Miller Industries, Inc. (NYSE:MLR) Q1 2022 Earnings Conference Call May 5, 2022 12:00 PM ET

Company Participants

Mike Gaudreau - FTI Consulting

Will Miller - President & Chief Executive Officer

Debbie Whitmire - Executive Vice President & Chief Financial Officer

Conference Call Participants

Arnie Ursaner - Ursaner Family Office

Operator

Good day, ladies and gentlemen, and welcome to the Miller Industries First Quarter 2022 Results Conference Call. Please note, this event is being recorded.

And now, at this time, I would like to turn the call over to Mike Gaudreau at FTI Consulting. Please go ahead sir.

Mike Gaudreau

Thank you, and good afternoon, everyone. I would like to welcome you to the Miller Industries conference call. We are here to discuss the company's 2022 first quarter results which were released after the close of the market yesterday.

With us from the management team today are Bill Miller, Chairman of the Board; Will Miller, President and CEO; Jeff Badgley, President of International and Military; Debbie Whitmire, Executive Vice President and CFO; Frank Madonia, Executive Vice President Secretary and General Counsel; Vince Tiano, Chief Revenue Officer; and Jamison Linden, Chief Manufacturing Officer.

Today's call will begin with formal remarks from management followed by a question-and-answer session. Please note in this afternoon's conference call, management may make forward-looking statements in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

I'd like to call your attention to the risks related to these statements, which are more fully described in the company's annual report filed on Form 10-K, and other filings with the Securities and Exchange Commission.

At this time, I'd like to turn the call over to Will. Please go ahead, Will.

Will Miller

Thank you, and good afternoon, everyone. Our first quarter results are reflective of the continued effects of the global supply chain crisis and related inflationary pressures on both raw materials and labor that we and other businesses have been experiencing over the past several quarters. Despite this, we were pleased to be able to deliver both sequential and year-over-year revenue growth due to the strong demand we continue to see for our products.

Our sales increased 26.9% to $215.5 million, compared to the first quarter last year and 6.9%, compared to the fourth quarter of 2021. Gross profit for the first quarter was $15.3 million, a decrease of roughly 1.7% compared to the prior quarter. While gross margin in the first quarter dropped approximately 220 basis points year-over-year driven by continuation of inflationary pressures on labor and materials, part shortages and global supply chain inefficiencies.