Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | MILLER INDUSTRIES, INC. | |
Entity File Number | 001-14124 | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1566286 | |
Entity Address, Address Line One | 8503 Hilltop Drive | |
Entity Address, City or Town | Ooltewah | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37363 | |
City Area Code | 423 | |
Local Phone Number | 238-4171 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MLR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 11,410,728 | |
Entity Central Index Key | 0000924822 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and temporary investments | $ 53,934 | $ 57,521 |
Accounts receivable, net of allowance for doubtful accounts of $1,369 and $1,295 at June 30, 2021 and December 31, 2020, respectively | 161,778 | 141,642 |
Inventories, net | 91,996 | 83,939 |
Prepaid expenses | 7,453 | 3,167 |
Total current assets | 315,161 | 286,269 |
NONCURRENT ASSETS: | ||
Property, plant and equipment, net | 98,820 | 98,620 |
Right-of-use assets - operating leases | 1,359 | 1,468 |
Goodwill | 11,619 | 11,619 |
Other assets | 520 | 434 |
TOTAL ASSETS | 427,479 | 398,410 |
CURRENT LIABILITIES: | ||
Accounts payable | 108,078 | 85,534 |
Accrued liabilities | 24,177 | 24,773 |
Current portion of operating lease obligation | 367 | 354 |
Current portion of finance lease obligation | 22 | 21 |
Total current liabilities | 132,644 | 110,682 |
NONCURRENT LIABILITIES | ||
Noncurrent portion of operating lease obligation | 992 | 1,116 |
Noncurrent portion of finance lease obligation | 4 | 15 |
Deferred income tax liabilities | 4,261 | 4,144 |
Total liabilities | 137,901 | 115,957 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding | ||
Common stock, $0.01 par value; 100,000,000 shares authorized, 11,410,728 and 11,405,468, outstanding at June 30, 2021 and December 31, 2020, respectively | 114 | 114 |
Additional paid-in capital | 151,449 | 151,249 |
Accumulated surplus | 139,465 | 133,879 |
Accumulated other comprehensive loss | (1,450) | (2,789) |
Total shareholders' equity | 289,578 | 282,453 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 427,479 | $ 398,410 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts (in dollars) | $ 1,369 | $ 1,295 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 11,410,728 | 11,405,468 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
NET SALES | $ 181,158 | $ 128,529 | $ 351,070 | $ 304,583 |
COSTS OF OPERATIONS | 160,568 | 110,802 | 314,649 | 268,318 |
GROSS PROFIT | 20,590 | 17,727 | 36,421 | 36,265 |
OPERATING EXPENSES: | ||||
Selling, general and administrative expenses | 12,019 | 10,067 | 23,070 | 21,041 |
NON-OPERATING (INCOME) EXPENSES: | ||||
Interest expense, net | 340 | 429 | 615 | 788 |
Other (income) expense, net | (48) | (275) | 228 | (184) |
Total expense, net | 12,311 | 10,221 | 23,913 | 21,645 |
INCOME BEFORE INCOME TAXES | 8,279 | 7,506 | 12,508 | 14,620 |
INCOME TAX PROVISION | 1,763 | 1,680 | 2,814 | 3,363 |
NET INCOME | $ 6,516 | $ 5,826 | $ 9,694 | $ 11,257 |
Basic Income Per Share (in dollars per share) | $ 0.57 | $ 0.51 | $ 0.85 | $ 0.99 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic (in shares) | 11,411 | 11,405 | 11,411 | 11,405 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
NET INCOME | $ 6,516 | $ 5,826 | $ 9,694 | $ 11,257 |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Foreign currency translation adjustment | 579 | (312) | 1,339 | (384) |
Total other comprehensive income (loss) | 579 | (312) | 1,339 | (384) |
COMPREHENSIVE INCOME | $ 7,095 | $ 5,514 | $ 11,033 | $ 10,873 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Surplus | Accumulated Other Comprehensive Income (Loss) | Total |
BALANCE at Dec. 31, 2019 | $ 114 | $ 151,055 | $ 112,261 | $ (5,503) | $ 257,927 |
Components of comprehensive income: | |||||
Net income | 5,431 | 5,431 | |||
Foreign currency translation adjustments | (72) | (72) | |||
COMPREHENSIVE INCOME | 5,431 | (72) | 5,359 | ||
Issuance of common stock to non-employee directors | 194 | 194 | |||
Dividends paid | (2,053) | (2,053) | |||
BALANCE at Mar. 31, 2020 | 114 | 151,249 | 115,639 | (5,575) | 261,427 |
BALANCE at Dec. 31, 2019 | 114 | 151,055 | 112,261 | (5,503) | 257,927 |
Components of comprehensive income: | |||||
Net income | 11,257 | ||||
Foreign currency translation adjustments | (384) | ||||
COMPREHENSIVE INCOME | 10,873 | ||||
