CHATTANOOGA, Tenn., Nov. 8, 2023
/PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company")
today announced financial results for the third quarter ended
September 30, 2023.
For the third quarter of 2023, net sales were $274.6 million, an increase of 33.6%, compared to
$205.6 million for the third quarter
of 2022. The year over year improvement was predominantly due to
execution against the Company's strategic initiatives in the form
of improved deliveries of finished goods to our customers.
Gross profit for the third quarter of 2023 was $42.9 million, or 15.6% of net sales, compared to
$23.2 million, or 11.3% of net sales,
for the third quarter of 2022. The increase in gross margin was
driven largely by productivity improvements, the stabilization of
raw material costs, and a more favorable product mix compared to
the prior year.
Selling, general and administrative expenses were $19.3 million, or 7.0% of net sales, compared to
$14.7 million, or 7.1% of net sales,
in the prior year period. The increase in selling, general and
administrative expenses compared to the prior year was due largely
to increases in bonus accruals associated with increased pretax
income, as well as investments in the training and retention of the
Company's workforce.
Net income in the third quarter of 2023 was $17.5 million, or $1.52 per diluted share, compared to net income
of $5.2 million, or $0.46 per diluted share, in the prior year
period, for increases of 233.7% and 230.4%, respectively.
The Company also announced that its Board of Directors has
declared a quarterly cash dividend of $0.18 per share, payable December 11, 2023, to shareholders of record at
the close of business on December 4,
2023, the fifty-second consecutive quarter that the Company
has paid a dividend.
"I am pleased to report yet another strong quarter in 2023, with
substantial year over year improvements in almost every aspect of
our business," said William G. Miller,
II, Chief Executive Officer of the Company. "Our long-term
capital investments to increase capacity, foster innovation and
achieve operational excellence are reflected in our performance,
and are indicative of our commitment to shareholder return."
"We continue to see strong demand for all of our products,
across all of our geographies. Despite our significant sales
growth, we still have a healthy backlog that is substantially more
than our historical levels. Though we still face supply chain
disruptions related to chassis and electrical and hydraulic
components, we believe we are well positioned to convert inventory
into finished goods and deliver product to our customers as final
parts and components are delivered. This strategy should not only
improve the speed with which we convert inventory to revenue, but
also improves our efficiency, and therefore our margins. Our
strategy of investing in inventory has served us well thus far
exiting the pandemic and resulting supply chain challenges and I am
confident that it will continue to do so," continued Mr. Miller,
II.
Mr. Miller, II, concluded, "I'd like to close by thanking our
extremely dedicated team that has been crucial to our success in
the face of many headwinds over the last 24 months. Because of
their commitment, in just the first nine months of 2023 alone, we
have already surpassed the Company's previous full year revenue and
earnings record. With the strength we've demonstrated so far in
2023, we look forward to finishing the year on a high by hitting
our target of over $1 billion of
annual revenue, with significant year over year improvements in
both gross margin and net income."
The Company will host a conference call, which will be
simultaneously broadcast live over the Internet. The call is
scheduled for tomorrow, November 9,
2023, at 10:00 AM ET.
Listeners can access the conference call live and archived over the
Internet through the following link:
https://app.webinar.net/boLQyVQr79k
Please allow 15 minutes prior to the call to visit the site,
download, and install any necessary audio software. A replay of
this call will be available approximately one hour after the live
call ends through November 16, 2023.
The replay number is 1-844-512-2921, Passcode 13742138.
About Miller Industries
Miller Industries is The World's Largest Manufacturer of Towing
and Recovery Equipment®, and markets its towing and recovery
equipment under a number of well-recognized brands, including
Century®, Vulcan®, Chevron™, Holmes®, Challenger®, Champion®,
Jige™, Boniface™, Titan® and Eagle®.
