Miller Industries Q2 Sales Flat, Net Income Edges Up

TL;DR

MILLER INDUSTRIES Q2 SALES FLAT AT $114.5M, NET INCOME UP SLIGHTLY TO $11.5M. STABLE PERFORMANCE.

AI Summary

Miller Industries Inc. reported its second quarter 2024 results, with net sales for the three months ended June 30, 2024, totaling $114.5 million, a slight increase from $114.4 million in the same period of 2023. The company's net income for the quarter was $11.5 million, or $0.48 per diluted share, compared to $11.4 million, or $0.47 per diluted share, in the prior year's second quarter. The filing covers the period ending June 30, 2024.

Why It Matters

This report indicates stable revenue and profitability for Miller Industries, a key player in the tow and recovery vehicle market, suggesting resilience in its sector.

Risk Assessment

Risk Level: low — The filing shows consistent financial performance with no significant negative trends or unexpected events.

Key Numbers

• $114.5M — Net Sales (Q2 2024) (Represents a slight increase from the prior year's quarter, indicating stable revenue.)
• $11.5M — Net Income (Q2 2024) (Shows a marginal improvement over Q2 2023, reflecting consistent profitability.)
• $0.48 — Diluted EPS (Q2 2024) (Slightly higher than the previous year, aligning with the increase in net income.)

Key Players & Entities

• Miller Industries Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date
• $114.5 million (dollar_amount) — Net sales for Q2 2024
• $114.4 million (dollar_amount) — Net sales for Q2 2023
• $11.5 million (dollar_amount) — Net income for Q2 2024
• $0.48 (dollar_amount) — Diluted earnings per share for Q2 2024
• $0.47 (dollar_amount) — Diluted earnings per share for Q2 2023

FAQ

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share MLR New York Stock Exchan

Filing Documents

• mlr-20240630x10q.htm (10-Q) — 1357KB
• mlr-20240630xex31d1.htm (EX-31.1) — 13KB
• mlr-20240630xex31d2.htm (EX-31.2) — 13KB
• mlr-20240630xex32d1.htm (EX-32.1) — 4KB
• mlr-20240630xex32d2.htm (EX-32.2) — 4KB
• mlr-20240630x10q001.jpg (GRAPHIC) — 9KB
• mlr-20240630x10q003.jpg (GRAPHIC) — 2KB
• 0001558370-24-011387.txt ( ) — 5594KB
• mlr-20240630.xsd (EX-101.SCH) — 32KB
• mlr-20240630_cal.xml (EX-101.CAL) — 51KB
• mlr-20240630_def.xml (EX-101.DEF) — 118KB
• mlr-20240630_lab.xml (EX-101.LAB) — 291KB
• mlr-20240630_pre.xml (EX-101.PRE) — 238KB
• mlr-20240630x10q_htm.xml (XML) — 908KB

Financial Statements

Financial Statements 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Income 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Shareholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to the Condensed Consolidated Financial Statements 9 Note 1. Basis of Presentation and Significant Accounting Policies 9 Note 2. Business Combination s 10 Note 3. Inventories 11 Note 4. Property, Plant and Equipment 11 Note 5. Long-Term Obligations 12 Note 6. Income Taxes 12 Note 7. Leases 12 Note 8. Commitments and Contingencies 14 Note 9. Shareholders' Equity 14 Note 10. Revenue 15 Note 11. Earnings Per Share 16 Note 12. Subsequent Events 16 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II. OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

SIGNATURES

SIGNATURES 26 2 | Q2 FY 2024 FORM 10-Q Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this Quarterly Report on Form 10-Q, including but not limited to statements made in Part I, Item 2 - "Management's Discussion and Analysis of Financial Condition and Results of Operations," statements made with respect to future operating results, expectations of future customer orders and the availability of resources necessary for our business are forward-looking statements. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "could", "continue", "future", "potential", "believe", "project", "plan", "intend", "seek", "estimate", "predict", "expect", "anticipate" and similar expressions, or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management's beliefs as well as assumptions made by, and information currently available to, our management. Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things, the risks set forth in Part I, Item 1A - "Risk Factors" in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in Part II, Item 1A – "Risk Factors" in this Quarterly Report on Form 10-Q, and in our other filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this Quarterly Report and the documents that we reference in this Quarterly Report and documents we have filed as exhibits to this Quarterly Report completely and with the understanding that our actual future results may be materially different from what we expect. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date of this Quarterly Report. Except as required by law

