Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity Registrant Name | MILLER INDUSTRIES, INC. | |
Entity File Number | 001-14124 | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1566286 | |
Entity Address, Address Line One | 8503 Hilltop Drive | |
Entity Address, City or Town | Ooltewah | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37363 | |
City Area Code | 423 | |
Local Phone Number | 238-4171 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MLR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 11,469,960 | |
Entity Central Index Key | 0000924822 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and temporary investments | $ 26,809 | $ 29,909 |
Accounts receivable, net of allowance for credit losses of $1,578 and $1,527 at March 31, 2024 and December 31, 2023, respectively | 338,887 | 286,138 |
Inventories, net | 184,274 | 189,807 |
Prepaid expenses | 8,843 | 4,617 |
Total current assets | 558,813 | 510,471 |
Noncurrent assets: | ||
Property, plant and equipment, net | 116,172 | 115,072 |
Right-of-use assets - operating leases | 738 | 826 |
Goodwill | 20,022 | 20,022 |
Other assets | 786 | 819 |
Total assets | 696,531 | 647,210 |
Current liabilities: | ||
Accounts payable | 229,040 | 191,782 |
Accrued liabilities | 43,512 | 40,793 |
Income taxes payable | 1,773 | 1,819 |
Current portion of operating lease obligation | 311 | 320 |
Total current liabilities | 274,636 | 234,714 |
Noncurrent liabilities: | ||
Long-term obligations | 55,000 | 60,000 |
Noncurrent portion of operating lease obligation | 426 | 506 |
Deferred income tax liabilities | 4,110 | 4,070 |
Total liabilities | 334,172 | 299,290 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Common shares, $0.01 par value per share: Authorized - 100,000,000 shares, Issued and outstanding 11,469,960 and 11,445,640 outstanding at March 31, 2024 and December 31, 2023, respectively | 115 | 114 |
Additional paid-in capital | 153,743 | 153,574 |
Retained earnings | 215,009 | 200,165 |
Accumulated other comprehensive loss | (6,508) | (5,933) |
Total shareholders' equity | 362,359 | 347,920 |
Total liabilities and shareholders' equity | $ 696,531 | $ 647,210 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts (in dollars) | $ 1,578 | $ 1,527 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock Shares, Issued | 11,469,960 | 11,445,640 |
Common stock, shares outstanding | 11,469,960 | 11,445,640 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Net sales | $ 349,871 | $ 282,275 |
Cost of operations | 305,628 | 251,858 |
Gross profit | 44,243 | 30,417 |
Operating expenses: | ||
Selling, general and administrative expenses | 21,543 | 17,924 |
Non-operating (income) expenses: | ||
Interest expense, net | 1,245 | 1,012 |
Other (income) expense, net | (33) | (318) |
Total expense, net | 22,755 | 18,618 |
Income before income taxes | 21,488 | 11,799 |
Income tax provision | 4,465 | 2,579 |
Net income | $ 17,023 | $ 9,220 |
Basic income per common share (in dollars per share) | $ 1.49 | $ 0.81 |
Diluted income per common share (in dollars per share) | 1.47 | 0.81 |
Cash dividends declared per common share (in dollars per share) | $ 0.19 | $ 0.18 |
Weighted average shares outstanding: | ||
Basic (in shares) | 11,452,054 | 11,424,552 |
Diluted (in shares) | 11,556,005 | 11,430,987 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 17,023 | $ 9,220 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (575) | 979 |
Total other comprehensive (loss) income | (575) | 979 |
Total comprehensive income | $ 16,448 | $ 10,199 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Gain (Loss) | Total |
Balances at Dec. 31, 2022 | $ 114 | $ 152,392 | $ 150,124 | $ (9,173) | $ 293,457 |
Balance (shares) at Dec. 31, 2022 | 11,416,716 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares withheld for employee taxes | (214) | (214) | |||
Issuance of common stock, net of shares withheld for employee taxes (shares) | 24,320 | ||||
Stock-based compensation | 284 | 284 | |||
Dividends paid | (2,059) | (2,059) | |||
Foreign currency translation gain (loss) | 979 | 979 | |||
Net income | 9,220 | 9,220 | |||
Balances at Mar. 31, 2023 | $ 114 | 152,462 | 157,285 | (8,194) | 301,667 |
Balance (shares) at Mar. 31, 2023 | 11,441,036 | ||||
Balances at Dec. 31, 2023 | $ 114 | 153,574 | 200,165 | (5,933) | 347,920 |
Balance (shares) at Dec. 31, 2023 | 11,445,640 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of shares withheld for employee taxes | $ 1 | (214) | (213) | ||
Issuance of common stock, net of shares withheld for employee taxes (shares) | 24,320 | ||||
Stock-based compensation | 383 | 383 | |||
Dividends paid | (2,179) | (2,179) | |||
Foreign currency translation gain (loss) | (575) | (575) | |||
Net income | 17,023 | 17,023 | |||
Balances at Mar. 31, 2024 | $ 115 | $ 153,743 | $ 215,009 | $ (6,508) | $ 362,359 |
Balance (shares) at Mar. 31, 2024 | 11,469,960 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.19 | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 17,023 | $ 9,220 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 3,506 | 3,148 |
