MILLER INDUSTRIES REPORTS 2024 SECOND QUARTER RESULTS

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Aug 07, 2024, 16:30 ET

CHATTANOOGA, Tenn., Aug. 7, 2024 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) ("Miller Industries" or the "Company") today announced financial results for the second quarter ended June 30, 2024.

For the second quarter of 2024, net sales were $371.5 million, an increase of 23.7%, compared to $300.3 million for the second quarter of 2023. The year over year growth was predominantly due to consistent demand from customers, increased production volume and continued elevated OEM chassis deliveries in the quarter. We anticipate that chassis deliveries will normalize during the second half of the year.

Gross profit for the second quarter of 2024 was $51.1 million, or 13.8% of net sales, compared to $39.9 million, or 13.3% of net sales, for the second quarter of 2023. The year over year increase in gross margin was largely driven by higher production and delivery volumes.

Selling, general and administrative expenses were $22.8 million, or 6.1% of net sales, compared to $19.5 million, or 6.5% of net sales, in the prior year period.

Net income in the second quarter of 2024 was $20.5 million, or $1.78 per diluted share, an increase of 37.5% and 37.7% respectively compared to net income of $14.9 million, or $1.29 per diluted share, in the prior year period.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.19 per share, payable September 16, 2024, to shareholders of record at the close of business on September 9, 2024, the fifty-fifth consecutive quarter that the Company has paid a dividend.

"During the second quarter we continued to deliver strong operating results, capping off a record first half for Miller Industries," said William G. Miller, II, Chief Executive Officer of the Company. "Our continued strong topline performance underscores the success of our strategic initiatives, and when coupled with our improved production and delivery levels, also contributed to improved margins. We continue to maintain current production levels to decrease our backlog to more historical levels. This will allow us to better accommodate our distributors with increased flexibility and to deliver finished products to retail customers with a more acceptable lead time. Our steady order entry rate demonstrates the strength of our salesforce and distribution network, and the competitive advantages our products provide to our customers. Moving into the second half of the year, we are acutely focused on shifting product from our distributors to our end users, to ensure that the revenue we are generating has a strong cash conversion rate. As our first half results have surpassed our initial expectations, we now expect to achieve low double-digit revenue growth for the full year of 2024, in line with our historical annual growth rate, as opposed to the high single-digit growth we anticipated two quarters ago."

Mr. Miller, II, concluded, "As we look ahead, and as we mentioned last quarter, we continue to analyze the need for future investments in our manufacturing capabilities, specifically our production capacity. As always, we will also prioritize returning capital to our shareholders through our industry leading dividend and the $25 million share repurchase program we announced in April."

The Company will host a conference call, which will be simultaneously broadcast live over the Internet. The call is scheduled for tomorrow, August 8, 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/B1LjNejVJ5M

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, August 15, 2024. The replay number is 1-844-512-2921, Passcode 13747773

About Miller Industries, Inc.

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 2024 revenues, profitability, backlog, customer demand, and capital allocation plans. 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 risks discussed in our filings with the Securities and Exchange Commission, including the risks set forth in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as supplemented in Part II, Item 1A, "Risk Factors" in our subsequent Quarterly Reports on Form 10-Q, which discussion is incorporated herein by this reference. Such factors are not exclusive. Except as required by law, we expressly disclaim any obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

2024

2023

Change

2024

2023

Change

NET SALES

371,451

300,264

23.7 %

721,322

582,539

23.8 %

COSTS OF OPERATIONS

320,373

260,335

23.1 %

626,001

512,194

22.2 %

GROSS PROFIT

51,078

39,929

27.9 %

95,321

70,345

35.5 %

OPERATING EXPENSES:

Selling, General and Administrative Expenses

22,773

19,480

16.9 %

44,316

37,403

18.5 %

NON-OPERATING (INCOME) EXPENSES:

Interest Expense, Net

2,048

1,700

20.5 %

3,293

2,713

21.4 %

Other (Income) Expense, Net

(229)

105.7 %

(20)

(548)

96.4 %

Total Expense, Net

24,834

20,951

18.5 %

47,589

39,568

20.3 %

INCOME BEFORE INCOME TAXES

26,244

18,978

38.3 %

47,732

30,777

55.1 %

INCOME TAX PROVISION

5,730

4,063

41.0 %

10,195

6,642

53.5 %

NET INCOME

20,514

14,915

37.5 %

37,537

24,135

55.5 %

BASIC INCOME PER SHARE OF COMMON STOCK

1.79

1.30

37.7 %

3.28

2.11

55.3 %

DILUTED INCOME PER SHARE OF COMMON STOCK

1.78

1.29

37.7 %

3.26

2.10

55.0 %

CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK

0.19

0.18

5.6 %

0.38

0.36

5.6 %

WEIGHTED AVERAGE SHARES OUTSTANDING:

Basic

11,461

11,466

0.0 %

11,457

11,425

0.3 %

Diluted

11,550

11,526

0.2 %

11,531

11,477

0.5 %

MILLER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	June 30,
	2024		December 31,
	(Unaudited)		2023
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	23,816	$	29,909
Accounts receivable, net of allowance for credit losses of $1,633 and $1,527 at June 30, 2024 and December 31, 2023, respectively		391,797		286,138
Inventories, net		187,286		189,807
Prepaid expenses		8,099		4,617
Total current assets		610,998		510,471
NON-CURRENT ASSETS:
Property, plant and equipment, net		115,768		115,072
Right-of-use assets - operating leases		659		826
Goodwill		19,998		20,022
Other assets		744		819
TOTAL ASSETS	$	748,167	$	647,210

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	243,146	$	191,782
Accrued liabilities		49,546		40,793
Income taxes payable		771		1,819
Current portion of operating lease obligation		306		320
Total current liabilities		293,768		234,714
NON-CURRENT LIABILITIES:
Long-term obligations		70,000		60,000
Non-current portion of operating lease obligation		352		506
Deferred income tax liabilities		4,159		4,070
Total liabilities		368,279		299,290

SHAREHOLDERS' EQUITY:
Preferred shares, $0.01 par value; 5,000,000 shares authorized, none issued		—		—
Common shares, $0.01 par value: Authorized - 100,000 shares, Issued - 11,453,792 and 11,445,640 at June 30, 2024 and December 31, 2023, respectively		115		114
Additional paid-in capital		153,014		153,574
Retained earnings		233,330		200,165
Accumulated other comprehensive loss		(6,571)		(5,933)
Total shareholders' equity		379,888		347,920
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	748,167	$	647,210