• Net Sales: $1.15 billion for the full year 2023, a 35.9% increase from $848.5 million in 2022.
• Gross Profit: $151.9 million or 13.2% of sales in 2023, up from $82.4 million or 9.7% in 2022.
• Net Income: $58.3 million or $5.07 per diluted share in 2023, compared to $20.3 million or $1.78 per share in 2022, increases of 186.5% and 184.8% respectively.
• Cash and Cash Equivalents: $29.9 million as of December 31, 2023, compared to $40.2 million as of December 31, 2022.
• Accounts Receivable: $286.1 million as of December 31, 2023, up from $177.7 million as of December 31, 2022.
• Inventories: $189.8 million as of December 31, 2023, compared to $153.7 million as of December 31, 2022.
• Accounts Payable: $191.8 million as of December 31, 2023, compared to $125.5 million as of December 31, 2022.
• Dividend Increase: 5.6% increase in dividend.
• Debt Reduction: Paid down $5 million on debt, resulting in a current balance of $55 million.

• Warning! GuruFocus has detected 3 Warning Signs with MLR.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Net sales for the full year of 2023 increased by 35.9% to $1.15 billion compared to the prior year.
• Gross profit improved significantly, reaching $151.9 million or 13.2% of sales, up from $82.4 million or 9.7% of sales in 2022.
• Net income for 2023 saw a substantial increase of 186.5%, amounting to $58.3 million or $5.07 per diluted share.
• The company increased its dividend by 5.6% and paid down $5 million on its debt balance, reducing it to $55 million.
• Miller Industries Inc (NYSE:MLR) has a strong backlog approaching $1 billion, indicating robust demand for its products.

Negative Points

• Cash and cash equivalents decreased from $40.2 million at the end of 2022 to $29.9 million by December 31, 2023.
• Accounts receivable increased significantly to $286.1 million by the end of 2023, which may indicate slower collections.
• Inventories rose to $189.8 million by the end of 2023, suggesting potential overstocking or slower inventory turnover.
• Accounts payable increased to $191.8 million by the end of 2023, which could impact cash flow if not managed properly.
• The international business is still facing challenges due to geopolitical strife, which could affect future performance.

Q & A Highlights

Q: Can you provide a summary of Miller Industries' financial performance for the full year of 2023? A: Deborah Whitmire, CFO, reported that net sales for 2023 were $1.15 billion, a 35.9% increase from the previous year. Gross profit was $151.9 million, representing 13.2% of sales, up from $82.4 million or 9.7% in 2022. Net income rose to $58.3 million or $5.07 per diluted share, marking increases of 186.5% and 184.8% respectively from 2022.

Q: What are the key components of Miller Industries' capital allocation strategy? A: Deborah Whitmire outlined four main areas: investing in the business to increase capacity and improve productivity, returning capital to shareholders, pursuing accretive M&A, and reducing debt. The company increased its dividend by 5.6% and paid down $5 million on its debt balance in the first quarter of 2024.

Q: How is Miller Industries performing in terms of demand and backlog? A: William Miller, CEO, stated that there is no slowdown in demand across geographies, with a backlog approaching $1 billion. The North American business remains strong, and international operations are improving due to geopolitical factors.

Q: What are the expectations for Miller Industries in fiscal year 2024? A: William Miller expressed confidence in achieving high single-digit revenue growth and continued productivity enhancements, aiming for another year of record revenue and net income.

Q: Were there any questions from participants during the Q&A session? A: No questions were asked during the session. William Miller invited participants to visit the investor relations website or email for further inquiries.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.