Miller Industries (MLR) 9 May 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Miller Industries First Quarter 2024 Results Conference Call. Please note, this event is being recorded.

At this time, I would like to turn the call over to Mike Gaudreau at FTI Consulting. Please go ahead, sir.

Thank you, and good morning, everyone. welcome the to Call. Industries like would you Miller to Conference I

question-and-answer market Whitmire, followed from are company's Bill and after were with the General the to and Counsel. Today's Miller, session. the With will first of We Board; discuss which Chairman XXXX Vice begin of CFO; here today management by President, and the team Will quarter the results, close yesterday. are us Miller, Executive Vice and President Frank remarks Secretary management, from formal a CEO; Debbie President Madonia, Executive call released

this related call, Act accordance fully are risks Commission. Reform report statements, of Please morning's note your filings statements harbor and annual Private forward-looking the may of company's Exchange attention in described the on the to more XXXX. in the Form provisions safe filed XX-K conference with other the management which I'd Litigation make like these Securities and in with call to Securities to

time, At Will. I'd over ahead, to the Please go call Will. this to turn like

good and you, morning, everyone. Thank

a record year-over-year start we profitability. improvements had maintaining quarter strong revenues our Following another in to XXXX, our of record XXXX, generating and

to efforts entire these thank I'd for their team continued foremost, and would not First and like them, Without possible. dedication. our results be

reap of many in business when and our were to strategy to people doubling investments our a invest peers of time continue the We our cutting slowdown, in benefits on during a down macroeconomic our at costs. our

a increase to investments period. generated revenues for of year we all of XX% record result environment compared these million, $XXX.X our a continued and prior demand strong As the of products, nearly

orders significantly increase as first quarter also OEMs shipped chassis from delayed We the saw during XXXX. shipments

line of normalize in in OEM in growth XXXX. year high chassis the XXXX top single-digit shipments half expect we we to compared record still While our anticipate year, second the to

lines, of XX.X% we first increase higher product due prior years. our for and the to The of points. quarter, improved our improvements million, last coupled margin manufactured year-over-year all quarter improved an the XXX our levels and to is was diversifying year certain revenue of margins of while includes processes. XX.X% profit compared gross basis made base $XX.X the with largely supplier This Gross increase across in-sourcing supply chain several over have to

Our offset improvement progresses gross year our mix mix. and normalizes, in the quarters. margin was we margins our product this expansion some quarter slightly by anticipate our as gross future of product

turn to our capital quarter, our step company's to that I our end X.X% our the strategy, before by of this last improve share plan as since Lastly, XXXX, the and our we strength more our Board dividend the success. over the earnings made shareholder took felt believe and allocation that decisions reflects Debbie, XXXX, end, call. we've now We in to increased financial call shareholders and $XX performance given confidence additional want I share of million Board on Board's our markets. Last returns sheet that To strong early value to the repurchase April our the some in shareholders. for approved should in balance in touch plan said our create a we

will like over review the I'd Debbie, financial detail. more call to results Now turn who first to in the quarter

our on market year. of provide I'll a remarks, outlook some the priorities remainder for her Debbie? the and Following closing comments

increase and all quarter sales year-over-year good a the in operations revenue Will of quarter the for compared products were the in XXXX. $XXX.X Net million first for of the quarter million our mentioned shipments increased for The cost and our in is higher increase driven to our largely demand for largely first $XXX.X XX.X% a of XX.X% XXXX function morning, our of million everyone. quarter $XXX.X significant Will, Thanks, by XXXX earlier. Cost to XXXX, compared levels. $XXX.X chassis first increase, of across continued to million geographies the operations of strong first

cost from XX.X%. of approximately the As XXX operations net period of to points year basis sales, prior decreased a percentage

net was was sales the $XX.X Sequentially, or the declined across levels profit first of XX.X% or XX period. improved our $XX.X margin levels year our points. improvement XXXX gross product lines. prior Gross million margin by higher in basis year-over-year versus XX.X% of of sales gross of for million net and revenue quarter for all The margin driven

Historically, than contained our first, mentioned. a higher margin quarter fourth our as Will

a margin. headwind consolidated to Our our was product this gross mix quarter

we the through normalizes mix with consistent year, results. quarterly margin product levels balance the gross of our expect As recent to be

were expenses the our compared related first XXXX primarily quarter programs incentive million to employees, quarter relation for for of in million to training increased due XXXX SG&A and $XX.X $XX.X activity all of retention the and volume. to costs first higher investor sales

prior year period. As was lower points a sales, basis percentage of the X.X%, SG&A than XX

as continue to percentage of consistent Moving SG&A a expect forward, to remain we sales.

quarter and levels. Other foreign currency income an of shifts. the other of Interest rate expense million XXXX, higher debt fluctuate for XXXX, for flow up XXXX quarter for to quarter driven compared $X.X million, customer revenue in the of financing of for income was $XXX,XXX from $XX,XXX plan up with increase exchange by first and was the which attributable the $X first down quarter first first costs, to

or tax the $X.X the due quarter Our income first for quarter primarily diluted tax first adjustments per of in XXXX decreased or of $XX $X.XX foreign was to for the to slightly quarter rate $X.XX to per compared income compared to the growth. year, XXXX. diluted Net share million share of related effective million previous net

