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Miller Industries Reports 2019 Fourth Quarter and Full Year Results

March 5, 2020 GMT

CHATTANOOGA, Tenn., March 4, 2020 /PRNewswire/ -- Miller Industries, Inc. (NYSE: MLR) (the “Company”) today announced financial results for the fourth quarter and full-year ended December 31, 2019.

For the fourth quarter of 2019, net sales were $203.1 million, an increase of 12.9%, compared to $180.0 million for the fourth quarter of 2018. Net income in the fourth quarter of 2019 was $11.7 million, or $1.03 per diluted share, an increase of 8.3%, compared to net income of $10.8 million, or $0.95 per diluted share, in the prior year period.

Gross profit for the fourth quarter of 2019 was $26.9 million, or 13.3% of net sales, compared to $22.2 million, or 12.3% of net sales, for the fourth quarter of 2018. Selling, general and administrative expenses were $11.8 million, or 5.8% of net sales, compared to $10.8 million, or 6.0% of net sales, in the prior year period.

For the full year ended December 31, 2019, net sales were $818.2 million, an increase of 15.0% compared to $711.7 million in the prior year period. The Company reported net income of $39.1 million, or $3.43 per diluted share for the full year of 2019, an increase of 15.9% compared to net income of $33.7 million, or $2.96 per diluted share for the full year of 2018.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable March 23, 2020 to shareholders of record at the close of business on March 16, 2020.

Jeffrey I. Badgley, Co-Chief Executive Officer of the Company stated, “We delivered strong fourth quarter results, capping off a record-setting year for Miller Industries. During the fourth quarter and full year, revenue increased year-over-year by 12.9% and 15.0%, respectively. The increase in revenue was driven by stable demand throughout the fourth quarter and full year. In particular, revenue growth during the fourth quarter included recovery from supply chain issues encountered during the third quarter. Our profitability continued to improve during the quarter with our gross margin expanding 100 basis points to 13.3%, and our gross profits increasing 21.6% year-over-year, driven by increased sales, favorable mix, and our emphasis on production efficiency. Selling, general, and administrative expenses as a percentage of net sales contracted 20 basis points year-over-year, as a result of our focus on cost controls and our on-going effort to improve efficiency across our organization.”

Mr. Badgley continued, “We have solid momentum as we enter the new year. Our end markets remain stable and our order rates continue to be healthy, for both our domestic and international markets. Additionally, we are continuing to invest in technological improvements that will increase our operational efficiency and allow us to better serve our customers, enhance the safety of our employees and reduce our environmental impact. I am also pleased to say that phase one of the implementation of our new enterprise software systems is progressing according to our plan. We remain confident in the strength of our business as we begin the new year and we remain committed to providing excellent customer service and driving shareholder value.”

In closing, William G. Miller, Chairman of the Board, added, “I would like to welcome our two newest board members, who began their service on February 10, 2020. Leigh Walton, an independent director, has more than 40 years of experience advising public companies in the areas of corporate governance and corporate finance. Deborah Whitmire, the Company’s Executive Vice President, Chief Financial Officer and Treasurer, has provided invaluable expertise and leadership as a seasoned member of our executive team.”

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, March 5, 2020, 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/1034/33136

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 12, 2020. The replay number is 1-844-512-2921, Passcode 9105126.

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 cyclical nature of our industry and changes in consumer confidence; economic and market conditions; our dependence upon outside suppliers for our raw materials, including aluminum, steel, petroleum-related products and other purchased component parts; changes in price and availability (including as a result of the imposition of additional tariffs and the impact of the outbreak of the coronavirus known as COVID-19) of aluminum, steel, petroleum-related products and other purchased component parts; delays in receiving supplies of such materials or parts; our customers’ access to capital and credit to fund purchases; operational challenges caused by our increased sales volumes; 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 regulation; failure to comply with domestic and foreign anti-corruption laws; competition 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; problems hiring or retaining skilled labor; 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, 2019, 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, our company.

Miller Industries, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(In thousands, except per share data) (Unaudited)



















Three Months Ended



Year Ended



December 31



December 31








%








%



2019



2018


Change



2019



2018


Change

NET SALES

$

203,140


$

179,968


12.9%


$

818,166


$

711,706


15.0%

















COSTS OF OPERATIONS


176,208



157,814


11.7%



721,678



628,370


14.8%

















GROSS PROFIT


26,932



22,154


21.6%



96,488



83,336


15.8%

















OPERATING EXPENSES:
















Selling, General and Administrative Expenses


11,758



10,825


8.6%



43,394



39,542


9.7%

















NON-OPERATING (INCOME) EXPENSES:
















Interest Expense, Net


565



449


25.8%



2,378



1,878


26.6%

















Other (Income) Expense, Net


(211)



465


-145.4%



331



253


30.8%

















Total Expense, Net


12,112



11,739


3.2%



46,103



41,673


10.6%

















INCOME BEFORE INCOME TAXES


14,820



10,415


42.3%



50,385



41,663


20.9%

















INCOME TAX PROVISION


3,128



(384)


-914.6%



11,274



7,917


42.4%

















NET INCOME

$

11,692


$

10,799


8.3%


$

39,111


$

33,746


15.9%

































BASIC INCOME PER COMMON SHARE

$

1.03


$

0.95


8.4%


$

3.43


$

2.96


15.9%

















DILUTED INCOME PER COMMON SHARE

$

1.03


$

0.95


8.4%


$

3.43


$

2.96


15.9%

















CASH DIVIDENDS DECLARED PER COMMON SHARE

$

0.18


$

0.18


0.0%


$

0.72


$

0.72


0.0%

































WEIGHTED AVERAGE SHARES OUTSTANDING:
















Basic


11,400



11,395


0.0%



11,400



11,388


0.1%

Diluted


11,400



11,395


0.0%



11,400



11,393


0.1%

Miller Industries, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except per share data) (Unaudited)









December 31,



December 31,



2019



2018

ASSETS






CURRENT ASSETS:






Cash and temporary investments

$

26,072


$

27,037

Accounts receivable, net of allowance for doubtful accounts of $1,106 and $1,112 at December 31, 2019 and December 31, 2018, respectively


168,619



149,142

Inventories, net


87,965



93,767

Prepaid expenses


4,796



3,272

Total current assets


287,452



273,218

NONCURRENT ASSETS:






Property, plant and equipment, net


90,735



82,850

Right-of-use assets - operating leases


1,640



Goodwill


11,619



11,619

Other assets


521



497

TOTAL ASSETS

$

391,967


$

368,184







LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:






Accounts payable

$

95,750


$

98,220

Accrued liabilities


27,813



24,863

Current portion of operating lease obligation


330



Current portion of finance lease obligation


21



20

Long-term obligations due within one year


368



285

Total current liabilities


124,282



123,388

NONCURRENT LIABILITIES:






Long-term obligations


4,998



15,475

Noncurrent portion of operating lease obligation


1,307



Noncurrent portion of finance lease obligation


37



58

Deferred income tax liabilities


3,416



1,700

Total liabilities


134,040



140,621







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, 11,400,102 and 11,394,546, outstanding at December 31, 2019 and December 31, 2018, respectively


114



114

Additional paid-in capital


151,055



150,905

Accumulated surplus


112,261



81,354

Accumulated other comprehensive loss


(5,503)



(4,810)

Total shareholders' equity


257,927



227,563

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

391,967


$

368,184

View original content: http://www.prnewswire.com/news-releases/miller-industries-reports-2019-fourth-quarter-and-full-year-results-301016709.html

SOURCE Miller Industries, Inc.