Miller Industries(US:MLR)2025-11-05 21:36Financial 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]