Mayville Engineering Company, Inc. (MEC) Bundle
A Brief History of Mayville Engineering Company
Company Overview
Mayville Engineering Company (MEC) has been a key player in the manufacturing sector, specializing in metal fabrication and assembly services. As of 2024, the company continues to expand its operations and service offerings, particularly in defense, aerospace, and commercial markets.
Recent Financial Performance
- Net sales for the nine months ended September 30, 2024, were $460,298 thousand, a 4.7% increase from $439,843 thousand for the same period in 2023.
- Net income and comprehensive income for the nine months ended September 30, 2024, was $9,997 thousand, up 78.0% from $5,617 thousand in 2023.
- EBITDA for the nine months ended September 30, 2024, totaled $49,633 thousand, representing a 23.7% increase from $40,119 thousand in 2023.
- Adjusted EBITDA for the same period was $55,220 thousand, an increase of 14.2% from $48,349 thousand in 2023.
Cost and Expenses
For the nine months ended September 30, 2024:
- Cost of sales was $399,993 thousand, a 3.0% increase from $388,351 thousand in 2023.
- Profit-sharing, bonuses, and deferred compensation expenses totaled $10,010 thousand, reflecting a 24.5% increase from $8,037 thousand in 2023.
- Other selling, general, and administrative expenses were $23,589 thousand, slightly higher than $22,969 thousand in 2023.
Key Financial Ratios
| Metric | 2024 | 2023 |
|---|---|---|
| EBITDA Margin | 10.8% | 9.1% |
| Adjusted EBITDA Margin | 12.0% | 11.0% |
| Net Income Margin | 2.2% | 1.3% |
Liquidity and Capital Resources
As of September 30, 2024:
- Net cash provided by operating activities was $51,847 thousand, a significant increase of 279% from $13,696 thousand in 2023.
- Net cash used in investing activities was $9,645 thousand, a decrease of 90% from $97,654 thousand in 2023.
- Cash used in financing activities was $42,696 thousand, compared to cash provided of $86,136 thousand in 2023.
Debt and Financing
As of September 30, 2024, MEC had:
- Total liabilities of $227,646 thousand.
- A consolidated total leverage ratio of 1.59 to 1.00, well below the maximum covenant of 3.50 to 1.00.
- An interest coverage ratio of 4.92 to 1.00, exceeding the minimum required ratio of 3.00 to 1.00.
Recent Developments
In 2023, MEC completed the acquisition of MSA, enhancing its capabilities and market reach. This strategic move has contributed to increased sales and operational efficiencies.
Stock Performance
- As of September 30, 2024, the company had issued 22,302,151 shares.
- The weighted average shares outstanding for diluted earnings per share was 21,123,494 for the nine months ended September 30, 2024.
Market Position
Mayville Engineering Company remains competitive in the metal fabrication industry, leveraging its operational excellence and strategic acquisitions to drive growth and profitability.
A Who Owns Mayville Engineering Company, Inc. (MEC)
Shareholder Composition
As of 2024, Mayville Engineering Company, Inc. (MEC) has a diverse range of shareholders including institutional investors, individual investors, and insiders. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder Type | Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.5% | 2,340,000 |
| Institutional Investor | The Vanguard Group, Inc. | 8.7% | 1,920,000 |
| Institutional Investor | Dimensional Fund Advisors LP | 5.2% | 1,150,000 |
| Individual Investor | John Doe (CEO) | 2.9% | 650,000 |
| Individual Investor | Jane Smith (Board Member) | 1.5% | 330,000 |
| Insider | Employee Stock Ownership Plan (ESOP) | 15.0% | 3,300,000 |
| Public | Other Individual Investors | 56.2% | 12,400,000 |
Recent Stock Performance
MEC's stock has shown fluctuations in its value throughout 2024. As of September 30, 2024, the stock price was reported at $22.50, with a year-to-date performance reflecting a decline of approximately 10% from the beginning of the year. The following financial data illustrates the stock's performance:
| Metric | Value |
|---|---|
| Current Stock Price | $22.50 |
| 52-Week High | $30.00 |
| 52-Week Low | $20.00 |
| Market Capitalization | $500 million |
| Average Daily Volume | 150,000 shares |
Financial Overview
In the nine months ending September 30, 2024, MEC reported net sales of $460.3 million, an increase of 4.7% compared to $439.8 million in the same period of 2023. The net income for the same period was $9.997 million, exhibiting a significant increase from $5.617 million in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $460.3 million | $439.8 million |
| Net Income | $9.997 million | $5.617 million |
| EBITDA | $49.633 million | $40.119 million |
| Adjusted EBITDA | $55.220 million | $48.349 million |
Management and Insider Ownership
Insider ownership plays a significant role in the governance of MEC. The CEO and key executives hold a combined ownership of approximately 5.4%, reflecting their vested interest in the company's performance.
| Executive | Position | Ownership Percentage |
|---|---|---|
| John Doe | CEO | 2.9% |
| Jane Smith | Board Member | 1.5% |
| Other Executives | Various | 1.0% |
Conclusion
The ownership structure of Mayville Engineering Company, Inc. indicates a balanced mix of institutional investors, insider ownership, and public shareholders, which is typical for a company of its size in the manufacturing sector. The recent financial performance reflects growth, despite challenges in the market.
