Miller Industries Inc (MLR) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Miller Industries second-quarter 2024 earnings conference call. Please note this event is being recorded. And now at this time, I would like to turn the call over to Mike Gaudreau at FTI Consulting. Please go ahead, sir.

女士們、先生們，美好的一天，歡迎參加米勒工業 2024 年第二季財報電話會議。請注意此事件正在被記錄。現在這個時候，我想把電話轉給 FTI Consulting 的 Mike Gaudreau。請繼續，先生。

Thank you and good morning, everyone. I would like to welcome you to the Miller Industries conference call. We are here to discuss the company's 2024 second-quarter results which were released after the close of the market yesterday.

謝謝大家，早安。歡迎您參加米勒工業公司的電話會議。我們在這裡討論該公司昨天收盤後發布的 2024 年第二季業績。

With us from the management team today are Bill Miller, Chairman of the Board; Will Miller, President and CEO; Debbie Whitmire, Executive Vice President and CFO; and Frank Madonia, Executive Vice President, Secretary and General Counsel.

今天與我們一起參加管理團隊的有董事會主席比爾·米勒 (Bill Miller)；威爾·米勒，總裁兼執行長； Debbie Whitmire，執行副總裁兼財務長；以及執行副總裁、秘書兼總法律顧問 Frank Madonia。

Today's call will begin with formal remarks from management followed by a question-and-answer session. Please note in this morning's conference call, management may make forward-looking statements in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

今天的電話會議將以管理層的正式演講開始，然後是問答環節。請注意，在今天早上的電話會議中，管理階層可能會根據 1995 年《私人證券訴訟改革法案》的安全港條款做出前瞻性聲明。

I'd like to call your attention to the risks related to these statements which are more fully described in the company's annual report filed on Form 10-K and other filings with the Securities and Exchange Commission. At this time, I'd like to turn the call over to Will. Please go ahead Will.

我想提請您注意與這些聲明相關的風險，這些風險在公司以 10-K 表格形式提交的年度報告以及向美國證券交易委員會提交的其他文件中進行了更全面的描述。這時，我想把電話轉給威爾。請繼續，威爾。

Thank you, and good morning, everyone. We are very pleased to report yet another strong quarter with record results. The year-over-year growth was predominantly due to consistent demand from customers, increased production volume, and elevated OEM chassis deliveries in the quarter.

謝謝大家，大家早安。我們很高興地報告又一個強勁的季度，並取得了創紀錄的業績。年比成長主要是由於本季客戶需求的持續成長、產量的增加以及 OEM 底盤交付量的增加。

As a result, we generated revenues of $371.5 million increasing 23.7% year over year. Gross profit for the second quarter was $51.1 million, an increase of 27.9% compared to the prior year quarter, while our gross margin of 13.8% improved 50 basis points year over year and 120 basis points sequentially.

結果，我們實現了 3.715 億美元的收入，年增 23.7%。第二季毛利為 5,110 萬美元，比去年同期成長 27.9%，毛利率為 13.8%，年增 50 個基點，較上季提高 120 個基點。

Gross margins expanded due to benefits from productivity initiatives and manufacturing efficiencies. We continue to maintain production levels to decrease our backlog to historical levels, allowing us to meet future customer expectations.

由於生產力計劃和製造效率的提高，毛利率有所擴大。我們繼續保持生產水平，將積壓訂單減少到歷史水平，從而滿足未來客戶的期望。

While we anticipate the chassis deliveries will normalize during the second half of the year, in our international business, which accounts for approximately 10% of our total sales, we are encouraged by the strong levels of customer demand we continue to see.

雖然我們預計底盤交付量將在今年下半年恢復正常，但在占我們總銷售額約 10% 的國際業務中，我們對持續看到的強勁客戶需求感到鼓舞。

Our order intake remains robust, while our backlog is stable. We continue to increase production internationally and anticipate additional upside if and when geopolitical tensions in Europe begin to subside.

我們的訂單量仍然強勁，而我們的積壓訂單也穩定。我們將繼續增加國際產量，並預計，如果歐洲地緣政治緊張局勢開始消退，產量將會進一步上漲。

As we enter the second half of the year, we are focused on assisting distribution and delivering retail product to ensure that the revenue we generate translates into cash, which will fund our continued growth and enhance the strength of our balance sheet.

進入下半年，我們的重點是協助分銷和交付零售產品，以確保我們產生的收入轉化為現金，這將為我們的持續成長提供資金並增強我們的資產負債表實力。

Lastly, before I turn the call over to Debbie, I want to touch on the production capacity expansion plans we mentioned last quarter. We continue to analyze future production needs at all of our facilities around the globe and work diligently to invest our capital to maximize shareholder returns through continued investment in the business, quarterly dividends, and our share repurchase program.