Certain statements in this news release may be deemed to be
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by the use of words such as "may," "will," "should,"
"could," "continue," "future," "potential," "believe," "project,"
"plan," "intend," "seek," "estimate," "predict," "expect,"
"anticipate" and similar expressions, or the negative of such
terms, or other comparable terminology and include without
limitation any statements relating to the Company's 2023 revenues
or profitability. Forward-looking statements also include the
assumptions underlying or relating to any of the foregoing
statements. Such forward-looking statements are made based on our
management's beliefs as well as assumptions made by, and
information currently available to, our management. Our actual
results may differ materially from the results anticipated in these
forward-looking statements due to, among other things: changes in
price, delivery delays and decreased availability of component
parts, chassis and raw materials, including aluminum, steel, and
petroleum-related products, resulting from changes in demand and
market conditions, the general inflationary environment, the war in
Ukraine and the more recent
conflict in the Middle East, and
the lingering effects of the COVID-19 pandemic on supply chains;
economic and market conditions, including the negative impacts on
the Company's customers, suppliers and employees from increasing
inflationary pressures, economic and geopolitical uncertainties
(including the war in Ukraine and
the more recent conflict in the Middle
East); our dependence upon outside suppliers for purchased
component parts, chassis and raw materials, including aluminum,
steel, and petroleum-related products; future impacts resulting
from the war in Ukraine and the
more recent conflict in the Middle
East, which include or could include (among other effects)
disruption in global commodity and other markets, increased prices
for energy, supply shortages and supplier financial risk; increased
labor costs and the ability to attract and retain skilled labor to
manufacture our products; the potential negative impacts of higher
interest rates and other actions taken by the federal government in
response to economic volatility and inflationary pressures,
including the impact on our customers' and end users' access to
capital and credit to fund purchases; our ability to raise capital,
including to grow our business, pursue strategic investments, and
take advantage of financing or other opportunities that we believe
to be in the best interests of the Company and our shareholders due
to the significant additional indebtedness we incurred during 2022
and 2023; the cyclical nature of our industry and changes in
consumer confidence; special risks from our sales to U.S. and other
governmental entities through prime contractors; changes in fuel
and other transportation costs, insurance costs and weather
conditions; changes in government regulations, including
environmental and health and safety regulations; failure to comply
with domestic and foreign anti-corruption laws; competition in our
industry and our ability to attract or retain customers; our
ability to develop or acquire proprietary products and technology;
assertions against us relating to intellectual property rights;
changes in foreign currency exchange rates and interest rates;
changes in the tax regimes and related government policies and
regulations in the countries in which we operate; the effects of
regulations relating to conflict minerals; the catastrophic loss of
one of our manufacturing facilities; environmental and health and
safety liabilities and requirements; loss of the services of our
key executives; product warranty or product liability claims in
excess of our insurance coverage; potential recalls of components
or parts manufactured for us by suppliers or potential recalls of
defective products; an inability to acquire insurance at
commercially reasonable rates; a disruption in, or breach in
security of, our information technology systems or any violation of
data protection laws; and those other risks discussed in our
filings with the Securities and Exchange Commission, including
those risks discussed under the caption "Risk Factors" in our
Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by Item 1A in
our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023, which discussion
is incorporated herein by this reference. Such factors are not
exclusive. We do not undertake to update any forward-looking
statement that may be made from time to time by, or on behalf of,
the Company.
