MILLER INDUSTRIES INC /TN/
DEF 14A, 2000-08-14
TRUCK & BUS BODIES
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SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934

 

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/X/         Definitive Proxy Statement

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/_/          Soliciting Material Pursuant to Section 240.14a-12

                 MILLER INDUSTRIES, INC.                
(Name of Registrant as Specified in its Charter)

                                                           N/A                                                             
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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8503 Hilltop Drive,
Ooltewah, Tennessee 37363
(423) 238-4171

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

          The Annual Meeting of Shareholders of Miller Industries, Inc. (the "Company") will be held at 10:00 a.m. (Eastern Time), on Monday, September 11, 2000, at the Hilton Northeast Atlanta, 5993 Peachtree Industrial Boulevard, Norcross, Georgia 30092, for the following purposes:

1.

To elect five (5) directors to hold office for a term of one (1) year or until their successors are duly elected and qualified; and

2.

To transact such other business as may properly come before the meeting or any adjournment thereof.

          Only shareholders of record at the close of business on August 1, 2000 are entitled to notice of and to vote at the Annual Meeting. Your attention is directed to the Proxy Statement accompanying this notice for a complete statement regarding matters to be acted upon at the Annual Meeting.

By order of the Board of Directors,



Frank Madonia
Secretary

 

Atlanta, Georgia
August 11, 2000

We urge you to attend the Annual Meeting. Whether or not you plan to attend, please complete, date and sign the enclosed proxy card and return it in the enclosed postage-paid envelope. You may revoke the proxy at any time before it is voted.

 


 

MILLER INDUSTRIES, INC.
8503 Hilltop Drive,
Ooltewah, Tennessee 37363
(423) 238-4171

PROXY STATEMENT FOR
ANNUAL MEETING OF SHAREHOLDERS

          The accompanying proxy is solicited by the Board of Directors of Miller Industries, Inc. (the "Company") for use at the Annual Meeting of Shareholders to be held at the Hilton Northeast Atlanta, 5993 Peachtree Industrial Boulevard, Norcross, Georgia 30092, on Monday, September 11, 2000, at 10:00 a.m. (Eastern Time), and any adjournment thereof, for the purposes set forth in the foregoing Notice of Annual Meeting of Shareholders. This proxy material was first mailed to shareholders on or about August 11, 2000.

          A shareholder who signs and returns a proxy may revoke the same at any time before the authority granted thereby is exercised by attending the Annual Meeting and electing to vote in person, by filing with the Secretary of the Company a written revocation or by duly executing a proxy bearing a later date. Unless revoked, the shares represented by the proxy will be voted at the Annual Meeting. Where a choice is specified on the proxy, the shares represented thereby will be voted in accordance with such specifications. If no specification is made, such shares will be voted FOR the election of the five director nominees, and in the discretion of the proxy holders on any other matter that may properly come before the meeting.

          The Board of Directors knows of no other matters which are to be brought to a vote at the Annual Meeting. However, if any other matter properly does come before the Annual Meeting, the persons appointed in the proxy or their substitutes will vote in accordance with their best judgment on such matters.

          Only holders of the common stock of the Company, $0.01 par value per share (the "Common Stock"), at the close of business on August 1, 2000 are entitled to vote at the Annual Meeting. On such date, the Company had issued and outstanding 46,709,724 shares of Common Stock. Holders of the Common Stock will be entitled to one vote for each share of Common Stock so held, which may be given in person or by proxy duly authorized in writing.

          The cost of solicitation of proxies will be borne by the Company, including expenses in connection with preparing, assembling and mailing this Proxy Statement. Such solicitation will be made by mail, and also may be made by the Company's executive officers or employees personally or by telephone or telegram. The Company does not anticipate paying any compensation to any other party other than its regular employees for this solicitation of proxies, but may reimburse brokerage firms and others for their reasonable expenses in forwarding solicitation material to beneficial owners.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

          The following table sets forth, as of June 30, 2000, certain information with respect to (a) all shareholders known to be "beneficial owners" (as that term is defined in the rules of the Securities and Exchange Commission) of more than five percent of the Common Stock; and (b) the Common Stock "beneficially owned" (i) by each director or nominee for director, (ii) by the executive officers named in the Summary Compensation Table and (iii) all executive officers and directors of the Company as a group. Except as otherwise indicated, the shareholders listed in the table have sole voting and investment powers with respect to the Common Stock owned by them.


