Net Income Down Over 42 Percent At Miller Industries
Wednesday, August 5, 2020
Miller Industries, Inc. announced financial results for the second quarter ended June 30, including a 42.2 percent drop in net income.
Net income in the second quarter of 2020 was
$5.8 million, or
$0.51 per share, a decrease of 45.5%, compared to net income of
$10.7 million, or
$0.94 per share, in the prior year period. Long-term obligations decreased by
$25.0 million, reducing our credit facility balance to
$5.0 million as of
June 30, 2020." style="margin-top: 0px; margin-bottom: 1em;">Net sales were
$128.5 million compared to
$222.3 million for the second quarter of 2019. Net income in the second quarter of 2020 was
$5.8 million, or
$0.51 per share, a decrease of 45.5 percent, compared to net income of
$10.7 million, or
$0.94 per share, in the prior year period. Long-term obligations decreased by
$25.0 million, reducing our credit facility balance to
$5.0 million as of
June 30, 2020.
Gross profit for the second quarter of 2020 was $17.7 million, or 13.8 percent of net sales, compared to $25.2 million, or 11.3 percent of net sales, for the second quarter of 2019. Selling, general and administrative expenses were $10.1 million, or 7.8 percent of net sales, compared to $11.0 million, or 4.9 percent of net sales, in the prior year period.
For the six months ended June 30, 2020, net sales were $304.6 million, a decrease of 27.4 percent compared to $419.6 million in the prior year period. The company reported net income of $11.3 million, or $0.99 per share for the six months of 2020, a decrease of 41.8 percent compared to net income of $19.3 million, or $1.70 per share for the first six months of 2019.
The company also announced that its Board of Directors has declared a quarterly cash dividend of $0.18 per share, payable Sept. 14, 2020 to shareholders of record at the close of business on September 7, 2020, the 39th consecutive quarter that the company has paid a dividend.
Jeffrey I. Badgley, Co-Chief Executive Officer of the company, stated, "Our performance during the second quarter continued to be impacted by the ongoing COVID-19 pandemic. Second quarter revenue declined 42.2 percent year-over-year as a result of temporary shutdowns of some of our facilities, the shutdown of part of our supply chain, and the implementation of health and safety operating adjustments, all of which weighed on our production capacity. Despite the challenging circumstances, we remained focused on optimizing our production schedules to meet customer demand and reduce operating costs, while maintaining stringent social distancing and sanitary protocols to protect the health and safety of our employees. Additionally, we maintained a constant dialogue with our distribution network throughout the quarter so we could quickly and efficiently fulfill customer orders. I am very proud of the continued commitment to operational excellence from the entire Miller team as we work together to navigate the business through this uncertain market environment.
"During the second quarter, we continued to invest in crucial technological improvements that will further enhance our operational efficiency and enable us to emerge from this pandemic stronger than before. While we are still in the early stages of this rollout, I am pleased to announce that we remain on schedule. In addition to our operational improvements, we reduced our outstanding debt levels during the quarter to further strengthen our balance sheet and increase financial flexibility as we operate in this unpredictable environment. As we move into the second half of 2020, I am confident that our unwavering dedication to operational efficiency and our healthy balance sheet position us favorably to capitalize on future growth coming out of this crisis."