x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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Tennessee
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62-1566286
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|
(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification No.)
|
|
8503
Hilltop Drive
Ooltewah,
Tennessee
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37363
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|
(Address
of principal executive offices)
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(Zip
Code)
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x Yes
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o No
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Large
Accelerated Filer o
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Accelerated
Filer x
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Non-Accelerated
Filer o
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o
Yes
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x
No.
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PART
I
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FINANCIAL
INFORMATION
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Page
Number
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Item
1.
|
Financial
Statements (Unaudited)
|
|
Condensed
Consolidated Balance Sheets – September 30, 2007 and
December 31, 2006
|
3
|
|
Condensed
Consolidated Statements of Income for the Three and Nine Months
Ended
September 30, 2007 and 2006
|
4
|
|
Condensed
Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 2007 and 2006
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5
|
|
Notes
to Condensed Consolidated Financial Statements
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6
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|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
11
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Item
4.
|
Controls
and Procedures
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16
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PART
II
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OTHER
INFORMATION
|
|
Item
1.
|
Legal
Proceedings
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17
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Item
1A.
|
Risk
Factors
|
17
|
Item
5.
|
Other
Information
|
17
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Item
6.
|
Exhibits
|
17
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SIGNATURES
|
18
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FINANCIAL
STATEMENTS (UNAUDITED)
|
September
30, 2007
(Unaudited)
|
December
31, 2006
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and temporary investments
|
$ |
11,304
|
$ |
8,204
|
||||
Accounts
receivable, net of allowance for doubtful accounts of $1,630 and
$2,488 at
September 30, 2007 and December 31, 2006,
respectively
|
76,569
|
84,186
|
||||||
Inventories,
net
|
36,416
|
43,155
|
||||||
Prepaid
expenses and other
|
2,212
|
2,079
|
||||||
Current
deferred income taxes
|
10,154
|
12,154
|
||||||
Total
current assets
|
136,655
|
149,778
|
||||||
PROPERTY,
PLANT, AND EQUIPMENT, net
|
32,885
|
27,527
|
||||||
GOODWILL
|
11,619
|
11,619
|
||||||
DEFERRED
INCOME TAXES
|
3,457
|
7,586
|
||||||
OTHER
ASSETS
|
548
|
922
|
||||||
$ |
185,164
|
$ |
197,432
|
|||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Current
portion of long-term obligations
|
$ |
1,602
|
$ |
1,623
|
||||
Accounts
payable
|
37,532
|
58,620
|
||||||
Accrued
liabilities and other
|
12,952
|
13,269
|
