Miller Industries (MLR) 13 Nov 242024 Q3 Earnings call transcript

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

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

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

market are company's after were the the to the third of We discuss which XXXX here quarter results, close yesterday. released

team President, today us the Will Counsel. Secretary and Vice and President Miller, Frank the Executive With CEO; Whitmire, and are General Board; Debbie from and President Miller, Chairman Bill Madonia, of management CFO; Executive Vice

company's from conference management, note Today's management filings the followed Reform XX-K a to Private attention like risks call formal over your I'd annual to will the are statements with Please ahead, morning's begin these Securities to XXXX. filed related question-and-answer the Please provisions more forward-looking in call make the on remarks like and this to with time, and safe I'd which Will. call, this with may session. Form go Exchange in turn Litigation Commission. At other accordance of of call to statements, by in report Securities Act harbor the the fully described Will.

morning, and good everyone. you, Thank

begin, impacted I hurricanes the want Before and life the to a loss property. in extreme and of by Southeast the recent to sympathies to extend my moment I those take

our First recovery hope for for still are a thoughts and suffering foremost, speedy those those with and we affected.

particular, We are not an impact had and in our immune weather on Helen, extreme to these Hurricane operations. events

Greeneville, in As smallest result, a our for our X had production pause to facility weeks. we

thankfully by single-digit low While marginal, our quarter the millions. the impacting financial impact revenues was for

of their employees to their jobs best were the Our safe, focus secure perform our was ability. able ensuring to that and

will effect fourth impact on be results and to that up quarter equally but quarter in impact be expect marginal hurricane We are quarter shifted into the fourth still on catch as revenue third the the on we expect invoicing. the minimal an to our assessing production,

another impacts chassis of generated Turning we've from the pleased quarter increase OEM to we double-digit an year-over-year deliveries. revenue despite growth. million, even driven year-over-year, In share to delivered XX.X% the revenues strong am our $XXX.X quarter I hurricane, third that XXXX, of elevated by quarterly of of results.

Shipments gap to first year of last the low, X subsequently the XXXX. quarter fill the were but we in elevated months were in third abnormally

reflects level chassis current Third quarter XXXX of based demand. on normalized a deliveries

Gross compared profit for XXXX year $XX a prior primarily gross period. shift compared the quarter The extraordinary margin decrease was the million, the of while year-over-year. third to our of an by decreased quarter decrease due was XX.X% basis to product mix to points year-over-year in XXX X%

of chain mentioned, I in saw third slowed As due delivery significant the as disruptions. to quarter just a supply XXXX, boost gross margin chassis

consistent current chassis the for expect Now our margins. are And have our at quarter margins with operating of level. third XXXX we to annual continue expected deliveries normalized, the the gross

a solid business, which to the XX% expanding and our We total by can approximately intake. growth opportunity encouraged ramping and In accounts an believe for believe military continued forward. be demand activity for this of strong moving We is still international our there production sector. are in sales, international us continue area we order

of needs our the the Lastly, shareholder and generate regularly call globe areas work on capital over the plans facilities earlier returns. this in mentioned expansion around before Debbie, to believe I turn we business will the future the production year. the I want capacity to that analyze touch we production diligently greatest our all invest to We of at

time. at we that capacity to grow we While to we meet expanding and can current with agreements the future the have, capacity continue consider business to investing in will continue appropriate our contractual

investment our reduction in strategy quarterly in shareholders the repurchase to our focused our regular also on distribution and form program. of capital debt remain along dividend We with our of share

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

Following update her on an outlook. our some Debbie? comments I remarks, will closing and provide

the XXXX from the normalization sales good a Thanks, third Net quarter the resulting for for first year-over-year. versus XX.X% by sales months billion third were of market. Net and deliveries driven the the of XXXX everyone. months of products largely was a improved $XXX.X XX.X% year-over-year finished of $XXX.X increase $XXX.X chassis morning, million first X the increase $X quarter XXXX, X of of Will, XXXX, for million million for versus

revenue of Cost increased of in for largely operations increase for XXXX. due to third the quarter operations our million XXXX compared increased $XXX.X quarter million the was to to The our XX.X% $XXX.X levels. third of of cost

of as mix of prior product shift to year which earlier. mentioned XXX the is to Will XX.X%, period increased net basis attributable approximately sales year-over-year that the Cost a percentage operations points from largely

