Q4 2020 Miller Industries Inc Earnings Call

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Please standby we're about to begin.

Good day, ladies and gentlemen, and welcome to the Miller industries fourth quarter, 2020 results Conference call. Please.

Please note this event is being recorded.

And now at this time I'd like to turn the conference call over to Mr. Brendan Dunlap and MTI consulting. Please go ahead Sir.

Thank you and good morning, everyone I would like to welcome you to the Miller Industries Conference call. We are here to discuss the company's 2020 for quarter and full year results, which were released after the close and market yesterday.

That's one of the management team today are Bill Miller Chairman of the Board will Miller, President and co CEO, Jeff Badgley co CEO, Debbie Whitmire Executive Vice President and CFO, and Franklin down, Yeah, Executive Vice President and Secretary and General Counsel.

Today's call will begin with formal remarks from management, followed by a question and answer period. Please note and this morning's conference call management May make forward looking statements and in accordance with the Safe Harbor provision of the private Securities Litigation Reform Act of 1995, I'd like to call your attention for their risks related to these statements, which are more fully described and the company's annual rip.

For filed on form 10-K, and other filings with the Securities and Exchange Commission.

At this time I'd like to turn the call over to Jeff. Please go ahead, Jeff.

Thank you and good morning, everyone.

And to begin today's call and I would like for the first of knowledge.

Ordinary dedication of our employees during one of the most challenging years and our company's history.

COVID-19 has disrupted nearly every facet of everyday life and has required on employees to show a tremendous.

And on and flexibility in order to continue meeting the needs of our customers.

During the fourth quarter, we experienced steady improvement and I continue to be encouraged by the underlying and strength of our business as well as dual resilience of our customers. Despite the ongoing impact of the.

The COVID-19 pandemic.

While we were encouraged to finish.

The year was such strong operating results, which start to the first quarter of 2020. One has not been without its challenges during the first half for the first quarter of 2021, we experienced delays in deliveries to our distributors caused by changes we made to our legacy business.

<unk> during the implementation of our new enterprise software system.

In addition, we experienced supply chain disruptions related to the impacts of COVID-19, as well as product delivery delays due to extreme weather conditions across parts of the U S and tightening availability for free.

Light trucks.

These factors have caused substantial substantial downward pressures on our revenues margin and earnings during the first half of the first quarter of 2021.

Despite these headwinds based on our strong backlog and the current status of our process improvements, which we believe we have the opportunity to substantially improve our operating results through 2020 one.

On the first quarter and will continue to capitalize on all future growth opportunities.

As you recall last quarter, we announced that we started repurposing, our existing Greenville, Tennessee facility to bring and specific production capabilities in house to mitigate future supply chain constraints and I'm happy to announce the facility transition has for.

Gross debt scheduled and we anticipate and we will begin to see improvements and our production efficiency as we finalize the project and gaining momentum through 2021.

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

Thanks, Jeff and good morning, everyone.

Net sales for the fourth quarter, and 2020 for $178 3 million versus $203 $1 million for the fourth quarter of 2019 at 12, two year over year decrease driven by ongoing impacts from the COVID-19, pandemic and a five 9% improvement and the third.

Quarter as production levels and deliveries continue continue to expand throughout the quarter.

Cost of operations decreased 12, 6% for $154 1 million for the fourth quarter of 2020 compared to $176 2 million for the fourth quarter 2019.

And there's a time and our topline sales and.

Talks of operations as a percentage of net sales decreased approximately 30 basis points to 86, 4% from the prior year period.

Gross profit for $24 3 million or 13, 6% of net sales for the fourth quarter 2020, compared to $26 $9 million and 13, 3% of net sales for the first fourth quarter 2019, largely driven by our continued cost mitigation efforts.

SG&A expenses were $9 4 million for the fourth quarter 2020, compared to $11 8 million for the fourth quarter 2019, resulting from significantly reduced employee travel and trade related.

