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Mar 31, 2022

MEC Q1 2022 Earnings Report

MEC's first quarter results for 2022 were announced, demonstrating year-over-year growth in net sales, net income and adjusted EBITDA.

Key Takeaways

Mayville Engineering Company reported a 21% increase in net sales, reaching $136.3 million, and a 50% increase in net income to $3.8 million. Adjusted EBITDA also increased to $14.8 million. The company is reiterating its 2022 financial outlook.

Net sales increased approximately 21% to $136.3 million as compared to prior year period

Recorded net income of $3.8 million, a 50% increase over the prior year period

Basic earnings per share increased $0.06 to $0.19 as compared to prior year period

Delivered Adjusted EBITDA of $14.8 million, up from $13.0 million for the same prior year period

Total Revenue
$136M
Previous year: $113M
+21.0%
EPS
$0.15
Previous year: $0.12
+25.0%
Gross Profit
$14.9M
Previous year: $14.8M
+0.7%
Cash and Equivalents
$120K
Previous year: $124K
-3.2%
Free Cash Flow
-$13.4M
Previous year: -$1.37M
+882.0%
Total Assets
$443M
Previous year: $354M
+25.3%

MEC

MEC

Forward Guidance

The Company is reiterating its 2022 financial outlook provided earlier this year and continues to expect net sales of between $480 million and $530 million and Adjusted EBITDA between $58 million and $70 million.

Positive Outlook

  • Demand dynamics remain robust.
  • Volumes will gradually improve as we move through the second half of 2022.
  • Customers’ supply chain challenges start to improve.
  • Continue to expand existing relationships.
  • Convert new business opportunities as companies look to avail themselves of our market leading operational expertise and unparalleled flexible production capabilities.

Challenges Ahead

  • Pandemic disruptions persist.
  • Supply chain disruptions persist.
  • This outlook assumes no revenues associated with the fitness customer.
  • Ongoing macroeconomic headwinds.
  • Ongoing supply chain constraints that are impacting many of our customers.