Gross $XX mix. difficult for year-over-year our million of XX.X% regarding the year for third the comparison of largely The million XXXX or quarter the product to profit was sales compared net sales prior driven year-over-year decrease of XX.X% was by or net $XX.X period.

mid-XXs, after expect few normalizes tumultuous market that quarters, mix. slight chassis our of line the our more we some to projected fluctuations a quarter-to-quarter appear product will subject on margins level gross As with very in based

$XX.X in XXXX third quarter the were quarter third million the compared of XXXX. of in million expenses to SG&A $XX.X

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

We X long-term a is the year the first target our percentage months above expected XXXX we that X.X%, of as is approximately of range. sales will SG&A X.X%. anticipate within of for end our this While

receivable third elevated the XXXX XX.X% This was quarter XXXX. from to interest for was balance. $X.X $XXX,XXX, income for the reduction down driven expense by increased million third of quarter our of accounts Interest related

third the of $XXX,XXX exchange quarter largely attributable Other rate fluctuations. expense third of XXXX, the an for to expense of to $XXX,XXX currency compared XXXX was for quarter

of effective tax XX% the was and for quarter higher both rate Our sequentially. slightly year-over-year

or $XX.X to income $X.XX quarter XXXX of share $X.XX net income result, a diluted million the As or per for in third quarter diluted third of of XXXX. compared share was net million $XX.X per the

$XX.X as XXXX, XX, million June and $XX.X XXXX. cash and Cash was balance the as million to XXXX, XX, equivalents $XX.X December sheet. of XX, as of million September to compared of Turning

as June as XXXX, and September XX, XX, million $XXX.X of XX, compared as receivable million to was of million of XXXX. Accounts December $XX XXXX, $XXX.X

We a encouraged dynamic generation into of of working the a call incredibly by We on increase expected year receivables and pre-pandemic cash our returns cash. last conversion that the to this are that cash said we in as in conversion the earnings half market capital quarter levels our of this percentage our and second revenue. in as continue believe will our

million XXXX. Turning back $XXX.X and were of December as June of the $XXX.X to as Inventories of sheet. XX, XXXX, September to compared XXXX, million $XXX.X as XX, balance XX, million

relatively goods will essential investing that quickly keep inventory parts as our we delivery as our customers have work-in-process levels to appropriate to remained consistent available in inventory inventory as ensure possible. to finished for readily and turn into Our we have

cash XXth dividend. company dividend payable as Accounts per at Related the million of XX, as of shareholders, to million to $X.XX $XXX.X X, our as Board of the our December September that of share has business to XXXX, quarter XXXX, December to payable close XXXX. marking XX, $XXX.X XXXX, Directors the XXXX, of capital paid the and shareholders return XX, X, $XXX.X on million, consecutive a approved quarterly June was of compared of December record of

Board million first in year, repurchase representing $XX quarters of program of the has Directors the April. addition, of million XX,XXX In during the the the company X authorized $X.X repurchased shares

to have regards continues flexibility capital cash with As we allocation. conversion improve, our more to

to However, practice. our earlier, Will business as paying capital debt long-standing focused in remain both with on down mentioned we returning shareholders our and line

is audits our Will, maintenance I facilities. back to Lastly, quarter due hand inventory holidays, reminder before seasonably to rest a brief the planned relative a provide would the fourth call quarter the in our to annual I of like revenue to and longer just year that

