x |
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
MILLER
INDUSTRIES, INC.
|
(Exact
name of registrant as specified in its
charter)
|
Tennessee
|
62-1566286
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
8503
Hilltop Drive, Ooltewah, Tennessee
|
37363
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(423)
238-4171
|
(Registrant’s
telephone number, including area
code)
|
Title
of Each Class
|
Name
of Each Exchange on Which Registered
|
|
Common
Stock, par value $.01 per share
|
New
York Stock Exchange
|
None
|
(Title
of
Class)
|
1
|
||||
7
|
||||
10
|
||||
11
|
||||
11
|
||||
11
|
||||
PART
II
|
||||
12
|
||||
14
|
||||
16
|
||||
24
|
||||
25
|
||||
25
|
||||
25
|
||||
27
|
||||
PART
III
|
||||
28
|
||||
28
|
||||
28
|
||||
28
|
||||
28
|
||||
PART
IV
|
||||
29
|
||||
F-1
|
||||
S-1
|
Name
|
Age
|
Position
|
||
William
G. Miller
|
60
|
Chairman
of the Board and Co-Chief Executive Officer
|
||
Jeffrey
I. Badgley
|
54
|
President
and Co-Chief Executive Officer
|
||
Frank
Madonia
|
58
|
Executive
Vice President, Secretary and General Counsel
|
||
J.
Vincent Mish
|
56
|
Executive
Vice President, Chief Financial Officer and President of Financial
Services Group
|
ITEM 1A. |
RISK
FACTORS
|
PROPERTIES
|
Price
Range of Common Stock
|
|||||||
Period
|
High
|
Low
|
|||||
Year
Ended December 31, 2005
|
|||||||
First
Quarter
|
$
|
13.80
|
$
|
11.14
|
|||
Second
Quarter
|
13.02
|
9.90
|
|||||
Third
Quarter
|
22.59
|
12.30
|
|||||
Fourth
Quarter
|
21.50
|
16.35
|
|||||
Year
Ended December 31, 2006
|
|||||||
First
Quarter
|
$
|
26.13
|
$
|
19.72
|
|||
Second
Quarter
|
29.31
|
17.60
|
|||||
Third
Quarter
|
21.50
|
16.61
|
|||||
Fourth
Quarter
|
24.71
|
17.95
|
|||||
Year
Ending December 31, 2007
|
|||||||
First
Quarter (through March 9, 2007)
|
$
|
24.18
|
$
|
21.60
|
12/31/01
|
12/31/02
|
12/31/03
|
12/31/04
|
12/30/05
|
12/29/06
|
||||||||||||||
Miller
Industries, Inc.
|
100
|
|
|
102
|
|
|
126
|
|
|
356
|
|
|
640
|
|
|
757
|
|||
NYSE
Composite Index(1)
|
100
|
|
|
80
|
|
|
104
|
|
|
116
|
|
|
124
|
|
|
147
|
|||
S&P
Construction Index(2)
|
100
|
|
|
84
|
|
|
144
|
|
|
174
|
|
|
200
|
|
|
215
|
(1)
|
The
New York Stock Exchange revised the NYSE Composite Index as of December
31, 2002. The change recalibrated the base year as
December 31, 2002.
|
(2)
|
For
the year ended December 31, 2002, Standard & Poors transferred the
Heavy Duty Trucks and Parts index, the index previously used by the
Company, to the S&P 500 - Construction and Farm Machinery and Heavy
Trucks Index. As a result, the Company has elected to use the S&P 500
- Construction and Farm Machinery and Heavy Trucks index in the above
comparison.
|
ITEM 6. |
SELECTED
FINANCIAL DATA
|
Years
Ended December 31,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(In
thousands except per share data)
|
||||||||||||||||
Statements
of Income Data (1):
|
||||||||||||||||
Net
Sales:
|
||||||||||||||||
Towing
and recovery equipment
|
$
|
409,421
|
$
|
351,884
|
$
|
236,308
|
$
|
192,043
|
$
|
203,059
|
||||||
Towing
services
|
—
|
—
|
—
|
13,953
|
28,444
|
|||||||||||
|
409,421
|
351,884
|
236,308
|
205,996
|
231,503
|
|||||||||||
Costs
and expenses:
|
||||||||||||||||
Costs
of operations:
|
||||||||||||||||
Towing
and recovery equipment
|
349,639
|
301,943
|
205,021
|
168,390
|
174,516
|
|||||||||||
Towing
services
|
—
|
—
|
—
|
10,618
|
22,539
|
|||||||||||
349,639
|
301,943
|
205,021
|
179,008
|
197,055
|
||||||||||||
Selling,
general, and administrative expenses
|
26,837
|
24,293
|
18,904
|
17,411
|
19,540
|
|||||||||||
Special
charges (2)
|
—
|
—
|
—
|
682
|
—
|
|||||||||||
Interest
expense
|
3,518
|
4,012
|
4,657
|
5,609
|
4,617
|
|||||||||||
Total
costs and expenses
|
379,994
|
330,248
|
228,582
|
202,710
|
221,212
|
|||||||||||
Income
from continuing operations before income taxes
|
29,427
|
21,636
|
7,726
|
3,286
|
10,291
|
|||||||||||
Income
tax provision
|
2,454
|
2,936
|
740
|
1,216
|
7,208
|
|||||||||||
Income
from continuing operations
|
26,973
|
18,700
|
6,986
|
2,070
|
3,083
|
|||||||||||
Discontinued
operations:
|
||||||||||||||||
Gain
(loss) from discontinued operations, net of taxes
|
126
|
(114
|
)
|
(1,511
|
)
|
(16,223
|
)
|
(26,965
|
)
|
|||||||
Tax
benefit of advances to and investment in certain discontinued
operations
|
(18,244
|
)
|
—
|
—
|
—
|
—
|
||||||||||
Gain
(loss) from discontinued operations
|
18,370
|
(114
|
)
|
(1,511
|
)
|
(16,223
|
)
|
(26,965
|
)
|
|||||||
Net
income (loss) before cumulative effect of change in accounting
principle
|
45,343
|
18,586
|
5,475
|
(14,153
|
)
|
(23,882
|
)
|
|||||||||
Cumulative
effect of change in accounting principle
|
—
|
—
|
—
|
—
|
(21,812
|
)
|
||||||||||
Net
income (loss)
|
$
|
45,343
|
$
|
18,586
|
$
|
5,475
|
$
|
(14,153
|
)
|
$
|
(45,694
|
)
|
||||
Basic
net income (loss) per common share:
|
||||||||||||||||
Income
from continuing operations
|
$
|
2.37
|
$
|
1.67
|
$
|
0.64
|
$
|
0.22
|
$
|
0.34
|
||||||
Gain
(loss) from discontinued operations
|
1.62
|
(0.01
|
)
|
(0.14
|
)
|
(1.74
|
)
|
(2.89
|
)
|
|||||||
Cumulative
effect of change in accounting principle
|
—
|
—
|
—
|
—
|
(2.34
|
)
|
||||||||||
Basic
income (loss)
|
$
|
3.99
|
$
|
1.66
|
$
|
0.50
|
$
|
(1.52
|
)
|
$
|
(4.89
|
)
|
||||
Diluted
net income (loss) per common share:
|
||||||||||||||||
Income
from continuing operations
|
$
|
2.33
|
$
|
1.63
|
$
|
0.64
|
$
|
0.22
|
$
|
0.34
|
||||||
Gain
(loss) from discontinued operations
|
1.58
|
(0.01
|
)
|
(0.14
|
)
|
(1.74
|
)
|
(2.89
|
)
|
|||||||
Cumulative
effect of change in accounting principle
|
—
|
—
|
—
|
—
|
(2.34
|
)
|
||||||||||
Diluted
income (loss)
|
$
|
3.91
|
$
|
1.62
|
$
|
0.50
|
$
|
(1.52
|
)
|
$
|
(4.89
|
)
|
||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
11,360
|
11,226
|
10,860
|
9,342
|
9,341
|
|||||||||||
Diluted
|
11,596
|
11,474
|
10,982
|
9,342
|
9,341
|
December
31,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(In
thousands except per share data)
|
||||||||||||||||
Balance
Sheet Data (at period end):
|
||||||||||||||||
Working
capital (deficit)
|
$
|
76,266
|
$
|
50,406
|
$
|
39,978
|
$
|
31,136
|
$
|
(10,174
|
)
|
|||||
Total
assets
|
197,432
|
144,570
|
127,822
|
131,818
|
162,177
|
|||||||||||
Long-term
obligations, less current portion
|
10,537
|
16,803
|
24,345
|
29,927
|
1,214
|
|||||||||||
Common
shareholders’
equity
|
113,383
|
64,755
|
46,785
|
27,997
|
39,697
|
(1) |
The
results of operations and loss on disposal associated with certain
towing
services operations, which were sold in June 2003, have been reclassified
from discontinued to continuing operations for all periods presented
because of our significant continuing involvement in the operations
of the
disposal components through a consulting agreement and our ongoing
interest in the cash flows of the operations of the disposal components
through a long-term licensing
agreement.
|
(2) |
Special
charges and other net operating expenses include a loss on the sale
of
operations of $682 for the year ended December 31, 2003 for continuing
operations. We recorded asset impairments and special charges for
discontinued operations of $4,905 and $11,828 for the years ended
December
31, 2003 and 2002. Special charges and asset impairments related
to
discontinued operations are included in Loss from Discontinued
Operations.
|
ITEM 7. |
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
|
2006
|
2005
|
2004
|
||||||||
Continuing
Operations:
|
||||||||||
Net
Sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||
Costs
and expenses:
|
||||||||||
Costs
of operations
|
85.4
|
%
|
85.8
|
%
|
86.8
|
%
|
||||
Selling,
general and administrative
|
6.6
|
%
|
6.9
|
%
|
8.0
|
%
|
||||
Interest
expense
|
0.8
|
%
|
1.1
|
%
|
2.0
|
%
|
||||
Total
costs and expenses
|
92.8
|
%
|
93.8
|
%
|
96.8
|
%
|
||||
Income
before income taxes
|
7.2
|
%
|
6.2
|
%
|
3.2
|
%
|
||||
Discontinued
Operations:
|
||||||||||
Net
Sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||
Costs
and expenses:
|
||||||||||
Costs
of operations
|
93.0
|
%
|
90.3
|
%
|
92.5
|
%
|
||||
Selling,
general and administrative
|
8.6
|
%
|
10.9
|
%
|
9.5
|
%
|
||||
Gain
on deconsolidation
|
(32.7
|
)%
|
0.0
|
%
|
0.0
|
%
|
||||
Interest
expense
|
0.0
|
%
|
0.0
|
%
|
1.6
|
%
|
||||
Total
costs and expenses
|
68.9
|
%
|
101.2
|
%
|
103.6
|
%
|
||||
Income
(loss) before income taxes
|
31.1
|
%
|
(1.2
|
)%
|
(3.6
|
)%
|
Payment
Due By Period (in thousands)
|
||||||||||||||||
Contractual
Obligations(1)
|
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
|||||||||||
Outstanding
Borrowings Under Senior Credit Facility
|
$
|
4,900
|
$
|
1,400
|
$
|
2,800
|
$
|
700
|
$
|
—
|
||||||
Outstanding
Borrowings Under Junior Credit Facility
|
5,000
|
—
|
5,000
|
—
|
—
|
|||||||||||
Mortgage
Notes Payable
|
1,844
|
60
|
1,784
|
—
|
—
|
|||||||||||
Equipment
Notes Payable (Capital Lease Obligations)
|
416
|
162
|
231
|
23
|
—
|
|||||||||||
Operating
Lease Obligations
|
2,984
|
1,011
|
1,069
|
520
|
384
|
|||||||||||
Purchase
Obligations (2)
|
36,406
|
36,406
|
—
|
—
|
—
|
|||||||||||
Commitments
for construction and acquisition of plant and equipment
|
2,810
|
2,810
|
—
|
—
|
—
|
|||||||||||
Total
|
$
|
54,360
|
$
|
41,849
|
$
|
10,884
|
$
|
1,243
|
$
|
384
|
(1) |
Amounts
do not include potential contingent obligations of $27.5 million
under
repurchase commitments with third-party lenders in the event of customer
default.
|
(2) |
Purchase
obligations represent open purchase orders for raw materials and
other
components issued in the normal course of
business.
|
2006
|
2005
|
||||||
Senior
Credit Facility
|
|||||||
Revolving
Credit Facility
|
$
|
—
|
$
|
—
|
|||
Term
Loan
|
4,900
|
6,300
|
|||||
Total
|
4,900
|
6,300
|
|||||
Junior
Credit Facility
|
5,000
|
10,000
|
|||||
Total
Outstanding Borrowings
|
$
|
9,900
|
$
|
16,300
|
ITEM 7A. |
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY
DATA
|
ITEM 9A. |
CONTROLS
AND PROCEDURES
|
ITEM 9B. |
OTHER
INFORMATION
|
ITEM 11. |
EXECUTIVE
COMPENSATION
|
ITEM 14. |
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
(a) |
The
following documents are filed as part of this
Report:
|
1. |
Financial
Statements
|
Description
|
Page
Number
in
Report
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
|
Consolidated
Balance Sheets as of December 31, 2006 and 2005
|
F-3
|
|
Consolidated
Statements of Operations for the years ended December 31, 2006, 2005
and
2004
|
F-4
|
|
Consolidated
Statements of Shareholders’ Equity for the years ended December 31, 2006,
2005 and 2004
|
F-5
|
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2006, 2005
and
2004
|
F-6
|
|
Notes
to Consolidated Financial Statements
|
F-7
|
2. |
Financial
Statement Schedules
|
Description
|
Page
Number
in
Report
|
|
Schedule
II - Valuation and Qualifying Accounts
|
S-1
|
3. |
Exhibits
|
Description
|
Incorporated
by
Reference
to
Registration
File
Number
|
Form
or
Report
|
Date
of
Report
|
Exhibit
Number
in
Report
|
|||||
3.1
|
Charter,
as amended, of the Registrant
|
—
|
10-K
|
December
31, 2001
|
3.1
|
||||
3.2
|
Bylaws
of the Registrant
|
33-79430
|
S-1
|
August
1994
|
3.2
|
||||
10.1
|
Settlement
Letter dated April 27, 1994 between Miller Group, Inc. and the Management
Group
|
33-79430
|
S-1
|
August
1994
|
10.7
|
||||
10.2
|
Participants
Agreement dated as of April 30, 1994 between the Registrant, Century
Holdings, Inc., Century Wrecker Corporation, William G. Miller and
certain
former shareholders of Miller Group, Inc.
