Miller Industries(US:MLR)2020-03-05 18:51Financial Data and Key Metrics Changes - Revenue for Q4 2019 increased by 12.9% to $203.1 million compared to $180 million in Q4 2018, driven by broad-based demand [7][11] - Quarterly gross profits rose by 21.6% year-over-year to $26.9 million, with gross margin expanding by 100 basis points to 13.3% [9][13] - Net income for Q4 2019 was $11.7 million or $1.03 per share, compared to $10.8 million or $0.95 per share in Q4 2018 [9][14] - For the full year 2019, net sales were $818.2 million, a 15% increase from $711.7 million in 2018, with net income rising by 15.9% to $39.1 million or $3.43 per diluted share [15] Business Line Data and Key Metrics Changes - Domestic business showed strong performance with steady new order rates and full capacity among distributors [7] - International business performed in line with expectations year-over-year, benefiting from a catch-up related to supply chain delays experienced in Q3 [8] Market Data and Key Metrics Changes - The backlog remains healthy in both domestic and international markets, indicating strong demand [10][23] - Customer sentiment remains confident and strong, with order intake consistent with previous quarters [32] Company Strategy and Development Direction - The company is committed to operational excellence, disciplined cost control, and strategic capital deployment to drive long-term growth [22][24] - A quarterly cash dividend of $0.18 per share was announced, reflecting the company's commitment to returning capital to shareholders [19][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the backlog and underlying fundamentals despite potential impacts from COVID-19 [23][24] - The company is actively monitoring supply chain developments and has not yet seen major impacts from factory issues in China [34] Other Important Information - The company reduced long-term debt by approximately $5 million, maintaining a strong balance sheet and generating solid free cash flow [18] - New board members were welcomed, enhancing the company's governance and leadership [25][26] Q&A Session Summary Question: Impact of COVID-19 on demand from dealers - Management indicated that domestic order intake remains consistent and customer sentiment is strong [31][32] Question: Anticipated supply chain issues due to factory problems in China - Management has not seen major impacts and is actively monitoring the supply chain situation [34] Question: Capital expenditure plans for the year - Management expects to return to normal levels of CapEx, focusing on investments that enhance sustainability [36]