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Sep 30, 2021

MEC Q3 2021 Earnings Report

Announced results for the third quarter ended September 30, 2021.

Key Takeaways

Mayville Engineering Company reported net sales of $109.0 million and net income of $0.3 million for the third quarter of 2021. The company generated Adjusted EBITDA of $10.0 million and is modifying its 2021 financial outlook back to original projections based on short-term volume changes.

Produced net sales of $109.0 million.

Recorded net income of $0.3 million.

Generated Adjusted EBITDA of $10.0 million.

Expanding investment in new Hazel Park, MI facility; Initial phase remains on track to open in 1H22, second phase planned for 2H22.

Total Revenue
$109M
Previous year: $91.1M
+19.7%
EPS
$0.01
Previous year: -$0.05
-120.0%
Gross Profit
$10.9M
Previous year: $9.74M
+12.1%
Cash and Equivalents
$127K
Previous year: $110K
+15.5%
Free Cash Flow
-$15M
Previous year: $14.5M
-203.9%
Total Assets
$379M
Previous year: $344M
+10.3%

MEC

MEC

Forward Guidance

The Company is modifying its 2021 financial outlook back to its original projections. Net sales are expected to be between $450 million to $470 million. Adjusted EBITDA is expected to be between $46 million and $52 million, net of the launch costs associated with the new customer relationship of $3.7 million to $4.3 million.

Positive Outlook

  • End markets remain stable
  • Supply chain constraints do not dramatically worsen
  • Business activity as a whole continues to trend positively
  • Constant contact with customers
  • Working diligently to help customers address their supply chain challenges and meet the strong demand for their products

Challenges Ahead

  • Recent labor challenges
  • Customer supply chain constraints
  • Impacted volumes in the near-term
  • Overall economic climate
  • Industry trends