|
33-79430
|
S-1
|
August
1994
|
10.11
|
Description
|
Incorporated
by
Reference
to
Registration
File
Number
|
Form
or
Report
|
Date
of
Report
|
Exhibit
Number
in
Report
|
|||||
10.3
|
Form
of Noncompetition Agreement between the Registrant and certain officers
of
the Registrant
|
33-79430
|
S-1
|
August
1994
|
10.28
|
||||
10.4
|
Form
of Nonexclusive Distributor Agreement
|
33-79430
|
S-1
|
August
1994
|
10.31
|
||||
10.5
|
Miller
Industries, Inc. Stock Option and Incentive Plan**
|
33-79430
|
S-1
|
August
1994
|
10.1
|
||||
10.6
|
Form
of Incentive Stock Option Agreement under Miller Industries, Inc.
Stock
Option and Incentive Plan**
|
33-79430
|
S-1
|
August
1994
|
10.2
|
||||
10.7
|
Miller
Industries, Inc. Non-Employee Director Stock Option Plan**
|
33-79430
|
S-1
|
August
1994
|
10.4
|
||||
10.8
|
Form
of Director Stock Option Agreement**
|
33-79430
|
S-1
|
August
1994
|
10.5
|
||||
10.9
|
Employment
Agreement dated October 14, 1993 between Century Wrecker Corporation
and
Jeffrey I. Badgley**
|
33-79430
|
S-1
|
August
1994
|
10.29
|
||||
10.10
|
First
Amendment to Employment Agreement between Century Wrecker Corporation
and
Jeffrey I. Badgley**
|
33-79430
|
S-1
|
August
1994
|
10.33
|
||||
10.11
|
Form
of Employment Agreement between Registrant and each of Messrs. Madonia
and
Mish**
|
—
|
Form
10-K
|
April
30, 1995
|
10.37
|
||||
10.12
|
First
Amendment to Miller Industries, Inc. Non-Employee Director Stock
Option
Plan**
|
—
|
Form
10-K
|
April
30, 1995
|
10.38
|
||||
10.13
|
Second
Amendment to Miller Industries, Inc. Non-Employee Director Stock
Option
Plan**
|
—
|
Form
10-K
|
April
30, 1996
|
10.39
|
||||
10.14
|
Second
Amendment to Miller Industries, Inc. Stock Option and Incentive
Plan**
|
—
|
Form
10-K
|
April
30, 1996
|
10.40
|
||||
10.15
|
Employment
Agreement dated July 8, 1997 between the Registrant and William G.
Miller**
|
—
|
Form
10-Q/A
|
July
31, 1997
|
10
|
||||
10.16
|
Guaranty
Agreement Among NationsBank of Tennessee, N.A. and certain subsidiaries
of
Registrant dated January 30, 1998
|
—
|
Form
10-K
|
April
30, 1998
|
10.37
|
||||
10.17
|
Stock
Pledge Agreement Between NationsBank of Tennessee, N.A. and the Registrant
dated January 30, 1998
|
—
|
Form
10-K
|
April
30, 1998
|
10.38
|
||||
10.18
|
Stock
Pledge Agreement Between NationsBank of Tennessee, N.A. and the certain
subsidiaries of the Registrant dated January 30, 1998
|
—
|
Form
10-K
|
April
30, 1998
|
10.39
|
Description
|
Incorporated
by
Reference
to
Registration
File
Number
|
Form
or
Report
|
Date
of
Report
|
Exhibit
Number
in
Report
|
|||||
10.19
|
Form
of Indemnification Agreement dated June 8, 1998 by and between the
Registrant and each of William G. Miller, Jeffrey I. Badgley, A.
Russell
Chandler, Paul E. Drack, Frank Madonia, J. Vincent Mish, Richard
H.
Roberts, and Daniel N. Sebastian**
|
—
|
Form
10-Q
|
September
14, 1998
|
10
|
||||
10.20
|
Employment
Agreement between the Registrant and Jeffrey I. Badgley, dated September
11, 1998**
|
—
|
Form
10-Q
|
December
15, 1998
|
10.1
|
||||
10.21
|
Employment
Agreement between the Registrant and Frank Madonia, dated September
11,
1998**
|
—
|
Form
10-Q
|
December
15, 1998
|
10.3
|
||||
10.22
|
Agreement
between the Registrant and Jeffrey I. Badgley, dated September 11,
1998**
|
—
|
Form
10-Q
|
December
15, 1998
|
10.4
|
||||
10.23
|
Agreement
between the Registrant and Frank Madonia, dated September 11,
1998**
|
—
|
Form
10-Q
|
December
15, 1998
|
10.6
|
||||
10.24
|
Amended
and Restated Credit Agreement among the Registrant, its subsidiary
and
Bank of America, N.A. dated July 23, 2001
|
—
|
Form
10-K
|
April
30, 2001
|
10.7
|
||||
10.25
|
First
Amendment to the Amended and Restated Credit Agreement among the
Registrant, its subsidiary and Bank of America, N.A. dated July 23,
2001
|
—
|
Form
10-K
|
December
31, 2001
|
10.82
|
||||
10.26
|
Amended
and Restated Intercreditor and Subordination Agreement by and among
The
CIT Group/Business Credit, Inc. and Bank of America, N.A.
