CHATTANOOGA, Tenn.,
Nov. 6, 2019 /PRNewswire/
-- Miller Industries, Inc. (NYSE: MLR) (the "Company") today
announced financial results for the third quarter ended
September 30, 2019.
For the third quarter of 2019, net sales were $195.5 million, a decrease of 0.1%, compared to
$195.7 million for the third quarter
of 2018. Net income in the third quarter of 2019 was $8.1 million, or $0.71 per diluted share, a decrease of 6.9%,
compared to net income of $8.7
million, or $0.76 per diluted
share, in the prior year period.
Gross profit for the third quarter of 2019 was $21.7 million, or 11.1% of net sales, compared to
$21.5 million, or 11.0% of net sales,
for the third quarter of 2018. Selling, general and administrative
expenses were $10.5 million, or 5.3%
of net sales, compared to $9.5
million, or 4.8% of net sales, in the prior year period.
For the nine months ended September 30,
2019, net sales were $615.0
million, an increase of 15.7% compared to $531.7 million in the prior year period. The
Company reported net income of $27.4
million, or $2.41 per diluted
share for the first nine months of 2019, an increase of 19.5%
compared to net income of $22.9
million, or $2.01 per diluted
share for the first nine months of 2018.
The Company also announced that its Board of Directors has
declared a quarterly cash dividend of $0.18 per share, payable December 16, 2019 to shareholders of record at
the close of business on December 9,
2019.
Jeffrey I. Badgley, Co-Chief
Executive Officer of the Company stated, "We delivered solid third
quarter results even though our third quarter revenue was
negatively impacted by temporary supply chain dynamics with certain
chassis manufacturers. Those dynamics negatively impacted
deliveries to both our plants and our distributors but have since
been corrected by our key suppliers and are not expected to impact
the fourth quarter. Despite those setbacks, we were able to
increase gross profits by 1.3% year-over-year and expand our gross
margins by 10 basis points due to our strong cost control
discipline. Additionally, during the third quarter, we continued to
invest in our business by escalating our marketing efforts and
enhancing software capabilities to better serve our customers,
which resulted in a modest increase in SG&A as a percentage of
net sales."
Mr. Badgley continued, "Foreign sales reflect a change in
delivery requirements of certain contracts. Our international
backlog remains strong and we anticipate an increase in deliveries
during the fourth quarter. As we move toward year end, we remain
confident in the underlying strength of our business, as we are
committed to providing best-in-class service to our customers while
investing for long-term growth."
In conjunction with this release, the Company will host a
conference call, which will be simultaneously broadcast live over
the Internet. Management will host the call, which is scheduled for
tomorrow, November 7, 2019, at
10:00 AM ET. Listeners can access the
conference call live and archived over the Internet through a link
at:
https://www.webcaster4.com/Webcast/Page/1034/32186
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 14, 2019.
The replay number is 1-844-512-2921, Passcode 3111808.
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. 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: the cyclical
nature of our industry and changes in consumer confidence; economic
and market conditions; our customers' access to capital and credit
to fund purchases; our dependence upon outside suppliers for our
raw materials, including aluminum, steel, petroleum-related
products and other purchased component parts; changes in price
(including as a result of the imposition of tariffs) of aluminum,
steel, petroleum-related products and other purchased component
parts; delays in receiving supplies of such materials or parts;
operational challenges caused by our increased sales volumes;
changes in fuel and other transportation costs, insurance costs and
weather conditions; changes in government regulation; various
political, economic and other uncertainties relating to our
international operations, including restrictive taxation and
foreign currency fluctuation; failure to comply with domestic and
foreign anti-corruption laws; special risks from our sales to U.S.
and other governmental entities through prime contractors; our
ability to secure new military orders; competition 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; problems hiring or retaining
skilled labor; a disruption in, or breach in security of, our
information technology systems or any violation of data protection
laws; 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; 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, 2018,
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, our company.
