Mueller Industries, Inc.

Good day, ladies and gentlemen, and welcome to the Miller Industries second quarter 2019 results conference call. Please note this event is being recorded. And now at this time, I would like to turn the call over to Brendan Dunlop at FTI 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 today to discuss the company's 2019 second quarter results, which were released after it closed the market yesterday. With us from 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 Frank Madonia, Executive Vice President, Secretary, and General Counsel. Today's call will begin with formal remarks from management, followed by a question and answer period. Please note in this morning's conference call Management may make forward-looking statements in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. I'd like to call your attention to the risks related to these statements, which are more fully described in the company's annual report filed on Form 10-K and other filings with the Securities and Exchange Commission. With these formalities out of the way, I'd like to turn the call over to Jeff. Please go ahead, Jeff.

Thank you, and good morning. We are pleased to discuss our second quarter results with you today. This was another strong quarter for Miller Industries as our revenue, income before income taxes, and earnings per share increased double digits on a year-over-year basis, reflecting broad-based demand in our domestic and international markets. Our performance during the quarter was driven by strong demand and continued innovation in our global product offerings. The strong results are also a testament to our commitment to operational excellence. Our strong top line sales growth coupled with our continued emphasis on cost savings drove an 18.5% increase in gross profit and a 40.6% increase in net income. Overall, we reported 2019 second quarter sales of $222.3 million, an increase of 25.7% compared to $176.9 million in the prior year period. Net income was $10.7 million, or 94 cents per share, compared to net income of 7.6 million or 67 cents per share in the second quarter of 2018. Gross profit as a percentage of total sales contracted modestly this quarter to 11.3%, down approximately 70 basis points from prior year period due to change in product mix. However, selling general and administrative expenses as a percentage of total sales, decreased approximately 60 basis points to 4.9% as we continued to benefit from our cost control and further improved our workflow efficiency. We remain confident in our business as we enter the second half of 2019. as demand for our products remains strong and we will continue to benefit from capacity increases in recent years and our unwavering focus on efficiency gains. Further, our balance sheet remains healthy, and we continue to strategically deploy our resources to drive organic growth and profitability to meet the demand of our customers and create sustainable value for our shareholders. We remain confident in our competitive position and in our financial outlook. Now I'll turn the call over to Debbie, who will review the second quarter financial results. After that, I'll be back with comments about the market environment and some closing remarks. Then we'll go to Q&A. Debbie?