UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 9, 2022

THE MIDDLEBY CORPORATION
(Exact Name of Registrant as Specified in its Charter)

Delaware
001-9973
36-3352497
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation)
 
Identification No.)

1400 Toastmaster Drive, Elgin, Illinois 60120
(Address of Principal Executive Offices) (Zip Code)

(847) 741-3300
(Registrant’s telephone number, including area code)

N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class
  Trading Symbol(s)
  Name of Each Exchange on Which Registered
Common Stock
  MIDD
 
The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02
Results of Operations and Financial Condition.

On November 9, 2022, The Middleby Corporation (the “Company”) issued a press release announcing its financial results for the third quarter ended October 1, 2022. A copy of that press release is furnished as Exhibit 99.1 and incorporated herein by reference.

The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K (including the exhibit hereto) shall not be considered "filed" under the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into future filings by the Company under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly sets forth in such future filing that such information is to be considered "filed" or incorporated by reference therein.

Item 9.01. Financial Statements and Exhibits.
   

(c)      Exhibits.

Exhibit No.
  Description
     
Exhibit 99.1   The Middleby Corporation press release dated November 9, 2022.
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


  THE MIDDLEBY CORPORATION
     
     
Dated:  November 9, 2022 By:
/s/ Bryan E. Mittelman  
  Bryan E. Mittelman
  Chief Financial Officer

Exhibit Index








 Exhibit 99.1
 

The Middleby Corporation Reports Third Quarter Results

  • Revenue of $993 million, a 21.5% increase year over year
  • Diluted Earnings per share of $1.92 and adjusted net earnings per share of $2.18, an increase of 13.5% year over year
  • Adjusted EBITDA of $212 million, a 23.3% increase year over year
  • Profitability grew to an organic adjusted EBITDA margin of 22.6%
  • Completed the acquisition of CP Packaging, expanding Middleby’s offerings in packaging innovation
  • Completed the acquisition of Colussi Ermes, enhancing Middleby’s automated washing & food safety solutions

 

ELGIN, Ill.--(BUSINESS WIRE)--November 9, 2022--The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of equipment for the commercial foodservice, food processing, and residential kitchen industries, today reported net earnings for the third quarter of 2022.

“We continue to execute on our strategic and operating initiatives, while realizing growth in sales and profitability. We reported record third quarter sales and EBITDA, with margins ahead of pre-covid levels despite significant continued inflationary effects impacting the quarter,” said Tim FitzGerald, CEO of The Middleby Corporation.

2022 Third Quarter Financial Results

  • Net sales increased 21.5% in the third quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales increased 14.2% in the third quarter over the comparative prior year period, reflecting higher shipments as we realize benefits of investments to increase our production throughput.
  • Organic net sales (a non-GAAP measure) increases were reported for all three segments due to improvements in market conditions and consumer demand in the third quarter of 2022. A reconciliation of reported net sales by segment is as follows:

 

Commercial

Foodservice

 

Residential

Kitchen

 

Food

Processing

 

Total

Company

Reported Net Sales Growth

21.9 %

 

14.3 %

 

31.6 %

 

21.5 %

Acquisitions

7.4 %

 

17.7 %

 

14.7 %

 

10.9 %

Foreign Exchange Rates

(2.5)%

 

(5.7)%

 

(4.8)%

 

(3.6)%

Organic Net Sales Growth (1) (2)

17.0 %

 

2.3 %

 

21.7 %

 

14.2 %

(1) Organic net sales growth defined as total sales growth excluding impact of acquisitions and foreign exchange rates

(2) Totals may be impacted by rounding

  • Foreign exchange losses were approximately $8.6 million in the third quarter, which negatively impacted adjusted earnings per share by $0.12. For the nine months period, foreign exchange losses were approximately $18.2 million, which negatively impacted adjusted earnings per share by $0.25.
  • Adjusted EBITDA (a non-GAAP measure) was $212.3 million, in the third quarter of 2022 due to the impact of higher sales volumes and profitability initiatives. A reconciliation of organic adjusted EBITDA (a non-GAAP measure) by segment is as follows:

 

Commercial

Foodservice

 

Residential

Kitchen

 

Food

Processing

 

Total

Company

Adjusted EBITDA

26.7 %

 

15.8 %

 

22.2 %

 

21.4 %

Acquisitions

0.1 %

 

(4.9)%

 

(1.5)%

 

(1.1)%

Foreign Exchange Rates

— %

 

(0.1)%

 

(0.3)%

 

(0.1)%

Organic Adjusted EBITDA (1) (2)

26.5 %

 

20.6 %

 

23.9 %

 

22.6 %

(1) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of acquisitions and foreign exchange rates.

