Miller Industries (MLR)

Risks

• Our dependence upon outside suppliers for component parts, chassis and raw materials, including aluminum, steel, and petroleum-related products, leaves us subject to changes in price and availability (including as a result of increased demand due to improving economic conditions, the impact of the COVID-19 pandemic and supply chain difficulties) and delays in receiving supplies of such parts, chassis or materials.
• Demand from our customers and towing operators is affected by the availability of capital and access to credit.
• Operational challenges caused by our increased sales volumes in recent years prior to the COVID-19 pandemic could result in material delays, increased costs and loss of business opportunities, which could negatively impact our operating results and financial condition.
• Our international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including by restrictive taxation or other government regulation and by foreign currency fluctuation.
• Our business is subject to the cyclical nature of our industry and changes in consumer confidence and in economic conditions in general, including the negative impacts of the COVID-19 pandemic on global economies. Adverse changes or continued uncertainty with respect to these factors may lead to a downturn in our business.
• Our sales to U.S. and other governmental entities through prime contractors are subject to special risks.
• Overall demand from our customers may be affected by increases in their fuel and insurance costs and changes in weather conditions.
• Our competitors could impede our ability to attract or retain customers.
• The catastrophic loss of one of our manufacturing facilities could harm our business, financial condition and results of operations.
• Environmental and health and safety liabilities and requirements could require us to incur material costs.
• Failure to comply with domestic and foreign anti-corruption laws could have an adverse effect on our business.
• Our future success depends upon our ability to develop or acquire proprietary products and technology and assertions against us relating to intellectual property rights could harm our business.
• Changes in the tax regimes and related government policies and regulations in the countries in which we operate could adversely affect our results and our effective tax rate.
• The effects of regulations relating to conflict minerals may adversely affect our business.
• A product warranty or product liability claim in excess of our insurance coverage, or an inability to acquire or maintain insurance at commercially reasonable rates, could have a material adverse effect upon our business.
• Our stock price may fluctuate greatly as a result of the general volatility of the stock market.
• Our charter and bylaws contain anti-takeover provisions that may make it more difficult or expensive to acquire us in the future or may negatively affect our stock price.
• Our credit facility could restrict our ability to operate our business and failure to comply with its terms could adversely affect our business; our obligations to repurchase products from third-party lenders to our distributors could adversely impact our future revenues and financial condition.
• We cannot assure you that we will continue to declare dividends on our common stock.
• A disruption in, or breach in security of, our information technology ("IT") systems or any violation of data protection laws could adversely impact our business and operations.
• Any loss of the services of our key executives could have a material adverse impact on our operations.