Miller Industries, Inc.

Good day, ladies and gentlemen, and welcome to the Miller Industries third quarter 2024 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 Pedro, FTI Consulting. Please go ahead.

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 2024 third 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, 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 Will. Please go ahead, Will.

Thank you, and good morning, everyone. Before I begin, I want to take a moment to extend my sympathies to those impacted by the recent hurricanes in the southeast and the extreme loss of life and property. First and foremost, our thoughts are with those still suffering, and we hope for a speedy recovery for those affected. We are not immune to these extreme weather events, and Hurricane Helene in particular had an impact on our operations. As a result, we had to pause production in our Greenville our smallest facility, for two weeks. While the financial impact was thankfully marginal, impacting our revenues for the quarter by low single-digit millions, our focus was on ensuring that our employees were safe, secure, and able to perform their jobs to the best of their ability. We are still assessing the hurricane's impact on our production, but expect an effect on fourth quarter results to be equally minimal and expect that the marginal impact to revenue in the third quarter will be shifted into the fourth quarter as we catch up on invoicing. Turning to our quarterly results, I am pleased to share that even despite impacts from the hurricane, we've delivered another strong quarter of double-digit year-over-year revenue growth. In the third quarter of 2024, we generated revenues of $314.3 million, an increase of 14.5% year-over-year, driven by elevated OEM chassis delivery. Shipments in the third quarter last year were abnormally low, but we were subsequently elevated to fill the gap in the first six months of 2024. Third quarter 2024 reflects a normalized level of chassis deliveries based on current demand. Gross profit for the third quarter was $42 million, a decrease of 2% compared to the prior year quarter. while our gross margin of 13.4% decreased by 220 basis points year-over-year. The year-over-year decrease was primarily due to the shift in product mix compared to an extraordinary 2023 period. As I just mentioned, in the third quarter of 2023, gross margin saw a significant boost as chassis delivery slowed due to supply chain disruptions. Now that chassis deliveries have normalized, we expect to continue operating at the current level. And our gross margins for the third quarter of 2024 are consistent with our expected annual margins. In our international business, which accounts for approximately 10% of our total sales, we are encouraged by continued demand and strong order intake. We believe there is still an opportunity to continue ramping international production and expanding activity in the military sector. We believe this can be a solid growth area for us moving forward. Lastly, before I turn the call over to Debbie, I want to touch on the production capacity expansion plans we mentioned earlier this year. We regularly analyze future production needs at all of our facilities around the globe and work diligently to invest our capital in the areas of the business that we believe will generate the greatest shareholder returns. While we can continue to grow with the current capacity that we have, we will continue to consider expanding capacity and investing in our business to meet future contractual agreements at the appropriate time. We also remain focused on our debt reduction strategy, along with our regular distribution of capital to shareholders in the form of our quarterly dividend and investment in our share repurchase program. Now I'll turn the call over to Debbie, who will review the third quarter financial results in more detail. Following her remarks, I'll provide some closing comments and an update on our outlook. Debbie?