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Dec 31, 2019
MEC Q4 2019 Earnings Report
Performance was impacted by sudden demand changes starting in late third quarter and ended the year in a strong financial position.
Key Takeaways
Mayville Engineering Company announced Q4 2019 results, which were impacted by sudden shifts in demand that started in the late third quarter. Despite these challenges, the company reaffirmed its 2020 outlook and remains focused on leveraging agility to shift capacities and pursue new customer opportunities.
Net sales increased by $10.9 million, driven by net revenues from former DMP locations, offset by declines within the legacy business.
Manufacturing margins decreased by $6.4 million due to market changes and higher health care costs.
EBITDA and Adjusted EBITDA each declined due to previously mentioned issues.
The company adjusted its cost structure during the fourth quarter to align with 2020 expectations.
Forward Guidance
The Company is reaffirming its 2020 financial outlook as follows: Net sales are expected to be between $425 million to $465 million. Adjusted EBITDA is expected to be between $39 million and $50 million, which excludes stock-based compensation for 2020.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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