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Jun 30, 2020
MEC Q2 2020 Earnings Report
MEC's financial performance was impacted by customer shutdowns and pandemic-related demand shifts, resulting in a net loss, but the company focused on cost structure improvements.
Key Takeaways
Mayville Engineering Company (MEC) reported net sales of $62.6 million and a net loss of $7.0 million for the second quarter ended June 30, 2020. The company's performance was affected by COVID-19 related customer shutdowns and destocking activities. However, MEC focused on cost structure improvements and is actively pursuing new revenue opportunities.
Net sales reached $62.6 million.
Net loss was $7.0 million, with Adjusted EBITDA at $2.3 million.
Credit agreement was amended to enhance liquidity and flexibility.
Performance profile improved through facility and process optimization.
MEC
MEC
Forward Guidance
Due to the ongoing uncertainty of the pandemic and related economic and social impact, the Company is not in a position to provide a financial outlook at this time.
Positive Outlook
- Second quarter is believed to be the low point for the year based on extended shutdowns and continued de-stocking from many customers.
- Expect to see a stabilization and then gradual improvement in business conditions during the second half of the year.
- Focused on factors within our control, effectively improving our performance profile and providing exceptional value for our customers.
- Strong financial standing and market leading position means we are well placed to manage through the pandemic and related economic disruption.
- Exploring a wide range of opportunities with both new and existing customers, and see potential for project expansion, takeover business and new prospects in a variety of end markets
Challenges Ahead
- Ongoing uncertainty of the pandemic and related economic and social impact.
- Not in a position to provide a financial outlook at this time.
- Assuming we don’t see additional extended shutdowns at our customers facilities.
- Assuming that the economic situation does not deteriorate significantly.