(2) Totals may be impacted by rounding

  • Operating cash flows during the third quarter amounted to $84.0 million in comparison to $173.7 million in the prior year period. The total leverage ratio per our credit agreements was 3.1x. The trailing twelve month bank agreement pro-forma EBITDA was $871.7 million.
  • Cash balances at the end of the quarter were $144.9 million. Net debt, defined as debt excluding the unamortized discount associated with the Convertible Notes less cash, at the end of the 2022 fiscal third quarter amounted to $2.7 billion as compared to $2.3 billion at the end of fiscal 2021. Debt increased $130 million related to recent business acquisitions. Additionally, our borrowing availability at quarter end was approximately $2.1 billion.

“The demand outlook for our products at both our commercial foodservice and food processing segments remains strong. We are engaged with customers on our latest innovations offering solutions to address labor, energy, food costs and speed. We have made significant investments in technology and automation throughout the pandemic positioning us better than ever to support the challenges facing our customers today.”

“The residential housing market has become significantly more challenged with the impact of interest rate hikes and inflationary effects that has slowed consumer spend on residential kitchen equipment. While there is significant uncertainty as we move into the next year, our order backlog remains ahead of pre-covid levels. We are confident in our ability to maintain industry-leading profitability levels even in challenging market conditions. We expect investments made over the past several years in our award-winning showrooms, industry-leading culinary teams, and our newly developed designer services programs will increase market penetration of our exciting portfolio of industry leading brands and products,” concluded Mr. FitzGerald.

Conference Call

The company has scheduled a conference call to discuss the third quarter results at 11 a.m. Eastern/10 a.m. Central Time on November 9th. The conference call is accessible through the Investor Relations section of the company website at www.middleby.com. If website access is not available, attendees can join the conference by dialing (833) 630-1956 or (412) 317-1837 and ask to join the Middleby conference call. The conference call will be available for replay from the company’s website.

Statements in this press release or otherwise attributable to the company regarding the company's business which are not historical facts 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 SEC filings. Any forward-looking statement speaks only as of the date hereof, and the company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

The Middleby Corporation is a global leader in the foodservice industry. The company develops and manufactures a broad line of solutions used in commercial foodservice, food processing, and residential kitchens. Supporting the company’s pursuit of the most sophisticated innovation, the state-of-the-art Middleby Innovation Kitchens showcases and demonstrates the most advanced Middleby solutions. In 2022 Middleby was named a World’s Best Employer by Forbes and is a proud philanthropic partner to organizations addressing food insecurity.


THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in 000’s, Except Per Share Information)

(Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

3rd Qtr,

2022

 

3rd Qtr,

2021

 

3rd Qtr,

2022

 

3rd Qtr,

2021

Net sales

$

992,871

 

 

$

817,545

 

 

$

3,001,148

 

 

$

2,384,376

 

Cost of sales

 

627,639

 

 

 

517,918

 

 

 

1,944,664

 

 

 

1,505,149

 

 

 

 

 

 

 

 

 

Gross profit

 

365,232

 

 

 

299,627

 

 

 

1,056,484

 

 

 

879,227

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

201,200

 

 

 

175,354

 

 

 

596,757

 

 

 

496,022

 

Restructuring expenses

 

2,327

 

 

 

791

 

 

 

8,231

 

 

 

2,596

 

Merger termination fee

 

 

 

 

(110,000

)

 

 

 

 

 

(110,000

)

Gain on sale of plant

 

 

 

 

 

 

 

 

 

 

(763

)

Income from operations

 

161,705

 

 

 

233,482

 

 

 

451,496

 

 

 

491,372

 

 

 

 

 

 

 

 

 

Interest expense and deferred financing amortization, net

 

24,067

 

 

 

13,192

 

 

 

62,563

 

 

 

43,481

 

Net periodic pension benefit (other than service costs & curtailment)

 

(9,944

)

 

 

(11,363

)

 

 

(32,244

)

 

 

(34,268

)

Other expense (income), net

 

8,529

 

 

 

794

 

 

 

18,478

 

 

 

(1,366

)

 

 

 

 

 

 

 

 

Earnings before income taxes

 

139,053

 

 

 

230,859

 

 

 

402,699

 

 

 

483,525

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

34,684

 

 

 

54,893

 

 

 

99,327

 

 

 

97,711

 

 

 

 

 

 

 

 

 

Net earnings

$

104,369

 

 

$

175,966

 

 

$

303,372

 

 

$

385,814

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.94

 

 

$

3.19

 

 

$

5.60

 

 

$

6.99

 

 

 

 

 

 

 

 

 

