MLR - Earnings call transcript Q2 2024 | Miller Industries, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Miller Industries Second 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 at FTI Consulting. Please go ahead, sir.

Michael Gaudreau

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

market from Executive are company's Bill President after CEO; and were the the to Miller, CFO; the President and Debbie President, With second of We Secretary Board; discuss and and which Chairman XXXX of here Will today management General the team quarter Vice the results, Counsel. close Whitmire, Madonia, yesterday. are Vice us Miller, Frank released Executive

from make remarks the Please the formal followed in with by morning's of session. begin will provisions Private call with question-and-answer management, note, Act Reform conference XXXX. a Today's of accordance Litigation harbor safe call, forward-looking this Securities in management may statements

these annual are the with I'd described in filed statements, report the fully Commission. like and call related which Securities attention to more other company's your Form to on XX-K the Exchange filings and to risks

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

William Miller

good morning, Thank everyone. you, and

pleased We production volume strong predominantly deliveries demand increased customers, to year-over-year quarter from due elevated to are OEM was quarter. The results. report in and chassis growth very record consistent with another the yet

we $XXX.X XX.X% million, revenues a year-over-year. generated increasing As result, of

initiatives increase for margin Gross quarter, margins quarter $XX.X profit XXX of manufacturing sequentially. points XX due and prior and basis XX.X% was efficiencies. Gross basis the expanded XX.X% benefits improved while million, second to of an compared gross productivity from the year our points to year-over-year

to levels, future expectations. customer continue to levels meet to We allowing us our production decrease historical maintain to backlog

year. will of normalize anticipate during deliveries the the While we half the chassis second

strong to of are XX% of see. encouraged customer for demand international our by total our approximately continue In sales, which we accounts we levels the business,

backlog remains is robust, while Our order intake stable. our

Europe internationally We and upside in and increase continue production when to subside. geopolitical tensions anticipate begin if to additional

will and fund translates assisting that we enter which focused we and growth enhance into we the our of revenue generate half product our distribution the of second ensure year, retail sheet. cash, the delivering strength on the are As continued to balance

call the plans to I quarter. the Lastly, on before Debbie, capacity to expansion turn touch want I over we mentioned last production

analyze at needs facilities and investment through quarterly invest to continue all our maximize We in of share around production returns shareholder dividends capital the to diligently the repurchase continued to our our work and program. business, globe future

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

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

Deborah Whitmire

XX.X% morning, in quarter quarter good and everyone. and Will, second $XXX.X the $XXX.X were million of Thanks, XXXX, for year-over-year XXXX a versus the driven sales deliveries. increase by second million for increases production Net both

XX.X% increase The Cost to decreased prior is the approximately largely XX million second the of in the compared $XXX.X XX.X%. operations period XXXX for Cost to revenue percentage higher points net of operations our to quarter year basis levels. of second increased as a million due our of for quarter from cost to $XXX.X of operations XXXX. sales

prior and and increases across same the quarter year to year-over-year million $XX.X XXXX sales mix. or XX.X% the net to sales $XX.X largely of a driven driven or sales of extent, million largely was period. deliveries. both of by second volume points, profit margin by production increases basis XXX the volume gross was for lesser Gross compared for improved net Sequentially, XX.X% The improvement

subject are a As mix. reminder, fluctuations to based on margins our quarter-to-quarter some gross

our result where we like OEM to this increased quarter as a chassis cost in were one direct an saw of increase a we efforts. control gross margin glad in see However, deliveries,

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

sales lower was consistently SG&A of falls to range year expected SG&A a of within X.X%, percentage than X.X%. XX prior points as a our figure percentage basis the period. of As sales, X% net This

of fund quarter million, related working our million second up levels to the increase the capital. from to primarily quarter XXXX in for for debt of our an expense $X.X was XXXX, second $X Interest

Additionally, with revenue. interest impacted experience plan financing shift down was and by floor costs, up which our distributor

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

Our was rate to XX.X% for effective adjustments primarily unfavorable and year-over-year the to slightly tax quarter higher due income. pretax

or of $X.XX for share million income Net to per quarter the $X.XX income diluted net $XX.X quarter was second of share XXXX or XXXX. the compared diluted $XX.X million in per second