最後，在我把電話轉給黛比之前，我想談談我們上個季度提到的產能擴張計畫。我們繼續分析全球所有工廠的未來生產需求，並努力投資我們的資本，透過持續投資業務、季度股息和股票回購計劃，實現股東回報最大化。

Now I'll turn the call over to Debbie who will review the second-quarter financial results in more detail. Following her remarks, I will provide some closing comments and an update on our outlook. Debbie?

現在我將把電話轉給黛比，她將更詳細地審查第二季的財務表現。在她發表演說後，我將提供一些總結評論和我們的最新展望。黛比？

Thanks, Will and good morning, everyone. Net sales for the second quarter 2024 were $371.5 million versus $300.3 million for the second quarter of 2023, a 23.7% year-over-year increase driven by increases in both production and deliveries.

謝謝威爾，大家早安。2024 年第二季的淨銷售額為 3.715 億美元，而 2023 年第二季的淨銷售額為 3.003 億美元，在產量和交付量成長的推動下，年增 23.7%。

Cost of operations increased 23.1% to $320.4 million for the second quarter of 2024 compared to $260.3 million for the second quarter 2023. The increase in our cost of operations is due largely to our higher revenue levels. Cost of operations as a percentage of net sales decreased approximately 50 basis points from the prior year period to 86.2%.

2024 年第二季營運成本成長 23.1%，達到 3.204 億美元，而 2023 年第二季營運成本為 2.603 億美元。我們營運成本的增加主要是由於我們收入水準的提高。營運成本佔淨銷售額的百分比較上年同期下降約 50 個基點至 86.2%。

Gross profit was $51.1 million or 13.8% of net sales for the second quarter of 2024 compared to $39.9 million or 13.3% of net sales for the prior year period. The year-over-year improvement was driven largely by volume increases across both production and deliveries.

2024 年第二季毛利為 5,110 萬美元，佔淨銷售額的 13.8%，而去年同期毛利為 3,990 萬美元，佔淨銷售額的 13.3%。同比改善主要是由產量和交付量的增加所推動的。

Sequentially, gross margin improved 120 basis points largely driven by the same volume increases and to a lesser extent sales mix. As a reminder, our gross margins are subject to some quarter-to-quarter fluctuations based on mix. However, in a quarter like this one where we saw increased OEM chassis deliveries, we were glad to see an increase in gross margin as a direct result of our cost control efforts.

隨後，毛利率提高了 120 個基點，這主要是由於銷量成長以及較小程度的銷售組合所致。提醒一下，我們的毛利率會因為產品組合而出現一些季度波動。然而，在像本季這樣的季度中，我們看到 OEM 底盤交付量增加，我們很高興看到毛利率的增加是我們成本控制努力的直接結果。

SG&A expenses were $22.8 million in the second quarter of 2024, compared to $19.5 million in the second quarter 2023. As a percentage of net sales, SG&A was 6.1%, 40 basis points lower than the prior year period. This figure falls within our consistently expected SG&A as a percentage of sales range of 6% to 6.5%.

2024 年第二季的銷售管理及行政費用為 2,280 萬美元，而 2023 年第二季為 1,950 萬美元。SG&A 佔淨銷售額的百分比為 6.1%，比上年同期下降 40 個基點。這一數字符合我們一貫預期的 SG&A 佔銷售額的百分比範圍 6% 至 6.5%。

Interest expense for the second quarter of 2024 was $2 million, up from $1.7 million for the second quarter of 2023, primarily related to an increase in our debt levels to fund our working capital. Additionally, interest experience was impacted by our distributor floor plan financing costs, which shift up and down with revenue.

2024 年第二季的利息支出為 200 萬美元，高於 2023 年第二季的 170 萬美元，主要與我們為營運資金提供資金的債務水準增加有關。此外，利息體驗也受到我們的經銷商平面圖融資成本的影響，該成本隨著收入的變化而上下波動。

Other income for the second quarter was $13,000, compared to an expense of $229,000 for the second quarter 2023, attributable largely to currency exchange rate fluctuations. Our effective tax rate for the quarter was 21.8% and slightly higher year over year, primarily due to unfavorable adjustments to pre-tax income. Net income for the second quarter 2024 was $20.5 million, or $1.78 per diluted share compared to net income of $14.9 million, or $1.29 per diluted share in the second quarter of 2023.

