Chattanooga

Aug 22, 2023

Miller Industries Inc. boosted its profits nearly four-fold in the second quarter compared with a year ago as the Chattanooga-based tow-truck manufacturer hauled in 49% higher revenues in the three-month period ended June 30.

Miller reported Wednesday that it earned $14.9 million, or $1.29 per share, on record-high quarterly sales of $300.3 million in the three months ended June 30. A year earlier, the company had net income of $3.8 million, or 33 cents per share, on sales of $201.5 million.

Bolstered by its acquisition of Southern Hydraulic Cylinder in Athens, Tennessee, in May, Miller Industries projects it will continue to boost profits, with sales topping $1 billion for all of 2023.

The strong second-quarter earnings demonstrate "the robust, profitable growth that our business is capable of," William G. Miller, the president and CEO of Miller Industries, said.

"Our topline strength reflects improved delivery of finished goods, as our team and our distributors have continued to adapt to the current supply chain environment," Miller said in the company's earnings release.

Profit margins have improved with price increases adopted in response to higher supply expenses, the CEO said.

"We are seeing continued benefits from the productivity initiatives and pricing adjustments to offset inflationary pressures and are optimistic about what this means for our profitability moving forward," Miller told analysts during an earning call Thursday.

Miller is "comfortable in our ability to achieve the financial targets we set earlier this year — generating over $1 billion of revenue, with significant improvements in year-over-year profitability," he said.

The company also announced its board of directors has declared a quarterly cash dividend of $18 cents, payable Sept. 11, to shareholders of record at the close of business on Sept. 1. Miller has paid a dividend now for 51 consecutive quarters.

— Compiled by Dave Flessner