Miller Industries (MLR) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased 23.7% year-over-year to $371.5 million, driven by strong customer demand, increased production, and elevated OEM chassis deliveries.

• Net income for Q2 2024 rose 37.5% year-over-year to $20.5 million, or $1.78 per diluted share, reflecting improved gross margins and operational efficiency.

• Gross profit improved to $51.1 million (13.8% margin), a 27.9% increase year-over-year, with margin gains from pricing and productivity.

• International sales represent about 10% of total, with robust demand and stable backlog; production is increasing internationally.

• Management highlighted a record first half and expects to maintain strong production to reduce backlog and improve lead times.

Financial highlights

• Q2 2024 revenue was $371.5 million (+23.7% YoY); six-month sales reached $721.3 million (+23.8% YoY).

• Gross profit for Q2 2024 was $51.1 million (+27.9% YoY); gross margin improved to 13.8%.

• Net income for Q2 2024 was $20.5 million (+37.5% YoY); diluted EPS was $1.78 (+37.7% YoY).

• SG&A expenses were $22.8 million (6.1% of sales), up 16.9% year-over-year but 40 basis points lower as a percentage of sales.

• Interest expense increased to $2 million, mainly due to higher debt levels for working capital.

Outlook and guidance

• Revenue guidance for 2024 raised from high single-digit to low double-digit growth, aligning with historical CAGR.

• Margins expected to remain in the mid- to upper-13% range for the remainder of 2024.

• Management expects continued operating improvement but notes potential headwinds from supply chain constraints, inflation, geopolitical factors, and economic uncertainty.

• Fourth quarter typically lower due to holidays, inventory audits, and maintenance.

• Focus remains on shifting product from distributors to end users to enhance cash conversion.