Financial Data and Key Metrics Changes - Sales for Q1 2021 decreased by 3.5% year-over-year to $169.9 million, impacted by delivery delays from the enterprise software rollout and supply chain challenges [6][9] - Gross profit fell 14.6% year-over-year to $15.8 million, with gross margin contracting approximately 120 basis points to 9.3% due to decreased sales and increased transportation costs [6][10] - Net income for Q1 2021 was $3.2 million or $0.28 per share, down from $5.4 million or $0.48 per share in Q1 2020 [12] Business Line Data and Key Metrics Changes - The international business faced challenges from pandemic-related restrictions and global shipping constraints, but underlying demand trends remained favorable [7] - Domestic customer demand improved, evidenced by a strong backlog and increasing order rates, despite transportation and freight availability issues [7] Market Data and Key Metrics Changes - The ongoing pandemic continued to impact operations, particularly in Europe, affecting export sales [7] - Transportation and freight availability challenges increased shipping costs, impacting overall performance [7] Company Strategy and Development Direction - The company is focused on capitalizing on strong industry demand trends and has a commitment to returning capital to shareholders, as shown by the declaration of a quarterly dividend [14][15] - Investments in streamlining operations and enhancing customer service are prioritized to drive business forward [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pace of vaccine rollouts and the gradual normalization of the economy, which is expected to benefit the company [15] - Despite potential supply chain disruptions and rising raw material costs, the company remains focused on controllable aspects to meet customer demand and generate shareholder value [17] Other Important Information - Cash and temporary investments as of March 31, 2021, were $56.2 million, slightly down from $57.5 million at the end of 2020 but up from $43.1 million a year ago [13] - The board approved a quarterly cash dividend of $0.18 per share, marking the 42nd consecutive quarterly dividend [14] Q&A Session Summary Question: No specific questions were recorded during the Q&A session - The operator noted that there were no further questions at the time [20]

PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets – March 31, 2021 and December 31, 2020 2 Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2021 and 2020 3 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2021 and 2020 4 Condensed Consolidated Statements of Shareholders' Equity for the Three Months Ended March 31, 2021 and 2020 5 Condensed Consolidated Statements of Cash Flows for the ...

Miller Industries, Inc. (NYSE:MLR) Q4 2020 Earnings Conference Call March 4, 2021 10:00 AM ET Company Participants Brendan Dunlap ??? Investor Relations, FTI Consulting Jeff Badgley ??? Co-Chief Executive Officer Debbie Whitmire ??? Executive Vice President and Chief Financial Officer Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the Miller Industries Fourth Quarter 2020 Results Conference Call. Please note, this event is being recorded. And now at this time, I would l ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-14124 MILLER INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Tennessee 62-1566286 (State or ot ...

Miller Industries, Inc. (NYSE:MLR) Q3 2020 Earnings Conference Call November 5, 2020 10:00 AM ET Company Participants Brendan Dunlap - Investor Relations, FTI Consulting Jeff Badgley - Co-Chief Executive Officer Debbie Whitmire - Executive Vice President & Chief Financial Officer Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the Miller Industries Third Quarter 2020 Results Conference Call. Please note this event is being recorded. And now at this time, I would like to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________________________________ to ________________________________________ Commission file number 001-14124 MILLER INDUSTRIES, INC. (Exac ...

Miller Industries Inc (NYSE:MLR) Q2 2020 Results Conference Call August 6, 2020 10:00 AM ET Company Participants Brendan Dunlap - Investor Relations Jeffrey Badgley - Co-Chief Executive Officer Deborah Whitmire - Chief Financial Officer Bill Miller - Chairman of the Board William Miller - President, Co-Chief Executive Officer & Director Conference Call Participants James Lee - Potrero Capital Operator Good day, ladies and gentlemen, and welcome to the Miller Industries Second Quarter 2020 Results Conferen ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) Provides key filing details for Miller Industries, Inc.'s Form 10-Q report - Miller Industries, Inc. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2020, confirming its status as an accelerated filer and not a shell company[1](index=1&type=chunk) Condensed Consolidated Balance Sheets (in thousands) | Metric | Value | | :----- | :---- | | Commission file number | 001-14124 | | Shares outstanding (July 31, 2020) | 11,405,468 | | Securities registered | Common Stock, par value $0.01 per share (MLR on NYSE) | [FORWARD-LOOKING STATEMENTS](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) Highlights inherent risks and uncertainties impacting forward-looking statements, including COVID-19 and industry factors - The report contains forward-looking statements, particularly in 'Management's Discussion and Analysis,' subject to risks like COVID-19 impact, industry cyclicality, raw material dependence, and regulatory changes, which could cause actual results to differ materially[6](index=6&type=chunk) [PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements and their accompanying detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position, showing changes in assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | $256,894 | $287,452 | | Total noncurrent assets | $107,079 | $104,515 | | **TOTAL ASSETS** | **$363,973** | **$391,967** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total current liabilities | $89,571 | $124,282 | | Total