Miller Industries Inc (MLR, Financial) released its 8-K filing on November 12, 2024, announcing its financial results for the third quarter ended September 30, 2024. The company, a leading manufacturer of vehicle towing and recovery equipment, reported a significant increase in net sales, driven by improved OEM chassis deliveries.
Performance Overview
For the third quarter of 2024, Miller Industries Inc (MLR, Financial) reported net sales of $314.3 million, a 14.5% increase from $274.6 million in the same period last year. This growth was primarily attributed to the normalization of the chassis market, although it was slightly offset by delays in finished goods delivery due to Hurricane Helene. Despite the revenue growth, the company's net income decreased by 11.7% to $15.4 million, or $1.33 per diluted share, aligning with analyst estimates.
Financial Achievements and Challenges
The company's gross profit for the quarter was $42.0 million, representing 13.4% of net sales, down from 15.6% in the previous year. This decline in gross margin was due to increased chassis shipments. Selling, general, and administrative expenses rose to $22.3 million, reflecting higher executive compensation and employee incentives aimed at improving retention.
“We continue to see strong year-over-year revenue increases due to demand for our products across all regions,” stated William G. Miller, II, CEO of Miller Industries Inc. “Our chassis shipments have normalized, and our production volumes were boosted by operational efficiencies.”
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $314.3 million | $274.6 million | 14.5% |
| Gross Profit | $42.0 million | $42.9 million | -2.0% |
| Net Income | $15.4 million | $17.5 million | -11.7% |
| Diluted EPS | $1.33 | $1.52 | -12.3% |
Balance Sheet and Cash Flow
Miller Industries Inc (MLR, Financial) reported total assets of $755.3 million as of September 30, 2024, up from $647.2 million at the end of 2023. The increase in assets was driven by higher accounts receivable and cash balances. The company's liabilities also rose, with current liabilities reaching $290.8 million, primarily due to increased accounts payable.
Analysis and Outlook
Despite the challenges posed by Hurricane Helene and increased operational expenses, Miller Industries Inc (MLR, Financial) demonstrated robust revenue growth, underscoring strong demand for its products. The company's strategic focus on operational efficiencies and supply chain stability positions it well for continued growth. However, the decline in net income highlights the need for careful cost management to sustain profitability.
The company's commitment to shareholder returns is evident in its declaration of a quarterly cash dividend of $0.19 per share, marking the fifty-sixth consecutive quarter of dividend payments. Additionally, the ongoing share repurchase program reflects confidence in the company's long-term prospects.
Explore the complete 8-K earnings release (here) from Miller Industries Inc for further details.