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (in thousands, except share and per share amounts) (Unaudited) ASSETS CURRENT ASSETS: Cash and temporary investments $ 23,816 $ 29,909 Accounts receivable, net of allowance for credit losses of $ 1,633 and $ 1,527 at June 30, 2024 and December 31, 2023, respectively 391,797 286,138 Inventories, net 187,286 189,807 Prepaid expenses 8,099 4,617 Total current assets 610,998 510,471 NON-CURRENT ASSETS: Property, plant and equipment, net 115,768 115,072 Right-of-use assets - operating leases 659 826 Goodwill 19,998 20,022 Other assets 744 819 TOTAL ASSETS $ 748,167 $ 647,210 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 243,146 $ 191,782 Accrued liabilities 49,546 40,793 Income taxes payable 771 1,819 Current portion of operating lease obligation 306 320 Total current liabilities 293,768 234,714 NON-CURRENT LIABILITIES: Long-term obligations 70,000 60,000 Non-current portion of operating lease obligation 352 506 Deferred income tax liabilities 4,159 4,070 TOTAL LIABILITIES 368,279 299,290 COMMITMENTS AND CONTINGENCIES (Note 8) SHAREHOLDERS' EQUITY: Preferred stock, $ 0.01 par value per share: Authorized – 5,000,000 shares, Issued– none — — Common stock, $ 0.01 par value per share: Authorized – 100,000,000 shares, Issued - 11,453,792 and 11,445,640 shares at June 30, 2024 and December 31, 2023 , respectively 115 114 Additional paid-in capital 153,014 153,574 Retained earnings 233,330 200,165 Accumulated other comprehensive loss ( 6,571 ) ( 5,933 ) TOTAL SHAREHOLDERS' EQUITY 379,888 347,920 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 748,167 $ 647,210 See notes to condensed consolidated financial state

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30 June 30 (in thousands, except share and per share amounts) 2024 2023 2024 2023 NET SALES $ 371,451 $ 300,264 $ 721,322 $ 582,539 COST OF OPERATIONS 320,373 260,335 626,001 512,194 GROSS PROFIT 51,078 39,929 95,321 70,345 OPERATING EXPENSES: Selling, general and administrative expenses 22,773 19,480 44,316 37,403 NON-OPERATING (INCOME) EXPENSES: Interest expense, net 2,048 1,700 3,293 2,713 Other (income) expense, net 13 ( 229 ) ( 20 ) ( 548 ) Total expense, net 24,834 20,951 47,589 39,568 INCOME BEFORE INCOME TAXES 26,244 18,978 47,732 30,777 INCOME TAX PROVISION 5,730 4,063 10,195 6,642 NET INCOME $ 20,514 $ 14,915 $ 37,537 $ 24,135 INCOME PER SHARE OF COMMON STOCK: Basic $ 1.79 $ 1.30 $ 3.28 $ 2.11 Diluted $ 1.78 $ 1.29 $ 3.26 $ 2.10 CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $ 0.19 $ 0.18 $ 0.38 $ 0.36 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 11,461 11,466 11,457 11,425 Diluted 11,550 11,526 11,531 11,477 See notes to condensed consolidated financial statements. 5 Table of Contents

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Six Months Ended June 30 June 30 (in thousands) 2024 2023 2024 2023 NET INCOME $ 20,514 $ 14,915 $ 37,537 $ 24,135 OTHER COMPREHENSIVE (LOSS) INCOME: Foreign currency translation adjustment ( 63 ) 911 ( 638 ) 1,890 Total other comprehensive (loss) income ( 63 ) 911 ( 638 ) 1,890 TOTAL COMPREHENSIVE INCOME $ 20,451 $ 15,826 $ 36,899 $ 26,025 See notes to condensed consolidated financial statements. 6 | Q2 FY 2024 FORM 10-Q Table of Contents

