Company Quick10K Filing
Miller Industries
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-03-06
10-Q 2018-10-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-07-31 Filed 2019-03-15
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-31 Filed 2018-03-07
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-03
10-K 2016-12-31 Filed 2017-03-15
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-03-09
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-05
10-Q 2015-03-31 Filed 2015-05-06
10-K 2014-12-31 Filed 2015-03-04
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-07
10-K 2013-12-31 Filed 2014-03-05
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-06
10-Q 2012-09-30 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-03-07
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-04
10-K 2010-12-31 Filed 2011-03-08
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-04
10-Q 2010-03-31 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-03-10
8-K 2019-11-06
8-K 2019-08-07
8-K 2019-05-24
8-K 2019-05-08
8-K 2019-03-06
8-K 2018-12-20
8-K 2018-11-07
8-K 2018-09-05
8-K 2018-08-08
8-K 2018-07-19
8-K 2018-05-25
8-K 2018-05-09
8-K 2018-03-07

MLR 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 mlr-20190930ex311e5d1ea.htm
EX-31.2 mlr-20190930ex31245891f.htm
EX-31.3 mlr-20190930ex313360775.htm
EX-32.1 mlr-20190930ex321504584.htm
EX-32.2 mlr-20190930ex32299493d.htm
EX-32.3 mlr-20190930ex3230cb9dd.htm

Miller Industries Earnings 2019-09-30

Balance SheetIncome StatementCash Flow

10-Q 1 mlr-20190930x10q.htm 10-Q mlr_Current_Folio_10Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended

  September 30, 2019

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from  ___________________________________________ to ________________________________________

 

Commission file number

     001‑14124

 

MILLER INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

 

Tennessee

 

62‑1566286

(State or other jurisdiction of incorporation or

 

(I.R.S. Employer Identification No.)

organization)

 

 

 

 

 

8503 Hilltop Drive

 

 

Ooltewah, Tennessee

 

37363

(Address of principal executive offices)

 

(Zip Code)

 

(423) 238‑4171

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.01 per share

MLR

New York Stock Exchange

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒        No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒        No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act:

 

Large accelerated filer ☐

Accelerated filer ☒

 

 

 

 

Non-accelerated filer ☐

Smaller reporting company ☐

 

 

 

 

Emerging growth company ☐

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).

Yes ☐        No ☒

The number of shares outstanding of the registrant’s common stock, par value $.01 per share, as of October 31, 2019 was 11,400,102.

 

 

 

 

Picture 1

Index

 

 

 

 

 

 

Page Number

PART I 

FINANCIAL INFORMATION

 

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets – September 30, 2019 and December 31, 2018

2

 

 

 

 

 

 

Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2019 and 2018

3

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018

4

 

 

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2019 and 2018

5

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

7

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

8

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

17

 

 

 

 

 

Item 4.

Controls and Procedures

18

 

 

 

 

PART II 

 

OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

18

 

 

 

 

 

Item 1A.

Risk Factors

18

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

18

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities

19

 

 

 

 

 

Item 4.

Mine Safety Disclosures

19

 

 

 

 

 

Item 5.

Other Information

19

 

 

 

 

 

Item 6.

Exhibits

20

 

 

 

 

SIGNATURES 

21

 

 

 

FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10‑Q, including but not limited to statements made in Part I, Item 2–“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” statements made with respect to future operating results, expectations of future customer orders and the availability of resources necessary for our business may be deemed to be forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “continue,” “future,” “potential,” “believe,” “project,” “plan,” “intend,” “seek,” “estimate,” “predict,” “expect,” “anticipate” and similar expressions, or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management’s beliefs as well as assumptions made by, and information currently available to, our management. Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things: the cyclical nature of our industry and changes in consumer confidence; economic and market conditions; our customers’ access to capital and credit to fund purchases; our dependence upon outside suppliers for our raw materials, including aluminum, steel, petroleum-related products and other purchased component parts; changes in price (including as a result of the imposition of tariffs) of aluminum, steel, petroleum-related products and other purchased component parts; delays in receiving supplies of such materials or parts; operational challenges caused by our increased sales volumes; changes in fuel and other transportation costs, insurance costs and weather conditions; changes in government regulation; various political, economic and other uncertainties relating to our international operations, including restrictive taxation and foreign currency fluctuation; failure to comply with domestic and foreign anti-corruption laws; special risks from our sales to U.S. and other governmental entities through prime contractors; our ability to secure new military orders; competition and our ability to attract or retain customers; our ability to develop or acquire proprietary products and technology; assertions against us relating to intellectual property rights; problems hiring or retaining skilled labor; a disruption in, or breach in security of, our information technology systems or any violation of data protection laws; changes in the tax regimes and related government policies and regulations in the countries in which we operate; the effects of regulations relating to conflict minerals; the catastrophic loss of one of our manufacturing facilities; environmental and health and safety liabilities and requirements; loss of the services of our key executives; product warranty or product liability claims in excess of our insurance coverage; potential recalls of components or parts manufactured for us by suppliers or potential recalls of defective products; an inability to acquire insurance at commercially reasonable rates; and those other risks referenced herein, including those risks referred to in Part II, Item 1A–“Risk Factors” in this Quarterly Report on Form 10‑Q and those risks discussed in our other filings with the Securities and Exchange Commission, including those risks discussed under the caption “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2018 (as the same may be updated from time to time in subsequent quarterly reports), which discussion is incorporated herein by this reference. Such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, our company.

 

 

 

PART I. FINANCIAL INFORMATION

ITEM 1.          FINANCIAL STATEMENTS

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

September 30, 

    

 

 

 

 

2019

 

December 31, 

 

    

(Unaudited)

    

2018

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and temporary investments

 

$

27,459

 

$

27,037

Accounts receivable, net of allowance for doubtful accounts of $1,048 and $1,112 at September 30, 2019 and December 31, 2018, respectively

 

 

165,789

 

 

149,142

Inventories, net

 

 

98,072

 

 

93,767

Prepaid expenses

 

 

4,745

 

 

3,272

Total current assets

 

 

296,065

 

 

273,218

NONCURRENT ASSETS:

 

 

 

 

 

 

Property, plant and equipment, net

 

 

91,527

 

 

82,850

Right-of-use assets - operating leases

 

 

1,407

 

 

 —

Goodwill

 

 

11,619

 

 

11,619

Other assets

 

 

504

 

 

497

TOTAL ASSETS

 

$

401,122

 

$

368,184

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

114,871

 

$

98,220

Accrued liabilities

 

 

24,792

 

 

24,863

Current portion of operating lease obligation

 

 

343

 

 

 —

Current portion of finance lease obligation

 

 

21

 

 

20

Long-term obligations due within one year

 

 

368

 

 

285

Total current liabilities

 

 

140,395

 

 

123,388

NONCURRENT LIABILITIES

 

 

 

 

 

 

Long-term obligations

 

 

10,092

 

 

15,475

Noncurrent portion of operating lease obligation

 

 

1,061

 

 

 —

Noncurrent portion of finance lease obligation

 

 

42

 

 

58

Deferred income tax liabilities

 

 

1,765

 

 

1,700

Total liabilities

 

 

153,355

 

 

140,621

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES (Notes 6 and 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding

 

 

 —

 

 

 —

Common stock, $0.01 par value; 100,000,000 shares authorized, 11,400,102 and 11,394,546, outstanding at September 30, 2019 and December 31, 2018, respectively

 

 

114

 

 

114

Additional paid-in capital

 

 

151,055

 

 

150,905

Accumulated surplus

 

 

102,621

 

 

81,354

Accumulated other comprehensive loss

 

 

(6,023)

 

 

(4,810)

Total shareholders’ equity

 

 

247,767

 

 

227,563

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

401,122

 

$

368,184

 

The accompanying notes are an integral part of these financial statements.