noncurrent liabilities | $9,514 | $9,758 | | **Total liabilities** | **$99,085** | **$134,040** | | Total shareholders' equity | $264,888 | $257,927 | | **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **$363,973** | **$391,967** | - Total assets decreased by **$27,994 thousand (7.1%)** from December 31, 2019, to June 30, 2020, primarily due to a decrease in accounts receivable[9](index=9&type=chunk) - Total liabilities decreased by **$34,955 thousand (26.1%)**, mainly driven by a reduction in accounts payable[9](index=9&type=chunk) - Shareholders' equity increased by **$6,961 thousand (2.7%)**[9](index=9&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Details the company's revenue, expenses, and net income performance over specified periods Condensed Consolidated Statements of Income (in thousands, except per share data) | Item | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Sales | $128,529 | $222,346 | $304,583 | $419,559 | | Costs of Operations | $110,802 | $197,133 | $268,318 | $371,749 | | Gross Profit | $17,727 | $25,213 | $36,265 | $47,810 | | Operating Expenses (SG&A) | $10,067 | $10,968 | $21,041 | $21,183 | | Income Before Income Taxes | $7,506 | $13,467 | $14,620 | $24,927 | | Net Income | $5,826 | $10,683 | $11,257 | $19,343 | | Basic Income Per Common Share | $0.51 | $0.94 | $0.99 | $1.70 | | Cash Dividends Declared Per Common Share | $0.18 | $0.18 | $0.36 | $0.36 | - Net sales decreased significantly by **42.2%** for the three months and **27.4%** for the six months ended June 30, 2020, compared to the prior year, primarily due to COVID-19 impacts[11](index=11&type=chunk) - Net income also saw substantial declines, falling **45.4%** for the quarter and **41.8%** for the six-month period[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income components, including foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (in thousands) | Item | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $5,826 | $10,683 | $11,257 | $19,343 | | Foreign currency translation adjustment | $(312) | $(930) | $(384) | $(653) | | Comprehensive Income | $5,514 | $9,753 | $10,873 | $18,690 | - Comprehensive income decreased by **43.5%** for the three months and **41.8%** for the six months ended June 30, 2020, reflecting the decline in net income and continued foreign currency translation adjustments[14](index=14&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Outlines changes in shareholders' equity, including net income, dividends, and other adjustments Condensed Consolidated Statements of Shareholders' Equity (in thousands) | Item | Dec 31, 2019 | Mar 31, 2020 | June 30, 2020 | | :-------------------------------- | :----------- | :----------- | :------------ | | Common Stock | $114 | $114 | $114 | | Additional Paid-In Capital | $151,055 | $151,249 | $151,249 | | Accumulated Surplus | $112,261 | $115,639 | $119,412 | | Accumulated Other Comprehensive Loss | $(5,503) | $(5,575) | $(5,887) | | **Total Shareholders' Equity** | **$257,927** | **$261,427** | **$264,888** | Key Changes (Six Months Ended June 30, 2020) * Net income: $11,257 thousand * Foreign currency translation adjustments: $(384) thousand * Issuance of common stock to non-employee directors: $194 thousand * Dividends paid: $(4,106) thousand - Total shareholders' equity increased from **$257,927 thousand** at December 31, 2019, to **$264,888 thousand** at June 30, 2020, driven by net income partially offset by dividends paid and foreign currency translation adjustments[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Analyzes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash flows from operating activities | $23,035 | $8,325 | | Net cash flows from investing activities | $(7,503) | $(8,430) | | Net cash flows from financing activities | $(4,300) | $702 | | Effect of exchange rate changes on cash | $(188) | $(398) | | **Net change in cash and temporary investments** | **$11,044** | **$199** | | Cash and temporary investments, beginning of period | $26,072 | $27,037 | | **Cash and temporary investments, end of period** | **$37,116** | **$27,236** | Supplemental Disclosure (in thousands) | Item | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash payments for interest | $1,203 | $1,655 | | Cash payments for income taxes, net of refunds | $1,710 | $5,249 | - Net cash provided by operating activities significantly increased to **$23,035 thousand** for the six months ended June 30, 2020, from **$8,325 thousand** in the prior year, primarily due to decreased cash usage for new production and continued receivables inflow[19](index=19&type=chunk) - Cash used in financing activities shifted from a net inflow of **$702 thousand** in 2019 to a net outflow of **$4,300 thousand** in 2020, mainly due to dividend payments and net repayments on credit facility[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures for the condensed consolidated financial statements [1. BASIS OF PRESENTATION](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) Explains the basis for preparing the unaudited interim consolidated financial statements - The condensed consolidated financial statements are unaudited, prepared in accordance with SEC rules and GAAP, and include all normal recurring adjustments, with interim results not necessarily indicative of full fiscal year results[20](index=20&type=chunk) [2. RECENT ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=2.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) Discusses the adoption and expected impact of recent accounting pronouncements - The Company adopted ASU 2018-15 (Intangibles – Goodwill and Other – Internal-Use Software) in Q1 2020, with no material impact[22](index=22&type=chunk) - ASU 2019-12 (Income Taxes) will be effective after December 15, 2020, and is not expected to have a material impact[23](index=23&type=chunk) [3. BASIC INCOME PER SHARE](index=9&type=section&id=3.%20BASIC%20INCOME%20PER%20SHARE) Defines the calculation method for basic income per share and capital structure - Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding, with the Company having a simple capital structure and no dilutive instruments[24](index=24&type=chunk) [4. REVENUE](index=10&type=section&id=4.