(Gain) Loss on disposal of property, plant and equipment | (7) | |
Provision for credit losses | 52 | 45 |
Issuance of common stock, net of shares withheld for employee taxes | (214) | 61 |
Stock-based compensation | 383 | 223 |
Deferred tax provision | 37 | (66) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (52,972) | (55,235) |
Inventories | 5,003 | (10,320) |
Prepaid expenses | (4,230) | (2,193) |
Other assets | 116 | 88 |
Accounts payable | 37,588 | 44,003 |
Accrued liabilities | 2,738 | 1,895 |
Income taxes payable | (46) | 2,367 |
Net cash flows provided by (used in) operating activities | 8,977 | (6,764) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (4,672) | (1,749) |
Proceeds from sale of property, plant and equipment | 9 | |
Net cash flows provided by (used in) investing activities | (4,663) | (1,749) |
Cash flows from financing activities: | ||
Payments on credit facility | (5,000) | |
Payments of cash dividends | (2,179) | (2,059) |
Finance lease obligation payments | 0 | 0 |
Net cash flows provided by (used in) financing activities | (7,179) | (2,059) |
Effect of exchange rate changes on cash and temporary investments | (235) | 139 |
Net change in cash and temporary investments | (3,100) | (10,433) |
Cash and temporary investments, beginning of period | 29,909 | 40,153 |
Cash and temporary investments, end of period | 26,809 | 29,720 |
Supplemental information: | ||
Cash payments for interest | 1,003 | 1,493 |
Cash payments for income taxes, net of refunds | $ 277 | $ 495 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 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 March 31, 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 consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The condensed consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st Significant Accounting Policies A description of the Company’s significant accounting policies is included in the notes to the audited consolidated financial statements within its Annual Report on Form 10-K There have been no material changes in the Company’s significant accounting policies during the three months ended March 31, 2024. Reclassifications Certain prior period amounts have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results. Specifically, for the first quarter of 2023, we reclassified $61.0 thousand and $223.0 thousand from the provision for common stock to non-employee directors and stock-based compensation on nonvested restricted stock units to stock-based compensation, respectively, and changed the vesting of executive restricted stock units line item to issuance of common stock, net of shares withheld for employee taxes on the Condensed Consolidated Statements of Shareholders’ Equity. Recently Adopted Accounting Standards There were no new material accounting standards adopted in the three months ended March 31, 2024. Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require an entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU also requires entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under this ASU. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update improve transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 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 its 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 preliminary allocation of the consideration for the net assets acquired from the acquisition of SHC were as follows: (in thousands) Sources of financing Cash $ 17,376 Fair value of consideration transferred 17,376 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 $ 8,403 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 of SHC resulted in the recognition of $8.4 million of goodwill. The Company believes goodwill is attributable to the investment for its ability to stabilize supply chain through vertical integration and introducing automation and improving production efficiency, as well as the workforce of the acquired business. For fixed assets, the real property fair value of $3.0 million was comprised of land and buildings of $2.8 million and cranes of $0.2 million. The fair value was determined by a third-party appraisal performed using a sales comparison approach and income approach. The net book value of $0.7 million was determined to approximate fair market value for the remaining fixed assets. Identifiable intangible assets consisted of a restrictive covenant agreement of $25.0 thousand and order backlog of $168.0 thousand. The fair value of intangible assets was determined by a third-party valuation. The restrictive covenant agreement and order backlog were valued using the income approach, specifically the with-or-without method and multi-period excess earnings method, respectively. The fair value of the assets acquired includes trade receivables of $2.2 million that are not purchased financial assets with credit deterioration. The Company does not anticipate any markdowns of trade receivables or corresponding credit losses. The results of operations of SHC