Allianz Life confirms data breach affecting majority of 1.4M U.S. customers
Minneapolis-based Allianz Life, a subsidiary of Munich, Germany-based Allianz SE, said the data breach happened on July 16 when a 'malicious threat actor' gained access to a third-party, cloud-based system used by the company.
'The threat actor was able to obtain personally identifiable data related to the majority of Allianz Life's customers, financial professionals, and select Allianz Life employees, using a social engineering technique,' Allianz Life said in a statement. 'We took immediate action to contain and mitigate the issue and notified the FBI.'
The company said its own systems were not accessed, just the third-party's platform.
Allianz Life said its investigation is ongoing and that the company has begun reaching out to the impacted individuals. It said the incident involves only Allianz Life in the U.S., not other Allianz corporate entities.
In the case of data breaches, a 'social engineering technique' usually involves using trickery to gain access. Spokesman Brett Weinberg said he couldn't provide details because they are still investigating.
Allianz Life also reported the breach to multiple other authorities, including the Maine Attorney General's Office. A filing on the agency's website said the company discovered the breach the day after it happened, and that it will be offering those affected 24 months of identity theft protection and credit monitoring.
Allianz Life was known as North American Life and Casualty until it was acquired by German conglomerate Allianz SE in 1979 and changed its name to Allianz Life Insurance Company of North America. It has nearly 2,000 employees in U.S., with the majority working in Minnesota, according to its website.
It is one of five North American subsidiaries of the Munich-based global financial services group Allianz SE, which says it serves more than 125 million customers worldwide.
Steve Karnowski, The Associated Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
19 minutes ago
- CTV News
Victims of alleged prolific Vancouver scammer share stories, warnings online
Junki "Jay" Lee is seen in this profile photo from his Facebook page. ( Victims of a prolific alleged scammer based in Vancouver are connecting with each other online in hopes of making it harder for him to defraud others in the future. Over the last month, CTV News has been contacted by half a dozen people who say they have lost money to a man named Junki Lee, who typically goes by the name 'Jay.' CTV News has also seen social media posts from several others alleging that Lee had taken money from them through dishonest or fraudulent means, and has confirmed that the man in question has multiple past convictions for theft and fraud. 'He was super persistent' The most common complaint centres around Lee's listings on Facebook Marketplace. Multiple victims described having one or more small transactions with him go smoothly, only for Lee to demand pre-payment for a larger purchase, then fail to deliver the goods. Braden Ma first bought a pair of headphones from Lee in December 2023, and was pleased with the interaction, describing Lee as 'very friendly and professional.' Unusually, however, Lee kept corresponding with Ma after the transaction was complete. Even after Ma left him a rating, Lee continued to follow up, asking if Ma was satisfied with his purchase and if there was anything else he needed. 'He was super persistent and, initially, really quick to answer messages,' Ma said. 'He would answer almost immediately.' A messenger conversation Ma shared with CTV News shows Lee followed up multiple times in January 2024, then again in March of that year, when he restarted the chat with two messages: 'Hey Braden' and 'How are you?' Ma said he had thought about ignoring or blocking Lee because he didn't think he was in the market for anything else. But, he said, he didn't find Lee's messages suspicious. 'It seemed like, 'Oh, this is how he makes money,'' Ma said. 'He seemed like he's a sales person, just trying to, you know, get people, see if there's anything else they want.' Ma ended up re-engaging in the March conversation and asking Lee if he sold phones. The pair discussed options and eventually negotiated a deal for Ma to buy a Google Pixel 8 for $650. Lee described the transaction as a 'pre-order,' and said Ma would have to pay up front by e-transfer. Ma sent payment on March 20, and Lee told him it would take about two weeks for the phone to arrive. The pair continued conversing via WhatsApp, and chat logs show Ma attempting to schedule a meeting in early April to pick up the device. In his messages, Lee makes a variety of excuses, first claiming that he has been sick, then that he's been out of town, then that he has received the device, but it's the wrong colour. His messages become more sporadic, often asking Ma to set up a meeting, then failing to respond when Ma proposes a time and place. By late April, Lee's messages cease almost entirely, only to pick up again with a flurry of correspondence – but no phone or refund – in late May. Ma described the interaction as 'bizarre,' but said he continued to hold out hope that Lee would come through. 'I kind of just thought, 'Well, if this is a scam, surely I'd be blocked by now,'' Ma said. He did eventually get blocked, but not before he noticed a scathing review on Lee's Marketplace seller profile, which had been posted by one of the same people whose reviews Lee had previously shared with him as a testimonial. Ma said he contacted that person and found she had a similar story to his. From there, he was able to join a messaging group set up by some of Lee's other alleged victims. 