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

Thank to deliveries business drivers you, The Debbie. retail last distributor steady and of have solid, demand year. compared remained core remains our

entry we quarter. a the slow order However, experienced during

are Instead, early demand they we our products feedback to on insights fundamental holding political in though strong. from OEM this indicative still customers of While in our indicates suggest remain to chassis capacity activity products. order throughput a and due into and our decline uncertainty, distributors, interest intake their for off distributor our furthermore, our were deliveries conducting is of not timing retail slowdown analysis, orders

our productivity first illustrated position, enhanced levels Despite next believe the over to to we X We effectiveness X of us purchasing by will anticipate the this, quarters. this positive historical and backlog results chain, positions performance return momentum as to X months year. over our that our sustain stabilized supply in our

business remain extremely we quarter, in the our this confident challenges outlook. some and faced we While

year-over-year for as We rate achieving with and of annual we are will well. low strong the historical we achieve that believe full XXXX, our reaffirming increase double-digit growth compounded line expectation profitability in our growth year

at we cash, our into convert as capital Notably, Industries. Miller shareholders as to always we receivables continue we prioritize to continue have returning to our will

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

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

first Our Instructions] Mike from question D.A. [Operator Shlisky, Davidson. is

throughput give only gotten to First, secondly, X for on based to there I'm have on their appreciated since mirror, hadn't have you location new throughput. week your that that? are question maybe And ball are and dealers but I any you, last growth again increasing the a here. kind the keep their orders find Will, One, the open dealership indications them that. or or a dealers of perhaps there. after assistance in I've to maybe rearview additional even been help or with got mentioned you X-part election in limitations any comment whether you it's some curious or being flow guide day help them rolling then

with holding, reaching with distribution. completed. sentiment for first place industry, take has actually to Chief question deals general Vince Officer, postelection that have the Well, were waiting Revenue the to sentiment has election just our increased regards significantly. We've Tiano, you. multiple seen to been through to distributors your that Thank different And in out regards

intake reinstill Although that rate, confidence in obviously, this in, seen we which believe last order ultimately the do we will days only after week's consumer. few a election, it was the haven't

the With appropriate working regards those customers. inventory to through them to finish chassis to providing the and earlier throughput, and those, more obviously, deliver distribution in those They're got we're builds year.

their the a at into as great And builders their body body their facilities position I currently, think areas. are distribution network from integration we're well reinvesting chassis in the distributors have. and of facilities we know integration, to distribution in as network that to expanding handful outsource as whole, with least a I a local looking of

working believe on think diligently on I quarter see up catch next or well. their we'll issues. them all as And I throughput So capacity resolving they're their the X, in

I margin from gross discussion the ask appreciate Maybe guess, I about first, I moving to here. that. Great. a on on wanted to margins.

mix little a about of You that out had changing. XXXX range the that mix the XX% environment, should XXXX, or would Or XXXX a a that expect mentioned XXXX, between to got is chassis normalized you kind comps might sales the year? were in think the mid-XXs play next sales? about at how you've is But if really Talk to more realize reasonable implied system a least not in only now and would next year's year comparable on anything we be low I suggest you you next chassis the to there and that. get full

No.

the OEM from What on I just exactly is for a little chassis year what think from quarter-to-quarter. full XXXX the of anticipated right Debbie had -- this -- for quarter-to-quarter. expected, deliveries been anticipating par year we we and alluded seeing where not with we're year it lumpy, have wasn't last overall of timing to as chassis

Moving any year. they where margins see full for have forward, the into year I continuing the issues next don't been

mentioned level. SG&A an standpoint, you've from And goal X.X% being kind the Okay. of

from grow plan sounds I more a some XXXX. still growth at here, expect mean, you -- As in little you least it

and You've that Do cadence get you on get little less a some got to can additional spend than X.X% that in think you maybe good start leverage order 'XX? here. SG&A

in being compliance certainly This as that cost items. looking and form regulations But some quickly any new is world Debbie. around we're are dealing able We the the other can. to things with fashion of control at the are control adding we're we as that

issues these add SG&A of not compliance are we will much some as anticipating. hopefully, So as

continues hope out to gain with we costs dealing leverage. SG&A But really So some the that are regulations to additional our add control. of that we're

Miller at to Will I'd no It the there back further turn are time. remarks. to questions this like floor like for closing looks

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

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

We teleconference. today's conclude does thank This you you. for Thank your participation.

You your at lines may this time. disconnect