are included in the accompanying condensed consolidated statements of income since the acquisition date. Transaction costs associated with the acquisition were not significant. The allocations of the fair value of the acquired business were based on preliminary valuations of the estimated net fair value of the assets acquired. The fair value estimates are subject to adjustment during the measurement period (up to one year from the acquisition date). The fair values of the net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. During the measurement period, we will adjust preliminary valuations assigned to assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date, if any, that, if known, would have resulted in revised values for these items as of that date. Pro Forma Consolidated Financial Information (Unaudited) The results of operations for SHC, and the estimated fair values of the assets acquired and liabilities assumed, have been included in the Company’s condensed consolidated financial statements since the date of acquisition. For the period ended March 31, 2024, SHC contributed approximately $1.9 million to the Company’s revenues and increased pretax income by approximately $0.1 million. Earnings 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 of 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. Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 349,871 $ 285,244 Income before income taxes $ 21,488 $ 12,973 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
INVENTORY | 3. INVENTORIES Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or net realizable value, 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: March 31, December 31, (in thousands) 2024 2023 Raw materials $ 86,624 $ 89,048 Work in process 44,587 47,934 Finished goods 23,948 23,077 Chassis 29,115 29,748 Total inventory $ 184,274 $ 189,807 For the three months ended March 31, 2024 and 2023, the Company did not recognize impairment of inventory. For the three months ended March 31, 2024 and fiscal year ended December 31, 2023, the Company’s balances are presented net of inventory reserves of $6.9 million and $5.6 million, respectively. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: March 31, December 31, (in thousands) 2024 2023 Land and improvements $ 22,102 $ 19,596 Buildings and improvements 84,702 86,346 Machinery and equipment 87,413 86,250 Furniture and fixtures 13,651 13,560 Software costs 14,408 11,806 Total property, plant and equipment, gross 222,276 217,558 Less accumulated depreciation (106,104) (102,486) Total property, plant and equipment, net $ 116,172 $ 115,072 Depreciation expense related to property and equipment was $3.5 million and $3.1 million for the periods ending March 31, 2024 and 2023, respectively. |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM OBLIGATIONS | |
LONG-TERM OBLIGATIONS | 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. The 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 absence of default, all borrowings under the amended 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 as of March 31, 2024. The Company pays a 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, which fee is paid quarterly. Interest expense on the credit facility was $0.9 million and $0.7 million for the periods ended March 31, 2024 and 2023, respectively. The Company had outstanding borrowings of $55.0 million and $60.0 million under the credit facility at March 31, 2024 and December 31, 2023, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | 6. INCOME TAXES As of March 31, 2024 and 2023, the Company had no federal net operating loss carryforwards. State net operating loss carryforwards were $3.7 million and $1.1 million at March 31, 2024 and 2023, respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | 7. LEASES We have lease agreements for equipment and facilities under long-term non-cancelable leases. Operating leases are included in operating lease right-of-use assets, current operating lease liabilities and long-term operating lease liabilities in our condensed consolidated balance sheet. Operating lease right-of-use assets and corresponding operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, plus payments made prior to lease commencement and any initial direct costs . Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We also have elected to apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of 12 months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related right-of-use asset or lease obligation for such contracts. Our leases have remaining lease terms that expire at various dates through 2029. Certain of our lease terms may include options to extend or terminate the lease, and the Company includes those leases when it is reasonably certain we will exercise that option. The following table summarizes the components of lease cost: Three Months Ended March 31, (in thousands) 2024 2023 Lease Cost Finance lease cost: Amortization of right-of-use assets $ — $ 9 Interest on lease obligation — 1 Total finance lease cost — 10 