CHATTANOOGA, Tenn., March 6,
2024 /PRNewswire/ -- Miller Industries, Inc. (NYSE:
MLR) ("Miller Industries" or the "Company") today announced
financial results for the fourth quarter and full year ended
December 31, 2023.
For the fourth quarter of 2023, net sales were $296.2 million, an increase of 31.2%, compared to
$225.9 million for the fourth quarter
of 2022. The year over year improvement was predominantly due to
continued strong order trends and execution against the Company's
near $1 billion backlog in the form
of improved deliveries of finished goods to customers.
Gross profit for the fourth quarter of 2023 was $38.6 million, or 13.0% of net sales, compared to
$25.5 million, or 11.3% of net sales,
for the fourth quarter of 2022. The increase in gross margin was
driven largely by initiatives to improve productivity and the
stabilization of raw material costs compared to the prior year.
Selling, general and administrative expenses were $16.4 million, or 5.5% of net sales, compared to
$13.1 million, or 5.8% of net sales,
in the prior year period. The year over year increase in selling,
general and administrative expenses was due to increases in bonus
accruals and investments made in training and retaining the
Company's workforce. The decrease in SG&A as a percentage of
net sales demonstrates the Company's financial discipline and the
inherent leverage in its business model.
Net income in the fourth quarter of 2023 was $16.7 million, or $1.45 per diluted share, compared to net income
of $9.3 million, or $0.81 per diluted share, in the prior year
period, for increases of 80.2% and 79.0%, respectively.
For the twelve months ended December 31,
2023, net sales were $1.15
billion, an increase of 35.9% compared to $848.5 million in the prior year period. The
Company reported net income of $58.3
million, or $5.07 per diluted
share for the full year 2023, compared to net income of
$20.3 million, or $1.78 per diluted share for the full year 2022,
for increases of 186.5% and 184.8%, respectively.
The Company also announced that its Board of Directors has
declared a 5.6% increase in its quarterly cash dividend to
$0.19 per share, payable March 25, 2024, to shareholders of record at the
close of business on March 18, 2024,
the fifty-third consecutive quarter that the Company has paid a
dividend.
"2023 was a year of tremendous growth at Miller Industries,"
said William G. Miller, II, Chief
Executive Officer of the Company. "Over the past few years,
we've remained committed to our strategy of investing in our
capacity, productivity and our people. Those investments and the
execution of our long-term strategy, coupled with the improvements
to our supply chain and ability to cope with the immense demand we
have seen for our products over the last three years, are starting
to reflect in our financial results, demonstrating the underlying
strength of our company and our end-markets."
"Looking to 2024, we are acutely focused on enhancing our
flexibility and reducing our working capital. Over the past two
years, we increased our inventories to meet market demand and to
increase manufacturing flexibility. Going forward, the investments
we made will allow us to be more efficient in our manufacturing
processes and should result in our inventory balance decreasing
throughout the balance of the year. In 2024, we believe our working
capital spend should more closely reflect our pre-COVID levels as a
percentage of revenue. In addition, we're pleased to report that
we've increased our quarterly dividend to $0.19 per share and paid down $5 million of our debt balance in the first
quarter of 2024."
"As I said in our preliminary earnings announcement, we believe
our record 2023 is only the beginning of what is achievable at
Miller Industries. Our backlog remains near record levels, we have
seen no change in our strong order trends, and internally we are
well positioned to continue our efficient execution. Based on these
trends, we look forward to another record year on both the top and
bottom line in 2024," 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, March 7,
2024, 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/W380b5vPk1M
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 Thursday, March 14,
2024. The replay number is 1-844-512-2921, Passcode
13744048.
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®.
Backlog
While backlog is not a defined term under GAAP, it is a common
measurement used in the Company's industry and Miller Industries
believes this non-GAAP measure enables it to more effectively
forecast its future results and better identify future trends.
Backlog is defined as the value of new units ordered by customers
for future deliveries where revenue has not yet been recognized.
The measure provides an indication of and expectation of future
sales to be achieved on these orders. There is no directly
comparable GAAP financial measure for backlog.