BALANCE at Jun. 30, 2020 | 114 | 151,249 | 119,412 | (5,887) | 264,888 |
BALANCE at Mar. 31, 2020 | 114 | 151,249 | 115,639 | (5,575) | 261,427 |
Components of comprehensive income: | |||||
Net income | 5,826 | 5,826 | |||
Foreign currency translation adjustments | (312) | (312) | |||
COMPREHENSIVE INCOME | 5,826 | (312) | 5,514 | ||
Dividends paid | (2,053) | (2,053) | |||
BALANCE at Jun. 30, 2020 | 114 | 151,249 | 119,412 | (5,887) | 264,888 |
BALANCE at Dec. 31, 2020 | 114 | 151,249 | 133,879 | (2,789) | 282,453 |
Components of comprehensive income: | |||||
Net income | 3,178 | 3,178 | |||
Foreign currency translation adjustments | 760 | 760 | |||
COMPREHENSIVE INCOME | 3,178 | 760 | 3,938 | ||
Issuance of common stock to non-employee directors | 200 | 200 | |||
Dividends paid | (2,054) | (2,054) | |||
BALANCE at Mar. 31, 2021 | 114 | 151,449 | 135,003 | (2,029) | 284,537 |
BALANCE at Dec. 31, 2020 | 114 | 151,249 | 133,879 | (2,789) | 282,453 |
Components of comprehensive income: | |||||
Net income | 9,694 | ||||
Foreign currency translation adjustments | 1,339 | ||||
COMPREHENSIVE INCOME | 11,033 | ||||
BALANCE at Jun. 30, 2021 | 114 | 151,449 | 139,465 | (1,450) | 289,578 |
BALANCE at Mar. 31, 2021 | 114 | 151,449 | 135,003 | (2,029) | 284,537 |
Components of comprehensive income: | |||||
Net income | 6,516 | 6,516 | |||
Foreign currency translation adjustments | 579 | 579 | |||
COMPREHENSIVE INCOME | 6,516 | 579 | 7,095 | ||
Dividends paid | (2,054) | (2,054) | |||
BALANCE at Jun. 30, 2021 | $ 114 | $ 151,449 | $ 139,465 | $ (1,450) | $ 289,578 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||||
Issuance of common stock to non-employee directors (in shares) | 5,260 | 5,366 | ||
Dividends paid (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES: | ||
Net income | $ 9,694 | $ 11,257 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 5,334 | 4,590 |
(Gain) Loss on disposal of property, plant and equipment | (1) | 5 |
Provision for doubtful accounts | 71 | 97 |
Issuance of non-employee director shares | 200 | 194 |
Deferred tax provision | 113 | (51) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19,784) | 45,165 |
Inventories | (7,314) | (3,221) |
Prepaid expenses | (4,270) | (925) |
Other assets | 104 | 242 |
Accounts payable | 22,115 | (36,062) |
Accrued liabilities | (1,043) | 1,744 |
Net cash flows from operating activities | 5,219 | 23,035 |
INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (5,418) | (7,545) |
Proceeds from sale of property, plant and equipment | 4 | 42 |
Net cash flows from investing activities | (5,414) | (7,503) |
FINANCING ACTIVITIES: | ||
Payments of cash dividends | (4,108) | (4,106) |
Net payments on other long-term obligations | (184) | |
Finance lease obligation payments | (11) | (10) |
Net cash flows from financing activities | (4,119) | (4,300) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS | 727 | (188) |
NET CHANGE IN CASH AND TEMPORARY INVESTMENTS | (3,587) | 11,044 |
CASH AND TEMPORARY INVESTMENTS, beginning of period | 57,521 | 26,072 |
CASH AND TEMPORARY INVESTMENTS, end of period | 53,934 | 37,116 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash payments for interest | 663 | 1,203 |
Cash payments for income taxes, net of refunds | $ 3,585 | $ 1,710 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The condensed consolidated financial statements of Miller Industries, Inc. and subsidiaries (the “Company”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. Nevertheless, the Company believes that the disclosures are adequate to make the financial information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, to present fairly the Company’s financial position, results of operations and cash flows at the dates and for the periods presented. Cost of goods sold for interim periods for certain activities is determined based on estimated gross profit rates. Interim results of operations are not necessarily indicative of results to be expected for the fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Standards During the first quarter of 2021, the Company adopted Accounting Standards Updated (“ASU”) 2019-12 Income Taxes (Topic 740), which among other things requires the Company to recognize franchise tax that is partially based on income as an income-based tax. The Company applied the amendments in the update on a modified retrospective basis, which did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
