Miller Industries (MLR) 5 Nov 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Miller Industries Third Quarter 2020 Results Conference Call. Please note this event is being recorded. And now at this time, I would like to turn the call over to Mr. Brendan Dunlap at FTI Consulting. Please go ahead, sir.

morning, good and you, everyone. Thank to I conference to Industries you would like call. Miller welcome

these formal here company's market We period. in Frank results, the discuss followed to the the Badgley, Please today to Safe a of Today's President, Securities are Vice the Exchange risks Chairman which Secretary Miller, released conference from other question-and-answer with forward-looking management in to of on the attention described are us call fully Report General of Counsel. provisions Bill Co-CEO; Act note and the which like Private Will and Form call, XXXX Miller, Whitmire, Vice make after close Executive management With I'd of yesterday. may company's Board; the XX-K team more were Harbor quarter Securities President Jeff Commission. and management, your the President the to Madonia, accordance Executive Litigation will remarks morning's begin with call are in Debbie by statements Co-CEO; Annual and from filings CFO; Reform with and filed statements, and third this related XXXX.

the over of ahead, out like formalities the I'd call these With turn to to go Please Jeff. way, Jeff.

and saying our morning, customers our I'll that Thank and challenging think you, for by good communities, our everyone. XXXX anyone a surprise don't I year has been employees.

to third of have the ago operate occasion pandemic. changes am experienced during say the that These and risen drive impacts specifically, during changes I us decreased pandemic. However, continue we COVID-XX continue sequential the by to million that versus a this that best-in-class the significant with provide economy year production employees XX.X% as improvement weigh of first encouraged million this half on the to with helped $XXX.X revenue $XXX.X during third effectively With I we can during extremely beginnings the quarter More our during to our XXXX the reopening the made service help quarter. the with our the levels. confidence more safely to and that customers said, of of coupled

XXXX However, to begins to margin declines our points profits period. year-over-year from contracted Quarterly business quarter gross rebound to experienced of revenue increased decreased sharp our by the basis during the while as second $XX.X compared that XX% XX to XX.X%. gross million, XX.X%

operational XXXX. $X.X to was in or gross Net However, have basis million improvements of expanded quarter our of controls. million uncertainty margins business points bring to production macro Despite ongoing of existing reflecting by net $X.XX our stringent income during continued $X.X per in or approximately quarter compared share supply mitigate per income cost to chain constraints. in-house capabilities environment, future facility repurposing third the XX the certain Greeneville share invest we a year-to-date and Tennessee the $X.XX the in to portion

these our to We of enhance going in end year production the by will and improvements expect phasing further forward. capabilities are that confident production these begin investments the

Miller Will excellence difficult to to service customer best-in-class I the incredible and and outstanding a employees Before I these to and our like operational their to Debbie, moment turn efforts call times. commitment during over take thank would for

market I'll Debbie? to quarter over that, turn Debbie, remarks. with closing and Now After results. back review be I'll environment the call third about will the financial some who comments

sales or to operations, a year-over-year approximately in the a sales $XXX.X compared prior points ongoing unfavorable SG&A third a quarter due our quarter to $XXX.X the XX.X% the of $XXX.X to Cost the of basis third but third for million million for Jeff was for million sales the XXXX, million XX% $XXX.X were slightly quarter for compared morning, XX XX.X% XXXX year everyone. quarter for from the of $XX.X period. from of of of or quarter reflecting impacts and improvement to from third versus for for operations decrease XXXX the COVID-XX the a the third $XX.X as net to second expenses mix. to sales, XXXX, were quarter decline Cost quarter XXXX, XX.X% XX.X% third quarter the $XX.X Net compared the the by XXXX. third driven million increased net net XXXX million good $X.X product XXXX top quarter pandemic, line Thanks, for decreased percentage XX.X% sales. XXXX. Gross third million million profit

from for of quarter income $XXX,XXX percentage net, $X.X third XXXX, in of third the basis increased third XXXX XX year was for prior $XXX,XXX was XXXX $X.X income a to the approximately $XXX,XXX the to Net $X.XX net third a was X.X% sales, decreases for our the exchange period. of fluctuations. quarter XXXX saw net floor As paid third quarter share. or to quarter share. $X.XX was per plan quarter due for compared the for compared XXXX, $XXX,XXX credit income down we a the rate currency million for the million X.X% quarter or expense per SG&A in expense points XXXX expense income payments. Net facility as to Other third and Interest interest

XXXX. of first XX.X% to results $X.XX income XX% months million $XXX year to sales our prior of nine $XX.X ended was $XX.X for Net ended was XX, decrease for million XXXX months first $X.XX in the the XXXX of nine million or for sales per per share. for million the sales of nine the or first of Net XXXX. were or profit $XX.X of decrease me nine a of XXXX for or million first months net XX.X% of compared XXXX months Now, of $XX.X XX, income nine compared period, a months share, million to September review the compared the Gross briefly months for XX.X%. $XXX.X let nine September the

million September XXXX. was as XXXX. XX, XXXX XX, $XX.X as compared as million December of million were XXXX compared of December at XX, Cash as was XXXX. sheet. XX, million totaled as balance payable XX, as $XX.X to of to $XXX.X $XX XXXX, $XX million at $XX.X and of $XXX.X equivalents, as June Inventories and our to of June XX, September XXXX of million XXXX June $XX.X and XXXX of to XX, of XXXX. XX June $XX.X compared Accounts cash September of $XX.X receivable $XXX.X million XX, million and December of compared December million XX, XXXX as million September XX, million million $XX.X to as XX, XXXX Accounts as and now Turning

our flexibility and remains the while any During existing impacts position repaid challenging we to with long-term of resources the to pandemic. quarter, all our on $X to mitigate continuing we are invest and environment we future strong, our have obligations capital and as sufficient third strength handle our the balance million to us confident related the eliminating believe sheet that remaining credit XX, Overall, the provides financial September business. in facility

payable XXXX. XXXX close of Lastly, Board $X.XX the its per of company share, shareholders at XX, quarterly dividend also business December our announced the of to cash X, approved on that of December record Directors

I'll the Jeff Now, turn further back call remarks. to for

proud within the months their to for our I we the to commitment to our Through are have Will very our excellence, focused dedication first their the of providing and aspects sharply been year, best-in-class customers. unwavering control. on continued of nine operational Debbie. employees you, business Thank of service and our

our to employees, Going supply well of to safety customers, prioritize keep with tools clear. to will our forward, we as as America's continue the continuing essential and the health roadways

capital shareholders, our per returning remain as dividend declared by to we dedicated to share. of evidenced $X.XX Additionally,

Looking fourth in an around regions as cases. quarter, world into visibility are many the experiencing COVID-XX challenged, remains uptick, the

pandemic impact we on the anticipate have business. will a our to adverse result, continue As an

on However, to we needed, will any business. impacts future as in mitigate respond our actively order

healthy this we challenged, industry-leading to are open sheet customers, thank and capitalize operating morning. and the us and While In you positions like balance suppliers opportunities. improvements, their environment line again, of support please I us growth that Will operator, And Miller operational on to our portfolio, favorably employees, Industries. the future questions. product closing, shareholders our for Thank confident for for would joining ongoing remains

on Thanks. look to quarter our with again call forward conference speaking you on for Yeah. us fourth we the call. you Thank today. results And again, joining

Thank disconnect. today's now you does conference. conclude your participation. That Thank may you. And you all for