Core Viewpoint - Miller Industries (MLR) has experienced a stock decline of over 40% since the beginning of 2025, making it incrementally more attractive, although it is still not considered cheap enough for investment [1]. Group 1 - The stock of Miller Industries has decreased by more than 40% since early 2025 [1]. - The current valuation of Miller Industries is seen as incrementally more attractive due to the significant decline [1]. - Despite the decline, the stock is not viewed as cheap enough for favorable investment consideration [1].

Core Viewpoint - Miller Industries, Inc. has completed the acquisition of Omars – S.p.A for approximately €17.5 million ($20.3 million), enhancing its presence in the European market and expanding its product portfolio [1][2]. Acquisition Details - The acquisition is an all-cash transaction with a purchase price of about €17.5 million, subject to adjustments for cash and net working capital [1]. - Omars, based in Cuneo, Italy, has over 45 years of experience in manufacturing various types of towing and recovery vehicles [2]. Strategic Implications - This acquisition allows Miller Industries to increase its market share in Europe and provides additional manufacturing capacity, which is expected to improve flexibility and meet growing customer demands [2]. - Omars reported annual revenue of approximately $27 million for 2024, and the transaction is anticipated to be accretive in the first year [2]. Leadership Insights - CEO William G. Miller II emphasized that the acquisition is a significant step in expanding the company's global footprint and aligns with its capital allocation strategy [3]. - The combination of Miller Industries' resources with Omars' capabilities is expected to enhance top-line growth and profitability [3].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Miller Industries (MLR) as a strong value stock based on its financial metrics and Zacks ranking system [2][4][7]. Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market, relying on traditional analysis of key valuation metrics [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3]. Group 2: Miller Industries Financial Metrics - Miller Industries (MLR) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4]. - MLR's P/E ratio is 11.31, significantly lower than the industry average of 18.28, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated between 7.41 and 14.10 over the past 52 weeks, with a median of 11.73 [4]. - MLR's P/B ratio is 1.05, compared to the industry average of 3.12, indicating solid valuation [5]. - The P/B ratio has ranged from 1.05 to 2.23 in the past 12 months, with a median of 1.30 [5]. - MLR's P/S ratio is 0.52, lower than the industry average of 0.78, further supporting its undervaluation [6]. - These financial metrics collectively suggest that MLR is likely undervalued and has a strong earnings outlook, making it an impressive value stock [7].

Summary of Miller Industries FY Conference Call Company Overview - **Company Name**: Miller Industries (NYSE: MLR) - **Founded**: 1990 - **Headquarters**: Ottawa, Tennessee - **Employees**: Approximately 1,500 worldwide - **Industry**: Towing and recovery equipment manufacturing - **Manufacturing Facilities**: Four in the U.S., one in England, and one in France - **Key Brands**: Century, Vulcan, Chevron, Holmes, Boniface, GJ Core Business Insights - **Product Range**: Offers towing and recovery equipment including carriers up to 30 feet and towing units with boom capabilities up to 100 tons [5][10] - **Market Position**: World's largest manufacturer of towing and recovery equipment [10] - **Revenue**: Q3 revenue reported at $178.7 million with net income of $3.1 million [21] - **Dividend**: Announced 60th consecutive quarterly dividend [11] Industry Dynamics - **Market Size**: Multi-billion dollar global market, primarily focused on commercial towing [12] - **Key Drivers**: Miles driven, accidents per miles driven, last-mile deliveries, and aging vehicle fleets (average age of 12.8 to 13 years) [12][13] - **Growth Accelerators**: Trade cycle acceleration, future emission changes, global conflicts, and military vehicle recovery upgrades [13] Strategic Focus - **Employee Development**: Emphasis on education and career development for employees [14] - **Innovation**: Focus on designing and manufacturing high-quality products with greater payloads and lower vehicle weight [14] - **Distribution Network**: 90% of revenue from North America, with a strong exclusive distribution network [15][16] - **Market Share Expansion**: Targeting growth in the rental industry and European markets [20][21] Financial Performance and Outlook - **Current Challenges**: Slower market conditions noted since Q2, with inventory management being a focus [22][36] - **Future Projections**: Anticipated normalization of production levels by mid-Q1 2026 [22][38] - **Capital Allocation**: Focus on dividends, debt reduction, share repurchases, and M&A opportunities [23] International Operations - **European Market**: Strong backlog and expansion projects in Europe, with a focus on military contracts and rental market share [19][26] - **Export Activities**: Products exported to approximately 60 countries [19] Risks and Considerations - **Tariff Monitoring**: No major impact from tariffs observed yet, but ongoing monitoring of steel imports and pricing [22][35] - **Military Market**: Increased RFQ activity post-Ukraine conflict, with expectations for growth in military contracts [41][42] Additional Insights - **Technological Adaptation**: Use of AI in operations, but human labor remains essential in manufacturing [28] - **Electric Vehicles**: No significant impact expected from electric vehicles on the towing industry, as they still require towing services [30][32] - **Financing Environment**: Stable financing availability for operators, with current street rates around 7.5% to 8% [43] This summary encapsulates the key points discussed during the Miller Industries FY Conference Call, highlighting the company's position, market dynamics, strategic focus, and financial outlook.

