Miller Industries, Inc. Q4 Earnings Reported
15 July 1998
Miller Industries, Inc. Fourth Quarter Earnings In Line With Consensus Analysts' Estimates
ATLANTA, July 15 -- Miller Industries, Inc. today
announced it achieved record sales for the fourth quarter and fiscal year
ended April 30, 1998.
Net sales for the fourth quarter increased 45% to $111.9 million from
$77.1 million for the same quarter in 1997. Net income for the quarter
decreased 26% to $3.2 million, or $0.07 per common share, in line with
consensus analysts' estimates, as compared with net income of $4.3 million, or
$0.10 per common share for the same period last year.
The increase in net sales was attributable primarily to sales from
businesses acquired since the fourth quarter of fiscal 1997. The lower income
for the fourth quarter is the result of the softness in demand for its
products and services due in part to the unusually mild winter weather
throughout most of the United States accompanied by increased price
competition for its towing equipment. In addition, the Company also
experienced cost increases at its towing services division, RoadOne, which
were the result of planned increases of corporate overhead to support business
expansion. The Company affirmed that it will continue to devote resources to
develop the infrastructure and core systems to achieve RoadOne's mission to be
a national towing service provider.
Net sales for the fiscal year ended April 30, 1998 rose 36% to a record
$397.2 million as compared with $292.4 million for the year ended April 30,
1997. For the 1998 fiscal year, net income increased 4% to $15.2 million or
$0.33 per diluted share, excluding a one-time restructuring charge related to
the consolidation of the Company's Olive Branch manufacturing facility into
its Ooltewah and Greeneville, Tennessee facilities, from $14.5 million for
fiscal 1997.
Jeffrey I. Badgley, President & CEO, said, "I am proud of the
accomplishments Miller Industries has made in fiscal 1998 to further position
our company as the leader in both the equipment and service segments of the
towing and recovery industry. In our towing and recovery equipment division,
which includes manufacturing, distribution, and finance, we completed this
past year a facility consolidation and the acquisition of Chevron which
position us to enhance efficiencies and profitability. We also plan to
introduce new products complementary to the towing service industry to
leverage our strong brands."
Badgley, continuing: "In addition to completing 47 acquisitions in fiscal
1998, RoadOne made major strides in building the infrastructure and systems to
monitor and enhance the performance levels of each of those acquisitions. We
have also invested heavily in the development of an infrastructure to support
a nation-wide towing service, which will begin offering national services to
commercial accounts in fiscal 1999. We are extremely excited about RoadOne's
reception by its customers, affiliates and towing company professionals."
Miller Industries also reported that it completed acquisitions subsequent
to the fourth quarter with aggregate historical revenues of $12 million.
These acquisitions bring the total number of acquired towing service companies
to 87 with historical annual revenues of over $155 million. Acquisitions in
the first quarter-to-date of fiscal 1999 include the first transactions in
Phoenix, Denver and Sacramento. RoadOne now has operations in 49 of the top
209 cities in the United States. Miller Industries also said that it has an
additional 21 companies that have signed letters of intent representing an
additional $20 million in incremental annual revenue. In addition, RoadOne's
affiliate program has reached an important milestone as the program now
includes over 1,000 towing service companies operating approximately
7,300 vehicles. The Company continues to add benefits to its affiliates and
will soon launch a program that will offer cost savings on fuel purchases for
its affiliates.
Miller Industries is a leading integrated provider of vehicle towing and
recovery equipment and services. The Company markets its towing services
under the national brand name RoadOne(TM) and its towing equipment under a
number of well-recognized brands.
Except for historical information contained herein, the matters set forth
in this news release are forward-looking statements. The Company noted that
the forward-looking statements set forth above involve a number of risks and
uncertainties that could cause actual results to differ materially from any
such statement, including the risks and uncertainties discussed in the
Company's Prospectus dated November 6, 1996, under the caption "Risk Factors,"
which discussion is incorporated herein by this reference.
MILLER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
Three Months Ended Twelve Months Ended
April 30 April 30
% %
1998 1997 Change 1998 1997 Change
NET SALES $111,913 $ 77,109 +45% $397,213 $292,394 +36%
COSTS AND EXPENSES:
COST OF
OPERATIONS 89,216 60,140 +48% 319,453 238,625 +34%
SELLING, GENERAL
AND ADMINISTRATIVE
EXPENSES 15,578 9,745 +60% 49,420 30,192 +64%
RESTRUCTURING
COSTS 0 0 N/M 4,100 0 N/M
INTEREST EXPENSE,
net 1,719 310 455% 3,389 620 447%
TOTAL COSTS AND
EXPENSES 106,513 70,195 +52% 376,362 269,437 +40%
INCOME BEFORE
INCOME TAXES 5,400 6,914 -22% 20,851 22,957 - 9%
PROVISION FOR
INCOME TAXES 2,201 2,618 -16% 8,186 8,436 - 3%
NET INCOME $ 3,199 $ 4,296 -26% $ 12,665 $ 14,521 -13%
BASIC NET INCOME
PER COMMON
SHARE (A) $ 0.07 $ 0.10 -30% $ 0.28 $ 0.37 -24%
WEIGHTED AVERAGE
NUMBER OF
COMMON SHARES
OUTSTANDING 45,648 41,650 +10% 44,559 39,565 +13%
DILUTED NET INCOME
PER COMMON
SHARE (A) $ 0.07 $ 0.10 -30% $ 0.27 $ 0.35 -23%
WEIGHTED AVERAGE
NUMBER OF
COMMON & COMMON
EQUIVALENT SHARES
OUTSTANDING 46,822 43,404 + 8% 46,201 41,454 +11%
(A) Basic net income per common share and diluted net income per common
share before the restructuring charge for the year ended April 30,
1998 was $0.34 and $0.33, respectively.
SUPPLEMENTAL SEGMENT DATA
(IN THOUSANDS)
Three Months Ended
April 30
1998 1997
REVENUE:
TOWING & RECOVERY EQUIPMENT 75,396 67% 63,380 82%
TOWING SERVICES 36,517 33% 13,729 18%
$ 111,913 100% $ 77,109 100%
OPERATING INCOME:
TOWING & RECOVERY EQUIPMENT 5,937 83% 6,128 85%
TOWING SERVICES 1,182 17% 1,096 15%
$ 7,119 100% $ 7,224 100%
Twelve Months Ended
April 30
1998 1997
REVENUE:
TOWING & RECOVERY EQUIPMENT 282,241 71% 254,977 87%
TOWING SERVICES 114,972 29% 37,417 13%
$ 397,213 100% $ 292,394 100%
OPERATING INCOME:
TOWING & RECOVERY EQUIPMENT 19,073 79% 21,201 90%
TOWING SERVICES 5,167 21% 2,376 10%
$ 24,240 100% $ 23,577 100%