Miller Industries Reports Fiscal 2001 Second Quarter Results
15 December 2000
Miller Industries Reports Fiscal 2001 Second Quarter Results
CHATTANOOGA, Tenn., Dec. 15 Miller Industries, Inc.
today announced financial results for its fiscal 2001 second
quarter ended October 31, 2000.
For the second quarter of fiscal 2001, net sales were $129.3 million
compared with $148.7 million in the fiscal 2000 second quarter. Operating
income for the quarter was $1.1 million compared with $0.7 million in the same
period last year, which included non-recurring charges of $6.0 million. The
Company reported a net loss for the current period of $1.8 million, or ($0.04)
per basic and diluted share, compared with a net loss of $1.2 million, or
($0.02) per basic and diluted share, for the fiscal 2000 second quarter.
For the six-month period ended October 31, 2000, net sales were
$256.3 million versus $283.1 million during the prior-year period. Operating
income was $1.2 million, compared to $5.9 million last year, including the
non-recurring charges of $6.0 million. For the first six-months of fiscal
2001, the Company reported a net loss of $3.9 million, or ($0.08) per basic
and diluted share, compared with net income of $0.3 million, or $0.01 per
basic and diluted share, a year ago.
Revenues in Miller Industries' towing and recovery equipment segment were
$81.8 million for the fiscal 2000 second quarter versus $96.3 million a year
ago. The lower sales volume was due to lower chassis sales, the continuing
impact of 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 second
quarter was $2.4 million versus $6.1 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, revenues for the fiscal 2001
second quarter were $47.6 million versus $52.5 million in the year-ago period.
The revenue decrease was due to the sale and closure of seven underperforming
RoadOne markets during the second quarter. RoadOne reported an operating loss
for the second quarter of $1.3 million, compared with an operating loss of
$5.3 million including the non-recurring charges in the year-ago period and an
operating loss of $1.7 million in the fiscal 2001 first quarter. The
significant reduction in operating losses from last year's levels, and the
sequential quarter improvement, primarily reflects the Company's program 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 second
quarter declined 13% to $17.2 million from $19.7 million a year ago. SG&A
expenses in the recent quarter were 7.5% lower than the first quarter of
fiscal 2001. Interest expense in the second quarter of fiscal 2001 was
$3.8 million compared with $2.8 million in the same period last year,
attributable to higher interest rates on the Company's bank credit facility.
During the quarter, the Company further reduced its borrowings by
approximately $4.0 million.
The Company also noted that its existing bank credit facility matures on
August 1, 2001, and that because the credit facility matures during the next
12 months, the Company is required by generally accepted accounting principles
to reclassify the entire outstanding balance as a current liability in its
consolidated financial statements as of October 31, 2000. At October 31,
2000, the credit facility had an outstanding balance of $119.0 million. The
Company has been engaged in discussions with its lenders regarding an
extension of the maturity date, and intends to continue those discussions. In
addition, the Company is currently engaged in discussions with other
institutions to replace the credit facility in the event that the Company is
unable to reach commercially reasonable terms with its current lenders.
Jeffrey I. Badgley, President and CEO of Miller Industries, said, "During
the quarter, we continued to make solid progress despite the challenging
conditions that have characterized our marketplace. While our customers
continued to face cost pressures that impacted demand for towing and recovery
equipment, our focus on controlling costs enabled us to improve operating
profitability in this segment compared to the first quarter of fiscal 2001.
Our program to reduce costs at RoadOne also remains on track. Through
October 31, we have sold or closed seven underperforming markets and continued
to reduce overhead at the corporate level, actions which are reflected in our
reduced expenses in the second quarter. At the same time, the top two-thirds
of our RoadOne markets continued to meet or exceed our expectations."
Mr. Badgley continued, "While this remains a difficult operating
environment for the Company, we continue to take significant actions to reduce
costs and improve operating performance in both segments of the business. We
are pleased with the progress at RoadOne, and we continue to move aggressively
to address the remaining underperforming markets. Since the end of the second
quarter, we have sold three additional markets and one location."
Miller Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended Six Months Ended
October 31, October 31,
% %
2000 1999 Change 2000 1999 Change
NET SALES $129,331 $148,738 -13% $256,342 $283,074 -9%
COSTS AND EXPENSES:
COSTS OF
OPERATIONS 111,123 122,268 -9% 219,444 232,182 -5%
SELLING, GENERAL,
AND ADMINISTRATIVE
EXPENSES 17,145 19,680 -13% 35,678 38,908 -8%
NON-RECURRING
CHARGES 0 6,041 n/m 0 6,041 n/m
INTEREST EXPENSE,
NET 3,821 2,792 37% 7,150 5,430 32%
TOTAL COSTS AND
EXPENSES 132,089 150,781 -12% 262,272 282,561 -7%
INCOME (LOSS) BEFORE
INCOME TAXES (2,758) (2,043) 35% (5,930) 513 n/m
INCOME TAX PROVISION
(BENEFIT) (927) (892) 4% (2,006) 220 n/m
NET INCOME (LOSS) $(1,831) $(1,151) 59% $(3,924) $293 n/m
NET INCOME (LOSS)
PER COMMON SHARE:
BASIC $(0.04) $(0.02) 100% $(0.08) $0.01 n/m
DILUTED $(0.04) $(0.02) 100% $(0.08) $0.01 n/m
NET INCOME (LOSS)
PER DILUTED COMMON
SHARE EXCLUDING
NON-RECURRING
CHARGES $(0.04) $0.05 n/m $(0.08) $0.08 n/m
WEIGHTED AVERAGE
SHARES OUTSTANDING:
BASIC 46,710 46,699 0% 46,709 46,694 0%
DILUTED 46,710 46,699 0% 46,709 47,066 -1%
SUPPLEMENTAL SEGMENT DATA
(IN THOUSANDS)
Three Months Ended
October 31,
% of % of
2000 Total 1999 Total
REVENUE:
TOWING AND RECOVERY EQUIPMENT 81,751 63% 96,262 65%
TOWING SERVICES 47,580 37% 52,476 35%
$129,331 100% $148,738 100%
OPERATING INCOME (LOSS):
TOWING AND RECOVERY EQUIPMENT 2,411 227% 6,054 808%
TOWING SERVICES (1) (1,348) -127% (5,305) -708%
$1,063 100% $749 100%
Six Months Ended
October 31,
% of % of
2000 Total 1999 Total
NET SALES:
TOWING AND RECOVERY EQUIPMENT 159,166 62% 179,213 63%
TOWING SERVICES 97,176 38% 103,861 37%
$256,342 100% $283,074 100%
OPERATING INCOME (LOSS):
TOWING AND RECOVERY EQUIPMENT 4,234 347% 10,503 177%
TOWING SERVICES (1) (3,014) -247% (4,560) -77%
$1,220 100% $5,943 100%
(1) Includes $6.0 million of non-recurring charges for the three and six
months ended October 31, 1999.