Diluted

$

1.92

 

 

$

3.09

 

 

$

5.50

 

 

$

6.83

 

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

53,867

 

 

 

55,232

 

 

 

54,190

 

 

 

55,225

 

 

 

 

 

 

 

 

 

Diluted

 

54,384

 

 

 

56,939

 

 

 

55,134

 

 

 

56,526

 


THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in 000’s)

(Unaudited)

 

Oct 1, 2022

 

Jan 1, 2022

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

$

144,918

 

$

180,362

Accounts receivable, net

 

593,514

 

 

577,142

Inventories, net

 

1,062,634

 

 

837,418

Prepaid expenses and other

 

121,271

 

 

92,269

Prepaid taxes

 

28,201

 

 

19,894

Total current assets

 

1,950,538

 

 

1,707,085

 

 

 

 

Property, plant and equipment, net

 

423,947

 

 

380,980

Goodwill

 

2,287,420

 

 

2,243,469

Other intangibles, net

 

1,781,801

 

 

1,875,377

Long-term deferred tax assets

 

22,340

 

 

33,194

Other assets

 

205,815

 

 

143,493

 

 

 

 

Total assets

$

6,671,861

 

$

6,383,598

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current maturities of long-term debt

$

44,664

 

$

27,293

Accounts payable

 

261,169

 

 

304,740

Accrued expenses

 

631,945

 

 

582,855

Total current liabilities

 

937,778

 

 

914,888

 

 

 

 

Long-term debt

 

2,693,325

 

 

2,387,001

Long-term deferred tax liability

 

220,400

 

 

186,935

Accrued pension benefits

 

154,256

 

 

219,680

Other non-current liabilities

 

167,559

 

 

180,818

 

 

 

 

Stockholders' equity

 

2,498,543

 

 

2,494,276

 

 

 

 

Total liabilities and stockholders' equity

$

6,671,861

 

$

6,383,598


THE MIDDLEBY CORPORATION

NON-GAAP SEGMENT INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

 

 

 

 

 

 

 

 

 

Commercial

Foodservice

 

Residential

Kitchen

 

Food

Processing

 

Total

Company (1)

Three Months Ended October 1, 2022

 

 

 

 

 

 

 

Net sales

$

623,662

 

 

$

220,965

 

 

$

148,244

 

 

$

992,871

 

Segment Operating Income

$

143,678

 

 

$

29,788

 

 

$

26,982

 

 

$

161,705

 

Operating Income % of net sales

 

23.0

%

 

 

13.5

%

 

 

18.2

%

 

 

16.3

%

 

 

 

 

 

 

 

 

Depreciation

 

5,855

 

 

 

1,861

 

 

 

1,558

 

 

 

9,479

 

Amortization

 

14,283

 

 

 

1,289

 

 

 

4,311

 

 

 

19,883

 

Restructuring expenses

 

663

 

 

 

1,894

 

 

 

(230

)

 

 

2,327

 

Acquisition related adjustments

 

1,836

 

 

 

 

 

 

303

 

 

 

3,189

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

15,761

 

Segment adjusted EBITDA

$

166,315

 

 

$

34,832

 

 

$

32,924

 

 

$

212,344

 

Adjusted EBITDA % of net sales

 

26.7

%

 

 

15.8

%

 

 

22.2

%

 

 

21.4

%

 

 

 

 

 

 

 

 

Three Months Ended October 2, 2021

 

 

 

 

 

 

 

Net sales

$

511,480

 

 

$

193,395

 

 

$

112,670

 

 

$

817,545

 

Segment Operating Income

$

105,529

 

 

$

31,322

 

 

$

21,425

 

 

$

233,482

 

Operating Income % of net sales

 

20.6

%

 

 

16.2

%

 

 

19.0

%

 

 

28.6

%

 

 

 

 

 

 

 

 

Depreciation

 

5,793

 

 

 

3,608

 

 

 

1,353

 

 

 

10,876

 

Amortization

 

12,822

 

 

 

3,589

 

 

 

1,773

 

 

 

18,184

 

Restructuring expenses

 

473

 

 

 

278

 

 

 

40

 

 

 

791

 

Acquisition related adjustments

 

66

 

 

 

1,676

 

 

 

 

 

 

1,742

 

Acquisition deal costs

 

 

 

 

 

 

 

 

 

 

(103,106

)

Stock compensation

 

 

 

 

 

 

 

 

 

 

10,197

 

Segment adjusted EBITDA

$

124,683

 

 

$

40,473

 

 

$

24,591

 

 

$

172,166

 

Adjusted EBITDA % of net sales

 

24.4

%

 

 

20.9

%

 

 

21.8

%

 

 

21.1

%

 

 

 

 

 

 

 

 

(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $21.7 million and $17.6 million for the three months ended October 1, 2022 and October 2, 2021, respectively.