2

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30

 

September 30

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

195,467

 

$

195,690

 

$

615,026

 

$

531,738

COSTS OF OPERATIONS

 

 

173,721

 

 

174,214

 

 

545,470

 

 

470,556

GROSS PROFIT

 

 

21,746

 

 

21,476

 

 

69,556

 

 

61,182

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

  

 

 

  

 

 

  

 

 

  

Selling, general and administrative expenses

 

 

10,453

 

 

9,450

 

 

31,636

 

 

28,717

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING (INCOME) EXPENSES:

 

 

  

 

 

  

 

 

  

 

 

  

Interest expense, net

 

 

424

 

 

525

 

 

1,813

 

 

1,429

Other (income) expense, net

 

 

231

 

 

76

 

 

542

 

 

(212)

Total expense, net

 

 

11,108

 

 

10,051

 

 

33,991

 

 

29,934

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

10,638

 

 

11,425

 

 

35,565

 

 

31,248

INCOME TAX PROVISION

 

 

2,562

 

 

2,748

 

 

8,146

 

 

8,301

NET INCOME

 

$

8,076

 

$

8,677

 

$

27,419

 

$

22,947

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC INCOME PER COMMON SHARE

 

$

0.71

 

$

0.76

 

$

2.41

 

$

2.02

DILUTED INCOME PER COMMON SHARE

 

$

0.71

 

$

0.76

 

$

2.41

 

$

2.01

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.18

 

$

0.18

 

$

0.54

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

  

 

 

  

 

 

  

 

 

  

Basic

 

 

11,400

 

 

11,389

 

 

11,400

 

 

11,386

Diluted

 

 

11,400

 

 

11,393

 

 

11,400

 

 

11,393

 

The accompanying notes are an integral part of these financial statements.

3

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30

 

September 30

 

    

2019

    

2018

    

2019

    

2018

NET INCOME

 

$

8,076

 

$

8,677

 

$

27,419

 

$

22,947

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

  

 

 

  

 

 

  

 

 

  

Foreign currency translation adjustment

 

 

(560)

 

 

62

 

 

(1,213)

 

 

(453)

Total other comprehensive income

 

 

(560)

 

 

62

 

 

(1,213)

 

 

(453)

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

7,516

 

$

8,739

 

$

26,206

 

$

22,494

 

The accompanying notes are an integral part of these financial statements.

4

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

    

 

 

    

Accumulated

    

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Accumulated

 

Comprehensive

 

 

 

 

 

Stock

 

Capital

 

Surplus

 

Loss

 

Total

BALANCE, December 31, 2017

 

$

114

 

$

150,699

 

$

55,580

 

$

(3,293)

 

$

203,100

Cumulative effect adjustment for adoption of ASU 2014-09

 

 

 —

 

 

 —

 

 

(324)

 

 

 —

 

 

(324)

BALANCE, January 1, 2018

 

 

114

 

 

150,699

 

 

55,256

 

 

(3,293)

 

 

202,776

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

6,670

 

 

 —

 

 

6,670

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

817

 

 

817

Total comprehensive income

 

 

 —

 

 

 —

 

 

6,670

 

 

817

 

 

7,487

Issuance of common stock to non-employee directors (5,814)

 

 

 —

 

 

150

 

 

 —

 

 

 —

 

 

150

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,049)

 

 

 —

 

 

(2,049)

BALANCE, March 31, 2018

 

 

114

 

 

150,849

 

 

59,877

 

 

(2,476)

 

 

208,364

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

7,600

 

 

 —

 

 

7,600

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

(1,332)

 

 

(1,332)

Total comprehensive income

 

 

 —

 

 

 —

 

 

7,600

 

 

(1,332)

 

 

6,268

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,049)

 

 

 —

 

 

(2,049)

BALANCE, June 30, 2018

 

 

114

 

 

150,849

 

 

65,428

 

 

(3,808)

 

 

212,583

Prior period accounting reclassification

 

 

 —

 

 

 —

 

 

552

 

 

(552)

 

 

 —

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

8,677

 

 

 —

 

 

8,677

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

62

 

 

62

Total comprehensive income

 

 

 —

 

 

 —

 

 

9,229

 

 

(490)

 

 

8,739

Exercise of stock options (10,250)

