"This was an incredibly difficult decision, and we understand the impact it will have on our employees and their families," said William G. Miller II, CEO of the Company. "We are deeply grateful for the contributions of each individual who is leaving the Company. They have been instrumental in our success, and we wish them well in their future endeavors." Certain statements in this news release may be deemed to be forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995 ...

Core Insights - Miller Industries reported a significant decline in revenue and profits for Q2 2025, with GAAP net sales at $214.0 million, down 42.4% year-over-year, and net income falling by 58.5% to $8.5 million [1][2][5] Financial Performance - Diluted earnings per share (EPS) were $0.73, exceeding analyst estimates of $0.55, but down 59.0% from $1.78 in Q2 2024 [2][5] - Management revised its full-year revenue outlook down by 20-25%, now expecting $750 million to $800 million, compared to previous guidance of $950 million to $1.0 billion [1][13] - Gross margin improved to 16.2% from 13.8% year-over-year, attributed to a favorable sales mix despite lower gross profit dollars [2][6] Operational Challenges - The decline in revenue was primarily linked to reduced product shipments, particularly chassis, due to lower consumer confidence and elevated costs of ownership [5][10] - Retail sales through the distribution network fell 20% quarter-over-quarter, and order intake from distributors dropped 30%, reflecting excess inventory issues [5][10] - SG&A expenses rose 2.6% to $23.4 million, representing 10.9% of net sales, indicating less flexibility in managing overhead costs [6][10] Strategic Focus - Miller Industries emphasizes innovation and supply chain management as key components of its strategy, including recent investments in product development and vertical integration [4][11] - The company aims to enhance supply chain resilience through acquisitions and proactive cost management to mitigate tariff-related risks [11][12] - Regulatory challenges, such as California's Advanced Clean Trucks standards, continue to impact product eligibility and customer demand [12] Distribution Network - The health of Miller's distributor network is critical, with over 90% of distributors not offering competing lines, but excess inventory has delayed new orders [10] - Management is focused on reducing channel inventory before pursuing growth, highlighting the importance of a stable distribution base [10] Future Outlook - The company suspended its EPS guidance due to potential extraordinary costs in the second half of the year, emphasizing the need to monitor distributor inventory reduction and new product developments [13] - Long-term industry fundamentals remain positive, driven by factors like average vehicle age and miles driven, but short-term caution is warranted due to operational challenges [13]

Core Viewpoint - Miller Industries reported a significant decline in net sales and net income for the second quarter of 2025, primarily due to decreased product shipments and industry-wide demand challenges [2][5][6]. Financial Performance - Net sales for Q2 2025 were $214.0 million, a decrease of 42.4% from $371.5 million in Q2 2024 [2]. - Gross profit was $34.6 million, representing 16.2% of net sales, compared to $51.1 million or 13.8% of net sales in the prior year [3]. - Selling, general and administrative expenses increased to $23.4 million, or 10.9% of net sales, from $22.8 million, or 6.1% of net sales, in the previous year [4]. - Net income fell to $8.5 million, or $0.73 per diluted share, down 58.8% and 59.0% respectively from $20.5 million, or $1.78 per diluted share, in Q2 2024 [5]. Market Challenges - The company faced a 20% decline in retail sales activity quarter over quarter, leading to a 30% decrease in order intake from distributors [6]. - Decreased demand was attributed to lower consumer confidence and increased ownership costs, including interest rates and insurance [6]. Future Outlook - The company revised its 2025 revenue guidance to a range of $750 to $800 million and suspended earnings per share guidance due to operational challenges [7]. - Despite current market difficulties, the company remains optimistic about long-term performance drivers, such as increased miles driven and accident rates, and is taking steps to improve operational efficiency and reduce channel inventory [6][7]. Dividend Information - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the fifty-ninth consecutive quarter of dividend payments [5]. Company Overview - Miller Industries is recognized as the world's largest manufacturer of towing and recovery equipment, operating under several well-known brands [10].

