Miller Industries(MLR) - 2025 Q3 - Quarterly Results

Financial Performance - For Q3 2025, net sales were $178.7 million, a decrease of 43.1% compared to $314.3 million in Q3 2024[2] - Gross profit for Q3 2025 was $25.3 million, or 14.2% of net sales, compared to $42.0 million, or 13.4% of net sales in Q3 2024[3] - Selling, general and administrative expenses were $21.2 million, or 11.9% of net sales, compared to $22.3 million, or 7.1% of net sales in the prior year[4] - Net income in Q3 2025 was $3.1 million, or $0.27 per diluted share, down 80.0% from $15.4 million, or $1.33 per diluted share in Q3 2024[5] Guidance and Shareholder Returns - The company reaffirmed its revenue guidance for the 2025 fiscal year at $750 to $800 million[8] - The company executed approximately $1.2 million in share repurchases, returning approximately $3.5 million to shareholders during the quarter[7] Debt and Capital Management - The company reduced its debt balance by $10 million during the quarter, with an additional $10 million reduction in October[7] - The company is focused on disciplined capital allocation as cash conversion improves[7] Asset and Liability Changes - Total current assets decreased from $529,766 million as of December 31, 2024, to $469,466 million as of September 30, 2025, a decline of approximately 11.4%[16] - Accounts receivable decreased from $313,413 million to $232,617 million, representing a reduction of about 25.7%[16] - Total liabilities decreased from $265,985 million to $183,688 million, a decrease of approximately 30.9%[16] - Current liabilities decreased from $197,873 million to $135,776 million, reflecting a decline of about 31.4%[16] - Long-term obligations decreased from $65,000 million to $45,000 million, a reduction of approximately 30.8%[16] Shareholders' Equity and Retained Earnings - Total shareholders' equity increased from $401,030 million to $420,655 million, an increase of about 4.3%[16] - Retained earnings increased from $254,938 million to $267,675 million, reflecting a growth of approximately 5%[16] Cash and Inventory Management - Cash and temporary investments increased from $24,337 million to $38,401 million, an increase of about 57.7%[16] - Inventories decreased slightly from $186,169 million to $180,715 million, a decrease of approximately 2.4%[16] Other Comprehensive Loss - Accumulated other comprehensive loss improved from $(7,726) million to $(1,277) million, indicating a positive change of approximately 83.5%[16] Market Focus - The CEO indicated strong interest in the global military market and a return to normalized field inventory levels[7]