NN Inc. (NASDAQ:NNBR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 09:00 am ET

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NN Inc. (NASDAQ:NNBR) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question will be from Rob Brown with Lake Street Capital Markets.

Analyst
Rob Brown

Good morning.

Executive
Warren Veltman

Good morning.

Analyst
Rob Brown

First, on the Life Sciences business, I think you talked about growth rates in 2020 in the high-single digits. Could you give us a little more color there? And is that a slowing from your prior thinking? Or is that sort of in line with your expectation?

Executive
Warren Veltman

I think that's in line with our expectation. One of the things that we've been expecting due to the significant number of new product introductions in that business was that, that would -- that pace of the new product introductions would slow down starting in the first quarter or the first half of next year. And we're seeing that in our business. So the growth -- this single-digit growth rate from 5% to 9% is in line with our expectations.

Analyst
Rob Brown

Okay. Good. Thank you. And then in the Mobile business, I guess I just wanted to clarify your thinking there. How do you see that at this point with this market cycle? Is it down again in 2020? And I think you said new programs maybe offset some of that, but help me understand, I guess, why that business should not decline in 2020 again.

Executive
Warren Veltman

Yeah. We don't expect a decline in 2020 primarily due to some new program launches that, frankly, we anticipated in 2019 that were delayed. We've also had -- we've seen a delay in some of the volumes due to the tariff environment. And we've been working with our customers to make sure that some of the capacity that we have in place today is more fully utilized in 2020.

Analyst
Rob Brown

Okay. Okay. Great. And then the last question, I guess, on the financing discussion. You talked about -- you said that you're sort of resetting your thinking on -- what are sort of the alternatives you're looking at? And what's the time line you're hoping for?

Executive
Warren Veltman

Yeah. I think the most important thing for us there is that we put a capital structure in place that is aligned with our strategic plan. So we're going to be very thoughtful in the way that we go about this. We haven't set a specific time line. We understand the urgency surrounding it, so we're approaching it with that in mind. But we are continuing to talk to our lenders and going through various structures and trying to optimize the structure that would make the most sense for us vis-a-vis our strategic plan.

Analyst
Rob Brown

Okay, thank you. I'll turn over.

Operator
Operator

Thank you. Our next question will be from Steve Barger with KeyBanc Capital Markets.

Analyst
Steve Barger

Hey, good morning, guys.

Executive
Warren Veltman

Good morning.

Executive
Unidentified Speaker

Good morning.

Analyst
Steve Barger

Really nice improvement on the slide deck. Thanks for that. My first question is, how long have J.P. Morgan and the law firm been engaged? I'm just trying to get a sense of where we are in the strategic review.

Executive
Warren Veltman

Yes. Both of those, J.P. Morgan and Simpson Thacher, are trusted