Miller Industries Reports 2013 Third Quarter Results And Declares Regular
CHATTANOOGA, Tenn., Nov. 6, 2013
CHATTANOOGA, Tenn., Nov.6, 2013 /PRNewswire/ --Miller Industries, Inc.
(NYSE: MLR) (the "Company") today announced financial results for the third
quarter ended September 30, 2013.
For the third quarter of 2013, net sales were $105.1 million, an increase of
34.8% compared to $78.0 million for the third quarter of 2012. Net income
attributable to the Company in the third quarter of 2013 was $2.6 million, or
$0.23 per diluted share compared to net income in the prior year period of
$2.9 million, or $0.26 per diluted share. The third quarter of 2012 included
$1.4 million of income tax benefits from production activity deductions and
research and development and other tax credits, which represented
approximately $0.12 per diluted share in the quarter.
Gross profit for the third quarter of 2013 was $10.8 million, or 10.3% of net
sales, compared to $9.2 million, or 11.8% of net sales, for the third quarter
of 2012. For the third quarter of 2013, selling, general and administrative
expenses were $6.7 million, or 6.4% of net sales, compared to $6.7 million, or
8.6% of net sales, in the prior year period.
For the nine-month period ended September 30, 2013, net sales were $295.9
million, an increase of 13.7% compared to $260.3 million in the prior year
period. The Company reported net income of $6.9 million, or $0.61 per diluted
share, for the first nine months of 2013, compared to net income for the first
nine months of 2012 of $7.4 million, or $0.66 per diluted share. The first
nine months of 2012 included $1.4 million of income tax benefits from
production activity deductions and research and development and other tax
The Company also announced that its Board of Directors has declared a
quarterly cash dividend of $0.14 per share, payable December 16, 2013, to
shareholders of record after the market closes on December 9, 2013.
Jeffrey I. Badgley, CEO of the Company, stated, "Our performance in the
quarter reflected solid order growth driven by improving commercial markets.
In recent months, we have ramped up our production levels and invested in our
product development to more fully capitalize on the recovering economic
conditions and improved consumer sentiment. As a result, we delivered strong
revenue growth by taking advantage of these opportunities across our markets.
While the margins were impacted by the product mix during this quarter, we
focused on cost controls, which were reflected by SG&A expenses being
relatively unchanged, despite the significant increase to net sales in 2013 as
compared to a year ago levels."
Mr. Badgley added, "During the quarter, we continued to deliver on our order
with a prime contractor to provide towing and recovery equipment to the French
military, an order that will proceed through the end of 2014. We also worked
on other more modestly-sized orders in Europe and other areas of the world.
Finally, we remain optimistic about our international initiatives to expand
our distribution channels across key growth regions."
Mr. Badgley also noted, "Domestically, we continue to make progress on the
Delavan venture. We have begun to produce trailers as we continue to prepare
our facility and work force for production increases. Progress has been slower
than anticipated. We remain encouraged by the demand levels in the market for
the Delavan product."
Mr. Badgley concluded, "Overall, I am pleased with the progress we made during
the quarter and with the results that we have achieved. Although economic
conditions are improving, there continue to be uncertainties in the
marketplace, and given our limited visibility, we remain cautious on our
outlook. Despite these challenges, we will continue to aggressively pursue
market opportunities as they emerge while leveraging our costs. As evidenced
during the third quarter, we are confident in our approach to our strategic
initiatives and believe that our ability to execute on our strategy will drive
growth for our future."
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, November 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 November 15, 2013.
The replay number is (877) 344-7529, Passcode 10036087.
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 Nine Months Ended
September 30 September 30
2013 2012 Change 2013 2012 Change
NET SALES $ 105,108 $ 77,957 34.8% $ $ 260,260 13.7%
COSTS OF OPERATIONS 94,280 68,742 37.2% 264,700 229,596 15.3%
GROSS PROFIT 10,828 9,215 17.5% 31,192 30,664 1.7%
and Administrative 6,749 6,681 1.0% 20,668 20,887 -1.0%
Interest Expense, 102 192 -46.9% 253 623 -59.4%
Other (Income) (11) (97) -88.7% (16) (800) -98.0%
Total Operating 6,840 6,776 1.0% 20,905 20,710 1.0%
INCOME BEFORE 3,988 2,439 63.5% 10,287 9,954 3.4%
INCOME TAX 1,464 (451) N/A 3,767 2,508 50.2%
NET INCOME 2,524 2,890 -12.7% 6,520 7,446 -12.4%
98 -- N/A 331 -- N/A
ATTRIBUTABLE TO $
MILLER $ 2,622 $ 2,890 -9.3% 6,851 $ 7,446 -8.0%
BASIC INCOME PER $ $ -11.5% $ $ -9.0%
COMMON SHARE 0.23 0.26 0.61 0.67
DILUTED INCOME $ $ -11.5% $ $ -7.6%
PER COMMON SHARE 0.23 0.26 0.61 0.66
DECLARED PER $ $ 7.7% $ $ 7.7%
COMMON 0.14 0.13 0.42 0.39
BASIC 11,242 11,067 1.6% 11,225 11,052 1.6%
DILUTED 11,325 11,258 0.6% 11,320 11,251 0.6%
SOURCE Miller Industries, Inc.
Contact: Miller Industries, Inc., J. Vincent Mish, Chief Financial Officer,
(423) 238-4171, or Frank Madonia, General Counsel, (423) 238-4171; or FTI
Consulting, Inc. Investor Contact: Matt Steinberg, (212) 850-5600
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