Item 5. Market for Registrant’s Common Equity
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Our common stock is traded on Nasdaq under the trading symbol “NNBR.” As of March 5, 2021, there were approximately 6,363 beneficial owners of record of our common stock, and the closing per share stock price as reported by Nasdaq was $6.73. The following graph and table compare the cumulative total shareholder return on our common stock with the cumulative total shareholder return of: (i) the S&P SmallCap 600 Index and (ii) a customized peer group, for the period from December 31, 2015, to December 31, 2020. The customized peer group consists of the following companies, which we believe are in similar lines of business: Altra Industrial Motion Corp., Ametek Inc., CIRCOR International, Inc., Colfax Corporation, Crane, Enerpac Tool Group Corp, Kaman Corporation, Park-Ohio Holdings Corp. and Worthington Industries, Inc. (collectively, the “Peer Group”). The following graph and table assume that a $100 investment was made at the close of trading on December 31, 2015, in our common stock and in the S&P SmallCap Index and the Peer Group. We cannot assure you that the performance of our common stock will continue in the future with the same or similar trend depicted on the graph.
Comparison of Five-Year Cumulative Total Return
NN, Inc., Peer Group, and S&P SmallCap 600 Index
(Performance results through December 31, 2020)
2015 2016 2017 2018 2019 2020
NN, Inc. $ 100.00 $ 121.67 $ 178.25 $ 44.17 $ 62.43 $ 44.34
Peer Group $ 100.00 $ 117.30 $ 148.11 $ 121.38 $ 173.16 $ 198.75
S&P SmallCap 600 $ 100.00 $ 126.56 $ 143.30 $ 131.15 $ 161.03 $ 179.21
Source: Value Line Publishing LLC
The declaration and payment of dividends are subject to the sole discretion of our Board of Directors and depend upon our profitability, financial condition, capital needs, credit agreement restrictions, future prospects, and other factors deemed relevant by the Board of Directors.
See Part III, Item 12 – “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” of this Annual Report for information required by Item 201 (d) of Regulation S-K.
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Item 6. Selected Financial Data
The following selected financial data has been derived from our audited financial statements. The selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7, of this Annual Report and the audited Consolidated Financial Statements, including the Notes thereto, in Part II, Item 8, of this Annual Report. Amounts reflect the reclassification of discontinued operations, as disclosed in Note 2 of the Notes to Consolidated Financial Statements included elsewhere in this report.
Year Ended December 31,
2020 2019 2018 2017 2016
Statement of Operations Data:
Net sales $ 427,534 $ 489,514 $ 524,194 $ 523,024 $ 506,270
Cost of sales 343,594 392,482 413,394 397,025 379,933
Goodwill impairment 92,942 — 182,542 — —
Income (loss) from operations (117,457) (17,593) (195,047) 18,995 25,113
Income (loss) from continuing operations (139,490) (30,749) (221,220) 95,949 39,997
Income (loss) from discontinued operations, net of tax 38,898 (15,992) (41,767) 66,288 (33,334)
Income (loss) from continuing operations per common share, basic $ (3.60) $ (0.75) $ (6.98) $ 3.50 $ 1.48
Income (loss) from continuing operations per common share, diluted $ (3.60) $ (0.75) $ (6.98) $ 3.46 $ 1.48
Cash dividends declared per common share $ — $ 0.21 $ 0.28 $ 0.28 $ 0.28
As of December 31,
2020 2019 2018 2017 2016
Balance Sheet Data:
Current assets $ 215,218 $ 302,980 $ 296,203 $ 475,986 $ 282,328
Current liabilities 103,231 139,481 145,030 108,421 140,241
Total assets 624,962 1,541,984 1,500,902 1,473,709 1,358,274
Long-term obligations 85,883 765,161 817,549 792,499 788,953
Convertible preferred stock 105,086 93,012 — — —
Stockholders’ equity 254,152 353,277 419,271 485,329 309,391
During 2020, we experienced a decline in sales volume as a result of lower demand during the COVID-19 pandemic. We executed strategic initiatives to improve liquidity, including selling our Life Sciences business and using the proceeds to pay down debt. We recognized goodwill impairment charges of $92.9 million in our Power Solutions business.
During 2019, we adopted new lease accounting guidance that requires operating leases to be included on the balance sheet. As a result of this new guidance, $45.5 million of operating lease right-of-use assets are included in total assets as of December 31, 2019. Additionally, we issued convertible preferred stock in December 2019 and used the net cash proceeds of $95.7 million to pay down debt and to pay debt amendment costs.
During 2018, we recognized goodwill impairment charges of $182.5 million and issued shares of common stock in a public offering.
During 2017, we completed the sale of our global precision bearing components business (the “PBC Business”) and recorded an after-tax gain on sale of $127.7 million.
The year ended December 31, 2016, was the first full year following the acquisition of our former Precision Engineered Products Group.