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Mayville Engineering Company Announces First Quarter and 2023 Results

Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, today announced results for the three months ended March 31, 2023.

FIRST QUARTER 2023 RESULTS

(All comparisons versus the prior-year period)

  • Net sales of $142.6 million, or +4.7% y/y
  • Net income of $2.6 million, ($1.3) million y/y
  • Diluted EPS of $0.12, including a ($0.10) per share impact from the Hazel Park facility ramp
  • Adjusted EBITDA of $13.8 million, or (6.3%) y/y, including $1.8 million impact from the Hazel Park facility ramp

MANAGEMENT COMMENTARY

"We delivered solid organic sales growth in the first quarter, highlighted by continued momentum within our commercial vehicle, military and powersports markets,” stated Jag Reddy, President and Chief Executive Officer. “Despite stable demand conditions, near-term supply chain disruptions and cost under-absorption impacted our margins as we ramp production at our new Hazel Park facility. As expected, Hazel Park affected first quarter Adjusted EBITDA and Adjusted EBITDA margin rate by $1.8 million and 120 basis points, respectively. Excluding the impact of Hazel Park, Adjusted EBITDA increased 5.6% on a year-over-year basis, while Adjusted EBITDA margin increased to 10.9%.”

“Our first quarter results demonstrate continued progress on our MBX-driven commercial and operational priorities, with a long-term focus on margin expansion and profitable growth,” stated Reddy. “We continue to drive MBX adoption across each of organizational centers of excellence and intend to provide MBX-led, multi-year performance targets at our first-ever Investor Day in late 2023.”

“Today, we are reiterating our full-year 2023 financial guidance,” continued Reddy. “While first quarter operating cash flow was impacted by the timing of capital payments, we continue to anticipate MEC will generate significant year-over-year growth in free cash flow this year, positioning us to reduce net leverage, while investing in new capabilities that further enhance the full suite of integrated solutions we provide our customers. As before, we see the potential to expand our fabrication capabilities to include lightweight materials, such as aluminum, plastics and composites, the combination of which position us to capitalize on demand growth within energy transition markets.”

PERFORMANCE SUMMARY

Net sales increased by 4.7% on a year-over-year basis in the first quarter 2023, driven by a combination of increased commercial sales volumes and continued price discipline, partially offset by supply chain challenges affecting some of our customers and softening demand in our construction & access end market.

Manufacturing margin was $16.4 million in the first quarter 2023, or 11.5% of net sales, versus $14.9 million, or 10.9% of net sales, in the prior year period. The year-over-year improvement in manufacturing gross margin was driven by a combination of strong volume growth resulting from new project starts and strong commercial vehicle demand, together with targeted commercial price actions, which partially offset lower scrap income.

Profit sharing, bonus and deferred compensation expense increased $0.5 million to $3.0 million in the first quarter of 2023 as the Company transitioned to an employer match program for its 401(k) plan. Other selling, general and administrative expenses were $7.0 million in the first quarter of 2023 as compared to $5.7 million for the same prior year period. The increase was predominantly attributable to increasing salaries, wages and benefits, recruiting fees and higher professional fees related to the Company preparing to be Sarbanes-Oxley Act Section 404(b) compliant for 2024.

Interest expense was $1.7 million in the first quarter 2023, compared to $0.6 million in the prior year period, primarily due to higher interest rates.

MEC reported Adjusted EBITDA of $13.8 million in the first quarter 2023, or 9.7% of net sales, versus $14.8 million, or 10.8% of net sales, in the prior-year period. First quarter 2023 Adjusted EBITDA reflects $1.8 million of cost under-absorption associated with the ramp-up of production at the Hazel Park facility. Excluding the impact of the ramp-up of the Hazel Park facility, Adjusted EBITDA margin would have been 10.9%.

Net income for the first quarter of 2023 was $2.6 million, or $0.12 per diluted share, versus $3.8 million, or $0.19 per diluted share, in the prior-year year period. The 32.7% year-over-year decline in net income in the first quarter of 2023 reflects a $1.8 million, or $0.10 per diluted share, impact from the ramp-up of the Hazel Park facility and a $1.2 million, or $0.06 per diluted share, non-recurring gain in the prior-year period resulting from an impairment on long-lived assets and a gain on contracts associated with the former fitness customer.