XX, sheet. as equivalents on $XXX.X million million $XXX.X was million Accounts to March XXXX as compared and March and million as balance XXXX, December was cash as $XX.X March of March million $XXX.X December million Turning $XX.X XX, as XX, as $XXX.X to XXXX compared receivable to March million $XX.X XXXX XXXX Cash of XX, compared and to XX, and were of XXXX. XX, of XX, $XXX.X the $XXX.X XX, March December of million of XX, XXXX. XXXX as of of as million XXXX. Inventories

reduction the forward, going priority also by inventory in top supporting year. a encouraged are inventory our levels while our and reducing this operation our is We

Accounts million of The XX, on balance to $XXX as of XX, million XXXX million million payable as outstanding XXXX. was and $XXX.X of December $XXX XX, compared $XXX.X XXXX XXXX. March XX, as March was our balance and at facility XXXX, $XX credit XXXX, revolving current March revolving on credit The million million. XX, facility $XX at million $XX million March $XX XX, our in is December

record to cash that XXXX, share on per dividend. Directors the of has quarterly of payable shareholders $X.XX of business X, on the close XXth company the approved of dividend consecutive Board our marking June Lastly, a XX, June XXXX paid quarter

to some closing back Will Now I'll turn now remarks. the for call

Thank you, Debbie.

XXXX. first top for and ahead, in healthy line us growth backlog high gives we our quarter Looking last our quarter the single-digit confidence in performance meeting set targets

While we start. do a growth top off rate normalized, expect an makes line extremely more as strong product are moderate to we

As manufacturing demonstrating for I continued continued our strong all our all demand the capacity that quarter-to-quarter, before, and backlog our means our growth future and demand. our are demand of allocation our also monitoring we consistently year, strong closely of across products we significant geographies. the improves order high capital assess revenue throughout The substantial fans. as book cash conversion of remains continued strong remains said growth, And despite

domestically internationally. is ours, certainly a of capacity key Production and both focus

entire thank I our shareholders Industries. As their customers management of always, of Miller continued all employees, would the and and team like for suppliers, support to

open any this questions. At line time, the we'd like for to

of the Mike from Instructions] line first Shlisky question Our comes [Operator D.A. Davidson. with

Can products? in through you the supply possibly your chassis? Could comment how X update the X maybe are on vocational supply of the on various things you X truck chassis chassis smaller truck us Class well as or for as doing

Yes.

For record levels. at quarter, chassis first the shipments were

So time, And that delays on OEMs all most various catching are have we point receiving OEMs. X across from issues it of seems product with at lines no through XXXX. up in all this chassis X chassis for the

very have outside and revenue strong even Outstanding. chassis your supply of the a components standpoint from issues do vehicles? with chain in strong quarter part given the other of the And any truck you and growth of your backlog, then

our we've things broaden minus with here you that base off No. At and paying 'XX and And throughout and supply 'XX efforts the efforts chain our overall, are all in-sourcing generously. that time, on process and manufacturing COVID base, it the minor this post everything products there seems deal supply chain done to strong. of that and a shortages extremely daily for basis seems our

me. maybe one Great. one for And last

a your there, square the got need wondering towards your you've help mentioned current happening capacity have footage adjacencies had for of end this got projects just term, a help the to out square you're comments bit little temporary I you've more build footage your of you facilities to -- any And things was or at kind your about add Will, within long of products. kind to of major whether thinking basis You capacity current if current on that plants? within year? your have whether to some to

Yes.

carrier to our increase levels making products facilities are for our carrier adjustments in our We shifting processes, manufacturing production distribution. between

We heavy-duty facility are and also lines. Ooltewah product working diligently our throughput and on our through efficiencies our

maximize we closely to needs diligently today as any capital look certainly of U.S. expansions as monitoring And our past square in in future or we I all the we're the So XXXX. stated, that footage we for working potential have are, allocations the facilities.

it place heavy how you so the to in does works. be your some you able heavy location? location? its outside it to and it classes through do Are then X or just X of Can a of Will, different there, own up follow Ooltewah the elsewhere? in duty Or To in build have duties stuff Pennsylvania

our Pennsylvania it layout the output carrier our strong plan to some to and processes products in the its flexibility dedicated dedicated our Greenville of the demand with and diligently facility carrier car size on employees time, for time and production equipment We at out. work to at there. being. here on with our But in production it focus on in strictly that this Certainly, keep and facility move carrier have we based has for do is Ooltewah maximize to product,

no time. I'd Mr. questions further over turn to back closing are for like the Miller this to at There comments. floor

conference like the we forward look with to for joining and quarter all call our second on Thank us you. speaking today, on you I'd thank to you call. again

questions ask Investor how our information on and website, investors.relations@millerind.com. Thank participate the you'd If on visit e-mail, again. Relations like please millerind.com/investors you call, or to

This teleconference. concludes today's

lines may a your for Thank you wonderful day. have participation, at You and time. disconnect your this