Miller Industries Reports Fiscal 2001 First Quarter Results
14 September 2000
Miller Industries Reports Fiscal 2001 First Quarter Results; Provides Update on RoadOne(R) Cost-Reduction Program
CHATTANOOGA, Tenn., Sept. 14 Miller Industries, Inc.
today announced financial results for its fiscal 2001 first
quarter ended July 31, 2000.
For the first quarter of 2001, net sales were $127.0 million compared with
$134.3 million in the first quarter of fiscal 2000. Operating income for the
fiscal 2001 first quarter was $0.2 million compared with $5.2 million in the
same period last year. The Company reported a net loss for the current period
of $2.1 million, or ($0.04) per basic and diluted share, compared with net
income of $1.4 million, or $0.03 per basic and diluted share, a year ago.
Revenues in Miller Industries' towing and recovery equipment segment were
$77.4 million versus $83.0 million a year ago. The lower sales volume was
attributed to lower chassis sales as well as the continuing impact of
unusually high fuel costs, rising interest rates, and other expenses that have
affected demand for towing and recovery equipment products. Operating income
for the towing and recovery equipment segment in the fiscal 2001 first quarter
was $1.8 million versus $4.5 million in the first quarter of fiscal 2000,
reflecting the decreased sales volumes somewhat offset by the Company's
continued focus on cost control.
Within the Company's towing services segment, revenues for the fiscal 2001
first quarter were $49.6 million versus $51.4 million in the year-ago period,
reflecting continued poor performance from the bottom one-third of the
operations. RoadOne reported an operating loss for the current quarter of
$1.7 million, compared with operating income of $0.7 million in the year-ago
period and an operating loss of $7.2 million, before impairment charges, in
the fourth quarter of fiscal 2000. The significant reduction in operating
losses from fourth quarter levels primarily reflects actions the Company has
taken to reduce RoadOne's corporate and field operating costs across all of
its markets, as well as lower depreciation and amortization expenses.
Selling, general and administrative expenses for the fiscal 2001 first
quarter were $18.5 million compared with $19.2 million a year ago. Interest
expense in the first quarter of fiscal 2001 was $3.3 million compared with
$2.6 million in the same period last year. The change is primarily due to
amendments to the Company's bank credit facility in July 2000.
Jeffrey I. Badgley, President and CEO of Miller Industries, commented,
"While conditions in our marketplace remain challenging, we are satisfied with
the progress we have made in the first quarter of fiscal 2001. With demand
for our towing and recovery equipment continuing to be negatively impacted by
the cost pressures facing our customers, we remained focused on careful cost
control, and succeeded in maintaining operating profitability in this segment,
despite the decrease in sales volume. Our focus on working capital management
also allowed us to reduce our borrowings by approximately $3 million during
the period. At RoadOne, the top two-thirds of our markets continued to meet
or exceed our performance expectations, and the steps we have taken to reduce
operating costs, including the reduction of our corporate staff headcount by
approximately 25%, began to have a positive impact on RoadOne's results during
the quarter."
The Company continues its efforts on the cost-reduction program begun in
July. To date, labor and overhead expenses have been reduced in both the
towing equipment and towing service segments of the business. At RoadOne, the
Company has sold or closed several locations in single terminal markets. In
addition, the Company is currently in negotiations to sell additional
locations, and expects to sell other RoadOne assets over the next two
quarters. To enhance shareholder value, the Company continues to investigate
all financial alternatives with respect to the towing service business, and is
retaining a financial advisor to assist in this process.
Mr. Badgley concluded, "We remain focused on executing our cost-reduction
program at RoadOne and on continuing to control costs in our manufacturing
operation. In our manufacturing business, we believe we are taking effective
and aggressive steps to manage through this period of industry uncertainty.
With our position as an industry leader with market-leading brands, we are
confident we will benefit when market conditions improve. At RoadOne, we have
been successful in the first steps of our cost reduction plan, and we will
continue to execute on this plan as we strive to realize the full potential of
this business."
Miller Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands except per share data)
Three Months Ended
July 31,
%
2000 1999 Change
NET SALES $127,010 $134,336 -5%
COSTS AND EXPENSES:
COSTS OF OPERATIONS 108,320 109,914 -1%
SELLING, GENERAL, AND 18,534 19,228 -4%
ADMINISTRATIVE EXPENSES
INTEREST EXPENSE, NET 3,329 2,638 26%
TOTAL COSTS AND EXPENSES 130,183 131,780 -1%
(LOSS) INCOME BEFORE
INCOME TAXES (3,173) 2,556 -224%
INCOME TAX BENEFIT (PROVISION) 1,079 (1,112) -197%
NET (LOSS) INCOME $(2,094) $1,444 -245%
NET (LOSS) INCOME PER COMMON SHARE:
BASIC $ (0.04) $ 0.03 -233%
DILUTED $ (0.04) $ 0.03 -233%
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 46,708 46,689 0%
DILUTED 46,708 47,290 -1%
SUPPLEMENTAL SEGMENT DATA
(IN THOUSANDS)
Three Months Ended
July 31,
2000 1999
% of % of
Total Total
NET SALES:
TOWING & RECOVERY EQUIPMENT 77,414 61% 82,951 62%
TOWING SERVICES 49,596 39% 51,385 38%
$127,010 100% $134,336 100%
OPERATING INCOME:
TOWING & RECOVERY EQUIPMENT 1,822 1168% 4,450 86%
TOWING SERVICES (1,666) -1068% 744 14%
$ 156 100% $ 5,194 100%