mec(US:MEC)2025-03-04 21:30Financial Performance - Net sales for Q4 2024 were $121.3 million, a decrease of 18.4% year-over-year, primarily due to reduced customer demand and inventory de-stocking[5]. - Net income for Q4 2024 was $16.0 million, or $0.76 per diluted share, compared to $2.2 million, or $0.11 per diluted share, in the prior-year period, reflecting a $25.5 million gain from a lawsuit settlement[9]. - Adjusted EBITDA for Q4 2024 was $9.2 million, representing a margin of 7.6% of net sales, down from $17.7 million and 11.9% in the prior-year period[10]. - Free cash flow for Q4 2024 was $35.6 million, significantly up from $19.9 million in the prior year, largely due to the settlement agreement[12]. - For the twelve months ended December 31, 2024, net sales were $581.6 million, a decrease of 1.4% from $588.4 million in 2023[41]. - The company reported a net income of $25.968 million for the twelve months ended December 31, 2024, compared to $7.844 million in 2023, representing a significant increase[41]. - EBITDA for the twelve months ended December 31, 2024, was not explicitly stated but can be inferred from the net income and adjustments, indicating improved operational performance[36]. - Net income for Q4 2024 was $15,971,000, a significant increase from $2,227,000 in Q4 2023, representing a growth of 619%[45]. - EBITDA for Q4 2024 reached $32,507,000, compared to $14,936,000 in Q4 2023, marking an increase of 117%[45]. - Net sales for the twelve months ended December 31, 2024, were $581,604,000, slightly down from $588,425,000 in 2023, a decrease of 1.4%[45]. - Adjusted EBITDA margin for Q4 2024 was 7.6%, down from 11.9% in Q4 2023, indicating a decline of 36%[45]. - Free cash flow for Q4 2024 was $35,614,000, an increase of 79% from $19,883,000 in Q4 2023[49]. - Interest expense for the twelve months ended December 31, 2024, was $10,989,000, a slight decrease from $11,092,000 in 2023[45]. Market Performance - Sales to the commercial vehicle market were $47.2 million in Q4 2024, a decrease of 10.5% year-over-year, reflecting lower customer demand[15]. - Sales to the agriculture market fell by 46.5% year-over-year to $7.7 million, driven by reduced demand and inventory de-stocking[21]. - Sales to other end markets increased by 11% year-over-year to $24.6 million, attributed to growth in aluminum extrusion products and new customer projects[24]. - In 2024, the company secured over $100 million in new business wins, a 12% increase from the previous year, indicating growth in emerging markets[4]. Financial Health - The company repaid over $31 million in debt during Q4 2024, reducing net leverage to 1.3x[26]. - Total current assets decreased to $112.944 million as of December 31, 2024, down from $134.623 million in 2023, reflecting a reduction in cash and inventories[39]. - The company’s total liabilities decreased to $193.817 million as of December 31, 2024, compared to $266.683 million in 2023, indicating improved financial health[39]. - Cash and cash equivalents at the end of the period were $206,000, down from $672,000 at the end of 2023, highlighting liquidity challenges[43]. - The company’s operating cash flow for the twelve months ended December 31, 2024, was $89.807 million, significantly higher than $40.363 million in 2023, indicating stronger cash generation[43]. Legal and Restructuring - The company experienced a gain on lawsuit settlement of $25.5 million in the three months ended December 31, 2024, contributing to the increase in net income[41]. - The company reported a lawsuit settlement gain of $(25,500,000) in Q4 2024, impacting net income negatively[47]. - The company incurred $492,000 in Wautoma restructuring charges in Q4 2024, with no charges reported in Q4 2023[45]. Compensation and Taxation - Stock-based compensation expense for the twelve months ended December 31, 2024, was $5,186,000, up from $4,485,000 in 2023, an increase of 15.6%[45]. - The provision for income taxes for Q4 2024 was $5,064,000, compared to a benefit of $(432,000) in Q4 2023[45]. Operational Capabilities - The company has 23 manufacturing facilities, with 22 currently in use, supporting its diverse end markets and operational capabilities[34].