Miller Industries Reports 2008 Third Quarter Results
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CHATTANOOGA, Tenn., November 5, 2008: Miller Industries, Inc. (the "Company") today announced financial results for the third quarter ended September 30, 2008.
For the third quarter of 2008, net sales were $66.7 million, compared to $92.7 million in the third quarter of 2007. Net income in the third quarter of 2008 was $917,000, or $0.08 per diluted share, compared to net income of $3.6 million, or $0.31 per diluted share, in the prior year.
Gross profit for the third quarter of 2008 was $8.1 million, or 12.2% of net sales, compared to $13.1 million, or 14.1% of net sales, in the third quarter of 2007.
For the third quarter of 2008, selling, general and administrative expenses were $6.4 million versus $6.5 million in the prior year period. The Company reported operating income (earnings before interest and taxes) of $1.7 million for the third quarter of 2008, compared to $6.6 million for the third quarter of 2007.
Interest expense in the third quarter of 2008 decreased to $254,000 from $1.0 million in the third quarter of 2007, primarily due to lower debt levels and lower interest rates. Total senior and junior debt at September 30, 2008 was approximately $2.5 million, down from $3.5 million at December 31, 2007, and $3.9 million at September 30, 2007.
For the nine-month period ended September 30, 2008, net sales were $209.1 million, compared to $315.5 million in the prior year period. The Company reported net income of $2.9 million, or $0.25 per diluted share, for the first nine months of 2008, compared to net income for the first nine months of 2007 of $13.9 million, or $1.19 per diluted share.
Jeffrey I. Badgley, President and Co-CEO of the Company, stated, "During the third quarter we continued to keep production costs aligned with sales levels. Our performance was driven last quarter by continued good performance in the government and international marketplace, both of which served to somewhat offset lower demand from our core customers resulting from the impact of the current economic crisis on their purchasing decisions. Sales declined from second quarter levels and gross margins strengthened sequentially largely due to shifts in business mix."
Mr. Badgley added, "The overall economic conditions negatively affected demand for our products for the first three quarters of 2008. Similar to other manufacturers, our order intake was further reduced in October by the financial crisis that unfolded in late September. In light of this, we will continue to adjust our production levels as needed to match demand for our products. We believe that our strong balance sheet puts us in a good position to weather the current economic crisis. However, we are unable to predict the severity or length of the current economic conditions or their impact on our customers. Given the current economic conditions combined with the recent strengthening of the U.S. dollar and its impact on our foreign operations, we expect fourth quarter revenue to be somewhat lower than third quarter levels."
Mr. Badgley concluded, "The current economy has made the marketplace extremely price competitive. In the face of these price pressures, we remain committed to provide the industry's most innovative and highest quality products while taking whatever steps necessary to maintain our market leadership. Although we cannot predict the timing of a return to normal business conditions, we believe we are in a better position to weather today's challenges and take advantage of the eventual upturn in our markets."
In conjunction with this release, the Company will host a conference call, which will be simultaneously broadcast live over the Internet. Management will host the call, which is scheduled for tomorrow, November 6, 2008, at 10:00 AM ET. Listeners can access the conference call live and archived over the Internet through a link at: VIDEONEWSWIRE
Please allow 15 minutes prior to the call to visit the site, download, and install any necessary audio software. A replay of this call will be available approximately one hour after the live call ends through November 13, 2008. The replay number is (877) 344-7529, Passcode 421744.