Name and Address of Beneficial Owner

 

Amount and Nature of Beneficial Ownership1

 

Percent of Class1

William G. Miller2

 

6,891,7913               

 

14.72%        

Jeffrey I. Badgley

 

426,0064               

 

*            

Frank Madonia

 

369,7565               

 

*            

J. Vincent Mish

 

351,0066                

 

*            

James A. McKinney

 

49,9997                

 

*            

A. Russell Chandler, III

 

226,1238               

 

*            

Paul E. Drack

 

118,6239              

 

*            

Richard H. Roberts

 

109,62310            

 

*            

All Executive Officers and Directors as a Group
(11 persons)

 

8,542,92711           

 

18.29%      

____________________________

*

Less than one percent

1.

The Percent of Class column represents the percentage that the named person or group would beneficially own if such person or group, and only such person or group, exercised all currently exercisable options and rights to acquire shares of Common Stock held by such person or group.

2.

Mr. Miller's business address is Miller Industries, Inc., 3295 River Exchange Parkway, Suite 220, Norcross, Georgia 30092.

3.

Includes 546,444 shares held by the Miller Family Foundation, Inc., a Georgia non-profit corporation of which Mr. Miller is the sole director.

4.

Includes 349,429 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

5.

Includes 291,679 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

6.

Includes 272,929 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

7.

Includes 49,999 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

8.

Includes 25,500 shares which are held in trust for the benefit of Mr. Chandler's children and 114,623 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

9.

Includes 114,623 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

10.

Includes 99,623 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

11.

Includes 1,292,905 shares which are issuable pursuant to options which are exercisable within sixty days of the date set forth above.

 

 

PROPOSAL 1: ELECTION OF DIRECTORS

          Pursuant to the Company's Charter and Bylaws, the Board has fixed the number of directors at six. Under the terms of the Company's Charter and Bylaws, the members of the Board of Directors comprise a single class and at each annual meeting of shareholders all directors will be elected. The directors, if reelected, will serve until the annual meeting of shareholders in 2001. The Board may fill directorships resulting from vacancies or may increase the number of directors to as many as fifteen or decrease such number to as few as three directors. Executive officers are appointed annually and serve at the discretion of the Board of Directors.

          Unless contrary instructions are received, shares of Common Stock represented by duly executed proxies will be voted in favor of the election of the nominees named below. If for any reason a nominee is unable to serve as a director, it is intended that the proxies solicited hereby will be voted for such substitute nominee as the Board of Directors of the Company may propose. The Board of Directors has no reason to expect that the nominees will be unable to serve and, therefore, at this time it does not have any substitute nominees under consideration.

          The nominees for election shall be elected by a plurality of the votes cast by holders of the shares of Common Stock entitled to vote at the Annual Meeting. Shareholders have no right to vote cumulatively for directors, but rather each shareholder shall have one vote for each director for each share of Common Stock held by such shareholder.

          The following persons are the nominees for election to serve as directors. All five nominees are presently directors of the Company. Certain information relating to the nominees, which has been furnished to the Company by the individuals named, is set forth below. The Board has not named a sixth nominee for director, which will result in a vacancy on the Board until the Board names an additional nominee or reduces the size of the Board to five members.


Name of Director


Background Information

Jeffrey I. Badgley

Mr. Badgley, 48, has served as Chief Executive Officer of the Company since November 1997, as President of the Company since June 1996 and as a director since January 1996. In June 1997, he was named Co-Chief Executive Officer of the Company, a title he shared with Mr. Miller until November 1997. Mr. Badgley served as Vice President of the Company from 1994 to 1996, and as Chief Operating Officer of the Company from June 1996 to June 1997. In addition, Mr. Badgley has served as President of Miller Industries Towing Equipment Inc. since 1996. Mr. Badgley served as Vice President-Sales of Miller Industries Towing Equipment Inc. from 1988 to 1996. He previously served as Vice President-Sales and Marketing of Challenger Wrecker Corporation ("Challenger Wrecker"), from 1982 until joining Miller Industries Towing Equipment Inc.