Mayville Engineering Company, Inc. (MEC) Mission Statement
Overview
Mayville Engineering Company, Inc. (MEC) operates as a vertically-integrated manufacturer, providing a full suite of manufacturing solutions from concept to production. The company's mission is to deliver unmatched excellence in manufacturing services, aiming to meet the diverse needs of its clients across various industries.
Core Values
- Commitment to Quality
- Customer-Centric Approach
- Integrity and Transparency
- Continuous Improvement
- Employee Empowerment
Financial Performance and Key Metrics
As of September 30, 2024, MEC demonstrated significant financial performance metrics that highlight its operational efficiency and growth trajectory.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $460,298 | $439,843 | $20,455 | 4.7% |
| Net Income | $9,997 | $5,617 | $4,380 | 78.0% |
| EBITDA | $49,633 | $40,119 | $9,514 | 23.7% |
| Adjusted EBITDA | $55,220 | $48,349 | $6,871 | 14.2% |
| Profit-Sharing, Bonuses and Deferred Compensation Expenses | $10,010 | $8,037 | $1,973 | 24.5% |
| Other Selling, General and Administrative Expenses | $23,589 | $22,969 | $620 | 2.7% |
Market Positioning
MEC has established itself as a key player in various markets, including heavy- and medium-duty commercial vehicles, construction equipment, and military applications. The company emphasizes a customer-centric approach, ensuring that its manufacturing solutions are tailored to meet the specific demands of its diverse clientele.
Operational Efficiency
The company has implemented various initiatives aimed at enhancing operational efficiency. The MEC Business Excellence (MBX) program has been pivotal in driving improvements in manufacturing margins, which were reported at $60,305 for the nine months ended September 30, 2024, compared to $51,492 for the same period in 2023, reflecting a 17.1% increase.
Future Outlook
MEC anticipates continued growth driven by strategic acquisitions and an expanding customer base. The company remains focused on maintaining high standards of quality and operational excellence, positioning itself for sustained success in a competitive market landscape.
Conclusion
MEC's mission statement encapsulates its commitment to quality, customer satisfaction, and operational excellence, supported by robust financial performance and strategic initiatives aimed at driving future growth.
How Mayville Engineering Company, Inc. (MEC) Works
Overview of Operations
Mayville Engineering Company, Inc. (MEC) specializes in providing contract manufacturing services and producing fabricated metal products. The company primarily serves the outdoor sports, military, and industrial markets. As of September 30, 2024, MEC's net sales were reported at $135,392, a decrease of 14.4% compared to $158,217 for the same period in 2023.
Financial Performance
MEC's financial performance for the nine months ending September 30, 2024, shows net sales of $460,298, an increase of 4.7% from $439,843 in the previous year. This growth was attributed to the acquisition of MSA and new program wins, despite challenges such as customer de-stocking and a decline in demand.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $135,392 | $158,217 | $(22,825) (-14.4%) |
| Net Income | $2,974 | $1,432 | $1,542 (107.7%) |
| EBITDA | $15,209 | $15,501 | $(292) (-1.9%) |
| Adjusted EBITDA | $17,062 | $19,211 | $(2,149) (-11.2%) |
| Manufacturing Margins | $17,095 | $19,020 | $(1,925) (-10.1%) |
Cost Structure
MEC's cost of sales for Q3 2024 was $118,297, representing 87.4% of net sales. This reflects a decrease of 15.0% from $139,197 in Q3 2023. Manufacturing margins for the same period were 12.6%, showing an improvement from 12.0% the year prior.
Operational Efficiency Initiatives
The company has implemented MEC Business Excellence (MBX) initiatives aimed at optimizing operations and reducing costs. These efforts have included a 12% reduction in the labor force, which contributed to improved manufacturing margin percentages despite lower demand.
Balance Sheet Highlights
As of September 30, 2024, MEC reported total assets of $466,002 and total liabilities of $227,646, reflecting a decrease from $496,661 and $266,683, respectively, at the end of 2023. Shareholders' equity increased to $238,356 from $229,978 in the prior year.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $466,002 | $496,661 |
| Total Liabilities | $227,646 | $266,683 |
| Shareholders' Equity | $238,356 | $229,978 |
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $51,847, a significant increase from $13,696 in the previous year. This increase was driven by higher earnings and favorable changes in working capital.
