mec(US:MEC)2024-11-05 21:31Financial Performance - Net sales for Q3 2024 were $135.4 million, a decrease of 14.4% year-over-year[2]. - Net income for Q3 2024 was $3.0 million, or $0.14 per diluted share, an increase of $1.6 million compared to the prior year[2][8]. - Adjusted EBITDA was $17.1 million, a decrease of 11.2% year-over-year, with an adjusted EBITDA margin of 12.6%, an increase of 50 basis points[2][9]. - Free cash flow for Q3 2024 was $15.1 million, down from $16.1 million in the prior year[11]. - Net sales for the three months ended September 30, 2024, were $135,392 thousand, a decrease of 14.5% compared to $158,217 thousand for the same period in 2023[42]. - Net income for the nine months ended September 30, 2024, was $9,997 thousand, representing a 77.5% increase from $5,617 thousand for the same period in 2023[42]. - EBITDA for the nine months ended September 30, 2024, was $49,633 thousand, up 23.6% from $40,119 thousand for the same period in 2023[44]. - Adjusted EBITDA margin for the three months ended September 30, 2024, was 12.6%, compared to 12.1% for the same period in 2023[44]. - Free cash flow for the nine months ended September 30, 2024, was $42,094 thousand, compared to $3,882 thousand for the same period in 2023[46]. - The company reported a basic earnings per share of $0.49 for the nine months ended September 30, 2024, an increase from $0.28 for the same period in 2023[42]. Guidance and Projections - Full year 2024 net sales and Adjusted EBITDA guidance were reduced by 7% and 13%, respectively, at the midpoint of the range[3]. - The Company reiterated its guidance for FY 2024 Net Sales, forecasting a range of $620 million to $640 million, with a midpoint of $630 million[31]. - Adjusted EBITDA for FY 2024 is projected to be between $72 million and $76 million, with a midpoint of $74 million[31]. - Free Cash Flow for FY 2024 is expected to be between $45 million and $55 million[31]. - Capital expenditures for FY 2024 are now estimated to be between $13 million and $15 million, down from a previous estimate of $15 million to $20 million[32]. Cash and Debt Management - The company received a gross cash settlement of $25.5 million from a former customer, which will be used for debt repayment and share repurchases[4]. - As of September 30, 2024, the ratio of debt to trailing twelve-month Adjusted EBITDA was 1.6x, with total cash and availability exceeding $135 million[30]. - The company experienced a reduction in cash and cash equivalents from $672,000 at December 31, 2023, to $178,000 at September 30, 2024[41]. - The company had a net cash increase of $178 thousand at the end of the period, compared to $2,305 thousand at the end of the previous period[43]. - Interest expense decreased to $8,977 thousand for the nine months ended September 30, 2024, from $7,533 thousand for the same period in 2023[42]. Operational Changes - The company announced a permanent closure of the Wautoma, WI facility, with an estimated $1.0 to $3.0 million in annualized cost savings expected[2][3]. - MEC has booked approximately $80 million in new project wins, with launches occurring over the next two years[28]. - The Company reported actual Net Sales of $588.4 million for FY 2023[31]. - The Company maintains an extensive manufacturing infrastructure with 23 facilities across seven states[37]. Asset and Liability Overview - Total assets decreased from $496.7 million at December 31, 2023, to $466.0 million at September 30, 2024[41]. - Total liabilities decreased from $266.7 million at December 31, 2023, to $227.6 million at September 30, 2024[41]. - Retained earnings increased from $34.1 million at December 31, 2023, to $44.1 million at September 30, 2024[41].