mec(US:MEC)2020-05-06 14:02Financial Performance - Net sales for the three months ended March 31, 2020, were $108,605, a decrease of $35,127 or 24.4% compared to $143,732 for the same period in 2019, primarily due to market demand changes and COVID-19 related plant shutdowns [119] - EBITDA for the three months ended March 31, 2020, was $9,847, a decline of $3,863 or 28.2% from $13,710 in the same period of 2019 [119] - Adjusted EBITDA was $11,429 for the three months ended March 31, 2020, down $5,359 or 31.9% from $16,788 in the prior year [119] - The company experienced a net income of $50 for the three months ended March 31, 2020, a significant decrease of $2,409 or 98.0% from $2,459 in the prior year [119] - Net income and comprehensive income fell to $50 for the three months ended March 31, 2020, down $2,409 from $2,459 for the same period in 2019 [131] Margins and Expenses - Manufacturing margins decreased to $11,843 for the three months ended March 31, 2020, down $7,736 or 39.5% from $19,579 in the prior year, driven by lower sales volumes and approximately $900 of inventory obsolescence related to COVID-19 [120] - Manufacturing margin percentage was 10.9% for the three months ended March 31, 2020, a decline of 270 basis points from 13.6% in the same period of 2019 [122] - Other selling, general and administrative expenses decreased to $5,599 for the three months ended March 31, 2020, down $1,124 or 16.7% from $6,723 in the prior year [127] - Profit sharing, bonuses, and deferred compensation expenses were $1,325 for the three months ended March 31, 2020, a decrease of $425 or 24.3% compared to $1,750 in the same period of 2019 [124] - Employee stock ownership plan expense was $675 for the three months ended March 31, 2020, down $825 or 55.0% from $1,500 in the prior year, primarily due to a decrease in headcount [126] Cash Flow and Financing - Cash provided by operating activities increased by $4,133, or 275.5%, to $2,633 for the three months ended March 31, 2020, compared to cash used in operating activities of $1,500 for the same period in 2019 [134] - Cash used in investing activities decreased by $5,870, or 72.1%, to $2,272 for the three months ended March 31, 2020, compared to $8,142 for the same period in 2019 [135] - Cash provided by financing activities increased by $6,059, or 92.1%, to $12,639 for the three months ended March 31, 2020, compared to $6,580 for the same period in 2019 [136] - As of March 31, 2020, the company had $112.2 million available under the Revolving Loan and an additional $100,000 through an accordion feature under the A&R Credit Agreement [147] Capital Expenditures and Ratios - Capital expenditures for the full year 2020 are expected to be approximately $12,000 to $15,000, with a greater adverse impact from COVID-19 expected to push the company closer to the lower end of this range [146] - The company maintained an interest coverage ratio of 9.21 to 1.00 and a consolidated total leverage ratio of 1.84 to 1.00 as of March 31, 2020 [142] Interest Expense - Interest expense decreased to $826 for the three months ended March 31, 2020, down $2,006 or 70.8% from $2,832 in the same period of 2019 [119] - Interest expense decreased by $2,006, or 70.8%, to $826 for the three months ended March 31, 2020, compared to $2,832 for the same period in 2019 [129]