|
—
|
Form
10-K
|
December
31, 2001
|
10.83
|
||||
10.27
|
Participation
Agreement by and among the Company and its Subsidiaries, CIT
Group/Business Credit and Bank of America, N.A. and William G. Miller
dated October 31, 2003
|
—
|
Form
10-Q
|
September
30, 2003
|
10.3
|
||||
10.28
|
Modification
of First Amendment to the Amended and Restated Intercreditor and
Subordination Agreement by and among CIT Group, Inc., Bank of America,
N.A., and Contrarian Funds, LLC dated December 24, 2003
|
—
|
Form
8-K
|
January
20, 2004
|
10.3
|
||||
10.29
|
Second
Amendment to the Amended and Restated Intercreditor and Subordination
Agreement by and between CIT Group, Inc. and Contrarian Funds, LLC,
dated
December 24, 2003
|
—
|
Form
8-K
|
January
20, 2004
|
10.4
|
||||
10.30
|
Amended
and Restated Participation Agreement by and among the Registrant,
CIT and
William G. Miller, dated December 24, 2003
|
—
|
Form
8-K
|
January
20, 2004
|
10.5
|
||||
10.31
|
Amendment
No. 3 to Amended and Restated Credit Agreement by and among the
Registrant, Contrarian Funds, LLC and Harbourside Investments, LLLP,
dated
as of January 14, 2004
|
—
|
Form
8-K
|
January
20, 2004
|
10.6
|
||||
10.32
|
Exchange
Agreement by and between the Registrant and Contrarian Funds, LLC,
dated
as of January 14, 2004
|
—
|
Form
8-K
|
January
20, 2004
|
10.7
|
Description
|
Incorporated
by
Reference
to
Registration
File
Number
|
Form
or
Report
|
Date
of
Report
|
Exhibit
Number
in
Report
|
|||||
10.33
|
Exchange
Agreement by and between the Registrant and Harbourside Investments,
LLLP,
dated as of January 14, 2004
|
—
|
Form
8-K
|
January
20, 2004
|
10.8
|
||||
10.34
|
Registration
Rights Agreement by and among the Registrant, Harbourside Investments,
LLLP and Contrarian Funds, LLC, dated January 20, 2004
|
—
|
Form
8-K
|
January
20, 2004
|
10.9
|
||||
10.35
|
Consent
and Tenth Amendment to Credit Agreement by and between the Registrant
and
The CIT Group/Business Credit, Inc., dated November 22,
2004
|
—
|
Form
10-K
|
December
31, 2004
|
10.100
|
||||
10.36
|
Amendment
No. 4 to Amended and Restated Credit Agreement by and among the
Registrant, Miller Industries Towing Equipment, Inc., Harbourside
Investments, LLLP and certain guarantors set forth on the signature
pages
thereto, dated November 5, 2004
|
—
|
Form
10-K
|
December
31, 2004
|
10.101
|
||||
10.37
|
Non-Employee
Director Stock Plan**
|
—
|
Schedule
14A
|
January
23, 2004
|
Annex
A
|
||||
10.38
|
Miller
Industries, Inc. 2005 Equity Incentive Plan**
|
—
|
Schedule
14A
|
May
2, 2005
|
Annex
B
|
||||
10.39
|
Credit
Agreement, dated June 17, 2005, among Wachovia Bank, NA and the
Registrant
|
—
|
Form
8-K
|
June
17, 2005
|
10.1
|
||||
10.40
|
Term
Note, dated June 17, 2005, among Wachovia Bank, NA and the
Registrant
|
—
|
Form
8-K
|
June
17, 2005
|
10.2
|
||||
10.41
|
Revolving
Note, dated June 17, 2005, among Wachovia Bank, NA and the
Registrant
|
—
|
Form
8-K
|
June
17, 2005
|
10.3
|
||||
10.42
|
Intercreditor
Agreement, dated June 17, 2005, among Wachovia Bank, NA, and William
G.
Miller
|
—
|
Form
8-K
|
June
17, 2005
|
10.4
|
||||
10.43
|
Security
Agreement, dated June 17, 2005, among Wachovia Bank, NA, and the
Registrant
|
—
|
Form
8-K
|
June
17, 2005
|
10.5
|
||||
10.44
|
Subsidiary
Security Agreement, dated June 17, 2005, among Wachovia Bank, NA,
and the
subsidiaries of the Registrant named therein
|
—
|
Form
8-K
|
June
17, 2005
|
10.6
|
||||
10.45
|
Pledge
Agreement, dated June 17, 2005, among Wachovia Bank, NA, and the
Registrant
|
—
|
Form
8-K
|
June
17, 2005
|
10.7
|
||||
10.46
|
Amendment
No. 5 to Amended and Restated Credit Agreement, dated June 17, 2005,
among
the Registrant, Miller Industries Towing Equipment, Inc. and William
G.
Miller
|
—
|
Form
8-K
|
June
17, 2005
|
10.8
|
||||
10.47
|
Promissory
Note, dated June 17, 2005, among the Registrant, Miller Industries
Towing
Equipment, Inc. and William G. Miller
|
—
|
Form
8-K
|
June
17, 2005
|
10.9
|
Description
|
Incorporated
by
Reference
to
Registration
File
Number
|
Form
or
Report
|
Date
ofReport
|
Exhibit
Number
in
Report
|
|||||
21
|
Subsidiaries
of the Registrant*
|
||||||||
23.1
|
Consent
of Joseph Decosimo and Company, PLLC*
|
||||||||
24
|
Power
of Attorney (see signature page)*
|
||||||||
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*
|
*
|
Filed
herewith.
|
** |
Management
contract or compensatory plan or
arrangement.
|
(b)
|
The
Registrant hereby files as exhibits to this Report the exhibits set
forth
in Item 15(a)3 hereof.
|
(c)
|
F-2
|
||
F-3
|
||
F-4
|
||
F-5
|
||
F-6
|
||
F-7
|
||
S-1
|
2006
|
2005
|
||||||
ASSETS
|
|||||||
CURRENT
ASSETS:
|
|||||||
Cash
and temporary investments
|
$
|
8,204
|
$
|
6,147
|
|||
Accounts
receivable, net of allowance for doubtful accounts of $2,488 and
$1,834,
at December 31, 2006 and 2005, respectively
|
84,186
|
65,792
|
|||||
Inventories
|
43,155
|
38,318
|
|||||
Prepaid
expenses and other
|
2,079
|
739
|
|||||
Current
deferred income taxes
|
12,154
|
—
|
|||||
Current
assets of discontinued operations held for sale
|
—
|
2,422
|
|||||
Total
current assets
|
149,778
|
113,418
|
|||||
PROPERTY,
PLANT, AND EQUIPMENT, net
|
27,527
|
17,443
|
|||||
GOODWILL
|
11,619
|
11,619
|
|||||
DEFERRED
INCOME TAXES
|
7,586
|
—
|
|||||
OTHER
ASSETS
|
922
|
1,443
|
|||||
NONCURRENT
ASSETS OF DISCONTINUED OPERATIONS HELD
FOR SALE
|
—
|
647
|
|||||
$
|
197,432
|
$
|
144,570
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Current
portion of long-term obligations
|
$
|
1,623
|
$
|
1,595
|
|||
Accounts
payable
|
58,620
|
45,352
|
|||||
Accrued
liabilities and other