Net cash used in operations during the first quarter of 2023 was $6.0 million, compared to $0.4 million in the prior year period. Net cash used in operations during the quarter reflects a $7.8 million use of cash for working capital purposes.

END-MARKET UPDATE

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2023

 

2022

Commercial Vehicle

 

$

59,155

 

$

50,865

Construction & Access

 

 

 

26,507

 

 

29,744

Powersports

 

 

 

24,098

 

 

22,575

Agriculture

 

 

 

14,451

 

 

15,248

Military

 

 

 

8,569

 

 

5,171

Other

 

 

 

9,866

 

 

12,649

Net Sales

 

 

$

142,645

 

$

136,252

Commercial Vehicles

MEC is a Tier 1 supplier to many of the country’s top original equipment manufacturers (OEM) of commercial vehicles providing exhaust & aftertreatment, engine components, cooling, fuel and structural systems for both heavy- and medium-duty commercial vehicles.

Net sales to the commercial vehicle market were $59.2 million in the first quarter of 2023, an increase of 16.3% versus the prior-year period. The increase in sales was primarily the result of volume increases and strengthened end market demand due to a 17% year-over-year increase in the class 8 commercial vehicle build schedule.

Construction & Access

MEC manufactures thousands of parts for the construction & access market including fenders, hoods, supports, frames, platforms, frame structures, doors and tubular products such as exhaust & aftertreatment, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the construction & access market were $26.5 million in the first quarter 2023, a decrease of 10.9% versus the prior-year period. The decrease in sales was primarily driven by decelerating residential construction demand.

Powersports

MEC manufactures stampings and complex metal assemblies and coatings for the marine propulsion, all-terrain vehicles (ATV), multi-utility vehicles (MUV) and motorcycle markets. MEC’s powersports expertise includes axle housings, steering columns, swing arms, fenders, suspension components, ATV/MUV racks, cowl assemblies and vehicle frames.

Net sales to the powersports market were $24.1 million in the first quarter of 2023, an increase of 6.7% versus the prior-year period. The increase in sales was the result of an increase in volumes from new project wins and share gains from both new and existing customers.

Agriculture

MEC is an integral partner in the supply chain of the world’s leading agriculture OEMs manufacturing thousands of parts including fenders, hoods, supports, frames, platforms, frame structures, doors and tubular products such as exhaust, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the agriculture market were $14.5 million during the first quarter of 2023, a decrease of 5.2% versus the prior-year period. The decrease in sales was driven mostly by a decline in small-ag equipment demand.

Military

MEC holds the International Traffic in Arms Regulations (ITAR) certification and produces components for the United States military. Products include exhaust, engine components, cooling, fuel, suspension, structural systems and chemical agent resistant coating (CARC) painting capabilities.

Net sales to the military market were $8.6 million in the first quarter of 2023, an increase of 65.7% versus the prior-year period. Contributions from new programs, new vehicle introductions and demand associated with the conflict in Ukraine contributed to the year-over-year sales growth.

Other

MEC also produces a wide variety of components and assemblies for customers in the power generation, industrial equipment, mining, forestry, communications, and medical markets.

Net sales to other end markets for the first quarter of 2023 were $9.9 million, a decrease of 22.0% year-over-year. Sales in this market primarily relate to MEC Outdoors, tooling and additional miscellaneous markets.

STRATEGIC UPDATE

During the first quarter, MEC continued the rigorous implementation of its MEC Business Excellence (MBX) initiative, a value-creation framework designed to drive sustained operational and commercial excellence execution across all aspects of the organization. Upon full implementation, MEC expects MBX to drive improved margin capture, free cash generation and profitability over a multi-year period. For the full-year 2023, MEC expects to deliver between 40-70 basis points of manufacturing margin benefit related to MBX.