 

 

 —

 

 

56

 

 

 —

 

 

 —

 

 

56

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,051)

 

 

 —

 

 

(2,051)

BALANCE, September 30, 2018

 

$

114

 

$

150,905

 

$

72,606

 

$

(4,298)

 

$

219,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

5

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - Continued

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

Accumulated

    

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Accumulated

 

Comprehensive

 

 

 

 

 

Stock

 

Capital

 

Surplus

 

Loss

 

Total

BALANCE, December 31, 2018

 

$

114

 

$

150,905

 

$

81,354

 

$

(4,810)

 

$

227,563

Cumulative effect adjustment for adoption of ASU 2016-02

 

 

 —

 

 

 —

 

 

 4

 

 

 —

 

 

 4

BALANCE, January 1, 2019

 

 

114

 

 

150,905

 

 

81,358

 

 

(4,810)

 

 

227,567

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

8,660

 

 

 —

 

 

8,660

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

277

 

 

277

Total comprehensive income

 

 

 —

 

 

 —

 

 

8,660

 

 

277

 

 

8,937

Issuance of common stock to non-employee directors (5,556)

 

 

 —

 

 

150

 

 

 —

 

 

 —

 

 

150

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,052)

 

 

 —

 

 

(2,052)

BALANCE, March 31, 2019

 

 

114

 

 

151,055

 

 

87,966

 

 

(4,533)

 

 

234,602

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

10,683

 

 

 —

 

 

10,683

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

(930)

 

 

(930)

Total comprehensive income

 

 

 —

 

 

 —

 

 

10,683

 

 

(930)

 

 

9,753

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,051)

 

 

 —

 

 

(2,051)

BALANCE, June 30, 2019

 

 

114

 

 

151,055

 

 

96,598

 

 

(5,463)

 

 

242,304

Components of comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 —

 

 

 —

 

 

8,076

 

 

 —

 

 

8,076

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

(560)

 

 

(560)

Total comprehensive income

 

 

 —

 

 

 —

 

 

8,076

 

 

(560)

 

 

7,516

Dividends paid, $0.18 per share

 

 

 —

 

 

 —

 

 

(2,053)

 

 

 —

 

 

(2,053)

BALANCE, September 30, 2019

 

$

114

 

$

151,055

 

$

102,621

 

$

(6,023)

 

$

247,767

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30

 

    

2019

    

2018

OPERATING ACTIVITIES:

 

 

  

 

 

  

Net income

 

$

27,419

 

$

22,947

Adjustments to reconcile net income to net cash flows from operating activities:

 

 

  

 

 

  

Depreciation and amortization

 

 

6,612

 

 

5,577

(Gain) Loss on disposal of property, plant and equipment

 

 

(8)

 

 

133

Provision for doubtful accounts

 

 

(33)

 

 

163

Issuance of non-employee director shares

 

 

150

 

 

150

Deferred tax provision

 

 

59

 

 

123

Changes in operating assets and liabilities:

 

 

  

 

 

  

Accounts receivable

 

 

(16,841)

 

 

(25,807)

Inventories

 

 

(5,063)

 

 

(13,846)

Prepaid expenses

 

 

(1,483)

 

 

656

Other assets

 

 

781

 

 

(25)

Accounts payable

 

 

17,186

 

 

21,792

Accrued liabilities

 

 

(755)

 

 

3,508

Net cash flows from operating activities

 

 

28,024

 

 

15,371

INVESTING ACTIVITIES:

 

 

  

 

 

  

Purchases of property, plant and equipment

 

 

(15,434)

 

 

(12,651)

Proceeds from sale of property, plant and equipment

 

 

31

 

 

117

Net cash flows from investing activities

 

 

(15,403)

 

 

(12,534)

FINANCING ACTIVITIES:

 

 

  

 

 

  

Net payments under credit facility

 

 

(5,000)

 

 

 —

Payments of cash dividends

 

 

(6,156)

 

 

(6,149)

Net proceeds (payments) on other long-term obligations

 

 

(275)

 

 

281

Finance lease obligation payments

 

