Miller Industries, Inc.

Good day, ladies and gentlemen, and welcome to the Miller Industries second 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 Brendan Dunlop at FDI 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 second quarter results, which were released after the close of 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 formally described in the company's annual report filed on Form 10-K and other filings of 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, everyone. Over the last few months we have experienced an unprecedented health and economic crisis due to the COVID-19 pandemic. Despite the uncertainty caused by this crisis, Miller Industries has remained committed to providing best-in-class products to keep roadways clear around the globe. Moving on to our financial results, our performance during the quarter was significantly impacted by COVID-related shutdowns at our facilities, as well as shutdowns in our supply chain, which resulted in a decline in top line sales. Revenue during the second quarter decreased 42.2% to $128.5 million versus $222.3 million a year ago. as the economy was impacted by COVID-19 and shutdowns in our supply chain reduced our production levels. That said, we were able to quickly adjust our operations to reduce costs and minimize overall inefficiencies while continuing to meet the needs of our customers. Quarterly gross profits decreased by 29.7% year over year to $17.7 million. However, our gross margin expanded approximately 250 basis points year over year to 13.8% due to favorable product mix and operational adjustments made during the quarter. Net income was $5.8 million, or 51 cents per share, compared to net income of $10.7 million, or 94 cents per share, in the second quarter of 2019. Although market conditions remain unpredictable, we are confident in our ability to continue meeting the needs of our customers while maintaining stringent social distancing Sanitary protocols and other governmental guidelines to protect the health and safety of our employees. As we move into the second half of the year, we are working closely with our distribution network as they adjust their inventory to meet customer demand. Further, we continue to invest in technological improvements in our production facilities to increase overhaul production efficiency, and enhance the safety of our employees. I am pleased to announce the rollout of these improvements is progressing as planned. Despite the ongoing uncertainty in the broader market, these improvements will position us well to capitalize on future growth when the COVID-19 crisis subsides. 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. Debbie?