  • Drive a High-Performance Culture. The Company is focused on effectuating cultural change across its organization by implementing performance-based metrics, daily lean management and other process-oriented strategies. Through these efforts, the Company intends to create a high-performance culture capable of driving improved performance, asset utilization and cost optimization. During the first quarter, the Company finalized the implementation and alignment of processes and best-practices across the enterprise to drive strategic execution.
  • Drive Operational Excellence. The Company is focused on leveraging technologies and capabilities to increase productivity and reduce costs across the value chain. The Company intends to achieve this objective through the implementation of lean initiatives such as value stream mapping, sales, inventory and operations (SIOP) planning, and further optimization of its supply chain and procurement strategies. During the first quarter, the Company held a number of kaizen events to drive continuous improvement in plant operations and commercial pricing processes.
  • Drive Commercial Expansion. The Company is focused on driving commercial growth through an integrated, solutions-oriented approach that leverages its full suite of design, prototyping and aftermarket services; an expansion of its fabrication capabilities beyond steel, within an emphasis on lightweight aluminum, plastics and composites; diversification within high-growth energy transition markets; further market penetration within existing end-markets; and the implementation of value-based pricing. For example, during the first quarter, MEC continued to grow its share of wallet in products supporting thermal management of electric vehicle (EV) batteries. In addition, the company continued to expand market share within the EV category within its commercial vehicle market to meet consumer demand as OEMs launch new EV platforms. MEC continues to increase engagement in the EV markets and will continue to collaborate with new and potential customers to bring products to market.
  • Drive Human Resource Optimization. The Company remains focused on the recruitment and retention of skilled, experienced employees to support the growth of its business. This component of the MBX value creation framework is designed to provide competitive, performance-based incentives; develop high-potential candidates for internal development and advancement; ensure business continuity through multi-tiered succession planning; and to ensure a stable recruiting pipeline. During the first quarter, the Company announced the appointment of Rachele Lehr as Chief Human Resources Officer to spearhead the Company’s strategic human resource efforts.

BALANCE SHEET UPDATE

As of March 31, 2023, MEC had net debt outstanding of $83.8 million and total cash and availability on its senior secured revolving credit facility of $196.31 million. At the end of the first quarter, the ratio of net debt to trailing twelve-month Adjusted EBITDA was 1.4x, consistent with its long-term net leverage target of at or below 2.5x.

FINANCIAL GUIDANCE

The Company issued financial guidance for the full year 2023. All guidance is current as of the time provided and is subject to change.

 

 

 

 

 

 

 

FY 2022

 

FY 2023

(in Millions)

 

Actual

 

Forecast

Net Sales

 

$539.4

 

$540 - $580

Adjusted EBITDA

 

$60.8

 

$62 - $71

Capital Expenditures

 

$58.6

 

$20 - $25

_____________

1 This amount is reduced to approximately $114.7 million after taking into account the $81.6 million of outstanding borrowings under the credit facility as of March 31, 2023.

The underlying assumptions behind the Company’s financial guidance have not changed. The Company continues to expect net sales for 2023 to reflect raw material pass-through costs of between negative 4% to negative 5% of total net sales for the year, as compared to positive 5% to 6% of net sales for the full year 2022. The Company’s Adjusted EBITDA guidance reflects scrap income of between $7 million and $9 million, compared to $13 million in the full year 2022. Full-year 2023 Adjusted EBITDA guidance also reflects $4 million to $6 million of under-absorbed overhead costs associated with the ramp-up of production at the Company’s Hazel Park, Michigan manufacturing facility. The Company expects that the unfavorable impact from the ramp-up of production at Hazel Park will be partially offset by a 40 to 70 basis point improvement in manufacturing margins resulting from the MBX initiatives, which will directly benefit Adjusted EBITDA.

FIRST QUARTER 2023 RESULTS CONFERENCE CALL

The Company will host a conference call on Wednesday, May 3, 2023 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

For a live webcast of the conference call and to access the accompanying investor presentation, please visit www.mecinc.com and click on the link to the live webcast on the Investors page.

For telephone access to the conference, call (833) 470-1428 within the United States, or call (833) 950-0062 within Canada and please use the Access Code: 993353.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, rising interest rates and recessionary concerns, as well as ongoing supply chain challenges, labor availability and cost pressures, and the COVID-19 pandemic, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; volatility in the prices or availability of raw materials critical to our business; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; geopolitical and economic developments, including foreign trade relations and associated tariffs; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering; risks related to our employee stock ownership plan’s treatment as a tax-qualified retirement plan; and other factors described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

ABOUT MAYVILLE ENGINEERING COMPANY

Founded in 1945, Mayville Engineering Company (MEC) is a leading U.S.-based, vertically integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 20 facilities across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting.