%20REVENUE) Details revenue recognition policies and disaggregation of net sales by geographic region - Substantially all revenue is from sales of towing equipment, recognized when products are shipped or control transfers under bill and hold arrangements[26](index=26&type=chunk) - Revenue is disaggregated by geographic location[27](index=27&type=chunk) Net Sales by Geographic Location (in thousands) | Region | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $107,460 | $191,753 | $251,316 | $355,646 | | Foreign | $21,069 | $30,593 | $53,267 | $63,913 | | **Total Net Sales** | **$128,529** | **$222,346** | **$304,583** | **$419,559** | Contract Liabilities (in thousands) | Date | Balance | | :--- | :------ | | June 30, 2020 | $287 | | December 31, 2019 | $324 | - **$37 thousand** of contract liability recognized into earnings during the six months ended June 30, 2020[29](index=29&type=chunk) [5. INVENTORIES](index=10&type=section&id=5.%20INVENTORIES) Describes inventory valuation methods and composition, net of reserves - Inventories are valued at the lower of cost or net realizable value, using the first-in, first-out (FIFO) method, with costs including materials, labor, and factory overhead[31](index=31&type=chunk) Inventories, net of reserves (in thousands) | Category | June 30, 2020 | December 31, 2019 | | :------------- | :------------ | :---------------- | | Chassis | $6,816 | $6,561 | | Raw materials | $41,223 | $39,444 | | Work in process | $16,694 | $16,520 | | Finished goods | $26,169 | $25,440 | | **Total Inventories** | **$90,902** | **$87,965** | [6. LONG-TERM OBLIGATIONS](index=11&type=section&id=6.%20LONG-TERM%20OBLIGATIONS) Outlines the company's credit facilities and other long-term debt obligations - The Company maintains a **$50,000 thousand** unsecured revolving credit facility with First Horizon Bank, maturing May 31, 2022, and was in compliance with all covenants[33](index=33&type=chunk) - A French subsidiary has an unsecured fixed-rate loan of **$185 thousand** due September 30, 2020[36](index=36&type=chunk) Outstanding Borrowings (in thousands) | Obligation | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | Credit Facility | $5,000 | $4,998 | | French Subsidiary Loan | $185 | $368 | Credit Facility Activity (in thousands) * March 2020: Drew **$25,000** for working capital due to COVID-19 * Q2 2020: Repaid **$25,000** as cash position strengthened [7. COMMITMENTS AND CONTINGENCIES](index=11&type=section&id=7.%20COMMITMENTS%20AND%20CONTINGENCIES) Details the company's leasing activities, other commitments, and potential contingencies [Leasing Activities](index=11&type=section&id=Leasing%20Activities) Describes the company's operating and finance lease agreements and related obligations - The Company leases equipment and facilities under operating and finance lease agreements, expiring through 2026[37](index=37&type=chunk) - Right-of-use assets and lease obligations are recognized based on the present value of lease payments, using the incremental borrowing rate[38](index=38&type=chunk)[39](index=39&type=chunk) Lease Obligations and Costs (in thousands) | Item | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | Operating Lease Obligation | $1,430 | $1,807 (undiscounted) | | Finance Lease Obligation | $48 | $61 (undiscounted) | Total Lease Cost (in thousands) | Period | 2020 | 2019 | | :-------------------------------- | :--- | :--- | | Three Months Ended June 30 | $245 | $509 | | Six Months Ended June 30 | $466 | $967 | Weighted Average Lease Terms (June 30, 2020) * Operating leases: 5.1 years * Finance leases: 2.2 years [Other Commitments](index=14&type=section&id=Other%20Commitments) Presents the company's capital commitments for property, plant, equipment, and software licenses Commitments (in thousands) | Category | June 30, 2020 | December 31, 2019 | | :-------------------------------- | :------------ | :---------------- | | Property, Plant and Equipment | $11,964 | $3,583 | | ERP System Software License Fees | $6,179 | $8,430 | - Property, Plant and Equipment commitment includes **$10,000 thousand** for upgrading fabrication equipment at Greeneville, TN[44](index=44&type=chunk) [Contingencies](index=14&type=section&id=Contingencies) Discusses potential financial obligations from repurchase agreements and legal proceedings - The Company has repurchase agreements with third-party lenders for repossessed products from distributors, with a maximum potential repurchase amount of **$93,737 thousand** at June 30, 2020[45](index=45&type=chunk) - Litigation arising in the normal course of business is accrued for when probable and estimable, and management believes any excess liability will not materially impact financial position[48](index=48&type=chunk) [8. INCOME TAXES](index=16&type=section&id=8.%20INCOME%20TAXES) Provides information on the company's income tax position and carryforwards - As of June 30, 2020, the Company had no federal net operating loss carryforwards and no significant state operating loss carryforwards[49](index=49&type=chunk) [9. SUBSEQUENT EVENTS](index=16&type=section&id=9.