Miller Industries Earned $1.05 per Share

Better late than never. After the closing bell, Miller Industries (MLR) became our final Q4 earnings report. For the fourth quarter, net sales fell 12.2% to 178.3 million, but net income increased by two cents to $1.05 per share. That’s better than I had been expecting. Miller isn’t followed by any analysts.

This was a very tough year for Miller but Q4 wasn’t nearly as bad as previous quarters. For the year, Miller made $2.62 per share which was a big drop from $3.43 per share in 2019. Net sales fell 20.4% to $651.3 million.

Jeffrey I. Badgley, Co-Chief Executive Officer of the Company stated, “During the fourth quarter of 2020, we experienced steady improvement and I am encouraged by the underlying strength of our business and the resilience of our customer demand despite the ongoing impact of the COVID-19 pandemic.”

Mr. Badgley continued, “While we were encouraged to finish the year with such strong operating results, the start to the first quarter of 2021 has not been without its challenges. As we discussed in greater detail in our Form 10-K filing, in the first half of the first quarter of 2021, we experienced significant delays in deliveries to our distributors caused by changes we made to our legacy business processes during the implementation of our new enterprise software system. During the same period, we also experienced significant supply chain disruptions due primarily to continued impacts from COVID-19, and extreme weather conditions across parts of the U.S. and tightening availability of freight trucks caused delays in delivering products to our facilities as well as to our customers. These factors caused substantial downward pressures on our revenues, margins and earnings during the first half of the first quarter of 2021. The business process improvements critical to developing our new software system are now essentially operational, allowing our delivery schedule to return to meeting current customer demand. The supply chain issues have now been greatly reduced but could recur. Based on our strong backlog and the current status of our process improvements, we believe we have the opportunity to substantially improve our operating results in 2021 beyond the first quarter.

Overall, I am extremely proud of our employees’ continued commitment to providing industry leading customer service and I am confident that we will continue to capitalize on all future growth opportunities despite the headwinds we experienced in the first quarter of 2021.”

Posted by on March 3rd, 2021 at 4:39 pm


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