Miller Industries Reports Fiscal 2001 Third Quarter
Results
CHATTANOOGA, Tenn., March 19 Miller Industries, Inc.
today announced financial results for its fiscal 2001 third
quarter ended January 31, 2001.
For the third quarter of fiscal 2001, net sales were $119.7 million
compared with $146.2 million in the fiscal 2000 third quarter. Operating
income for the quarter was $2.4 million compared with $2.2 million in the same
period last year. The Company reported a net loss for the current period of
$1.3 million, or ($0.03) per basic and diluted share, compared with a net loss
of $0.9 million, or ($0.02) per basic and diluted share, for the fiscal 2000
third quarter.
For the nine month period ended January 31, 2001, net sales were
$376.0 million versus $429.2 million during the prior-year period. Operating
income was $3.7 million, compared to $8.1 million in the first nine-months of
fiscal 2000, which included special charges of $6.0 million. For the first
nine months of fiscal 2001, the Company reported a net loss of $5.2 million,
or ($0.11) per basic and diluted share, compared with a net loss of
$0.6 million, or ($0.01) per basic and diluted share, a year ago.
Revenue in Miller Industries' towing and recovery equipment segment was
$75.2 million for the fiscal 2001 third quarter versus $93.7 million a year
ago. The lower sales volume was due to reduced sales of chassis, and the
continuing impact of higher operating costs coupled with tightened retail
credit availability that have affected demand for towing and recovery
equipment products throughout the year. Operating income for the towing and
recovery equipment segment in the fiscal 2001 third quarter was $2.4 million
versus $4.1 million in the year-ago period, reflecting the decreased sales
volumes partially offset by the Company's continued focus on controlling
costs.
Within the Company's towing services segment, revenue for the fiscal 2001
third quarter was $44.5 million versus $52.4 million in the year-ago period.
The revenue decrease in the recent quarter was due to the sale or closing of
underperforming RoadOne markets as part of the Company's previously announced
program. Operating income for the fiscal 2001 third quarter was $62,000,
reversing an operating loss of $1.9 million in the year- ago quarter and a
$1.3 million operating loss in the prior quarter. RoadOne's continued
improvement on a sequential quarter basis reflects the Company's ongoing
effort to dispose of underperforming markets as well as reduce overhead costs.
Selling, general and administrative expenses for the fiscal 2001 third
quarter declined 11% to $17.2 million from $19.3 million a year ago. Interest
expense in the third quarter of fiscal 2001 was $4.4 million compared with
$3.0 million in the same period last year. The increase is primarily
attributable to higher interest rates on the Company's bank credit facility.
During the quarter, the Company reduced its borrowings by approximately
$11 million.
Jeffrey I. Badgley, President and CEO of Miller Industries, said, "While
the operating environment remains difficult, our continuing focus on reducing
costs across both of our business segments produced improved results in the
quarter. Total costs and expenses were $121.6 million, a 17% decrease from
the year-ago quarter and 8% below the previous quarter of 2001. We are
particularly pleased with the improvement reported at RoadOne, where our
efforts to reduce overhead at the corporate and field operations level remain
on track. Through January 31, 2001, we have successfully sold or closed
10 underperforming markets and are actively taking steps to address those
underperforming markets that remain. At the same time, the top two-thirds of
our RoadOne markets continued to meet expectations and generated an increase
in revenue year over year. In the towing and recovery equipment segment,
market conditions remained very challenging. We have been successful, however,
in reducing costs. In addition, the strength of our brand has been a key
asset in this environment."
Mr. Badgley continued, "Going forward, we will remain focused on reducing
costs and improving the operating performance of both business segments. We
are also focused on reducing debt levels and have reduced our bank debt by
$11 million during this last quarter. At RoadOne, we will continue to take
the necessary actions to address the remaining underperforming markets, and
have completed the sale of one additional location since the end of the third
quarter, and have offers on four other locations which we hope to close before
year end. Through this and other initiatives, we expect to maintain the gains
we have realized thus far. In addition, we will continue to aggressively
manage our costs in our equipment business in this challenging operating
environment."
Miller Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended Nine Months Ended
January 31, January 31,
% %
2001 2000 Change 2001 2000 Change
NET SALES $119,686 $146,165 -18% $376,028 $429,239 -12%
COSTS AND EXPENSES:
COSTS OF
OPERATIONS 100,081 124,637 -20% 319,524 356,818 -10%
SELLING, GENERAL,
AND ADMINISTRATIVE
EXPENSES 17,157 19,318 -11% 52,836 58,226 -9%
SPECIAL CHARGES 0 0 n/m 0 6,041 n/m
INTEREST
EXPENSE, NET 4,394 2,965 48% 11,544 8,395 38%
TOTAL COSTS
AND EXPENSES 121,632 146,920 -17% 383,904 429,480 -11%
LOSS BEFORE
INCOME TAXES (1,946) (755) 158% (7,876) (241) n/m
INCOME TAX
PROVISION (BENEFIT) (621) 149 -517% (2,627) 369 n/m
NET LOSS $(1,325) $(904) 47% $(5,249) $(610) n/m
NET LOSS PER COMMON SHARE:
BASIC $(0.03) $(0.02) 47% $(0.11) $(0.01) n/m
DILUTED $(0.03) $(0.02) 47% $(0.11) $(0.01) n/m
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 46,710 46,692 0% 46,709 46,690 0%
DILUTED 46,710 46,692 0% 46,709 46,690 0%
SUPPLEMENTAL SEGMENT DATA
(IN THOUSANDS)
Three Months Ended
January 31,
% of % of
2001 Total 2000 Total
REVENUE:
TOWING AND RECOVERY EQUIPMENT $75,175 63% $93,730 64%
TOWING SERVICES 44,511 37% 52,435 36%
$119,686 100% $146,165 100%
OPERATING INCOME (LOSS):
TOWING AND RECOVERY EQUIPMENT $2,386 97% $4,060 184%
TOWING SERVICES (1) 62 3% (1,850) -84%
$2,448 100% $2,210 100%
Nine Months Ended
January 31,
% of % of
2001 Total 2000 Total
NET SALES:
TOWING AND RECOVERY EQUIPMENT $234,342 62% $272,943 64%
TOWING SERVICES 141,686 38% 156,296 36%
$376,028 100% $429,239 100%
OPERATING INCOME (LOSS):
TOWING AND RECOVERY EQUIPMENT $6,622 181% $14,564 179%
TOWING SERVICES (1) (2,954) -81% (6,410) -79%
$3,668 100% $8,154 100%
(1) Includes $6.0 million of special charges for the nine month period
ended January 31, 2000.