||||||
Total
current liabilities
|
52,086
|
73,512
|
||||||
LONG-TERM
OBLIGATIONS, less current portion
|
4,319
|
10,537
|
||||||
COMMITMENTS
AND CONTINGENCIES (Notes 5 and 8)
|
||||||||
SHAREHOLDERS’
EQUITY:
|
||||||||
Preferred
stock, $.01 par value; 5,000,000 shares authorized, none issued
or
outstanding
|
—
|
—
|
||||||
Common
stock, $.01 par value; 100,000,000 shares authorized, 11,588,179
and
11,509,964 outstanding at September 30, 2007 and December 31,
2006, respectively
|
116
|
115
|
||||||
Additional
paid-in capital
|
160,623
|
159,702
|
||||||
Accumulated
deficit
|
(34,673 | ) | (48,539 | ) | ||||
Accumulated
other comprehensive income
|
2,693
|
2,105
|
||||||
Total
shareholders’ equity
|
128,759
|
113,383
|
||||||
$ |
185,164
|
$ |
197,432
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
NET
SALES
|
$ |
92,692
|
$ |
107,364
|
$ |
315,520
|
$ |
292,723
|
||||||||
COSTS
AND EXPENSES:
|
||||||||||||||||
Costs
of operations
|
79,637
|
92,228
|
270,485
|
249,582
|
||||||||||||
Selling,
general and administrative expenses
|
6,481
|
6,632
|
20,671
|
19,615
|
||||||||||||
Interest
expense, net
|
1,018
|
851
|
2,612
|
2,653
|
||||||||||||
Total
costs and expenses
|
87,136
|
99,711
|
293,768
|
271,850
|
||||||||||||
INCOME
BEFORE INCOME TAXES
|
5,556
|
7,653
|
21,752
|
20,873
|
||||||||||||
INCOME
TAX PROVISION
|
1,958
|
967
|
7,886
|
2,761
|
||||||||||||
NET
INCOME
|
$ |
3,598
|
$ |
6,686
|
$ |
13,866
|
$ |
18,112
|
||||||||
BASIC
INCOME PER COMMON SHARE
|
$ |
0.31
|
$ |
0.59
|
$ |
1.20
|
$ |
1.60
|
||||||||
DILUTED
INCOME PER COMMON SHARE
|
$ |
0.31
|
$ |
0.58
|
$ |
1.19
|
$ |
1.56
|
||||||||
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
11,572
|
11,360
|
11,545
|
11,334
|
||||||||||||
Diluted
|
11,667
|
11,577
|
11,661
|
11,589
|
Nine
Months Ended
September
30,
|
||||||||
2007
|
2006
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ |
13,866
|
$ |
18,112
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
2,127
|
2,119
|
||||||
Amortization
of deferred financing costs
|
92
|
92
|
||||||
Deferred
income tax provision
|
6,134
|
—
|
||||||
Provision
for doubtful accounts
|
225
|
771
|
||||||
Stock-based
compensation
|
231
|
231
|
||||||
Issuance
of non-employee director shares
|
75
|
75
|
||||||
Gain
on disposals of property, plant and equipment
|
(109 | ) |
—
|
|||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
7,600
|
(13,391 | ) | |||||
Inventories
|
7,211
|
(7,227 | ) | |||||
Prepaid
expenses and other
|
(107 | ) | (1,501 | ) | ||||
Accounts
payable
|
(21,462 | ) |
6,771
|
|||||
Accrued
liabilities and other
|
(398 | ) |
208
|
|||||
Net
cash provided by operating activities from continuing
operations
|
15,485
|
6,260
|
||||||
Net
cash provided by operating activities from discontinued
operations
|
—
|
658
|
||||||
Net
cash provided by operating activities
|
15,485
|
6,918
|
||||||
INVESTING
ACTIVITIES:
|
||||||||
Purchases
of property, plant and equipment
|
(7,401 | ) | (6,689 | ) | ||||
Proceeds
from sale of property, plant and equipment
|
143
|
91
|
||||||
Payments
received on notes receivables
|
391
|
171
|
||||||
Net
cash used in investing activities from continuing
operations
|
(6,867 | ) | (6,427 | ) | ||||
Net
cash provided by investing activities from discontinued
operations
|
—
|
25
|
||||||
Net
cash used in investing activities
|
(6,867 | ) | (6,402 | ) | ||||
FINANCING
ACTIVITIES:
|
||||||||
Net
borrowings under senior credit facility
|
—
|
3,000
|
||||||
Payments
under subordinated credit facility
|
(5,000 | ) | (5,000 | ) | ||||
Payments
on long-term obligations
