CHATTANOOGA, Tenn., Aug. 9, 2023
/PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company")
today announced financial results for the second quarter ended
June 30, 2023.
For the second quarter of 2023, net sales were $300.3 million, an increase of 49.0%, compared to
$201.5 million for the second quarter
of 2022. Net income in the second quarter of 2023 was $14.9 million, or $1.29 per diluted share, compared to net income
of $3.8 million, or $0.33 per diluted share, in the prior year
period, for increases of 297.0% and 290.9%, respectively.
Gross profit for the second quarter of 2023 was $39.9 million, or 13.3% of net sales, compared to
$18.4 million, or 9.1% of net sales,
for the second quarter of 2022. Selling, general and administrative
expenses were $19.5 million, or 6.5%
of net sales, compared to $12.7
million, or 6.3% of net sales, in the prior year
period. The year over year increase was primarily due to
updates to the Company's executive compensation structure, as well
as 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 September 11, 2023, to shareholders of record at
the close of business on September 1,
2023, the fifty-first consecutive quarter that the Company
has paid a dividend.
"I am pleased with our strong second quarter results, which
demonstrates the robust, profitable growth that our business is
capable of," said William G. Miller,
II, Chief Executive Officer of the Company. "Our topline
strength reflects improved delivery of finished goods, as our team
and our distributors have continued to adapt to the current supply
chain environment. Market demand for our products remains resilient
and we are pleased that even with significant improvements in
product delivery, our backlog remains at near record levels, with
no significant customer cancellations to date this year."
Mr. Miller continued, "In May we also closed on the acquisition
of Southern Hydraulic Cylinder Inc., a custom hydraulic cylinder
manufacturer in Athens, Tennessee.
This acquisition bolsters our efforts to enhance the stability of
our supply chain through vertical integration. It has already
opened up new opportunities to deliver finished goods more quickly
to customers, while simultaneously reducing levels of finished
goods in inventory and enabling efficient management of our working
capital. As we move forward, we will continue to strategically
deploy capital and optimize our operations, however, our top
priority is reducing our debt balance."
"Based on our second quarter results, it is evident that the
strategic improvements we have made in our business over the last
few quarters are bearing fruit. We are realizing the benefits from
the price adjustments implemented last year to mirror our changing
costs, the steps we have taken to improve our supply chain, and the
efforts we have made to improve production efficiency. All of this
gives us assurance in our long-term potential. Based on our solid
performance in the first half of 2023, we are comfortable in our
ability to achieve the financial targets we set earlier this year –
generating over $1 billion of
revenue, with significant improvements in year-over-year
profitability," concluded Mr. Miller.
The Company will host a conference call, which will be
simultaneously broadcast live over the Internet. The call is
scheduled for tomorrow, August 10,
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/vpoelY2XVqj
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 August 17, 2023.
The replay number is 1-844-512-2921, Passcode 13739970.
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 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 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
|
|
Six Months
Ended
|
|
|
|
June 30
|
|
June 30
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
|
300,264
|
|
$
|
201,500
|
|
$
|
582,539
|
|
$
|
417,045
|
|
COSTS OF
OPERATIONS
|
|
|
260,335
|
|
|
183,126
|
|
|
512,194
|
|
|
383,331
|
|
GROSS
PROFIT
|
|
|
39,929
|
|
|
18,374
|
|
|
70,345
|
|
|
33,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
19,480
|
|
|
12,651
|
|
|
37,403
|
|
|
25,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
(INCOME) EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
1,700
|
|
|
628
|
|
|
2,713
|
|
|
1,046
|
|
Other (income) expense,
net
|
|
|
(229)
|
|
|
275
|
|
|
(548)
|
|
|
327
|
|
Total expense,
net
|
|
|
20,951
|
|
|
13,554
|
|
|
39,568
|
|
|
26,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
18,978
|
|
|
4,820
|
|
|
30,777
|
|
|
7,304
|
|
INCOME TAX
PROVISION
|
|
|
4,063
|
|
|
1,063
|
|
|
6,642
|
|
|
1,482
|
|
NET
INCOME
|
|
$
|
14,915
|
|
$
|
3,757
|
|
$
|
24,135
|
|
$
|
5,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC INCOME PER
COMMON SHARE
|
|
$
|
1.30
|
|
$
|
0.33
|
|
$
|
2.11
|
|
$
|
0.51
|
|
DILUTED INCOME PER
COMMON SHARE
|
|
$
|
1.29
|
|
$
|
0.33
|
|
$
|
2.10
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS
DECLARED PER COMMON SHARE
|
|
$
|
0.18
|
|
$
|
0.18
|
|
$
|
0.36
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,466
|
|
|
11,417
|
|
|
11,425
|
|
|
11,417
|
|
Diluted
|
|
|
11,526
|
|
|
11,417
|
|
|
11,477
|
|
|
11,421
|
|
MILLER INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands,
except share data)
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2023
|
|
December 31,
|
|
|
|
(Unaudited)
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and temporary
investments
|
|
$
|
30,502
|
|
$
|
40,153
|
|
Accounts receivable,
net of allowance for credit losses of $1,412 and $1,319 at June 30,
2023 and
December 31, 2022,
respectively
|
|
|
264,542
|
|
|
177,663
|
|
Inventories,
net
|
|
|
167,458
|
|
|
153,656
|
|
Prepaid
expenses
|
|
|
6,393
|
|
|
4,576
|
|
Total current
assets
|
|
|
468,895
|
|
|
376,048
|
|
NONCURRENT
ASSETS:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
116,055
|
|
|
112,145
|
|
Right-of-use assets -
operating leases
|
|
|
770
|
|
|
909
|
|
Goodwill
|
|
|
20,594
|
|
|
11,619
|
|
Other assets
|
|
|
681
|
|
|
708
|
|
TOTAL
ASSETS
|
|
$
|
606,995
|
|
$
|
501,429
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
188,869
|
|
$
|
125,500
|
|
Accrued
liabilities
|
|
|
34,537
|
|
|
27,904
|
|
Income taxes
payable
|
|
|
882
|
|
|
2,430
|
|
Current portion of
operating lease obligation
|
|
|
311
|
|
|
311
|
|
Total current
liabilities
|
|
|
224,599
|
|
|
156,145
|
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Long-term
obligations
|
|
|
60,000
|
|
|
45,000
|
|
Noncurrent portion of
operating lease obligation
|
|
|
496
|
|
|
597
|
|
Deferred income tax
liabilities
|
|
|
6,182
|
|
|
6,230
|
|
Total
liabilities
|
|
|
291,277
|
|
|
207,972
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30,
2023 and December 31, 2022, respectively
|
|
|
114
|
|
|
114
|
|
Additional paid-in
capital
|
|
|
152,746
|
|
|
152,392
|
|
Accumulated
surplus
|
|
|
170,141
|
|
|
150,124
|
|
Accumulated other
comprehensive loss
|
|
|
(7,283)
|
|
|
(9,173)
|
|
Total
shareholders' equity
|
|
|
315,718
|
|
|
293,457
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
606,995
|
|
$
|
501,429
|
|
View original
content:https://www.prnewswire.com/news-releases/miller-industries-reports-2023-second-quarter-results-301897200.html
SOURCE Miller Industries, Inc.