mec(US:MEC)2024-03-06 17:51Financial Performance Highlights - 4Q23 net sales increased by 156% year-over-year, driven by the MSA acquisition and stable demand, reaching $1486 million[46] - Adjusted EBITDA for 4Q23 increased by 53% year-over-year to $177 million, primarily due to improved organic volumes and the MSA acquisition[66] - The company achieved record quarterly free cash flow of $199 million in 4Q23[67] - Full year 2023 net sales grew by 91% to $5884 million[55] - Full year 2023 Adjusted EBITDA increased by 87% to $661 million[55] Strategic Initiatives and Impacts - The ramp-up of the Hazel Park facility unfavorably impacted Adjusted EBITDA by $13 million in 4Q23[3] - Labor Union strikes had a 70 basis point impact on the Adjusted EBITDA margin in 4Q23, and the Hazel Park ramp-up had an 85 basis point impact[4] - MBX initiatives drove $13 million in Adjusted EBITDA improvement during 4Q23[71] Future Outlook and Guidance - The company projects organic net sales growth of 15% to 25% for 2024, driven by new project launches and the Hazel Park ramp-up[91] - 2024 Adjusted EBITDA is projected to be between $72 million and $76 million, representing a 9% to 15% increase[76] - Free cash flow for 2024 is projected to be between $35 million and $45 million, a 47% to 89% increase[76] - The company is targeting a 2-year organic revenue CAGR of 10% - 15%[23] - The company is targeting a 2-Year Adjusted EBITDA margin expansion of 250bps – 400bps[38]