BASIC INCOME PER SHARE
BASIC INCOME PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
BASIC INCOME PER SHARE | |
BASIC INCOME PER SHARE | 3. BASIC INCOME PER SHARE The Company has a simple capital structure consisting of common stock and preferred stock, with only shares of common stock outstanding. The Company had no stock options or any other dilutive instruments outstanding during the three and six months ended June 30, 2021 or 2020. Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE | |
REVENUE | 4. REVENUE Substantially all of our revenue is generated from sales of towing and recovery equipment. As such, disaggregation of revenue by product line would not provide useful information because all product lines have substantially similar characteristics. However, revenue streams are tracked by the geographic location of customers. This disaggregated information is presented in the table below. For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Sales: North America $ 161,882 $ 107,460 $ 308,570 $ 251,316 Foreign 19,276 21,069 42,500 53,267 $ 181,158 $ 128,529 $ 351,070 $ 304,583 Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Except for certain extended service contracts on a small percentage of units sold, the Company’s performance obligations are satisfied, and sales revenue is recognized when products are shipped from the Company’s facilities. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when control transfers to the customer. The bill and hold arrangement must be substantive, and the product must be separately identified as belonging to the customer, ready for physical transfer, and unavailable to be used or directed to another customer. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of products. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Warranty related costs are recognized as an expense at the time products are sold and a reserve is established. Depending on the terms of the arrangement, for certain contracts the Company may defer the recognition of a portion of the consideration received because a future obligation has not yet been satisfied, such as an extended service contract. An observable price is used to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach is utilized when one is not available. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to performance obligations to be satisfied in the future. As of June 30, 2021 and December 31, 2020, contract liability balances were each $272, and are included in accrued liabilities on the condensed consolidated balance sheets. No revenue related to contract liability balances was recognized during the three or six months ended June 30, 2021 or during the three months ended June 30, 2020. During the six months ended June 30, 2020, the Company recognized $37 of contract liabilities into earnings after satisfaction of related performance obligations. The Company did not have any contract assets at June 30, 2021 or December 31, 2020. Terms on accounts receivable vary and are based on specific terms agreed upon with each customer. Write-offs of accounts receivable were not material during the three and six months ended June 30, 2021 and 2020. Trade accounts receivable are generally diversified due to the number of entities comprising the Company’s customer base and their dispersion across many geographic regions. The Company also frequently monitors the creditworthiness of the customers to whom the credit is granted in the normal course of business. No one customer made up greater than 10% of total company sales during the three or six months ended June 30, 2021 and 2020. There were also no customers with a trade account receivable greater than 10% of total accounts receivable at June 30, 2021 or December 31, 2020. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
INVENTORIES | 5. INVENTORIES Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or net realizable value, determined on a first-in, first-out basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, at June 30, 2021 and December 31, 2020 consisted of the following: 2021 2020 Chassis $ 3,715 $ 6,859 Raw materials 44,277 36,161 Work in process 29,470 16,282 Finished goods 14,534 24,637 $ 91,996 $ 83,939 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 6 Months Ended |
Jun. 30, 2021 | |
LONG-TERM OBLIGATIONS | |