第二季的其他收入為 13,000 美元，而 2023 年第二季的支出為 229,000 美元，主要歸因於貨幣匯率波動。本季我們的有效稅率為 21.8%，年比略高，主要是由於稅前收入的不利調整。2024 年第二季的淨利潤為 2,050 萬美元，即稀釋後每股收益 1.78 美元，而 2023 年第二季淨利為 1,490 萬美元，即稀釋後每股收益 1.29 美元。

Turning to the balance sheet. Cash and cash equivalents as of June 30, 2024, was $23.8 million, compared to $26.8 million as of March 31, 2024, and $29.9 million as of December 31, 2023. Accounts receivable as of June 30, 2024, was $391.8 million compared to $338.9 million as of March 31, 2024, and $286.1 million as of December 31, 2023.

轉向資產負債表。截至2024年6月30日，現金及現金等價物為2,380萬美元，而截至2024年3月31日為2,680萬美元，截至2023年12月31日為2,990萬美元。截至2024年6月30日的應收帳款為3.918億美元，而截至2024年3月31日的應收帳款為3.389億美元，截至2023年12月31日的應收帳款為2.861億美元。

As Will noted, a key focus of ours is ensuring that dealers pass along product to our end users and collecting our receivables to improve our cash conversion, which we anticipate to improve significantly in the second half of 2024.

正如威爾所指出的那樣，我們的一個重點是確保經銷商將產品傳遞給我們的最終用戶並收取我們的應收帳款以改善我們的現金轉換，我們預計這將在2024 年下半年顯著改善。

Inventories were $187.3 million as of June 30, 2024, compared to $184.3 million as of March 31, 2024, and $189.8 million as of December 31, 2023. Our inventory levels have remained relatively consistent, and we will keep investing in our inventory as appropriate to ensure we have essential products readily available to turn work-in-process inventory into finished goods and finally to our customers as quickly as possible. Accounts payable as of June 30, 2024, were $243.1 million compared to $229 million as of March 31, 2024 and $191.8 million as of December 31, 2023.

截至2024年6月30日，庫存為1.873億美元，而截至2024年3月31日的庫存為1.843億美元，截至2023年12月31日的庫存為1.898億美元。我們的庫存水準保持相對穩定，我們將繼續適當投資庫存，以確保我們擁有隨時可用的重要產品，將在製品庫存轉化為成品，並最終盡快交付給我們的客戶。截至2024年6月30日的應付帳款為2.431億美元，而截至2024年3月31日的應付帳款為2.29億美元，截至2023年12月31日的應付帳款為1.918億美元。

As it relates to capital allocation, in addition to returning capital to our shareholders, we remain focused on investing in three core areas of the business; productivity improvements, capacity expansion and the health and safety of our employees. Will mentioned that the capacity expansion is where the bulk of our efforts will be focused in the near to mid-term. And while we are still in the early stages, we look forward to sharing further updates on our efforts as appropriate.

由於涉及資本配置，除了向股東返還資本外，我們仍然專注於投資三個核心業務領域；提高生產力、擴大產能、員工的健康與安全。威爾提到，產能擴張是我們中短期內的主要工作重點。雖然我們仍處於早期階段，但我們期待在適當的時候分享我們努力的進一步更新。

During the quarter, we borrowed an additional $15 million against our revolver in order to continue to fund our growth. As you all know, we are a debt-averse company, but believe that the best use of cash is investing in the future and then the growth of our business.

本季度，我們以左輪手槍為抵押額外借入了 1500 萬美元，以繼續為我們的成長提供資金。眾所周知，我們是一家規避債務的公司，但相信現金的最佳用途是投資未來，然後投資於我們業務的成長。

Lastly, as it relates to returns of capital to our shareholders, the Board of Directors approved our quarterly cash dividend of $0.19 per share, payable September 16, 2024, and to shareholders of record at the close of business on September 9, 2024, marking the 55th consecutive quarter that the company has paid a dividend.

最後，由於涉及股東資本回報，董事會批准了每股 0.19 美元的季度現金股息，將於 2024 年 9 月 16 日支付，並於 2024 年 9 月 9 日營業結束時支付給在冊股東，這標誌著該公司連續第55 個季度支付股利。

We also brought back 35,000 shares, representing $2 million of the outstanding $25 million share repurchase program our board authorized in April of this year. Now, I'll turn the call back over to Will for some closing remarks.

我們還回購了 35,000 股股票，相當於董事會今年 4 月批准的未完成的 2,500 萬美元股票回購計劃中的 200 萬美元。現在，我將把電話轉回給威爾，讓他發表一些結束語。

Thank you, Debbie. Another record first half of the year has clearly demonstrated the continued success of our operations and markets. As we ended fiscal year 2023 with record revenue, we anticipated high single-digit growth for 2024.

謝謝你，黛比。今年上半年再創新高，清楚地表明了我們的營運和市場的持續成功。由於我們以創紀錄的收入結束了 2023 財年，我們預計 2024 年將實現高個位數成長。

Given the performance to date, we are now adjusting our initial revenue guidance of high single-digit growth for the year. We expect to achieve low double-digit growth for the full year of 2024, in line with our historical compounded annual growth rate.

鑑於迄今為止的業績，我們現在正在調整今年高個位數成長的初始收入指引。我們預計 2024 年全年將實現兩位數的低成長，與我們歷史複合年增長率一致。

As a reminder to all investors, our fourth quarter is historically a lower revenue quarter due to holidays, annual inventory audits, and planned maintenance at our facilities. Our backlog and current trends provide us with visibility into a solid second half of 2024.

提醒所有投資者，由於假期、年度庫存審計和設施的計劃維護，我們的第四季度歷來是收入較低的季度。我們的積壓訂單和當前趨勢讓我們能夠預見 2024 年下半年的強勁表現。

As always, the entire management team and I would like to thank all of our employees, suppliers, customers and shareholders for their continued support of Miller Industries. At this time, we'd like to open the line for any questions.

像往常一樣，我和整個管理團隊要感謝所有員工、供應商、客戶和股東對米勒產業的持續支持。此時，如果有任何問題，我們願意開通熱線。

(Operator Instructions) Mike Shlisky, DA Davidson.

（操作員說明）Mike Shlisky，DA Davidson。

Yes, hi, good morning. I wanted to ask about -- I know if you raised your outlook for the revenues for the year. I was wondering if you can give us some thoughts about margins for the rest of the year.

是的，嗨，早安。我想問的是——我知道您是否提高了對今年收入的預期。我想知道您能否給我們一些關於今年剩餘時間利潤率的想法。

I know you want to give actual pinpoint guidance, but given the increased cash supply potential for pricing, I would imagine some improved supply chain. Do you think you can get more of a larger year-over-year expansion in margin in the back half than you've been seeing from the last couple of quarters?

我知道您想提供實際的精確指導，但考慮到定價方面現金供應潛力的增加，我想對供應鏈進行一些改進。您認為下半年的利潤率較去年同期擴張是否會比過去幾季更大？

Yes. I think I call it Mike, you're a little broken up. But no, we believe that as we continue through the remainder of the year that margins will maintain. And we expect that our margins for the year 2024 will be in the mid-upper-13 range.

是的。我想我叫它麥克，你有點崩潰了。但事實並非如此，我們相信，隨著今年剩餘時間的持續，利潤率將保持不變。我們預計 2024 年的利潤率將在 13 歲以上的範圍內。

Great. Outstanding. And then as far as maybe some longer term outlook here, there's been some emissions changes that are taking place in 2027 on the larger end of the engine spectrum. We're starting to hear about people who use larger trucks for their vehicles in the Class A for example. And some of our heavier carriers try to buy ahead in advance of price increases from the OEMs in 2027.

偉大的。傑出的。就長期前景而言，2027 年較大範圍的引擎將發生一些排放變化。例如，我們開始聽說有人在 A 級車輛中使用較大的卡車。我們的一些大型業者試圖在 2027 年 OEM 漲價之前提前購買。

I was kind of wondering if you started to hear some chatter about people buying early in '25 or '26 in advance of that or both are going to buy post (inaudible)

我有點想知道你是否開始聽到一些關於人們在 25 年或 26 年之前購買的傳言，或者兩者都會購買後期（聽不清楚）

At this point in time there is quite a bit of chatter in the trucking -- OEM truck market as far as prebuy things of that nature. I don't believe that our customer base has really started discussing it at a significant volume as far as truck rebuys.

目前，卡車運輸—OEM 卡車市場上有許多關於預購此類性質的產品的討論。我認為我們的客戶群還沒有真正開始大量討論卡車重新購買的問題。

But I think as we get closer to the emission change, that outlook could potentially change from our customer base. And we're watching the OEM market, the chassis market very closely as we move closer and closer to that date.

但我認為，隨著我們越來越接近排放變化，我們的客戶群的前景可能會改變。隨著距離這一日期越來越近，我們正在密切關注 OEM 市場和底盤市場。

Thank you.

謝謝。

I would like to turn the floor over to William Miller for closing remarks.

我想請威廉‧米勒 (William Miller) 致閉幕詞。

Thank you. I'd like to thank you all again for joining us on the call today and we look forward to speaking with you on our third quarter conference call. If you'd like information on how to participate and ask questions on the call, please visit our updated Investor Relations website millerind.com/investors or e-mail investors.relations@millerind.com. Thank you so much. Have a great day.

謝謝。我想再次感謝大家今天加入我們的電話會議，我們期待在第三季的電話會議上與你們交談。如果您想了解如何參與電話會議並提出問題，請造訪我們最新的投資者關係網站 millerind.com/investors 或發送電子郵件至 Investors.relations@millerind.com。太感謝了。祝你有美好的一天。

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與。