'This is kind of a lot' One of the other people in the group is Dina Dimora, who met Lee on the dating app Hinge in September 2022 and says she ended up losing $4,000 to him. At the time, according to Dimora, Lee's profile mentioned he and his friends were looking for someone to join them on a trip to Mexico. Initially, she didn't take the offer seriously, but after they started messaging each other, things escalated quickly. Lee was up front about the fact that he had a girlfriend and wasn't looking for a romantic or sexual relationship, Dimora said, but he started calling and texting her daily, asking her about her life and her friends and inviting her to socialize with him and his friends. Dimora told CTV News she had some concerns about how 'pushy' Lee was being as he tried to convince her to go on the Mexico trip. At the same time, though, she felt like he seemed 'genuine,' and she said she got 'good vibes' from his friends as well. 'At the time, I was like, 'This is kind of a lot,' but obviously it worked because he ended up convincing me just by, like, asking me enough times,' Dimora said. She went on the Mexico trip and had a lot of fun. Junki "Jay" Lee in Mexico Junki "Jay" Lee is seen in this photo from the Mexico trip. (Dina Dimora) After the group got back to Vancouver, Lee continued calling and messaging regularly. He also started involving Dimora in online sports betting. He told her his Bet365 account had been banned, and asked her to make one and give him the login info. The pitch, according to Dimora, was that she would put money in the account for him to bet with, then he would split the winnings with her. While she never ended up making any money from the arrangement, she said she always got paid back. The payments never came from Lee directly, she said. Instead, they would come in the form of e-transfers from 'random' people she had never met. By this point, though she admits she saw some red flags in Lee's behaviour, Dimora trusted him. The Mexico trip had gone well, and he seemed to always pay her back, even if the manner in which it happened was strange. He also lived in a penthouse apartment, went out for 'fancy' dinners and wore designer clothes, so it didn't seem like he had any money problems, Dimora said. So, when Lee started talking about making money through online poker using the same arrangement the pair had set up for sports betting, Dimora figured she'd at least get her money back, and had the potential to earn a lot more. This time, she funded her account with $3,000. She would put up another $3,000 a short time later, after Lee told her he was worried she wouldn't be able to afford the Mexico group's next trip abroad – this time to Bali. Dimora said she could make the trip work, financially, but Lee insisted she give him the money, which he would use to gamble and win enough to pay for her share of the trip, to ensure she wouldn't back out at the last minute. Around this time, a friend of Dimora's told her Lee was a scammer and that she shouldn't give him any money. 'Obviously, at that point, my whole heart kind of sunk, because I was like, 'Well, it's too late. I already did,'' Dimora said. She started researching Lee and ended up connecting with the victims' messaging group. She also said she got $2,000 back from him – again sent via e-transfer by someone she didn't know – but he stopped communicating with her after that, leaving her down $4,000 total. The trip to Bali never materialized. Other victims' narratives Other members of the victims' messaging group shared their experiences in emails to CTV News, but did not respond to requests for follow-up interviews. Their narratives share some notable overlap with those of Ma and Dimora. One victim shared his WhatsApp chat log with Lee, showing more than 4,000 messages exchanged in a six-month period. At the start of the conversation, Lee messages almost daily, often inquiring about the victim's personal life and sharing details about his own. In the messages, Lee claims to have played poker 'somewhat full time' and been banned from casinos across Canada and in 'parts of Las Vegas.' He also claims to have won more than $1 million in B.C. and Alberta in a four-month span in 2019, before being banned. The B.C. Lottery Corporation told CTV News it cannot confirm casino gaming history for specific individuals, but said it does not ban people for being 'too good' or winning too much. Gamblers can be banned from casinos for association with gangs or organized crime, public safety risk, history of or suspected possession of proceeds of crime and other 'undesirable behaviour.' BCLC said more than 500 people were banned during its most recent fiscal year, which ended March 31. Lee's messages in the WhatsApp chat log become considerably less frequent once the victim has agreed to sell some espresso machines on Lee's behalf and sent payment for them. The victim said he is still owed approximately $3,100, and got connected with the victims' group after posting warnings about Lee on Facebook. Another victim shared a loan agreement signed by Lee, in which the alleged scammer puts up one of two Porsches as collateral in exchange for $23,800, to be paid back with $3,000 of interest less than two months later. The victim told CTV News his brother had previously bought $2,000 worth of tires from Lee and found him to be trustworthy. The supposed reason Lee needed the loan was to help a friend whose dog needed emergency surgery, according to the victim. Lee claimed that his own money was tied up in South Korea and it would take too long for the international wire transfer to come through. The loan was never repaid, and the victim said when he looked up the VINs of the two Porsches referenced in the loan agreement, he found they were 'riddled with payday loan liens' and useless as collateral. After learning more about Lee online, the victim confronted him, only to be 'gaslit and ghosted,' he said. 