 

(15)

 

 

 —

Proceeds from exercise of stock options

 

 

 —

 

 

56

Net cash flows from financing activities

 

 

(11,446)

 

 

(5,812)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS

 

 

(753)

 

 

(255)

NET CHANGE IN CASH AND TEMPORARY INVESTMENTS

 

 

422

 

 

(3,230)

CASH AND TEMPORARY INVESTMENTS, beginning of period

 

 

27,037

 

 

21,895

CASH AND TEMPORARY INVESTMENTS, end of period

 

$

27,459

 

$

18,665

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 

 

  

 

 

  

Cash payments for interest

 

$

2,500

 

$

1,788

Cash payments for income taxes, net of refunds

 

$

9,050

 

$

6,136

 

The accompanying notes are an integral part of these financial statements.

7

MILLER INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(in thousands, except share data and except as otherwise noted)

1.          BASIS OF PRESENTATION

The condensed consolidated financial statements of Miller Industries, Inc. and subsidiaries (the “Company”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. Nevertheless, the Company believes that the disclosures are adequate to make the financial information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, to present fairly the Company’s financial position, results of operations and cash flows at the dates and for the periods presented. Cost of goods sold for interim periods for certain activities is determined based on estimated gross profit rates. Interim results of operations are not necessarily indicative of results to be expected for the fiscal year.

These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. The condensed consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31st by 31 days (or less) to facilitate timely reporting.

 

2.          RECENT ACCOUNTING PRONOUNCEMENTS

Recently Issued Standards

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2018‑15 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350‑40) to align the requirements for capitalizing implementation costs incurred in cloud computing arrangements that are service contracts with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to apply the amendments in the update prospectively to all implementation costs incurred after the date of the adoption. The adoption of this update will not have a material impact on the Company’s consolidated financial statements and related disclosures.

Recently Adopted Standards

The FASB issued ASU 2016‑02 Leases (Topic 842) to improve financial reporting on leasing transactions. The update affects all companies that lease assets. The amendments require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by lease agreements with terms greater than twelve months. Companies are also required to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. The Company elected the package of practical expedients permitted by ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance without reassessing whether the contracts contained a lease under ASC Topic 842 or whether classification of the operating leases would be different in accordance with ASC Topic 842. In the same manner, the company will not reassess the allocation of initial direct costs on existing leases. The Company also elected to not allocate consideration between lease and non-lease components. The amendments were adopted by the Company in the first quarter of 2019 by applying the modified retrospective approach and making a cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2019. The cumulative effect adjustment to the consolidated balance sheets as of January 1, 2019 was as follows:

8

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

Cumulative Effect

 

Balance at

 

    

December 31, 2018

    

Adjustment

    

January 1, 2019

Assets

 

 

 

 

 

 

 

 

 

Right-of-use assets - operating leases

 

$

 —

 

$

2,268

 

$

2,268

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

  

 

 

  

 

 

  

Current portion of operating lease obligation

 

 

 —

 

 

1,358

 

 

1,358

Noncurrent portion of operating lease obligation

 

 

 —

 

 

905

 

 

905

Deferred income tax liabilities

 

 

1,700

 

 

 1

 

 

1,701

Accumulated surplus

 

 

81,354

 

 

 4

 

 

81,358

In August 2018, the SEC issued a final rule to amend certain redundant or outdated disclosure requirements to simplify compliance with financial reporting. In an effort to reduce such duplicative disclosures, many requirements of the SEC were either eliminated or reduced where GAAP had identical or similar disclosure provisions for the notes to financial statements. In other instances, disclosure requirements were enhanced to improve transparency. The Company adopted these amendments in the first quarter of 2019. The adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures.

3.          BASIC AND DILUTED INCOME PER SHARE

Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted income per share is calculated by dividing net income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 5,000 and 7,000  potential dilutive common shares for the three and nine months ended September 30, 2018, respectively. The Company had no outstanding stock options and no potential dilutive common shares for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2018, none of the outstanding stock options would have been anti-dilutive.

 

4.          REVENUE