%20SUBSEQUENT%20EVENTS) Reports significant events occurring after the balance sheet date, such as dividend declarations - On August 3, 2020, the Board of Directors declared a quarterly cash dividend of **$0.18 per share**, payable September 14, 2020, to shareholders of record as of September 7, 2020[50](index=50&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of financial condition, operating results, COVID-19 impact, and liquidity [Executive Overview](index=17&type=section&id=Executive%20Overview) Provides an overview of the company's business, key performance indicators, and industry factors - Miller Industries is the world's largest manufacturer of towing and recovery equipment, operating globally under various brand names[53](index=53&type=chunk) - Management monitors revenue, operating income, gross margin, net income, EPS, capital expenditures, and cash flow, with revenue influenced by economic conditions, product demand, technological competitiveness, and raw material costs[54](index=54&type=chunk)[55](index=55&type=chunk) - The Company emphasizes innovation, investing in robotics, advanced manufacturing technologies, an R&D facility, and an ongoing ERP system migration[56](index=56&type=chunk) - The industry is cyclical, and the Company is concerned about factors like consumer confidence, credit market volatility, fuel/insurance costs, and raw material price changes[57](index=57&type=chunk)[58](index=58&type=chunk) [Impact of COVID-19](index=19&type=section&id=Impact%20of%20COVID-19) Assesses the operational and financial effects of the COVID-19 pandemic on the company - The COVID-19 pandemic led to operational modifications, including limited shutdowns and workforce rotations, to ensure employee safety[62](index=62&type=chunk) - The Company drew and subsequently repaid **$25,000 thousand** from its credit facility as a precautionary liquidity measure[63](index=63&type=chunk) - Material curtailments of new chassis deliveries and reduced product orders caused domestic and international plant shutdowns, negatively impacting Q2 revenues but strengthening the order backlog[64](index=64&type=chunk) - The future impact of COVID-19 on operations and financial performance remains highly uncertain, depending on the pandemic's duration, severity, and economic recovery[65](index=65&type=chunk) [Critical Accounting Policies](index=19&type=section&id=Critical%20Accounting%20Policies) Identifies key accounting policies requiring significant management judgment and their stability - The Company's critical accounting policies, requiring significant management judgment, include those related to accounts receivable, inventory, long-lived assets, warranty reserves, revenues, and income taxes, with no significant changes during the first six months of 2020[66](index=66&type=chunk) [Results of Operations – Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019](index=21&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202020%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202019) Compares financial performance for the three months ended June 30, highlighting key variances Financial Performance (Three Months Ended June 30, in thousands) | Item | 2020 | 2019 | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | | Net Sales | $128,529 | $222,346 | -42.2% | | Costs of Operations | $110,802 | $197,133 | -43.8% | | Gross Profit | $17,727 | $25,213 | -29.7% | | SG&A Expenses | $10,067 | $10,968 | -8.3% | | Income Before Income Taxes | $7,506 | $13,467 | -44.3% | | Net Income | $5,826 | $10,683 | -45.4% | | Basic Income Per Common Share | $0.51 | $0.94 | -45.7% | - Net sales decreased due to COVID-19 related supply chain issues, shutdowns, and safety adjustments[69](index=69&type=chunk) - Costs of operations decreased as a percentage of sales (**86.2%** vs **88.7%**), reflecting enhanced margins from product mix changes[70](index=70&type=chunk) - SG&A expenses decreased in absolute terms but increased as a percentage of sales (**7.8%** vs **4.9%**) due to reduced fixed cost absorption[71](index=71&type=chunk) - Interest expense, net, decreased due to lower credit facility and floor plan interest[72](index=72&type=chunk) [Results of Operations – Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019](index=21&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202020%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202019) Compares financial performance for the six months ended June 30, detailing significant changes Financial Performance (Six Months Ended June 30, in thousands) | Item | 2020 | 2019 | Change (%) | | :-------------------------------- | :--- | :--- | :--------- | | Net Sales | $304,583 | $419,559 | -27.4% | | Costs of Operations | $268,318 | $371,749 | -27.8% | | Gross Profit | $36,265 | $47,810 | -24.2% | | SG&A Expenses | $21,041 | $21,183 | -0.7% | | Income Before Income Taxes | $14,620 | $24,927 | -41.3% | | Net Income | $11,257 | $19,343 | -41.8% | | Basic Income Per Common Share | $0.99 | $1.70 | -41.8% | - Net sales decreased due to COVID-19 impacts, including supply chain issues and shutdowns[75](index=75&type=chunk) - Costs of operations decreased as a percentage of sales (**88.1%** vs **88.6%**), primarily due to product mix differences[76](index=76&type=chunk) - SG&A expenses remained relatively flat in absolute terms but increased as a percentage of sales (**6.9%** vs **5.0%**)[77](index=77&type=chunk) - Interest expense, net, decreased due to lower credit facility and chassis interest[78](index=78&type=chunk) - Other (income) expense, net, shifted from a net loss of **$315 thousand** in 2019 to a net gain of **$189 thousand** in 2020, primarily from foreign currency exchange gains[79](index=79&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Analyzes the company's cash position, sources, and uses of capital, and future liquidity - Cash provided by operating activities increased significantly to **$23,035 thousand** for the six months ended June 30, 2020, from **$8,325 thousand** in 2019, due to reduced cash usage for new production while receivables from prior quarters continued to flow in[80](index=80&type=chunk) - Cash used in investing activities was **$7,503 thousand**, primarily for property, plant, and equipment purchases[81](index=81&type=chunk) - Cash used in financing activities was **$4,300 thousand**, mainly for cash dividends[82](index=82&type=chunk) Cash and Commitments (in thousands) | Item | June 30, 2020 | | :-------------------------------- | :------------ | | Cash and cash equivalents | $37,116 | | Commitments for property, plant and equipment | $11,964 | | Commitments for software license fees | $6,179 | | Cash held by foreign subsidiaries | $17,761 | - Expected sources of cash include operations, cash on hand, and credit facility borrowings, deemed sufficient for the next several years[84](index=84&type=chunk) [Credit Facilities and Other