 

 


THE MIDDLEBY CORPORATION

NON-GAAP SEGMENT INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

 

 

 

 

 

 

 

 

 

Commercial

Foodservice

 

Residential

Kitchen

 

Food

Processing

 

Total

Company (1)

Nine Months Ended October 1, 2022

 

 

 

 

 

 

 

Net sales

$

1,776,994

 

 

$

832,054

 

 

$

392,100

 

 

$

3,001,148

 

Segment Operating Income

$

390,740

 

 

$

100,811

 

 

$

65,642

 

 

$

451,496

 

Operating Income % of net sales

 

22.0

%

 

 

12.1

%

 

 

16.7

%

 

 

15.0

%

 

 

 

 

 

 

 

 

Depreciation

 

17,577

 

 

 

9,271

 

 

 

4,182

 

 

 

31,608

 

Amortization

 

41,644

 

 

 

20,448

 

 

 

7,844

 

 

 

69,936

 

Restructuring expenses

 

2,934

 

 

 

2,892

 

 

 

2,405

 

 

 

8,231

 

Acquisition related adjustments

 

(1,256

)

 

 

15,062

 

 

 

303

 

 

 

15,159

 

Charitable support to Ukraine

 

 

 

 

 

 

 

 

 

 

798

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

42,641

 

Segment adjusted EBITDA

$

451,639

 

 

$

148,484

 

 

$

80,376

 

 

$

619,869

 

Adjusted EBITDA % of net sales

 

25.4

%

 

 

17.8

%

 

 

20.5

%

 

 

20.7

%

 

 

 

 

 

 

 

 

Nine Months Ended October 2, 2021

 

 

 

 

 

 

 

Net sales

$

1,501,413

 

 

$

527,791

 

 

$

355,172

 

 

$

2,384,376

 

Segment Operating Income

$

311,789

 

 

$

95,088

 

 

$

68,048

 

 

$

491,372

 

Operating Income % of net sales

 

20.8

%

 

 

18.0

%

 

 

19.2

%

 

 

20.6

%

 

 

 

 

 

 

 

 

Depreciation

 

17,579

 

 

 

9,120

 

 

 

4,005

 

 

 

31,180

 

Amortization

 

42,272

 

 

 

7,145

 

 

 

5,450

 

 

 

54,867

 

Restructuring expenses

 

1,386

 

 

 

834

 

 

 

376

 

 

 

2,596

 

Facility consolidation related expenses

 

993

 

 

 

 

 

 

 

 

 

993

 

Acquisition related adjustments

 

803

 

 

 

1,676

 

 

 

 

 

 

2,479

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

27,135

 

Gain on sale of plant

 

(678

)

 

 

(85

)

 

 

 

 

(763

)

Acquisition deal costs

 

 

 

 

 

 

 

 

 

 

(90,285

)

Segment adjusted EBITDA

$

374,144

 

 

$

113,778

 

 

$

77,879

 

 

$

519,574

 

Adjusted EBITDA % of net sales

 

24.9

%

 

 

21.6

%

 

 

21.9

%

 

 

21.8

%

 

 

 

 

 

 

 

 

(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $60.6 million and $46.2 million for the nine months ended October 1, 2022 and October 2, 2021, respectively.


THE MIDDLEBY CORPORATION

NON-GAAP INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

 

Three Months Ended

 

3rd Qtr, 2022

 

3rd Qtr, 2021

 

$

 

Diluted per

share

 

$

 

Diluted per

share

Net earnings

$

104,369

 

 

$

1.92

 

 

$

175,966

 

 

$

3.09

 

Amortization (1)

 

21,661

 

 

 

0.40

 

 

 

19,754

 

 

 

0.35

 

Restructuring expenses

 

2,327

 

 

 

0.04

 

 

 

791

 

 

 

0.01

 

Acquisition related costs

 

3,189

 

 

 

0.06

 

 

 

1,742

 

 

 

0.03

 

Net periodic pension benefit (other than service costs & curtailment)

 

(9,944

)

 

 

(0.18

)

 

 

(11,363

)

 

 

(0.20

)

Acquisition deal costs

 

 

 

 

 

 

 

(103,106

)

 

 

(1.81

)

Income tax effect of pre-tax adjustments

 

(4,291

)

 

 

(0.08

)

 

 

22,584

 

 

 

0.40

 

Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)

 

 

 

 

0.02

 

 

 

 

 

 

0.05

 

Adjusted net earnings

$

117,311

 

