NYSE$MEC

Mayville Engineering Company Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

MEC's first quarter results for 2022 were announced, demonstrating year-over-year growth in net sales, net income and adjusted EBITDA.

Mayville Engineering Company reported a 21% increase in net sales, reaching $136.3 million, and a 50% increase in net income to $3.8 million. Adjusted EBITDA also increased to $14.8 million. The company is reiterating its 2022 financial outlook.

  • Net sales increased approximately 21% to $136.3 million as compared to prior year period
  • Recorded net income of $3.8 million, a 50% increase over the prior year period
  • Basic earnings per share increased $0.06 to $0.19 as compared to prior year period
  • Delivered Adjusted EBITDA of $14.8 million, up from $13.0 million for the same prior year period

Headline financials

Total Revenue

$136M

Previous: $113M+21.0%
EPS (adj)

$0.15

Previous: $0.12+25.0%
Adjusted EBITDA

$14.8M

Previous: $13M+13.6%
Adjusted EBITDA Margin

10.8%

Previous: 11.6%-6.9%
Capital Expenditures

-$13M

Previous: -$5.56M-133.5%
Free Cash Flow

-$9.16M

Previous: -$3.01M-203.8%
Net Income

$3.82M

Previous: $2.55M+50.2%
Operating Income

$5.56M

Previous: $4.07M+36.8%
Gross Profit

$14.9M

Previous: $14.8M+0.7%
Cash & Equivalents

$120K

Previous: $124K-3.2%
Total Assets

$443M

Previous: $354M+25.3%
Stock-Based Comp

$1.26M

Previous: $1.2M+4.8%

Revenue & EPS history

MEC · Revenue · Quarterly

$136M

Q1 2022+21%vs Q1 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

MEC · $158M total across 6 segments · Q3 2023

  • Commercial Vehicle
    $57.3M
  • Construction & Access
    $26.3M
  • Powersports
    $25.1M
  • Other
    $23.5M
  • Agriculture
    $15M
  • Military
    $11M

Forward guidance

The Company is reiterating its 2022 financial outlook provided earlier this year and continues to expect net sales of between $480 million and $530 million and Adjusted EBITDA between $58 million and $70 million.

Tailwinds

  • Demand dynamics remain robust.
  • Volumes will gradually improve as we move through the second half of 2022.
  • Customers’ supply chain challenges start to improve.
  • Continue to expand existing relationships.
  • Convert new business opportunities as companies look to avail themselves of our market leading operational expertise and unparalleled flexible production capabilities.

Headwinds

  • Pandemic disruptions persist.
  • Supply chain disruptions persist.
  • This outlook assumes no revenues associated with the fitness customer.
  • Ongoing macroeconomic headwinds.
  • Ongoing supply chain constraints that are impacting many of our customers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.3%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+5.6%

Avg return

30 days after

39%

11 / 28 earnings

Positive

+17.6%

Q3 2022

Best reaction

-37.7%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+19.6%+45.9%
Q4 2025-1.8%-10.8%-13.7%
Q3 2025-10.4%-6.3%-8.3%
Q1 2025-3.8%+11.7%+13.7%
Q4 2024-0.1%+8.2%-8.8%
Q3 2024-16.3%-18.1%-19.7%
Q2 2024+10.9%+13.0%+11.3%
Q1 2024+7.4%+16.2%+16.1%
Q4 2023+6.8%+3.6%+6.9%
Q3 2023+3.6%+6.9%+11.9%
Q2 2023-7.9%+0.2%-2.9%
Q1 2023-5.9%-17.5%-2.3%
Q4 2022-4.0%-4.7%-8.4%
Q3 2022+17.6%+45.1%+99.2%
Q2 2022-0.8%-3.4%-3.9%
Q1 2022+8.2%-1.2%+9.6%
Q4 2021-5.7%-2.0%-9.4%
Q3 2021-4.8%-4.8%-18.8%
Q2 2021-2.4%-1.3%-16.8%
Q1 2021-5.7%+8.2%+18.6%
Q4 2020+1.4%+6.3%+3.2%
Q3 2020+14.3%+15.6%+24.6%
Q2 2020-1.5%+6.4%+14.0%
Q1 2020+8.3%+30.4%+34.5%
Q4 2019-6.2%+2.0%-15.4%
Q3 2019-37.7%-19.9%-26.8%
Q2 2019-5.8%-11.3%+1.9%
Q1 2019+3.3%-5.7%+0.4%
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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