'People are still getting scammed' CTV News reached out to Lee through one of his Facebook listings to give him a chance to respond to the allegations against him. 'If you're who you say you are, then please feel free to email me,' the seller responded. 'I'm sure that you're resourceful enough to find it.' CTV News has emailed three addresses associated with Lee and called four phone numbers he has used in the past, but has not received any further correspondence from him. He has blocked the Facebook account initially used to contact him, but he continues to have active listings on Marketplace, and is labelled as 'highly rated' by the platform. Victims who spoke to CTV News expressed frustration with what they see as a prolific scammer who has so far been able to avoid legal consequences for his actions – though court records show he has been convicted of various offences over the years. Ma contacted the Vancouver Police Department to report his case, and said the officer he spoke to told him Lee is 'well-known' to police. Despite this, however, Ma said he never received any follow-up from the VPD about his case. His understanding is that because victims in his situation willingly sent e-transfers to Lee in exchange for goods that weren't delivered, there's not enough evidence to support a criminal charge against him. At most, the failed transaction could be resolved through a civil lawsuit. 'There's really nothing that police can do, and I think Jay also knows this,' Ma said. 'He's been doing it long enough that he knows what the limitations are and what he can actually get away with.' Asked to comment on the police file number Ma shared with CTV News, the VPD said the incident occurred in December 2023 but was not reported to police until October 2024. 'The complainant e-transferred money to an unknown person, who didn't deliver a product and then stopped responding,' VPD spokesperson Sgt. Steve Addison said in an email. 'The investigation did not result in an arrest or charges.' Addison did not say whether the VPD has any other open investigations involving Lee. Police 'cannot share specific information about people who are subject of investigations that have not resulted in criminal charges,' he said. 'Facebook Marketplace scams, and other online scams, are prolific,' Addison added. 'We strongly caution against transferring money online to someone you don't know, especially if you have not yet received the product you are purchasing.' Both Ma and Dimora expressed relief that their losses were not as severe as those of some other victims in the messaging group, as well as frustration that Lee has not faced the justice they believe he deserves. 'Jay, as far as I know, has never had a job in his life,' Dimora said. 'He basically is just, like, a career scammer. This has just always been what he does … I just hope that he can have some consequences for his actions.' 'At this point, everyone's just kind of stuck, and people are still getting scammed,' said Ma. Court records Searching 'Junki Lee' in B.C.'s online court records system brings up eight civil cases involving a person by that name. Four of them are in provincial small claims court, and all but one of them lists Junki Lee as the defendant. The most recent case was filed April 24 of this year in B.C. Supreme Court and concerns an application to enforce a Residential Tenancy Branch order directing Lee to vacate an apartment on Seymour Street by 1 p.m. on March 31. The address of the Seymour Street apartment is the same as one Lee provided to the victim who shared his WhatsApp chat log with CTV News. There has been no activity on the court file since the date it was opened. Searching for criminal records regarding 'Junki Lee' brings up 10 distinct files, all involving an accused born in 1991. CTV News has confirmed the man in the court records is the same one who is the subject of the victims' messaging group. Three of the files pertain to violation tickets for speeding, five involve charges of theft under $5,000, four involve charges of breaching probation, one involves a charge of breaching an undertaking, and one includes three counts of fraud under $5,000. The most recent file was heard in North Vancouver provincial court earlier this year. On Jan. 22, Lee pleaded guilty to a charge of theft under $5,000. The underlying offence occurred in West Vancouver in September 2023. Asked for details about the case, the West Vancouver Police Department told CTV News in an email that the file 'related to the theft of clothing and personal items from a major retailer at Park Royal Mall.' Lee was sentenced to a $500 fine and one year of probation. Since the guilty plea and sentencing, two additional charges of breach of probation have been added to the file. Charging documents provided by the court registry show Lee is accused of failing 'to report as directed' on April 25 and 'failing to complete 15 hours of community work service' as directed by July 22. Lee's next court appearance is scheduled for Aug. 20 in North Vancouver provincial court.
