MILLER INDUSTRIES REPORTS 2022 FOURTH QUARTER AND FULL YEAR RESULTS

Rhea-AI Summary

Miller Industries (NYSE: MLR) reported strong financial results for Q4 and the full year 2022, with net sales increasing to $225.9 million in Q4, up 12% year-over-year. Net income surged to $9.3 million, marking a 242.2% rise from $2.7 million in Q4 2021. For the full year, net sales reached $848.5 million, an 18.3% increase, while net income rose to $20.3 million. The company declared a quarterly cash dividend of $0.18 per share. CEO William G. Miller, II highlighted improvements in supply chain management and strong demand, projecting revenues exceeding $1 billion for fiscal 2023, subject to supply chain conditions.

Positive

• Q4 net sales increased by 12% to $225.9 million.
• Net income for Q4 grew by 242.2% to $9.3 million.
• Full-year net sales up 18.3% to $848.5 million.
• Net income for full year increased by 25.2% to $20.3 million.
• Quarterly cash dividend declared at $0.18 per share, marking 49 consecutive quarters of dividends.
• Record backlog and strong order trends entering 2023.

Negative

• Selling, general, and administrative expenses rose to $13.1 million in Q4, compared to $11.2 million in Q4 2021.

CHATTANOOGA, Tenn., March 8, 2023 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the "Company") today announced financial results for the fourth quarter and full year ended December 31, 2022.

For the fourth quarter of 2022, net sales were $225.9 million, an increase of 12.0%, compared to $201.7 million for the fourth quarter of 2021. Net income in the fourth quarter of 2022 was $9.3 million, or $0.81 per diluted share, compared to net income of $2.7 million, or $0.24 per diluted share, in the prior year period, for increases of 242.2% and 237.5%, respectively.

Gross profit for the fourth quarter of 2022 was $25.5 million, or 11.3% of net sales, compared to $15.6 million, or 7.7% of net sales, for the fourth quarter of 2021. Selling, general and administrative expenses were $13.1 million, or 5.8% of net sales, compared to $11.2 million, or 5.5% of net sales, in the prior year period.

For the twelve months ended December 31, 2022, net sales were $848.5 million, an increase of 18.3% compared to $717.5 million in the prior year period. The Company reported net income of $20.3 million, or $1.78 per diluted share for the full year 2022, compared to net income of $16.3 million, or $1.42 per diluted share for the full year 2021, for increases of 25.2% and 25.4%, respectively.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable March 27, 2023, to shareholders of record at the close of business on March 20, 2023, the forty-ninth consecutive quarter that the Company has paid a dividend.

"Our fiscal year 2022 finished on a high note, with the fourth quarter coming in well ahead of internal expectations due to improvement in supply chain disruptions," said William G. Miller, II, Chief Executive Officer of the Company. "Not only does our topline growth reflect strong demand for our products in the marketplace, but it is clear to us that the sequential profitability improvement justifies our investment strategy. As we continue to secure the parts necessary to complete units, we are able to quickly deliver finished product and capitalize on the historically high demand levels."

Mr. Miller continued, "We are also pleased to see that our additional investments in the future of our business, including more training for our employees as well as capital expenditures focused on automation and productivity improvements in our facilities, have begun to bear fruit.  An important goal of ours during this period of economic uncertainty was not only to maintain our customer service levels, but also to position the Company for success in anticipation of a macroeconomic recovery. We feel as though the benefits of these investments will be even more apparent in a more normalized environment and thus enhance our margin profile."

"Recognizing the momentum in our business and to enhance our shareholder engagement, we are focused on giving our investors further useful information to understand the trajectory of our business. We are entering 2023 from a great position of strength. We have a record backlog and order trends remain strong. A strong demand environment, coupled with the full benefit of our productivity improvements, gives us confidence that we will be able to generate revenues in excess of $1 billion in fiscal 2023 and improve margins for the year, subject to no further deterioration in the supply chain and to general economic conditions," concluded Mr. Miller II.

The Company will host a conference call, which will be simultaneously broadcast live over the Internet. The call is scheduled for tomorrow, March 9, 2023, 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/35Za4ywpNrK

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 March 16, 2023. The replay number is 1-844-512-2921, Passcode 13736359.

