Miller Industries, Inc.

discuss the company's 2023 first quarter 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, Frank Madonia, Executive Vice President, Secretary and General Counsel, Vince Tiano, Chief Revenue Officer, and Jameson Linden, Chief Manufacturing Officer. 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 Will. Please go ahead, Will.

Thank you, and good morning, everyone.

We had a great start to our 2023, generating record quarterly revenue and significantly improved profitability compared to 2022. Sales in the quarter increased 31% year over year, due to improved availability of component parts. Gross profit for the first quarter was $30.4 million, an increase of 98.3% compared to the prior year quarter, while gross margin of 10.8% improved 370 basis points year over year. We are encouraged by our profitability levels as input costs have begun to stabilize and we are benefiting from our efforts taken to offset inflationary pressures. We are seeing continued signs of supply chain improvement as we move forward in 2023. Demand for our products remains strong, and we have not experienced order cancellations despite the challenging macroeconomic environment. We have decided, in light of our strong sales and elevated backlog, continue to accumulate inventory in the form of goods near completion and feel that investing in our business in this manner is the best use of our cash in the current environment. That said, we are taking all steps necessary to deliver finished goods as quickly as possible and recognize revenue on our significant backlog. Meanwhile, we are continuing to evaluate all opportunities to improve the flexibility of our supply chain, to ensure its stability going forward. We continue to diversify our sourcing with new suppliers, focus on utilizing our engineering and redesign capabilities to improve our ability to adapt to supply chain constraints, and will consider vertical integration where feasible. In our international business, which makes up approximately 10% of our sales, demand remains strong. During the first quarter, we experienced a partial benefit from the price increase implemented, and we believe that we will recognize the full benefit of these price increases as the year progresses. Lastly, before I turn the call over to Debbie, I'd like to acknowledge the governance changes we made during the first quarter. As we cleared the challenges of the pandemic and our operating and financial results improved, we were able to turn our attention to improving our governance structure. Our board refreshment process began in Ernst with Lee Walton's appointment to the board in 2020 and accelerated with her appointment to chair of the nomination and governance committee in August of 2022. Ms. Walton, a nationally recognized professional in corporate governance, is well qualified to lead this effort. During the first quarter, we added four new highly qualified directors to our board. They have already demonstrated their value as part of Miller Industries' team and we are looking forward to continuing to work with them to maximize shareholder value. We've also, based on feedback from shareholders and with input from Pearl Meyer, a leader in executive compensation consulting, adopted a new executive compensation plan. Under this plan, management compensation is more closely tied to the profitability and shareholder interest, and also more closely aligned with our proxy peer group in relative executive compensation and structure. We believe These changes to our governance will position Miller Industries for long-term success. Now I'll turn the call over to Debbie, who will review the first quarter financial results in more detail. Following her remarks, I'll provide some closing comments and update on her outlook. Debbie?