A. Russell Chandler, III

Mr. Chandler, 55, has served as a director of the Company since April 1994. He currently serves as Chairman of Amplified.Com, an internet music provider, and is founder and Chairman of Whitehall Group Ltd., a private investment firm based in Atlanta, Georgia. Mr. Chandler served as the Mayor of the Olympic Village for the Atlanta Committee for the Olympic Games from 1990 through August 1996. From 1987 to 1993, he served as Chairman of United Plastic Films, Inc., a manufacturer and distributor of plastic bags. He founded Qualicare, Inc., a hospital management company, in 1972 and served as President and Chief Executive Officer until its sale in 1983. In addition, Mr. Chandler serves on a number of community advisory boards, including the Wharton Graduate Advisory Board and the Georgia Tech Foundation Board of Trustees.

Paul E. Drack

Mr. Drack, 71, has served as a director of the Company since April 1994. Mr. Drack is also a director of Euramax International PLC. Mr. Drack retired in December 1993 as President and Chief Operating Officer of AMAX Inc., positions he held since August 1991. From 1985 to 1991, Mr. Drack served in various capacities for operating subsidiaries of AMAX Inc. including Chairman, President and Chief Executive Officer of Alumax Inc. and President of Kawneer Company. He was a director of AMAX Inc. from 1988 to 1993. Prior to its acquisition by Cyprus Minerals in November 1993, AMAX Inc. was a producer of aluminum and manufactured aluminum products with interests in domestic energy and gold production.

William G. Miller

Mr. Miller, 53, has served as Chairman of the Board since April 1994. He served as Chief Executive Officer of the Company from April 1994 until June 1997. In June 1997, he was named Co-Chief Executive Officer, a title he shared with the Company's President, Jeffrey I. Badgley until November 1997. Mr. Miller also served as President of the Company from April 1994 to June 1996. He served as Chairman of Miller Group, Inc., from August 1990 through May 1994, as its President from August 1990 to March 1993, and as its Chief Executive Officer from March 1993 until May 1994. Prior to 1987, Mr. Miller served in various management positions for Bendix Corporation, Neptune International Corporation, Wheelabrator-Frye Inc. and The Signal Companies, Inc.

Richard H. Roberts

Mr. Roberts, 46, has served as a director of the Company since April 1994. Mr. Roberts currently serves as Senior Vice President, Secretary and General Counsel of Forward Air Corporation, a position he has held since August, 1994. He also holds similar positions with Landair Corporation which he has held since September, 1998. Mr. Roberts was partner in the law firm of Baker, Worthington, Crossley & Stansberry, counsel to the Company, from January 1991 to August 1994 and prior thereto was an associate of the firm. Mr. Roberts has served as a director of Landair Services, Inc. since May 1995.

          The Board of Directors held six meetings during the fiscal year ended April 30, 2000. The Board of Directors has standing Audit, Compensation and Nominating Committees. The Audit Committee is comprised of Messrs. Chandler, Drack and Roberts. The Audit Committee meets with the Company's independent auditors to review the Company's financial statements and it is the function of this committee to ensure that the Company's financial statements accurately reflect the Company's financial position and results of operations. The Audit Committee held four meetings during fiscal 2000.

          The purpose of the Compensation Committee is to establish, among other things, salaries, bonuses and other compensation for the Company's officers, and to administer the Company's stock option and other employee benefit plans. Messrs. Chandler, Drack and Roberts comprise the Compensation Committee, which met six times during fiscal 2000.

          The Nominating Committee is comprised of Messrs. Chandler, Drack and Miller. The Nominating Committee was established to evaluate candidates for service as directors to the Company. The Nominating Committee held one meeting during fiscal 2000. The Nominating Committee will consider candidates recommended by shareholders. Shareholder recommendations must comply with the procedures for nominations set forth in Article I, Section 1.2, of the Company's Bylaws.

          All incumbent directors attended more than 75% of the meetings of the Board of Directors and the respective committees of which they are members.

 

          THE BOARD UNANIMOUSLY RECOMMENDS THAT THE SHAREHOLDERS VOTE "FOR" THE ELECTION OF EACH OF THE FIVE DIRECTOR NOMINEES.

EXECUTIVE COMPENSATION

Summary Compensation Table

          The following table sets forth certain information for each of the last three fiscal years of the Company concerning compensation paid by the Company and its subsidiaries to the Company's Chief Executive Officer and to each of the Company's other most highly compensated executive officers as of the end of fiscal 2000 who earned in excess of $100,000 in salary and bonus during fiscal 2000 (collectively, the "Named Executive Officers").