LONG-TERM OBLIGATIONS | 6. LONG-TERM OBLIGATIONS Credit Facility and Other Long-Term Obligations Credit Facility The Company’s current loan agreement with First Horizon Bank, which governs its existing $50,000 unsecured revolving credit facility with a maturity date of May 31, 2027, contains customary representations and warranties, events of default, and financial, affirmative and negative covenants for loan agreements of this kind. The credit facility restricts the payment of cash dividends if the payment would cause the Company to be in violation of the minimum tangible net worth test or the leverage ratio test in the loan agreement, among various other customary covenants. The Company has been in compliance with these covenants throughout 2020 and during the first half of 2021, and it is anticipated that the Company will continue to be in compliance during the remainder of 2021. In the absence of a default, all borrowings under the credit facility bear interest at the LIBOR Rate plus 1.00% or 1.25% per annum, depending on the leverage ratio. The Company pays a non-usage fee under the current loan agreement at a rate per annum equal to between 0.15% and 0.35% of the unused amount of the credit facility, which fee is paid quarterly. At June 30, 2021 and December 31, 2020, the Company had $0 in outstanding borrowings under the credit facility. In March 2020, the Company drew $25,000 on its existing credit facility for working capital needs and as a precautionary measure to ensure future short-term cash flow requirements were met due to operational disruptions resulting from the COVID-19 pandemic. However, during the second and third quarters of 2020, the Company repaid the balance in full, as its cash position was stronger than anticipated. At June 30, 2021, the Company had cash and temporary investments of $53,934. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Leasing Activities The Company leases certain equipment and facilities under long-term non-cancellable operating and finance lease agreements. The leases expire at various dates through 2026. Certain of the lease agreements contain renewal options. For those leases that have renewal options, the Company included these renewal periods in the lease term if the Company determined it was reasonably certain to exercise the renewal option. Lease payments during such renewal periods were also considered in the calculation of right-of-use assets and lease obligations. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Lease obligations are recognized at the commencement date based on the present value of lease payments over the lease term. Right-of-use assets are recognized at the commencement date as the initial measurement of the lease liability, plus payments made prior to lease commencement and any initial direct costs. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Expense is recognized on a straight-line basis over the lease term for operating leases. For finance leases, expense is recognized as the expense from straight-line amortization of the right-of-use asset plus the periodic interest expense from the lease obligation. Short-term leases have a lease term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related right-of-use asset or lease obligation for such contracts. Right-of-use assets related to finance leases are included as a component of property, plant and equipment, net on the condensed consolidated balance sheets and had the following values at June 30, 2021 and December 31, 2020. 2021 2020 Finance lease right-of-use assets $ 78 $ 78 Accumulated amortization (53) (42) Finance lease right-of-use assets, net $ 25 $ 36 A maturity analysis of the undiscounted cash flows of operating and finance lease obligations is as follows: Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2021 $ 209 $ 11 2022 382 15 2023 299 — 2024 242 — 2025 217 — Thereafter 79 — Total lease payments 1,428 26 Less Imputed Interest (69) — Lease obligation at June 30, 2021 $ 1,359 $ 26 The lease cost and certain other information during the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended June 30 June 30 2021 2020 2021 2020 Lease Cost Finance lease cost: Amortization of right-of-use assets $ 6 $ 5 $ 11 $ 10 Interest on lease obligation — — 1 1 Total finance lease cost 6 5 12 11 Total operating lease cost 107 99 213 201 Short-term lease cost 119 141 246 254 Total lease cost $ 232 $ 245 $ 471 $ 466 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 