Tennessee has announced that the state’s tax revenues exceeded budgeted estimates in October.
Overall October revenues were $1.2 billion, which is $38.2 million more than October of last year and $134.8 million more than the budgeted estimate. The growth rate for October was 3.39%.
Year-to-date revenues for three months are $447.4 million more than the budgeted estimate. The general fund has exceeded estimates by $433.2 million and the four other funds that share in state tax revenues exceeded estimates by $14.2 million.
General fund revenues for October were $125.2 million more than the budgeted estimate, and the four other funds that share in state tax revenues were $9.6 million more than the budgeted estimates.
Franchise and excise combined revenues for October were $55.2 million, which is $11.7 million more than the budgeted estimate of $43.5 million. Due to the high volatility of these taxes the growth rate for October was 26.19% and the year-to-date growth rate is 3.48%.
Gasoline and motor fuel revenues decreased by 17.22% for October but were $1.3 million more than the budgeted estimate of $106.5 million. Adjusting for a large $23.3 million one-time motor fuel tax payment made last year at this time, gasoline and motor fuel revenue growth was a positive 0.84%for the month.
Motor vehicle registration revenue receipts increased by 6.57% and were $2.7 million more than the October estimate.
Tobacco tax revenues for the month were $0.2 million less than the budgeted estimate of $18.9 million. The growth rate for October was negative 2.36%.
Privilege tax revenues were $8 million more than the budgeted estimate of $35.2 million and the year-to-date growth rate is 13.90%.
Business tax revenues increased by 15.18% and were $2 million more than the budgeted estimate.
Income tax receipts were $3 million more than the October estimate and mostly flat compared to the same month last year.
Mixed drink, or liquor-by-the-drink, taxes were $3 million less than the October estimate, and on a year-to-date basis, revenues are 42.06% lower than last year.
Miller Industries releases third quarter results
Miller Industries, Inc. has announced financial results for the third quarter ended Sept. 30.
For the third quarter of 2020, net sales were $168.4 million, a decrease of 13.9%, compared to $195.5 million for the third quarter of 2019.
Net income in the third quarter of 2020 was $6.6 million, or $0.57 per share, a decrease of 18.9%, compared to net income of $8.1 million, or $0.71 per share, in the prior year period. Long-term obligations decreased by $5.0 million, eliminating the remaining balance on our credit facility as of Sept. 30, with the company’s cash balance increasing to $47.5 million as of that date.
Gross profit for the third quarter was $17.8 million, or 10.6% of net sales, compared to $21.7 million, or 11.1% of net sales, for the third quarter of 2019. Selling, general and administrative expenses were $9.2 million, or 5.5% of net sales, compared to $10.5 million, or 5.3% of net sales, in the prior year period.
For the nine months ended Sept. 30, net sales were $472.9 million, a decrease of 23.1% compared to $615.0 million in the prior year period. The company reported net income of $17.8 million, or $1.56 per share for the nine months of 2020, a decrease of 35.0% compared to net income of $27.4 million, or $2.41 per share for the nine months of 2019.
Miller also announced that its board of directors has declared a quarterly cash dividend of $0.18 per share, payable Dec. 14 to shareholders of record at the close of business Dec. 7, the 40th consecutive quarter the company has paid a dividend.
“While the ongoing impact of COVID-19 continued to weigh on our performance in the third quarter, we are encouraged by the sequential improvements in our business from the sharp declines we experienced last quarter,’’ says Jeffrey I. Badgley, co-chief executive officers.
“Third quarter revenue declined 13.9% year-over-year, however revenue increased 31.0% from the second quarter due to a substantial recovery in deliveries during the period.
“Despite the challenging environment, we continued to invest in our business by repurposing a portion of an existing facility to bring certain production aspects in-house in order to mitigate future supply chain constraints.’’
Fundraising effort to help CFD’s Thompson
The Chattanooga Fire Department and other local public safety agencies are partnering to help Battalion Chief David Thompson Jr.’s daughter, Makayla, 22, who has special needs.
Donors are working to buy a van. The family has always had to make transportation arrangements with a manual wheelchair, instead of her electric wheelchair, which increases her mobility.
When the family is able to get a van for her, she will be able to go everywhere with her electric wheelchair and have the independence to drive herself to stores, parks, medical appointments and other places. It has special modifications for her wheelchair to be rolled in and locked down.
There will also be a barbecue sale open to the public with 100% of the proceeds going to help with the purchase of the van. It will be Saturday, Nov. 14, 11 a.m.- 6 p.m., at 6216 Perimeter Drive.