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

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

Will we anticipate to noted, improve collecting ours users receivables pass to of ensuring along end dealers half second key which our is XXXX. that our our improve As focus product a in cash to and conversion, of the significantly

XXXX, XX, XX, March $XXX.X as compared million December $XXX.X June XXXX. XXXX, were as Inventories of of million to $XXX.X and XX, million as of

Our have consistent, inventory customers process remained we have quickly in and finished to to inventory appropriate ensure readily in and investing to as turn keep as central our finally, and work goods inventory we possible. levels parts our relatively as will available to

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

capital in addition improvements, health productivity the we to of shareholders, capital expansion capacity returning areas relates our the to core our it X allocation, business: and safety to on and As focused of employees. remain in investing

are further updates And near the look where is while to mentioned appropriate. will forward in on our to we Will capacity that stages, bulk of efforts the the sharing we our as expansion efforts early be still in midterm. focused the

against quarter, our revolver our $XX fund the in an million additional we to to borrowed continue order During growth.

are future business. is all the that growth then the know, As in use of best you the cash debt-averse of believe we but investing company and a our

XXXX, of per record approved Directors dividend company quarterly and dividend. the $X.XX consecutive XXth it has of Lastly, close paid capital a to of cash XX, as shareholders relates the the X, XXXX, September our Board of returns of to September quarter at the business that payable on to shareholders, marking our share

$X We also April share in shares, back repurchase this $XX authorized million locked program of million year. the XX,XXX our of outstanding board representing

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

William Miller

you, Debbie. Thank

half Another has the of of the record clearly demonstrated markets. first year and continued operations success our

As with year growth record single-digit XXXX XXXX. we we ended fiscal anticipated high revenue, for

the now Given initial the date, high are guidance revenue our to we for growth single-digit performance of year. adjusting

for achieve of in We low expect double-digit historical rate. with to our full XXXX, the growth line compounded annual year growth

audits holidays fourth lower facilities. a to planned reminder our is revenue annual historically at our and maintenance investors, inventory quarter As a all due quarter to

us Our second provide backlog current a visibility trends solid and into XXXX. with half of

suppliers, entire customers questions. shareholders always, would of I the team for our for Industries. of the As management Miller all line continued At thank support open time, any to and and this we'd to like their like employees,

Operator

Shlisky Instructions] from Mike with Davidson. comes question D.A. [Operator First

Michael Shlisky

in couple in can quarters? of I actual year. the improved supply get for given I wanted cash some -- I expansion us margin been back pricing, wondering give I you Do you seeing margins if outlook was to would the some know your know can than larger imagine about thoughts revenues year-over-year guidance, of think half chain. if more you raised potential about give for the you to ask you for pinpoint the but of the last year? want you've rest for the the a I supply, increased from

William Miller

Yes.

mid that I expect think that But as our maintain, we that we continue call will will upper and margins remainder Mike, of no, little year it, the range. up. through XXXX I a XX margins believe for year the broken in the we be the

Michael Shlisky

to then the A, heavier the started longer that ahead here. the vehicles or to spectrum. And people who larger was larger our that some end trucks in in advance hear if chatter from of the in far term some XX to engine with Outstanding. We're Great. some you early price maybe both starting on in in or and as changes of to as of increases XXXX. going about their some I example, emissions XX OEMs [indiscernible]? There's buy of buying advance XXXX place taking of for hear wondering Class try are people are in about outlook buy use kind carriers been

William Miller

from far as truck could very time, that volume our believe there the quite get chassis as rebuys. and trucking is OEM to that bit closely has date. But far we're a base, I closer chatter base market as and nature. closer in the market, we in to customer truck of started point don't as a that emission I customer our that the as -- discussing we significant watching this prebuy, at At move really OEM change change things the potentially market of as think outlook it closer

Operator

over turn to William remarks. like would I for the floor Miller to closing

William Miller

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

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

Operator

concludes This today's teleconference.

at you for your disconnect You participation. time. your this may lines And thank

Miller Industries (MLR) 8 Aug 242024 Q2 Earnings call transcript