 

 



Annual Compensation(1)

   Long Term
  Compensation
     Awards




Name and Principal Position




Year  



Salary  
   ($)    



Bonus  
   ($)    

Securities
Underlying
Options
     (#)     

All
Other
Compensation
       ($)       

William G. Miller(2)(3)

2000 

$ 180,000  

-     

-

-

    Chairman

1999 

180,000  

-     

-

-

 

1998 

162,500  

$129,167 

-

-

 

 

 

 

 

 

Jeffrey I. Badgley(2)

2000 

245,833  

-     

16,000   

$ 1,424(4)  

    President and Chief Executive Officer

1999 

191,667  

60,000 

120,000(5)

 1,653(4)  

 

1998 

162,500  

119,417 

35,000   

2,056(4)  

 

 

 

 

 

 

Frank Madonia(2)

2000 

178,333  

-     

12,000   

1,762(4)  

    Executive Vice President, Secretary and

1999 

145,625  

48,333 

90,000(5)

1,592(4)  

    General Counsel

1998 

132,500  

97,083 

22,000   

 1,292(4)  

 

 

 

 

 

 

J. Vincent Mish(2)

2000 

153,333  

-      

12,000   

1,312(4)  

    Vice President, Chief Financial Officer and

1999 

120,000  

48,333 

7,500   

1,205(4)  

    President of the Financial Services Group

1998 

120,000  

93,063 

22,000   

 1,167(4)  

 

 

 

 

 

 

James A. McKinney(6)

2000 

$245,353  

-      

200,000   

1,458(4)  

 

1999 

-      

-      

-    

-

 

1998 

-      

-      

-    

-

_______________________

(1)

Excludes perquisites and other personal benefits aggregating less than $50,000 or 10% of the named executive officer's annual salary and bonus.

(2)

Bonus awards consist entirely of amounts earned in previous fiscal years which are paid incrementally to the executive officer in the year noted in accordance with the Company's bonus plan. No bonuses were awarded to executive officers based on performance during the 1998 fiscal year.

(3)

Mr. Miller served as Co-Chief Executive Officer with Mr. Badgley until November 10, 1997.

(4)

Consists of a matching contribution made to the executive's account in the Company's 401(k) Plan.

(5)

Issued in connection with employment agreements entered into in September 1998, as further described under the heading "Employment Contracts, Termination of Employment, Severance and Change-in-Control Arrangements" below.

(6)

In June 2000, Mr. McKinney resigned as President of the Company's towing services division, RoadOne, and as a Director of the Company.

 

 

 

Options Granted in Last Fiscal Year

          The following table summarizes certain information regarding stock options issued to the Named Executive Officers during fiscal 2000 under the Company's 1994 Stock Option and Incentive Plan (the "1994 Plan"). The hypothetical gains or "option spreads" that would exist for the respective options, based on assumed rates of annual compound stock appreciation of 5% and 10% from the date the options were granted over the full option term, are also reflected:

Option Grants in Last Fiscal Year

 

Individual Grants

    
    
    
    Name

Number of   
Securities    
Underlying   
Options Granted
(1) 

Percent of total
options granted
to employees in
     fiscal year  


Exercise or base 
price       
     ($/Sh)      



Expiration 
      date   

Potential realizable value at
assumed annual rates
of stock price appreciation
     for option term
(2) 

 

 

 

 

 

5%($)   

10%($)    

William G. Miller

0  

--    

--       

--    

--   

-     

Jeffrey I. Badgley

16,000  

2.18% 

2.1875       

10/26/2009

$  22,011 

$     55,781  

Frank Madonia

12,000  

1.64% 

2.1875       

10/26/2009

$  16,508 

$     41,836  

J. Vincent Mish

12,000  

1.64% 

2.1287       

10/26/2009

$  16,065 

$     40,711  

James A. McKinney

74,418  
125,582  

10.15% 
17.13
27.27% 

5.3750       
4.0000       

5/12/2009
5/12/2009

$ 251,556 
$ 315,911 
$ 567,467 

$    637,492  
$    800,581  
$  1,438,073  

___________________________

(1)

All options were granted pursuant to the 1994 Plan, have a term of ten years, and vest in one-fourth increments annually from the date of grant.

(2)

These amounts represent assumed rates of appreciation only. Actual gains, if any, on stock option exercises and holdings of Common Stock are dependent upon the future performance of the shares and overall market conditions. There can be no assurance that the amounts reflected in this table will be achieved.

