Mayville Engineering Company Inc. (MEC) Tops Q4 EPS by 8c, Revenues Beat; Reaffirms FY20 Sales Outlook

Mayville Engineering Company Inc. (NYSE: MEC) reported Q4 EPS of ($0.08), $0.08 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $102.3 million versus the consensus estimate of $100.04 million.

Full Year 2019 Highlights:

• Completed Initial Public Offering (IPO) in May
• Produced net sales of $519.7 million
• Generated a net loss of $4.8 million, which included $28.2 million of one-time charges
• Recorded Adjusted EBITDA of $53.1 million
• Lowered outstanding debt to $72.6 million, or 1.4 times Adjusted EBITDA
• Credit Agreement amended increasing borrowing capacity with more favorable rates
• Increased share buyback authorization to $25.0 million through 2021
• Completed integration of Defiance Metal Products (DMP) acquisition
• Reaffirmed 2020 full-year outlook

“2019 was an important year for our Company during which we reached numerous important milestones including completing our IPO and the integration of DMP,” explained Robert D. Kamphuis, Chairman, President and CEO. “Our full year results highlight the overall strength of our business, which more recently has been impacted by the sudden shifts in demand that we started to experience late in the third quarter. We believe much of the dramatic downshift in demand has slowed and we will continue to align our cost structure to market conditions. Going forward, we are reaffirming our 2020 outlook and remain focused on leveraging our agility to shift our capacities and pursue new customer opportunities.”

GUIDANCE:

Mayville Engineering Company Inc. sees FY2020 revenue of $425-465 million, versus the consensus of $457.1 million.

Based on the Company’s recent performance, the overall economic climate, and industry trends, 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.

For earnings history and earnings-related data on Mayville Engineering Company Inc. (MEC) click here.

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