ALFRED G. SMITH
Member Florida Bar
(305) 379-9147 Direct Telephone
(305) 381-9982 Direct Facsimile
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E-Mail Address:
asmith@shutts.com
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Re:
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Miller Industries, Inc.
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1.
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We have considered your response to our prior comment 2. Given that total revenues decrease approximately 24% from April 30, 2009 to April 30, 2010, and Income Before Tax Provision decreased approximately 5% for the same period, explain to us why your three year forecast shows a significant increase in income. Additionally, explain to us why your valuation allowance for the year ended April 30, 2009 is based on a six year financial forecast while your valuation allowance for the year ended April 30, 2010 is based on a three year financial forecast.
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2.
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We have reviewed your response to our prior comment 3. We are unclear how the analysis included in your response supports the volatility used in calculating the fair value of the modified award. Please provide us with a detailed explanation of this analysis. In your response explain to us why the volatility used in the calculation has dropped substantially from the rate used in the original calculation of the fair value of the award.
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Sincerely yours,
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/s/ Alfred G. Smith, II
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Alfred G. Smith, II
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By:
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/s/ Angelo Napolitano
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Angelo Napolitano
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Fiscal year
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4/30/10
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4/30/11
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4/30/12
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4/30/13
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4/30/14
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4/30/15
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||||||||||||||||||
Income before tax for fiscal year ended 4/30/09
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136,389 | 136,389 | 136,389 | 136,389 | 136,389 | 136,389 | ||||||||||||||||||
Less: Actual rental income for fiscal year ended 4/30/09
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(480,742 | ) | (480,742 | ) | (480,742 | ) | (480,742 | ) | (480,742 | ) | (480,742 | ) | ||||||||||||
Estimated rental income from current leases
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327,234 | 145,318 | 145,318 | 60,550 | -0- | -0- | ||||||||||||||||||
Expected rental income from expected renewals of current leases
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33,326 | 199,955 | 199,955 | 284,726 | 345,274 | 345,274 | ||||||||||||||||||
Estimated taxable income
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16,207 | 920 | 920 | 923 | 921 | 921 |
Fiscal Year
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4/30/11
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4/30/12
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4/30/13
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|||||||||
Income before tax for fiscal year ended 4/30/10
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$ | 129,588 | $ | 129,588 | $ | 129,588 | ||||||
Less: Actual rental income for fiscal year ended 4/30/10
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$ | (373,042 | ) | $ | (373,042 | ) | $ | (373,042 | ) | |||
Plus: Estimated rental income from current leases
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$ | 373,524 | $ | 373,524 | $ | 288,756 | ||||||
Estimated taxable income
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$ | 129,070 | $ | 130,070 | $ | 45,302 |
PRICE
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%
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LOGARITHM
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||||||||||
OF STOCK
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CHANGE
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|||||||||||
4/30/2006
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0.09 | |||||||||||
1/31/2006
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0.09 | 1 | 0 | |||||||||
10/31/2005
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0.12 | 1.3333333 | 0.28768207 | |||||||||
7/31/2005
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0.04 | 0.3333333 | -1.09861229 | |||||||||
4/30/2005
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0.05 | 1.25 | 0.22314355 | |||||||||
1/31/2005
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0.05 | 1 | 0 | |||||||||
10/31/2004
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0.05 | 1 | 0 | |||||||||
7/31/2004
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0.05 | 1 | 0 | |||||||||
4/30/2004
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0.05 | 1 | 0 | |||||||||
1/30/2004
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0.05 | 1 | 0 | |||||||||
10/31/2003
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0.02 | 0.4 | -0.91629073 | |||||||||
7/31/2003
