The Middleby Corporation Reports Third Quarter Results
2014 Third Quarter Financial Highlights
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Net sales increased 12.3%, to
$404.3 million , compared to the prior year third quarter. Excluding the impact of acquisitions, sales increased 7.4% during the third quarter. -
Net sales at the company’s
Commercial Foodservice Equipment Group increased by$32.0 million , or 13.9%, to$262.8 million in the third quarter as compared to$230.8 million the prior year third quarter. During fiscal 2013, the company completed the acquisitions of Wunder-Bar and Celfrost. During fiscal 2014, the company completed the acquisitions of Market Forge and Concordia. Excluding the impact of these acquisitions, net sales increased by 7.5% in the third quarter. -
Net sales at the company’s
Food Processing Equipment Group increased by$4.0 million , or 5.6%, to$75.2 million in the third quarter as compared to$71.2 million the prior year third quarter. During fiscal 2014, the company completed the acquisition of Process Equipment Solutions. Excluding the impact of this acquisition, net sales increased by$1.1 million , or 1.5% in the third quarter. -
Net sales at the company’s
Residential Kitchen Equipment Group increased by$8.3 million , or 14.3%, to$66.3 million in the third quarter of 2014 as compared to$58.0 million in prior year third quarter. -
Gross profit in the third quarter increased to
$162.4 million from$141.4 million , reflecting the impact of higher sales volumes. The gross margin rate increased from 39.3% to 40.2%. The increase in the gross margin rate from the prior year reflects improved margins atFood Processing Equipment Group resulting from the benefit of acquisition integration initiatives. -
Operating income increased in the third quarter to
$86.5 million from$67.5 million in the prior year third quarter. Operating income included a$6.5 million gain on settlement of a patent dispute. Excluding this item, operating income increased 18.4% in the third quarter to$79.9 million . -
Non-cash expenses included in operating income during the third
quarter of 2014 increased to
$15.2 million as compared to$11.9 million in the prior year third quarter. Non-cash expenses during the 2014 third quarter were comprised of$3.8 million of depreciation,$6.5 million of intangible amortization and$4.9 million of non-cash share based compensation. -
Total debt at the end of the 2014 third quarter amounted to
$515.4 million as compared to$592.7 million at the end of the second quarter, as cash generated from operations were utilized to repay debt.
“At the
Mr. Bassoul continued, “At Viking, we are focused on the launch of our new lineup of ranges, cooktops, ovens, refrigeration and ventilation products. We are making significant investments to promote the display of these new products on dealer showroom floors. Additionally, we are making significant investments in international markets to promote these products along with expanding our residential selling organization. We believe the investments we are making in 2014 are positioning us for profitable growth in 2015.”
Mr. Bassoul concluded, “We were pleased to recently announce the
acquisitions of Concordia and U-Line. Concordia is a leading
manufacturer of automated coffee and espresso machines. This acquisition
enhances our offering of innovative beverage equipment products for the
commercial foodservice industry. The acquisition of U-Line adds a
leading brand of premium under-counter refrigeration, wine preservation
and ice machines to our
Conference Call
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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
For more information about The
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THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in 000’s, Except Per Share Information) (Unaudited) |
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Three Months Ended |
Nine Months Ended |
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3rd Qtr, 2014 | 3rd Qtr, 2013 | 3rd Qtr, 2014 | 3rd Qtr, 2013 | |||||||||||||||
| Net sales | $ | 404,289 | $ | 360,013 | $ | 1,201,543 | $ | 1,051,265 | |||||||||||
| Cost of sales | 241,909 | 218,575 | 730,013 | 651,985 | |||||||||||||||
| Gross profit | 162,380 | 141,438 | 471,530 | 399,280 | |||||||||||||||
| Selling & distribution expenses | 42,006 | 41,769 | 137,078 | 116,559 | |||||||||||||||
| General & administrative expenses | 40,428 | 32,181 | 122,834 | 112,713 | |||||||||||||||
| Gain on litigation settlement | (6,519 | ) | -- | (6,519 | ) | -- | |||||||||||||
| Income from operations | 86,465 | 67,488 | 218,137 | 170,008 | |||||||||||||||
| Interest expense and deferred | |||||||||||||||||||
| financing amortization, net | 3,895 | 4,249 | 12,051 | 11,729 | |||||||||||||||
| Other expense, net | 993 | 1,394 | 2,053 | 1,998 | |||||||||||||||
| Earnings before income taxes | 81,577 | 61,845 | 204,033 | 156,281 | |||||||||||||||
| Provision for income taxes | 21,864 | 20,903 | 62,470 | 52,274 | |||||||||||||||
| Net earnings | $ | 59,713 | $ | 40,942 | $ | 141,563 | $ | 104,007 | |||||||||||
| Net earnings per share: | |||||||||||||||||||
| Basic | $ | 1.05 | $ | 0.73 | $ | 2.50 | $ | 1.87 | |||||||||||
| Diluted | $ | 1.05 | $ | 0.73 | $ | 2.50 | $ | 1.86 | |||||||||||
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Weighted average number shares: |
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| Basic | 56,866 | 56,179 | 56,729 | 55,706 | |||||||||||||||
| Diluted | 56,868 | 56,227 | 56,731 | 55,966 | |||||||||||||||
| Comprehensive income | $ | 47,108 | $ | 47,123 | $ | 132,372 | $ | 103,375 | |||||||||||
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THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in 000’s) (Unaudited) |
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| Sep 27, 2014 | Dec 28, 2013 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 38,152 | $ | 36,894 | ||||
| Accounts receivable, net | 228,464 | 205,264 | ||||||
| Inventories, net | 260,005 | 220,116 | ||||||
| Prepaid expenses and other | 25,946 | 32,322 | ||||||
| Prepaid taxes | 629 | 801 | ||||||
| Current deferred taxes | 48,939 | 50,337 | ||||||
| Total current assets | 602,135 | 545,734 | ||||||
| Property, plant and equipment, net | 128,622 | 125,457 | ||||||
| Goodwill | 723,640 | 687,955 | ||||||
| Other intangibles, net | 437,732 | 447,944 | ||||||
| Long-term deferred tax assets | 2,853 | 1,641 | ||||||
| Other assets | 18,935 | 10,475 | ||||||
| Total assets | $ | 1,913,917 | $ | 1,819,206 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
|
Current maturities of long-term debt |
$ |
8,831 |
$ |
1,408 |
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| Accounts payable | 101,675 | 96,518 | ||||||
| Accrued expenses | 219,403 | 213,459 | ||||||
| Total current liabilities | 329,909 | 311,385 | ||||||
| Long-term debt | 506,552 | 570,190 | ||||||
| Long-term deferred tax liability | 68,446 | 61,433 | ||||||
| Other non-current liabilities | 45,992 | 37,851 | ||||||
| Stockholders’ equity | 963,018 | 838,347 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,913,917 | $ | 1,819,206 | ||||
Source: The
The Middleby Corporation
Darcy Bretz, Investor and Public
Relations, (847) 429-7756
or
Tim FitzGerald, Chief Financial
Officer, (847) 429-7744