The Middleby Corporation Reports First Quarter Results
2015 First Quarter Financial Highlights
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Net sales increased 9.2% compared to the prior year first quarter.
Excluding the impact of acquisitions, sales increased 1.3% during the
first quarter of 2014. The impact of foreign exchange rates on foreign
sales translated into U.S. Dollars reduced net sales by approximately
$12.7 million or 3.4% during the first quarter of 2015. -
Net sales at the company’s
Commercial Foodservice Equipment Group increased$28.1 million , or 12.0%, to 262.2 million in the first quarter as compared to$234.1 million the prior year first quarter. During fiscal 2014, the company completed the acquisition of Concordia. During fiscal 2015, the company completed the acquisitions of Desmon,Goldstein Eswood and Marsal. Excluding the impact of these acquisitions, sales increased 7.9% in the first quarter, or by 10.0% on a constant currency basis, adjusting for foreign currency translation impact resulting from exchange rate changes in comparison to the prior year quarter. -
Net sales at the company’s
Food Processing Equipment Group decreased by$5.8 million , or 7.7%, to$69.8 million in the first quarter as compared to$75.6 million the prior year first quarter. During fiscal 2014, the company completed the acquisition of Processing Equipment Solutions. Excluding the impact of this acquisition, sales decreased by 13.2% in the first quarter, or 5.0% on a constant currency basis. -
Net sales at the company’s
Residential Kitchen Equipment Group increased by$11.8 million , or 18.8%, to$74.6 million in the first quarter as compared to$62.8 million in the prior year first quarter. During fiscal 2014, the company completed the acquisition of U-Line. Excluding the impact of this acquisition, sales decreased by 5.7% in the first quarter, or 4.9% on a constant currency basis. -
Gross profit in the first quarter increased to
$157.6 million from$143.0 million , reflecting the impact of higher sales volumes, offset by the impact of foreign exchange rates. The gross margin rate increased to 38.8% from 38.4%. The net increase in gross margin rate reflects the benefit of acquisition integration initiatives with improved margins at theFood Processing Equipment Group and Residential Kitchen Equipment Group, offset in part by the lower margins at recent acquisitions in theCommercial Foodservice Equipment Group . -
Operating income increased 19.1% in the first quarter to
$66.6 million from$55.9 million in the prior year quarter. Operating income was reduced by approximately$1.2 million as a result of currency translation during the quarter. Operating income also included$4.6 million of non-recurring charges associated with the closure of facilities and warehouse consolidations at theResidential Kitchen Equipment Group . -
Non-cash expenses included in operating income during the first
quarter of 2015 amounted to
$13.0 million , including$4.4 million of depreciation,$6.6 million of intangible amortization and$2.0 million of non-cash share based compensation. -
Other expense in the quarter increased to
$4.6 million from$0.9 million in the prior year quarter. Other expense in the quarter included$5.0 million of foreign exchange losses resulting from significant exchange rate changes which occurred during the first quarter. -
A tax provision of
$20.0 million , at an effective rate of 34.4%, was recorded during the first quarter 2015, as compared to a$17.6 million provision at a 34.5% effective rate in the prior year quarter.
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Earnings per share of
$0.67 included the impact of foreign exchange rate losses and restructuring expenses, which collectively reduced earnings per share by$0.13 per share. Excluding the impact of these items, earnings per share increased by 35.6%, to$0.80 per share. -
Total debt at the end of the first quarter amounted to
$639.0 million as compared to$598.2 million at the end of the fiscal 2014. The net increase in debt includes acquisition related financing related to Desmon,Goldstein Eswood and Marsal acquired during the first quarter.
Mr. Bassoul continued, “At our
Mr. Bassoul added, “At our
Conference Call
A conference call will be held at
Statements in this press release or otherwise attributable to the
company regarding the company's business which are not historical fact
are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
company cautions investors that such statements are estimates of future
performance and are highly dependent upon a variety of important factors
that could cause actual results to differ materially from such
statements. Such factors include variability in financing costs;
quarterly variations in operating results; dependence on key customers;
international exposure; foreign exchange and political risks affecting
international sales; changing market conditions; the impact of
competitive products and pricing; the timely development and market
acceptance of the company's products; the availability and cost of raw
materials; and other risks detailed herein and from time-to-time in the
company's
The
The
| THE MIDDLEBY CORPORATION | ||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(Amounts in 000’s, Except Per Share Information) |
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(Unaudited) |
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Three Months Ended |
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1st Qtr, 2015 | 1st Qtr, 2014 | ||||||
| Net sales | $ | 406,596 | $ | 372,478 | ||||
| Cost of sales | 249,034 | 229,502 | ||||||
| Gross profit | 157,562 | 142,976 | ||||||
| Selling & distribution expenses | 47,109 | 46,970 | ||||||
| General & administrative expenses | 43,873 | 40,073 | ||||||
| Income from operations | 66,580 | 55,933 | ||||||
| Interest expense and deferred | ||||||||
| financing amortization, net | 3,749 | 3,987 | ||||||
| Other expense, net | 4,561 | 865 | ||||||
| Earnings before income taxes | 58,270 | 51,081 | ||||||
| Provision for income taxes | 20,039 | 17,636 | ||||||
| Net earnings | $ | 38,231 | $ | 33,445 | ||||
| Net earnings per share: | ||||||||
| Basic | $ | 0.67 | $ | 0.59 | ||||
| Diluted | $ | 0.67 | $ | 0.59 | ||||
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Weighted average number shares: |
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| Basic | 56,917 | 56,457 | ||||||
| Diluted | 56,918 | 56,459 | ||||||
| THE MIDDLEBY CORPORATION | ||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in 000’s) |
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(Unaudited) |
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| Apr 4, 2015 | Jan 3, 2015 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 54,259 | $ | 43,945 | ||||
| Accounts receivable, net | 239,342 | 229,875 | ||||||
| Inventories, net | 276,383 | 255,776 | ||||||
| Prepaid expenses and other | 30,286 | 27,980 | ||||||
| Prepaid taxes | 10,023 | 5,538 | ||||||
| Current deferred tax assets | 51,697 | 51,017 | ||||||
| Total current assets | 661,990 | 614,131 | ||||||
| Property, plant and equipment, net | 142,080 | 129,697 | ||||||
| Goodwill | 819,274 | 808,491 | ||||||
| Other intangibles, net | 494,379 | 492,031 | ||||||
| Long-term deferred tax assets | 3,711 | 2,925 | ||||||
| Other assets | 21,402 | 18,856 | ||||||
| Total assets | $ | 2,142,836 | $ | 2,066,131 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current maturities of long-term debt | $ | 8,926 | $ | 9,402 | ||||
| Accounts payable | 111,424 | 98,327 | ||||||
| Accrued expenses | 213,387 | 220,585 | ||||||
| Total current liabilities | 333,737 | 328,314 | ||||||
| Long-term debt | 630,108 | 588,765 | ||||||
| Long-term deferred tax liability | 92,241 | 88,800 | ||||||
| Other non-current liabilities | 58,313 | 53,492 | ||||||
| Stockholders’ equity | 1,028,437 | 1,006,760 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,142,836 | $ | 2,066,131 | ||||
Source: The
The Middleby Corporation
Darcy Bretz, Investor and Public
Relations, (847) 429-7756
or
Tim FitzGerald, Chief Financial
Officer, (847) 429-7744