Company Overview - Miller Industries, Inc. is the world's largest manufacturer of towing and recovery equipment, marketing its products under well-known brands such as Century®, Vulcan®, Chevron™, Holmes®, Challenger®, Champion®, Jige™, Boniface™, Titan®, and Eagle® [4]. Upcoming Event - The CEO William Miller II and CFO Deborah Whitmire will present at the Southwest IDEAS Investor Conference on November 19, 2025, at 8:35 AM CT [1]. - The presentation will be webcast and accessible through the conference host's website and the investor relations section of Miller Industries' website [1]. Conference Information - The IDEAS Investor Conferences aim to provide independent venues for quality companies to present their investment merits to investment professionals, sponsored by investors for the benefit of regional investment communities [2]. - The conference sponsors collectively manage over $200 billion in assets [2].

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks [1] - Value investing is highlighted as a popular strategy for finding great stocks across various market conditions [2] - The Style Scores system is introduced, particularly the "Value" category, which helps investors identify stocks with strong value characteristics [3] Company Analysis: Miller Industries (MLR) - Miller Industries currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4] - The stock has a P/E ratio of 11.31, significantly lower than the industry average of 19.32, suggesting it may be undervalued [4] - Over the past 52 weeks, MLR's Forward P/E has fluctuated between 7.41 and 14.10, with a median of 11.73, further indicating its valuation dynamics [4] - The P/S ratio for MLR is 0.52, compared to the industry's average P/S of 0.76, reinforcing the notion of undervaluation [5] - These metrics contribute to MLR's strong Value grade and suggest that the stock is likely undervalued, supported by a positive earnings outlook [6]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to ensure smooth access to content and services [1] Group 1 - The article suggests that users may face access issues if they have ad-blockers enabled, indicating a need to disable them for proper functionality [1]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $178.7 million, a 43.1% year-over-year decrease, primarily due to a drop in chassis shipments [6][8] - Gross profit was $25.3 million, or 14.2% of net sales, compared to $42 million, or 13.4% of net sales in the prior year, with margin improvement driven by product mix [6][8] - Net income for Q3 2025 was $3.1 million, or $0.27 per diluted share, down from $15.4 million, or $1.33 per diluted share in the prior year [8] Business Line Data and Key Metrics Changes - SG&A expenses were $21.2 million in Q3 2025, down from $22.3 million in Q3 2024, with SG&A as a percentage of net sales at 11.9%, 480 basis points higher than the prior year [6][8] - A one-time cost of $900,000 for retirement packages was incurred, with a total program cost of $2.7 million expected to be recognized in Q4 [7] Market Data and Key Metrics Changes - Accounts receivable as of September 30, 2025, was $232.6 million, down from $270.4 million in the previous quarter and $313.4 million at the end of the previous year [9] - Inventories at the end of Q3 were $180.7 million, up from $165.5 million in Q2, attributed to pre-purchasing materials to mitigate tariff effects [9] Company Strategy and Development Direction - The company is focused on reducing production to manage elevated field inventory and has implemented cost-saving measures [4][10] - There is strong interest in the global military business, with expectations for increased demand in 2026 [5][12] - The company continues to return capital to shareholders, having paid dividends for 59 consecutive quarters and repurchased approximately $1.2 million of stock in Q3 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of strength, anticipating a recovery in the commercial market and increased demand for military vehicles [12][15] - The company reaffirmed its 2025 fiscal year revenue guidance in the range of $750 million to $800 million, factoring in potential impacts from holidays and maintenance [14][15] Other Important Information - The company has reduced its debt balance by $10 million during Q3, bringing it down to $45 million, with an additional $10 million paid down since then [8][9] - Management is closely monitoring field inventory and retail activity to align production with demand [19] Q&A Session Summary Question: Can you explain the inventory levels and their implications for 2026? - Management indicated that inventory levels are close to normalized, and they expect a return to more historic levels of chassis and body mix in 2026 [18][19] Question: Will the fourth quarter margins remain similar to current levels? - Management noted that Q4 is typically shorter due to holidays and maintenance, which may exert slight downward pressure on margins, but the mix is expected to remain similar [23] Question: What is the expected SG&A run rate going forward? - A clean SG&A run rate is anticipated in Q1 2026, with a split of retirements between salaried and hourly employees [24] Question: Are the factors driving demand for tow trucks still intact? - Management confirmed that the factors driving demand, such as older vehicles and increased road usage, remain unchanged [25][26]

FORWARD LOOKING STATEMENTS SAFE HARBOR STATEMENT Certain statements in this presentation 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 compar ...