 

 

Options Exercised in Last Fiscal Year, Fiscal Year End Option Values

          The following table summarizes certain information regarding option exercises during the fiscal year ended April 30, 2000 and year end option values of the Named Executive Officers. The Named Executive Officers did not exercise any options during the fiscal year.


Name

Number of securities underlying unexercised 
options at April 30, 2000 (No. of shares)    

Value of unexercised in-the-money options at  
April 30, 2000
(1)                       

Exercisable    

Unexercisable   

Exercisable   

Unexercisable    

William G. Miller

--    

--     

--     

--         

Jeffrey I. Badgley

321,929    

146,000     

$  119,208     

--         

Frank Madonia

271,929    

96,500     

$  119,208     

--         

J. Vincent Mish

251,304    

46,625     

$  119,208     

--         

James A. McKinney

--    

200,000     

--     

--         

__________________________

(1) Reflects the market value of the underlying securities at the closing price on the New York Stock Exchange on April 30, 2000 ($3.4375), less the exercise price.

Employment Contracts, Termination of Employment, Severance and Change-in-Control Arrangements

          In May 1999, the Company entered into an employment agreement with Mr. McKinney. The employment agreement provides for a three-year term, to be automatically extended at the next shareholders' meeting following the initial term, and at every shareholders' meeting thereafter unless within 10 days following such shareholders' meeting, the Company gives written notice that the employment agreement will not be extended. Notwithstanding these renewal provisions, the employment agreement will expire upon Mr. McKinney's 65th birthday. Under the employment agreement Mr. McKinney receives a base salary of $250,000, subject to annual review by the Board of Directors. Additionally, Mr. McKinney may participate in any bonus plans or other benefits generally available to executive officers of the Company. The Company may terminate Mr. McKinney for any reason upon written notice. However, if Mr. McKinney is terminated pursuant to a change in control (as defined in his change in control agreement described below) or for other than "just cause" (as defined in the employment agreement), 100% of Mr. McKinney's options to acquire Company stock granted pursuant to the Company's Stock Option and Incentive Plan will vest and become immediately exercisable, and the Company must pay Mr. McKinney his current base salary plus bonuses and health and life insurance benefits for a period of three years, or until the end of the term of the employment agreement, whichever is shorter. The employment agreement also provides for non-competition and confidentiality during employment and for a period ending two years from termination or expiration of the employment agreement (or one year if termination occurs pursuant to a change in control).


          In May 1999, the Company also entered into a change in control agreement with Mr. McKinney. The change in control agreement provides for a three-year term, to be automatically extended at the next shareholders' meeting following the initial term, and at every shareholders' meeting thereafter unless within 10 days following such shareholders' meeting, the Company gives written notice that the change in control agreement will not be extended. Notwithstanding these renewal provisions, the change in control agreement will expire upon Mr. McKinney's 65th birthday. Upon termination within 6 months prior to or 2 years after a change in control (as defined in the change in control agreement), Mr. McKinney is entitled to payment of then current salary, plus bonuses and incentives, and health and life insurance coverage for a period of three years following termination. In June 2000, Mr. McKinney resigned as President of the Company's towing services division, RoadOne, and as a Director of the Company.


          In September 1998, the Company entered into employment agreements with Messrs. Badgley and Madonia. Each employment agreement provides for a rolling three-year term, extended automatically each day for an additional day such that the remaining term of each employment agreement is three years. However, on each individual's 62nd birthday, the employment agreement ceases to extend automatically, and instead terminates three years from that date. The employment agreements provide for base salaries of $200,000 to Mr. Badgley, and $165,000 to Mr. Madonia, each subject to annual review by the Board of Directors. Additionally, each individual may participate in any bonus plans or other benefits generally available to executive officers of the Company. The Company may terminate Messrs. Badgley or Madonia pursuant to their respective employment agreements for any reason upon written notice. However, if termination is for other than "just cause" (as defined in the employment agreements), 100% of the terminated individual's options on Company stock granted pursuant to the Company's Stock Option and Incentive Plan will vest and become immediately exercisable, and the Company must pay the terminated individual his current base salary plus bonuses and health and life insurance benefits for a period of three years, or until the end of the term of the employment agreement, whichever is shorter. Finally, each employment agreement also provides for non-competition and confidentiality during employment and for a period ending two years from termination or expiration of the employment agreement (or one year if termination occurs pursuant to a change in control as defined in each individual's change in control agreement described below).


