Miller Industries Inc. Reports Operating Results (10-Q)
Miller Industries Inc. has a market cap of $167.9 million; its shares were traded at around $14.37 with a P/E ratio of 19.4 and P/S ratio of 0.7. The dividend yield of Miller Industries Inc. stocks is 0.7%. Miller Industries Inc. had an annual average earning growth of 4.3% over the past 10 years.MLR is in the portfolios of Michael Price of MFP Investors LLC, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:Cash provided by operating activities was $13.8 million for the nine months ended September 30, 2010, compared to $22.1 million for the comparable period in 2009. The cash provided by operating activities for the nine months ended September 30, 2010 reflects the profitability generated in the first three quarters of 2010 and the utilization of deferred tax assets. The change in cash provided by operating activities is attributable to increases in accounts receivable partially offset by increases in accounts payable.
Cash used in investing activities was $4.1 million for the nine months ended September 30, 2010 compared to $0.4 million for the comparable period in 2009. The cash used in investing activities was primarily for the purchase of property, plant and equipment.
Cash used in financing activities was $1.0 million for the nine months ended September 30, 2010, compared to $4.0 million for the comparable period in 2009. The cash used in financing activities was used to pay cash dividends as well as repay equipment and other notes payable.
As of September 30, 2010, we had cash and cash equivalents of $43.0 million, exclusive of unused availability under our current credit facility. Our primary cash requirements include working capital, capital expenditures, the funding of any declared cash dividends and interest and principal payments on indebtedness, if any, under our current credit facility. At September 30, 2010, the Company had commitments of approximately $0.8 million for construction and acquisition of property and equipment. We expect our primary sources of cash to be cash flow from operations and cash and cash equivalents on hand at September 30, 2010, with borrowings under our current credit facility being available if needed. We expect these sources to be sufficient to satisfy our cash needs during 2010 and for the next several years. However, our ability to satisfy our cash needs will substantially depend upon a number of factors including our future operating performance, taking into account the economic and other factors discussed above and elsewhere in this Quarterly Report, as well as financial, business and other factors, many of which are beyond our control.
At September 30, 2010 we had approximately $0.1 million of equipment notes payable and other long-term obligations. We also had approximately $1.6 million in non-cancelable operating lease obligations.
We are subject to risk arising from changes in foreign currency exchange rates related to our international operations in Europe. We manage our exposure to our foreign currency exchange rate risk through our regular operating and financing activities, and not through the use of any financial or derivative instruments, forward contracts or hedging activities. Because we report in U.S. dollars on a consolidated basis, foreign currency exchange fluctuations could have a translation impact on our financial position. At September 30, 2010, we recognized a $2.9 million decrease in our foreign currency translation adjustment account compared with December 31, 2009 because of strengthening of the U.S. dollar against certain foreign currencies. During the three months ended September 30, 2010 and 2009, the impact of foreign currency exchange rate changes on our results of operations and cash flows was a loss of $37,000 and a gain of $83,000, respectively. The impact of foreign currency exchange rate changes on our results of operations and cash flows was a loss of $127,000 and a gain of $367,000 for the nine months ended September 30, 2010 and 2009, respectively.
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