Total long-term operating lease cost 95 88 Total short-term operating lease cost 193 86 Total lease cost $ 288 $ 184 The following table summarizes supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2024 2023 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 95 $ 88 Financing cash flows from finance leases — — Right-of-use assets obtained in exchange for new operating lease obligations — — The following table presents other lease information related to the Company’s leases: March 31, December 31, 2024 2023 Weighted average remaining lease term (years) Operating leases 2.5 2.7 Finance leases — — Weighted average discount rate Operating leases 3.5 % 3.5 % Finance leases — % — % Future lease payments under non-cancellable leases as of March 31, 2024 were as follows: (in thousands) Operating Lease Obligations Remaining fiscal 2024 $ 272 2025 312 2026 141 2027 30 2028 25 Thereafter 11 Total lease payments 791 Less imputed interest (54) Lease obligation at March 31, 2024 $ 737 Related Party Leases The Company’s subsidiary in the United Kingdom leased facilities used for manufacturing and office space from a related party with related lease costs during the three months ended March 31, 2024 and 2023 of $52.2 thousand and $50.0 thousand, respectively. The Company’s French subsidiary leased a fleet of vehicles from a related party with related lease costs during the three months ended March 31, 2024 and 2023 of $54.0 thousand and $57.0 thousand, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Commitments At March 31, 2024 and December 31, 2023, the Company had commitments of approximately $5.8 million and $8.6 million, respectively, for construction and acquisition of property, plant and equipment. The Company migrated its enterprise resource planning (ERP) system to a multi-tenant cloud environment in 2021 and is continuing to implement additional modules such as enterprise performance management, human capital management, data analytics and the use of closed-loop artificial intelligence. At both March 31, 2024 and December 31, 2023, the Company had commitments related to the continuing implementation project of approximately $1.4 million in software license fees payable in installments through 2025. Contingencies The Company has entered into arrangements with third-party lenders where it has agreed to repurchase products that are repossessed from the independent distributor customer in the event of default. These arrangements are typically subject to a maximum repurchase amount. For the three months ended March 31, 2024 and year ended December 31, 2023, the maximum amount of collateral the Company could be required to purchase was $148.5 million and $128.7 million, respectively. The Company’s financial exposure under these arrangements is limited to the difference between the amount paid to third-party lenders for repurchases of inventory and the amount received upon subsequent resale of the repossessed product. The Company had no repurchases of inventory during the three months ended March 31, 2024 and year ended December 31, 2023 and concluded the liability associated with potential repurchase obligations was neither probable, nor material. Litigation We are subject to a variety of claims and lawsuits that arise from time to time in the ordinary course of business. Although management believes that any pending claims and lawsuits will not have a significant impact on the Company’s consolidated financial position or results of operations, the adjudication of such matters is subject to inherent uncertainties and management’s assessment may change depending on future events. |
STOCK INCENTIVE PLAN
STOCK INCENTIVE PLAN | 3 Months Ended |
Mar. 31, 2024 | |
STOCK INCENTIVE PLAN | |
STOCK INCENTIVE PLAN | 9. STOCK INCENTIVE PLAN Effective August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (the “2016 Plan”). Pursuant to the 2016 Plan, the Board of Directors may grant up to 800,000 shares under share-based awards to officers, directors, and employees. The 2016 Plan provides for the issuance of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, performance shares, performance units and other stock-based awards or any combination thereof. The 2016 Plan was approved by the shareholders of the Company at its Annual Meeting on May 26, 2017. The 2016 Plan will terminate on August 1, 2026. Restricted Stock Units Restricted stock units, once granted, are subject only to service conditions. Executive Officer awards vest ratably over three to five years (depending on award granted) and non-employee director awards cliff-vest after one year . The following table summarizes all transactions related to restricted stock units under the 2016 Plan: Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2023 146,832 $ 33.98 Granted 108,490 45.07 Vested (32,000) 29.95 Forfeited — — Nonvested at March 31, 2024 223,322 $ 36.33 (1) Vested shares include 7,680 shares vested and withheld for employee taxes. The following table provides additional data related to restricted share unit activity: (in thousands, except weighted average period in years) 2024 Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax $ 7,248 Weighted average period in years over which restricted share and share unit cost is expected to be recognized (in years) 2.1 Total fair value of shares vested during the year $ 958 Stock-based compensation expense is included as a component of selling, general and administrative expenses in the condensed consolidated statement of income. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE | |
REVENUE | 10. REVENUE All of our operating revenue is generated from contracts with customers. Our primary source of revenue is generated from sales of towing and recovery equipment. Because our product lines have substantially similar characteristics, the Company has identified one operating segment regularly reviewed to assess performance and allocate resources. Alternatively, the Company uses a geographic approach to track revenues by geographic regions. Net revenues by geographic region are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Change Geographic regions: North America $ 318,536 $ 258,167 23.4% Foreign 31,335 24,108 30.0% Total net revenue $ 349,871 $ 282,275 23.9% Concentrations of Credit Risk Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and temporary investments and trade accounts receivable. At March 31, 2024 and December 31, 2023, the Company had cash deposited net of outstanding checks of $26.8 million and $29.9 million, respectively held in multiple high-credit quality financial institutions. We attempt to limit our credit risk by performing ongoing credit evaluations of our customers and maintaining adequate allowances for potential credit losses. No single customer accounted for more than 10% of total revenues for the period ended March 31, 2024 and one customer accounted for 11.0% of total revenues for the period ended March 31, 2023. No single customer accounted for more than 10% of total accounts receivable at March 31, 2024 and December 31, 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE The following table reconciles the number of common shares used to compute basic and diluted earnings per common share: Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Basic earnings (loss) per common share: Net income (loss) - basic $ 17,023 $ 9,220 Weighted shares outstanding 11,452,054 11,424,552 Basic earnings (loss) per common share $ 1.49 $ 0.81 Diluted earnings (loss) per common share: Net income (loss) - basic $ 17,023 $ 9,220 Weighted shares outstanding - basic 11,452,054 11,424,552 Effect of dilutive securities 103,951 6,435 Weighted shares outstanding - diluted 11,556,005 11,430,987 Diluted earnings (loss) per common share $ 1.47 $ 0.81 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS Dividends On May 6, 2024, the Board of Directors of the Company declared a quarterly cash dividend of $0.19 per share. The dividend is payable June 10, 2024, to shareholders of record as of June 3, 2024. Stock Repurchase Program On April 2, 2024, the Company's Board of Directors approved a stock repurchase program authorizing the Company to purchase up to $25.0 million of the Company’s common stock with no expiration date (the ”Repurchase Program”). Repurchases under the Repurchase Program may be made on the open market, in privately negotiated transactions, block purchases or otherwise as permitted by the federal securities laws and other legal and contractual requirements and are expected to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The number of shares to be repurchased and the timing of any repurchases will depend on a number of factors, including share price, economic and market conditions, and corporate requirements, among others. The Company may choose to suspend or discontinue the Repurchase Program at any time. The cost of the shares repurchased will be funded from our available cash and temporary investments and borrowings under our credit facility. The Company has not repurchased common stock under the Repurchase Program as of April 30, 2024. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | 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 March 31, 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 consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The condensed consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st |
