CHATTANOOGA, Tenn., Nov. 9, 2022
/PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company")
today announced financial results for the third quarter ended
September 30, 2022.
For the third quarter of 2022, net sales were $205.6 million, an increase of 24.8%, compared to
$164.7 million for the third quarter
of 2021. Net income in the third quarter of 2022 was $5.2 million, or $0.46 per diluted share, compared to net income
of $3.8 million, or $0.34 per diluted share, in the prior year
period, for increases of 36.0% and 35.3%, respectively.
Gross profit for the third quarter of 2022 was $23.2 million, or 11.3% of net sales, compared to
$17.8 million, or 10.8% of net sales,
for the third quarter of 2021. Selling, general and administrative
expenses were $14.7 million, or 7.1%
of net sales, compared to $12.0
million, or 7.3% of net sales, in the prior year period.
For the nine months ended September 30,
2022, net sales were $622.6
million, an increase of 20.7% compared to $515.8 million in the prior year period. The
Company reported net income of $11.1
million, or $0.97 per diluted
share for the first nine months of 2022, compared to net income of
$13.5 million, or $1.19 per diluted share for the nine months of
2021, for decreases of 18.4% and 18.5%, respectively.
The Company also announced that its Board of Directors has
declared a quarterly cash dividend of $0.18 per share, payable December 12, 2022, to shareholders of record at
the close of business on December 5,
2022, the forty-eighth consecutive quarter that the Company
has paid a dividend.
"The sequential revenue growth for the third quarter reflected
the effects of our pricing initiatives to offset inflation, as well
as the value proposition of our products resonating in the
marketplace. We continued to experience parts scarcity, that
limited the amount of finished goods we could deliver during the
quarter," said William G. Miller,
II, Chief Executive Officer. "These trends will likely
continue into the near future."
Mr. Miller, II continued, "All indications reflect continued
strong demand for our products with a very solid backlog. Despite
the current economic conditions, we have experienced only an
insignificant amount of cancelations or pushing out of orders
within our backlog. To meet this strong demand for our
products, we are continuing our strategy of accumulating available
inventory to service customers as parts become available."
"We remain very optimistic about the long-term fundamentals of
our business and continued progress in improving our data
infrastructure. These improvements will help to ensure that
Miller Industries remains the leader in the marketplace and
continues to maximize shareholder value," 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, November 10,
2022, 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/vm0Wa5AaJ7K
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 17, 2022.
The replay number is 1-844-512-2921, Passcode 13733026.
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: changes in
price, delivery delays and decreased availability of component
parts, chassis and raw materials, including aluminum, steel,
petroleum-related products, including as a result of increased
demand from improving market conditions, general inflation, the war
in Ukraine, as further discussed
below, the impact of the COVID-19 pandemic and related variants and
supply chain difficulties; 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 continuing and
any potential future negative impacts of the COVID-19 pandemic; our
dependence upon outside suppliers for purchased component parts,
chassis and raw materials, including aluminum, steel, and
petroleum-related products; increased employee turnover rates and
the ability to attract and retain skilled labor to manufacture our
products; the potential negative impacts of various 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;
operational challenges caused by increased sales volumes as the
economy and markets recover from the conditions related to the
COVID-19 pandemic; 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; 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; 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, 2021, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
|
|
|
Nine Months Ended