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0.02 | 1 | 0 | |||||||||
4/30/2003
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0.02 | 1 | 0 | |||||||||
1/31/2003
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0.02 | 1 | 0 | |||||||||
10/31/2002
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0.02 | 1 | 0 | |||||||||
7/31/2002
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0.04 | 2 | 0.69314718 | |||||||||
4/30/2002
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0.05 | 1.25 | 0.22314355 | |||||||||
1/31/2002
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0.05 | 1 | 0 | |||||||||
10/31/2001
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0.06 | 1.2 | 0.18232156 | |||||||||
7/31/2001
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0.04 | 0.6666667 | -0.40546511 | |||||||||
4/30/2001
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0.04 | 1 | 0 | |||||||||
1/31/2001
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0.05 | 1.25 | 0.22314355 | |||||||||
10/31/2000
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0.02 | 0.4 | -0.91629073 | |||||||||
7/31/2000
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0.02 | 1 | 0 | |||||||||
4/30/2000
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0.02 | 1 | 0 | |||||||||
1/31/2000
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0.02 | 1 | 0 | |||||||||
10/31/1999
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0.03 | 1.5 | 0.40546511 | |||||||||
7/31/1999
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0.03 | 1 | 0 | |||||||||
4/30/1999
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0.03 | 1 | 0 | |||||||||
1/31/1999
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0.03 | 1 | 0 | |||||||||
10/31/1998
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0.05 | 1.6666667 | 0.51082562 | |||||||||
7/31/1998
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0.02 | 0.4 | -0.91629073 | |||||||||
4/30/1998
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0.02 | 1 | 0 | |||||||||
1/31/1998
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0.02 | 1 | 0 | |||||||||
10/31/1997
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0.01 | 0.5 | -0.69314718 | |||||||||
7/31/1997
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0.02 | 2 | 0.69314718 | |||||||||
4/30/1997
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0.02 | 1 | 0 | |||||||||
1/31/1997
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0.02 | 1 | 0 | |||||||||
10/31/1996
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0.02 | 1 | 0 | |||||||||
7/31/1996
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0.02 | 1 | 0 | |||||||||
-1.5040774 | ||||||||||||
QUARTER VOLATILITY
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0.39617233 | |||||||||||
PERIOD VOLATILITY
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0.79234467 |
PRICE
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%
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|||||||||||
OF STOCK
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CHANGE
|
LOGARITHM
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||||||||||
2/22/2010
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0.04 |
|
|
|||||||||
1/31/2010
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0.04 | 1 | 0 | |||||||||
10/31/2009
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0.04 | 1 | 0 | |||||||||
7/31/2009
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0.04 | 1 | 0 | |||||||||
4/30/2009
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0.04 | 1 | 0 | |||||||||
1/31/2009
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0.045 | 1.125 | 0.117783 | |||||||||
10/31/2008
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0.045 | 1 | 0 | |||||||||
7/31/2008
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0.045 | 1 | 0 | |||||||||
4/30/2008
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0.06 | 1.333333 | 0.287682 | |||||||||
1/31/2008
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0.06 | 1 | 0 | |||||||||
10/31/2007
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0.1 | 1.666667 | 0.510826 | |||||||||
7/31/2007
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0.18 | 1.8 | 0.587787 | |||||||||
4/30/2007
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0.08 | 0.444444 | -0.81093 | |||||||||
1/31/2007
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0.08 | 1 | 0 | |||||||||
10/31/2006
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0.14 | 1.75 | 0.559616 | |||||||||
7/31/2006
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0.14 | 1 | 0 | |||||||||
4/30/2006
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0.09 | 0.642857 | -0.44183 | |||||||||
1/31/2006
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0.09 | 1 | 0 | |||||||||
10/31/2005
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0.12 | 1.333333 | 0.287682 | |||||||||
7/31/2005
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0.04 | 0.333333 | -1.09861 | |||||||||
4/30/2005
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0.05 | 1.25 | 0.223144 | |||||||||
1/31/2005
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0.05 | 1 | 0 | |||||||||
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||||||||||||
0.223144 | ||||||||||||
QUARTER VOLATILITY
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0.400387 | |||||||||||
PERIOD VOLATILITY
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0.446287 |
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