Mayville Engineering Company, Inc. (NYSE:MEC) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET

Company Participants

Stefan Neely - Investor Relations

Jag Reddy - President and Chief Executive Officer

Todd Butz - Chief Financial Officer

Conference Call Participants

Joe Grabowski - Baird

Vlad Bystricky - Citi

Ted Jackson - Northland Securities

Tim Moore - EF Hutton

Operator

Hello and welcome to the Mayville Engineering Company’s Second Quarter 2023 Earnings Call. My name is Elliot and I will be coordinating your call today. [Operator Instructions] I would like to hand over to Stefan Neely with Vallum Advisors. The floor is yours. Please go ahead.

Stefan Neely

Thank you, operator. On behalf of our entire team, I’d like to welcome you to our second quarter 2023 results conference call. Leading the call today is MEC’s President and CEO, Jag Reddy; and Todd Butz, Chief Financial Officer. Today’s discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today’s forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission.

Except as required by law, we undertake no obligation to update our forward-looking statements. Further, this call will include the discussion of certain non-GAAP financial measures. Reconciliation of these measures to the closest GAAP financial measure is included in our quarterly earnings press release, which is available at mecinc.com. Following our prepared remarks, we will open the line for questions.

With that, I would like to turn the call over to Jag.

Jag Reddy

Thank you, Stefan, and welcome to those joining us on the call and webcast. Our second quarter results demonstrated favorable demand conditions across our key end markets, together with early benefits of targeted price actions, cost discipline and improved asset optimization. In recent months, we have experienced solid organic sales momentum across key customer accounts, which has supported improved utilization across our operations, a key area of focus for our entire leadership team.

Through our MBX value creation strategy, MEC has become an increasingly cash-generative business, focused on targeted commercial expansion within higher-value markets, improved operational efficiency and disciplined capital allocation. For the quarter, we have delivered more than $18 million in free cash flow, excluding a onetime deferred compensation payout, continuing to position us to fund a combination of organic and inorganic growth investments together with opportunistic open market repurchases of our common equity.