Chattanooga-based tow truck maker hauls in more sales but profit margins slip
Miller Industries Inc. hauled in 11.2% more in revenues during the second quarter than the company did a year ago, but the Chattanooga-based tow truck maker reported a 42.1% drop in net income in the period due to inflationary and supply chain challenges that helped cut profit margins during the period. Miller said Wednesday it earned £3.8 million, or 33 cents per share, on net sales of £201.5 million in the three months ended June 30. In the same period a year ago, the company earned £6.5 million, or 57 cents per share, on sales of £181.2 million.
"Supply chain issues persisted during the quarter, however, despite this, we were pleased with our ability to improve profitability as we navigate these challenging times," William G. Miller, II, chief executive of Miller Industries, said in an earnings report issued after the market closed on Wednesday. "We continued to experience issues securing certain parts, which impacted the amount of finished goods we could deliver and our overall revenue growth. That said, the price increases we enacted through the first and second quarters of 2022 have begun to take effect and, as a result, profitability improved sequentially in the quarter, despite a slightly unfavorable product mix that impacted our consolidated gross margin."
Miller said the company's backlog of orders grew during the second quarter and "we continue to be extremely encouraged with the demand for our products." "We have yet to see any significant slowdown in demand, despite the ongoing conflict in Ukraine," Miller said. "While the consequences of the war between Russia and Ukraine, and its ultimate effect on our business, are difficult to predict, we are encouraged by initial demand signals and the fact that the conflict has had limited impact on our European operations thus far." Miller Industries also announced that its board has declared a quarterly cash dividend of 18 cents per share, payable September 12, 2022, to shareholders of record at the close of business on September 5, 2022.
This will be the 47th consecutive quarter that the company has paid a dividend.
Contact Dave Flessner at [email protected] or at 423-757-6340.
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