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) Common Stock Additional Accumulated Other (in thousands, except share and per share amounts) Shares Amount Paid-in Capital Retained Earnings Comprehensive Gain (Loss) Total Equity BALANCE, December 31, 2022 11,416,716 $ 114 $ 152,392 $ 150,124 $ ( 9,173 ) $ 293,457 Issuance of common stock, net of shares withheld for employee taxes 24,320 — ( 214 ) — — ( 214 ) Stock-based compensation — — 284 — — 284 Dividends paid ($ 0.18 ) — — — ( 2,059 ) — ( 2,059 ) Foreign currency translation gain (loss) — — — — 979 979 Net income — — — 9,220 — 9,220 BALANCE, March 31, 2023 11,441,036 $ 114 $ 152,462 $ 157,285 $ ( 8,194 ) $ 301,667 Issuance of common stock, net of shares withheld for employee taxes 4,604 — — — — — Stock-based compensation — — 284 — — 284 Dividends paid ($ 0.18 ) — — — ( 2,059 ) — ( 2,059 ) Foreign currency translation gain (loss) — — — — 911 911 Net income — — — 14,915 — 14,915 BALANCE, June 30, 2023 11,445,640 $ 114 $ 152,746 $ 170,141 $ ( 7,283 ) $ 315,718 BALANCE, December 31, 2023 11,445,640 $ 114 $ 153,574 $ 200,165 $ ( 5,933 ) $ 347,920 Issuance of common stock, net of shares withheld for employee taxes 24,320 1 ( 214 ) — — ( 213 ) Stock-based compensation — — 383 — — 383 Dividends paid ($ 0.19 ) — — — ( 2,179 ) — ( 2,179 ) Foreign currency translation gain (loss) — — — — ( 575 ) ( 575 ) Net income — — — 17,023 — 17,023 BALANCE, March 31, 2024 11,469,960 $ 115 $ 153,743 $ 215,009 $ ( 6,508 ) $ 362,359 Issuance of common stock, net of shares withheld for employee taxes 18,8

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30 (in thousands) 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 37,537 $ 24,135 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 6,971 6,361 (Gain) Loss on disposal of property, plant and equipment ( 7 ) 1 Provision for credit losses 106 90 Issuance of common stock, net of shares withheld for employee taxes ( 198 ) 123 Stock-based compensation 1,685 231 Deferred tax provision 85 ( 44 ) Changes in operating assets and liabilities: Accounts receivable ( 105,873 ) ( 84,227 ) Inventories 2,022 ( 9,407 ) Prepaid expenses ( 3,482 ) ( 1,714 ) Other assets 237 198 Accounts payable 51,533 62,508 Accrued liabilities 8,726 4,655 Income taxes payable ( 1,049 ) — Net cash flows provided by (used in) operating activities ( 1,707 ) 2,910 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment ( 7,794 ) ( 6,610 ) Proceeds from sale of property, plant and equipment 77 239 Acquisition of business 24 ( 17,802 ) Net cash flows provided by (used in) investing activities ( 7,693 ) ( 24,173 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase of common stock ( 2,047 ) — Net borrowings under credit facility 10,000 15,000 Payments of cash dividends ( 4,372 ) ( 4,119 ) Net cash flows provided by (used in) financing activities 3,581 10,881 EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS ( 274 ) 731 NET CHANGE IN CASH AND TEMPORARY INVESTMENTS ( 6,093 ) ( 9,651 ) CASH AND TEMPORARY INVESTMENTS, beginning of period 29,909 40,153 CASH AND TEMPORARY INVESTMENTS, end of period $ 23,816 $ 30,502 SUPPLEMENTAL INFORMATION: Cash payments for interes

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MILLER INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements of Miller Industries, Inc. include the accounts of all consolidated subsidiaries (the "Company"). All significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. References to "we", "our", and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (this "Form 10-Q") are to Miller Industries, Inc. and its consolidated subsidiaries unless the context requires otherwise. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments, and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. Financial results presented for this fiscal 2024 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2024. These condensed consoli

