Miller Industries Inc Reports Stellar Annual Growth with Net Income Soaring by Over 186%
Net Sales: Q4 net sales jumped 31.2% to $296.2 million; full-year sales surged 35.9% to $1.15 billion.
Gross Profit: Q4 gross profit rose to $38.6 million, marking a gross margin increase to 13.0%.
Net Income: Q4 net income increased by 79.7% to $16.7 million; annual net income skyrocketed 186.5% to $58.3 million.
Earnings Per Share (EPS): Diluted EPS for Q4 was $1.45, up 79.0%; full-year diluted EPS climbed to $5.07, a 184.8% increase.
Dividend: Quarterly cash dividend raised by 5.6% to $0.19 per share.
Balance Sheet: Strong liquidity with $29.9 million in cash and temporary investments; total assets increased to $647.2 million.
On March 6, 2024, Miller Industries Inc (NYSE:MLR) released its 8-K filing, revealing a robust performance for both the fourth quarter and the full year of 2023. The company, a leading manufacturer of vehicle towing and recovery equipment, has reported significant growth in sales, net income, and earnings per share, while also increasing its quarterly dividend.
Financial Performance Highlights
Miller Industries' financial results for the fourth quarter show a substantial 31.2% increase in net sales, amounting to $296.2 million, compared to the same period in the previous year. This growth is attributed to strong order trends and improved delivery of finished goods to customers from the company's near $1 billion backlog. The full-year net sales also saw an impressive rise of 35.9%, reaching $1.15 billion.
The company's gross profit for the fourth quarter was $38.6 million, or 13.0% of net sales, a notable improvement from the 11.3% margin in the fourth quarter of 2022. This increase in gross margin was largely due to productivity initiatives and the stabilization of raw material costs.
Selling, general, and administrative expenses for the fourth quarter were $16.4 million, or 5.5% of net sales, reflecting the company's financial discipline and the scalability of its business model. Despite these expenses, net income for the quarter reached $16.7 million, or $1.45 per diluted share, marking an 80.2% increase in basic income per share.
Strategic Focus and Dividend Increase
William G. Miller II, Chief Executive Officer of Miller Industries, commented on the company's strategic investments and operational execution, which have led to the impressive financial results. He stated:
"2023 was a year of tremendous growth at Miller Industries. Over the past few years, weve remained committed to our strategy of investing in our capacity, productivity, and our people. Those investments and the execution of our long-term strategy, coupled with the improvements to our supply chain and ability to cope with the immense demand we have seen for our products over the last three years, are starting to reflect in our financial results, demonstrating the underlying strength of our company and our end-markets."
Miller also highlighted the company's focus on enhancing flexibility, reducing working capital, and the decision to increase the quarterly dividend to $0.19 per share, demonstrating confidence in the company's financial health and commitment to shareholder returns.
Balance Sheet and Future Outlook
Miller Industries' balance sheet remains strong, with total assets increasing to $647.2 million. The company has maintained a healthy liquidity position, with $29.9 million in cash and temporary investments. The increase in total assets is a testament to the company's growth and strategic investments throughout the year.
Looking ahead, Miller Industries anticipates another record year in 2024, with a near-record backlog and strong order trends. The company's strategic focus on operational efficiency and financial discipline positions it well for continued success in the competitive vehicle towing and recovery equipment market.
Miller Industries' robust financial performance, strategic initiatives, and positive outlook make it a compelling story for value investors and potential GuruFocus.com members seeking opportunities in the Vehicles & Parts industry.
Explore the complete 8-K earnings release (here) from Miller Industries Inc for further details.
This article first appeared on GuruFocus.