Core Viewpoint - Miller Industries, Inc. is set to release its Second Quarter results for the period ending June 30, 2025, on August 6, 2025, after market close, followed by a conference call on August 7, 2025 [1] Group 1: Company Information - Miller Industries is recognized as the world's largest manufacturer of towing and recovery equipment, marketing its products under several well-known brands including Century, Vulcan, Chevron, Holmes, Challenger, Champion, Jige, Boniface, and Eagle [2]

Summary of Miller Industries (MLR) FY Conference Call - June 12, 2025 Company Overview - **Company Name**: Miller Industries - **Founded**: 1990 - **Industry**: Towing and Recovery Equipment - **Headquarters**: Oodwa, Tennessee, USA - **Global Operations**: Facilities in Tennessee, Pennsylvania, England, and France - **Employees**: Approximately 1,700 worldwide - **Product Range**: Light duty recovery units, car carriers, specialty transport vehicles, medium and heavy duty recovery units, rotators, and military recovery vehicles [3][10][12] Core Points and Arguments - **Market Leadership**: Miller Industries is the world's largest manufacturer of towing and recovery equipment, emphasizing innovation, quality, and a robust distribution network [10][11]. - **Financial Performance**: - FY 2024 revenues increased by 9% to $1.26 billion, with a gross profit margin of 13.6% [26]. - Net income for FY 2024 was $63.5 million, or $5.47 per diluted share, with a return on equity of 16.9% [26]. - Q1 2025 revenues were $225.7 million, with a gross profit of 15% and net income of $8.1 million [28]. - **Dividend and Share Repurchase**: Returned $11.6 million to shareholders through dividends and stock repurchases in FY 2024 [26]. Industry Dynamics - **Market Size**: The towing and recovery industry is described as a multibillion-dollar global market [13]. - **Key Market Segments**: Focus on commercial towing, transport fleets, and military contracts [14]. - **Industry Drivers**: Miles driven, accidents per mile, last-mile deliveries, and natural disasters are key factors influencing demand [14][15]. Challenges and Risks - **Tariff Impacts**: Ongoing tariff situations, particularly a 50% import tariff on steel, are being monitored closely, with price increases implemented to mitigate impacts [29][31]. - **Emissions Regulations**: California's CARB regulations require a zero-emission vehicle for every nine diesel vehicles sold, affecting sales in several states [38][40]. - **Inventory Management**: The company is working through excess inventory levels due to previous over-purchasing, which is expected to normalize [30][35]. Growth Opportunities - **Military Contracts**: Increased requests for quotes from global militaries present significant growth potential [21][48]. - **European Market Expansion**: The company aims to consolidate its presence in Europe, which is fragmented with many manufacturers [22]. - **Rental Market Penetration**: There is potential to increase market share in the rental industry, which is currently dominated by a few major players [21]. Capital Allocation Strategy - **Priorities**: Focus on returning capital to shareholders, investing in manufacturing facilities, and enhancing employee engagement and safety [17][24]. - **Debt Management**: The company is debt-averse, aiming to reduce its debt load to maintain flexibility [24][30]. Competitors - **Major Competitors**: Jerdan (owned by Oshkosh Corporation) and NRC (a Canadian company) are identified as the largest competitors in North America [41][42]. Additional Insights - **Distribution Network**: Miller Industries has a strong distribution network with 53 distributors and 75 locations in North America, with 100% exclusivity for its distributors [18]. - **Product Lifecycle**: The average fleet size for customers is 10 to 15 trucks, with trade cycles of 4 to 6 years influenced by warranty offerings [19]. This summary encapsulates the key points discussed during the conference call, highlighting the company's position, financial performance, industry dynamics, challenges, growth opportunities, and strategic focus.

