business? slowing for opportunities shifting And to Just it creeps affected accelerated changed and customer outsourced has in are down? has engage all?

Warren Veltman

tell really customers initially, stop and relates kind I let's as – Yes, the consolidation would base of to right supply you of full now. it went our like, it outsourcing, was

industry, our going new need on Let's inventory our to set based on understand norm. understand what's this let's where we levels in

outsourcing was it understand can for So had base. that us continued bit opportunity and more to a year. suspension And of a period next as activity consolidation to our an of pick the we there the we continue, short react the now of little best about expect probably time. everybody will But to are speed at of reengaging will and that talking type of once a up customers and situation beginning that today, with supply

Stephen Barger

Okay. revenue segment how you in can is would the some think flat XQ, sequentially margin you Sciences you increase? just specifically? drive about Can Life in that free improve flow cash decremental And for If margin?

Warren Veltman

flow that and trying it to of year default our as we're cash to containment number focus the for would – top the free I the by now. improvement sale flow like of – cash expectation what percentage tell a don't point by balance full that cash improvement, the you, from target drive tell business. the division. flow that I I'm have actually you, is, right not drive of my relates off free would of through the targeting I said, we will margin is a head do we with each do I of

Stephen Barger

Yes.

Warren Veltman

top I my number exact of head. the the off know don't

Stephen Barger

Okay.

Warren Veltman

that? do going Tom I'm have that any you second. Tom, comment just a to on additional ask

Thomas DeByle

No, I don't.

the don't I top of have you points, off that either. hit think I the Warren. head my number

Warren Veltman

Okay.

Stephen Barger

XQ, on And somewhere standpoint? sequential actions, can your to of back XQ cost that revenue and you XQ? Mobile, far margin saw first between positive the that get towards basis? on bridge a on you what given from specifically, is is increase in so consolidated kind if level get XQ too you Or a margin of revenue a back operating a Can

Warren Veltman

remember, to first quarter trying I'm Mobile... revenue for

Stephen Barger

from Oh, Mobile, $XXX million. yes.

Warren Veltman

question Mobile. your thought was I

Stephen Barger

Mobile and then consolidated.

yes, Mobile first. talk So let's

First was $XX revenue quarter million.

Warren Veltman

Yes.

for be the a what going use balance decremental. level the we're second little of to in improvement be year. the margin? I with the of that And guidance at that obviously, of million, to that that bit we're continued we this quarter, can we we're the sales XX% we're standpoint, sales of because given look the you overall I provided a be probably of second shy expecting below back talk about first year. standpoint. from that stretch the did expecting estimates get So going half an some And if the a you half $XX.X and of of if year, But yes, from to think what in over

have a think probably estimate to be. good where we going You we're of

Stephen Barger

Okay.

Thanks. think it that's I me. for

Warren Veltman

you. Thank

Operator

concludes Mr. any this today's the question-and-answer for turn or That session. Warren additional I'd closing over to you at to remarks. time, conference back Veltman, like

Warren Veltman

accomplishments. Thank is whole significant liquidity today. did overall that to Yes. environment and today. participating you. positive free think My quarter a view team that the that. I'd cash like in first job position I for for second thank our to And this in everybody we were. to the over our were, for the the teams just are the maintain flow to appreciate great shareholders listening I'd quarter thank and participation the of some like analysts of I where And have

have a that, for day. So time. thank and your Appreciate good you

Operator

today's concludes your conference participation. you for call. This Thank

now may You disconnect.

NN (NNBR) 7 Aug 202020 Q2 Earnings call transcript