107 $ 98 $ 213 $ 199 Financing cash flows from finance leases 6 5 11 10 Right-of-use assets obtained in exchange for new finance lease obligations — — — — Right-of-use assets obtained in exchange for new operating lease obligations — 26 — 26 The weighted average remaining lease term for operating leases and finance leases at June 30, 2021 was 4.2 years and 1.2 years, respectively. The weighted average remaining lease term for operating leases and finance leases at December 31, 2020 was 4.6 years and 1.9 years, respectively. The weighted average discount rate for operating leases and finance leases at June 30, 2021 was 3.2% and 4.0%, respectively. The weighted average discount rate for operating leases and finance leases at December 31, 2020 was 3.2% and 4.0%, respectively. The Company’s subsidiary in the United Kingdom leased facilities used for manufacturing and office space from a related party with related lease costs during the three months ended June 30, 2021 and 2020 of $57 and $45, respectively, and related lease costs during the six months ended June 30, 2021 and 2020 of $113 and $102, respectively. The Company’s French subsidiary leased a fleet of vehicles from a related party with related lease costs of $28 and $26 during the three months ended June 30, 2021 and 2020, respectively, and related lease costs during each of the six months ended June 30, 2021 and 2020 of $56. Other Commitments At June 30, 2021 and December 30, 2020, the Company had commitments of approximately $5,012 and $7,068 , respectively, for construction and acquisition of property, plant and equipment. The Company is also migrating its enterprise resource planning (ERP) system to a multi-tenant cloud environment which includes global ERP, human capital management, data analytics and the use of artificial intelligence. Phase one of this migration was completed during the first quarter of 2021 and the two remaining phases will be done over the next three years . Related to this project, at June 30, 2021 and December 31, 2020, the Company had commitments of approximately $3,754 and $5,266 , respectively, in software license fees payable in installments through 2025. Contingencies The Company has entered into arrangements with third-party lenders where it has agreed, in the event of default by a distributor within the independent distributor network, to repurchase from the third-party lender company products repossessed from the independent distributor customer. These arrangements are typically subject to a maximum repurchase amount. The maximum amount of collateral that the Company could be required to purchase was approximately $42,326 at June 30, 2021, and $56,822 at December 31, 2020. The Company’s risk under these arrangements is mitigated by the value of the products that would be repurchased as part of the transaction. The Company considered the fair value at inception of its liability under these arrangements and concluded that the liability associated with these potential repurchase obligations was not probable and thus not material at June 30, 2021 or December 31, 2020. The Company is, from time to time, a party to litigation arising in the normal course of its business. Litigation is subject to various inherent uncertainties, and it is possible that some of such matters could be resolved unfavorably to the Company, which could result in substantial damages against the Company. The Company establishes accruals for matters that are probable and reasonably estimable and maintains product liability and other insurance that management believes to be adequate. Management believes that any liability that may ultimately result from the resolution of any such matters in excess of available insurance coverage and accruals will not have a material adverse effect on the consolidated financial position or results of operations of the Company. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 8. INCOME TAXES As of June 30, 2021, the Company had no federal net operating loss carryforwards and no significant state net operating loss carryforwards. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS Dividends On August 2, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable September 13, 2021 to shareholders of record as of September 3, 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