|
13,269
|
9,821
|
|||||
Current
liabilities of discontinued operations held for sale
|
—
|
6,244
|
|||||
Total
current liabilities
|
73,512
|
63,012
|
|||||
LONG-TERM
OBLIGATIONS,
less current portion
|
10,537
|
16,803
|
|||||
COMMITMENTS
AND CONTINGENCIES (Notes
3 and 6)
|
|||||||
SHAREHOLDERS’
EQUITY:
|
|||||||
Preferred
stock, $.01 par value; 5,000,000 shares authorized, none issued or
outstanding
|
0
|
0
|
|||||
Common
stock, $.01 par value; 100,000,000 shares authorized, 11,509,964
and
11,297,474, outstanding at December 31, 2006 and 2005,
respectively
|
115
|
113
|
|||||
Additional
paid-in capital
|
159,702
|
157,996
|
|||||
Accumulated
deficit
|
(48,539
|
)
|
(93,882
|
)
|
|||
Accumulated
other comprehensive income
|
2,105
|
528
|
|||||
Total
shareholders’ equity
|
113,383
|
64,755
|
|||||
$
|
197,432
|
$
|
144,570
|
2006
|
2005
|
2004
|
||||||||
NET
SALES
|
$
|
409,421
|
$
|
351,884
|
$
|
236,308
|
||||
COSTS
AND EXPENSES
|
||||||||||
Costs
of operations
|
349,639
|
301,943
|
205,021
|
|||||||
Selling,
general, and administrative expenses
|
26,837
|
24,293
|
18,904
|
|||||||
Interest
expense, net
|
3,518
|
4,012
|
4,657
|
|||||||
Total
costs and expenses
|
379,994
|
330,248
|
228,582
|
|||||||
INCOME
FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
29,427
|
21,636
|
7,726
|
|||||||
INCOME
TAX PROVISION
|
2,454
|
2,936
|
740
|
|||||||
INCOME
FROM CONTINUING OPERATIONS
|
26,973
|
18,700
|
6,986
|
|||||||
DISCONTINUED
OPERATIONS
|
||||||||||
Gain
(loss) from discontinued operations, net of taxes
|
126
|
(114
|
)
|
(1,511
|
)
|
|||||
Tax
benefit of advances to and investment in certain discontinued
operations
|
(18,244
|
)
|
—
|
—
|
||||||
Gain
(loss) from discontinued operations
|
18,370
|
(114
|
)
|
(1,511
|
)
|
|||||
NET
INCOME
|
$
|
45,343
|
$
|
18,586
|
$
|
5,475
|
||||
BASIC
INCOME (LOSS) PER COMMON SHARE:
|
||||||||||
Income
from continuing operations
|
$
|
2.37
|
$
|
1.67
|
$
|
0.64
|
||||
Gain
(loss) from discontinued operations
|
1.62
|
(0.01
|
)
|
(0.14
|
)
|
|||||
Basic
income
|
$
|
3.99
|
$
|
1.66
|
$
|
0.50
|
||||
DILUTED
INCOME (LOSS) PER COMMON SHARE:
|
||||||||||
Income
from continuing operations
|
$
|
2.33
|
$
|
1.63
|
$
|
0.64
|
||||
Gain
(loss) from discontinued operations
|
1.58
|
(0.01
|
)
|
(0.14
|
)
|
|||||
Diluted
income
|
$
|
3.91
|
$
|
1.62
|
$
|
0.50
|
||||
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||
Basic
|
11,360
|
11,226
|
10,860
|
|||||||
Diluted
|
11,596
|
11,474
|
10,982
|
Common
Stock
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Income
|
Total
|
||||||||||||
BALANCE,
December 31, 2003
|
$
|
93
|
$
|
145,090
|
$
|
(117,943
|
)
|
$
|
757
|
$
|
27,997
|
|||||
Net
income
|
—
|
—
|
5,475
|
—
|
5,475
|
|||||||||||
Other
comprehensive, net of tax:
|
||||||||||||||||
Foreign
currency translation adjustments
|
—
|
—
|
—
|
1,085
|
1,085
|
|||||||||||
Unrealized
gain on financial instruments
|
—
|
—
|
—
|
97
|
97
|
|||||||||||
Comprehensive
income
|
—
|
—
|
5,475
|
1,182
|
6,657
|
|||||||||||
Issuance
of common stock for conversion and exchange of subordinated debt
and
warrants (1,317,700)
|
13
|
7,527
|
—
|
—
|
7,540
|
|||||||||||
Issuance
of common stock to unaffiliated private investors
(480,000)
|
5
|
4,230
|
—
|
—
|
4,235
|
|||||||||||
Issuance
of common stock to non-employee directors (33,966)
|
1
|
328
|
—
|
—
|
329
|
|||||||||||
Exercise
of stock options (8,782)
|
—
|
27
|
—
|
—
|
27
|
|||||||||||
BALANCE,
December 31, 2004
|
112
|
157,202
|
(112,468
|
)
|
1,939
|
46,785
|
||||||||||
Net
income
|
—
|
—
|
18,586
|
—
|
18,586
|
|||||||||||
Other
comprehensive, net of tax:
|
||||||||||||||||
Foreign
currency translation adjustments
|
—
|
—
|
—
|
(1,468
|
)
|
(1,468
|
)
|
|||||||||
Unrealized
gain on financial instruments
|
—
|
—
|
—
|
57
|
57
|
|||||||||||
Comprehensive
income (loss)
|
—
|
—
|
18,586
|
(1,411
|
)
|
17,175
|
||||||||||
Issuance
of common stock to non-employee directors (6,672)
|
—
|
75
|
—
|
—
|
75
|
|||||||||||
Exercise
of stock options (108,296)
|
1
|
719
|
—
|
—
|
720
|
|||||||||||
BALANCE,
December 31, 2005
|
113
|
157,996
|
(93,882
|
)
|
528
|
64,755
|
||||||||||
Net
income
|
—
|
—
|
45,343
|
—
|
45,343
|
|||||||||||
Other
comprehensive, net of tax:
|
||||||||||||||||
Foreign
currency translation adjustments
|
—
|
—
|
—
|
1,577
|
1,577
|
|||||||||||
Comprehensive
income
|
—
|
—
|
45,343
|
1,577
|
46,920
|
|||||||||||
Issuance
of common stock to non-employee directors (3,768)
|
—
|
75
|
—
|
—
|
75
|
|||||||||||
Exercise
of stock options (208,722)
|
2
|
1,323
|
—
|
—
|
1,325
|
|||||||||||
Stock-based
compensation expense
|
—
|
308
|
—
|
—
|
308
|
|||||||||||
BALANCE,
December 31, 2006
|
$
|
115
|
$
|
159,702
|
$
|
(48,539
|
)
|
$
|
2,105
|
$
|
113,383
|
2006
|
2005
|
2004
|
||||||||
OPERATING
ACTIVITIES:
|
||||||||||
Net
income
|
$
|
45,343
|
$
|
18,586
|
$
|
5,475
|
||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||||
(Gain)
loss from discontinued operations
|
(126
|
)
|
114
|
1,511
|
||||||
Tax
benefit of advances to and investments in discontinued
operations
|
(18,244 |
)
|
—
|
—
|
||||||
Depreciation
and amortization
|
2,721
|
2,900
|
3,232
|
|||||||
Deferred
tax benefit
|
(1,331
|
)
|
—
|
—
|
||||||
Amortization
of deferred financing costs
|
123
|
340
|
798
|
|||||||
Provision
for doubtful accounts
|
1,065
|
827
|
567
|
|||||||
Stock-based
compensation
|
308
|
—
|
—
|
|||||||
Issuance
of non-employee director shares
|
75
|
75
|
329
|
|||||||
Loss
on disposals of property, plant, and equipment
|
—
|
—
|
10
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Accounts