Financial Performance - Total net sales for Q3 FY 2025 were $178.67 million, a decrease of 43.1% compared to $314.27 million in Q3 FY 2024[16] - Gross profit for Q3 FY 2025 was $25.33 million, down 39.7% from $42.03 million in Q3 FY 2024[16] - Net income for Q3 FY 2025 was $3.08 million, a decline of 80.0% compared to $15.43 million in Q3 FY 2024[16] - Net income for the nine months ended September 30, 2025, was $19,605,000, a decrease of 63.0% compared to $52,962,000 for the same period in 2024[41] - Net sales for the nine months ended September 30, 2025, were $618,353,000, down 40.2% from $1,035,593,000 in 2024[41] - Gross profit for the nine months ended September 30, 2025 was $93.9 million, a decrease of 31.7% from $137.3 million in 2024, with a gross profit margin of 15.2%[102][106] - Net income for the nine months ended September 30, 2025 was $19.6 million, a decrease of 63.0% from $53.0 million in 2024[102] Assets and Liabilities - Total current assets decreased to $469.47 million as of September 30, 2025, down 11.4% from $529.77 million as of December 31, 2024[13] - Total assets decreased to $604.34 million as of September 30, 2025, down 9.4% from $667.02 million as of December 31, 2024[13] - Total liabilities decreased to $183.69 million as of September 30, 2025, down 30.8% from $265.99 million as of December 31, 2024[13] - Cash and temporary investments increased to $38.40 million as of September 30, 2025, up 56.5% from $24.34 million as of December 31, 2024[13] - Cash and temporary investments as of September 30, 2025 totaled $38.4 million, with an additional $55.0 million available for borrowing under the credit facility[114] Cash Flow and Investments - Net cash flows provided by operating activities increased to $49,860,000 for the nine months ended September 30, 2025, compared to $28,589,000 in 2024, representing a growth of 74.3%[41] - Cash used in investing activities was $7.3 million, a decrease of 47.6% from $14.0 million in 2024, primarily for property, plant, and equipment[116][118] - Cash used in financing activities increased significantly to $30.6 million from $4.4 million in 2024, mainly due to payments on the credit facility and dividends[116][119] Stock and Dividends - The company declared cash dividends of $0.20 per share for Q3 FY 2025, compared to $0.19 per share in Q3 FY 2024[16] - A quarterly cash dividend of $0.20 per share was declared on November 3, 2025, payable on December 9, 2025[74] - The company repurchased common stock amounting to $3,762,000 during the nine months ended September 30, 2025, compared to $2,898,000 in 2024, an increase of 29.7%[41] - The company repurchased 84,682 shares of common stock at a total cost of $3.8 million, averaging $44.43 per share during the nine months ended September 30, 2025[67] - The stock repurchase program was authorized by the Board of Directors on April 2, 2024, allowing for up to $25.0 million in aggregate value of common stock to be repurchased[132] Operational Highlights - Selling, general and administrative expenses decreased by 4.8% to $21.2 million for the three months ended September 30, 2025, compared to $22.3 million in 2024[96] - The company reduced its workforce by approximately 150 positions across three U.S. manufacturing facilities as part of a comprehensive cost reduction plan[86] - The company anticipates ongoing challenges from high equipment ownership costs, including increased insurance premiums and elevated interest rates[90] - The strategic investment in Southern Hydraulic Cylinder, Inc. in May 2023 aimed to enhance supply chain stability[83] - The company expects to continue investing in robotics and automated material handling equipment across all domestic manufacturing facilities[83] Revenue Breakdown - North American revenue for the nine months ended September 30, 2025, was $510.3 million, down 46.0% from $945.8 million in 2024[68] - Net foreign sales increased by 10.6% to $30.6 million for the three months ended September 30, 2025, compared to $27.7 million in 2024[93] Lease and Commitments - Total lease cost for the three months ended September 30, 2025, was $343,000, compared to $288,000 in the same period of 2024, reflecting an increase of 19.1%[54] - The weighted-average remaining lease term for operating leases was 1.6 years as of September 30, 2025[55] - The company had commitments of approximately $15.5 million for construction and acquisition of property, plant, and equipment as of September 30, 2025[57] - The company authorized approximately $9.1 million for an expansion at a facility in France, with construction expected to commence in Q1 2026[58] Borrowings - The company had outstanding borrowings of $45.0 million under the credit facility as of September 30, 2025, down from $65.0 million as of December 31, 2024[49] - The company’s long-term obligations include a $100 million revolving credit facility with a maturity date of May 31, 2027[47]