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): August 3, 2023

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 August 3, 2023, The Middleby Corporation (the “Company”) issued a press release announcing its financial results for the second quarter ended July 1, 2023. 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 August 3, 2023.
                                     

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:  August 3, 2023 
 
 
 
 
By:
 
/s/ Bryan E. Mittelman
 
 
 
Bryan E. Mittelman
 
 
 
Chief Financial Officer


Exhibit Index

Exhibit No.
  Description
     
Exhibit 99.1   The Middleby Corporation press release dated August 3, 2023.
                                      
Exhibit 99.1

The Middleby Corporation Reports Record Second Quarter Results

  • Revenue of $1,040 million, a 3% increase year over year
  • Diluted Earnings per share of $2.16 and adjusted net earnings per share of $2.47, an increase of 11% year over year
  • Adjusted EBITDA of $229 million, a 9% increase year over year
  • Profitability grew to an organic adjusted EBITDA margin of 22.0% compared to 20.7% in the prior year
  • Completed the acquisitions of Blue Sparq and Filtration Automation

ELGIN, Ill.--(BUSINESS WIRE)--August 3, 2023--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 second quarter of 2023.

“We delivered solid results with top line growth and margin expansion at our Commercial Foodservice and Food Processing segments. We continue to execute toward our long-term growth and profitability targets at our Residential business, while managing the near-term headwinds from challenging housing market conditions. Inventory de-stocking affected the quarter at both our Commercial and Residential businesses and is expected to continue into the second half, with a lessening impact in the later part of the year. We continue to see strong underlying demand and a robust pipeline of new opportunities with our Commercial Foodservice and Food Processing customers adopting our latest innovations. Early signs of improvement in certain Residential categories are emerging as market conditions begin to stabilize and we are well-positioned for growth with the many exciting new products across our brand portfolio as the market returns,” said Tim FitzGerald, CEO of The Middleby Corporation.

2023 Second Quarter Financial Results

  • Net sales increased 2.6% in the second quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales decreased 2.3% in the second quarter over the comparative prior year period.
  • Organic net sales (a non-GAAP measure) increases were reported for the Commercial Foodservice and Food Processing segments in the second quarter of 2023. A reconciliation of reported net sales by segment is as follows:
 

 

Commercial
Foodservice

 

Residential
Kitchen

 

Food
Processing

 

Total
Company

 

Reported Net Sales Growth

6.5

%

 

(26.6

)%

 

48.2

%

 

2.6

%

 

Acquisitions

3.8

%

 

%

 

21.0

%

 

4.9

%

 

Foreign Exchange Rates

(0.2

)%

 

0.2

%

 

0.5

%

 

%

 

Organic Net Sales Growth (1) (2)

2.9

%

 

(26.8

)%

 

26.7

%

 

(2.3

)%

 

(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

  • Adjusted EBITDA (a non-GAAP measure) was $228.7 million in the second quarter compared to $210.2 million in the prior year.

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

27.7

%

 

13.9

%

 

21.9

%

 

22.0

%

 

Acquisitions

(0.3

)%

 

%

 

0.2

%

 

%

 

Foreign Exchange Rates

%

 

0.1

%

 

%

 

%

 

Organic Adjusted EBITDA (1) (2)

28.1

%

 

13.8

%

 

21.7

%

 

22.0

%

 

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

 

(2) Totals may be impacted by rounding

  • Foreign exchange losses were approximately $1.3 million in the second quarter, which negatively impacted adjusted earnings per share by $0.02.
  • Operating cash flows for the first half of the year amounted to $154.0 million in comparison to $89.5 million in the prior year period. Capital Expenditures for the first six months amount to $48.3 million supporting critical strategic investments driving operating efficiencies, new product launches and growth initiatives.
  • Net debt, defined as debt excluding the unamortized discount associated with the Convertible Notes less cash, at the end of the 2023 fiscal second quarter and at the end of fiscal 2022 amounted to $2.6 billion. Our borrowing availability at the end of the second quarter was approximately $2.3 billion.
  • The total leverage ratio per our credit agreements was 2.9x. The trailing twelve month bank agreement pro-forma EBITDA was $911.3 million.

"We are excited to have recently completed the acquisitions of Blue Sparq, Filtration Automation and Trade-Wind, further extending complementary product offerings and innovations across our three foodservice segments,” said Mr. FitzGerald. “Blue Sparq significantly enhances our software development capabilities and provides us with controls manufacturing as we accelerate our digital product strategy. We are excited with the many customer opportunities across our brand portfolio that Blue Sparq has immediately engaged, accelerating our pace of innovation and launch to market. The Filtration Automation patented oil filtration systems provide for significant reduction in operating costs and improved food quality. This oil filtration system complements our existing frying equipment offering and enables us to bring to market an industry leading integrated customer solution.” Mr. FitzGerald continued, “We are pleased to have also completed the acquisition of Trade-Wind, a leader in the design of custom ventilation for the residential market. We have been partnered with Trade-Wind in developing complementary customer offerings with many of our cooking brands over the past year. This addition allows us to seamlessly work together as we launch exciting new designs into the marketplace,” concluded Mr. FitzGerald.

Conference Call

The company has scheduled a conference call to discuss the second quarter results at 11 a.m. Eastern/10 a.m. Central Time on August 3rd. 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, state-of-the-art Middleby Innovation Kitchens and Residential Showrooms showcase 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

 

Six Months Ended

 


2nd Qtr,
2023

 

2nd Qtr,
2022

 

2nd Qtr,
2023

 

2nd Qtr,
2022

Net sales


$

1,039,982

 

 

$

1,013,601

 

 

$

2,047,378

 

 

$

2,008,277

 

Cost of sales


 

646,746

 

 

 

652,859

 

 

 

1,275,407

 

 

 

1,317,025

 

 


 

 

 

 

 

 

 

Gross profit


 

393,236

 

 

 

360,742

 

 

 

771,971

 

 

 

691,252

 

 


 

 

 

 

 

 

 

Selling, general and administrative expenses


 

203,521

 

 

 

189,486

 

 

 

418,928

 

 

 

395,557

 

Restructuring expenses


 

4,944

 

 

 

4,029

 

 

 

7,250

 

 

 

5,904

 

Income from operations


 

184,771

 

 

 

167,227

 

 

 

345,793

 

 

 

289,791

 

 


 

 

 

 

 

 

 

Interest expense and deferred financing amortization, net


 

31,529

 

 

 

20,842

 

 

 

60,991

 

 

 

38,496

 

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


 

(2,575

)

 

 

(10,784

)

 

 

(4,826

)

 

 

(22,300

)

Other (income) expense, net


 

(326

)

 

 

5,888

 

 

 

1,570

 

 

 

9,949

 

 


 

 

 

 

 

 

 

Earnings before income taxes


 

156,143

 

 

 

151,281

 

 

 

288,058

 

 

 

263,646

 

 


 

 

 

 

 

 

 

Provision for income taxes


 

39,293

 

 

 

38,033

 

 

 

72,119

 

 

 

64,643

 

 


 

 

 

 

 

 

 

Net earnings


$

116,850

 

 

$

113,248

 

 

$

215,939

 

 

$

199,003

 

 


 

 

 

 

 

 

 

Net earnings per share:


 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

Basic


$

2.18

 

 

$

2.10

 

 

$

4.03

 

 

$

3.66

 

 


 

 

 

 

 

 

 

Diluted


$

2.16

 

 

$

2.07

 

 

$

3.98

 

 

$

3.59

 

 


 

 

 

 

 

 

 

Weighted average number of shares


 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

Basic


 

53,527

 

 

 

54,033

 

 

 

53,560

 

 

 

54,351

 

 


 

 

 

 

 

 

 

Diluted


 

54,042

 

 

 

54,654

 

 

 

54,209

 

 

 

55,509

 


THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in 000’s)

(Unaudited)




 

 

Jul 1, 2023

 

Dec 31, 2022

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

$

157,279

 

$

162,001

Accounts receivable, net

 

643,405

 

 

631,134

Inventories, net

 

1,082,523

 

 

1,077,729

Prepaid expenses and other

 

132,030

 

 

125,640

Prepaid taxes

 

20,967

 

 

9,492

Total current assets

 

2,036,204

 

 

2,005,996

 

 

 

 

Property, plant and equipment, net

 

483,064

 

 

443,528

Goodwill

 

2,451,866

 

 

2,411,834

Other intangibles, net

 

1,790,771

 

 

1,794,232

Long-term deferred tax assets

 

8,280

 

 

6,738

Other assets

 

214,573

 

 

212,538

 

 

 

 

Total assets

$

6,984,758

 

$

6,874,866

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current maturities of long-term debt

$

44,250

 

$

45,583

Accounts payable

 

232,740

 

 

271,374

Accrued expenses

 

601,415

 

 

671,327

Total current liabilities

 

878,405

 

 

988,284

 

 

 

 

Long-term debt

 

2,687,544

 

 

2,676,741

Long-term deferred tax liability

 

216,220

 

 

220,204

Accrued pension benefits

 

8,482

 

 

14,948

Other non-current liabilities

 

194,581

 

 

176,942

 

 

 

 

Stockholders' equity

 

2,999,526

 

 

2,797,747

 

 

 

 

Total liabilities and stockholders' equity

$

6,984,758

 

$

6,874,866


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 July 1, 2023

 

 

 

 

 

 

 

Net sales

$

645,663

 

 

$

205,571

 

 

$

188,748

 

 

$

1,039,982

 

Segment Operating Income

$

156,969

 

 

$

19,096

 

 

$

39,324

 

 

$

184,771

 

Operating Income % of net sales

 

24.3

%

 

 

9.3

%

 

 

20.8

%

 

 

17.8

%

 

 

 

 

 

 

 

 

Depreciation

 

7,011

 

 

 

3,319

 

 

 

1,889

 

 

 

12,523

 

Amortization

 

14,138

 

 

 

2,250

 

 

 

132

 

 

 

16,520

 

Restructuring expenses

 

1,129

 

 

 

3,857

 

 

 

(42

)

 

 

4,944

 

Acquisition related adjustments

 

(327

)

 

 

 

 

 

51

 

 

 

(276

)

Charitable support to Ukraine

 

 

 

 

 

 

 

 

 

 

309

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

9,898

 

Segment adjusted EBITDA (2)

$

178,920

 

 

$

28,522

 

 

$

41,354

 

 

$

228,689

 

Adjusted EBITDA % of net sales

 

27.7

%

 

 

13.9

%

 

 

21.9

%

 

 

22.0

%

 

 

 

 

 

 

 

 

Three Months Ended July 2, 2022

 

 

 

 

 

 

 

Net sales

$

606,274

 

 

$

280,009

 

 

$

127,318

 

 

$

1,013,601

 

Segment Operating Income

$

137,584

 

 

$

46,077

 

 

$

18,308

 

 

$

167,227

 

Operating Income % of net sales

 

22.7

%

 

 

16.5

%

 

 

14.4

%

 

 

16.5

%

 

 

 

 

 

 

 

 

Depreciation

 

5,817

 

 

 

3,425

 

 

 

1,332

 

 

 

10,757

 

Amortization

 

13,553

 

 

 

1,030

 

 

 

1,905

 

 

 

16,488

 

Restructuring expenses

 

820

 

 

 

611

 

 

 

2,598

 

 

 

4,029

 

Acquisition related adjustments

 

(3,112

)

 

 

832

 

 

 

 

 

 

(2,280

)

Charitable support to Ukraine

 

 

 

 

 

 

 

 

 

 

798

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

13,157

 

Segment adjusted EBITDA

$

154,662

 

 

$

51,975

 

 

$

24,143

 

 

$

210,176

 

Adjusted EBITDA % of net sales

 

25.5

%

 

 

18.6

%

 

 

19.0

%

 

 

20.7

%

 

 

 

 

 

 

 

 

(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $20.1 million and $20.6 million for the three months ended July 1, 2023 and July 2, 2022, respectively.

(2) Foreign exchange rates negatively impacted Segment Adjusted EBITDA by approximately $0.1 million for the three months ended July 1, 2023.

 


THE MIDDLEBY CORPORATION

NON-GAAP SEGMENT INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

 

 

 

 

 

 

 

 

 

Commercial
Foodservice

 

Residential
Kitchen

 

Food
Processing

 

Total
Company (1)

Six Months Ended July 1, 2023

 

 

 

 

 

 

 

Net sales

$

1,259,598

 

 

$

425,529

 

 

$

362,251

 

 

$

2,047,378

 

Segment Operating Income

$

293,531

 

 

$

40,282

 

 

$

74,011

 

 

$

345,793

 

Operating Income % of net sales

 

23.3

%

 

 

9.5

%

 

 

20.4

%

 

 

16.9

%

 

 

 

 

 

 

 

 

Depreciation

 

13,177

 

 

 

6,766

 

 

 

3,986

 

 

 

24,500

 

Amortization

 

28,946

 

 

 

4,488

 

 

 

4,269

 

 

 

37,703

 

Restructuring expenses

 

2,022

 

 

 

5,311

 

 

 

(83

)

 

 

7,250

 

Acquisition related adjustments

 

797

 

 

 

 

 

 

51

 

 

 

848

 

Charitable support to Ukraine

 

 

 

 

 

 

 

 

 

 

489

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

22,130

 

Segment adjusted EBITDA (2)

$

338,473

 

 

$

56,847

 

 

$

82,234

 

 

$

438,713

 

Adjusted EBITDA % of net sales

 

26.9

%

 

 

13.4

%

 

 

22.7

%

 

 

21.4

%

 

 

 

 

 

 

 

 

Six Months Ended July 2, 2022

 

 

 

 

 

 

 

Net sales

$

1,146,292

 

 

$

611,089

 

 

$

250,896

 