receivable
|
(18,898
|
)
|
(17,667
|
)
|
(11,199
|
)
|
||||
Inventories
|
(3,496
|
)
|
(4,579
|
)
|
(7,288
|
)
|
||||
Prepaid
expenses and other
|
(1,390
|
)
|
839
|
285
|
||||||
Other
assets
|
(16
|
)
|
(12
|
)
|
(864
|
)
|
||||
Accounts
payable
|
12,090
|
9,952
|
1,271
|
|||||||
Accrued
liabilities and other
|
(343
|
)
|
4,210
|
1,501
|
||||||
Net
cash provided by (used in) operating activities from continuing
operations
|
17,881
|
15,585
|
(4,372
|
)
|
||||||
Net
cash provided by (used in) operating activities from discontinued
operations
|
247
|
(2,225
|
)
|
(1,341
|
)
|
|||||
Net
cash provided by (used in) operating activities
|
18,128
|
13,360
|
(5,713
|
)
|
||||||
INVESTING
ACTIVITIES:
|
||||||||||
Purchases
of property, plant, and equipment
|
(12,564
|
)
|
(1,425
|
)
|
(695
|
)
|
||||
Proceeds
from sale of property, plant, and equipment
|
98
|
—
|
15
|
|||||||
Payments
received on notes receivables
|
604
|
227
|
122
|
|||||||
Net
cash used in investing activities from continuing
operations
|
(11,862
|
)
|
(1,198
|
)
|
(558
|
)
|
||||
Net
cash provided by investing activities from discontinued
operations
|
25
|
1,421
|
4,454
|
|||||||
Net
cash (used in) provided by investing activities
|
(11,837
|
)
|
223
|
3,896
|
||||||
FINANCING
ACTIVITIES:
|
||||||||||
Net
borrowings under senior credit facility
|
—
|
6,300
|
—
|
|||||||
(Payments)
borrowings under junior credit facility
|
(5,000
|
)
|
5,707
|
—
|
||||||
Payments
on long-term obligations
|
(1,603
|
)
|
(1,223
|
)
|
(3,542
|
)
|
||||
Net
(payments) borrowings under former credit facility
|
—
|
(18,903
|
)
|
3,093
|
||||||
Borrowings
under long-term obligations
|
329
|
—
|
2,039
|
|||||||
Additions
to deferred financing costs
|
(5
|
)
|
(389
|
)
|
(522
|
)
|
||||
Termination
of interest rate swap
|
—
|
57
|
96
|
|||||||
Proceeds
from issuance of common stock
|
—
|
—
|
4,235
|
|||||||
Proceeds
from exercise of stock options
|
1,325
|
720
|
27
|
|||||||
Net
cash (used in) provided by financing activities from continuing
operations
|
(4,954
|
)
|
(7,731
|
)
|
5,426
|
|||||
Net
cash used in financing activities from discontinued
operations
|
—
|
(2,511
|
)
|
(7,910
|
)
|
|||||
Net
cash used in financing activities
|
(4,954
|
)
|
(10,242
|
)
|
(2,484
|
)
|
||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY
INVESTMENTS
|
697
|
(557
|
)
|
293
|
||||||
NET
CHANGE IN CASH AND TEMPORARY INVESTMENTS
|
2,034
|
2,784
|
(4,008
|
)
|
||||||
CASH
AND TEMPORARY INVESTMENTS, beginning of year
|
6,147
|
2,812
|
5,240
|
|||||||
CASH
AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS, beginning of
year
|
23
|
574
|
2,154
|
|||||||
CASH
AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS, end of
year
|
—
|
23
|
574
|
|||||||
CASH
AND TEMPORARY INVESTMENTS, end of year
|
$
|
8,204
|
$
|
6,147
|
$
|
2,812
|
||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||
Debt
conversion
|
$
|
—
|
$
|
—
|
$
|
7,540
|
||||
Cash
payments for interest
|
$
|
3,897
|
$
|
3,875
|
$
|
4,173
|
||||
Cash
payments for income taxes
|
$
|
3,477
|
$
|
865
|
$
|
815
|
1.
|
ORGANIZATION
AND NATURE OF OPERATIONS
|
2.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
|
2006
|
2005
|
||||||
Chassis
|
$
|
3,596
|
$
|
2,346
|
|||
Raw
materials
|
18,767
|
16,654
|
|||||
Work
in process
|
12,566
|
10,989
|
|||||
Finished
goods
|
8,226
|
8,329
|
|||||
$
|
43,155
|
$
|
38,318
|
2006
|
2005
|
||||||
Land
and improvements
|
$
|
3,247
|
$
|
1,768
|
|||
Buildings
and improvements
|
24,389
|
19,298
|
|||||
Machinery
and equipment
|
15,476
|
12,427
|
|||||
Furniture
and fixtures
|
5,393
|
5,157
|
|||||
Software
costs
|
6,695
|
6,420
|
|||||
Construction
in progress
|
2,228
|
—
|
|||||
57,428
|
45,070
|
||||||
Less
accumulated depreciation
|
(29,901
|
)
|
(27,627
|
)
|
|||
$
|
27,527
|
$
|
17,443
|
2006
|
2005
|
||||||
Accrued
wages, commissions, bonuses, and benefits
|
$
|
4,414
|
$
|
4,153
|
|||
Accrued
income taxes
|
1,560
|
1,407
|
|||||
Other
|
7,295
|
4,261
|
|||||
$
|
13,269
|
$
|
9,821
|
2005
|
2004
|
||||||
(in
thousands, except per share data)
|
|||||||
Net
income available to common stockholders, as reported
|
$
|
18,586
|
$
|
5,475
|
|||
Deduct:
Total stock-based employee compensation expense determined under
fair
value based method for all awards, net of related tax
effects
|
(347
|
)
|
(262
|
)
|
|||
Net
income available to common stockholders, pro forma
|
$
|
18,239
|
$
|
5,213
|
|||
Income
per common share:
|
|||||||
Basic,
as reported
|
$
|
1.66
|
$
|
0.50
|
|||
Basic,
pro forma
|
$
|
1.62
|
$
|
0.48
|
|||
Diluted,
as reported
|
$
|
1.62
|
$
|
0.50
|
|||
Diluted,
pro forma
|
$
|
1.59
|
$
|
0.48
|
2006
|
2005
|
||||||
Accrual
at beginning of the year
|
$
|
801
|
$
|
665
|
|||
Provision
|
1,716
|
1,744
|
|||||
Settlement
|
(1,678
|
)
|
(1,608
|
)
|
|||
Accrual
at end of year
|
$
|
839
|
$
|
801
|
3.
|
LONG-TERM
OBLIGATIONS
|
2006
|
2005
|
||||||
Outstanding
borrowings under Senior Credit Facility
|
$
|
4,900
|
$
|
6,300
|
|||
Outstanding
borrowings under Junior Credit Facility
|
5,000
|
10,000
|
|||||
Mortgage
notes payable, weighted average interest rate of 8.25%, payable in
monthly
installments, maturing in 2009
|
1,844
|
1,901
|
|||||
Equipment
notes payable, weighted average interest rate of 8.49%, payable in
monthly
installments, maturing 2007 to 2011
|
416
|
187
|
|||||
Other
notes payable, maturing in 2006
|
—
|
10
|
|||||
12,160
|
18,398
|
||||||
Less
current portion
|
(1,623
|
)
|
(1,595
|
)
|
|||
$
|
10,537
|
$
|
16,803
|
2007
|
$
|
1,623
|
||
2008
|
6,593
|
|||
2009
|
3,222
|
|||
2010
|
715
|
|||
2011
|
7
|
|||
$
|
12,160
|
4.
