mec(US:MEC)2023-05-03 19:00Financial Performance - Net sales for the three months ended March 31, 2023, were $142,645, an increase of $6,393 or 4.7% compared to $136,252 in the same period of 2022[112] - EBITDA for the three months ended March 31, 2023, was $12,550, a decrease of $221 or 1.7% from $12,771 in the same period of 2022[112] - Adjusted EBITDA decreased to $13,840 for the three months ended March 31, 2023, down $932 or 6.3% from $14,772 in the prior year[112] - Net income for the three months ended March 31, 2023, was $2,571, a decrease of $1,251 or 32.7% from $3,822 in the prior year[112] Expenses - Manufacturing margins increased to $16,377 for the three months ended March 31, 2023, up $1,495 or 10.0% from $14,882 in the prior year[113] - Interest expense rose significantly to $1,658 for the three months ended March 31, 2023, an increase of $1,091 or 192.4% compared to $567 in the same period of 2022[121] - Other selling, general and administrative expenses increased to $6,966 for the three months ended March 31, 2023, up $1,241 or 21.7% from $5,725 in the same period of 2022[117] - Profit sharing, bonuses, and deferred compensation expenses increased to $3,003 for the three months ended March 31, 2023, an increase of $455 or 17.9% from $2,548 in the prior year[115] Cash Flow - Net cash used in operating activities increased to $6,043 million for the three months ended March 31, 2023, compared to $425 million in the same period of 2022, representing a 1,322% increase[124] - Cash used in investing activities decreased to $2,255 million for the three months ended March 31, 2023, down from $12,620 million in the same period of 2022, a reduction of 82%[125] - Cash provided by financing activities was $8,297 million for the three months ended March 31, 2023, compared to $13,047 million in the same period of 2022, a decrease of 36%[126] Capital Expenditures - Capital expenditures were $2,408 million for the three months ended March 31, 2023, down from $12,979 million in the same period of 2022, a decrease of $10,571 million[137] - The company expects capital expenditures for the full year 2023 to be between $20,000 million and $25,000 million[137] Debt and Leverage - The company had $118,424 million available under the Revolving Loan as of March 31, 2023, with an additional $100,000 million capacity through an accordion feature[139] - The interest coverage ratio was 9.82 to 1.00 as of March 31, 2023, significantly above the required minimum of 3.00 to 1.00[134] - The consolidated total leverage ratio was 1.44 to 1.00 as of March 31, 2023, below the maximum allowed ratio of 3.25 to 1.00[134] - As of March 31, 2023, the interest rate on outstanding borrowings under the Revolving Loan was 6.19%[132] - A hypothetical 100-basis-point increase in interest rates would result in an additional $0.2 million of interest expense based on the variable rate debt as of March 31, 2023[148] Macroeconomic Conditions - The company experienced macroeconomic conditions including inflationary pressures on wages and manufacturing supplies, while material costs have stabilized[101] - The company’s federal net operating loss (NOL) carryforward was $21,210 as of March 31, 2023, which will be used to offset future pretax income[122]