NON-GAAP FINANCIAL MEASURES

This press release contains financial information calculated in a manner other than in accordance with U.S generally accepted accounting principles (“GAAP”).

The non-GAAP measures used in this press release are EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin.

EBITDA represents net income before interest expense, provision for income taxes, depreciation, and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period. Adjusted EBITDA represents EBITDA before stock-based compensation expense, Hazel Park transition and legal costs due to the former fitness customer and impairment charges on long-lived assets and gain on contracts specifically purchased to meet obligations under the agreement with our former fitness customer. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period. We present EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income, or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

Our calculation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to the similarly named measures reported by other companies. Potential differences between our measures of EBITDA and Adjusted EBITDA compared to other similar companies’ measures of EBITDA and Adjusted EBITDA may include differences in capital structure and tax positions.

Please reference our reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to EBITDA, Adjusted EBITDA and the calculation of EBITDA Margin and Adjusted EBITDA Margin included in this press release.

 

Mayville Engineering Company, Inc.

Consolidated Balance Sheet

(in thousands, except share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2023

 

2022

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

126

 

 

$

127

 

Receivables, net of allowances for doubtful accounts of $572 at March 31, 2023

and $545 at December 31, 2022

 

 

74,239

 

 

 

58,001

 

Inventories, net

 

 

68,948

 

 

 

71,708

 

Tooling in progress

 

 

8,039

 

 

 

7,938

 

Prepaid expenses and other current assets

 

 

3,470

 

 

 

3,529

 

Total current assets

 

 

154,822

 

 

 

141,303

 

Property, plant and equipment, net

 

 

142,956

 

 

 

145,771

 

Assets held for sale

 

 

81

 

 

 

83

 

Goodwill

 

 

71,535

 

 

 

71,535

 

Intangible assets, net

 

 

42,071

 

 

 

43,809

 

Operating lease assets

 

 

34,787

 

 

 

36,073

 

Other long-term assets

 

 

1,749

 

 

 

2,007

 

Total assets

 

$

448,001

 

 

$

440,581

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Accounts payable

 

$

52,376

 

 

$

53,735

 

Current portion of operating lease obligation

 

 

4,894

 

 

 

4,857

 

Accrued liabilities:

 

 

 

 

 

 

Salaries, wages, and payroll taxes

 

 

7,320

 

 

 

7,288

 

Profit sharing and bonus

 

 

1,137

 

 

 

6,860

 

Current portion of deferred compensation

 

 

17,802

 

 

 

18,062

 

Other current liabilities

 

 

12,645

 

 

 

11,646

 

Total current liabilities

 

 

96,174

 

 

 

102,448

 

Bank revolving credit notes

 

 

81,576

 

 

 

72,236

 

Operating lease obligation, less current maturities

 

 

30,648

 

 

 

31,891

 

Deferred compensation, less current portion

 

 

3,229

 

 

 

3,132

 

Deferred income tax liability

 

 

12,136

 

 

 

11,818

 

Other long-term liabilities

 

 

895

 

 

 

1,189

 

Total liabilities

 

$

224,658

 

 

$

222,714

 

Commitments and contingencies

 

 

 

 

 

 

Common shares, no par value, 75,000,000 authorized, 21,779,959 shares issued at

March 31, 2023 and 21,645,193 at December 31, 2022

 

 

 

 

 

 

Additional paid-in-capital

 

 

202,011

 

 

 

200,945

 

Retained earnings

 

 

28,845

 

 

 

26,274

 

Treasury shares at cost, 1,357,929 shares at March 31, 2023 and 1,472,447 at

December 31, 2022

 

 

(7,513

)

 

 

(9,352

)

Total shareholders’ equity

 

 

223,343

 

 

 

217,867

 

Total

 

$

448,001

 

 

$

440,581

 

 

Mayville Engineering Company, Inc.