MILLER INDUSTRIES,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
NET
SALES
|
$
|
274,568
|
|
$
|
205,557
|
|
33.6 %
|
|
$
|
857,108
|
|
$
|
622,602
|
|
37.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF
OPERATIONS
|
|
231,700
|
|
|
182,377
|
|
27.0 %
|
|
|
743,894
|
|
|
565,708
|
|
31.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
42,868
|
|
|
23,180
|
|
84.9 %
|
|
|
113,214
|
|
|
56,894
|
|
99.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
19,318
|
|
|
14,673
|
|
31.7 %
|
|
|
56,721
|
|
|
39,710
|
|
42.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
(INCOME) EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
1,813
|
|
|
1,042
|
|
73.9 %
|
|
|
4,525
|
|
|
2,088
|
|
116.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense,
Net
|
|
(294)
|
|
|
666
|
|
-144.2 %
|
|
|
(842)
|
|
|
993
|
|
-184.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expense,
Net
|
|
20,837
|
|
|
16,381
|
|
27.2 %
|
|
|
60,404
|
|
|
42,791
|
|
41.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
22,031
|
|
|
6,799
|
|
224.0 %
|
|
|
52,810
|
|
|
14,103
|
|
274.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
4,572
|
|
|
1,567
|
|
191.8 %
|
|
|
11,214
|
|
|
3,049
|
|
267.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
|
17,459
|
|
$
|
5,232
|
|
233.7 %
|
|
$
|
41,596
|
|
$
|
11,054
|
|
276.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC INCOME PER
COMMON SHARE
|
$
|
1.53
|
|
$
|
0.46
|
|
232.6 %
|
|
$
|
3.64
|
|
$
|
0.97
|
|
275.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER
COMMON SHARE
|
$
|
1.52
|
|
$
|
0.46
|
|
230.4 %
|
|
$
|
3.62
|
|
$
|
0.97
|
|
273.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS
DECLARED PER
COMMON SHARE
|
$
|
0.18
|
|
$
|
0.18
|
|
0.0 %
|
|
$
|
0.54
|
|
$
|
0.54
|
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,446
|
|
|
11,417
|
|
0.3 %
|
|
|
11,437
|
|
|
11,417
|
|
0.2 %
|
Diluted
|
|
11,515
|
|
|
11,417
|
|
0.9 %
|
|
|
11,495
|
|
|
11,418
|
|
0.7 %
|
MILLER
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands,
except share data)
|
|
|
|
September 30,
|
|
|
|
|
|
|
2023
|
|
December 31,
|
|
|
|
(Unaudited)
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and temporary
investments
|
|
$
|
26,847
|
|
$
|
40,153
|
|
Accounts receivable,
net of allowance for credit losses of $1,472 and $1,319 at
September 30, 2023 and December 31, 2022,
respectively
|
|
|
240,590
|
|
|
177,663
|
|
Inventories,
net
|
|
|
176,329
|
|
|
153,656
|
|
Prepaid
expenses
|
|
|
5,343
|
|
|
4,576
|
|
Total current
assets
|
|
|
449,109
|
|
|
376,048
|
|
NONCURRENT
ASSETS:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
116,216
|
|
|
112,145
|
|
Right-of-use assets -
operating leases
|
|
|
705
|
|
|
909
|
|
Goodwill
|
|
|
20,594
|
|
|
11,619
|
|
Other assets
|
|
|
782
|
|
|
708
|
|
TOTAL
ASSETS
|
|
$
|
587,406
|
|
$
|
501,429
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
146,790
|
|
$
|
125,500
|
|
Accrued
liabilities
|
|
|
40,228
|
|
|
27,904
|
|
Income taxes
payable
|
|
|
1,214
|
|
|
2,430
|
|
Current portion of
operating lease obligation
|
|
|
282
|
|
|
311
|
|
Total current
liabilities
|
|
|
188,514
|
|
|
156,145
|
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
60,000
|
|
|
45,000
|
|
Noncurrent portion of
operating lease obligation
|
|
|
422
|
|
|
597
|
|
Deferred income tax
liabilities
|
|
|
6,085
|
|
|
6,230
|
|
Total
liabilities
|
|
|
255,021
|
|
|
207,972
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Preferred stock, $0.01
par value; 5,000,000 shares authorized, none issued or
outstanding
|
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par
value; 100,000,000 shares authorized, 11,445,640 and 11,416,716
outstanding at September 30, 2023 and
December 31, 2022, respectively
|
|
|
114
|
|
|
114
|
|
Additional paid-in
capital
|
|
|
153,191
|
|
|
152,392
|
|
Accumulated
surplus
|
|
|
185,541
|
|
|
150,124
|
|
Accumulated other
comprehensive loss
|
|
|
(6,461)
|
|
|
(9,173)
|
|
Total
shareholders' equity
|
|
|
332,385
|
|
|
293,457
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
587,406
|
|
$
|
501,429
|
|
View original
content:https://www.prnewswire.com/news-releases/miller-industries-reports-2023-third-quarter-results-301982188.html
SOURCE Miller Industries, Inc.