Miller Industries(US:MLR)2024-05-08 20:26Overview of Q1 2024 Financial Performance Financial Highlights Miller Industries reported record first-quarter net sales of $349.9 million, a 23.9% increase, with net income rising 84.6% to $17.0 million and gross margin improving to 12.6% Q1 2024 Key Financial Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $349.9M | $282.3M | +23.9% | | Gross Profit | $44.2M | $30.4M | +45.5% | | Gross Margin | 12.6% | 10.8% | +180 bps | | Net Income | $17.0M | $9.2M | +84.6% | | Diluted EPS | $1.47 | $0.81 | +81.5% | - The year-over-year revenue growth was primarily attributed to increased production volume resulting from supply chain improvements and sustained strong customer demand2 - Selling, general and administrative (SG&A) expenses increased to $21.5 million from $17.9 million year-over-year, driven by employee incentive programs, investor relations activities, higher sales volume costs, and talent retention programs4 Management Commentary and Outlook Management reported record quarterly revenue driven by strong demand, maintaining full-year 2024 high single-digit growth guidance while monitoring production capacity for capital allocation - The company achieved another quarterly revenue record, driven by a strong demand environment for all its products6 - The company expects to maintain a more moderate but healthy year-over-year growth rate, consistent with its previous guidance of high single-digit growth for the full year 20247 - With a steady backlog and demand environment, the company is closely monitoring its production capacity in the U.S. and internationally to inform future capital allocation plans8 Shareholder Returns The company declared a $0.19 per share quarterly cash dividend, a 5.6% increase, marking its 54th consecutive dividend, and authorized a $25 million share repurchase program - The Board of Directors declared a quarterly cash dividend of $0.19 per share, payable on June 10, 20245 - This is the 54th consecutive quarter the company has paid a dividend, and the amount represents a 5.6% increase from the prior quarter's dividend of $0.185815 - In April, the Board of Directors authorized a $25 million share repurchase program8 Detailed Financial Statements Condensed Consolidated Statements of Income For Q1 2024, net sales grew 23.9% to $349.9 million, gross profit increased 45.5% to $44.2 million, and net income surged 84.6% to $17.0 million Q1 2024 Income Statement (in thousands, except per share data) | Line Item | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | NET SALES | $349,871 | $282,275 | 23.9% | | COST OF OPERATIONS | $305,628 | $251,858 | 21.3% | | GROSS PROFIT | $44,243 | $30,417 | 45.5% | | Selling, General and Administrative Expenses | $21,543 | $17,924 | 20.2% | | INCOME BEFORE INCOME TAXES | $21,488 | $11,799 | 82.1% | | INCOME TAX PROVISION | $4,465 | $2,579 | 73.1% | | NET INCOME | $17,023 | $9,220 | 84.6% | | DILUTED INCOME PER COMMON SHARE | $1.47 | $0.81 | 81.5% | Condensed Consolidated Balance Sheets As of March 31, 2024, total assets reached $696.5 million, driven by increased accounts receivable, with total liabilities at $333.2 million and shareholders' equity at $362.4 million Key Balance Sheet Items (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and temporary investments | $26,809 | $29,909 | | Accounts receivable, net | $338,887 | $286,138 | | Inventories, net | $184,274 | $189,807 | | Total current assets | $558,813 | $510,471 | | TOTAL ASSETS | $696,531 | $647,210 | | Accounts payable | $229,040 | $191,782 | | Total current liabilities | $274,636 | $234,714 | | Total liabilities | $333,172 | $299,290 | | Total shareholders' equity | $362,359 | $347,920 |