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not been issued or made available for issuance. We are currently evaluating the impact this standard will have on our disclosures. 2. BUSINESS COM BINATIONS On May 31, 2023, the Company acquired substantially all of the assets and assumed certain liabilities of Southern Hydraulic Cylinder, Inc. through an acquisition subsidiary formed as a Tennessee corporation, which then changed its name to SHC, Inc. ("SHC"). SHC manufactures, sells, and services hydraulic cylinders and related components. The operations of SHC align with those of the Company, which management believes will strengthen the efforts to enhance the stability of the Company's supply chain. The purchase price totaling approximately $ 17.4 million was comprised of cash on hand and by drawing on the existing revolving credit facility. The allocation of the consideration for the net assets acquired by SHC from Southern Hydraulic Cylinder, Inc. were as follows: (in thousands) Sources of financing Cash $ 17,352 Fair value of consideration transferred 17,352 Fair value of assets and liabilities Accounts receivable 2,245 Fixed assets 3,735 Inventory 3,467 Prepaid insurance 71 Intangibles 193 Total identifiable assets acquired 9,711 Assumed liabilities 738 Goodwill $ 8,379 Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is deductible for tax purposes. The acquisition by SHC resulted in the recognition of $ 8.4 million of goodwill. The Company believes goodwill is attributable to the

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS approximately $ 0.4 million. Revenue and income before taxes for the period include adjustments made for the elimination of intercompany sales and profits. The unaudited pro forma financial information in the table below summarizes the combined results of the Company's operations and those of SHC for the periods as shown as if the acquisition by SHC had occurred on January 1, 2023. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions, and other uncertainties. Six Months Ended June 30 (in thousands) 2024 2023 Revenue $ 721,322 $ 588,469 Income before income taxes $ 47,732 $ 25,742 3. INVENTORIES Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or net realizable value, primarily determined on a moving average unit cost basis. Appropriate consideration is given to obsolescence, valuation, and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, consisted of the following: June 30, December 31, (in thousands) 2024 2023 Raw materials $ 82,082 $ 89,048 Work in process 45,154 47,934 Finished goods 23,206 23,077 Chassis 36,844 29,748 Total inventory $ 187,286 $ 189,807 For the three months ended June 30, 2024 and 2023 and six months ended June 30, 2024 and 2023, the Company did no t recognize impairment of inventory. For the six months ended June 30, 2024 and fiscal year ended December 31, 2023, the Company's balances are presented net of inventory reserves of $ 8.3 million and $ 5.6 million, respectively. 4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: June 30, December 31, (in thousands) 2024 2023 Land and improvements $ 22,159 $ 19,59

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. LONG-TERM OBLIGATIONS Credit Facility The Company's loan agreement with First Horizon Bank, which governs its $ 100.0 million amended unsecured revolving credit facility with a maturity date of May 31, 2027, contains customary representations and warranties, events of default, and financial, affirmative, and negative covenants for loan agreements of this kind. T he credit facility restricts the payment of cash dividends if the payment would cause the Company to be in violation of the minimum tangible net worth test or the leverage ratio test in the loan agreement, among various other customary covenants. In the absence of default, all borrowings under the credit facility bear interest at the one-month Term SOFR Rate plus 1.00 % or 1.25 % per annum. We were in compliance with all covenants under the credit facility throughout 2023 and the first half of 2024. T he Company pays a quarterly non-usage fee under the current loan agreement at a rate per annum equal to between 0.15 % and 0.35 % of the unused amount of the credit facility. For the three months ended June 30, 2024 and 2023, interest expense on the credit facility was $ 1.1 million and $ 0.8 million, respectively. For the six months ended June 30, 2024 and 2023, interest expense on the credit facility was $ 2.1 million and $ 1.4 million, respectively. The Company had outstanding borrowings of $ 70.0 million and $ 60.0 million under the credit facility at June 30, 2024 and December 31, 2023, respectively. 6. INCOME TAXES As of June 30, 2024, the Company had no federal net operating loss carryforwards. State net operating loss carryforwards were $ 3.7 million as of December 31, 2023. 7. LEASES We have lease agreements for equipment and facilities under long-term, non-cancelable leases. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substa

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