          In September 1998, the Company entered into change in control agreements with Messrs. Badgley and Madonia. Each change in control agreement provides for a rolling three-year term, extended automatically each day for an additional day such that the remaining term of each employment agreement is three years. However, on each individual's 62nd birthday, the employment agreement ceases to extend automatically, and instead terminates three years from that date. Upon termination within 6 months prior to or 2 years after a change in control (as defined in each respective change in control agreement), Messrs. Badgley and Madonia are entitled to payment of then current salary, plus bonuses and incentives, and health and life insurance coverage for a period of three years following termination.


          In July 1997, the Company entered into an employment agreement with Mr. Miller which provides for a base salary as agreed to by the Company and Mr. Miller from time to time, but which shall in any event be substantially the same as the base salary of the Chief Executive Officer of the Company. Mr. Miller also receives certain insurance and other benefits as are generally provided by the Company to its executive employees. Mr. Miller's employment agreement is for an indeterminate term and requires Mr. Miller to meet certain concurrent employment conditions with the Company or its affiliates. Employment may be terminated by either party upon three years written notice or for "cause," as defined in the employment agreement. The agreement also provides for non-competition by Mr. Miller for a period ending three years from termination of the agreement if the agreement is terminated by breach of Mr. Miller.


Compensation of Directors

          The members of the Board of Directors who are employees of the Company do not receive additional compensation for Board or committee service. Upon initial election to the Board, each non-employee director is granted an option to purchase 10,000 shares of Common Stock as of the date of becoming a director. In addition, on the first business day following each annual meeting of shareholders, each non-employee director receives an option to purchase a number of shares of the Company's common stock equal to $32,500 divided by the Black-Scholes value (as established by the Company's independent accountant) of an option to purchase one such share, and up to 2,000 additional shares based upon the earnings of the Company.

Compensation Committee Interlocks and Insider Participation


          During fiscal 2000, the Compensation Committee was comprised of Messrs. Chandler, Drack and Roberts, all of whom were non-employee directors.

Compensation Committee Report on Executive Compensation


          
Overview.
The Company's general compensation policies on executive officer compensation are administered by the Compensation Committee (the "Committee") of the Board of Directors; however, the Committee submits its determinations to the full Board for its comments and concurrence. All members of the Committee are non-employee directors. It is the responsibility of the Committee to determine whether the executive compensation policies are reasonable and appropriate, meet their stated objectives and effectively serve the best interests of the Company and its shareholders.

          The three components of executive officer compensation are base salary, annual cash bonus awards and stock option grants, except with respect to the Chairman, who declined any stock option award in fiscal 2000 as has been his custom in previous years. In addition to the Committee's determinations on base salary and bonus award, the Committee administers the 1994 Plan and recommends to the Board of Directors the options to be granted to executive officers.

          The Company believes that its executive compensation policy should be reviewed annually and should be reviewed in light of the Company's financial performance, its annual budget, its position within its industry sectors and the compensation policies of similar companies in its business sectors. The Committee believes that in addition to corporate performance, it is appropriate to consider in setting and reviewing executive compensation the level of experience and the responsibilities of each executive as well as the personal contributions a particular individual may make to the success of the corporate enterprise. Such qualitative factors as leadership skills, analytical skills, organization development, public affairs and civic involvement are deemed to be important qualitative factors to take into account in considering levels of compensation. No relative weight is assigned to these qualitative factors, which are applied subjectively by the Committee.

          During fiscal 1999, the Compensation Committee conducted an executive compensation study with the assistance of an independent consulting firm specializing in these matters. The Committee compared compensation packages, including salary, bonus and equity incentives, of executive management of other companies with those of the Company. The Committee noted that the compensation packages of the Company's executive officers were in general substantially below the averages reflected in this survey. As a result of this study, the Company began the incremental process of increasing the compensation of its executive officers by entering into the employment agreements described under "Employment Contracts, Termination of Employment, Severance and Change in Control Arrangements", providing for the salary increases and the option grants reflected in such agreements.

          Option Grants. The Company uses grants of options to better align the interests of the Company's officers and employees with the long-term interests of the Company and its shareholders. All options for the purchase of 500 or more shares generally vest in four equal annual installments, and all options for the purchase of fewer than 500 shares vest in two equal annual installments. All options are exercisable until the tenth anniversary of the grant date unless otherwise earlier terminated pursuant to the terms of the individual option agreement. During the 2000 fiscal year, the Company granted an aggregate of 733,284 options to employees and executive officers under the 1994 Plan. The Named Executive Officers received options for the purchase of an aggregate of 240,000 shares, or 30.08% of the total shares subject to option grants granted in the 2000 fiscal year under the 1994 Plan. The Committee strongly believes it is important for the non-executive officer employees of the Company to have a long-term equity interest in the Company.