Globe and Mail
19 minutes ago
- Globe and Mail
NN, Inc. Reports Second Quarter 2025 Results
Improvement in Operating Income, Adjusted EBITDA, and New Business Program Company Reiterates Full Year 2025 Guidance CHARLOTTE, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR) ('NN' or the 'Company'), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today reported results for the second quarter ended June 30, 2025. Second Quarter Highlights: (results from continuing operations compared with prior year, where comparisons are noted) Net sales of $107.9 million, down 2.4% on a pro forma basis Gross margin of 16.9%, and adjusted gross margin of 19.5% Operating loss of $1.5 million and adjusted operating income of $4.9 million, an increase of $2.8 million Adjusted EBITDA of $13.2 million, with an adjusted EBITDA margin of 12.2% New business wins were $32.7 million in the first half of 2025, and NN has over 100 programs launching in 2025 that are expected to add greater than $45 million in future sales at full run-rate Harold Bevis, President and Chief Executive Officer, said, 'NN delivered a solid quarter for gross margins, operating income, adjusted operating income, and adjusted EBITDA. We are pleased with our reported results, new business acquisition, and new business launches. We leveraged the soft market environment to upsize our business development activities and investments. Our soft top-line centers around certain automotive customers. Conversely, we have been able to partially offset this weakness through the contribution of new business launches and precious metals pass-through pricing.' 'We have increased the size of our new business program in terms of prospecting, launching, and investing. We now have over 40 people in business development and launch, and we expect to launch over 100 new programs in 2025. We expect those launches will add over $45 million in future sales at run-rate. We plan to invest $18 to $20 million on capital projects in 2025. The twin goals of lowering our costs overall as a company while adding increased focus on growth is working and will be the main drivers of sustained top-line growth and increased profitability.' Mr. Bevis continued, 'Our current expectation is that some of our automotive markets may have similar soft patterns in the second half of 2025. In response, we have activated our own mitigation levers including tight cost controls and working capital actions. We are underway with tariff mitigation efforts with our customers and have positioned ourselves as a tariff problem solver.' 'We are using this opportunity to accelerate our transformation activities. We are actively investing in growth capex, and we have hired additional personnel to accelerate growth in our targeted areas. We recently announced the hiring of Tim Erro as NN's new Chief Commercial Officer and have also added new account managers in our targeted areas of medical, stampings, and electrical products. We now have a core team of electrical harness experts and are evaluating an organic entry into this new market, just as we have done to enter the medical market.' Mr. Bevis concluded, 'Our transformation plan is working and we have increased our efforts during this slow auto market. Lastly, we have fully kicked off an M&A program and are seeking targets that are consistent with our strategy and can help refinance our preferred stock.' Second Quarter Results Net sales were $107.9 million, a decrease of 12.3% compared to the second quarter of 2024 net sales of $123.0 million, primarily due to the rationalization of underperforming business and plants in 2024, the sale of our Lubbock operations in 2024, and lower automotive volumes. These decreases were partially offset by the contribution of 70 new business launches in the first half of 2025 and higher precious metals pass-through pricing. Loss from operations for the second quarter of 2025 was $1.5 million, an improvement of 28.6% compared to the second quarter of 2024 loss from operations of $2.1 million. Second Quarter Adjusted Results Pro forma net sales when adjusted for rationalized sales, currency changes, and the sale of Lubbock, were a decrease of 2.4% in the second quarter when compared to the second quarter of 2024. Adjusted income from operations for the second quarter of 2025 was $4.9 million compared to adjusted income from operations of $2.1 million for the same period in 2024. Adjusted EBITDA was $13.2 million, or 12.2% of sales, compared to $13.4 million, or 10.9% of sales, for