NYSE$MEC

Mayville Engineering Company Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

MEC's Q4 2021 results were announced, revealing increased net sales but a net loss due to an impairment charge, while adjusted EBITDA remained positive.

Mayville Engineering Company (MEC) reported a 19% increase in net sales to $113.0 million for Q4 2021 compared to the prior year period. However, the company recorded a net loss of $13.6 million, which included a $16.9 million impairment charge related to an agreement with a new fitness customer. Adjusted EBITDA was $9.2 million, with an Adjusted EBITDA Margin of 8.1%.

  • Net sales increased by approximately 19% to $113.0 million compared to the prior year period.
  • A net loss of $13.6 million was recorded, including a $16.9 million impairment charge related to the new fitness customer agreement.
  • Adjusted EBITDA was $9.2 million, with an Adjusted EBITDA Margin of 8.1%.
  • Commercial pricing activity was completed to combat inflationary pressures.

Headline financials

Total Revenue

$113M

Previous: $95.3M+18.5%
EPS (adj)

$0.14

Previous: $0.05+180.0%
Adjusted EBITDA Margin

8.1%

Previous: 9.8%-17.3%
Capital Expenditures

$12.7M

Previous: $2.44M+421.4%
Free Cash Flow

-$11.1M

Previous: $14.8M-174.7%
Net Income

-$13.6M

Previous: $1M-1456.3%
Operating Income

-$17.1M

Previous: $556K-3180.0%
Gross Profit

$9.41M

Previous: $11.1M-15.1%
Cash & Equivalents

$118K

Previous: $121K-2.5%
Total Assets

$379M

Previous: $339M+12.1%
Stock-Based Comp

$1.19M

Previous: $1.01M+17.6%

Revenue & EPS history

MEC · Revenue · Quarterly

$113M

Q4 2021+18.5%vs Q4 2020
Beat estimate in 10 of 14 quarters(71%)
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 confirming its preliminary 2022 financial outlook and expects net sales between $480 million and $530 million, and Adjusted EBITDA between $58 million and $70 million. This outlook assumes no revenues associated with the fitness customer.

Tailwinds

  • Robust balance sheet
  • Ongoing operational improvements
  • Strong customer relationships
  • Favorable outsourcing and reshoring trends
  • Encouraging demand dynamics

Headwinds

  • Assumes no revenues associated with the fitness customer.
  • Volumes will improve as customers’ supply chain disruptions begin to subside
  • Customers work to meet the vigorous demand in their respective end markets
  • Impacted by customer shutdowns related to the COVID-19 pandemic
  • Timing lag related to contractual raw material price pass-throughs to 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 Q4 2021

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro