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Miller Industries, Inc. is the world's largest manufacturer of towing and recovery equipment. The company designs, manufactures, and markets a wide range of towing and recovery equipment under several well-recognized brands. They sell products such as wreckers, car carriers, and transport trailers, which are essential for towing and recovery operations globally.  **[0001104659-23-117754_tm2330609d1_ex99-1.htm:1]** **[0001558370-23-003178_mlr-20221231x10k.htm:71]** **[0001104659-24-093452_tm2422709d1_ex99-1.htm:1]** 

1. **Wreckers** - Manufacture vehicles used to recover and tow disabled vehicles and other equipment, ranging from conventional tow trucks to large recovery vehicles with rotating hydraulic booms and lifting capacities of up to 100 tons.  **[0001104659-23-117754_tm2330609d1_ex99-1.htm:1]** **[0001104659-23-094531_tm2324600d1_ex99-1.htm:1]** **[0001104659-24-093452_tm2422709d1_ex99-1.htm:1]** 
2. **Car Carriers** - Produce specialized flatbed vehicles with hydraulic tilt mechanisms that allow towing operators to drive or winch vehicles onto the bed for transport, effective for long-distance transport of new or disabled vehicles.  **[0001104659-23-117754_tm2330609d1_ex99-1.htm:1]** **[0001104659-23-094531_tm2324600d1_ex99-1.htm:1]** **[0001104659-24-093452_tm2422709d1_ex99-1.htm:1]** 
3. **Transport Trailers** - Manufacture a line of transport trailers used in the towing and recovery industry.  **[0001104659-23-117754_tm2330609d1_ex99-1.htm:1]** **[0001104659-23-094531_tm2324600d1_ex99-1.htm:1]** **[0001104659-24-093452_tm2422709d1_ex99-1.htm:1]**

caacd080186d1ba8a23ac8efcb294248a887b6ed1481d60407fcd5993ff43c26

| Name                  | Position                                                   | Start Date         | Short Bio                                                                                                                                                                                                                     |
|-----------------------|-----------------------------------------------------------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| William G. Miller II  | President and Chief Executive Officer                     | March 2022         | William G. Miller II has been with Miller Industries since **2002**, serving in roles such as **Co-CEO (2013–2022)**, **President (2011–2022)**, and **Regional VP of Sales (2009–2011)**.  **[0001104659-24-093452_tm2422709d1_ex99-1.htm:2]** **[0001104659-23-117754_tm2330609d1_ex99-1.htm:2]** **[0001558370-24-002625_mlr-20231231x10k.htm:11]**                           |
| Deborah L. Whitmire   | Executive VP, Chief Financial Officer, and Treasurer      | January 2017       | Deborah L. Whitmire has been with Miller Industries since **1996**, holding roles such as **VP and Corporate Controller (2014–2016)** and **Corporate Controller (2005–2014)**.  **[0001104659-24-093452_tm2422709d1_ex99-1.htm:2]** **[0001558370-24-002625_mlr-20231231x10k.htm:12]** **[0001104659-23-117754_tm2330609d1_ex99-1.htm:2]**                                     |
| William G. Miller     | Executive Chairman of the Board of Directors              | April 1994         | William G. Miller founded Miller Industries in **1994** and has served in roles such as **CEO (1994–1997)** and **Co-CEO (2003–2011)**. He has prior leadership experience at companies like Bendix and Wheelabrator.  **[0001558370-24-002625_mlr-20231231x10k.htm:11]** **[0001558370-24-005894_mlr-20240621xdef14a.htm:15]** **[0001558370-23-007478_mlr-20230526xdef14a.htm:6]** **[0001558370-23-007695_mlr-20221231xdefr14a.htm:6]**  |
| Jeffrey I. Badgley    | President of International and Military                   | March 2022         | Jeffrey I. Badgley has been with Miller Industries since **1988**, serving in roles such as **CEO (1997–2003; 2011–2013)**, **Co-CEO (2003–2022)**, and **President (1996–2011)**.  **[0001558370-24-002625_mlr-20231231x10k.htm:11]** **[0001558370-23-003178_mlr-20221231x10k.htm:16]**                                      |
| Josias W. Reyneke     | Vice President and Chief Information Officer              | January 2017       | Josias W. Reyneke joined Miller Industries as a consultant in **1997** and has held roles such as **Director of Management Information Systems (1998–2011)** and **VP of Operations (2011–2016)**.  **[0001558370-24-002625_mlr-20231231x10k.htm:12]** **[0001558370-23-003178_mlr-20221231x10k.htm:17]**                      |
| Vincent Tiano         | Vice President and Chief Revenue Officer                 | January 2021       | Vincent Tiano has been with Miller Industries since **1997**, serving as **VP of Sales (1997–2020)** before becoming Chief Revenue Officer.  **[0001558370-23-003178_mlr-20221231x10k.htm:17]** **[0000924822-22-000013_mlr-20211231x10k.htm:15]** **[0001558370-24-002625_mlr-20231231x10k.htm:12]**                                                                          |
| Frank Madonia         | Executive VP, Secretary, and General Counsel             | September 1998     | Frank Madonia has been with Miller Industries since **1990**, serving in roles such as **VP, General Counsel, and Secretary (1994–1998)**. He has prior experience at companies like U.S. Steel and Wheelabrator.  **[0001558370-24-002625_mlr-20231231x10k.htm:12]** **[0001558370-23-003178_mlr-20221231x10k.htm:16]**        |

e66822822de25700df55929849bf7c4d4e4daff7a87c4d763c6d57ac7b65fd98

1. "With the slowdown in order intake attributed to timing of OEM chassis deliveries, distributor throughput capacity, and political uncertainty, what specific actions are you taking to address these issues, and how confident are you that backlog will return to historical levels in the next 1-2 quarters?  **[MLR_3408344_4]** "
2. "Given that SG&A expenses increased in Q3 due to new compliance and regulations, pushing SG&A as a percentage of net sales above your long-term target of 6.5%, what strategies do you have to control these costs and improve operating leverage in 2025?  **[MLR_3408344_7]** **[MLR_3408344_2]** "
3. "Gross margins decreased due to product mix shifts and normalization of chassis deliveries; what factors could impact your gross margins going forward, and how do you plan to manage potential fluctuations to maintain profitability?  **[MLR_3408344_2]** **[MLR_3408344_6]** "
4. "Considering the operational disruptions caused by Hurricane Helen, what risk mitigation plans do you have in place to protect your facilities from future extreme weather events, and how might such events affect your financial performance?  **[MLR_3408344_0]** "
5. "You mentioned balancing returning capital to shareholders with potential capacity expansion and debt reduction; how are you prioritizing these capital allocation decisions, and what factors influence your investment in growth opportunities versus shareholder returns?  **[MLR_3408344_3]** **[MLR_3408344_0]** "

148207e03891c89297b02c2024c084cc1f047798ad0f36263fb561676e467e7e

### Miller Industries (MLR) Guidance in the Last Four Earnings Calls

| **Earnings Call Title** | **Issued Period** | **Guided Period** | **Guidance** |
|--------------------------|-------------------|-------------------|--------------|
| **Q3 2024 Earnings Call** | Q3 2024 | FY 2024 | 1. **Revenue Growth**: Low double-digit growth for FY 2024, in line with historical CAGR. **[MLR_3408344_4]** 2. **Gross Margins**: Mid-13% range, with slight quarter-to-quarter fluctuations based on product mix. **[MLR_3408344_2]** **[MLR_3408344_6]** 3. **SG&A Expenses**: Expected to end FY 2024 slightly above the long-term target of ~6.5% of sales. **[MLR_3408344_2]** 4. **Backlog**: Anticipated to return to historical levels over the next 1-2 quarters. **[MLR_3408344_4]** |
| **Q2 2024 Earnings Call** | Q2 2024 | FY 2024 | 1. **Revenue Growth**: Adjusted to low double-digit growth for FY 2024, aligning with historical CAGR. **[MLR_3397678_3]** 2. **Gross Margins**: Mid-upper 13% range. **[MLR_3397678_4]** 3. **Seasonality**: Q4 2024 expected to be a lower revenue quarter due to holidays, inventory audits, and planned maintenance. **[MLR_3397678_3]** |
| **Q1 2024 Earnings Call** | Q1 2024 | FY 2024 | 1. **Revenue Growth**: High single-digit top-line growth for FY 2024 compared to record 2023. **[MLR_3388000_0]** **[MLR_3388000_2]** 2. **Gross Margins**: Expected to remain consistent with recent quarterly results as product mix normalizes. **[MLR_3388000_1]** **[MLR_3388000_0]** 3. **SG&A Expenses**: Expected to remain consistent as a percentage of sales. **[MLR_3388000_1]** |
| **Q4 2023 Earnings Call** | Q4 2023 | N/A | The documents do not provide information about the guidance or the guided period for Q4 2023. |

c5af11d82bf7283bffba811bce2f68e108ad782062425aad12e136d7f154f140

| Program Details          | Program 1          |
|--------------------------|--------------------|
| **Approval Date**        | April 2, 2024  **[0001558370-24-015338_mlr-20240930x10q.htm:26]**  |
| **End Date/Duration**    | No expiration  **[0001558370-24-015338_mlr-20240930x10q.htm:26]**  |
| **Total Additional Amount** | $25.0 million  **[0001558370-24-015338_mlr-20240930x10q.htm:26]**  |
| **Remaining Authorization** | $22.1 million (as of 2024-09-30)  **[0001558370-24-015338_mlr-20240930x10q.htm:26]**  |
| **Details**              | Designed to create shareholder value, reflects confidence in strategy and financial strength, and is part of a broader capital allocation strategy.  **[0001558370-24-011387_mlr-20240630x10q.htm:13]** **[0001558370-24-007367_mlr-20240331x10q.htm:13]** **[0001558370-24-015338_mlr-20240930x10q.htm:14]** **[MLR_3397678_0]**  |

953487dff9c9c530378706be66a5eae1369ac1932f0727a6fab0f47af3f59ddc

North America

Foreign

Total Revenue

e7e149e4ef24867c687c5cecf22bbb90c91e22205efe4711cd7411642b29eae1

- **Lack of significant pre-buy activity** from customers ahead of the 2027 emission changes could indicate potential future demand softness or uncertainty in core markets. William Miller stated, "I don't believe that our customer base has really started discussing it at a significant volume as far as truck rebuys." **[MLR_3397678_5]**
- Management expects **margins to maintain rather than expand** in the remainder of 2024, forecasting margins "in the mid upper **13%** range," which suggests limited profitability growth despite increased revenues. **[MLR_3397678_4]**
- The company is closely **monitoring the OEM chassis market** due to upcoming emission changes, indicating potential risks related to supply chain disruptions or increased costs that could impact future operations. William Miller mentioned, "we're watching the OEM market, the chassis market very closely as we move closer and closer to that date." **[MLR_3397678_5]**

c850ec5974e20039988da64f5b55cabc5936bd7f035c56c9faf4959fc486008a

- **Potential Increase in Demand Due to Upcoming Emissions Changes in 2027**: There is chatter in the OEM truck market about pre-buying ahead of emissions changes expected in 2027. While Miller Industries' customer base hasn't yet discussed significant truck rebuys, the executive mentioned that as the emission change date approaches, this outlook could potentially change, leading to increased demand for the company's products.  **[MLR_3397678_5]**
- **Expectation of Stable Margins**: The company expects margins to remain in the mid to upper 13% range for the remainder of 2024, indicating confidence in maintaining profitability levels despite potential market challenges.  **[MLR_3397678_4]**

545825d5e844f3910a2850eb4ea874a58a7ec5f1b627c15d88dab50faae51a8a

- **Post-election sentiment has improved significantly**, with multiple deals that were on hold now completed, which is expected to **increase orders** and **reinstill confidence in the consumer**.  **[MLR_3408344_5]**
- **Distributors are reinvesting and expanding their facilities**, increasing their **throughput capacity**, which is anticipated to **catch up in the next quarter or two**, supporting **sales growth**.  **[MLR_3408344_5]**
- **Management reaffirms expectation of achieving low double-digit growth for the full year 2024**, and anticipates **strong year-over-year profitability increase**, showing confidence in the business outlook.  **[MLR_3408344_4]**

0bc6275c2f6fd9798292764324eef976e19e5d77db6919e0397fe0eac76b43e8

1. **Inventory Reduction and Debt Paydown**  
   **Q:** Can you reduce inventory to pay down debt and possibly raise dividends?  
   **A:** Management confirms they are reaching **peak inventory levels** and plan to use cash from reducing inventories to **pay down debt**, which is **a priority** for them. As for raising dividends, that's a decision made **quarterly by the Board**.  **[MLR_3365915_6]** 

2. **Chassis Supply Impact on Production**  
   **Q:** Did better chassis supply help increase sales and productivity?  
   **A:** Although chassis suppliers struggled in **Q3**, they expect better deliveries in **Q4** and into next year. The company owns the chassis they upfit and believes they have **sufficient chassis on hand** to maintain production levels seen **this year**.  **[MLR_3365915_7]** 

3. **SG&A Expenses and R&D Investment**  
   **Q:** Will SG&A expenses change due to increased R&D spending?  
   **A:** Management anticipates **SG&A expenses to remain consistent** going forward, with the current **run rate** supporting all foreseeable initiatives, including innovation and R&D.  **[MLR_3365915_8]** 

a2dab22b4d4b640c7f0aa9563113bb4571e31f1da34d3e6cdc736598d330a582

1. **Margin Outlook**  
   **Q:** Can you discuss margin expectations for the rest of the year?  
   **A:** Management expects margins to maintain through the remainder of the year and anticipates margins for 2024 to be in the **mid to upper 13% range**.  **[MLR_3397678_4]** 

2. **Emission Regulation Impact**  
   **Q:** Are customers accelerating purchases ahead of 2027 emission changes?  
   **A:** While there's chatter in the OEM truck market about pre-buying due to upcoming emission changes in 2027, the company's customer base hasn't significantly discussed early purchases yet. However, as the emission change approaches, this outlook could potentially change, and the company is monitoring the OEM and chassis markets closely.  **[MLR_3397678_5]** 

dd88356e186f4629a9cdc9d67ff4179cbc6d0f19b08a1cf5b6323054bbc0ab47

- **Slow order entry during the quarter** due to political uncertainty, with no immediate increase in orders observed after the election, potentially impacting future revenue growth.  **[MLR_3408344_5]**
- **Distributor throughput capacity constraints** are limiting their ability to process chassis deliveries, which may hinder the company's capacity to meet demand and affect sales.  **[MLR_3408344_5]**
- **Elevated SG&A expenses** driven by new compliance and regulations that are **adding costs out of the company's control**, possibly preventing SG&A from decreasing below the target of **6.5% of net sales** and impacting profitability.  **[MLR_3408344_7]**

6e5378e934754333820d446a26600dd33df481892b1c86aa61abc5ce74488ebe

1. **Gross Margin Outlook**  
   **Q:** How will gross margins look next year?  
   **A:** Management expects gross margins to remain consistent into next year, maintaining levels where they have been for the full year. They anticipate OEM chassis deliveries in 2024 to align with expectations, despite quarterly timing variances. Moving forward, they see no issues continuing at these margin levels.  **[MLR_3408344_6]** 

2. **SG&A Leverage Potential**  
   **Q:** Can SG&A be leveraged below 6.5% in 2025?  
   **A:** The company is aiming to control costs, but new global compliance and regulations are adding expenses as quickly as they manage others. They hope to gain some leverage, but the additional regulatory costs are largely beyond their control, making it difficult to reduce SG&A below the **6.5%** goal level.  **[MLR_3408344_7]** 

3. **Post-Election Orders and Dealer Throughput**  
   **Q:** Are orders flowing post-election; can dealer throughput improve?  
   **A:** Post-election sentiment has increased significantly, with multiple deals previously on hold now completed. Although not yet reflected in order intake rates, they believe consumer confidence will improve. Dealers are expanding facilities and outsourcing integration to resolve throughput capacity issues, expecting to catch up in the next quarter or two.  **[MLR_3408344_5]** 

fae7e9b3492fd731c1738fb8abfd93fb34e3be2d8ad88a8c71d29015245cb2a2

- **Potential capacity constraints**: Miller Industries is maximizing their current facility space and adjusting manufacturing processes to increase production levels, indicating they may be approaching capacity limits.  **[MLR_3388000_5]**
- **Future capital expenditures may impact financials**: The company is closely monitoring the need for potential expansions or capital allocations in the future as they look past **2024**, which could lead to significant expenses.  **[MLR_3388000_5]**
- **Reliance on OEM chassis supply**: Despite receiving chassis shipments at **record levels** in the first quarter as OEMs caught up on **2023** delays, future disruptions in chassis supply from OEMs could negatively affect production.  **[MLR_3388000_3]**

