Unless you get stranded along the road few pay much attention to vehicle towing trucks. Fortunately, recovery equipment is the business of Miller Industries. The Company manufactures and sells towing trucks, flat-bed trucks with hydraulic tilt machinery, transport trailers and car carriers. Its customers include towing companies, car dealerships and other vehicle transport operators. Based in Tennessee, Miller Industries sells its products in North America, Canada and Mexico through a network of distributors. The Company also works through government suppliers.
Miller reported $1.2 billion in total sales in the twelve months ending March 2024, providing $89 million in operating income. During the same period the Company generated $26.70 in operating cash flow, representing a sales-to-cash conversion rate of 2.19%. This is not the most impressive cash generating machine in our coverage group, but we can accept it against the Company modest use of leverage. The debt-to-equity ratio is 0.92. It is also helpful that Miller generates excess returns on its growth investments with a return on invested capital of 15.07% and an estimated cost of internal capital near 9.00%.
In the first quarter ending March 2024, Miller reports strong increases in year-over-year sales and earnings. Improving demand conditions are driving growth. The pace is expected to continue through the balance of 2024.
Please register and subscribe to view more details in a 6-page reported dated June 10, 2024.