Obligations](index=23&type=section&id=Credit%20Facilities%20and%20Other%20Obligations) Details the company's credit facilities, outstanding debt, and other contractual obligations - The Company's **$50,000 thousand** unsecured revolving credit facility matures on May 31, 2022, with **$5,000 thousand** outstanding at June 30, 2020, and the Company was in compliance with all covenants[85](index=85&type=chunk)[88](index=88&type=chunk) - Non-cancelable operating lease obligations were **$1,587 thousand** and finance lease obligations were **$49 thousand** (undiscounted) at June 30, 2020[89](index=89&type=chunk) - A French subsidiary has a **$185 thousand** fixed-rate loan due September 30, 2020[90](index=90&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discloses the company's exposure to market risks, including interest rate and foreign currency fluctuations [Interest Rate Risk](index=25&type=section&id=Interest%20Rate%20Risk) Assesses the company's exposure to interest rate fluctuations on its variable-rate debt - The Company is exposed to interest rate risk on its variable-rate credit facility, which bears interest at LIBOR plus 1.00% or 1.25%, though a one percent change would not materially impact financial results for the periods presented[92](index=92&type=chunk) [Foreign Currency Exchange Rate Risk](index=25&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) Evaluates the impact of foreign currency exchange rate fluctuations on international operations - International operations expose the Company to foreign currency exchange rate risk, managed through operating and financing activities and occasional forward contracts[93](index=93&type=chunk) - Fluctuations resulted in a **$312 thousand** decrease in foreign currency translation adjustment for the three months and a **$384 thousand** decrease for the six months ended June 30, 2020, recognized as unrealized losses[94](index=94&type=chunk) - Net foreign currency exchange gains were **$273 thousand** for the three months and **$189 thousand** for the six months ended June 30, 2020[95](index=95&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Reports on the effectiveness of disclosure controls and changes in internal control over financial reporting [Disclosure Controls and Procedures](index=25&type=section&id=Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and procedures - Management, including co-CEOs and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2020, ensuring timely and accurate reporting[96](index=96&type=chunk)[97](index=97&type=chunk) [Changes in Internal Control over Financial Reporting](index=27&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) States that no significant changes in internal control over financial reporting occurred - There were no significant changes in internal control over financial reporting during the period covered by the report that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[98](index=98&type=chunk) [PART II OTHER INFORMATION](index=27&type=section&id=PART%20II%20OTHER%20INFORMATION) Presents other required information, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) Discloses information regarding legal proceedings the company is involved in - The Company is periodically involved in litigation, with accruals established for probable and estimable matters, and management believes any liability exceeding insurance coverage will not materially adversely affect the Company's financial position or results of operations[100](index=100&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) Supplements risk factors, emphasizing the uncertain adverse impacts of the COVID-19 pandemic - The COVID-19 pandemic poses significant risks, including disruptions to business operations, potential further adverse impacts on plant production levels due to safety measures, reduced demand from customers, and supply chain delays for chassis and other materials[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - The financial impact is uncertain but anticipated to be materially adverse[106](index=106&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports on any unregistered sales of equity securities and the application of proceeds - There were no unregistered sales of equity securities or use of proceeds to report[107](index=107&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports on any defaults concerning senior securities - There were no defaults upon senior securities to report[108](index=108&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Provides disclosures related to mine safety, noting its inapplicability - Mine safety disclosures are not applicable to the Company[109](index=109&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) Includes any other information not covered in preceding items - There was no other information to report[110](index=110&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed as part of the Form 10-Q report - The report includes certifications from Co-Chief Executive Officers and Chief Financial Officer (Exhibits 31.1, 31.2, 31.3, 32.1, 32.2, 32.3) and Inline XBRL documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[112](index=112&type=chunk)[115](index=115&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) Confirms the official signing and submission of the Form 10-Q report - The report was duly signed on behalf of Miller Industries, Inc. by Deborah L. Whitmire, Executive Vice President, Chief Financial Officer, and Treasurer, on August 5, 2020[117](index=117&type=chunk)[119](index=119&type=chunk)

Miller Industries, Inc. (NYSE:MLR) Q1 2020 Earnings Conference Call May 7, 2020 10:00 AM ET Company Participants Brendan Dunlap - FTI Consulting Jeff Badgley - Co-Chief Executive Officer Debbie Whitmire - Executive Vice President & Chief Financial Officer Conference Call Participants Operator Good day ladies and gentlemen and welcome to the Miller Industries' First Quarter 2020 Results Conference Call. Please note, this event is being recorded. And now, at this time, I would like to turn the call over to Br ...