|
RELATED
PARTY TRANSACTIONS
|
5.
|
STOCK-BASED
COMPENSATION PLANS
|
2006
|
2005
|
2004
|
|||||||||||||||||
Shares
Under
Option
|
Weighted
Average
Exercise
Price
|
Shares
Under
Option
|
Weighted
Average
Exercise
Price
|
Shares
Under
Option
|
Weighted
Average
Exercise
Price
|
||||||||||||||
Outstanding
at Beginning of Period
|
574
|
$
|
15.92
|
805
|
$
|
15.46
|
745
|
$
|
19.90
|
||||||||||
Granted
|
—
|
—
|
—
|
—
|
340
|
8.31
|
|||||||||||||
Exercised
|
(216
|
)
|
6.90
|
(108
|
)
|
6.67
|
(9
|
)
|
3.15
|
||||||||||
Forfeited
and cancelled
|
(54
|
)
|
43.60
|
(123
|
)
|
20.96
|
(271
|
)
|
17.99
|
||||||||||
Outstanding
at End of Period
|
304
|
$
|
17.39
|
574
|
$
|
15.92
|
805
|
$
|
15.46
|
||||||||||
Options
exercisable at year end
|
138
|
$
|
28.39
|
321
|
$
|
21.90
|
455
|
$
|
21.12
|
||||||||||
Weighted
average fair value of options granted
|
$
|
—
|
$
|
—
|
$
|
3.65
|
Exercise
Price Range
|
Shares
Under
Option
|
Weighted
Average
Exercise
Price of
Options
Outstanding
|
Weighted
Average
Remaining
Life
|
Options
Exercisable
|
Weighted
Average
Exercise
Price of
Shares
Exercisable
|
|||||||||||||||
$ |
3.05
|
-
|
$ |
3.37
|
6
|
$
|
3.05
|
4.9
|
6
|
$
|
3.05
|
|||||||||
8.31
|
10.94
|
199
|
8.40
|
7.1
|
33
|
8.87
|
||||||||||||||
20.63
|
22.50
|
42
|
20.63
|
1.7
|
42
|
20.63
|
||||||||||||||
32.50
|
35.31
|
35
|
35.29
|
1.5
|
35
|
35.29
|
||||||||||||||
49.06
|
73.13
|
20
|
69.27
|
0.4
|
20
|
69.27
|
||||||||||||||
75.63
|
78.75
|
2
|
77.19
|
0.4
|
2
|
77.19
|
||||||||||||||
Total
|
304
|
$
|
17.39
|
5.2
|
138
|
$
|
28.39
|
6.
|
COMMITMENTS
AND CONTINGENCIES
|
2007
|
$
|
1,011
|
||
2008
|
655
|
|||
2009
|
414
|
|||
2010
|
352
|
|||
2011
|
168
|
|||
Thereafter
|
384
|
|||
$
|
2,984
|
7.
|
INCOME
TAXES
|
2006
|
2005
|
2004
|
||||||||
Current:
|
||||||||||
Federal
|
$
|
—
|
$
|
423
|
$
|
—
|
||||
State
|
1,426
|
1,647
|
317
|
|||||||
Foreign
|
2,359
|
866
|
423
|
|||||||
3,785
|
2,936
|
740
|
||||||||
Deferred:
|
||||||||||
Federal
|
6,003
|
—
|
—
|
|||||||
State
|
1,479
|
—
|
—
|
|||||||
Change
in valuation allowance
|
(8,813
|
)
|
—
|
—
|
||||||
(1,331
|
)
|
—
|
—
|
|||||||
$
|
2,454
|
$
|
2,936
|
$
|
740
|
2006
|
2005
|
2004
|
||||||||
Federal
statutory tax rate
|
35.0
|
%
|
34.0
|
%
|
34.0
|
%
|
||||
State
taxes, net of federal tax benefit
|
3.2
|
%
|
7.6
|
%
|
4.0
|
%
|
||||
Change
in deferred tax asset valuation allowance
|
(29.9
|
)%
|
(30.6
|
%)
|
(34.0
|
%)
|
||||
Excess
of foreign tax over US tax on foreign income
|
1.3
|
%
|
0.6
|
%
|
4.9
|
%
|
||||
Other
|
(1.3
|
)%
|
2.0
|
%
|
0.7
|
%
|
||||
Effective
tax rate
|
8.3
|
%
|
13.6
|
%
|
9.6
|
%
|
2006
|
2005
|
||||||
Deferred
tax assets:
|
|||||||
Allowance
for doubtful accounts
|
$
|
80
|
$
|
51
|
|||
Accruals
and reserves
|
3,162
|
2,160
|
|||||
Net
operating loss carryforward
|
16,697
|
5,484
|
|||||
Deductible
goodwill and impairment charges
|
52
|
58
|
|||||
Other
|
362
|
628
|
|||||
Total
deferred tax assets
|
20,353
|
8,381
|
|||||
Less
valuation allowance
|
—
|
(7,638
|
)
|
||||
Net
deferred tax asset
|
20,353
|
743
|
|||||
Deferred
tax liabilities:
|
|||||||
Property,
plant, and equipment
|
613
|
743
|
|||||
Total
deferred tax liabilities
|
613
|
743
|
|||||
Net
deferred tax asset
|
$
|
19,740
|
$
|
—
|
8.
|
PREFERRED
STOCK
|
9.
|
EMPLOYEE
BENEFIT PLANS
|
10. |
GEOGRAPHIC
AND CUSTOMER INFORMATION
|
2006
|
2005
|
2004
|
|||||||||||||||||
Net
Sales
|
Long-Lived
Assets
|
Net
Sales
|
Long-Lived
Assets
|
Net
Sales
|
Long-Lived
Assets
|
||||||||||||||
North
America
|
$
|
333,300
|
$
|
36,455
|
$
|
283,226
|
$
|
26,665
|
$
|
196,902
|
$
|
28,026
|
|||||||
Foreign
|
76,121
|
2,691
|
68,658
|
2,509
|
39,406
|
2,607
|
|||||||||||||
$
|
409,421
|
$
|
39,146
|
$
|
351,884
|
$
|
29,174
|
$
|
236,308
|
$
|
30,633
|
11.
|
DISCONTINUED
OPERATIONS
|
2006
|
2005
|
2004
|
||||||||||||||||||||||||||
Dist.
|
Towing
|
Total
|
Dist.
|
Towing
|
Total
|
Dist.
|
Towing
|
Total
|
||||||||||||||||||||
Net
Sales
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
11,460
|
$
|
—
|
$
|
11,460
|
$
|
37,810
|
$
|
—
|
$
|
37,810
|
||||||||||
Operating
income (loss)
|
—
|
—
|
—
|
(134
|
)
|
16
|
(118
|
)
|
(659
|
)
|
(111
|
)
|
(770
|
)
|
||||||||||||||
Income
(loss) before taxes
|
—
|
126
|
126
|
(114
|
)
|
—
|
(114
|
)
|
(1,244
|
)
|
(127
|
)
|
(1,371
|
)
|
||||||||||||||
Net
income (loss) from discontinued operations
|
$
|
—
|
$
|
18,370
|
$
|
18,370
|
(114
|
)
|
—
|
(114
|
)
|
(1,276
|
)
|
(235
|
)
|
(1,511
|
)
|
2005
|
||||||||||
Dist.
