NYSE$MEC

Mayville Engineering Company Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Achieved significant year-over-year improvements across all metrics and commenced production at Hazel Park, Michigan facility.

Mayville Engineering Company reported a strong third quarter with net sales increasing by approximately 25% to $136.3 million and net income increasing significantly from $0.3 million to $6.6 million.

  • Net sales grew approximately 25% to $136.3 million.
  • Net income increased significantly from $0.3 million to $6.6 million.
  • Basic earnings per share increased by $0.31 to $0.32.
  • Adjusted EBITDA of $16.1 million, up from $10.0 million.

Headline financials

Total Revenue

$136M

Previous: $109M+25.0%
EPS (adj)

$0.32

Previous: $0.01+3100.0%
Adjusted EBITDA

$16.1M

Previous: $10M+61.4%
Adjusted EBITDA Margin

11.8%

Previous: 9.2%+28.3%
Capital Expenditures

-$38.8M

Previous: -$26.6M-46.0%
Free Cash Flow

-$32.2M

Previous: -$26.3M-22.4%
Net Income

$6.6M

Previous: $275K+2298.5%
Operating Income

$8.92M

Previous: $864K+931.9%
Gross Profit

$15.5M

Previous: $10.9M+41.8%
Cash & Equivalents

$112K

Previous: $127K-11.8%
Total Assets

$447M

Previous: $379M+17.8%
Stock-Based Comp

$140K

Previous: $1.18M-88.2%

Revenue & EPS history

MEC · Revenue · Quarterly

$136M

Q3 2022+25%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
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 refining its 2022 financial outlook and has adjusted its expectations.

Tailwinds

  • Net sales of between $480 million and $530 million has been updated to between $520 million and $540 million.
  • Adjusted EBITDA between $58 million and $70 million has been updated to between $58 and $65 million.
  • 2022 capital expenditures of between $55 million and $65 million with an expected return to traditional levels in 2023 of $20 million to $25 million.
  • This outlook assumes no recoveries associated with the former fitness customer.
  • Demand for services remains strong in the near-term across most of the end markets.

Headwinds

  • General macroeconomic concerns.
  • Monitoring industry trends to ensure capacity is aligned with customer needs.
  • Maintaining a flexible posture to take action quickly and as needed.
  • No recoveries associated with the former fitness customer.
  • Continuing to monitor 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 2022

Historical avgQ3 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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