Miller Industries Reports 2019 Second Quarter Results

CHATTANOOGA, Tenn., Aug. 7, 2019 /PRNewswire/ -- Miller Industries, Inc. MLR (the "Company") today announced financial results for the second quarter ended June 30, 2019.

For the second quarter of 2019, net sales were $222.3 million, an increase of 25.7%, compared to $176.9 million for the second quarter of 2018. Net income in the second quarter of 2019 was $10.7 million, or $0.94 per diluted share, an increase of 40.6%, compared to net income of $7.6 million, or $0.67 per diluted share, in the prior year period.

Gross profit for the second quarter of 2019 was $25.2 million, or 11.3% of net sales, compared to $21.3 million, or 12.0% of net sales, for the second quarter of 2018. Selling, general and administrative expenses were $11.0 million, or 4.9% of net sales, compared to $9.7 million, or 5.5% of net sales, in the prior year period.

For the six months ended June 30, 2019, net sales were $419.6 million, an increase of 24.9% compared to $336.0 million in the prior year period. The Company reported net income of $19.3 million, or $1.70 per diluted share for the first six months of 2019, an increase of 35.6% compared to net income of $14.3 million, or $1.25 per diluted share for the first six months of 2018.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable September 16, 2019 to shareholders of record at the close of business on September 9, 2019.

Jeffrey I. Badgley, Co-Chief Executive Officer of the Company stated, "Our performance in the second quarter continued to be very strong, with year-over-year revenue growth of 25.7%, reflecting our response to strong demand in our domestic and international markets. Gross profit and net income grew 18.5% and 40.6%, respectively, driven by strong demand across our product portfolio. Additionally, we continued to capitalize on our cost control, resulting in a 60 basis point contraction in our SG&A expense as a percentage of net sales."

Mr. Badgley concluded, "Investing in our business to streamline operations to drive best-in-class customer service and meet demand remains a top priority for our company. Our outlook remains positive moving into the third quarter, as economic conditions continue to be strong. Further, as we enter the back half of 2019, we will stay focused on generating revenue, executing on cost reduction, and continuing our strategic deployment of capital."

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, August 8, 2019, 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/1034/31304

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 August 15, 2019. The replay number is 1-844-512-2921, Passcode 8531678.

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 customers' access to capital and credit to fund purchases; our dependence upon outside suppliers for our raw materials, including aluminum, steel, petroleum-related products and other purchased component parts; changes in price (including as a result of the imposition of tariffs) of aluminum, steel, petroleum-related products and other purchased component parts; delays in receiving supplies of such materials or parts; operational challenges caused by our increased sales volumes; changes in fuel and other transportation costs, insurance costs and weather conditions; changes in government regulation; various political, economic and other uncertainties relating to our international operations, including restrictive taxation and foreign currency fluctuation; failure to comply with domestic and foreign anti-corruption laws; special risks from our sales to U.S. and other governmental entities through prime contractors; our ability to secure new military orders; 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, 2018, 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





Six Months Ended





June 30





June 30















%















%





2019





2018



Change





2019





2018



Change

NET SALES

$

222,346



$

176,888



25.7%



$

419,559



$

336,048



24.9%

































COSTS OF OPERATIONS



197,133





155,609



26.7%





371,749





296,342



25.4%

































GROSS PROFIT



25,213





21,279



18.5%





47,810





39,706



20.4%

































OPERATING EXPENSES:































Selling, General and Administrative Expenses



10,968





9,678



13.3%





21,183





19,267



9.9%

































NON-OPERATING (INCOME) EXPENSES:































Interest Expense, Net



721





484



49.0%





1,389





904



53.7%

































Other (Income) Expense, Net



57





627



-90.9%





311





(288)



-208.0%

































Total Expense, Net



11,746





10,789



8.9%





22,883





19,883



15.1%

































INCOME BEFORE INCOME TAXES



13,467





10,490



28.4%





24,927





19,823



25.7%

































INCOME TAX PROVISION



2,784





2,890



-3.7%





5,584





5,553



0.6%

































NET INCOME

$

10,683



$

7,600



40.6%



$

19,343



$

14,270



35.6%

































































BASIC INCOME PER COMMON SHARE

$

0.94



$

0.67



40.3%



$

1.70



$

1.25



36.0%

































DILUTED INCOME PER COMMON SHARE

$

0.94



$

0.67



40.3%



$

1.70



$

1.25



36.0%

































CASH DIVIDENDS DECLARED PER COMMON SHARE

$

0.18



$

0.18



0.0%



$

0.36



$

0.36



0.0%

































































WEIGHTED AVERAGE SHARES OUTSTANDING:































Basic



11,400





11,384



0.1%





11,400





11,384



0.1%

Diluted



11,400





11,393



0.1%





11,400





11,393



0.1%

 

 

Miller Industries, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

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







June 30, 





December 31, 





2019





2018

ASSETS











CURRENT ASSETS:











Cash and temporary investments

$

27,236



$

27,037

Accounts receivable, net of allowance for doubtful accounts of $1,208 and $1,112 at June 30, 2019

and December 31, 2018, respectively



197,760





149,142

Inventories, net



90,973





93,767

Prepaid expenses



5,884





3,272

Total current assets



321,853





273,218

NONCURRENT ASSETS:











Property, plant and equipment, net



87,004





82,850

Right-of-use assets - operating leases



1,547





Goodwill



11,619





11,619

Other assets



527





497

TOTAL ASSETS

$

422,550



$

368,184













LIABILITIES AND SHAREHOLDERS' EQUITY











CURRENT LIABILITIES:











Accounts payable

$

129,449



$

98,220

Accrued liabilities



26,763





24,863

Current portion of operating lease obligation



362





Current portion of finance lease obligation



21





20

Long-term obligations due within one year



479





285

Total current liabilities



157,074





123,388

NONCURRENT LIABILITIES:











Long-term obligations



20,079





15,475

Noncurrent portion of operating lease obligation



1,182





Noncurrent portion of finance lease obligation



47





58

Deferred income tax liabilities



1,864





1,700

Total liabilities



180,246





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 June 30, 2019 and December 31, 2018, respectively



114





114

Additional paid-in capital



151,055





150,905

Accumulated surplus



96,598





81,354

Accumulated other comprehensive loss



(5,463)





(4,810)

Total shareholders' equity



242,304





227,563

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

422,550



$

368,184

 

Cision View original content:http://www.prnewswire.com/news-releases/miller-industries-reports-2019-second-quarter-results-300898152.html

SOURCE Miller Industries, Inc.

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