the same period in 2024. Adjusted net income was $0.7 million, or $0.02 per diluted share, compared to adjusted net loss of $0.7 million, or $(0.02) per diluted share, for the same period in 2024. Free cash flow was a use of cash of $3.2 million compared to a use of cash of $1.3 million for the same period in 2024. Power Solutions Net sales for the second quarter of 2025 were $44.6 million compared to $50.2 million in the same period in 2024. The decrease is primarily due to the sale of our Lubbock operations, partially offset by higher precious metals pass-through pricing. Income from operations was $5.8 million compared to income from operations of $5.3 million for the same period in 2024. Adjusted income from operations was $8.4 million compared to $8.1 million in the second quarter of 2024. The increase in adjusted income from operations was primarily due to favorable product mix, and lower operating costs. Mobile Solutions Net sales for the second quarter of 2025 were $63.4 million compared to $72.9 million in the second quarter of 2024. The decrease in sales was primarily due to rationalized volume and lower automotive volume. Loss from operations was $1.1 million compared to loss from operations of $1.6 million for the same period in 2024. Adjusted income from operations was $2.3 million compared to adjusted loss from operations of $0.7 million in the second quarter of 2024. The increase in adjusted income from operations was primarily due to improved margin mix of sales and lower operating costs. 2025 Outlook NN is maintaining its full-year 2025 outlook. Net sales to range between $430 to $460 million Adjusted EBITDA to range between $53 to $63 million Free cash flow to range between $14 to $16 million; guidance assumes receipt of CARES Act refund in 2025 New business wins to range between $60 to $70 million Chris Bohnert, Senior Vice President and Chief Financial Officer, commented, 'Our second quarter results were largely in line with expectations. We are maintaining our current guidance and given the ongoing tariff-driven uncertainties and the anticipated downstream effects for our customers, we continue to direct expectations towards the lower end of our guided ranges. We note that the uncertainty of the current macroeconomic environment, particularly the potential for shifts in trade policy and interest rates could drive variability in our results, which may fall above or below our current forecasts. Irrespective of the near-term macroeconomic backdrop, we continue to pursue expense mitigation and operational efficiencies to partially offset potential impacts to end market demand. We are investing in commercial enhancements to accelerate future growth, and we remain optimistic about the strong pace of our transformation and growth opportunities.' Conference Call NN will discuss its results during its quarterly investor conference call on August 7, 2025, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, The conference call can also be accessed by dialing 1-888-999-3182 or 1-848-280-6330. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call until August 7, 2026. NN discloses in this press release the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The financial tables found later in this press release include a reconciliation of adjusted income (loss) from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow to the U.S. GAAP financial measures of income (loss) from operations, net income (loss), net income (loss) per diluted common share, and cash provided (used) by operating activities. About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the full year of fiscal 2025, the impact of, and our ability to execute, our corporate strategies and business initiatives and the potential impact tariffs, high interest rates, high metal costs and additional economic uncertainties may have on our financial statements and results of operations. Forward-looking statements generally will be accompanied by words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'growth,' 'guidance,' 'intend,' 'may,' 'will,' 'possible,' 'potential,' 'predict,' 'project', 'trajectory' or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management's control and that may cause actual results to be materially different from such statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the potential impacts of tariffs on the U.S. economy, the economy of other countries in which we conduct operations and our industry, as well as the potential implications and ramifications of tariffs on our business and the local and global supply chains supporting the same, and our ability to mitigate any adverse impacts of such; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; uncertainty of government policies and actions after recent U.S. elections in respect to global trade, tariffs and international trade agreements; and cyber liability or potential liability for breaches of our or our service providers' information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' included in the Company's filings made with the U.S. Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release and are based on information available to NN at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements. With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the 'Investors' section of the Company's web site, under the heading 'News & Events' and subheading 'Presentations.' NN, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2025 2024 2025 2024 Net sales $ 107,921 $ 122,992 $ 213,609 $ 244,190 Cost of sales (exclusive of depreciation and amortization shown separately below) 89,699 101,257 181,345 202,343 Selling, general, and administrative expense 12,095 13,511 23,265 26,859 Depreciation and amortization 8,918 11,761 17,692 24,308 Other operating income, net (1,327) (1,390) (2,440) (2,390) Loss from operations (1,464) (2,147) (6,253) (6,930) Interest expense 5,657 5,873 10,851 11,239 Loss on extinguishment of debt 3,007 — 3,007 — Other expense (income), net (619) (3,461) (2,788) 692 Loss before benefit (provision) for income taxes and share of net income from joint venture (9,509) (4,559) (17,323) (18,861) Benefit (provision) for income taxes (774) 215 (2,084) (291) Share of net income from joint venture 2,181 2,141 4,620 4,412 Net loss $ (8,102) $ (2,203) $ (14,787) $ (14,740) Other comprehensive income (loss): Foreign currency transaction gain (loss) 4,454 (3,387) 7,579 (5,733) Reclassification adjustments from the interest rate swap included in net loss, net of tax — (449) — (898) Other comprehensive income (loss) $ 4,454 $ (3,836) $ 7,579 $ (6,631) Comprehensive loss $ (3,648) $ (6,039) $ (7,208) $ (21,371) Basic and diluted net loss per share $ (0.26) $ (0.12) $ (0.48) $ (0.46) Shares used to calculate basic and diluted net loss per share 49,433 48,839 49,255 48,281 NN, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 9,542 $ 18,128 Accounts receivable, net 69,825 61,549 Inventories 62,793 61,877 Income tax receivable 13,084 12,634 Prepaid assets 4,602 2,855 Other current assets 12,133 10,519 Total current assets 171,979 167,562 Property, plant and equipment, net 164,248 162,034 Operating lease right-of-use assets 37,301 39,317 Intangible assets, net 37,599 44,410 Investment in joint venture 40,312 34,971 Deferred tax assets 1,329 1,329 Other non-current assets 7,992 7,270 Total assets $ 460,760 $ 456,893 Liabilities, Preferred Stock, and Stockholders' Equity Current liabilities: Accounts payable $ 45,793 $ 38,879 Accrued salaries, wages and benefits 14,444 19,915 Income tax payable 484 659 Current maturities of long-term debt 5,580 5,039 Current portion of operating lease liabilities 5,903 6,038 Other current liabilities 16,949 13,382 Total current liabilities 89,153 83,912 Deferred tax liabilities 4,896 4,969 Long-term debt, net of current maturities 154,047 143,591 Operating lease liabilities, net of current portion 39,710 42,291 Other non-current liabilities 10,896 14,111 Total liabilities 298,702 288,874 Commitments and contingencies Series D perpetual preferred stock 102,518 93,497 Stockholders' equity: Common stock 503 499 Additional paid-in capital 448,033 455,811 Accumulated deficit (348,408) (333,621) Accumulated other comprehensive loss (40,588) (48,167) Total stockholders' equity 59,540 74,522 Total liabilities, preferred stock, and stockholders' equity $ 460,760 $ 456,893 NN, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities Net loss $ (14,787) $ (14,740) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 17,692 24,308 Amortization of debt issuance costs and discount 1,024 1,106 Paid-in-kind interest 1,236 1,436 Loss on extinguishment of debt 3,007 — Total derivative gain, net of cash settlements (2,036) (1,068) Share of net income from joint venture (4,620) (4,412) Share-based compensation expense 1,640 1,536 Deferred income taxes (5) (479) Other (785) (758) Changes in operating assets and liabilities: Accounts receivable (6,568) (8,747) Inventories 1,044 (1,185) Other operating assets (3,318) (2,705) Income taxes receivable and payable, net (589) (1,326) Accounts payable 6,564 1,726 Other operating liabilities (3,540) 4,739 Net cash used in operating activities (4,041) (569) Cash flows from investing activities Acquisition of property, plant and equipment (7,630) (9,052) Proceeds from sale of property, plant, and equipment 451 237 Net cash used in investing activities (7,179) (8,815) Cash flows from financing activities Proceeds from asset backed credit facilities 21,000 25,000 Repayments of asset backed credit facilities (21,400) (25,000) Proceeds from term loans and other long-term debt 118,579 — Repayments of term loans and other long-term debt (115,356) (21,061) Cash paid for debt issuance costs (3,553) (646) Proceeds from sale-leaseback of equipment 946 8,324 Proceeds from sale-leaseback of land and buildings 4,300 16,863 Repayments of financing obligations (601) (211) Other (2,352) (1,700) Net cash provided by financing activities 1,563 1,569 Effect of exchange rate changes on cash flows 1,071 (342) Net change in cash and cash equivalents (8,586) (8,157) Cash and cash equivalents at beginning of year 18,128 21,903 Cash and cash equivalents at end of quarter $ 9,542 $ 13,746 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and Gross Margin Three Months Ended June 30, (in thousands) 2025 2024 Net sales $ 107,921 $ 122,992 Cost of sales (exclusive of depreciation and amortization) 89,699 101,257 GAAP gross profit 18,222 21,735 Personnel costs (1) 2,052 298 Facility costs (2) — 10 Other 781 778 Adjusted gross profit (a) $ 21,055 $ 22,821 Adjusted gross margin (3) 19.5 % 18.6 % (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted gross margin = Non-GAAP adjusted gross profit / GAAP net sales Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations (in thousands) Three Months Ended June 30, NN, Inc. Consolidated 2025 2024 GAAP loss from operations $ (1,464) $ (2,147) Professional fees 352 (12) Personnel costs (1) 2,614 826 Facility costs (2) — (51) Amortization of intangibles 3,405 3,456 Non-GAAP adjusted income from operations (b) $ 4,907 $ 2,072 Non-GAAP adjusted operating margin (3) 4.6 % 1.7 % GAAP net sales $ 107,921 $ 122,992 (in thousands) Three Months Ended June 30, Power Solutions 2025 2024 GAAP income from operations $ 5,782 $ 5,320 Personnel costs (1) 77 33 Facility costs (2) — 79 Amortization of intangibles 2,567 2,617 Non-GAAP adjusted income from operations (b) $ 8,426 $ 8,049 Non-GAAP adjusted operating margin (3) 18.9 % 16.0 % GAAP net sales $ 44,641 $ 50,151 (in thousands) Three Months Ended June 30, Mobile Solutions 2025 2024 GAAP loss from operations $ (1,110) $ (1,630) Personnel costs (1) 2,540 265 Facility costs (2) — (130) Amortization of intangibles 838 837 Non-GAAP adjusted income (loss) from operations (b) $ 2,268 $ (656) Share of net income from joint venture 2,181 2,141 Non-GAAP adjusted income from operations with JV (b) $ 4,449 $ 1,485 Non-GAAP adjusted operating margin (3) 7.0 % 2.0 % GAAP net sales $ 63,391 $ 72,855 Three Months Ended June 30, (in thousands) Elimination 2025 2024 GAAP net sales $ (111) $ (14) (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Three Months Ended June 30, (in thousands) 2025 2024 GAAP net loss $ (8,102) $ (2,203) Benefit (provision) for income taxes 774 (215) Interest expense 5,657 5,873 Loss on extinguishment of debt 3,007 — Change in fair value of preferred stock derivatives and warrants (273) (3,949) Depreciation and amortization 8,918 11,761 Professional fees 352 (12) Personnel costs (1) 2,614 826 Facility costs (2) — (51) Non-cash stock compensation 801 691 Non-cash foreign exchange (gain) loss on inter-company loans (569) 684 Non-GAAP adjusted EBITDA (c) $ 13,179 $ 13,405 Non-GAAP adjusted EBITDA margin (3) 12.2 % 10.9 % GAAP net sales $ 107,921 $ 122,992 (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share Three Months Ended June 30, (in thousands) 2025 2024 GAAP net loss $ (8,102) $ (2,203) Pre-tax loss on extinguishment of debt 3,007 — Pre-tax professional fees 352 — Pre-tax personnel costs 2,614 826 Pre-tax facility costs — (51) Pre-tax foreign exchange (gain) loss on inter-company loans (569) 684 Pre-tax change in fair value of preferred stock derivatives and warrants (273) (3,949) Pre-tax amortization of intangibles and deferred financing costs 3,717 4,018 Tax effect of adjustments reflected above (d) — (63) Non-GAAP adjusted net income (loss) (e) $ 746 $ (738) Three Months Ended June 30, (per diluted common share) 2025 2024 GAAP net