Miller Industries (MLR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales increased 14.5% year-over-year to $314.3 million, driven by normalized OEM chassis deliveries and strong international demand.

• Net income for Q3 2024 was $15.4 million ($1.33 per diluted share), down 11.7% from Q3 2023, primarily due to margin pressure from increased chassis sales.

• Gross profit for Q3 2024 was $42.0 million (13.4% margin), down 2% year-over-year, with margin decline attributed to product mix normalization.

• Production at the Greeneville facility was paused for two weeks due to Hurricane Helene, causing minor delivery delays and a marginal revenue impact expected to shift into Q4.

• For the nine months ended September 30, 2024, net sales rose 20.8% to $1.04 billion, with net income up 27.3% to $53.0 million.

Financial highlights

• Q3 2024 diluted EPS was $1.33, compared to $1.52 in Q3 2023; nine-month diluted EPS was $4.57, up from $3.62.

• SG&A expenses rose to $22.3 million (7.1% of sales) in Q3 2024, reflecting higher executive compensation and employee incentives.

• Cash and cash equivalents increased to $40.6 million as of September 30, 2024, reflecting strong cash conversion from receivables.

• Interest expense for Q3 2024 dropped 86.2% year-over-year to $251,000.

• Operating income for Q3 2024 was $19.8 million, down 10.3% year-over-year.

Outlook and guidance

• Management reaffirms expectation of low double-digit revenue growth for full year 2024, supported by strong backlog, price increases, and productivity gains.

• Q4 is expected to be seasonally lower in revenue due to holidays, inventory audits, and planned maintenance, but Q3 revenue delays are expected to be offset by Q4 invoicing.

• Gross margins expected to remain in the mid-13% range into 2025, with product mix and chassis deliveries stabilizing.

• Plans to maintain near-record production levels until backlog normalizes; order intake expected to recover post-election.

• Ongoing risks include supply chain constraints, inflation, geopolitical factors, and potential recession.