Lee hoping for teacher pay raises amid crunch
NASHVILLE (AP) – Tennessee Gov. Bill Lee said Tuesday he’s looking to include “meaningful” teacher pay raises in next year’s budget despite facing financial crunches brought on by the COVID-19 pandemic.
Lee had originally proposed funneling an additional $117 million to K-12 teacher salaries earlier this year before the virus outbreak began rippling across the state. If approved, the starting minimum annual salary for teachers would have increased from $36,000 to $40,000 over the next two years.
Yet months later, Lee was forced to strip the teacher funding boost, as well as many other budget initiatives, as officials braced for funding shortfalls.
However, Tennessee’s revenues have come in slightly higher than originally projected over the past three months. This has allowed Lee’s administration to remain slightly optimistic that they’ll be able to fund some new measures rather than have to dip into rainy day funds.
“We certainly hope there will be an opportunity for meaningful teacher pay increases,” Lee told reporters on Tuesday, calling it an “important” priority while he considers the 2021-22 fiscal year spending plan.
Lee added that Tennessee’s teachers have “done a remarkable job this year” as they navigate an already tough job on top of a pandemic.
The Republican also didn’t rule out allocating funding for his school voucher program, which is currently blocked from being implemented due to an ongoing legal challenge questioning the constitutionality of the proposal. So far, courts have ruled against Lee’s administration.
Known as education savings accounts, the program allows eligible families to use more than $7,000 in state tax dollars to pay for private school tuition. It was a program championed by Lee in 2019 during his first legislative session and it just narrowly passed the GOP-dominant Statehouse.
Once passed, the law was quickly challenged by plaintiffs ranging from Nashville and Shelby County – which includes Memphis – and parents opposed to education savings accounts. They argue Lee and Republican lawmakers did not receive local consent when drawing legislation affecting local communities, which is required under Tennessee’s constitution.
Lee added that he believed the program would have been useful for parents who wanted more school choices during this school year as districts across the state weighed whether to remain open or move to virtual learning.
Area golfers win national tournament
A team sponsored by MFG Chemical recently won the NKF Konica Minolta Golf Classic at ACE Club in Lafayette Hill, Pennsylvania, competing with a golfer from Chattanooga and one from Dalton, Georgia, on the winning team.
Competing with 108 golfers, the winning team was made up of Keith Arnold of Chattanooga from MFG Chemical, Brad Eshoo of Chicago from Midwest Graphic Sales, Cameron Whaley of Dalton from SCT and Scott Gustafson of Houston from Shrieve Chemical Products.
Each year, thousands of golfers from across the country participate in nearly 30 local events playing for a chance to compete in the National Finals held at Pebble Beach. Participating golfers raise $3.5 million annually to benefit National Kidney Foundation.
Upon winning the tournament, Arnold, former CEO of MFG Chemical and current board director, said, “It’s good to join with so many caring people who want to help such a worthy cause as the National Kidney Foundation. 30 million adults are estimated to have chronic kidney disease. The NKF is helping to save lives through its great work.”
NuLife offers nitric oxide supplement
Chattanooga-based NuLife Ventures, a research development and marketing/distribution company, is offering a nitric oxide booster supplement, vNox+ from independent brand partners.
vNox+ was crafted for NuLife Ventures to support the production of nitric oxide in the body. The discovery that nitric oxide is a signaling molecule in the cardiovascular system whereby dilating blood vessels was awarded a Nobel Prize in 1998. This discovery revolutionized cardiovascular medicine by opening up new avenues of potential therapies and treatments.
Since the discovery was honored by the Nobel committee, it has become evident that nitric oxide also protects the heart, stimulates the brain, kills bacteria, and plays an important role in the protection against the onset and progression of cardiovascular disease.
Children’s urgent care to open this winter
Urgent Care for Children, a Birmingham-based pediatric urgent care provider, will open a location in Chattanooga this winter, its eighth clinic.
The clinic will be at 5207 TN-153 Road across from CHI Memorial Hospital.
“Our team of physicians and staff are thrilled to begin providing quality care with less waiting to the city of Chattanooga,’’ says Allury Arora, M.D., co-founder and chief medical officer of the company.
UC4C opened its first clinic in Birmingham in 2017, which was succeeded by locations across north and central Alabama in the years following. Memphis and Chattanooga will be the provider’s first clinics outside Alabama. The company runs the nation’s first sensory-inclusive urgent care facilities and Alabama’s first physician-founded, highest patient-rated, pediatric urgent care facilities.