MILLER INDUSTRIES REPORTS PRELIMINARY FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Rhea-AI Summary

Miller Industries, Inc. (NYSE: MLR) announced strong preliminary financial results for the Fourth Quarter and Full Year ended December 31, 2023. Net sales and gross profit saw significant year-over-year increases, with pre-tax income also showing substantial growth. Fiscal Year 2023 was a record year for the company, with topline growth reflecting strong demand and profitability improvements. The backlog remains near record levels, and order trends are strong, providing confidence for continued topline growth in fiscal 2024.

Insights

Financial Analyst

The reported preliminary financial results by Miller Industries showcase a significant year-over-year growth in net sales, gross profit and pre-tax income for both the fourth quarter and the full fiscal year of 2023. A 29.7% increase in quarterly net sales and a 35.5% increase in annual net sales indicate strong market demand and effective sales strategies. The 48.9% and 82.6% jumps in gross profit for the respective periods suggest operational efficiency and possibly improved cost management. Most notably, the pre-tax income surge of 76.3% for the quarter and 185.6% for the year is indicative of substantial profitability gains.

These figures, if accurate post-audit, could signal robust financial health and may lead to positive investor sentiment. However, investors should be cautious until the final audited results are released, as preliminary figures are subject to adjustments. The backlog approaching $1.0 billion reflects a strong order book that could ensure sustained revenue streams in the near term. Nevertheless, it is essential to monitor how the company manages supply chain dynamics and cost fluctuations to maintain profitability.

Market Research Analyst

Miller Industries' performance highlights the strength of the industrial manufacturing sector, particularly in specialized markets such as towing and recovery equipment. The company's record backlog and strong order trends suggest a healthy industry demand, likely driven by infrastructure development and the renewal of aging equipment. The CEO's mention of a 'strong demand environment' aligns with broader economic indicators of growth in commercial and industrial activities.

Investors should consider the broader economic context, including potential headwinds such as interest rate changes, which could affect capital expenditure decisions in the industry. Additionally, the company's ability to navigate supply chain disruptions and labor market tightness will be critical to maintaining the growth trajectory and meeting order fulfillment expectations. The reference to 'stabilizing costs and productivity improvements' may indicate that the company has strategies in place to mitigate these risks.

Economist

The impressive preliminary financial results reported by Miller Industries are reflective of a broader economic recovery and expansion post-pandemic. The substantial growth in pre-tax income suggests that the company has not only increased its revenue but has also managed to control its expenses effectively, which is commendable in an environment that has seen rising input costs.

However, the reliance on the 'current market conditions' for future growth forecasts introduces a degree of uncertainty. Macroeconomic factors such as inflation, trade policies and currency fluctuations can significantly impact the company's international operations. The ability to maintain a near record-level backlog could be challenged by any downturns in economic conditions. Investors should be mindful of economic forecasts and policy changes that could affect the industrial sector and Miller Industries' performance.

CHATTANOOGA, Tenn., Feb. 6, 2024 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) ("Miller Industries" or the "Company") today announced preliminary financial results for the Fourth Quarter and Full Year ended December 31, 2023, ahead of upcoming meetings with investors.

Based on currently available information, the Company estimates the following results for the quarter and fiscal year ended December 31, 2023. These estimated ranges of financial results are based on the Company's preliminary financial statements for the Fourth Quarter and Full Year 2023. These financial statements have not been finalized and the audit by the Company's independent auditor has not been completed, and these estimated ranges are therefore subject to change.

Fourth Quarter 2023 Highlights¹

• Net sales of $290.0 million to $296.0 million, up 29.7% year over year
• Gross profit of $37.5 million to $38.5 million, up 48.9% year over year
• Pre-tax income of $20.0 million to $21.0 million, up 76.3% year over year

Fiscal Year 2023 Highlights¹

• Net sales of $1.147 billion to $1.153 billion, up 35.5% year over year
• Gross profit of $150.0 million to $151.0 million, up 82.6% year over year
• Pre-tax income of $73.0 million to $74.0 million, up 185.6% year over year

1 Year over year comparisons calculated using midpoint of provided range

"Our fiscal year 2023 finished on a high note, with the fourth quarter capping a record year with annual results well ahead of the expectations we set at the start of the year," 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 that the profitability improvements we achieved justify our strategy."

Mr. Miller II concluded, "We are entering 2024 from a position of great strength. Our backlog continues to remain at near record levels, approaching $1.0 billion, and order trends remain strong. A strong demand environment, coupled with stabilizing costs and productivity improvements, gives us confidence that we will be able to generate continued topline growth in fiscal 2024, based on current market conditions. Our management team and I would like to thank all of our employees, suppliers, customers and shareholders for their commitment, dedication, and support, which helped to make 2023 a record year for Miller Industries."

Information Regarding Preliminary Results

The preliminary estimated financial information contained in this press release reflects management's estimates based solely upon information available to it as of the date of this press release and is not a comprehensive statement of our financial results for the three months or the year ended December 31, 2023. The ranges for the preliminary estimated financial results described above constitute forward-looking statements. The preliminary estimated financial information presented above is subject to change, and our actual financial results may differ from such preliminary estimates and such differences could be material. Accordingly, you should not place undue reliance upon these preliminary estimates.

Details Regarding Full Fourth Quarter and Full Year 2023 Reporting

Miller Industries intends to release its full financial results for the Fourth Quarter and Full Year 2023 on Wednesday, March 6, 2024, after market close. The Company will host a conference call the following day that will be simultaneously broadcast live over the Internet:

Thursday, March 7, 2024
10:00 AM ET
9:00 AM CT
8:00 AM MT
7:00 AM PT

Listeners can access the conference call live over the Internet at:

https://app.webinar.net/W380b5vPk1M

Please allow 15 minutes prior to the call to visit the site to download and install any necessary audio software. After the call has taken place, its archived version can be accessed at this website.

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.

Forward-Looking Statements

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. The ranges for the preliminary estimated financial results described above constitute forward-looking statements. 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 and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, which discussions are incorporated herein by this reference. Such factors are not exclusive. Except as required by law, 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.

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SOURCE Miller Industries, Inc.

FAQ

What are the preliminary financial results announced by Miller Industries, Inc. for the Fourth Quarter and Full Year ended December 31, 2023?

Miller Industries, Inc. announced preliminary financial results for the Fourth Quarter and Full Year ended December 31, 2023, with significant year-over-year increases in net sales, gross profit, and pre-tax income.

What was the percentage increase in net sales for the Fourth Quarter and Full Year 2023 compared to the previous year?

The net sales for the Fourth Quarter and Full Year 2023 saw a 29.7% and 35.5% year-over-year increase, respectively.

What is the ticker symbol for Miller Industries, Inc.?

The ticker symbol for Miller Industries, Inc. is MLR.

Who is the Chief Executive Officer of Miller Industries, Inc.?

The Chief Executive Officer of Miller Industries, Inc. is William G. Miller, II.