Miller Industries,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Income
(In thousands,
except per share data) (Unaudited)
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Three Months
Ended
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Nine Months
Ended
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September 30
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September 30
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%
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%
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2019
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2018
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Change
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2019
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2018
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Change
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NET
SALES
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$
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195,467
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$
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195,690
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-0.1%
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$
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615,026
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$
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531,738
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15.7%
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COSTS OF
OPERATIONS
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173,721
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174,214
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-0.3%
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545,470
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470,556
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15.9%
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GROSS
PROFIT
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21,746
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21,476
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1.3%
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69,556
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61,182
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13.7%
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OPERATING
EXPENSES:
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Selling, General and
Administrative Expenses
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10,453
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9,450
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10.6%
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31,636
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28,717
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10.2%
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NON-OPERATING
(INCOME) EXPENSES:
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Interest Expense,
Net
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424
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525
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-19.2%
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1,813
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1,429
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26.9%
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Other (Income) Expense,
Net
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231
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|
76
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203.9%
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542
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(212)
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-355.7%
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Total Expense,
Net
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11,108
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10,051
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10.5%
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33,991
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29,934
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13.6%
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INCOME BEFORE
INCOME TAXES
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10,638
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11,425
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-6.9%
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35,565
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31,248
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13.8%
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INCOME TAX
PROVISION
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2,562
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2,748
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-6.8%
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8,146
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8,301
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-1.9%
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NET
INCOME
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$
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8,076
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$
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8,677
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-6.9%
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$
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27,419
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$
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22,947
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19.5%
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BASIC INCOME PER
COMMON SHARE
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$
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0.71
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$
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0.76
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-6.6%
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$
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2.41
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$
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2.02
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19.3%
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DILUTED INCOME PER
COMMON SHARE
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$
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0.71
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$
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0.76
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-6.6%
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$
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2.41
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$
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2.01
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19.9%
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CASH DIVIDENDS
DECLARED PER COMMON SHARE
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$
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0.18
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$
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0.18
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0.0%
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$
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0.54
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$
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0.54
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0.0%
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WEIGHTED AVERAGE
SHARES OUTSTANDING:
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Basic
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11,400
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11,389
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0.1%
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11,400
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11,386
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0.1%
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Diluted
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11,400
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11,393
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0.1%
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11,400
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11,393
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0.1%
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Miller Industries,
Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(In thousands,
except per share data) (Unaudited)
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September 30,
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December 31,
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2019
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2018
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ASSETS
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CURRENT
ASSETS:
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Cash and temporary
investments
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$
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27,459
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$
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27,037
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Accounts receivable,
net of allowance for doubtful accounts of $1,048 and $1,112 at
September 30, 2019 and December 31, 2018,
respectively
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165,789
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149,142
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Inventories,
net
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98,072
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93,767
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Prepaid
expenses
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4,745
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3,272
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Total current
assets
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296,065
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273,218
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NONCURRENT
ASSETS:
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Property, plant and
equipment, net
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91,527
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82,850
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Right-of-use assets -
operating leases
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1,407
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—
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Goodwill
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11,619
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11,619
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Other assets
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504
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497
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TOTAL
ASSETS
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$
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401,122
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$
|
368,184
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LIABILITIES AND
SHAREHOLDERS' EQUITY
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CURRENT
LIABILITIES:
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Accounts
payable
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$
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114,871
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$
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98,220
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Accrued
liabilities
|
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24,792
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24,863
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Current portion of
operating lease obligation
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343
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—
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Current portion of
finance lease obligation
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21
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20
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Long-term obligations
due within one year
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368
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|
|
285
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Total current
liabilities
|
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140,395
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|
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123,388
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NONCURRENT
LIABILITIES:
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Long-term
obligations
|
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10,092
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15,475
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Noncurrent portion of
operating lease obligation
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1,061
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|
—
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Noncurrent portion of
finance lease obligation
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|
42
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|
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58
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Deferred income tax
liabilities
|
|
1,765
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|
|
1,700
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Total
liabilities
|
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153,355
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|
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140,621
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SHAREHOLDERS'
EQUITY:
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Preferred stock, $0.01
par value; 5,000,000 shares authorized, none issued or
outstanding
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—
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—
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Common stock, $0.01 par
value; 100,000,000 shares authorized, 11,400,102 and 11,394,546,
outstanding at September 30, 2019 and
December 31, 2018, respectively
|
|
114
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|
|
114
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Additional paid-in
capital
|
|
151,055
|
|
|
150,905
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Accumulated
surplus
|
|
102,621
|
|
|
81,354
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Accumulated other
comprehensive loss
|
|
(6,023)
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|
|
(4,810)
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Total
shareholders' equity
|
|
247,767
|
|
|
227,563
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TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
|
401,122
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$
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368,184
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View original
content:http://www.prnewswire.com/news-releases/miller-industries-reports-2019-third-quarter-results-300953154.html
SOURCE Miller Industries, Inc.