Miller Industries(US:MLR)2024-05-08 20:33Part I Financial Information Financial Statements Miller Industries' Q1 2024 unaudited consolidated financial statements detail strong year-over-year growth in revenue, net income, assets, and equity Condensed Consolidated Balance Sheets As of March 31, 2024, total assets increased to $696.5 million, with corresponding rises in liabilities and shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $558,813 | $510,471 | | Total Assets | $696,531 | $647,210 | | Total Current Liabilities | $274,636 | $234,714 | | Total Liabilities | $334,172 | $299,290 | | Total Shareholders' Equity | $362,359 | $347,920 | Condensed Consolidated Statements of Income Miller Industries reported Q1 2024 net sales up 23.9% to $349.9 million and net income up 84.6% to $17.0 million Q1 2024 vs Q1 2023 Income Statement (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $349,871 | $282,275 | +23.9% | | Gross Profit | $44,243 | $30,417 | +45.5% | | Income Before Income Taxes | $21,488 | $11,799 | +82.1% | | Net Income | $17,023 | $9,220 | +84.6% | | Diluted EPS | $1.47 | $0.81 | +81.5% | | Dividends Declared per Share | $0.19 | $0.18 | +5.6% | Condensed Consolidated Statements of Cash Flows Q1 2024 operating cash flow improved to a $9.0 million inflow, with investing and financing activities leading to a $3.1 million cash decrease Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $8,977 | $(6,764) | | Net cash from investing activities | $(4,663) | $(1,749) | | Net cash from financing activities | $(7,179) | $(2,059) | | Net change in cash | $(3,100) | $(10,433) | | Cash at end of period | $26,809 | $29,720 | Notes to the Condensed Consolidated Financial Statements The notes provide detailed explanations of accounting policies, financial statement items, the SHC acquisition, debt, revenue recognition, and subsequent events - On May 31, 2023, the Company acquired Southern Hydraulic Cylinder, Inc. (SHC) for approximately $17.4 million to enhance supply chain stability. The acquisition resulted in $8.4 million of goodwill. For Q1 2024, SHC contributed approximately $1.9 million to revenues394045 - The company has a $100.0 million unsecured revolving credit facility. As of March 31, 2024, outstanding borrowings were $55.0 million, down from $60.0 million at year-end 2023. The company was in compliance with all covenants525354 Net Revenues by Geographic Region (in thousands) | Region | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | North America | $318,536 | $258,167 | +23.4% | | Foreign | $31,335 | $24,108 | +30.0% | | Total | $349,871 | $282,275 | +23.9% | - Subsequent to the quarter end, on May 6, 2024, the Board declared a quarterly cash dividend of $0.19 per share. On April 2, 2024, the Board also approved a new stock repurchase program authorizing up to $25.0 million of the company's common stock7576 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management attributes strong Q1 2024 performance to improved supply chains and demand, with net sales up 23.9%, and confirms adequate liquidity despite economic risks - The company is the world's largest manufacturer of towing and recovery equipment, with brands including Century®, Vulcan®, and Chevron™8182 - Strong backlog, supply chain improvements, and pricing actions led to increased revenues and improved gross margins in Q1 20248788 Q1 2024 vs Q1 2023 Results of Operations (in thousands) | Line Item | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $349,871 | $282,275 | +23.9% | | Gross Profit | $44,243 | $30,417 | +45.5% | | SG&A Expenses | $21,543 | $17,924 | +20.2% | | Net Income | $17,023 | $9,220 | +84.6% | - The increase in net sales was primarily driven by higher production volume due to supply chain improvements and strong customer demand. Foreign sales grew by 30.0%95 - As of March 31, 2024, the company had $26.8 million in cash and $45.0 million available under its credit facility. Operating cash flow improved to a $9.0 million inflow from a $6.8 million outflow in the prior-year period103107 Quantitative and Qualitative Disclosures About Market Risk No material changes to quantitative and qualitative market risk disclosures were reported since the 2023 Annual Report on Form 10-K - There have been no material changes to the company's market risk disclosures since the last Annual Report on Form 10-K115 Controls and Procedures As of March 31, 2024, disclosure controls and procedures were effective, with no significant changes to internal controls over financial reporting during the quarter - Management, including the CEO and CFO, concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective116 - No significant changes were made to internal controls over financial reporting during the first quarter of 2024117 Part II Other Information Legal Proceedings The company faces various ordinary course legal claims, which management believes will not significantly impact financial position or results - The company is subject to a variety of claims and lawsuits arising in the ordinary course of business, but management believes these will not have a significant financial impact65119 Risk Factors No material changes to risk factors were reported since the 2023 Annual Report on Form 10-K - No material changes to risk factors were reported for the period120 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None121 Other Information The company corrected its December 31, 2023, global employee count to 1,591 and reported no Rule 10b5-1 trading plan changes by directors or officers - The company corrected its global employee count as of December 31, 2023, to approximately 1,591 from the previously reported 1,821125 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter124 Exhibits This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications under Rules 13a-14(a)/15d-14(a) and Section 1350, as well as Inline XBRL data files128 Signatures