[FORWARD-LOOKING STATEMENTS](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines cautionary statements regarding future expectations, noting actual results may differ due to various factors - Forward-looking statements are identified by words such as "may," "will," "should," "expect," and "anticipate"[7](index=7&type=chunk) - Actual results may differ materially due to various factors, including the effects of COVID-19, industry cyclicality, economic conditions, raw material prices, and international operational uncertainties[7](index=7&type=chunk) - The company does not undertake to update these statements[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This part presents the company's financial statements, management's discussion, market risk, and controls [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section provides the company's unaudited condensed consolidated financial statements, including balance sheets, income, and cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2020 | December 31, 2019 | Change | | :----------------------------- | :------------- | :---------------- | :----- | | Cash and temporary investments | $43,094 | $26,072 | +$17,022 | | Total current assets | $312,355 | $287,452 | +$24,903 | | Total assets | $417,886 | $391,967 | +$25,919 | | Total current liabilities | $121,813 | $124,282 | -$2,469 | | Long-term obligations | $29,998 | $4,998 | +$25,000 | | Total liabilities | $156,459 | $134,040 | +$22,419 | | Total shareholders' equity | $261,427 | $257,927 | +$3,500 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section reports the company's financial performance, including net sales, costs, gross profit, and net income Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | YoY Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net Sales | $176,054 | $197,213 | -10.7% | | Costs of Operations | $157,516 | $174,616 | -9.8% | | Gross Profit | $18,538 | $22,597 | -17.9% | | Operating Expenses (SG&A) | $10,974 | $10,215 | +7.4% | | Income Before Income Taxes | $7,114 | $11,460 | -37.9% | | Net Income | $5,431 | $8,660 | -37.3% | | Basic Income Per Common Share | $0.48 | $0.76 | -36.8% | | Cash Dividends Declared Per Common Share | $0.18 | $0.18 | 0.0% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details comprehensive income, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | YoY Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net Income | $5,431 | $8,660 | -37.3% | | Foreign currency translation adjustment | $(72) | $277 | N/A | | Comprehensive Income | $5,359 | $8,937 | -40.0% | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section outlines changes in shareholders' equity, reflecting net income, dividends, and other adjustments Condensed Consolidated Statements of Shareholders' Equity Highlights (in thousands) | Metric | March 31, 2020 | December 31, 2019 | March 31, 2019 | | :------------------------------------ | :------------- | :---------------- | :------------- | | Total Shareholders' Equity | $261,427 | $257,927 | $234,602 | | Net Income (3 months) | $5,431 | N/A | $8,660 | | Foreign currency translation adjustments (3 months) | $(72) | N/A | $277 | | Dividends paid per share (3 months) | $0.18 | N/A | $0.18 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | YoY Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net cash flows from operating activities | $(1,852) | $(17,854) | +$16,002 | | Net cash flows from investing activities | $(3,516) | $(3,155) | -$361 | | Net cash flows from financing activities | $22,850 | $12,848 | +$10,002 | | Net change in cash and temporary investments | $17,022 | $(8,058) | +$25,080 | | Cash and temporary investments, end of period | $43,094 | $18,979 | +$24,115 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed financial statements [1. Basis of Presentation](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note describes the accounting principles and rules used in preparing the unaudited condensed financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with SEC rules and GAAP, with certain disclosures condensed[24](index=24&type=chunk) - Management believes they fairly present the financial position, results of operations, and cash flows[24](index=24&type=chunk) - Interim results are not necessarily indicative of full fiscal year results[24](index=24&type=chunk) [2. Recent Accounting Pronouncements](index=9&type=section&id=2.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses the impact of recently adopted and upcoming accounting standards on financial statements - ASU 2019-12 (Income Taxes), effective after December 15, 2020, is not expected to have a material impact on the financial statements[25](index=25&type=chunk) - ASU 2018-15 (Intangibles – Goodwill and Other – Internal-Use Software) was adopted in Q1 2020 and had no material impact on the financial statements[26](index=26&type=chunk) [3. Basic Income Per Share](index=9&type=section&id=3.%20BASIC%20INCOME%20PER%20SHARE) This note explains the calculation of basic income per share, based on net income and weighted average common shares - Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding, as the company has a simple capital structure with no stock options[27](index=27&type=chunk) [4. Revenue](index=10&type=section&id=4.%20REVENUE) This note details revenue recognition policies and provides a breakdown of net sales by geographic location - Substantially all revenue is generated from sales of towing equipment, recognized when performance obligations are satisfied, typically upon shipment[29](index=29&type=chunk)[30](index=30&type=chunk) Net Sales by Geographic Location (in thousands) | Net Sales | For the Three Months Ended March 31, 2020 | For the Three Months Ended March 31, 2019 | | :---------- | :---------------------------------------- | :---------------------------------------- | | North America | $143,856 | $163,893 | | Foreign | $32,198 | $33,320 | | Total | $176,054 | $197,213 | [5. Inventories](index=10&type=section&id=5.%20INVENTORIES) This note describes the valuation method for inventories and provides a breakdown of inventory categories - Inventories are stated at the lower of cost or net realizable value, determined on a first-in, first-out (FIFO) basis[34](index=34&type=chunk) Inventories, net (in thousands) | Inventory Category | March 31, 2020 | December 31, 2019 | | :----------------- | :------------- | :---------------- | | Chassis | $7,721 | $6,561 | | Raw materials | $40,014 | $39,444 | | Work in process | $17,179 | $16,520 | | Finished goods | $27,727 | $25,440 | | Total Inventories, net | $92,641 | $87,965 | [6. Long-Term Obligations](index=11&type=section&id=6.%20LONG-TERM%20OBLIGATIONS) This note outlines the company's long-term debt, including credit facilities, borrowings, and covenant compliance - The company has a **$50,000 thousand** unsecured revolving credit facility with a maturity date of May 31, 2022, and has been in compliance with its covenants[36](index=36&type=chunk) - Borrowings under the credit facility during Q1 2020 were partially for working capital needs and partially as a precautionary measure due to operational disruptions from the COVID-19 pandemic[38](index=38&type=chunk) Outstanding Borrowings (in thousands) | Obligation | March 31, 2020 | December 31, 2019 | | :-------------------------------- | :------------- | :---------------- | | Outstanding borrowings under credit facility | $29,998 | $4,998 | | French subsidiary loan | $276 | $368 | [7. Commitments and Contingencies](index=11&type=section&id=7.