MILLER INDUSTRIES REPORTS 2023 FOURTH QUARTER AND FULL YEAR RESULTS
- Significant increase in net sales by 31.2% to $296.2 million in Q4 2023 compared to Q4 2022.
- Gross profit up to $38.6 million, 13.0% of net sales, in Q4 2023 from $25.5 million, 11.3% of net sales, in Q4 2022.
- Net income rises to $16.7 million, $1.45 per diluted share, in Q4 2023 from $9.3 million, $0.81 per diluted share, in Q4 2022.
- Full-year net sales increase by 35.9% to $1.15 billion in 2023 compared to the prior year period.
- Net income for full year 2023 reaches $58.3 million, $5.07 per diluted share, a significant increase from $20.3 million, $1.78 per diluted share, in 2022.
- Board of Directors declares a 5.6% increase in quarterly cash dividend to $0.19 per share.
- CEO William G. Miller II expresses confidence in the company's growth and efficiency improvements for 2024.
- None.
Insights
The reported increase in net sales and gross profit margin for Miller Industries signifies a robust demand for the company's products and an effective management of costs. The substantial growth in net income and earnings per share (EPS) suggests operational efficiency and could positively influence investor sentiment. The announcement of a dividend increase is also a positive signal to shareholders, reflecting confidence in the company's financial health and commitment to returning value.
From a financial perspective, the significant reduction in selling, general and administrative expenses as a percentage of net sales illustrates strong cost control measures. However, investors should closely monitor the company's future working capital management, as the intention to reduce inventory levels could impact the company's ability to meet demand if not executed effectively.
The automotive and equipment manufacturing sector is highly competitive and Miller Industries' performance indicates a successful navigation of market dynamics. The company's ability to maintain a near $1 billion backlog demonstrates sustained market demand, which is critical for future revenue streams. Moreover, the company's strategic investments in capacity and productivity, as well as its workforce, appear to be paying off, positioning it well for continued growth.
It's important to note that the company's supply chain improvements and flexibility enhancements are key competitive advantages in an industry often susceptible to material cost volatility and supply disruptions. The focus on reducing working capital to pre-COVID levels could improve cash flow and financial stability, an aspect that potential investors and market analysts will likely view favorably.
The financial results of Miller Industries reflect broader economic trends, such as the stabilization of raw material costs, which may indicate easing inflationary pressures. The company's performance can be seen as a microcosm of the manufacturing sector's recovery post-pandemic. The ability to execute against a substantial backlog could signal not only company strength but also a rebound in industrial activity.
Additionally, the commitment to reducing working capital and paying down debt is a prudent financial strategy that can strengthen the company's balance sheet against potential economic headwinds. A strong balance sheet is particularly important in an uncertain economic environment, as it provides resilience to shocks and allows for strategic agility.
For the fourth quarter of 2023, net sales were
Gross profit for the fourth quarter of 2023 was
Selling, general and administrative expenses were
Net income in the fourth quarter of 2023 was
For the twelve months ended December 31, 2023, net sales were
The Company also announced that its Board of Directors has declared a
"2023 was a year of tremendous growth at Miller Industries," said William G. Miller, II, Chief Executive Officer of the Company. "Over the past few years, we've remained committed to our strategy of investing in our capacity, productivity and our people. Those investments and the execution of our long-term strategy, coupled with the improvements to our supply chain and ability to cope with the immense demand we have seen for our products over the last three years, are starting to reflect in our financial results, demonstrating the underlying strength of our company and our end-markets."
"Looking to 2024, we are acutely focused on enhancing our flexibility and reducing our working capital. Over the past two years, we increased our inventories to meet market demand and to increase manufacturing flexibility. Going forward, the investments we made will allow us to be more efficient in our manufacturing processes and should result in our inventory balance decreasing throughout the balance of the year. In 2024, we believe our working capital spend should more closely reflect our pre-COVID levels as a percentage of revenue. In addition, we're pleased to report that we've increased our quarterly dividend to
"As I said in our preliminary earnings announcement, we believe our record 2023 is only the beginning of what is achievable at Miller Industries. Our backlog remains near record levels, we have seen no change in our strong order trends, and internally we are well positioned to continue our efficient execution. Based on these trends, we look forward to another record year on both the top and bottom line in 2024," 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 7, 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/W380b5vPk1M
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, March 14, 2024. The replay number is 1-844-512-2921, Passcode 13744048.
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®.
Backlog
While backlog is not a defined term under GAAP, it is a common measurement used in the Company's industry and Miller Industries believes this non-GAAP measure enables it to more effectively forecast its future results and better identify future trends. Backlog is defined as the value of new units ordered by customers for future deliveries where revenue has not yet been recognized. The measure provides an indication of and expectation of future sales to be achieved on these orders. There is no directly comparable GAAP financial measure for backlog.
