Mayville Engineering Company, Inc. (NYSE:MEC) Q3 2022 Earnings Conference Call November 2, 2022 10:00 AM ET

Company Participants

Nathan Elwell - IR

Jag Reddy - President and CEO

Todd Butz - CFO

Ryan Raber - EVP, Strategy, Sales and Marketing

Conference Call Participants

Vlad Bystricky - Citigroup

Mig Dobre - Baird

Operator

Good morning, and thank you for attending today's Mayville Engineering Company 2022 Earnings Conference Call. My name is Daniel and I will be your moderator for today's call [Operator Instructions].

I would now like to pass the conference over to our host, Nathan Elwell. Nathan, please proceed.

Nathan Elwell

Thank you. Welcome everyone, and thank you for joining us on today's call. A few quick items before we begin. First, please note that some of the information that you will hear during this call will consist of forward-looking statements within the meaning of Section 21(a) of the Securities Exchange Act of 1934 as amended. Such statements express our expectations, anticipations, beliefs, estimates, intentions, plans and forecasts. Because these forward-looking statements involve risks, assumptions and uncertainties, and our actual results could differ materially from those in the forward-looking events.

For more information regarding such risks and uncertainties, please see our filings with the Securities and Exchange Commission, including our filings on Form 10-K for the period ended December 31, 2021. We assume no obligation and do not intend to update any such forward-looking statements, except as required by federal securities laws.

Second, this call will involve a discussion of certain non-GAAP financial measures. Reconciliation of these measures to the closest GAAP financial measure is included in the earnings press release, which is available at mecinc.com.

Joining me on the call today are Jag Reddy, President and Chief Executive Officer; Todd Butz, Chief Financial Officer, Rand Stille, Chief Operating Officer and Ryan Raber, EVP of Strategy, Sales & Marketing.

Jag will begin with his thoughts on the quarter and the end markets we serve, new business and future plans, followed by Todd, who will review the financial results and guidance. Please note that accompanying slides are available via the webcast and on the Investors section of the company's website at mecinc.com.

With that, I'll hand the call over to Jag, please go ahead.

Jag Reddy

Thank you, Nathan, and Good morning, everyone. I'm on Slide three. Our team executed effectively this quarter, producing strong improvements across the board. Net sales grew approximately 25%. Adjusted EBITDA increased approximately 61% and our net income increased significantly when compared to the third quarter of 2021. The improvements were primarily driven by volume growth, commercial pricing increases and better absorption of manufacturing costs. I am pleased to report that we commenced production at our state-of-the-art facility in Hazel Park, Michigan during the quarter as planned.