NN, Inc.

Good day and welcome to the NN, Inc. first quarter 2021 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mike Danahy, Director of Investor Relations and Financial Planning. Please go ahead, sir. Thank you, operator.

Good morning, everyone, and thanks for joining us. I'm Mike Danahy, Director of Investor Relations and Financial Planning. I'd like to thank you for attending today's business update. Our presenters this morning will be President and Chief Executive Officer Warren Beltman and Tom DeBile, Senior Vice President and Chief Financial Officer. Yesterday afternoon, we issued a press release announcing our financial results for the first quarter ended March 31st, 2021, as well as a supplemental presentation, which has been posted to the investor relations section of our website. If anyone needs a copy of the press release or supplemental presentation, you may also contact Lambert & Company at 616-258-5788. Before we begin, I'd ask that you take note of the cautionary language regarding forward-looking statements contained in today's press release, supplemental presentation, and in the risk factor section of the company's annual report on Form 10-K for the fiscal year ended December 31st, 2020, and when filed, the company's quarterly report on Form 10-Q for the three months ended March 31st, 2021. The same language applies to comments made on today's conference call including the Q&A session as well as the live broadcast. Our presentation today may contain forward-looking statements regarding sales, margins, foreign exchange rates, cash flow, tax rates, acquisitions, synergies, cash and cost savings, future operating results, performance of our worldwide markets, the impact of coronavirus COVID-19 pandemic on the company's financial condition, and other topics. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the company's control. The presentation also includes certain non-GAAP measures as defined by SEC rules. A reconciliation of non-GAAP measures is contained in the tables in the final section of the press release and the supplemental presentation. Reviewing the agenda for today's call, Warren will provide an overview of key highlights from the quarter, followed by a detailed financial results update from Tom. Warren will then discuss our segment results and in markets, as well as the outlook for the remainder of 2021. At the conclusion of the prepared remarks, there will be a Q&A session. At this time, I will turn the call over to Warren Veltman, President and CEO.

Thanks, Mike, and good morning, everyone. If you would turn to page five, we will review some of the highlights for the first quarter. The solid momentum we achieved in the second half of 2020 continued and in many ways even accelerated into the new year. With the tailwinds of economic recovery boosting our business and that of our customers, we are encouraged by the progress being made to overcome the impacts of the COVID-19 pandemic. We completed our refinancing during the quarter, which has substantially reduced our overall cost of capital and put NN on a stable long-term financial footing that will provide the flexibility we need to achieve our 2025 growth and margin targets. With the broad recovery, we achieved another quarter of strong growth in revenues, both sequentially and year over year. We saw this growth, especially in our automotive products during the quarter, which had a significant influence on our mobile solutions business, which grew even faster. The impact of our many cost improvement and operational initiatives undertaken in 2020 generated solid results in the quarter with year-over-year increases in both GAAP and adjusted financial results, along with a high conversion of EBITDA on the incremental sales. We also maintained our focus on working capital by increasing turns for the third sequential quarter, resulting in a rebound in free cash flow generation. Turning to page six, we have summarized some of the other key highlights for the quarter. As I mentioned, our business continued to rebound from the significant impact of the COVID-19 pandemic, as sales for the quarter were $126.8 million, up 9.1% from a year ago, and up 6.5% from last quarter. The improvement in sales volume, coupled with the operational improvements we have implemented, resulted in a significant In significant improvements in operating income and EBITDA, as well as earnings per share, reported operating income improved to $1 million versus a loss from operations of $103.9 million one year ago, though I'll note that the prior year results included a significant goodwill impairment. Non-GAAP-adjusted EBITDA was $16.9 million, or 13.3% of sales, Up from $10.1 million a year ago when adjusted EBITDA was 8.7% of sales. Gap EPS from continuing operations was a loss of $0.46 per share versus a $5.96 per share loss from a year ago. I would note that the loss from the current period was driven primarily by costs associated with a refinancing transaction and the elimination of our interest rate swap. Our adjusted net income from continuing operations was a profit of $0.05 per share versus a loss of $0.16 per share in the prior year. Now I'd like to turn it over to Tom DeBile so he can provide a more in-depth review of our financial performance for the quarter. Tom?