MILLER INDUSTRIES REPORTS 2024 SECOND QUARTER RESULTS

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Miller Industries (NYSE: MLR) announced its 2024 second quarter results, reporting net sales of $371.5 million, a 23.7% increase compared to the second quarter of 2023. This growth is attributed to consistent customer demand, increased production volume, and elevated OEM chassis deliveries. The gross profit for Q2 2024 was $51.1 million, or 13.8% of net sales, up from $39.9 million or 13.3% in Q2 2023. Selling, general and administrative expenses were $22.8 million, 6.1% of net sales, compared to $19.5 million or 6.5% in the prior year. Net income reached $20.5 million, or $1.78 per diluted share, representing a 37.5% and 37.7% increase, respectively. The board declared a quarterly cash dividend of $0.19 per share, payable on September 16, 2024. CEO William G. Miller, II, highlighted strong operational performance, strategic initiatives, and plans for future investment in manufacturing capabilities. The company anticipates low double-digit revenue growth for 2024.

Positive

• Net sales increased by 23.7% YoY to $371.5 million.
• Gross profit rose to $51.1 million, up from $39.9 million YoY.
• Net income increased by 37.5% to $20.5 million.
• Declared a quarterly cash dividend of $0.19 per share.
• Anticipates low double-digit revenue growth for 2024.

Negative

• None.

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.

FAQ

What were Miller Industries' Q2 2024 net sales?

Miller Industries reported net sales of $371.5 million for Q2 2024, a 23.7% increase year-over-year.

How much did Miller Industries' net income grow in Q2 2024?

Net income for Q2 2024 grew by 37.5% to $20.5 million.

What is the declared dividend per share for Miller Industries?

Miller Industries declared a quarterly cash dividend of $0.19 per share, payable on September 16, 2024.

What is Miller Industries' gross profit margin for Q2 2024?

The gross profit margin for Q2 2024 was 13.8%.

What is the expected revenue growth for Miller Industries in 2024?

Miller Industries expects low double-digit revenue growth for the full year of 2024.