%20COMMITMENTS%20AND%20CONTINGENCIES) This note discloses the company's contractual commitments, lease obligations, and contingent liabilities Total Lease Cost (in thousands) | Lease Cost | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | | :---------------------- | :-------------------------- | :-------------------------- | | Total finance lease cost | $6 | $6 | | Total operating lease cost | $102 | $200 | | Short-term lease cost | $113 | $252 | | Total lease cost | $221 | $458 | - The company had commitments of approximately **$3,067 thousand** for property, plant, and equipment, and **$7,949 thousand** for software license fees related to an ERP system migration as of March 31, 2020[46](index=46&type=chunk) - The maximum amount of collateral the company could be required to repurchase under distributor default arrangements was approximately **$76,751 thousand** at March 31, 2020[47](index=47&type=chunk) [8. Income Taxes](index=14&type=section&id=8.%20INCOME%20TAXES) This note provides information on the company's income tax position, including carryforwards and effective rates - As of March 31, 2020, the company had no federal net operating loss carryforwards and no significant state operating loss carryforwards[50](index=50&type=chunk) [9. Subsequent Events](index=14&type=section&id=9.%20SUBSEQUENT%20EVENTS) This note reports significant events that occurred after the balance sheet date but before statement issuance - On May 4, 2020, the Board of Directors declared a quarterly cash dividend of **$0.18 per share**, payable on June 15, 2020[51](index=51&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=15&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's analysis of financial performance, condition, and key operational drivers [Executive Overview](index=15&type=section&id=Executive%20Overview) This overview introduces the company's business, key performance indicators, and factors influencing financial results - Miller Industries is the world's largest manufacturer of towing and recovery equipment, operating globally under various brand names[54](index=54&type=chunk) - Key indicators monitored by management include revenue, operating income, gross margin, net income, earnings per share, capital expenditures, and cash flow[54](index=54&type=chunk) - Revenues are sensitive to general economic conditions, demand for products, technological competitiveness, raw material costs (aluminum, steel, petroleum-related products), and competition[55](index=55&type=chunk) - The company emphasizes innovation, research and development, and manufacturing modernization, including the introduction of the M100, the world's largest tow truck, in late 2019[56](index=56&type=chunk) - The industry is cyclical, and the company is concerned about the continuing effects of economic factors and raw material price volatility[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Impact of COVID-19](index=16&type=section&id=Impact%20of%20COVID-19) This section details the operational and financial effects of the COVID-19 pandemic on the company's business - The COVID-19 pandemic led to limited shutdowns and safety modifications at all domestic facilities, including workforce rotation and sanitation efforts, which adversely impacted plant productivity[60](index=60&type=chunk) - In March 2020, the company drew **$25,000 thousand** on its credit facility for working capital and as a precautionary measure due to COVID-19 uncertainty[61](index=61&type=chunk) - Material curtailments of new chassis deliveries occurred due to supplier shutdowns in March 2020, with many facilities reopening at reduced capacity[62](index=62&type=chunk) - The full impact of the COVID-19 pandemic on operational and financial performance remains uncertain, depending on its duration, scope, and severity, though the company's backlog remains healthy despite some cancellations[63](index=63&type=chunk) [Critical Accounting Policies](index=16&type=section&id=Critical%20Accounting%20Policies) This section identifies accounting policies requiring significant management judgment and their financial reporting impact - Critical accounting policies, requiring significant management judgment, include those related to accounts receivable, inventory, long-lived assets, warranty reserves, revenues, and income taxes[64](index=64&type=chunk) - There have been no significant changes in critical accounting policies during the first three months of 2020[64](index=64&type=chunk) [Results of Operations – Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019](index=16&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20March%2031%2C%202020%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202019) This section analyzes financial performance, comparing key revenue and expense metrics between the two periods Key Financial Performance Indicators (in thousands, except percentages) | Metric | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | YoY Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net Sales | $176,054 | $197,213 | -10.7% | | Costs of Operations | $157,516 | $174,616 | -9.8% | | Costs of Operations (% of sales) | 89.5% | 88.5% | +1.0 pp | | Selling, general and administrative expenses | $10,974 | $10,215 | +7.4% | | SG&A (% of sales) | 6.2% | 5.2% | +1.0 pp | | Interest expense, net | $359 | $668 | -46.3% | | Net foreign currency exchange loss | $84 | $252 | -66.7% | | Effective tax rate | 23.7% | 24.4% | -0.7 pp | - The decrease in net sales was largely attributable to modified production schedules, trade show cancellations, and supply chain issues due to the COVID-19 pandemic[66](index=66&type=chunk) - Costs of operations and SG&A expenses increased as a percentage of sales, reflecting inefficiencies from reduced fixed cost absorption and workforce reorganization in response to COVID-19[68](index=68&type=chunk)[69](index=69&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to generate and manage cash, including sources and uses of funds Cash Flow Activities (in thousands) | Cash Flow | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | YoY Change | | :----------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net cash flows from operating activities | $(1,852) | $(17,854) | +$16,002 | | Net cash flows from investing activities | $(3,516) | $(3,155) | -$361 | | Net cash flows from financing activities | $22,850 | $12,848 | +$10,002 | | Cash and cash equivalents, end of period | $43,094 | N/A | N/A | - Cash used in operating activities was impacted by a rise in finished goods inventory and slower revenues due to COVID-19 related supply chain issues[73](index=73&type=chunk) - Primary cash requirements include working capital, capital expenditures, declared cash dividends, and debt