Miller Industries Reports 2009 Third Quarter Results

CHATTANOOGA, Tenn., Nov. 9  /PRNewswire-FirstCall/ -- Miller Industries, Inc. (NYSE:MLR) (the "Company") today announced financial results for the third quarter ended September 30, 2009.

For the third quarter of 2009, net sales were $57.5 million, compared with $66.7 million in the third quarter of 2008.  Net income in the third quarter of 2009 was $1.7 million, or $0.14 per diluted share, an increase of 85.4% as compared to net income of $0.9 million, or $0.08 per diluted share, in the prior year period.

On a sequential basis, net sales for the third quarter of 2009 increased 6.1% over net sales of $54.3 million for the second quarter of 2009. Net income for the third quarter of 2009 increased 22.7% over $1.4 million in the second quarter of 2009.

Gross profit for the third quarter of 2009 was $8.9 million, or 15.4% of net sales, compared to $8.1 million, or 12.2% of net sales, for the third quarter of 2008 and $8.1 million, or 14.9% of net sales, for the second quarter of 2009.  For the third quarter of 2009, selling, general and administrative expenses were $6.0 million versus $6.4 million for the prior year period.

The Company paid off the remaining balance of the term loan under its credit facility in June of 2009, and had no bank debt outstanding at September 30, 2009. This compares to total bank debt of $2.1 million at December 31, 2008.

Other income related to foreign currency transactions was a gain of $83,000 in the third quarter of 2009 compared to a loss of $36,000 in the third quarter of 2008.

For the nine-month period ended September 30, 2009, net sales were $170.6 million, compared to $209.1 million in the prior year period.  The Company reported net income of $4.0 million, or $0.34 per diluted share, for the first nine months of 2009, compared to net income for the first nine months of 2008 of $2.9 million, or $0.25 per diluted share. Other income related to foreign currency transactions was a gain of $367,000 for the first nine months of 2009 compared to a $47,000 gain in the prior year period.

Jeffrey I. Badgley, President and Co-CEO of the Company stated, "We are pleased with our third quarter results, which reflect our continued efforts to manage our costs in this challenging economic environment. Driven by a slight increase in orders from our domestic distributors and by continued orders associated with government-related contracts, our net sales increased during the third quarter from second quarter levels.  In addition, we generated improved margins both sequentially and on a year-over-year basis as a result of our product mix and enhanced efficiencies associated with our previous plant modernization program which was completed early this year. The result was that we improved our net income in the third quarter by more than 85% over the prior year period. We further strengthened our balance sheet in the quarter, reducing our inventory levels and adding to our cash position.  As a result, we continue to operate from a position of financial strength."

Mr. Badgley added, "While we are encouraged by the improvement in sales over second quarter levels, we are still experiencing a weak demand environment across our markets.  The domestic markets are showing some slight signs of improvement from their lowest levels, and we continue to receive add-on orders on government-related contracts. However, demand in our European operations remains soft, credit markets remain tight, and difficult overall economic conditions continue to impact our visibility. We expect these trends to persist in the coming months, but we remain focused on ensuring the business is well positioned in the current environment."

Mr. Badgley concluded, "We believe our performance year to date reflects our success at Miller Industries in adapting to rapidly changing and very challenging conditions in our marketplace during the last year. Going forward, we remain cautious in our outlook and will continue to carefully manage our costs. Doing so will benefit the Company by giving us the financial flexibility to invest in the business, especially when our markets improve and the overall economy begins to recover."

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 10, 2009, at 10:00 AM ET.  Listeners can access the conference call live and archived over the Internet through a link at:

http://www.videonewswire.com/event.asp?id=63165

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 17, 2009.  The replay number is [phone], Passcode 421744.

Miller Industries is the world's largest manufacturer of towing and recovery equipment, and markets its towing and recovery equipment under a number of well-recognized brands, including Century, Vulcan, Chevron, Holmes, Challenger, Champion, Jige, Boniface and Eagle.

Certain statements in this news release may be deemed to be forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by the use of words such as "may," "will," "should," "could," "continue," "future," "potential," "believe," "project," "plan," "intend," "seek," "estimate," "predict," "expect," "anticipate" and similar expressions, or the negative of such terms, or other comparable terminology.  Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements.  Such forward-looking statements are made based on our management's beliefs as well as assumptions made by, and information currently available to, our management.  Our actual results may differ materially from the results anticipated in these forward-looking statements due to, among other things, economic and market conditions; the risks related to the general economic health of our customers; our customers' access to capital and credit to fund purchases, including the ability of our customers to secure floor plan financing; the success and timing of existing and additional export and government order; the cyclical nature of our industry; changes in fuel and other transportation costs; our dependence on outside suppliers of raw materials; changes in the cost of aluminum, steel and related raw materials; and those other risks discussed in our filings with the SEC, including those risks discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for fiscal 2008, which discussion is incorporated herein by this reference.  Such factors are not exclusive.  We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, our company.

                    Miller Industries, Inc. and Subsidiaries
                      Consolidated Statements of Income
                     (In thousands except per share data)

                          Three Months Ended           Nine Months Ended
                             September 30                 September 30
                         ----------------------     -----------------------
                                           %                           %
                         2009     2008   Change     2009     2008    Change
                         ----     ----   ------     ----     ----    ------
  NET SALES            $57,547  $66,735   -13.8% $170,558  $209,071  -18.4%
                       -------  -------          --------  --------
  COSTS AND EXPENSES:

    COST OF OPERATIONS  48,695   58,608   -16.9%  145,238   184,355  -21.2%

    SELLING, GENERAL
     AND ADMINISTRATIVE
     EXPENSES            5,954    6,366    -6.5%   18,209    19,079   -4.6%

    INTEREST EXPENSE,
     NET                   234      254    -7.9%      794     1,046  -24.1%

    OTHER (INCOME)
     EXPENSE               (83)      36  -330.6%     (367)      (47) 680.9%
                           ---       --              ----       ---
  TOTAL COSTS AND
   EXPENSES             54,800   65,264   -16.0%  163,874   204,433  -19.8%
                        ------   ------           -------   -------

  INCOME BEFORE
   INCOME TAXES          2,747    1,471    86.7%    6,684     4,638   44.1%

  INCOME TAX PROVISION   1,047      554    89.0%    2,685     1,748   53.6%
                         -----      ---             -----     -----
  NET INCOME            $1,700     $917    85.4%   $3,999    $2,890   38.4%
                        ======     ====            ======    ======
    BASIC INCOME PER
     COMMON SHARE        $0.15    $0.08    87.5%    $0.34     $0.25   36.0%
                         =====    =====             =====     =====
    DILUTED INCOME PER
     COMMON SHARE        $0.14    $0.08    75.0%    $0.34     $0.25   36.0%
                         =====    =====             =====     =====
  WEIGHTED AVERAGE
   SHARES OUTSTANDING:
     BASIC              11,608   11,594     0.1%   11,604    11,592    0.1%
                        ======   ======            ======    ======
     DILUTED            11,971   11,601     3.2%   11,842    11,618    1.9%
                        ======   ======            ======    ======


DATASOURCE: Miller Industries, Inc.



CONTACT:  Miller Industries, Inc., J. Vincent Mish, Chief Financial

Officer, [phone], Frank Madonia, General Counsel, [phone]; or

FD, Investor Contact: Eric Boyriven, [phone]

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