Significant Accounting Policies | Significant Accounting Policies A description of the Company’s significant accounting policies is included in the notes to the audited consolidated financial statements within its Annual Report on Form 10-K There have been no material changes in the Company’s significant accounting policies during the three months ended March 31, 2024. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified for consistency with current period presentation. These reclassifications had no effect on the reported results. Specifically, for the first quarter of 2023, we reclassified $61.0 thousand and $223.0 thousand from the provision for common stock to non-employee directors and stock-based compensation on nonvested restricted stock units to stock-based compensation, respectively, and changed the vesting of executive restricted stock units line item to issuance of common stock, net of shares withheld for employee taxes on the Condensed Consolidated Statements of Shareholders’ Equity. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Recently Issued Accounting Standards In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this Update require an entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU also requires entities with a single reportable segment to provide all segment disclosures under ASC 280, including the new disclosures under this ASU. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this Update improve transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS COMBINATIONS | |
Schedule of allocation of the consideration for net assets acquired | (in thousands) Sources of financing Cash $ 17,376 Fair value of consideration transferred 17,376 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 $ 8,403 |
Schedule of pro forma summary of the Company | Three Months Ended March 31, (in thousands) 2024 2023 Revenue $ 349,871 $ 285,244 Income before income taxes $ 21,488 $ 12,973 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INVENTORIES | |
Schedule of inventories, net of reserves | March 31, December 31, (in thousands) 2024 2023 Raw materials $ 86,624 $ 89,048 Work in process 44,587 47,934 Finished goods 23,948 23,077 Chassis 29,115 29,748 Total inventory $ 184,274 $ 189,807 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | March 31, December 31, (in thousands) 2024 2023 Land and improvements $ 22,102 $ 19,596 Buildings and improvements 84,702 86,346 Machinery and equipment 87,413 86,250 Furniture and fixtures 13,651 13,560 Software costs 14,408 11,806 Total property, plant and equipment, gross 222,276 217,558 Less accumulated depreciation (106,104) (102,486) Total property, plant and equipment, net $ 116,172 $ 115,072 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Summary of components of our lease cost | Three Months Ended March 31, (in thousands) 2024 2023 Lease Cost Finance lease cost: Amortization of right-of-use assets $ — $ 9 Interest on lease obligation — 1 Total finance lease cost — 10 Total long-term operating lease cost 95 88 Total short-term operating lease cost 193 86 Total lease cost $ 288 $ 184 The following table summarizes supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2024 2023 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 95 $ 88 Financing cash flows from finance leases — — Right-of-use assets obtained in exchange for new operating lease obligations — — |
Schedule of weighted average lease term and weighted average discount rate of leases | March 31, December 31, 2024 2023 Weighted average remaining lease term (years) Operating leases 2.5 2.7 Finance leases — — Weighted average discount rate Operating leases 3.5 % 3.5 % Finance leases — % — % |
Summary of maturities of operating lease liabilities | (in thousands) Operating Lease Obligations Remaining fiscal 2024 $ 272 2025 312 2026 141 2027 30 2028 25 Thereafter 11 Total lease payments 791 Less imputed interest (54) Lease obligation at March 31, 2024 $ 737 |
STOCK INCENTIVE PLAN (Tables)
STOCK INCENTIVE PLAN (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK INCENTIVE PLAN | |
Schedule of transactions related to restricted stock units under 2016 plan | Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2023 146,832 $ 33.98 Granted 108,490 45.07 Vested (32,000) 29.95 Forfeited — — Nonvested at March 31, 2024 223,322 $ 36.33 (1) Vested shares include 7,680 shares vested and withheld for employee taxes. |
Schedule of additional data related to restricted share unit activity | (in thousands, except weighted average period in years) 2024 Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax $ 7,248 Weighted average period in years over which restricted share and share unit cost is expected to be recognized (in years) 2.1 Total fair value of shares vested during the year $ 958 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
REVENUE | |
Schedule of disaggregation of revenue by the geographic region for customers | Three Months Ended March 31, (in thousands) 2024 2023 Change Geographic regions: North America $ 318,536 $ 258,167 23.4% Foreign 31,335 24,108 30.0% Total net revenue $ 349,871 $ 282,275 23.9% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Three Months Ended March 31, (in thousands, except per share amounts) 2024 2023 Basic earnings (loss) per common share: Net income (loss) - basic $ 17,023 $ 9,220 Weighted shares outstanding 11,452,054 11,424,552 Basic earnings (loss) per common share $ 1.49 $ 0.81 Diluted earnings (loss) per common share: Net income (loss) - basic $ 17,023 $ 9,220 Weighted shares outstanding - basic 11,452,054 11,424,552 Effect of dilutive securities 103,951 6,435 Weighted shares outstanding - diluted 11,556,005 11,430,987 Diluted earnings (loss) per common share $ 1.47 $ 0.81 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - Reclassification adjustment | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Reclassification [Line Items] | |