          Salaries. During fiscal 2000, the Committee reviewed the salaries of all executive officers and the established levels of participation of those officers in the Company's Cash Bonus Plan and the 1994 Plan. In its review, the Committee discussed the performance of the executive officers with the Chief Executive Officer and further considered the compensation packages, employment agreements (as applicable) and existing stock options (as applicable) of each officer and of the Chief Executive Officer. The Committee's review of executive officer compensation included consideration of individual performance and contribution to the Company, a comparison to compensation paid to executive officers in companies of similar size in related industries, the financial performance of the Company, and other factors the Committee believed were relevant in making its determination.

         Employment Agreements. Each of Messrs. Badgley, Miller and Madonia is a party to an employment agreement with the Company or a subsidiary of the Company, which is described under "Employment Contracts, Termination of Employment, Severance and Change-in-Control Arrangements."

          Federal Income Tax Deductibility Limitation on Executive Compensation. Section 162(m) of the Internal Revenue Code was enacted as part of the 1993 Omnibus Budget Reconciliation Act ("OBRA") and generally disallows a corporate deduction for compensation over $1,000,000 paid to the Company's Chief Executive Officer or any other of the four highest compensated officers. The Committee continues to analyze the potential impact of this limitation. Under the regulations and the transition rules, executive compensation pursuant to the 1994 Plan should be qualifying "performance based" compensation and therefore be excluded from the $1,000,000 limit. Other forms of compensation provided by the Company, however, including base salary and amounts awarded under the Cash Bonus Plan, are not excluded from the limit. The Committee currently anticipates that substantially all compensation to be paid in future years will be deductible under Section 162(m) because of the spread between present levels of executive officer compensation and the limit under the regulation. In any event, the Committee believes that performance based compensation is desirable and can be structured in a manner to constitute qualifying as performance based compensation under Section 162(m).

Paul E. Drack
A. Russell Chandler, III
Richard H. Roberts
 

 

Performance Graph


          The following line graph compares the percentage change in the cumulative shareholder return of the Common Stock with The New York Stock Exchange Composite Index and the Standard & Poor's Heavy Trucks and Parts Index over the period of time from April 28, 1995 through April 28, 2000. The Common Stock was quoted on the Nasdaq Stock Market's National Market until December 19, 1995, and since that date has traded on the New York Stock Exchange. The respective returns assume reinvestment of dividends paid.

 

 

 

 

4/28/95

4/30/96

4/30/97

4/30/98

4/30/99

4/28/00

Miller Industries, Inc.

100

231

299

198

127

86

NYSE Composite Index

100

127

150

208

229

232

S&P Heavy Duty Trucks & Parts

100

111

138

215

244

187

 

 

 

COMPLIANCE WITH SECTION 16(a) OF THE
SECURITIES EXCHANGE ACT OF 1934

          Section 16(a) of the Securities Exchange Act of 1934 and the disclosure requirements of Item 405 of Regulation S-K require the directors and executive officers of the Company, and any persons holding more than 10% of any class of equity securities of the Company, to report their ownership of such equity securities and any subsequent changes in that ownership to the Securities and Exchange Commission, The New York Stock Exchange and the Company. Based solely on a review of the written statements and copies of such reports furnished to the Company by its executive officers and directors, the Company believes that during fiscal 2000 all Section 16(a) filing requirements applicable to its executive officers, directors and stockholders were complied with, and the Company is not aware of any filing delinquencies.

DEADLINES FOR SUBMISSION TO SHAREHOLDERS
OF PROPOSALS TO BE PRESENTED AT THE
2001 ANNUAL MEETING OF SHAREHOLDERS

          Any proposal intended to be presented for action at the 2001 Annual Meeting of Shareholders by any shareholder of the Company must be received by the Secretary of the Company not later than May 2, 2001 in order for such proposal to be considered for inclusion in the Company's Proxy Statement and proxy relating to its 2001 Annual Meeting of Shareholders. In the event that a proposal intended to be presented for action at the 2001 Annual Meeting of Shareholders by any shareholder of the Company is not received by the Secretary of the Company on or before July 16, 2001, then the management proxies would be allowed to use their discretionary voting authority if the proposal is raised at the annual meeting, whether or not the matter is discussed in the Proxy Statement. Nothing in this paragraph shall be deemed to require the Company to include any shareholder proposal which does not meet all the requirements for such inclusion established by the Securities and Exchange Commission at the time in effect.

