MILLER INDUSTRIES REPORTS 2022 FIRST QUARTER RESULTS

Rhea-AI Summary

Miller Industries reported a 26.9% increase in net sales for Q1 2022, totaling $215.5 million, up from $169.9 million in Q1 2021. Net income fell to $2.1 million, or $0.18 per share, down 35% year-over-year. Gross profit decreased to $15.3 million, representing 7.1% of net sales compared to 9.3% last year. Despite challenges from supply chain issues and inflation, the company announced a quarterly dividend of $0.18 per share and remains optimistic about order levels and demand. The firm plans to continue building inventory to mitigate supply risks.

Positive

• Net sales increased by 26.9% year-over-year to $215.5 million.
• Quarterly cash dividend of $0.18 announced, marking the 46th consecutive quarter of dividends.
• Strong international demand, with no reduction in orders despite geopolitical tensions.

Negative

• Net income decreased by 35% to $2.1 million, or $0.18 per share.
• Gross profit fell to 7.1% of net sales, down from 9.3% a year ago.
• Ongoing supply chain challenges and inflationary pressures impacted profitability.

CHATTANOOGA, Tenn., May 4, 2022 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company") today announced financial results for the first quarter ended March 31, 2022.

For the first quarter of 2022, net sales were $215.5 million, an increase of 26.9%, compared to $169.9 million for the first quarter of 2021. Net income in the first quarter of 2022 was $2.1 million, or $0.18 per share, compared to net income of $3.2 million, or $0.28 per share, in the prior year period, a decrease of 35.0% and 35.7%, respectively.

Gross profit for the first quarter of 2022 was $15.3 million, or 7.1% of net sales, compared to $15.8 million, or 9.3% of net sales, for the first quarter of 2021. Selling, general and administrative expenses were $12.4 million, or 5.7% of net sales, compared to $11.1 million, or 6.5% of net sales, in the prior year period.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable June 13, 2022, to shareholders of record at the close of business on June 6, 2022, the forty-sixth consecutive quarter that the Company has paid a dividend.

"We were very pleased with the year over year revenue growth we experienced in the quarter," said William G. Miller, II, Chief Executive Officer of the Company. "While persistent supply chain challenges and inflationary pressures impacted our bottom line, we have already enacted a series of price increases and material surcharges to mitigate these impacts that should begin to yield results as we move through the remainder of the year. As we work through our substantial backlog, we are encouraged by our order levels and continued strong demand for our products. We plan to continue our strategy of building up inventory in order to mitigate the risk of supply chain delays and quickly complete finished goods once all component parts have been received. Our mission is to continue to focus on executing against this strategy, delivering our healthy backlog, improving our operational efficiency, and providing excellent service to our customers and stakeholders. We will pull all necessary levers to achieve these goals, and will continue to pursue any and all opportunities to maximize long-term shareholder value."

Mr. Miller, II continued, "International demand remains strong despite some of the macroeconomic pressures related to the war between Russia and Ukraine and its potential impact on our European operations.  While any impacts from the conflict are constantly evolving and difficult to predict, we have not seen a reduction in orders as a result."

The Company will host a conference call, which will be simultaneously broadcast live over the Internet. The call is scheduled for tomorrow, May 5, 2022, at 12:00 PM ET. Listeners can access the conference call live and archived over the Internet through the following link:

https://app.webinar.net/k0KlRXpRzGr

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 May 12, 2022. The replay number is 1-844-512-2921, Passcode 10166717.

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 due to improving market conditions, general inflation, the war in Ukraine, the impact of the COVID-19 pandemic and supply chain difficulties; economic and market conditions, including the negative impacts on the Company's customers, suppliers and employees from increasing inflationary pressures, geopolitical uncertainties and the continuing 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 problems hiring or retaining skilled labor to manufacture our products; our customers' and end users' 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, and geopolitical instability such as the war in Ukraine; 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, as supplemented in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, 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
			March 31
								%
			2022			2021		Change
NET SALES		$	215,545		$	169,912		26.9%
COSTS OF OPERATIONS			200,205			154,081		29.9%
GROSS PROFIT			15,340			15,831		(3.1)%
OPERATING EXPENSES:
Selling, General and Administrative Expenses			12,386			11,051		12.1%
NON-OPERATING (INCOME) EXPENSES:
Interest Expense, Net			418			275		52.0%
Other (Income) Expense, Net			52			276		(81.2)%
Total Expense, Net			12,856			11,602		10.8%
INCOME BEFORE INCOME TAXES			2,484			4,229		(41.3)%
INCOME TAX PROVISION			419			1,051		(60.1)%
NET INCOME		$	2,065		$	3,178		(35.0)%
BASIC INCOME PER COMMON SHARE		$	0.18		$	0.28		(35.7)%
DILUTED INCOME PER COMMON SHARE		$	0.18		$	0.28		(35.7)%
CASH DIVIDENDS DECLARED PER COMMON SHARE		$	0.18		$	0.18		0.0%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			11,417			11,410		0.1%
Diluted			11,421			11,410		0.1%

 

 

Miller Industries, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share data)
	March 31,
	2022			December 31,
	(Unaudited)			2021
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	29,292		$	54,332
Accounts receivable, net of allowance for credit losses of $1,200 and $1,155 at March 31, 2022 and   December 31, 2021, respectively		193,884			153,977
Inventories, net		124,348			114,908
Prepaid expenses		8,743			5,751
Total current assets		356,267			328,968
NONCURRENT ASSETS:
Property, plant and equipment, net		97,787			96,496
Right-of-use assets - operating leases		1,167			1,231
Goodwill		11,619			11,619
Other assets		641			533
TOTAL ASSETS	$	467,481		$	438,847
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	139,311		$	119,029
Accrued liabilities		23,016			24,866
Current portion of operating lease obligation		349			361
Current portion of finance lease obligation		9			15
Total current liabilities		162,685			144,271
NONCURRENT LIABILITIES:
Long-term obligations		10,000			—
Noncurrent portion of operating lease obligation		816			870
Deferred income tax liabilities		5,134			5,170
Total liabilities		178,635			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 March 31, 2022 and December 31, 2021, respectively		114			114
Additional paid-in capital		151,724			151,449
Accumulated surplus		141,928			141,918
Accumulated other comprehensive loss		(4,920)			(4,945)
Total shareholders' equity		288,846			288,536
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	467,481		$	438,847

 

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SOURCE Miller Industries, Inc.

FAQ

What were Miller Industries' Q1 2022 financial results?

Miller Industries reported Q1 2022 net sales of $215.5 million, a 26.9% increase, but net income decreased to $2.1 million.

Did Miller Industries declare a dividend in May 2022?

Yes, Miller Industries declared a quarterly cash dividend of $0.18 per share, payable on June 13, 2022.

What challenges did Miller Industries face in Q1 2022?

The company faced supply chain challenges and inflationary pressures that impacted its net income and gross profit.

What is the stock symbol for Miller Industries?

The stock symbol for Miller Industries is MLR.

What is the significance of Miller Industries' international demand?

Miller Industries noted strong international demand, with no reduction in orders despite macroeconomic pressures from the Russia-Ukraine conflict.