payments[76](index=76&type=chunk) - Expected sources are cash flows from operations, existing cash, and additional credit facility borrowings[76](index=76&type=chunk) - As of March 31, 2020, **$20,447 thousand** of the company's cash and temporary investments were held by foreign subsidiaries[77](index=77&type=chunk) [Credit Facilities and Other Obligations](index=18&type=section&id=Credit%20Facilities%20and%20Other%20Obligations) This section details the company's credit arrangements, outstanding borrowings, and contractual obligations - The company's **$50,000 thousand** unsecured revolving credit facility had **$29,998 thousand** outstanding at March 31, 2020, an increase from **$4,998 thousand** at December 31, 2019, and the company remains in compliance with all covenants[78](index=78&type=chunk)[79](index=79&type=chunk) - The French subsidiary has an unsecured fixed-rate loan with **$276 thousand** outstanding at March 31, 2020, maturing September 30, 2020[81](index=81&type=chunk) Non-cancelable Lease Obligations (in thousands) | Obligation | March 31, 2020 | December 31, 2019 | | :------------------------------- | :------------- | :---------------- | | Non-cancelable operating lease obligations | $1,728 | $1,807 | | Non-cancelable finance lease obligations | $55 | $61 | [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=18&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section discusses the company's exposure to market risks from changes in interest rates and foreign currency exchange rates [Interest Rate Risk](index=18&type=section&id=Interest%20Rate%20Risk) This section analyzes the company's exposure to fluctuations in interest rates, particularly on variable-rate debt - The company is exposed to interest rate risk due to variable interest rates on its credit facility (LIBOR Market Index Rate plus 1.00% or 1.25% per annum)[83](index=83&type=chunk) - A one percent change in the interest rate on variable-rate debt would not have materially impacted the company's financial position, results of operations, or cash flows for the three months ended March 31, 2020[83](index=83&type=chunk) [Foreign Currency Exchange Rate Risk](index=18&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section addresses the company's exposure to foreign currency exchange rate fluctuations from international operations - The company is subject to foreign currency exchange rate risk from its international operations in Europe, which is managed through regular operating and financing activities and occasional forward foreign currency exchange contracts[84](index=84&type=chunk) Foreign Currency Impact (in thousands) | Metric | 3 Months Ended Mar 31, 2020 | 3 Months Ended Mar 31, 2019 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Foreign currency translation adjustment | $(72) | $277 | | Net foreign currency exchange loss (P&L) | $84 | $252 | [ITEM 4. CONTROLS AND PROCEDURES](index=19&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section details the company's disclosure controls and procedures and internal control over financial reporting [Disclosure Controls and Procedures](index=19&type=section&id=Disclosure%20Controls%20and%20Procedures) This section describes the evaluation of the effectiveness of the company's disclosure controls and procedures - Management, including co-Chief Executive Officers and Chief Financial Officer, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2020, and concluded they are effective[88](index=88&type=chunk) [Changes in Internal Control over Financial Reporting](index=19&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports any significant changes in internal control over financial reporting during the period - There were no significant changes in internal control over financial reporting during the period covered by the report that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[89](index=89&type=chunk) [PART II. OTHER INFORMATION](index=19&type=section&id=PART%20II%20OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, equity sales, defaults, and exhibits [ITEM 1. LEGAL PROCEEDINGS](index=19&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section describes the company's involvement in litigation and management's assessment of potential financial impact - The company is a party to litigation in the normal course of business, but management believes any ultimate liability beyond insurance and accruals will not have a material adverse effect on its financial position or results of operations[91](index=91&type=chunk) [ITEM 1A. RISK FACTORS](index=19&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section outlines significant risks, particularly the adverse effects of the COVID-19 pandemic on operations and financial condition - The COVID-19 outbreak may adversely affect revenues, results of operations, and financial condition due to stringent control measures, operational modifications impacting plant productivity, and reduced ability to meet customers from event cancellations[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - The pandemic has caused material curtailments of new chassis deliveries and could negatively impact the supply chain, potentially leading to substantial harm to revenues and operations[97](index=97&type=chunk) - The ultimate impact of COVID-19 is unknown and highly uncertain, with potential for material adverse effects on business, financial condition, and results of operations, even after the pandemic subsides, due to economic recession or reduced travel[98](index=98&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=20&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section confirms no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds[99](index=99&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=20&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section confirms no defaults upon senior securities during the reporting period - No defaults upon senior securities[100](index=100&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=20&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that mine safety disclosures are not applicable to the company's operations - Mine Safety Disclosures are not applicable[101](index=101&type=chunk) [ITEM 5. OTHER INFORMATION](index=20&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section indicates that no other information requiring disclosure under this item is present - No other information[102](index=102&type=chunk) [ITEM 6. EXHIBITS](index=21&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the report, including certifications and XBRL financial data - Exhibits include certifications from Co-Chief Executive Officers and Chief Financial Officer (31.1-31.3, 32.1-32.3) and XBRL formatted financial statements (101)[104](index=104&type=chunk)[105](index=105&type=chunk) [SIGNATURES](index=23&type=section&id=SIGNATURES) This section provides the official signatures certifying the accuracy and completeness of the report - The report was signed on behalf of Miller Industries, Inc. by Deborah L. Whitmire, Executive Vice President, Chief Financial Officer, and Treasurer, on May 6, 2020[110](index=110&type=chunk)