Miller Industries Reports 2012 Fourth Quarter and Year End Results and
Increases Regular Quarterly Dividend
CHATTANOOGA, Tenn., March 6, 2013
CHATTANOOGA, Tenn., March 6, 2013 /PRNewswire/ --Miller Industries, Inc.
(NYSE: MLR) (the "Company") today announced financial results for the fourth
quarter and year ended December 31, 2012.
For the fourth quarter of 2012, net sales were $82.4 million, compared with
$109.4 million for the fourth quarter of 2011. Results in the 2012 fourth
quarter did not include any government-related orders, which represented 20.1%
of sales in the year-ago period. Net income in the fourth quarter of 2012 was
$1.7 million, or $0.15 per diluted share, compared to net income of $4.9
million, or $0.43 per diluted share, in the prior year period.
Gross profit for the fourth quarter of 2012 was $9.4 million, or 11.4% of net
sales, compared to $16.3 million, or 14.9% of net sales, for the fourth
quarter of 2011. For the fourth quarter of 2012, selling, general and
administrative expenses were $6.6 million, or 8.0% of net sales, compared to
$8.1 million, or 7.4% of net sales, in the prior year period.
Other income related to foreign currency transactions was a net gain of
$15,000 in the fourth quarter of 2012 compared to a net gain of $143,000 in
the fourth quarter of 2011.
For the full year ended December 31, 2012, net sales were $342.7 million,
compared to $412.7 million in the prior year period. Results in the 2011
full-year period included sales from additional follow-on government orders to
a prime contractor, which represented 26.8% of total net sales, which did not
recur in the 2012 full-year period. The Company reported full-year 2012 net
income of $9.1 million, or $0.82 per diluted share, which included the
previously announced income tax benefits of approximately $1.4 million in the
2012 third quarter, compared to net income of $23.0 million, or $1.92 per
diluted share in the 2011 full year period.
The Company also announced that its Board of Directors has increased its
quarterly cash dividend from $0.13 to $0.14 per share, payable on March 25,
2013, to shareholders of record at the close of business on March 18, 2013.
On December 27, 2012, the Company formed Delavan Automotive LLC, of which the
Company has a controlling interest, for the sale of automobile transport
trailers in the United States and Canada. Production is scheduled to commence
in 2013, with these trailers representing a natural extension of our existing
Jeffrey I. Badgley, CEO of the Company, stated, "We produced solid results
during the fourth quarter, generating an increase relative to third quarter
levels against an economic backdrop that remains soft, particularly in
Europe. Comparisons to the year ago period were challenging given the large
government orders in 2011, which masked a continued moderate improvement in
demand trends within our domestic commercial customer base on both a
sequential and annual basis. Our results also reflect the benefits of our
continued focus on cost reduction, as we were able to produce stronger
earnings from third quarter levels, excluding income tax benefits."
Mr. Badgley added, "We also made progress on our growth initiatives in the
fourth quarter, positioning ourselves for long-term growth. In Europe,
although general economic conditions remain tough, we continued to make
inroads in expanding our distribution channels, further growing our network
and reaching new customers. Furthermore, after several months of successful
testing, shipments are scheduled to begin in the second quarter of 2013 under
our initial purchase order with a prime contractor to the French military. We
are also pleased with the formation of Delavan Automotive LLC and the design
capabilities and innovation that it will bring to the Company. This line of
automobile transport trailers represents a natural extension of our existing
automobile transport product offering. We will continue to make investments
to bring new products to market that enhance our ability to meet our
customers' needs and expand our customer base."
Mr. Badgley concluded, "Looking ahead to 2013, while visibility remains
limited we have seen initial signs that customer sentiment is beginning to
improve, and year-over-year comparisons will become more reflective of the
ongoing business as previous military orders ended in the fourth quarter of
2011. We believe our core strategy of geographic and product expansion,
combined with a continued commitment to operational execution, has us poised
for long-term growth. This will continue to be supported by our solid balance
sheet and strong free cash flows, which drives the creation of additional
shareholder value. Overall, assuming a continued broader economic recovery,
we see opportunities for growth going forward and are confident that we have
the resources and managerial capabilities to take advantage of developing
opportunities in the marketplace."
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 7, 2013, at 10:00
AM ET. Listeners can access the conference call live and archived over the
Internet through a link at:
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 15, 2013. The
replay number is (877) 344-7529, Passcode 10025213.
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 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. They include statements in this release
relating to the future economic activity and demand for our products and our
future revenue levels, operating results and growth initiatives, among
others. 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. These forward-looking
statements are subject to a number of risks and uncertainties, including,
among other things, economic and market conditions; the risks related to the
general economic health of our customers; the success and timing of existing
and additional export and government orders; our customers' access to capital
and credit to fund purchases, including the ability of our customers to secure
floor plan financing; changes in fuel and other transportation costs; the
cyclical nature of our industry; our dependence on outside suppliers of raw
materials; changes in the cost of aluminum, steel and related raw materials;
and those other risks discussed in our filings with the SEC, including those
risks discussed under the caption "Risk Factors" in our Annual Report on Form
10-K for fiscal 2012, 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)
Three Months Ended Year Ended
December 31 December 31
2012 2011 Change 2012 2011 Change
NET SALES $ 82,403 $ 109,391 -24.7% $ $ 412,659 -17.0%
COST OF 73,010 93,112 -21.6% 302,606 342,557 -11.7%
SELLING, GENERAL 6,620 8,084 -18.1% 27,507 31,407 -12.4%
INTEREST 89 194 -54.1% 712 728 -2.2%
OTHER (INCOME) (15) (143) -89.5% (815) (161) N/A
TOTAL COSTS AND 79,704 101,247 -21.3% 330,010 374,531 -11.9%
INCOME BEFORE 2,699 8,144 -66.9% 12,653 38,128 -66.8%
INCOME TAX 1,023 3,227 -68.3% 3,531 15,120 -76.6%
NET INCOME $ $ 4,917 -65.9% $ 9,122 $ 23,008 -60.4%
BASIC INCOME PER $ $ 0.44 -65.9% $ $ -58.6%
COMMON SHARE 0.15 0.82 1.98
DILUTED INCOME $ $ 0.43 -65.1% $ $ -57.3%
PER COMMON SHARE 0.15 0.82 1.92
DECLARED PER $ $ $
COMMON 0.13 $ 0.12 8.3% 0.52 0.48 8.3%
BASIC 11,112 11,137 -0.2% 11,068 11,600 -4.6%
DILUTED 11,274 11,417 -1.3% 11,258 11,984 -6.1%
SOURCE Miller Industries, Inc.
Contact: Miller Industries, Inc., J. Vincent Mish, Chief Financial Officer,
+1-423-238-4171, or Frank Madonia, General Counsel, +1-423-238-4171; or FTI
Consulting, Inc. Investor Contact: Eric Boyriven/Matt Steinberg,
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