41b11aa966945d67c333455ff16e27ee19903b879702a1f40df6185d0141c808

- The company's **inventory levels have peaked**, and while they intend to pay down debt once inventories decrease, it's uncertain when this will happen, potentially tying up capital and affecting liquidity.  **[MLR_3365915_6]**
- **Chassis suppliers experienced significant disruptions in Q3**, which may continue to impact the company's ability to meet customer demands and deliveries, despite expectations of improvement.  **[MLR_3365915_7]**
- The company plans to maintain a **consistent SG&A run rate**, with no significant increases in **selling or R&D expenses**, which could limit future growth and competitiveness.  **[MLR_3365915_8]**

a63f65ecce925496faf8b380b79fe3d87934fd3e348e5819cf3b14bbd1cd77f7

- **Record chassis shipments and easing supply constraints**: William Miller reported that chassis shipments were at record levels in the first quarter of 2024, indicating that OEMs are catching up on chassis delays from 2023. The company now has no issues receiving chassis across product lines **4 through 8** from various OEMs.  **[MLR_3388000_3]**  This improvement in supply chain conditions enables the company to meet strong demand and supports revenue growth.
- **Strong demand and optimization of production capacity**: The company is experiencing strong demand for its carrier products and is adjusting its manufacturing processes to increase production levels. They are focusing on optimizing efficiencies and throughput in their facilities, particularly at the Ooltewah location, to **maximize output**.  **[MLR_3388000_5]**  This proactive approach positions the company to capitalize on market opportunities and meet customer demand effectively.
- **Successful supply chain diversification and in-sourcing efforts**: The company's efforts to broaden its supply chain base and increase in-sourcing since 2021 are paying off. William Miller stated that, aside from minor shortages, the supply chain base for all products is **extremely strong**.  **[MLR_3388000_4]**  This operational resilience reduces dependency on external factors and can lead to improved margins and operational efficiency.

ddf90dbc422c6082fb0108571cb571fc51e62a3ed9b79ad3357995dd974d2486

1. **Truck Chassis Supply**  
   **Q:** Update on truck chassis supply for Class 4–8?  
   **A:** Management reported that **chassis shipments were at record levels** in the first quarter.  **[MLR_3388000_3]**  OEMs are catching up on chassis delays from 2023, and they currently have **no issues across product lines 4 through 8** in receiving chassis from various OEMs.  **[MLR_3388000_3]** 

2. **Overall Supply Chain Health**  
   **Q:** Any supply chain issues outside of truck chassis?  
   **A:** Management indicated that their efforts to broaden the supply chain base and in-sourcing post-COVID have paid off generously.  **[MLR_3388000_4]**  Apart from minor daily shortages, the **supply chain base for all products is extremely strong**.  **[MLR_3388000_4]** 

3. **Capacity Expansion Plans**  
   **Q:** Any projects to enhance capacity or plans for expansion?  
   **A:** They are making adjustments in carrier manufacturing processes, shifting products between facilities to **increase carrier production levels**.  **[MLR_3388000_5]**  They are working on efficiencies and throughput at the Ooltewah facility and maximizing current square footage.  **[MLR_3388000_5]**  They are **monitoring closely the needs for potential expansions or capital allocations in the future beyond 2024**.  **[MLR_3388000_5]** 

4. **Manufacturing Flexibility**  
   **Q:** Can heavy-duty products be built outside Ooltewah?  
   **A:** The Pennsylvania facility is dedicated strictly to car carrier production due to its layout and equipment.  **[MLR_3388000_6]**  They have some flexibility at the Greenville facility, but due to **strong demand for carrier products**, they plan to keep it dedicated to carrier production and focus on maximizing output at Ooltewah.  **[MLR_3388000_6]** 

52c93d9f377941daa89407766cf9722ab405f681b43c313dc272dce7cdeece10

- **Inventory Levels Peaking and Debt Reduction Expected**: The company indicates that inventory levels are **reaching their peak**, and once this happens, they intend to **pay down the debt**, which is **certainly a priority**. This suggests an upcoming improvement in the balance sheet and potential for enhanced financial stability.  **[MLR_3365915_6]**
- **Continued Strong Production Supported by Chassis Supply**: Despite previous challenges with chassis deliveries, the company believes they have **enough chassis on the ground** to maintain production levels seen this year and expects **better deliveries** from chassis OEMs in **Q4 going into Q1 of next year and into Q2**. This supports sustained or increased production capacity moving forward.  **[MLR_3365915_7]**
- **Potential for Increased Shareholder Returns**: The company mentions that decisions regarding the dividend are made quarterly by the Board, and after reducing debt to essentially zero, there is potential to **raise the dividend over time**. This indicates possible enhanced returns to shareholders in the future.  **[MLR_3365915_6]**

8b7b668d2f9631a5d84e3c4515ffb758a909f9ffb3caa2ddd696f6853711720c

Miller Industries Inc (MLR)

Financials