|
|
|
September 30
|
|
|
September 30
|
|
|
|
|
|
|
|
%
|
|
|
|
|
|
|
|
%
|
|
|
2022
|
|
|
2021
|
|
Change
|
|
|
2022
|
|
|
2021
|
|
Change
|
NET SALES
|
$
|
205,557
|
|
$
|
164,715
|
|
24.8 %
|
|
$
|
622,602
|
|
$
|
515,785
|
|
20.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS OF OPERATIONS
|
|
182,377
|
|
|
146,883
|
|
24.2 %
|
|
|
565,708
|
|
|
461,532
|
|
22.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
23,180
|
|
|
17,832
|
|
30.0 %
|
|
|
56,894
|
|
|
54,253
|
|
4.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative Expenses
|
|
14,673
|
|
|
11,983
|
|
22.4 %
|
|
|
39,710
|
|
|
35,053
|
|
13.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING (INCOME)
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
1,042
|
|
|
286
|
|
264.3 %
|
|
|
2,088
|
|
|
901
|
|
131.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense,
Net
|
|
666
|
|
|
206
|
|
223.3 %
|
|
|
993
|
|
|
434
|
|
128.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expense,
Net
|
|
16,381
|
|
|
12,475
|
|
31.3 %
|
|
|
42,791
|
|
|
36,388
|
|
17.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
INCOME BEFORE INCOME TAXES
|
|
6,799
|
|
|
5,357
|
|
26.9 %
|
|
|
14,103
|
|
|
17,865
|
|
(21.1) %
|
|
|
|
|
|
|
|
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INCOME TAX PROVISION
|
|
1,567
|
|
|
1,511
|
|
3.7 %
|
|
|
3,049
|
|
|
4,325
|
|
(29.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
$
|
5,232
|
|
$
|
3,846
|
|
36.0 %
|
|
$
|
11,054
|
|
$
|
13,540
|
|
(18.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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BASIC INCOME PER COMMON SHARE
|
$
|
0.46
|
|
$
|
0.34
|
|
35.3 %
|
|
$
|
0.97
|
|
$
|
1.19
|
|
(18.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED INCOME PER COMMON SHARE
|
$
|
0.46
|
|
$
|
0.34
|
|
35.3 %
|
|
$
|
0.97
|
|
$
|
1.19
|
|
(18.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH DIVIDENDS DECLARED PER COMMON
SHARE
|
$
|
0.18
|
|
$
|
0.18
|
|
0.0 %
|
|
$
|
0.54
|
|
$
|
0.54
|
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,417
|
|
|
11,411
|
|
0.1 %
|
|
|
11,417
|
|
|
11,411
|
|
0.1 %
|
Diluted
|
|
11,417
|
|
|
11,411
|
|
0.1 %
|
|
|
11,418
|
|
|
11,411
|
|
0.1 %
|
|
Miller Industries, Inc. and
Subsidiaries
|
Condensed Consolidated Balance
Sheets
|
(In thousands, except per share
data)
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
2022
|
|
December 31,
|
|
(Unaudited)
|
|
2021
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and temporary
investments
|
$
|
33,208
|
|
$
|
54,332
|
Accounts receivable,
net of allowance for credit losses of $1,268 and $1,155 at
September 30, 2022 and December 31, 2021,
respectively
|
|
167,887
|
|
|
153,977
|
Inventories,
net
|
|
144,382
|
|
|
114,908
|
Prepaid
expenses
|
|
6,053
|
|
|
5,751
|
Total current
assets
|
|
351,530
|
|
|
328,968
|
NONCURRENT ASSETS:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
112,545
|
|
|
96,496
|
Right-of-use assets -
operating leases
|
|
944
|
|
|
1,231
|
Goodwill
|
|
11,619
|
|
|
11,619
|
Other assets
|
|
626
|
|
|
533
|
TOTAL ASSETS
|
$
|
477,264
|
|
$
|
438,847
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts
payable
|
$
|
107,477
|
|
$
|
119,029
|
Accrued
liabilities
|
|
30,124
|
|
|
24,866
|
Current portion of
operating lease obligation
|
|
316
|
|
|
361
|
Current portion of
finance lease obligation
|
|
—
|
|
|
15
|
Total current
liabilities
|
|
137,917
|
|
|
144,271
|
NONCURRENT LIABILITIES:
|
|
|
|
|
|
Long-term
obligations
|
|
45,000
|
|
|
—
|
Noncurrent portion of
operating lease obligation
|
|
628
|
|
|
870
|
Deferred income tax
liabilities
|
|
5,195
|
|
|
5,170
|
Total
liabilities
|
|
188,740
|
|
|
150,311
|
|
|
|
|
|
|
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, 11,416,716 and 11,410,728
outstanding at September 30, 2022 and
December 31, 2021, respectively
|
|
114
|
|
|
114
|
Additional paid-in
capital
|
|
152,169
|
|
|
151,449
|
Accumulated
surplus
|
|
146,807
|
|
|
141,918
|
Accumulated other
comprehensive loss
|
|
(10,566)
|
|
|
(4,945)
|
Total shareholders'
equity
|
|
288,524
|
|
|
288,536
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
|
$
|
477,264
|
|
$
|
438,847
|
View original
content:https://www.prnewswire.com/news-releases/miller-industries-reports-2022-third-quarter-results-301673646.html
SOURCE Miller Industries, Inc.