MILLER INDUSTRIES REPORTS 2024 SECOND QUARTER RESULTS
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, | 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 | 13 | (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 | |
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SOURCE Miller Industries, Inc.