NYSE$MEC

Mayville Engineering Company Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced results for the third quarter ended September 30, 2021.

Mayville Engineering Company reported net sales of $109.0 million and net income of $0.3 million for the third quarter of 2021. The company generated Adjusted EBITDA of $10.0 million and is modifying its 2021 financial outlook back to original projections based on short-term volume changes.

  • Produced net sales of $109.0 million.
  • Recorded net income of $0.3 million.
  • Generated Adjusted EBITDA of $10.0 million.
  • Expanding investment in new Hazel Park, MI facility; Initial phase remains on track to open in 1H22, second phase planned for 2H22.

Headline financials

Total Revenue

$109M

Previous: $91.1M+19.7%
EPS (adj)

$0.01

Previous: -$0.05+120.0%
Adjusted EBITDA

$10M

No prior period
Adjusted EBITDA Margin

9.2%

Previous: 10.8%-14.8%
Capital Expenditures

-$26.6M

Previous: -$5.35M-396.6%
Free Cash Flow

-$26.3M

Previous: -$6.45M-307.7%
Net Income

$275K

Previous: -$1.1M+125.0%
Operating Income

$864K

Previous: $280K+208.6%
Gross Profit

$10.9M

Previous: $9.74M+12.1%
Cash & Equivalents

$127K

Previous: $110K+15.5%
Total Assets

$379M

Previous: $344M+10.3%
Stock-Based Comp

$1.18M

Previous: $978K+21.0%

Revenue & EPS history

MEC · Revenue · Quarterly

$109M

Q3 2021+19.7%vs Q3 2020
Beat estimate in 9 of 13 quarters(69%)
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 modifying its 2021 financial outlook back to its original projections. Net sales are expected to be between $450 million to $470 million. Adjusted EBITDA is expected to be between $46 million and $52 million, net of the launch costs associated with the new customer relationship of $3.7 million to $4.3 million.

Tailwinds

  • End markets remain stable
  • Supply chain constraints do not dramatically worsen
  • Business activity as a whole continues to trend positively
  • Constant contact with customers
  • Working diligently to help customers address their supply chain challenges and meet the strong demand for their products

Headwinds

  • Recent labor challenges
  • Customer supply chain constraints
  • Impacted volumes in the near-term
  • Overall economic climate
  • Industry trends

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 Q3 2021

Historical avgQ3 2021

-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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