NYSE$MEC

Mayville Engineering Company Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

MEC's financial performance was impacted by customer shutdowns and pandemic-related demand shifts, resulting in a net loss, but the company focused on cost structure improvements.

Mayville Engineering Company (MEC) reported net sales of $62.6 million and a net loss of $7.0 million for the second quarter ended June 30, 2020. The company's performance was affected by COVID-19 related customer shutdowns and destocking activities. However, MEC focused on cost structure improvements and is actively pursuing new revenue opportunities.

  • Net sales reached $62.6 million.
  • Net loss was $7.0 million, with Adjusted EBITDA at $2.3 million.
  • Credit agreement was amended to enhance liquidity and flexibility.
  • Performance profile improved through facility and process optimization.

Headline financials

Total Revenue

$62.6M

Previous: $145M-56.9%
EPS (adj)

-$0.35

Previous: $0.29-220.7%
Adjusted EBITDA

$2.3M

No prior period
Capital Expenditures

-$3.65M

Previous: -$16.6M+78.0%
Free Cash Flow

-$10.7M

Previous: -$31.9M+66.6%
Net Income

-$7.01M

Previous: -$15.3M+54.1%
Operating Income

-$8.9M

Previous: -$16.7M+46.5%
Gross Profit

-$1.15M

Previous: $20.5M-105.6%
Cash & Equivalents

$120K

Previous: $1K+11900.0%
Total Assets

$344M

Previous: $407M-15.4%
Stock-Based Comp

$1.16M

No prior period

Revenue & EPS history

MEC · Revenue · Quarterly

$62.6M

Q2 2020-56.9%vs Q2 2019
Beat estimate in 7 of 11 quarters(64%)
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

Due to the ongoing uncertainty of the pandemic and related economic and social impact, the Company is not in a position to provide a financial outlook at this time.

Tailwinds

  • Second quarter is believed to be the low point for the year based on extended shutdowns and continued de-stocking from many customers.
  • Expect to see a stabilization and then gradual improvement in business conditions during the second half of the year.
  • Focused on factors within our control, effectively improving our performance profile and providing exceptional value for our customers.
  • Strong financial standing and market leading position means we are well placed to manage through the pandemic and related economic disruption.
  • Exploring a wide range of opportunities with both new and existing customers, and see potential for project expansion, takeover business and new prospects in a variety of end markets

Headwinds

  • Ongoing uncertainty of the pandemic and related economic and social impact.
  • Not in a position to provide a financial outlook at this time.
  • Assuming we don’t see additional extended shutdowns at our customers facilities.
  • Assuming that the economic situation does not deteriorate significantly.

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 Q2 2020

Historical avgQ2 2020

-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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