|
Towing
|
Total
|
||||||||
Cash
and temporary investments
|
$
|
23
|
$
|
—
|
$
|
23
|
||||
Accounts
receivable, net
|
1,774
|
401
|
2,175
|
|||||||
Inventories
|
187
|
—
|
187
|
|||||||
Prepaid
expenses and other current assets
|
37
|
—
|
37
|
|||||||
Current
assets of discontinued operations held for sale
|
$
|
2,021
|
$
|
401
|
$
|
2,422
|
||||
Property,
plant and equipment
|
$
|
—
|
$
|
647
|
$
|
647
|
||||
Noncurrent
assets of discontinued operations held for sale
|
$
|
—
|
$
|
647
|
$
|
647
|
||||
Current
portion of long-term debt
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Other
current liabilities
|
273
|
5,971
|
6,244
|
|||||||
Current
liabilities of discontinued operations held for sale
|
$
|
273
|
$
|
5,971
|
$
|
6,244
|
||||
Long-term
debt
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Noncurrent
liabilities of discontinued operations held for sale
|
$
|
—
|
$
|
—
|
$
|
—
|
12.
|
QUARTERLY
FINANCIAL INFORMATION
(UNAUDITED)
|
Net
Sales
|
Operating
Income
|
Gain
(Loss) From Discontinued Operations
|
Net
Income(1)
|
Basic
Income Per Share
|
Diluted
Income Per Share
|
||||||||||||||
2006
|
|||||||||||||||||||
First
Quarter
|
$
|
93,436
|
$
|
7,561
|
$
|
—
|
$
|
5,883
|
$
|
0.52
|
$
|
0.51
|
|||||||
Second
Quarter
|
91,923
|
7,461
|
—
|
5,542
|
0.49
|
0.48
|
|||||||||||||
Third
Quarter
|
107,364
|
8,504
|
—
|
6,686
|
0.59
|
0.58
|
|||||||||||||
Fourth
Quarter
|
116,699
|
9,420
|
18,370
|
27,232
|
2.39
|
2.34
|
|||||||||||||
Total
|
$
|
409,421
|
$
|
32,945
|
$
|
18,370
|
$
|
45,343
|
$
|
3.99
|
$
|
3.91
|
|||||||
2005
|
|||||||||||||||||||
First
Quarter
|
$
|
76,896
|
$
|
3,476
|
$
|
(46
|
)
|
$
|
2,025
|
$
|
0.19
|
$
|
0.18
|
||||||
Second
Quarter
|
92,938
|
7,302
|
(34
|
)
|
5,165
|
0.46
|
0.45
|
||||||||||||
Third
Quarter
|
89,480
|
7,214
|
(30
|
)
|
5,422
|
0.49
|
0.47
|
||||||||||||
Fourth
Quarter
|
92,570
|
7,656
|
(4
|
)
|
5,974
|
0.52
|
0.52
|
||||||||||||
Total
|
$
|
351,884
|
$
|
25,648
|
$
|
(114
|
)
|
$
|
18,586
|
$
|
1.66
|
$
|
1.62
|
(1) |
Net
income for the fourth quarter of 2006 was effected by the recognition
of a
deferred tax asset as described in Note
7.
|
Balance
at
Beginning
of
Period
|
Charged
to
Expenses
|
Accounts
Written
Off
|
Balance
at
End
of
Period
|
||||||||||
(In
Thousands)
|
|||||||||||||
Year
ended December 31, 2004:
|
|||||||||||||
Deduction
from asset accounts:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
1,062
|
567
|
(513
|
)
|
$
|
1,116
|
||||||
Year
ended December 31, 2005
|
|||||||||||||
Deduction
from asset accounts:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
1,116
|
827
|
(109
|
)
|
$
|
1,834
|
||||||
Year
ended December 31, 2006
|
|||||||||||||
Deduction
from asset accounts:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
1,834
|
1,065
|
(411
|
)
|
$
|
2,488
|
||||||
Balance
at
Beginning
of
Period
|
Charged
to
Expense
|
Claims
|
Balance
at
End
of Period
|
||||||||||
(In
Thousands)
|
|||||||||||||
Year
ended December 31, 2004:
|
|||||||||||||
Product
Warranty Reserve:
|
$
|
639
|
1,520
|
(1,494
|
)
|
$
|
665
|
||||||
Year
ended December 31, 2005:
|
|||||||||||||
Product
Warranty Reserve:
|
$
|
665
|
1,744
|
(1,608
|
)
|
$
|
801
|
||||||
Year
ended December 31, 2006:
|
|||||||||||||
Product
Warranty Reserve:
|
$
|
801
|
1,716
|
(1,678
|
)
|
$
|
839
|
Balance
at
Beginning
of
Period
|
Additions
(Reductions)
|
Balance
at
End
of Period
|
||||||||
(In
Thousands)
|
||||||||||
Year
ended December 31, 2004:
|
||||||||||
Deferred
Tax Valuation Allowance:
|
$
|
13,299
|
2,889
|
$
|
16,188
|
|||||
Year
ended December 31, 2005:
|
||||||||||
Deferred
Tax Valuation Allowance:
|
$
|
16,188
|
(7,375
|
)
|
$
|
8,813
|
||||
Year
ended December 31, 2006:
|
||||||||||
Deferred
Tax Valuation Allowance:
|
$
|
8,813
|
(8,813
|
)
|
$
|
0
|
Note: |
The
Allowance for Doubtful Accounts and Product Warranty Reserve tables
above
reflect activity for continuing operations for the years ended December
31, 2006, 2005 and 2004. The Deferred Tax Valuation Allowance table
reflects consolidated operations for all periods
presented.
|
MILLER INDUSTRIES, INC. | ||
|
|
|
By: | /s/ Jeffrey I. Badgley | |
Jeffrey
I. Badgley
President,
Co-Chief Executive Officer and
Director
|
Signature
|
Title
|
|
/s/
William G. Miller
|
Chairman
of the Board of Directors and Co-Chief
|
|
William
G. Miller
|
Executive Officer | |
/s/
Jeffrey I. Badgley
|
President,
Co-Chief Executive Officer and Director
|
|
Jeffrey I. Badgley | ||
/s/
J. Vincent Mish
|
Executive
Vice President, Treasurer and Chief Financial Officer
|
|
J.
Vincent Mish
|
(Principal
Financial and Accounting Officer)
|
|
/s/
A. Russell Chandler, III
|
Director
|
|
A.
Russell Chandler, III
|
||
/s/
Paul E. Drack
|
Director
|
|
Paul
E. Drack
|
||
/s/
Richard H. Roberts
|
Director
|
|
Richard
H. Roberts
|
Exhibit
Number
|
Description
|
|
21
|
Subsidiaries
of the Registrant
|
|
23.1
|
Consent
of Joseph Decosimo and Company, PLLC
|
|
24
|
Power
of Attorney (see signature page)
|
|
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 Rules 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
|