Stock-based compensation on nonvested common stock to non-employee directors | $ 61,000 |
Nonvested restricted stock units to stock-based compensation | $ 223,000 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) | 3 Months Ended | ||
May 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 20,022,000 | $ 20,022,000 | |
Southern Hydraulic Cylinder, Inc. | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 17,376,000 | ||
Accounts receivable | 2,245,000 | ||
Goodwill | 8,403,000 | ||
Property fair value | 3,000,000 | ||
Intangibles | 193,000 | ||
Acquired business contributed revenues | 1,900,000 | ||
Acquired business contributed earnings | $ 100,000 | ||
Southern Hydraulic Cylinder, Inc. | Land and Building | |||
Business Acquisition [Line Items] | |||
Property fair value | 2,800,000 | ||
Southern Hydraulic Cylinder, Inc. | Transportation Equipment | |||
Business Acquisition [Line Items] | |||
Property fair value | 200,000 | ||
Southern Hydraulic Cylinder, Inc. | Property plant and equipment, other than land and buildings and transportation equipment | |||
Business Acquisition [Line Items] | |||
Property fair value | 700,000 | ||
Southern Hydraulic Cylinder, Inc. | Noncompete Agreements | |||
Business Acquisition [Line Items] | |||
Intangibles | 25,000 | ||
Southern Hydraulic Cylinder, Inc. | Order or Production Backlog | |||
Business Acquisition [Line Items] | |||
Intangibles | $ 168,000 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of allocations for net assets acquired (Details) - USD ($) $ in Thousands | May 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value of assets and liabilities | |||
Goodwill | $ 20,022 | $ 20,022 | |
Southern Hydraulic Cylinder, Inc. | |||
Sources of financing | |||
Cash | $ 17,376 | ||
Fair value of consideration transferred | 17,376 | ||
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 | $ 8,403 |
BUSINESS COMBINATIONS - Pro for
BUSINESS COMBINATIONS - Pro forma summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
BUSINESS COMBINATIONS | ||
Revenue | $ 349,871 | $ 285,244 |
Income before income taxes | $ 21,488 | $ 12,973 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
INVENTORIES | ||
Raw materials | $ 86,624 | $ 89,048 |
Work in process | 44,587 | 47,934 |
Finished goods | 23,948 | 23,077 |
Chassis | 29,115 | 29,748 |
Total inventory | 184,274 | 189,807 |
Net of inventory reserves | $ 6,900 | $ 5,600 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | $ 222,276 | $ 217,558 | |
Less accumulated depreciation | (106,104) | (102,486) | |
Total property, plant and equipment, net | 116,172 | 115,072 | |
Depreciation and amortization | 3,506 | $ 3,148 | |
Depreciation expense | 3,500 | $ 3,100 | |
Land and improvements | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 22,102 | 19,596 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 84,702 | 86,346 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 87,413 | 86,250 | |
Furniture and fixtures | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | 13,651 | 13,560 | |
Software costs | |||
Property, Plant and Equipment | |||
Total property, plant and equipment, gross | $ 14,408 | $ 11,806 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Repaid credit facility | $ 5,000 | ||
First Tennessee Bank National Association | Credit facility | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facility | 100,000 | ||
Interest expense on credit facility | 900 | $ 700 | |
Line of credit outstanding borrowings | $ 55,000 | $ 60,000 | |
First Tennessee Bank National Association | Credit facility | Minimum | Secured overnight financing rate (SOFR) | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate in addition to reference rate | 1% | ||
Non-usage fee for current loan agreement in annual amount percentage | 0.15% | ||
First Tennessee Bank National Association | Credit facility | Maximum | Secured overnight financing rate (SOFR) | |||
Line of Credit Facility [Line Items] | |||
Variable interest rate in addition to reference rate | 1.25% | ||
Non-usage fee for current loan agreement in annual amount percentage | 0.35% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
INCOME TAXES | ||
Federal net operating loss carryforward | $ 0 | $ 0 |
State net operating loss carryforward | $ 3,700 | $ 1,100 |
LEASES - Lease cost (Details)
LEASES - Lease cost (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease Cost | ||
Amortization of right-of-use assets | $ 9,000 | |
Interest on lease obligation | 1,000 | |
Total finance lease cost | 10,000 | |
Total long-term operating lease cost | $ 95,000 | 88,000 |
Total short-term operating lease cost | 193,000 | 86,000 |
Total lease cost | 288,000 | 184,000 |
Cash paid for amounts included in the measurement of lease obligation: | ||
Operating cash flows from operating leases | 95,000 | 88,000 |
Financing cash flows from finance leases | 0 | 0 |
