Mayville Engineering Company, Inc. (NYSE:MEC) Q4 2022 Earnings Conference Call March 1, 2023 10:00 AM ET
Company Participants
Noel Ryan - Head of IR, Vallum Advisors
Jag Reddy - President and CEO
Todd Butz - CFO
Ryan Raber - EVP, Strategy, Sales and Marketing
Conference Call Participants
Larry De Maria - William Blair
Operator
Good morning. Thank you for attending today's Mayville Engineering Company Fourth 2022 Earnings Conference Call. My name is Alisha and I will be your moderator for today's call [Operator Instructions].
I would now like to pass the conference over to your host, Noel Ryan with Vallum. You may now proceed.
Noel Ryan
Thank you, operator. On behalf of our entire team, I'd like to welcome you to our fourth quarter '22 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 risk 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'll open the line for questions.
And with that, I would like to turn the call over to Jag.
Jag Reddy
Thank you, Noel all and welcome to those joining us. Today, I will provide a high level review of our fourth quarter and full year performance. This will be followed by an update on demand conditions across each of our end markets and a progress update on our MBX initiative.
During the fourth quarter, we continue to build on the momentum evident across our business, highlighted by 13.8% year-over-year net sales growth and 26.2% year-over-year adjusted EBITDA growth. Total sales volumes increased 13.3% on a year-over-year basis in the fourth quarter, driven by broad-based demand across most end markets, but partially offset by continued disruptions in our customer supply chains. We also benefited from targeted commercial price increases in the period, which more than offset general inflationary pressures on labor and other product content.
For the fourth quarter, our adjusted EBITDA margin increased 240 basis points to 10.5% when compared to the year ago period, when excluding the impact of the planned production ramp at our Hazel Park facility. For the full year 2022, we delivered significant year-over-year growth in net sales, adjusted EBITDA and net income.