<unk> sales related expenses as a percentage of sales SG&A decreased approximately 50 basis points to five 3% for five 8% and the prior year period and.

Interest expense net for the fourth quarter of 2020 and was $197000 compared to $565000 for the fourth quarter of 2019 due to decreases in interest on interest bearing debt for client activity and databases and interest on our credit facility.

Other income and expense for the fourth quarter of 2020 was on.

Net income of $275000 compared to a net income of $211000 for the fourth quarter 2019 net of currency exchange rate fluctuations net.

Net income for the fourth quarter, 2020 was $12 million or $1.05 per share net.

Net income for the fourth quarter, 2019 was $11 $7 million for $1.03 per share.

Now let me briefly review our results for the year ended December 31 2020.

Net sales for the year with $651 $3 million.

On page 18.

$818 $2 million and the prior year period, a decrease of 24%.

Gross profit for the year, and $78 4 million or 12% of sales compared to $96 $5 million for 11, 8% of sales for 2019.

Net income for the year was $29 $8 million or $2 62 per share and decrease of 23, 7% compared to net income of $39 $1 million on $3 43 per share for 2019.

Now turning to the balance sheet cash and cash equivalents as of December 31, 2020 was $57 $5 million.

Compared to $47 $5 million as of September 32020, and $26 1 million as of December 31, 2019.

Now its receivable at December 31, 2020 totaled 100, $141 6 million compared to $149 8 million as of September 30 of 2020.

And $168 $6 million as of December 31, 2019.

Inventories were $83 9 million as of December 31, 2020, compared to $87 4 million as of September 32020, and $88 million as of December 31, 2019.

Accounts payable on December 31, 2020 with age.

And $85 5 million compared to $93 million as of September 32020, and.

And $95 8 million as of December 31 for 2019.

As you recall during third quarter heading for the remaining $5 million of our long term obligations as of September 30th.

Despite the ongoing uncertainty related to the pandemic our balance sheet remains strong and we are confident that we have adequate capital resources to drive the business for us through these challenging times, while continuing to strategically invest and our business.

Lastly, the company also announced that its board of directors and prove our quarterly cash dividend of <unk> 18 per share payable on March 22021 to shareholders of record at the close of business on March 16, 2021 now.

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

Thank you Debbie.

Over the last year, we were presented with one of the toughest operating environment and some of our company's history and.

I'm extremely proud of our employees and our ongoing commitment to operational excellence and industry, leading customer service.

Despite the challenging circumstances over the last 12 months, we took steps to optimize our production capabilities, while following guidelines to keep our employees safe.

Further enhanced on internal cost controls and continued strength and our balance sheet to ensure we have the financial flexibility to capitalize on future growth opportunities.

Along with our operational improvements, we remain committed to returning capital to shareholders as evidenced by the declaration of our 40 <unk> consecutive quarterly dividend.

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As we move into 2021 COVID-19 related uncertainty persists.

And visibility remains challenged.

We are hopeful the vaccine rollouts continue to gain traction and global economies continue on the path to normalization.

Going forward, our strong backlog and optimize production capabilities and healthy balance sheet position us favorably to capitalize on strengthening customer demand and.

In closing I'd like to thank our employees.

Customers suppliers and shareholders for their ongoing support of Miller industries.

Thank you again for joining us this morning, operator, please open the line for questions.

Thank you if you would like to ask a question thinking.

Thinking about pressing star one on your telephone keypad. If you are using a speaker phone. Please make sure that your mute function is turned off to allow your signal to reach our equipment and.

And that is star one if you'd like to ask a question and we'll pause for just a moment for everyone an opportunity to signal.

Once again that is star and wondering if you'd like to ask a question.

And that does conclude today's question and answer session and I'd like to go ahead and turn the call back over to management for any additional for closing remarks.

Thank you again for joining us on on the call today, and we look forward to speaking with you again on our first quarter results conference call.

Good day.

Thank you and that does conclude today's conference and thank you for your participation you may now disconnect.

Yeah.

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