About Miller Industries

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 2023 revenues or margins. 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, and petroleum-related products, resulting from changes in demand and market conditions, the general inflationary environment, the war in Ukraine, , and the lingering effects of the COVID-19 pandemic on supply chains; economic and market conditions, including the negative impacts on the Company's customers, suppliers and employees from increasing inflationary pressures, economic and geopolitical uncertainties (including the war in Ukraine); our dependence upon outside suppliers for purchased component parts, chassis and raw materials, including aluminum, steel, and petroleum-related products; future impacts resulting from the war in Ukraine, which include or could include (among other effects) disruption in global commodity and other markets, increased prices for energy, supply shortages and supplier financial risk; increased labor costs and the ability to attract and retain skilled labor to manufacture our products; the potential negative impacts of higher interest rates and other actions taken by the federal government in response to economic volatility and inflationary pressures, including the impact on our customers' and end users' access to capital and credit to fund purchases; our ability to raise capital, including to grow our business, pursue strategic investments, and take advantage of financing or other opportunities that we believe to be in the best interests of the Company and our shareholders due to the significant additional indebtedness we incurred during 2022; 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; changes in foreign currency exchange rates and interest rates; 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; a disruption in, or breach in security of, our information technology systems or any violation of data protection laws; 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, 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)
		Three Months Ended								Twelve Months Ended
		December 31								December 31
							%								%
		2022			2021		Change			2022			2021		Change
NET SALES	$	225,854		$	201,691		12.0 %		$	848,456		$	717,476		18.3 %
COSTS OF OPERATIONS		200,329			186,092		7.7 %			766,037			647,624		18.3 %
GROSS PROFIT		25,525			15,599		63.6 %			82,419			69,852		18.0 %
OPERATING EXPENSES:
Selling, General and Administrative Expenses		13,117			11,180		17.3 %			52,827			46,233		14.3 %
NON-OPERATING (INCOME) EXPENSES:
Interest Expense, Net		1,291			454		184.4 %			3,379			1,355		149.4 %
Other (Income) Expense, Net		(512)			64		(900.0) %			481			498		(3.4) %
Total Expense, Net		13,896			11,698		18.8 %			56,687			48,086		17.9 %
INCOME BEFORE INCOME TAXES		11,629			3,901		198.1 %			25,732			21,766		18.2 %
INCOME TAX PROVISION		2,337			1,186		97.0 %			5,386			5,511		(2.3) %
NET INCOME	$	9,292		$	2,715		242.2 %		$	20,346		$	16,255		25.2 %
BASIC INCOME PER COMMON SHARE	$	0.81		$	0.24		237.5 %		$	1.78		$	1.42		25.4 %
DILUTED INCOME PER COMMON SHARE	$	0.81		$	0.24		237.5 %		$	1.78		$	1.42		25.4 %
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.18		$	0.18		0.0 %		$	0.72		$	0.72		0.0 %
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		11,417			11,411		0.1 %			11,417			11,411		0.1 %
Diluted		11,417			11,411		0.1 %			11,417			11,411		0.1 %

 

Miller Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
	December 31,			December 31,
	2022			2021
ASSETS
CURRENT ASSETS:
Cash and temporary investments	$	40,153		$	54,332
Accounts receivable, net of allowance for credit losses of $1,319 and $1,155 at December 31, 2022 and December 31, 2021, respectively		177,663			153,977
Inventories, net		153,656			114,908
Prepaid expenses		4,576			5,751
Total current assets		376,048			328,968
NONCURRENT ASSETS:
Property, plant and equipment, net		112,145			95,293
Right-of-use assets - operating leases		909			1,231
Goodwill		11,619			11,619
Other assets		708			533
TOTAL ASSETS	$	501,429		$	437,644
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	125,500		$	121,746
Accrued liabilities		27,904			22,779
Income taxes payable		2,430			2,087
Current portion of operating lease obligation		311			361
Current portion of finance lease obligation		—			15
Total current liabilities		156,145			146,988
NONCURRENT LIABILITIES:
Long-term obligations		45,000			—
Noncurrent portion of operating lease obligation		597			870
Deferred income tax liabilities		6,230			5,170
Total liabilities		207,972			153,028
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 December 31, 2022 and December 31, 2021, respectively		114			114
Additional paid-in capital		152,392			151,449
Accumulated surplus		150,124			137,998
Accumulated other comprehensive loss		(9,173)			(4,945)
Total shareholders' equity		293,457			284,616
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	501,429		$	437,644

 

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SOURCE Miller Industries, Inc.

FAQ

What were Miller Industries' Q4 2022 financial results?

Miller Industries reported Q4 2022 net sales of $225.9 million and net income of $9.3 million.

How much did Miller Industries' net income increase in Q4 2022?

Net income in Q4 2022 increased by 242.2% compared to the previous year.

What is the projected revenue for Miller Industries in fiscal 2023?

Miller Industries is projecting revenues to exceed $1 billion in fiscal 2023.

When is the next dividend payment for Miller Industries?

The next dividend payment of $0.18 per share will be made on March 27, 2023.

How did Miller Industries' full-year results for 2022 compare to 2021?

For 2022, Miller Industries' net sales increased by 18.3% to $848.5 million, and net income rose by 25.2% to $20.3 million.