Miller Industries Reports 2021 Third Quarter Results

Rhea-AI Summary

Miller Industries announced its Q3 2021 financial results, reporting net sales of $164.7 million, a 2.2% decrease from Q3 2020. Net income fell 41.3% to $3.8 million or $0.34 per share. Gross profit remained steady at $17.8 million, representing 10.8% of net sales. Selling, general and administrative expenses increased to $12.0 million, or 7.3% of sales. For the year-to-date, net sales were $515.8 million, up 9.1%, but net income decreased 24.0% to $13.5 million. A quarterly cash dividend of $0.18 per share was declared.

Positive

• Q3 2021 gross profit steady at $17.8 million, up to 10.8% of sales.
• Year-to-date sales increased by 9.1%, reaching $515.8 million.
• Quarterly cash dividend of $0.18 announced, marking the 45th consecutive payment.

Negative

• Q3 2021 net income dropped by 41.3% to $3.8 million.
• Selling, general & administrative expenses rose to $12.0 million, up from $9.2 million in the prior year.
• Supply chain challenges and labor issues are ongoing, affecting production.

CHATTANOOGA, Tenn., Nov. 3, 2021 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company") today announced financial results for the third quarter ended September 30, 2021.

For the third quarter of 2021, net sales were $164.7 million, a decrease of 2.2%, compared to $168.4 million for the third quarter of 2020. Net income in the third quarter of 2021 was $3.8 million, or $0.34 per share, a decrease of 41.3%, compared to net income of $6.6 million, or $0.57 per share, in the prior year period. 

Gross profit for the third quarter of 2021 was $17.8 million, or 10.8% of net sales, compared to $17.8 million, or 10.6% of net sales, for the third quarter of 2020. Selling, general and administrative expenses were $12.0 million, or 7.3% of net sales, compared to $9.2 million, or 5.5% of net sales, in the prior year period.

For the nine months ended September 30, 2021, net sales were $515.8 million, an increase of 9.1% compared to $472.9 million in the prior year period. The Company reported net income of $13.5 million, or $1.19 per share for the first nine months of 2021, a decrease of 24.0% compared to net income of $17.8 million, or $1.56 per share for the first nine months of 2020.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable December 13, 2021 to shareholders of record at the close of business on December 6, 2021, the forty-fifth consecutive quarter that the Company has paid a dividend.

Jeffrey I. Badgley, Co-Chief Executive Officer of the Company said, "Supply chain challenges and inflationary pressures increased throughout the quarter, making it increasingly difficult to secure certain parts to complete finished goods. However, we are pleased with our performance during the quarter despite these challenges and are encouraged by the demand trends in our end-markets. That said, we are unsure of when the supply chain disruptions and labor headwinds will subside, and we will continue to leverage all of our resources to ensure that we meet customer demand."

Mr. Badgley continued, "Given demand near all-time highs, we feel confident about our long-term business prospects. Further, our international operations had a very successful quarter as Europe's pandemic restrictions began to ease. Though supply chain challenges remain, we continue to be conservative with our cash, grow our backlog, and improve our operational efficiency. As we move towards and into 2022, we believe the Company is well-positioned to take advantage of growth opportunities when supply chain related issues eventually subside. We believe that our strong financial position and cash flow will allow us to bounce back from these headwinds and give us the financial flexibility to deliver for our customers and generate long-term shareholder value."

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 4, 2021, 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/1034/43395

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 11, 2021. The replay number is 1-844-512-2921, Passcode 8215179.