BASIS OF PRESENTATION | The condensed consolidated financial statements of Miller Industries, Inc. and subsidiaries (the “Company”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. Nevertheless, the Company believes that the disclosures are adequate to make the financial information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, to present fairly the Company’s financial position, results of operations and cash flows at the dates and for the periods presented. Cost of goods sold for interim periods for certain activities is determined based on estimated gross profit rates. Interim results of operations are not necessarily indicative of results to be expected for the fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st |
RECENT ACCOUNTING PRONOUNCEMENTS | Recently Adopted Standards During the first quarter of 2021, the Company adopted Accounting Standards Updated (“ASU”) 2019-12 Income Taxes (Topic 740), which among other things requires the Company to recognize franchise tax that is partially based on income as an income-based tax. The Company applied the amendments in the update on a modified retrospective basis, which did not have a material impact on the Company’s consolidated financial statements or related disclosures. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE | |
Schedule of disaggregation of revenue by the geographic region for customers | For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Sales: North America $ 161,882 $ 107,460 $ 308,570 $ 251,316 Foreign 19,276 21,069 42,500 53,267 $ 181,158 $ 128,529 $ 351,070 $ 304,583 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
Schedule of inventories, net of reserves | 2021 2020 Chassis $ 3,715 $ 6,859 Raw materials 44,277 36,161 Work in process 29,470 16,282 Finished goods 14,534 24,637 $ 91,996 $ 83,939 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
Summary of right-of-use assets related to finance leases | 2021 2020 Finance lease right-of-use assets $ 78 $ 78 Accumulated amortization (53) (42) Finance lease right-of-use assets, net $ 25 $ 36 |
Summary of maturities of operating lease liabilities | Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2021 $ 209 $ 11 2022 382 15 2023 299 — 2024 242 — 2025 217 — Thereafter 79 — Total lease payments 1,428 26 Less Imputed Interest (69) — Lease obligation at June 30, 2021 $ 1,359 $ 26 |
Summary of maturities of finance lease liabilities | Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2021 $ 209 $ 11 2022 382 15 2023 299 — 2024 242 — 2025 217 — Thereafter 79 — Total lease payments 1,428 26 Less Imputed Interest (69) — Lease obligation at June 30, 2021 $ 1,359 $ 26 |
Summary of components of our lease cost | Three Months Ended Six Months Ended June 30 June 30 2021 2020 2021 2020 Lease Cost Finance lease cost: Amortization of right-of-use assets $ 6 $ 5 $ 11 $ 10 Interest on lease obligation — — 1 1 Total finance lease cost 6 5 12 11 Total operating lease cost 107 99 213 201 Short-term lease cost 119 141 246 254 Total lease cost $ 232 $ 245 $ 471 $ 466 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 107 $ 98 $ 213 $ 199 Financing cash flows from finance leases 6 5 11 10 Right-of-use assets obtained in exchange for new finance lease obligations — — — — Right-of-use assets obtained in exchange for new operating lease obligations — 26 — 26 |
BASIC INCOME PER SHARE (Details
BASIC INCOME PER SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
BASIC INCOME PER SHARE | ||||
Outstanding stock options or any other dilutive instruments included in the calculation of diluted EPS | 0 | 0 | 0 | 0 |
REVENUE (Schedule of Disaggrega
REVENUE (Schedule of Disaggregation of Revenue by Geographic Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 181,158 | $ 128,529 | $ 351,070 | $ 304,583 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 161,882 | 107,460 | 308,570 | 251,316 |
Foreign | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 19,276 | $ 21,069 | $ 42,500 | $ 53,267 |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
REVENUE | |||||
Contract liability balances related to performance obligations | $ 272 | $ 272 | $ 272 | ||
Recognized revenue related to contract liability balances | 0 | $ 0 | 0 | $ 37 | |
Contract with Customer, Asset, before Allowance for Credit Loss | $ 0 | $ 0 | $ 0 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories, Net of Reserves) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
INVENTORIES | ||
Chassis | $ 3,715 | $ 6,859 |
