Miller Industries Inc. (NYSE:MLR) filed Quarterly Report for the period ended 2010-03-31.
Miller Industries Inc. has a market cap of $168.7 million; its shares were traded at around $14.5 with a P/E ratio of 28.4 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.
Highlight of Business Operations:Cash provided by operating activities was $4.8 million for the three months ended March 31, 2010, compared to $4.3 million for the comparable period in 2009. The cash provided by operating activities for the three months ended March 31, 2010 reflects the profitability generated in the quarter and the utilization of deferred tax assets. Increases in accounts receivable were offset by increases in accounts payable.
Cash used in financing activities was $1.2 million for the three months ended March 31, 2010, compared to $2.1 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 March 31, 2010, we had cash and cash equivalents of $38.5 million, exclusive of unused availability under our previous credit facility. Our previous credit facility was subsequently replaced by our current credit facility on April 6, 2010. 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 March 31, 2010, the Company had commitments of approximately $1.7 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 March 31, 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.
On April 6, 2010, in connection with the consummation of the current credit facility, the Company terminated its Credit Agreement with Wachovia Bank, National Association, which provided for a $27.0 million senior secured credit facility. The previous credit facility, as amended, consisted of a $20.0 million revolving credit facility, and a $7.0 million term loan. The previous credit facility was secured by substantially all of the Company s assets, and contained customary representations and warranties, events of default and affirmative and negative covenants for secured facilities of this type. Covenants under the previous credit facility restricted the payment of cash dividends if a default or event of default under the previous credit agreement had occurred or would result from the dividends, or if the Company would be in violation of the consolidated fixed charge coverage ratio test in the previous credit agreement as a result of the dividends, among various other restrictions.
At March 31, 2010 we had approximately $0.2 million of equipment notes payable and other long-term obligations. We also had approximately $1.2 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 March 31, 2010, we recognized a $2.0 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 March 31, 2010 and 2009, the impact of foreign currency exchange rate changes on our results of operations and cash flows was a loss of $42,000 and $55,000, respectively.
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