Consolidated Statement of Net Income

(in thousands, except share amounts and per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2023

 

2022

Net sales

 

$

142,645

 

 

$

136,252

 

Cost of sales

 

 

126,268

 

 

 

121,370

 

Amortization of intangible assets

 

 

1,738

 

 

 

1,738

 

Profit sharing, bonuses, and deferred compensation

 

 

3,003

 

 

 

2,548

 

Employee stock ownership plan expense

 

 

 

 

 

490

 

Other selling, general and administrative expenses

 

 

6,966

 

 

 

5,725

 

Impairment of long-lived assets and gain on contracts

 

 

 

 

 

(1,183

)

Income from operations

 

 

4,670

 

 

 

5,564

 

Interest expense

 

 

(1,658

)

 

 

(567

)

Income before taxes

 

 

3,012

 

 

 

4,997

 

Income tax expense

 

 

441

 

 

 

1,175

 

Net income and comprehensive income

 

$

2,571

 

 

$

3,822

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

$

0.13

 

 

$

0.19

 

Diluted

 

$

0.12

 

 

$

0.19

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

Basic

 

 

20,315,338

 

 

 

20,398,933

 

Diluted

 

 

20,749,948

 

 

 

20,549,326

 

 

Mayville Engineering Company, Inc.

Consolidated Statement of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net income

 

$

2,571

 

$

3,822

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

6,142

 

 

5,468

Amortization

 

 

1,738

 

 

1,738

Allowance for doubtful accounts

 

 

27

 

 

106

Inventory excess and obsolescence reserve

 

 

11

 

 

174

Stock-based compensation expense

 

 

1,066

 

 

1,257

Gain on disposal of property, plant and equipment

 

 

(138)

 

 

(62)

Impairment of long-lived assets and gain on contracts

 

 

 

 

(1,183)

Deferred compensation

 

 

(163)

 

 

(2,176)

Non-cash lease expense

 

 

1,286

 

 

1,266

Other non-cash adjustments

 

 

83

 

 

77

Changes in operating assets and liabilities – net of effects of acquisition:

 

 

 

 

 

 

Accounts receivable

 

 

(16,265)

 

 

(17,088)

Inventories

 

 

2,749

 

 

(2,317)

Tooling in progress

 

 

(100)

 

 

(1,246)

Prepaids and other current assets

 

 

110

 

 

(216)

Accounts payable

 

 

(2,290)

 

 

10,526

Deferred income taxes

 

 

441

 

 

1,155

Operating lease obligations

 

 

(1,206)

 

 

(1,160)

Accrued liabilities

 

 

(2,105)

 

 

(566)

Net cash used in operating activities

 

 

(6,043)

 

 

(425)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(2,408)

 

 

(12,979)

Proceeds from sale of property, plant and equipment

 

 

153

 

 

359

Net cash used in investing activities

 

 

(2,255)

 

 

(12,620)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

Proceeds from bank revolving credit notes

 

 

119,700

 

 

118,156

Payments on bank revolving credit notes

 

 

(110,360)

 

 

(102,436)

Repayments of other long-term debt

 

 

(286)

 

 

(272)

Purchase of treasury stock

 

 

(661)

 

 

(2,323)

Payments on finance leases

 

 

(96)

 

 

(78)

Net cash provided by financing activities

 

 

8,297

 

 

13,047

Net increase (decrease) in cash and cash equivalents

 

 

(1)

 

 

2

Cash and cash equivalents at beginning of period

 

 

127

 

 

118

Cash and cash equivalents at end of period

 

$

126

 

$

120

 

Mayville Engineering Company, Inc.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

2023

 

 

2022

 

 

Net income and comprehensive income

 

$

2,571

 

 

$

3,822

 

 

Interest expense

 

 

1,658

 

 

 

567

 

 

Provision for income taxes

 

 

441

 

 

 

1,175

 

 

Depreciation and amortization

 

 

7,880

 

 

 

7,207

 

 

EBITDA

 

 

12,550

 

 

 

12,771

 

 

Stock-based compensation expense

 

 

1,066

 

 

 

1,257

 

 

Hazel Park transition and legal costs due to former fitness customer

 

 

224

 

 

 

1,927

 

 

Impairment of long-lived assets and gain on contracts

 

 

 

 

 

(1,183

)

 

Adjusted EBITDA

 

$

13,840

 

 

$

14,772

 

 

Net sales

 

$

142,645

 

 

$

136,252

 

 

EBITDA Margin

 

 

8.8

 

%

 

9.4

 

%

Adjusted EBITDA Margin

 

 

9.7

 

%

 

10.8

 

%

 

Contacts

INVESTOR CONTACT

Stefan Neely or Noel Ryan

(615) 844-6248

MEC@val-adv.com

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