NYSE$MEC

Mayville Engineering Company Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Performance was impacted by sudden demand changes starting in late third quarter and ended the year in a strong financial position.

Mayville Engineering Company announced Q4 2019 results, which were impacted by sudden shifts in demand that started in the late third quarter. Despite these challenges, the company reaffirmed its 2020 outlook and remains focused on leveraging agility to shift capacities and pursue new customer opportunities.

  • Net sales increased by $10.9 million, driven by net revenues from former DMP locations, offset by declines within the legacy business.
  • Manufacturing margins decreased by $6.4 million due to market changes and higher health care costs.
  • EBITDA and Adjusted EBITDA each declined due to previously mentioned issues.
  • The company adjusted its cost structure during the fourth quarter to align with 2020 expectations.

Headline financials

Total Revenue

$102M

Previous: $91.4M+11.9%
EPS (adj)

-$0.08

Previous: $0.03-366.6%
Capital Expenditures

$2.98M

No prior period
Free Cash Flow

$14M

No prior period
Net Income

-$1.67M

Previous: $591K-383.1%
Operating Income

-$4.61M

Previous: $1.59M-391.0%
Gross Profit

$4.03M

Previous: $10.4M-61.2%
Cash & Equivalents

$1K

No prior period
Total Assets

$364M

No prior period
Stock-Based Comp

$1.35M

No prior period

Revenue & EPS history

MEC · Revenue · Quarterly

$102M

Q4 2019+11.9%vs Q4 2018
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

The Company is reaffirming its 2020 financial outlook as follows: Net sales are expected to be between $425 million to $465 million. Adjusted EBITDA is expected to be between $39 million and $50 million, which excludes stock-based compensation for 2020.

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 Q4 2019

Historical avgQ4 2019

-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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