CHATTANOOGA, Tenn.,
March 21,
2024 /PRNewswire/ -- Miller Industries, Inc. (NYSE:
MLR) ("Miller Industries" or the "Company"), the World's Largest
Manufacturer of Towing and Recovery Equipment, today responded to a
public statement issued by Advisory Research, a shareholder in
Miller Industries, calling on the Miller Industries Board of
Directors (the "Board") to form a special committee and conduct a
strategic review process.
Ted Ashford, Lead Independent
Director commented, "Our Board routinely reviews our corporate
strategy and is willing to discuss and challenge management's plans
for value creation. At this time, the Board believes that the
execution of our current plan and growth strategy, which has driven
48.4% in total shareholder return over the past year, is the best
means to maximize long-term shareholder value and drive continued
positive change. We're disappointed, but perhaps not surprised that
after months of earnest engagement, Advisory Research has concluded
that it is not willing to put its thesis to a vote to shareholders,
but has instead decided to make a self-serving and short-sighted
public complaint, with spurious allegations and no credible path
for long-term value creation."
"We welcome engagement with our shareholders and are always
looking for ways to maximize value at Miller Industries. Thus far,
Advisory Research's interactions with the Company have been
consistently focused on near-term issues and share price
performance. We are surprised by the persistent urgency in which
they have insisted we move, particularly in light of the Company's
share price performance over the past year. It appears that
Advisory Research is operating based on faulty assumptions about
the Company's fundamentals," continued Mr. Ashford.
The Miller Industries management team and Board have been in
regular dialogue with Advisory Research since it initiated its
position in August 2022. The
management team has regularly made themselves available both in
person at conferences, as well as virtually, scheduling calls with
the Advisory Research team following quarterly earnings. In an
effort to continue to engage in good faith, the Company also
facilitated multiple Board-level meetings between Advisory Research
and Miller Industries' Lead Independent Director, Ted Ashford, and Chair of the Nominating &
Governance Committee, Leigh Walton.
During these interactions, Advisory Research provided numerous and
shifting critiques about Miller Industries, including ideas on
strategy, margin expansion and leadership changes. Ultimately,
Advisory Research plainly stated that its desire was for the
Company to be sold. After the meetings, the two directors shared
Advisory Research's perspectives with the entire Board for
consideration.
Additionally, Advisory Research put forward two names for the
Company to consider as potential additions to the Board. The
Company thoroughly considered the candidates and conducted formal
evaluations consisting of issuing and reviewing questionnaires,
facilitating site visits with management and holding interviews
with multiple Board members. Following the completion of that
process, the Nominating & Governance Committee, as well as the
full Board, determined the two candidates that Advisory Research
put forth did not add any incremental value or skills beyond those
the Company already has on its recently refreshed Board of
Directors.
Mr. Ashford concluded, "We are proud of the current state of our
business. Our backlog remains at near-record levels and our
management team has been able to drive full year records for both
net income and EPS in 2023, with high single digit growth expected
on the horizon in 2024. We believe the Company and this management
team, led by Chief Executive Officer William G. Miller, II., is well positioned to
continue delivering excellent financial results, particularly given
the strong macroeconomic backdrop ahead and the oversight of a
highly effective Board of Directors."
About Miller Industries
Miller Industries is The World's Largest Manufacturer of Towing
and Recovery Equipment®, and markets its towing and recovery
equipment under a number of well- recognized brands, including
Century®, Vulcan®, Chevron™, Holmes®, Challenger®, Champion®,
Jige™, Boniface™, Titan® and Eagle®.
View original
content:https://www.prnewswire.com/news-releases/miller-industries-issues-statement-in-response-to-shareholder-letter-302096264.html
SOURCE Miller Industries, Inc.