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 or profitability. 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; global economic events and other factors, such as restrictive monetary and fiscal policy, the lingering impact of the COVID-19 pandemic and the conflicts in
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 | ||||||||||||||||||
% | % | ||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
NET SALES | $ | 296,246 | $ | 225,854 | 31.2 % | $ | 1,153,354 | $ | 848,456 | 35.9 % | |||||||||
COSTS OF OPERATIONS | 257,606 | 200,329 | 28.6 % | 1,001,500 | 766,037 | 30.7 % | |||||||||||||
GROSS PROFIT | 38,640 | 25,525 | 51.4 % | 151,854 | 82,419 | 84.2 % | |||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Selling, General and Administrative Expenses | 16,366 | 13,117 | 24.8 % | 73,087 | 52,827 | 38.4 % | |||||||||||||
NON-OPERATING (INCOME) EXPENSES: | |||||||||||||||||||
Interest Expense, Net | 1,449 | 1,291 | 12.2 % | 5,974 | 3,379 | 76.8 % | |||||||||||||
Other (Income) Expense, Net | (149) | (512) | (70.9) % | (991) | 481 | (306.0) % | |||||||||||||
Total Expense, Net | 17,666 | 13,896 | 27.1 % | 78,070 | 56,687 | 37.7 % | |||||||||||||
INCOME BEFORE INCOME TAXES | 20,974 | 11,629 | 80.4 % | 73,784 | 25,732 | 186.7 % | |||||||||||||
INCOME TAX PROVISION | 4,279 | 2,337 | 83.1 % | 15,493 | 5,386 | 187.7 % | |||||||||||||
NET INCOME | $ | 16,695 | $ | 9,292 | 79.7 % | $ | 58,291 | $ | 20,346 | 186.5 % | |||||||||
BASIC INCOME PER COMMON SHARE | $ | 1.46 | $ | 0.81 | 80.2 % | $ | 5.10 | $ | 1.78 | 186.5 % | |||||||||
DILUTED INCOME PER COMMON SHARE | $ | 1.45 | $ | 0.81 | 79.0 % | $ | 5.07 | $ | 1.78 | 184.8 % | |||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.18 | $ | 0.18 | 0.0 % | $ | 0.72 | $ | 0.72 | 0.0 % | |||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||
Basic | 11,446 | 11,417 | 0.3 % | 11,439 | 11,417 | 0.2 % | |||||||||||||
Diluted | 11,523 | 11,417 | 0.9 % | 11,507 | 11,417 | 0.8 % | |||||||||||||
MILLER INDUSTRIES, INC. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(In thousands, except per share data) | |||||
December 31, | December 31, | ||||
2023 | 2022 | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and temporary investments | $ | 29,909 | $ | 40,153 | |
Accounts receivable, net of allowance for credit losses of | 286,138 | 177,663 | |||
Inventories, net | 189,807 | 153,656 | |||
Prepaid expenses | 4,617 | 4,576 | |||
Total current assets | 510,471 | 376,048 | |||
NONCURRENT ASSETS: | |||||
Property, plant and equipment, net | 115,072 | 112,145 | |||
Right-of-use assets - operating leases | 826 | 909 | |||
Goodwill | 20,022 | 11,619 | |||
Other assets | 819 | 708 | |||
TOTAL ASSETS | $ | 647,210 | $ | 501,429 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
Accounts payable | $ | 191,782 | $ | 125,500 | |
Accrued liabilities | 40,793 | 28,333 | |||
Income taxes payable | 1,819 | 2,001 | |||
Current portion of operating lease obligation | 320 | 311 | |||
Total current liabilities | 234,714 | 156,145 | |||
NONCURRENT LIABILITIES: | |||||
Long-term obligations | 60,000 | 45,000 | |||
Noncurrent portion of operating lease obligation | 506 | 597 | |||
Deferred income tax liabilities | 4,070 | 6,230 | |||
Total liabilities | 299,290 | 207,972 | |||
SHAREHOLDERS' EQUITY: | |||||
Preferred stock, | — | — | |||
Common stock, | 114 | 114 | |||
Additional paid-in capital | 153,574 | 152,392 | |||
Accumulated surplus | 200,165 | 150,124 | |||
Accumulated other comprehensive loss | (5,933) | (9,173) | |||
Total shareholders' equity | 347,920 | 293,457 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 647,210 | $ | 501,429 | |
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SOURCE Miller Industries, Inc.
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