Right-of-use assets obtained in exchange for new operating lease obligations | 0 | 0 |
Boniface Engineering, Ltd. | ||
Lease Cost | ||
Total lease cost | 52,200 | 50,000 |
Jige International S.A | ||
Lease Cost | ||
Total lease cost | $ 54,000 | $ 57,000 |
LEASES - Schedule of Weighted-a
LEASES - Schedule of Weighted-average lease term and weighted-average discount rate (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases | ||
Weighted average remaining lease term for operating leases | 2 years 6 months | 2 years 8 months 12 days |
Weighted average remaining lease term for finance leases | 0 years | 0 years |
Weighted average discount rate for operating leases | 3.50% | 3.50% |
Weighted average discount rate for finance leases | 0% | 0% |
LEASES - Maturity of Undiscount
LEASES - Maturity of Undiscounted Cash flows of operating lease obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Lease Obligation | |
Remaining fiscal 2024 | $ 272 |
2025 | 312 |
2026 | 141 |
2027 | 30 |
2028 | 25 |
Thereafter | 11 |
Total lease payments | 791 |
Less imputed interest | (54) |
Lease obligation at March 31, 2024 | $ 737 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Repurchase collateral amount | $ 148.5 | $ 128.7 |
Capital Addition Purchase Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | 5.8 | 8.6 |
Software License Fee Arrangement | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | $ 1.4 | $ 1.4 |
STOCK INCENTIVE PLAN - Restrict
STOCK INCENTIVE PLAN - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Restricted Stock Unit Transactions - Shares | |
Nonvested, beginning balance (in shares) | 146,832 |
Granted (in shares) | 108,490 |
Vested (in shares) | (32,000) |
Nonvested, ending balance (in shares) | 223,322 |
Restricted Stock Unit Transactions - Weighted average grant date fair value | |
Nonvested, beginning balance (in dollar per share) | $ / shares | $ 33.98 |
Granted (in dollar per share) | $ / shares | 45.07 |
Vested (in dollar per share) | $ / shares | 29.95 |
Nonvested, ending balance (in dollar per share) | $ / shares | $ 36.33 |
Vested shares include shares vested | 7,680 |
Restricted share unit activity activity - Additional data | |
Total compensation cost, net of estimated forfeitures, related to nonvested restricted share unit awards not yet recognized, pre tax | $ | $ 7,248 |
Weighted average period in years over which restricted share and share unit cost is expected to be recognized (in years) | 2 years 1 month 6 days |
Total fair value of shares vested during the year | $ | $ 958 |
Director | |
Restricted Stock Unit Transactions - Shares | |
Vesting period of options | 1 year |
Minimum | Executive Officer | |
Restricted Stock Unit Transactions - Shares | |
Vesting period of options | 3 years |
Maximum | Executive Officer | |
Restricted Stock Unit Transactions - Shares | |
Vesting period of options | 5 years |
Equity Incentive Plan 2016 | |
Restricted Stock Unit Transactions - Shares | |
Number of shares of common stock are available for issuance | 800,000 |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue by Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 349,871 | $ 282,275 |
Total net revenue, Change (in percent) | 23.90% | |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 318,536 | 258,167 |
Total net revenue, Change (in percent) | 23.40% | |
Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 31,335 | $ 24,108 |
Total net revenue, Change (in percent) | 30% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Dec. 31, 2023 USD ($) customer | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Concentration Risk [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Cash and temporary investments | $ | $ 26,809 | $ 29,909 | $ 29,720 | $ 40,153 |
Net sales | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Number of customer | customer | 1 | |||
Net sales | Customer Concentration Risk | Customer one | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 11% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings (loss) per common share: | ||
Net Income (Loss) | $ 17,023 | $ 9,220 |
Weighted shares outstanding - basic (in shares) | 11,452,054 | 11,424,552 |
Basic earnings (loss) per common share (in dollars per share) | $ 1.49 | $ 0.81 |
Diluted earnings (loss) per common share: | ||
Effect of dilutive securities (in shares) | 103,951 | 6,435 |
Weighted shares outstanding - diluted (in shares) | 11,556,005 | 11,430,987 |
Diluted earnings (loss) per common share (in dollars per share) | $ 1.47 | $ 0.81 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | May 06, 2024 | Apr. 02, 2024 |
Subsequent Event [Line Items] | ||
Dividends payable, declared date | May 06, 2024 | |
Dividends payable, amount per share | $ 0.19 | |
Dividends payable, payment date | Jun. 10, 2024 | |
Dividends payable, record date | Jun. 03, 2024 | |
Stock repurchase program authorized amount | $ 25 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 17,023 | $ 9,220 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Modified Flag | false |
Rule 10b5-1 Arrangement Modified Flag | false |