On this page of StockholderLetter.com we present the 5/2/2023 shareholder letter from MILLER INDUSTRIES INC /TN/ — ticker symbol MLR. Reading current and past MLR letters to shareholders can bring important insights into the investment thesis.

 •  5/2/2023 Letter Continued (Full PDF)
 •  4/26/2024 MLR Stockholder Letter
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MLR 5/2/2023 Shareholder/Stockholder Letter Transcript:

2022 Annual Report 

TO OUR SHAREHOLDERS
May 1, 2023
During 2022, we witnessed a tale of two extremes. The first half of the year was marked by continued
challenges recovering from the global COVID-19 pandemic in the form of inflationary cost pressures in
both raw materials and labor, as well as persistent supply chain disruptions that collectively had an
outsized impact on our financial performance. As a result, we took pricing actions to offset the inflationary
cost pressures and continue to execute against our strategic initiatives such as our ERP implementation,
enterprise software upgrades, and other operational and productivity improvement initiatives aimed at
reducing our expenses as a percentage of net sales. During this time, and due to the strength of our
backlog, we continued to invest in our inventory in the form of critical parts and in goods near completion
to fulfil orders of finished goods as soon as the necessary parts became available.
Moving into the second half of the year, many of these strategic initiatives and investments began to bear
fruit. Topline sales growth began to accelerate as parts became increasingly available as the supply chain
improved and we benefitted from actions we had taken over the course of 2022 to diversify and increase
the flexibility of our supply chain. Gross margin also steadily improved due to our pricing actions,
productivity improvements and the easing of raw material costs. Collectively, the decisions the
management team enacted earlier in the year enabled us to end the year on a strong note with fourth
quarter financial results ahead of internal expectations and a record backlog. However, I am particularly
pleased to report that through the entire year demand for our products remained robust, as evidenced
by the stability of our backlog and no reported cancelations from our customers despite continued
macroeconomic challenges. This is a testament to the enduring strength of the Miller Industries brand, its
product portfolio, its management team and its employees.
As we cleared many of the challenges of the pandemic and our financial results improved, we were able
to turn more of our attention to improving our governance. As part of our ongoing Board refreshment
process, that began in earnest with Leigh Walton   s appointment to the Board in 2020, and more so with
her appointment as Chair of the Nominating and Governance committee in August of 2022, we added
four new highly qualified directors to our Board in March 2023. These directors added necessary diversity
and expertise to our Board, with a wealth of experience in people management, corporate finance, law,
information technology, and human resources. We look forward to continuing to work with them, and
the rest of our Board, to maximize shareholder value. We also, based on feedback from shareholders,
adopted a new executive compensation plan, where management compensation is more closely tied to
stock price performance and shareholder interests. Our new plan is also more closely aligned with that
of our proxy peer group in relative executive compensation and structure. We believe these collective
changes to our governance set us up for our long-term success.
Despite the challenges of the last several years, we have remained committed to returning capital to our
shareholders. We are extremely proud to have been able to continue our industry leading quarterly
dividend of $0.18 per share, marking 49 consecutive quarters that the company has paid a dividend. Over
the past 10 years, we have returned over $77 million of capital to our shareholders through dividends.
With supply chain disruptions abating, inflationary pressures easing and the strong momentum in our
business, coupled with outstanding execution against our strategic initiatives during 2022, I have never
been more excited about what lies ahead for Miller Industries.

In closing, as always, we remain committed to building on both our industry-leading product portfolio and
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employees, customers, suppliers, and shareholders for their ongoing support of Miller Industries. Without
all of you, this would not be possible.

William G. Miller, II
President & CEO

Deborah L. Whitmire
Executive Vice President & CFO

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 5/2/2023 Letter Continued (Full PDF)