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 overall impact of the COVID-19 pandemic on the Company's revenues, results of operations and financial condition; the duration and severity of the COVID-19 pandemic, including actions that may be taken by government authorities and others to address or otherwise mitigate the impact of the COVID-19 pandemic; our dependence upon outside suppliers for our raw materials, including aluminum, steel, petroleum-related products and other purchased component parts, as well as truck chassis; our recent supply chain challenges and our ability to manage our inventory and our workforce to adapt to the increased complexity in our supply chain; changes in price and availability (including as a result of the increased demand due to improving economic conditions, the impact of the COVID-19 pandemic and the imposition of additional tariffs) of aluminum, steel, petroleum-related products and other purchased component parts, as well as truck chassis; delays in receiving supplies of such materials or parts, including as a result of the impact of the COVID-19 pandemic; problems hiring or retaining skilled labor, which could be exacerbated by potential governmental vaccine mandates; the cyclical nature of our industry and changes in consumer confidence; economic and market conditions, including the negative impacts of the COVID-19 pandemic on global economies and the Company's customers, suppliers and employees;  our customers' access to capital and credit to fund purchases; operational challenges caused by increased sales volumes in recent years, prior to the COVID-19 pandemic; various political, economic and other uncertainties relating to our international operations, including restrictive taxation and foreign currency fluctuation; special risks from our sales to U.S. and other governmental entities through prime contractors; our ability to secure new government orders; changes in fuel and other transportation costs, insurance costs and weather conditions; changes in government 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, 2020, as supplemented in our Quarterly Report on Form 10-Q for the quarter ended June 30, 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)
		Three Months Ended								Nine Months Ended
		September 30								September 30
							%								%
		2021			2020		Change			2021			2020		Change
NET SALES	$	164,715		$	168,366		(2.2)%		$	515,785		$	472,949		9.1%
COSTS OF OPERATIONS		146,883			150,523		(2.4)%			461,532			418,841		10.2%
GROSS PROFIT		17,832			17,843		(0.1)%			54,253			54,108		0.3%
OPERATING EXPENSES:
Selling, General and Administrative Expenses		11,983			9,231		29.8%			35,053			30,272		15.8%
NON-OPERATING (INCOME) EXPENSES:
Interest Expense, Net		286			230		24.3%			901			1,018		(11.5)%
Other (Income) Expense, Net		206			(209)		(198.6)%			434			(393)		(210.4)%
Total Expense, Net		12,475			9,252		34.8%			36,388			30,897		17.8%
INCOME BEFORE INCOME TAXES		5,357			8,591		(37.6)%			17,865			23,211		(23.0)%
INCOME TAX PROVISION		1,511			2,038		(25.9)%			4,325			5,401		(19.9)%
NET INCOME	$	3,846		$	6,553		(41.3)%		$	13,540		$	17,810		(24.0)%
BASIC INCOME PER COMMON SHARE	$	0.34		$	0.57		(40.4)%		$	1.19		$	1.56		(23.7)%
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.18		$	0.18		0.0%		$	0.54		$	0.54		0.0%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		11,411			11,405		0.1%			11,411			11,405		0.1%

 

 

Miller Industries, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share data)
	September 30,
	2021			December 31,
	(Unaudited)			2020
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	50,407		$	57,521
Accounts receivable, net of allowance for doubtful accounts of $1,413 and $1,295 at September 30, 2021 and December 31, 2020, respectively		131,308			141,642
Inventories, net		108,838			83,939
Prepaid expenses		6,378			3,167
Total current assets		296,931			286,269
NONCURRENT ASSETS:
Property, plant and equipment, net		98,324			98,620
Right-of-use assets - operating leases		1,231			1,468
Goodwill		11,619			11,619
Other assets		520			434
TOTAL ASSETS	$	408,625		$	398,410
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	87,793		$	85,534
Accrued liabilities		25,553			24,773
Current portion of operating lease obligation		349			354
Current portion of finance lease obligation		21			21
Total current liabilities		113,716			110,682
NONCURRENT LIABILITIES:
Noncurrent portion of operating lease obligation		881			1,116
Noncurrent portion of finance lease obligation		—			15
Deferred income tax liabilities		4,159			4,144
Total liabilities		118,756			115,957
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, 11,410,728 and 11,405,468, outstanding at September 30, 2021 and December 31, 2020, respectively		114			114
Additional paid-in capital		151,449			151,249
Accumulated surplus		141,257			133,879
Accumulated other comprehensive loss		(2,951)			(2,789)
Total shareholders' equity		289,869			282,453
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	408,625		$	398,410

 

 

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SOURCE Miller Industries, Inc.

FAQ

What were Miller Industries' net sales for Q3 2021?

Miller Industries reported net sales of $164.7 million for Q3 2021.

How much did net income decrease for Miller Industries in Q3 2021?

Net income decreased by 41.3% to $3.8 million in Q3 2021.

What is the cash dividend declared by Miller Industries?

Miller Industries declared a cash dividend of $0.18 per share.

What challenges did Miller Industries face in Q3 2021?

Miller Industries faced supply chain challenges and inflationary pressures during Q3 2021.

How did Miller Industries' year-to-date sales compare to the previous year?

Year-to-date sales for Miller Industries increased by 9.1% to $515.8 million.