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Sep 30, 2022

MEC Q3 2022 Earnings Report

Achieved significant year-over-year improvements across all metrics and commenced production at Hazel Park, Michigan facility.

Key Takeaways

Mayville Engineering Company reported a strong third quarter with net sales increasing by approximately 25% to $136.3 million and net income increasing significantly from $0.3 million to $6.6 million.

Net sales grew approximately 25% to $136.3 million.

Net income increased significantly from $0.3 million to $6.6 million.

Basic earnings per share increased by $0.31 to $0.32.

Adjusted EBITDA of $16.1 million, up from $10.0 million.

Total Revenue
$136M
Previous year: $109M
+25.0%
EPS
$0.32
Previous year: $0.01
+3100.0%
Gross Profit
$15.5M
Previous year: $10.9M
+41.8%
Cash and Equivalents
$112K
Previous year: $127K
-11.8%
Free Cash Flow
$5.17M
Previous year: -$15M
-134.4%
Total Assets
$447M
Previous year: $379M
+17.8%

MEC

MEC

Forward Guidance

The Company is refining its 2022 financial outlook and has adjusted its expectations.

Positive Outlook

  • Net sales of between $480 million and $530 million has been updated to between $520 million and $540 million.
  • Adjusted EBITDA between $58 million and $70 million has been updated to between $58 and $65 million.
  • 2022 capital expenditures of between $55 million and $65 million with an expected return to traditional levels in 2023 of $20 million to $25 million.
  • This outlook assumes no recoveries associated with the former fitness customer.
  • Demand for services remains strong in the near-term across most of the end markets.

Challenges Ahead

  • General macroeconomic concerns.
  • Monitoring industry trends to ensure capacity is aligned with customer needs.
  • Maintaining a flexible posture to take action quickly and as needed.
  • No recoveries associated with the former fitness customer.
  • Continuing to monitor industry trends