MEC Q4 2021 Earnings Report
Key Takeaways
Mayville Engineering Company (MEC) reported a 19% increase in net sales to $113.0 million for Q4 2021 compared to the prior year period. However, the company recorded a net loss of $13.6 million, which included a $16.9 million impairment charge related to an agreement with a new fitness customer. Adjusted EBITDA was $9.2 million, with an Adjusted EBITDA Margin of 8.1%.
Net sales increased by approximately 19% to $113.0 million compared to the prior year period.
A net loss of $13.6 million was recorded, including a $16.9 million impairment charge related to the new fitness customer agreement.
Adjusted EBITDA was $9.2 million, with an Adjusted EBITDA Margin of 8.1%.
Commercial pricing activity was completed to combat inflationary pressures.
MEC
MEC
Forward Guidance
The company is confirming its preliminary 2022 financial outlook and expects net sales between $480 million and $530 million, and Adjusted EBITDA between $58 million and $70 million. This outlook assumes no revenues associated with the fitness customer.
Positive Outlook
- Robust balance sheet
- Ongoing operational improvements
- Strong customer relationships
- Favorable outsourcing and reshoring trends
- Encouraging demand dynamics
Challenges Ahead
- Assumes no revenues associated with the fitness customer.
- Volumes will improve as customers’ supply chain disruptions begin to subside
- Customers work to meet the vigorous demand in their respective end markets
- Impacted by customer shutdowns related to the COVID-19 pandemic
- Timing lag related to contractual raw material price pass-throughs to customers