Snow-bound motorists may be cursing the prolonged winter and oil company investors may not like the drop in fuel prices. But higher snowfalls and lower gas prices are combining to give a lift to America's biggest towing equipment maker -- the Ooltewah-based Miller Industries.
"The weather continues to be severe that I have to think that puts more money in the hands of towers," said Walter Lang, managing partner and Avondale Partners. "And with gas prices down, that means miles driven also are picking up."
Miller Co-CEO Jeff Badgley said Thursday consumer sentiment is improving among towing companies and he is optimistic about his company's 2015 outlook following a nearly 60 percent jump in company profits last year.
Jeff Badgley, Miller Industries"In my memory, I don't think we've had a stronger commercial backlog in the history of Miller Industries," Badgley told industry analysts Thursday after announcing higher sales and profits for the company in 2014.
Miller Industries earned $14.9 million, or $1.31 per share, on sales of $492.8 million last year. In the previous year, Miller Industries earned $9.2 million, or 82 cents per share, on sales of $404.2 million.
Directors of Miller Industries, Inc. decided to boost the company's quarterly dividend by a penny per share to 16 cents per share, payable March 23 to shareholders of record on March 16.
Badgley said 2014 "was a very strong year for us as we continued to see strong demand for our products throughout the year.
"The results in the fourth quarter were indicative of our commitment to ramp up production," Badgley said.
For the fourth quarter of 2014, net income more than doubled the year-ago level, rising to $5.7 million, or 50 cents per share. Miller Industries' sales were up 36.5 percent to $147.8 million.."
But Badgley cautioned that the timing of many of the government contracts and other orders in the final months of 2014 "was unique and is not likely to be repeated."
But the Miller CEO said he is optimistic about this year.
"Looking ahead to 2015, we believe our growth opportunity lies in expanding our business geographically while advancing our product offerings, and we see a healthy level of demand to pursue both avenues of growth," Badgely said. "The overall sentiment of our customers has been positive as evidenced by the strength in our orders and our current backlog."
Despite the improved results, shares of Miller Industries traded down on Thursday by 50 cents per share, or 2.3 percent to close at $21.01 per share.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340