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 2024 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; global
economic events and other factors, such as restrictive monetary and
fiscal policy, the lingering impact of the COVID-19 pandemic and
the conflicts in Ukraine and the
Middle East; our dependence upon
outside suppliers for component parts, chassis and raw materials,
including aluminum, steel, and petroleum-related products;
increases in the cost of skilled labor; 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, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December 31
|
|
|
December
31
|
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
%
|
|
|
2023
|
|
|
2022
|
|
Change
|
|
|
2023
|
|
|
2022
|
|
Change
|
NET
SALES
|
$
|
296,246
|
|
$
|
225,854
|
|
31.2 %
|
|
$
|
1,153,354
|
|
$
|
848,456
|
|
35.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF
OPERATIONS
|
|
257,606
|
|
|
200,329
|
|
28.6 %
|
|
|
1,001,500
|
|
|
766,037
|
|
30.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
38,640
|
|
|
25,525
|
|
51.4 %
|
|
|
151,854
|
|
|
82,419
|
|
84.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
16,366
|
|
|
13,117
|
|
24.8 %
|
|
|
73,087
|
|
|
52,827
|
|
38.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING
(INCOME) EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
1,449
|
|
|
1,291
|
|
12.2 %
|
|
|
5,974
|
|
|
3,379
|
|
76.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense,
Net
|
|
(149)
|
|
|
(512)
|
|
(70.9) %
|
|
|
(991)
|
|
|
481
|
|
(306.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expense,
Net
|
|
17,666
|
|
|
13,896
|
|
27.1 %
|
|
|
78,070
|
|
|
56,687
|
|
37.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
20,974
|
|
|
11,629
|
|
80.4 %
|
|
|
73,784
|
|
|
25,732
|
|
186.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
PROVISION
|
|
4,279
|
|
|
2,337
|
|
83.1 %
|
|
|
15,493
|
|
|
5,386
|
|
187.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
|
16,695
|
|
$
|
9,292
|
|
79.7 %
|
|
$
|
58,291
|
|
$
|
20,346
|
|
186.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC INCOME PER
COMMON SHARE
|
$
|
1.46
|
|
$
|
0.81
|
|
80.2 %
|
|
$
|
5.10
|
|
$
|
1.78
|
|
186.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER
COMMON SHARE
|
$
|
1.45
|
|
$
|
0.81
|
|
79.0 %
|
|
$
|
5.07
|
|
$
|
1.78
|
|
184.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS
DECLARED PER COMMON SHARE
|
$
|
0.18
|
|
$
|
0.18
|
|
0.0 %
|
|
$
|
0.72
|
|
$
|
0.72
|
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,446
|
|
|
11,417
|
|
0.3 %
|
|
|
11,439
|
|
|
11,417
|
|
0.2 %
|
Diluted
|
|
11,523
|
|
|
11,417
|
|
0.9 %
|
|
|
11,507
|
|
|
11,417
|
|
0.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MILLER
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and temporary
investments
|
$
|
29,909
|
|
$
|
40,153
|
Accounts receivable,
net of allowance for credit losses of $1,527 and $1,319 at
December
31, 2023 and December 31, 2022,
respectively
|
|
286,138
|
|
|
177,663
|
Inventories,
net
|
|
189,807
|
|
|
153,656
|
Prepaid
expenses
|
|
4,617
|
|
|
4,576
|
Total current
assets
|
|
510,471
|
|
|
376,048
|
NONCURRENT
ASSETS:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
115,072
|
|
|
112,145
|
Right-of-use assets -
operating leases
|
|
826
|
|
|
909
|
Goodwill
|
|
20,022
|
|
|
11,619
|
Other assets
|
|
819
|
|
|
708
|
TOTAL
ASSETS
|
$
|
647,210
|
|
$
|
501,429
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
191,782
|
|
$
|
125,500
|
Accrued
liabilities
|
|
40,793
|
|
|
28,333
|
Income taxes
payable
|
|
1,819
|
|
|
2,001
|
Current portion of
operating lease obligation
|
|
320
|
|
|
311
|
Total current
liabilities
|
|
234,714
|
|
|
156,145
|
NONCURRENT
LIABILITIES:
|
|
|
|
|
|
Long-term
obligations
|
|
60,000
|
|
|
45,000
|
Noncurrent portion of
operating lease obligation
|
|
506
|
|
|
597
|
Deferred income tax
liabilities
|
|
4,070
|
|
|
6,230
|
Total
liabilities
|
|
299,290
|
|
|
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 December 31, 2023 and
December 31, 2022, respectively
|
|
114
|
|
|
114
|
Additional paid-in
capital
|
|
153,574
|
|
|
152,392
|
Accumulated
surplus
|
|
200,165
|
|
|
150,124
|
Accumulated other
comprehensive loss
|
|
(5,933)
|
|
|
(9,173)
|
Total shareholders'
equity
|
|
347,920
|
|
|
293,457
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
|
647,210
|
|
$
|
501,429
|
View original
content:https://www.prnewswire.com/news-releases/miller-industries-reports-2023-fourth-quarter-and-full-year-results-302082110.html
SOURCE Miller Industries, Inc.