Miller Industries(US:MLR)2024-08-11 12:25Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $371.5 million, a 23.7% increase year-over-year from $300.3 million in Q2 2023 [4][6] - Gross profit for Q2 2024 was $51.1 million, up 27.9% compared to $39.9 million in the prior year, with a gross margin of 13.8%, improving by 50 basis points year-over-year [4][7] - Net income for Q2 2024 was $20.5 million, or $1.78 per diluted share, compared to $14.9 million, or $1.29 per diluted share in Q2 2023 [9] Business Line Data and Key Metrics Changes - The increase in revenue was driven by consistent customer demand, increased production volume, and elevated OEM chassis deliveries [4] - Cost of operations increased 23.1% to $320.4 million in Q2 2024, primarily due to higher revenue levels, while cost of operations as a percentage of net sales decreased to 86.2% [7] Market Data and Key Metrics Changes - International business accounted for approximately 10% of total sales, with strong customer demand and stable backlog [5] - The company anticipates that chassis deliveries will normalize in the second half of the year [5] Company Strategy and Development Direction - The company is focused on production capacity expansion and investing in productivity improvements, capacity expansion, and employee health and safety [11][12] - The management team is optimistic about achieving low double-digit growth for the full year of 2024, adjusting from initial high single-digit growth expectations [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining margins in the mid-upper 13% range for the remainder of 2024 [15] - There is ongoing monitoring of the OEM truck market regarding potential pre-buy activities related to upcoming emissions changes in 2027 [16][17] Other Important Information - The company declared a quarterly cash dividend of $0.19 per share, marking the 55th consecutive quarter of dividend payments [12] - The company repurchased 35,000 shares, representing $2 million of the authorized $25 million share repurchase program [12] Q&A Session Summary Question: Thoughts on margins for the rest of the year - Management believes margins will maintain and expects them to be in the mid-upper 13% range for 2024 [15] Question: Long-term outlook regarding emissions changes in 2027 - There is chatter in the trucking OEM market about pre-buy activities, but significant discussions from the customer base have not yet begun [16][17]