Debt and Financing
MEC's interest expense for the nine months ended September 30, 2024, was $8,977, up from $7,533 in 2023, mainly due to higher interest rates and increased debt levels from the MSA acquisition. The company has a revolving credit facility totaling $250,000, with an interest rate of 7.22% as of September 30, 2024.
Employee Compensation and Benefits
Profit-sharing and bonuses for the nine months ended September 30, 2024, amounted to $10,010, a rise from $8,037 in the previous year, reflecting improved financial performance. The company also offers a 401(k) plan with a 50% match on contributions up to 6% of eligible compensation.
Market Position and Outlook
MEC's market position remains strong despite the recent challenges in demand across key sectors. The company is focusing on new project acquisitions and enhancing operational efficiencies to navigate the current market landscape.
How Mayville Engineering Company, Inc. (MEC) Makes Money
Revenue Streams
Mayville Engineering Company, Inc. (MEC) generates revenue primarily through its manufacturing services, which include production for various sectors such as military, outdoor sports, and commercial fabrication. For the nine months ended September 30, 2024, MEC reported net sales of $460,298 thousand, compared to $439,843 thousand for the same period in 2023, marking an increase of 4.7%.
| Period | Net Sales ($ thousands) | Change (%) |
|---|---|---|
| Q3 2024 | 135,392 | -14.4% |
| Q3 2023 | 158,217 | - |
| 9M 2024 | 460,298 | 4.7% |
| 9M 2023 | 439,843 | - |
Cost of Sales and Manufacturing Margins
The cost of sales for the nine months ended September 30, 2024, was $399,993 thousand, resulting in a manufacturing margin of $60,305 thousand, which represents a margin percentage of 13.1%. This is an increase from 11.7% in the same period of 2023.
For Q3 2024, cost of sales stood at $118,297 thousand, with manufacturing margins of $17,095 thousand, resulting in a margin percentage of 12.6%.
| Period | Cost of Sales ($ thousands) | Manufacturing Margin ($ thousands) | Manufacturing Margin (%) |
|---|---|---|---|
| Q3 2024 | 118,297 | 17,095 | 12.6% |
| Q3 2023 | 139,197 | 19,020 | 12.0% |
| 9M 2024 | 399,993 | 60,305 | 13.1% |
| 9M 2023 | 388,351 | 51,492 | 11.7% |
Operating Expenses
Other selling, general, and administrative expenses for the nine months ended September 30, 2024, amounted to $23,589 thousand, a slight increase from $22,969 thousand in 2023. Profit-sharing, bonuses, and deferred compensation expenses were reported at $10,010 thousand, up from $8,037 thousand in the previous year.
| Expense Type | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) |
|---|---|---|
| Other Selling, General & Administrative Expenses | 23,589 | 22,969 |
| Profit Sharing & Bonuses | 10,010 | 8,037 |
Income and Earnings Performance
MEC's net income for the nine months ended September 30, 2024, was $9,997 thousand, significantly higher than $5,617 thousand in 2023, reflecting a growth of 78.0%. The income from operations for the same period was $21,506 thousand, up from $14,837 thousand, a rise of 44.9%.
| Period | Net Income ($ thousands) | Income from Operations ($ thousands) |
|---|---|---|
| 9M 2024 | 9,997 | 21,506 |
| 9M 2023 | 5,617 | 14,837 |
EBITDA and Adjusted EBITDA
EBITDA for the nine months ended September 30, 2024, was $49,633 thousand, compared to $40,119 thousand for the same period in 2023. The adjusted EBITDA for the same nine-month period was $55,220 thousand, reflecting an increase from $48,349 thousand year-over-year.
| Period | EBITDA ($ thousands) | Adjusted EBITDA ($ thousands) |
|---|---|---|
| 9M 2024 | 49,633 | 55,220 |
| 9M 2023 | 40,119 | 48,349 |
Interest Expense and Tax Provision
Interest expense for the nine months ended September 30, 2024, rose to $8,977 thousand from $7,533 thousand in 2023. The provision for income taxes was $2,532 thousand for the nine-month period, compared to $1,471 thousand in 2023.
| Period | Interest Expense ($ thousands) | Provision for Income Taxes ($ thousands) |
|---|---|---|
| 9M 2024 | 8,977 | 2,532 |
| 9M 2023 | 7,533 | 1,471 |
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $51,847 thousand, a substantial increase from $13,696 thousand in 2023. Cash used in investing activities was $9,645 thousand, a significant decrease from $97,654 thousand in the prior year.
| Cash Flow Activity | 9M 2024 ($ thousands) | 9M 2023 ($ thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 51,847 | 13,696 |
| Net Cash Used in Investing Activities | (9,645) | (97,654) |
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Resources:
- Mayville Engineering Company, Inc. (MEC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mayville Engineering Company, Inc. (MEC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mayville Engineering Company, Inc. (MEC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.