The following is a summary of the Mayville Engineering Company, Inc. (MEC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Mayville Engineering reported a strong Q1 performance with net sales growth, increased adjusted EBITDA, and positive free cash flow.
The company demonstrated a Q1 sales increase of 13.1% to $161.3 million.
Manufacturing margin was $20.9 million, and adjusted EBITDA increased to $18.5 million.
For 2024, the company projects full-year net sales growth of 5%-9% and growth in total free cash flow of approximately $11 million to $21 million.
Revenue for the quarter was $124.2 million, up 2% year-over-year, supplemented by strong performance in Powersports and commercial lawn and turf markets.
The company reported earnings per share of $0.05, indicating a substantial turnaround from the loss per share of $0.01 in the same quarter last year.
Business Progress:
The company experienced significant success with its MBX framework and reported substantial new Q1 contract wins.
Intends to further advance commercial reach and operational productivity, including an accentuated focus on sourcing optimization and labor utilization.
Achieved full integration of Mid-States Aluminum into the MEC platform, contributing to year-over-year top-line growth in Q1.
Strategic M&A remains a critical aspect of the company's multi-year growth strategy, along with debt reduction and potential share repurchases under an existing $25 million authorization.
Plans to make high-return investments in automation, expecting to improve productivity and expand capacity.
Anticipates the Hazel Park plant generating a revenue of $100 million by 2025, facilitated by the deployment of flexible cobots.
Maintains a strong focus on debt reduction and free cash flow generation for 2024, as well as continuous efforts for inventory reduction.
More details: Mayville Engineering IR
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