Raw materials | 44,277 | 36,161 |
Work in process | 29,470 | 16,282 |
Finished goods | 14,534 | 24,637 |
Inventories | $ 91,996 | $ 83,939 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||||
Cash and temporary investments | $ 53,934 | $ 57,521 | $ 37,116 | $ 26,072 | |
First Tennessee Bank National Association | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility | 50,000 | ||||
Line of credit outstanding borrowings | $ 0 | $ 0 | |||
Proceeds from Lines of Credit | $ 25,000 | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.15% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate in addition to reference rate | 1.00% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.35% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate in addition to reference rate | 1.25% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Right of Use Assets Related to Finance Leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
COMMITMENTS AND CONTINGENCIES. | ||
Finance lease right-of-use assets | $ 78 | $ 78 |
Accumulated amortization | (53) | (42) |
Finance lease right-of-use assets, net | $ 25 | $ 36 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Maturity of Undiscounted Cash Flows of Operating and Finance Lease Obligations) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Operating Lease Obligation | |
2021 | $ 209 |
2022 | 382 |
2023 | 299 |
2024 | 242 |
2025 | 217 |
Thereafter | 79 |
Total lease payments | 1,428 |
Less: Imputed Interest | (69) |
Lease obligation at June 30, 2021 | $ 1,359 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true |
Finance Lease Obligation | |
2021 | $ 11 |
2022 | 15 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 26 |
Less: Imputed Interest | 0 |
Lease obligation at June 30, 2021 | $ 26 |
Lessee, Finance Lease, Existence of Option to Extend [true false] | true |
Lessee, Finance Lease, Existence of Option to Terminate [true false] | true |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Lease Cost | |||||
Amortization of right-of-use assets | $ 6 | $ 5 | $ 11 | $ 10 | |
Interest on lease obligation | 0 | 0 | 1 | 1 | |
Total finance lease cost | 6 | 5 | 12 | 11 | |
Total operating lease cost | 107 | 99 | 213 | 201 | |
Short-term lease cost | 119 | 141 | 246 | 254 | |
Total lease cost | 232 | 245 | 471 | 466 | |
Cash paid for amounts included in the measurement of lease obligation: | |||||
Operating cash flows from operating leases | 107 | 98 | 213 | 199 | |
Financing cash flows from finance leases | 6 | 5 | 11 | 10 | |
Right-of-use assets obtained in exchange for new finance lease obligations | 0 | 0 | 0 | 0 | |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 0 | 26 | $ 0 | 26 | |
Weighted average remaining lease term for operating leases | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 7 months 6 days | ||
Weighted average remaining lease term for finance leases | 1 year 2 months 12 days | 1 year 2 months 12 days | 1 year 10 months 24 days | ||
Weighted average discount rate for operating leases | 3.20% | 3.20% | 3.20% | ||
Weighted average discount rate for finance leases | 4.00% | 4.00% | 4.00% | ||
Boniface Engineering, Ltd. | |||||
Lease Cost | |||||
Total lease cost | $ 57 | 45 | $ 113 | 102 | |
Jige International S.A. | |||||
Lease Cost | |||||
Total lease cost | $ 28 | $ 26 | $ 56 | $ 56 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Other Commitments and Contingencies) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)Milestone | Dec. 31, 2020USD ($) | |
Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Repurchase collateral amount | $ 42,326 | $ 56,822 |
Capital Addition Purchase Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | 5,012 | 7,068 |
Software License Fee Arrangement | ||
Long-term Purchase Commitment [Line Items] | ||
Commitment amount | $ 3,754 | $ 5,266 |
Number of milestones completed | Milestone | 1 | |
Number of milestones remaining | Milestone | 2 | |
Commitment period | 3 years |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands | Jun. 30, 2021USD ($) |
INCOME TAXES | |
Federal net operating loss carryforward | $ 0 |
State net operating loss carryforward | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Aug. 02, 2021$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, declared date | Aug. 2, 2021 |
Dividends payable, amount per share | $ 0.18 |
Dividends payable, payment date | Sep. 13, 2021 |
Dividends payable, record date | Sep. 3, 2021 |