Miller Industries(US:MLR)2022-05-04 21:19Financial Performance - Net sales for the three months ended March 31, 2022, were $215,545,000, an increase of 27% compared to $169,912,000 for the same period in 2021[14] - Gross profit for the same period was $15,340,000, a decrease of 3% from $15,831,000 in 2021[14] - Net income for the three months ended March 31, 2022, was $2,065,000, down 35% from $3,178,000 in 2021[14] - Total revenue for the three months ended March 31, 2022, was $215,545 million, representing a 27% increase from $169,912 million in the same period of 2021, with North America contributing $194,351 million and foreign sales at $21,194 million[31] - For the three months ended March 31, 2022, net income was $2,065 million, a decrease of 34.9% compared to $3,178 million in the same period of 2021[29] Assets and Liabilities - Total current assets increased to $356,267,000 as of March 31, 2022, from $328,968,000 at December 31, 2021, reflecting a growth of 8%[12] - Total liabilities rose to $178,635,000 as of March 31, 2022, compared to $150,311,000 at December 31, 2021, marking an increase of 19%[12] - Cash and temporary investments decreased to $29,292,000 at the end of the period from $54,332,000 at the beginning of the period, a decline of 46%[22] - Inventory at March 31, 2022, totaled $124,348 million, an increase of 8.5% from $114,908 million at December 31, 2021, with raw materials accounting for $62,628 million[37] - The company had commitments of approximately $9,590 million for construction and acquisition of property, plant, and equipment as of March 31, 2022, up from $5,052 million at December 31, 2021[46] Cash Flow - The company reported a net cash flow from operating activities of $(28,936,000) for the three months ended March 31, 2022, compared to $2,847,000 in 2021[22] - Cash used in operating activities was $28,936 in Q1 2022, compared to cash provided of $2,847 in Q1 2021, mainly due to increased inventory purchases and receivables[74] - Cash used in investing activities was $4,083 in Q1 2022, up from $2,489 in Q1 2021, primarily for property, plant, and equipment purchases[75] - Cash provided by financing activities was $7,939 in Q1 2022, compared to cash used of $2,059 in Q1 2021, resulting from advances from the credit facility[76] Operating Expenses - Operating expenses increased to $12,386,000 for the three months ended March 31, 2022, compared to $11,051,000 in the same period of 2021, reflecting a rise of 12%[14] - Costs of operations for Q1 2022 rose by 29.9% to $200,205, with costs as a percentage of sales increasing to 92.9% from 90.7% in the prior year, primarily due to higher component prices and supply chain challenges[69] - Selling, general and administrative expenses increased to $12,386 in Q1 2022 from $11,051 in Q1 2021, but as a percentage of sales, these expenses decreased to 5.7% from 6.5%[70] Tax and Interest - The effective tax rate for Q1 2022 was 16.9%, down from 24.9% in Q1 2021, due to favorable tax adjustments in foreign jurisdictions[73] - The non-default interest rate on the credit facility was 1.45% as of March 31, 2022, with a potential impact of a 1% change in interest rates deemed immaterial[86] Foreign Currency and Other Adjustments - The company recognized a $25 unrealized gain in foreign currency translation equity adjustment for the three months ended March 31, 2022, compared to a $760 unrealized gain for the same period in the prior year[88] - For the three months ended March 31, 2022, the company reported net foreign currency exchange losses of $52, down from $271 in the prior year[89] Corporate Governance and Management - The company has established accruals for probable and reasonably estimable litigation matters, maintaining adequate insurance coverage[92] - The company's Chairman of the Board received a salary increase from $319,737 to $662,500 effective January 1, 2022, marking the first increase since 2013[97] Future Outlook - The company anticipates continued adverse impacts on production and net income due to supply chain constraints and inflationary pressures throughout 2022[64]