Miller Industries, Inc.

Good day, ladies and gentlemen, and welcome to the Miller Industries fourth quarter and full year 2021 results conference call. Please note this event is being recorded. And now at this time, I'd like to turn the call over to Mike Goudreau 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 to discuss the company's 2021 fourth quarter and full year results which were released after the close of the market yesterday. With us from the management team today are Bill Miller, Chairman of the Board, Will Miller, President and CEO, Jeff Badgley, President of International and Military, 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 session. 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. At this time, I'd like to turn the call over to Jeff. Please go ahead, Jeff.

Thank you, and good morning, everyone. Our fourth quarter results are reflective of the supply chain constraints, costing pressures, and labor shortages that continue to impact businesses across the globe. That said, we are pleased with the demand dynamics in our business as fourth quarter revenues increased year over year. Compared to the same period a year ago, our sales increased 13.1% to $201.7 million. Gross profit in the fourth quarter was $15.6 million, a decrease of roughly 35.7% compared to the prior year period. While gross margin in the fourth quarter dropped approximately 590 basis points year over year, driven by supply chain pressures, part shortages and effects of inflation on the cost of purchased materials and component parts. We have enacted a series of price increases to our customers to cover the increased costs. However, as we have mentioned previously, it takes time to realize the benefits from these price increases due to the increased backlog levels. As I alluded to earlier, we continue to see extremely high levels of demand in our domestic business and have been experiencing strong backlog growth. While we are encouraged by our year-over-year revenue growth, we have been unable to capture the new demand as a result of supply chain constraints and material shortages. We will continue to pursue all means available to us to actively mitigate these macro and economic disruptions as we move forward into 2022. We had another strong quarter in our international business driven by recovery in our European markets where we saw further increased demand and backlogged growth. While we are not at a stage where shipping and production has returned to pre-pandemic levels, the growth of our international segment in spite of these challenges makes us confident in its ability to create value in a more normalized environment. However, the current conflict between Russia and Ukraine presents additional concerns. Now I'll turn the call over to Debbie, who will review the fourth quarter financial results, and then Will is going to conclude with some remarks on our market environment. Debbie?