Financial Performance - Net Sales for Q1 2025 were $225.7 million, a decrease of 35.5% compared to $349.9 million in Q1 2024, primarily due to a decline in chassis shipments [2] - Gross profit for Q1 2025 was $33.9 million, representing 15.0% of net sales, compared to $44.2 million or 12.6% of net sales in Q1 2024, with the increase in gross margin attributed to a shift in product mix [3] - Selling, general and administrative (SG&A) expenses rose to $23.3 million, or 10.3% of net sales, from $21.5 million or 6.2% of net sales in the prior year, driven by salary adjustments and increased employee benefit costs [4] - Net income for Q1 2025 was $8.1 million, or $0.69 per diluted share, down 52.6% from $17.0 million or $1.47 per diluted share in Q1 2024 [5] Strategic Initiatives - The company is focused on reducing field inventory and product lead times as the industry normalizes, positioning for future growth [6] - Approximately $2.1 million was executed in share repurchases during the quarter, alongside a quarterly cash dividend of $0.20 per share, marking the fifty-eighth consecutive quarter of dividend payments [5][6] - The company has implemented a tariff surcharge on new orders and additional price increases on accessories and parts to mitigate tariff-related uncertainties [6] Market Outlook - The company anticipates continued improvement in the second half of 2025, supported by strong activity in the global military market and a return to optimal channel inventory levels [6] - Despite ongoing tariff-related uncertainties, the company remains optimistic about the fundamentals in its end markets [6]

Financial Data and Key Metrics Changes - For the full year 2024, net sales were $1.26 billion, an increase of 9% from $1.15 billion in 2023, driven by strong demand for products [11] - Gross profit for 2024 was $170.8 million, or 13.6% of sales, compared to $151.9 million, or 13.2% of sales in 2023, indicating an improvement in gross margin [11] - Net income for 2024 was $63.5 million, or $5.47 per diluted share, up from $58.3 million, or $5.07 per diluted share in 2023, reflecting increases of 8.9% and 7.9% respectively [12] - For Q4 2024, sales were $221.9 million, a decrease of 25.1% from $296.2 million in Q4 2023, primarily due to a decline in chassis shipments [13] - Q4 gross profit was $33.5 million, or 15.1% of sales, compared to $38.6 million, or 13% of sales in Q4 2023, with margin improvement driven by product mix [14] - Q4 net income was $10.5 million, or $0.91 per diluted share, down from $16.7 million, or $1.45 per diluted share in Q4 2023 [15] Business Line Data and Key Metrics Changes - The company experienced a year-over-year improvement in gross margin due to an enhanced product mix and supply chain improvements [12] - The decline in chassis shipments in Q4 2024 was attributed to previously elevated shipments in Q4 2023 due to supply chain disruptions [13] Market Data and Key Metrics Changes - The company anticipates a return to normalized chassis deliveries in the second half of 2025, which should stabilize revenues and margins [22] - The rising costs of equipment ownership, including increased insurance premiums and interest rates, are pressuring end-market towers [25] Company Strategy and Development Direction - The company is focused on returning capital to shareholders through dividends and share repurchases, with a recent quarterly cash dividend of $0.20 per share approved [19] - An expansion of €8 million at a facility in France has been authorized to meet future demand [44] - The company plans to launch multiple new products across all categories to enhance offerings and support innovation [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook for 2026 and beyond, citing strong demand for products and growth opportunities in military recovery vehicles [47] - The company is preparing for the impacts of advanced clean truck regulations, which limit diesel-powered vehicle registrations in certain states [34] - Management expects to see a significant pickup in requests for quotes for military products globally, indicating potential future revenue growth [41] Other Important Information - The company had a cash balance of $24.3 million as of December 31, 2024, down from $40.6 million as of September 30, 2024, primarily due to a reduction in accounts payable [16] - The debt balance was $65 million at year-end, with a focus on reducing debt levels as cash conversion improves in 2025 [19] Q&A Session Summary Question: Does the 2025 outlook include financial effects of military developments? - Management indicated that the current military contract production dates begin in late 2026, with most production in 2027 and 2028 [51] Question: How do the first half and second half of 2025 compare? - Management expects Q1 and Q2 to be similar to Q4 2024, with chassis shipments lower than normal, followed by upward momentum in the second half of the year [53] Question: Can margin levels be expected to remain the same? - Management anticipates margins to be relatively equal to the previous year [55] Question: How is the company managing working capital? - The company plans to reduce inventories to historical levels, which were about 20% of revenue pre-COVID [57] Question: Are there any measures to help dealers navigate the next few quarters? - Management stated that dealers are currently healthy and working through their chassis inventory buildup, with expectations of returning to optimal levels in the next two to four months [61]