Miller Industries Reports Fiscal 2002 First Quarter
Results
CHATTANOOGA, Tenn., Sept. 14 Miller Industries, Inc.
today announced financial results for its fiscal 2002 first
quarter ended July 31, 2001.
For the first quarter of 2002, net sales were $117.0 million compared with
$127.2 million in the first quarter of fiscal 2001. Operating income for the
fiscal 2002 first quarter increased to $1.4 million from $0.8 million in the
same period last year. The Company reported a net loss for the current period
of $2.5 million, or ($0.05) per basic and diluted share, compared with a net
loss of $2.1 million, or $(0.04) per basic and diluted share, a year ago.
Revenue in the Company's towing and recovery equipment segment was
relatively flat at $77.2 million compared to $77.6 million a year ago. The
Company continued to bear the impact of unusually high operating expenses
within the towing industry that have affected demand for towing and recovery
equipment products. Operating income for the towing and recovery equipment
segment in the fiscal 2002 first quarter was $1.8 million versus $2.5 million
in the first quarter of fiscal 2001. The reduction in operating income was
primarily a reflection of very competitive conditions in the industry,
particularly at the owned distributor level, which negatively impacted margins
during a period in which the Company was actively working to reduce
inventories.
Within the Company's RoadOne towing services segment, revenue for the
fiscal 2002 first quarter was $39.7 million versus $49.6 million in the
year-ago period. The year over year decline in revenue at RoadOne was due to
the sale or closing of underperforming markets. The operating loss at RoadOne
for the current quarter declined to $0.4 million from an operating loss of
$1.0 million in the previous quarter and $1.7 million in the year-ago period.
The reduction in operating losses compared to fourth quarter and year ago
levels reflects the disposal of the underperforming markets as well as actions
the Company has taken to reduce RoadOne's overhead costs.
Selling, general and administrative expenses for the fiscal 2002 first
quarter declined 22% to $14.1 million from $18.0 million a year ago as a
product of the tight control over operating expenses. Interest expense in the
first quarter of fiscal 2002 declined slightly to $3.8 million from
$4.0 million in the same period last year. Higher prevailing interest rates
and fees payable to the Company's lenders offset reduced borrowing levels
compared to the previous year. On July 26, 2001 Miller Industries entered
into a $110.0 million credit agreement that replaced the Company's previous
credit facility. Borrowing costs of the new agreement are substantially lower
than those of the previous facility, which should generate interest savings
beginning in the Company's second fiscal quarter.
Jeffrey I. Badgley, President and CEO of Miller Industries, commented,
"Our first quarter results demonstrate the continued progress we have made in
lowering our costs and improving our operations, especially at our RoadOne
segment, where we substantially reduced our operating loss compared to both
last year as well as the previous quarter. We continued to aggressively
manage our working capital, and were successful in reducing accounts
receivable, inventory and debt. Another accomplishment in the quarter was the
previously announced signing of a new bank agreement that affords us the
financial flexibility to carry out our business plans and dramatically reduces
our interest expense and other financing costs."
Mr. Badgley concluded, "While we are not getting much cooperation from the
demand side of our business, our focus remains on aggressively managing our
expenses to drive further improvements in our profitability. Barring further
erosion in market conditions, our goal is to return to profitability before
the end of the current fiscal year on the basis of reduced field operating and
overhead costs, as well as lower borrowing expenses."
Miller Industries is the world's leading integrated provider of vehicle
towing and recovery equipment and services. The Company markets its towing
services under the national brand name RoadOne(R) and its towing equipment
under a number of well-recognized brands.
Miller Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended
July 31,
%
2001 2000 Change
NET SALES $ 116,945 $ 127,152 -8%
COSTS AND EXPENSES:
COSTS OF OPERATIONS 101,435 108,320 -6%
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES 14,076 18,038 -22%
INTEREST EXPENSE, NET 3,793 3,967 -4%
TOTAL COSTS AND EXPENSES 119,304 130,325 -8%
LOSS BEFORE INCOME TAXES (2,359) (3,173) -26%
INCOME TAX PROVISION (BENEFIT) 189 (1,079) -118%
NET LOSS $ (2,548) $ (2,094) 22%
NET LOSS PER COMMON SHARE:
BASIC AND DILUTED $ (0.05) $ (0.04) 25%
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC AND DILUTED 46,709 46,708 0%
SUPPLEMENTAL SEGMENT DATA
(IN THOUSANDS)
Three Months Ended
April 30,
% of % of
2001 Total 2000 Total
NET SALES:
TOWING & RECOVERY EQUIPMENT $ 77,234 66% $ 77,556 61%
TOWING SERVICES 39,711 34% 49,596 39%
$ 116,945 100% $ 127,152 100%
OPERATING INCOME:
TOWING & RECOVERY EQUIPMENT 1,831 128% 2,460 310%
TOWING SERVICES (397) -28% (1,666) -210%
$ 1,434 100% $ 794 100%