|
(1,324 | ) | (1,202 | ) | ||||
Borrowings
under long-term obligations
|
—
|
168
|
||||||
Additions
to deferred financing costs
|
(42 | ) | (4 | ) | ||||
Proceeds
from the exercise of stock options
|
617
|
484
|
||||||
Net
cash used in financing activities from continuing
operations
|
(5,749 | ) | (2,554 | ) | ||||
Net
cash used in financing activities from discontinued
operations
|
—
|
—
|
||||||
Net
cash used in financing activities
|
(5,749 | ) | (2,554 | ) | ||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY
INVESTMENTS
|
231
|
520
|
||||||
NET
CHANGE IN CASH AND TEMPORARY INVESTMENTS
|
3,100
|
(1,518 | ) | |||||
CASH
AND TEMPORARY INVESTMENTS, beginning of period
|
8,204
|
6,147
|
||||||
CASH
AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS, beginning of
period
|
—
|
23
|
||||||
CASH
AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS, end of
period
|
—
|
102
|
||||||
CASH
AND TEMPORARY INVESTMENTS, end of period
|
$ |
11,304
|
$ |
4,550
|
||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash
payments for interest
|
$ |
3,233
|
$ |
2,866
|
||||
Cash
payments for income taxes
|
$ |
2,157
|
$ |
3,044
|
September 30,
2007
|
December 31,
2006
|
|||||||
Chassis
|
$ |
2,378
|
$ |
3,596
|
||||
Raw
materials
|
17,055
|
18,767
|
||||||
Work
in process
|
12,284
|
12,566
|
||||||
Finished
goods
|
4,699
|
8,226
|
||||||
$ |
36,416
|
$ |
43,155
|
September 30,
2007
|
December 31,
2006
|
|||||||
Outstanding
borrowings under Senior Credit Facility
|
$ |
3,850
|
$ |
4,900
|
||||
Outstanding
borrowings under Junior Credit Facility
|
—
|
5,000
|
||||||
Mortgage,
equipment and other notes payable
|
2,071
|
2,260
|
||||||
5,921
|
12,160
|
|||||||
Less
current portion
|
(1,602 | ) | (1,623 | ) | ||||
$ |
4,319
|
$ |
10,537
|
2008
|
$ |
1,602
|
||
2009
|
1,600
|
|||
2010
|
2,708
|
|||
2011
|
11
|
|||
$ |
5,921
|
For
the Three Months Ended September 30,
|
For
the Nine Months Ended September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
Sales:
|
||||||||||||||||
North
America
|
$ |
70,968
|
$ |
87,057
|
$ |
256,029
|
$ |
238,109
|
||||||||
Foreign
|
21,724
|
20,307
|
59,491
|
54,614
|
||||||||||||
$ |
92,692
|
$ |
107,364
|
$ |
315,520
|
$ |
292,723
|
September
30, 2007
|
December
31, 2006
|
|||||||
Long
Lived Assets:
|
||||||||
North
America
|
$ |
41,540
|
$ |
36,455
|
||||
Foreign
|
2,964
|
2,691
|
||||||
$ |
44,504
|
$ |
39,146
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM
1A.
|
RISK
FACTORS
|
ITEM 5. | OTHER INFORMATION |
ITEM
6.
|
EXHIBITS
|
3.1
|
Charter,
as amended, of the Registrant (incorporated by reference to Exhibit
3.1 to
the Registrant’s Annual Report on Form 10-K, filed with the Commission on
April 22, 2002)
|
3.2
|
Amended
and Restated Bylaws of the Registrant*
|
31.1
|
Certification
Pursuant to Rules 13a-14(a)/15d-14(a) by Co-Chief Executive
Officer*
|
31.2
|
Certification
Pursuant to Rules 13a-14(a)/15d-14(a) by Co-Chief Executive
Officer*
|
31.3
|
Certification
Pursuant to Rule 13a-14(a)/15d-14(a) by Chief Financial
Officer*
|
32.1
|
Certification
Pursuant to Section 1350 of Chapter 63 of Title 18 of United States
Code
by Co-Chief Executive Officer*
|
32.2
|
Certification
Pursuant to Section 1350 of Chapter 63 of Title 18 of United States
Code
by Co-Chief Executive Officer*
|
32.3
|
Certification
Pursuant to Section 1350 of Chapter 63 of Title 18 of United States
Code
by Chief Financial Officer*
|
MILLER INDUSTRIES, INC. | ||||
By: | /s/ J. Vincent Mish | |||
J. Vincent Mish | ||||
Executive Vice President and Chief Financial Officer | ||||
Date: November 8,
2007
|