loss per diluted common share $ (0.26) $ (0.12) Pre-tax loss on extinguishment of debt 0.06 — Pre-tax professional fees 0.01 — Pre-tax personnel costs 0.05 0.02 Pre-tax facility costs — — Pre-tax foreign exchange (gain) loss on inter-company loans (0.01) 0.01 Pre-tax change in fair value of preferred stock derivatives and warrants (0.01) (0.08) Pre-tax amortization of intangibles and deferred financing costs 0.08 0.08 Preferred stock cumulative dividends and deemed dividends 0.09 0.08 Non-GAAP adjusted net income (loss) per diluted common share (e) $ 0.02 $ (0.02) Shares used to calculate net earnings (loss) per share 49,433 48,839 The Company discloses in this presentation the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management's control and are subject to volatility. Other non-operating charges are excluded as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin. (b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, non-cash impairment charges, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations. (c) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value that was recognized in earnings, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and non-cash impairment charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. (d) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment. (e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, non-cash impairment charges, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, and preferred stock cumulative dividends and deemed dividends. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry.
National Post
19 minutes ago
- National Post
Five soldiers wounded as sergeant opens fire on U.S. army base in Georgia, officials say
Article content FORT STEWART, Ga. — A sergeant shot five soldiers Wednesday at one the country's largest Army bases before he was quickly tackled by other Fort Stewart troops, forcing a brief lockdown, officials said. Article content Few details were immediately available about what led to the gunfire, but officials said the shooter was Sgt. Quornelius Radford, 28, who used a personal handgun, not a military firearm. Article content Article content Article content Radford opened fire where he worked but officials wouldn't speculate about a motive, authorities said. Article content Article content The injured soldiers are stable and expected to recover, said Brig Gen. John Lubas. The soldiers who tackled Radford helped ensure his arrest, said Lubas, who commands the 3rd Infantry Division. Article content 'These soldiers, without a doubt, prevented further casualties or wounded,' he said. Article content This latest act of violence on a U.S. military installation _ sites that are supposed to be among the most secure in the country _ again raised concerns about safety and security within the armed forces' own walls. The Army said it's investigating the shooting. There were still many unanswered questions, including the scope of the injuries and the shooter's motive. Article content The injured were taken to the hospital and three underwent surgery, officials said. Article content A telephone number listed for Radford in public records rang unanswered. Article content Army records released to The Associated Press show that Radford enlisted in January 2018. He worked as a supply sergeant and has not been deployed. Article content Article content Radford faced an Aug. 20 hearing in Hinesville, a small town near the base, on accusations of driving under the influence and running a red light just after 1 a.m. on May 18, according to a citation and court filing. He was given a blood test and freed on a $1,818 bond, the documents said. Article content Article content Attorney Sneh Patel is representing Radford in the traffic case but not the shooting as of Wednesday, he said in an email. He cited attorney-client privilege in declining to comment about any his conversations with Radford. Article content Law enforcement was sent to the 2nd Armored Brigade Combat Team complex shortly before 11 a.m. The shooter was arrested at 11:35 a.m., officials said. Article content The lockdown lasted about an hour. After it was lifted, cars began to move through the normal security checkpoint at the fort's main gate. Article content The Army's 2nd Armored Brigade Combat Team was created in 2016 when the service added more than 200 vehicles to an infantry unit of roughly 4,200 soldiers. Also known as the 'Spartan Brigade,' the Army has called the unit its 'most modern land fighting force.'