 

$

2.18

 

 

$

106,368

 

 

$

1.92

 

 

 

 

 

 

 

 

 

Diluted weighted average number of shares

 

54,384

 

 

 

 

 

56,939

 

 

 

Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)

 

(494

)

 

 

 

 

(1,679

)

 

 

Adjusted diluted weighted average number of shares

 

53,890

 

 

 

 

 

55,260

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

3rd Qtr, 2022

 

3rd Qtr, 2021

 

$

 

Diluted per

share

 

$

 

Diluted per

share

Net earnings

$

303,372

 

 

$

5.50

 

 

$

385,814

 

 

$

6.83

 

Amortization (1)

 

75,309

 

 

 

1.37

 

 

 

59,492

 

 

 

1.05

 

Restructuring expenses

 

8,231

 

 

 

0.15

 

 

 

2,596

 

 

 

0.05

 

Acquisition related costs

 

15,159

 

 

 

0.27

 

 

 

2,479

 

 

 

0.04

 

Acquisition deal costs

 

 

 

 

 

 

 

(90,285

)

 

 

(1.60

)

Facility consolidation related expenses

 

 

 

 

 

 

 

993

 

 

 

0.02

 

Net periodic pension benefit (other than service costs & curtailment)

 

(32,244

)

 

 

(0.58

)

 

 

(34,268

)

 

 

(0.61

)

Gain on sale of plant

 

 

 

 

 

 

 

(763

)

 

 

(0.01

)

Charitable support to Ukraine

 

798

 

 

 

0.01

 

 

 

 

 

 

 

Discrete tax adjustments

 

 

 

 

 

 

 

(18,900

)

 

 

(0.33

)

Income tax effect of pre-tax adjustments

 

(16,611

)

 

 

(0.30

)

 

 

14,640

 

 

 

0.26

 

Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)

 

 

 

 

0.11

 

 

 

 

 

 

0.13

 

Adjusted net earnings

$

354,014

 

 

$

6.53

 

 

$

321,798

 

 

$

5.83

 

 

 

 

 

 

 

 

 

Diluted weighted average number of shares

 

55,134

 

 

 

 

 

56,526

 

 

 

Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2)

 

(932

)

 

 

 

 

(1,284

)

 

 

Adjusted diluted weighted average number of shares

 

54,202

 

 

 

 

 

55,242

 

 

 

 

(1) Includes amortization of deferred financing costs and convertible notes issuance costs.

(2) Adjusted diluted weighted average number of shares was calculated based on excluding the dilutive effect of shares to be issued upon conversion of the notes to satisfy the amount in excess of the principal since the company's capped call offsets the dilutive impact of the shares underlying the convertible notes. The calculation of adjusted diluted earnings per share excludes the principal portion of the convertible notes as this will always be settled in cash.


 

Three Months Ended

 

Nine Months Ended

 

3rd Qtr, 2022

 

3rd Qtr, 2021

 

3rd Qtr, 2022

 

3rd Qtr, 2021

Net Cash Flows Provided By (Used In):

 

 

 

 

 

 

 

Operating activities

$

83,991

 

 

$

173,659

 

 

$

173,449

 

 

$

346,040

 

Investing activities

 

(150,609

)

 

 

(388,457

)

 

 

(257,868

)

 

 

(412,679

)

Financing activities

 

54,856

 

 

 

73,092

 

 

 

72,594

 

 

 

54,361

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

Cash flow from operating activities

$

83,991

 

 

$

173,659

 

 

$

173,449

 

 

$

346,040

 

Less: Capital expenditures, net of sale proceeds

 

(18,781

)

 

 

(10,307

)

 

 

(50,914

)

 

 

(23,670

)

Free cash flow

$

65,210

 

 

$

163,352

 

 

$

122,535

 

 

$

322,370

 

 

 

 

 

 

 

 

 

NON-GAAP FINANCIAL MEASURES

The company supplements its consolidated financial statements presented on a GAAP basis with this non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies.

The company believes that organic net sales growth, non-GAAP adjusted segment EBITDA, adjusted net earnings and adjusted diluted per share measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating performance for business planning purposes. The company also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in its opinion, do not reflect its core operating performance including, for example, intangibles amortization expense, impairment charges, restructuring expenses, and other charges which management considers to be outside core operating results.

The company believes that free cash flow is an important measure of operating performance because it provides management and investors a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, repaying debt and repurchasing our common stock.

The company believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Middleby uses internally for purposes of assessing its core operating performance.

Contacts

Darcy Bretz, Investor and Public Relations, (847) 429-7756
Bryan Mittelman, Chief Financial Officer, (847) 429-7715