CHATTANOOGA, Tenn., May 3, 2023
/PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company")
today announced financial results for the first quarter ended
March 31, 2023.
For the first quarter of 2023, net sales were $282.3 million, an increase of 31.0%, compared to
$215.5 million for the first quarter
of 2022. Net income in the first quarter of 2023 was $9.2 million, or $0.81 per diluted share, compared to net income
of $2.1 million, or $0.18 per diluted share, in the prior year
period, for increases of 346.5% and 350.0%, respectively.
Gross profit for the first quarter of 2023 was $30.4 million, or 10.8% of net sales, compared to
$15.3 million, or 7.1% of net sales,
for the first quarter of 2022. Selling, general and administrative
expenses were $17.9 million, or 6.3%
of net sales, compared to $12.4
million, or 5.7% of net sales, in the prior year period.
The current quarter expense includes approximately
$1.1 million of non-recurring legal
and professional fees.
The Company also announced that its Board of Directors has
declared a quarterly cash dividend of $0.18 per share, payable June 12, 2023, to shareholders of record at the
close of business on June 5, 2023,
the fiftieth consecutive quarter that the Company has paid a
dividend.
"We had a promising start to fiscal 2023, as our topline growth
accelerated and supply chain conditions continued to improve," said
William G. Miller, II, Chief
Executive Officer of the Company. "Our sales growth reflected
strong demand for our products in the marketplace as our backlog
remains strong with no customer cancelations in 2023 to date
despite the challenging macro environment. Due to the strong demand
environment, we believe that investing in accumulating inventory of
component parts and goods near completion continues to be the best
use of our cash in the current environment."
Mr. Miller continued, "We have seen improvements in the
availability of component parts and stabilization of costs for some
raw materials and freight this quarter. We continue to make
investments in automation, productivity, and training for our
employees, as well as pursue opportunities to vertically integrate,
where feasible, to improve our operations and margin profile."
"Our first quarter results are an example of what we believe we
can achieve going forward. Not only have we taken significant steps
to improve our financial performance, including the recent
reduction of our outstanding debt by $5.0
million, we have also taken the necessary steps to ensure
that Miller Industries is positioned for success for many years to
come. During the quarter, as part of our Board refreshment
process, we announced improvements to our governance structure,
appointing four additional highly qualified independent directors
to our Board. We are grateful to have the new directors' fresh
perspectives and are confident that their appointment will enhance
our business strategy going forward. The strong first quarter
performance gives us confidence in our ability to achieve our
$1 billion revenue target in 2023 and
improve profitability over the prior year," concluded Mr. Miller
II.
The Company will host a conference call, which will be
simultaneously broadcast live over the Internet. The call is
scheduled for tomorrow, May 4, 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/1XqdJL0Jxrg
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 May 11, 2023. The
replay number is 1-844-512-2921, Passcode 10177418.
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 margins. 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 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); 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, 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; 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 referenced herein, and those 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, 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
|
|
|
|
March 31
|
|
|
|
|
|
|
|
|
%
|
|
|
|
2023
|
|
|
2022
|
|
Change
|
NET
SALES
|
|
$
|
282,275
|
|
$
|
215,545
|
|
31.0 %
|
|
|
|
|
|
|
|
|
|
COSTS OF
OPERATIONS
|
|
|
251,858
|
|
|
200,205
|
|
25.8 %
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
30,417
|
|
|
15,340
|
|
98.3 %
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
|
17,924
|
|
|
12,386
|
|
44.7 %
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
(INCOME) EXPENSES:
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
|
1,012
|
|
|
418
|
|
142.1 %
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense,
Net
|
|
|
(318)
|
|
|
52
|
|
(711.5) %
|
|
|
|
|
|
|
|
|
|
Total Expense,
Net
|
|
|
18,618
|
|
|
12,856
|
|
44.8 %
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
|
11,799
|
|
|
2,484
|
|
375.0 %
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
|
2,579
|
|
|
419
|
|
515.5 %
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
9,220
|
|
$
|
2,065
|
|
346.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC INCOME PER
COMMON SHARE
|
|
$
|
0.81
|
|
$
|
0.18
|
|
350.0 %
|
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER
COMMON SHARE
|
|
$
|
0.81
|
|
$
|
0.18
|
|
350.0 %
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS
DECLARED PER COMMON SHARE
|
|
$
|
0.18
|
|
$
|
0.18
|
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,425
|
|
|
11,417
|
|
0.1 %
|
Diluted
|
|
|
11,431
|
|
|
11,421
|
|
0.1 %
|
Miller Industries,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
|
|
March 31,
|
|
|
|
2023
|
|
December 31,
|
|
(Unaudited)
|
|
2022
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and temporary
investments
|
$
|
29,720
|
|
$
|
40,153
|
Accounts receivable,
net of allowance for credit losses of $1,364 and $1,319 at
March 31, 2023 and December 31, 2022,
respectively
|
|
233,115
|
|
|
177,663
|
Inventories,
net
|
|
164,431
|
|
|
153,656
|
Prepaid
expenses
|
|
6,771
|
|
|
4,576
|
Total current
assets
|
|
434,037
|
|
|
376,048
|
NONCURRENT
ASSETS:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
110,976
|
|
|
112,145
|
Right-of-use assets -
operating leases
|
|
847
|
|
|
909
|
Goodwill
|
|
11,619
|
|
|
11,619
|
Other assets
|
|
686
|
|
|
708
|
TOTAL
ASSETS
|
$
|
558,165
|
|
$
|
501,429
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
169,458
|
|
$
|
125,500
|
Accrued
liabilities
|
|
30,264
|
|
|
27,904
|
Income taxes
payable
|
|
4,741
|
|
|
2,430
|
Current portion of
operating lease obligation
|
|
307
|
|
|
311
|
Current portion of
finance lease obligation
|
|
—
|
|
|
—
|
Total current
liabilities
|
|
204,770
|
|
|
156,145
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
Long-term
obligations
|
|
45,000
|
|
|
45,000
|
Noncurrent portion of
operating lease obligation
|
|
569
|
|
|
597
|
Deferred income tax
liabilities
|
|
6,159
|
|
|
6,230
|
Total
liabilities
|
|
256,498
|
|
|
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, 11,441,036 and 11,416,716
outstanding at March 31, 2023 and
December 31, 2022, respectively
|
|
114
|
|
|
114
|
Additional paid-in
capital
|
|
152,462
|
|
|
152,392
|
Accumulated
surplus
|
|
157,285
|
|
|
150,124
|
Accumulated other
comprehensive loss
|
|
(8,194)
|
|
|
(9,173)
|
Total shareholders'
equity
|
|
301,667
|
|
|
293,457
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
|
558,165
|
|
$
|
501,429
|
View original
content:https://www.prnewswire.com/news-releases/miller-industries-reports-2023-first-quarter-results-301815048.html
SOURCE Miller Industries, Inc.