METHOD OF COUNTING VOTES

          Unless a contrary choice is indicated, all duly executed proxies will be voted in accordance with the instructions set forth on the back side of the proxy card. Abstentions and "non-votes" will be counted for the purposes of determining a quorum. Abstentions and non-votes are treated as votes against the proposals presented to the shareholders other than the election of directors. Because directors are elected by a plurality of the votes cast, abstentions are not considered in the election. A "non-vote" occurs when a nominee holding shares for a beneficial owner votes on one proposal, but does not vote on another proposal because the nominee does not have discretionary voting power and has not received instructions from the beneficial owner.

MISCELLANEOUS

          It is important that proxies be returned promptly to avoid unnecessary expense. Therefore, shareholders who do not expect to attend in person are urged, regardless of the number of shares of stock owned, to date, sign and return the enclosed proxies promptly.

A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED APRIL 30, 2000 IS INCLUDED WITHIN THE ANNUAL REPORT PREVIOUSLY MAILED TO SHAREHOLDERS. COPIES OF EXHIBITS FILED WITH THE FORM 10-K ARE AVAILABLE UPON WRITTEN REQUEST UPON PAYMENT OF CHARGES APPROXIMATING THE COMPANY'S COST. REQUESTS SHOULD BE MADE IN WRITING TO FRANK MADONIA, EXECUTIVE VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL, MILLER INDUSTRIES, INC., 8503 HILLTOP DRIVE, OOLTEWAH, TENNESSEE 37363.

 

 

MILLER INDUSTRIES, INC.

This Proxy is Solicited by the Board of Directors for the Annual Meeting of
Shareholders to be Held on Monday, September 11, 2000

PROXY

          The undersigned shareholder of Miller Industries, Inc. hereby constitutes and appoints William G. Miller and Frank Madonia, or either of them, the true and lawful attorneys and proxies of the undersigned with full power of substitution and appointment, for and in the name, place and stead of the undersigned, to vote all of the undersigned's shares of Common Stock of Miller Industries, Inc., at the Annual Meeting of the Shareholders to be held at the Hilton Northeast Atlanta, 5993 Peachtree Industrial Boulevard, Norcross, Georgia 30092, on Monday, the 11th day of September, 2000, at 10:00 a.m., and at any and all adjournments thereof as follows:

(1)

FOR all of the following nominees (except as marked to the contrary below):

 

 

NOMINEES: Jeffrey I. Badgley, A. Russell Chandler, III, Paul E. Drack, William G. Miller and Richard H. Roberts.

 

WITHHOLD AUTHORITY to vote for all nominees listed.

 

 

(Instruction: To withhold authority to vote for any individual nominee, write that nominee's name in the space provided below.)

 

 

 

___________________________________
___________________________________
___________________________________
___________________________________

(2)

For the transaction of such other business as may lawfully come before the meeting, hereby revoking any proxies as to said shares heretofore given by the undersigned and ratifying and confirming all that said attorneys and proxies may lawfully do by virtue hereof.

 

 

          THE BOARD OF DIRECTORS FAVORS A VOTE "FOR" EACH OF THE NOMINEES LISTED ABOVE AND UNLESS INSTRUCTIONS TO THE CONTRARY ARE INDICATED IN THE SPACE PROVIDED, THE PROXY WILL BE SO VOTED.


          It is understood that this proxy confers discretionary authority in respect to matters not known or determined at the time of the mailing of the notice of the meeting to the undersigned.

          The undersigned hereby acknowledges receipt of the Notice of Annual Meeting of Shareholders dated August 11, 2000 and the Proxy Statement furnished therewith.

Dated and signed _______________________, 2000

___________________________________________

___________________________________________
(Signature should agree with the name(s) hereon. Executors, administrators, trustees, guardians and attorneys should so indicate when signing. For joint accounts each owner should sign. Corporations should sign their full corporate name by a duly authorized officer.)

 

         This proxy is revocable at or at any time prior to the meeting. Please sign and return this proxy to SunTrust Bank, Atlanta, P.O. Box 105649, Atlanta, Georgia 30348-9923, in the accompanying prepaid envelope.



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