 

$

2,008,277

 

Segment Operating Income

$

247,219

 

 

$

71,023

 

 

$

38,503

 

 

$

289,791

 

Operating Income % of net sales

 

21.6

%

 

 

11.6

%

 

 

15.3

%

 

 

14.4

%

 

 

 

 

 

 

 

 

Depreciation

 

11,656

 

 

 

7,410

 

 

 

2,690

 

 

 

22,129

 

Amortization

 

27,044

 

 

 

19,159

 

 

 

3,850

 

 

 

50,053

 

Restructuring expenses

 

2,271

 

 

 

998

 

 

 

2,635

 

 

 

5,904

 

Acquisition related adjustments

 

(3,092

)

 

 

15,062

 

 

 

 

 

 

11,970

 

Charitable support to Ukraine

 

 

 

 

 

 

 

 

 

 

798

 

Stock compensation

 

 

 

 

 

 

 

 

 

 

26,880

 

Segment adjusted EBITDA

$

285,098

 

 

$

113,652

 

 

$

47,678

 

 

$

407,525

 

Adjusted EBITDA % of net sales

 

24.9

%

 

 

18.6

%

 

 

19.0

%

 

 

20.3

%

 

 

 

 

 

 

 

 

(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $38.8 million and $38.9 million for the six months ended July 1, 2023 and July 2, 2022, respectively.

(2) Foreign exchange rates negatively impacted Segment Adjusted EBITDA by approximately $3.0 million for the six months ended July 1, 2023.


THE MIDDLEBY CORPORATION

NON-GAAP INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)


 

 

Three Months Ended

 

2nd Qtr, 2023

 

2nd Qtr, 2022

 

$

 

Diluted per
share

 

$

 

Diluted per
share

Net earnings

$

116,850

 

 

$

2.16

 

 

$

113,248

 

 

$

2.07

 

Amortization (1)

 

18,307

 

 

 

0.34

 

 

 

18,279

 

 

 

0.33

 

Restructuring expenses

 

4,944

 

 

 

0.09

 

 

 

4,029

 

 

 

0.07

 

Acquisition related adjustments

 

(276

)

 

 

(0.01

)

 

 

(2,280

)

 

 

(0.04

)

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

 

(2,575

)

 

 

(0.05

)

 

 

(10,784

)

 

 

(0.20

)

Charitable support to Ukraine

 

309

 

 

 

0.01

 

 

 

798

 

 

 

0.01

 

Income tax effect of pre-tax adjustments

 

(5,219

)

 

 

(0.10

)

 

 

(2,521

)

 

 

(0.05

)

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

 

 

 

 

0.03

 

 

 

 

 

 

0.04

 

Adjusted net earnings

$

132,340

 

 

$

2.47

 

 

$

120,769

 

 

$

2.23

 

 

 

 

 

 

 

 

 

Diluted weighted average number of shares

 

54,042

 

 

 

 

 

54,654

 

 

 

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

 

(510

)

 

 

 

 

(613

)

 

 

Adjusted diluted weighted average number of shares

 

53,532

 

 

 

 

 

54,041

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

2nd Qtr, 2023

 

2nd Qtr, 2022

 

$

 

Diluted
per share

 

$

 

Diluted
per share

Net earnings

$

215,939

 

 

$

3.98

 

 

$

199,003

 

 

$

3.59

 

Amortization (1)

 

41,277

 

 

 

0.76

 

 

 

53,649

 

 

 

0.97

 

Restructuring expenses

 

7,250

 

 

 

0.13

 

 

 

5,904

 

 

 

0.11

 

Acquisition related adjustments

 

848

 

 

 

0.02

 

 

 

11,970

 

 

 

0.22

 

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

 

(4,826

)

 

 

(0.09

)

 

 

(22,300

)

 

 

(0.40

)

Charitable support to Ukraine

 

489

 

 

 

0.01

 

 

 

798

 

 

 

0.01

 

Income tax effect of pre-tax adjustments

 

(11,260

)

 

 

(0.21

)

 

 

(12,255

)

 

 

(0.22

)

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

 

 

 

 

0.06

 

 

 

 

 

 

0.08

 

Adjusted net earnings

$

249,717

 

 

$

4.66

 

 

$

236,769

 

 

$

4.36

 

 

 

 

 

 

 

 

 

Diluted weighted average number of shares

 

54,209

 

 

 

 

 

55,509

 

 

 

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

 

(645

)

 

 

 

 

(1,151

)

 

 

Adjusted diluted weighted average number of shares

 

53,564

 

 

 

 

 

54,358

 

 

 

 

(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 

 

Six Months Ended

 

2nd Qtr, 2023

 

2nd Qtr, 2022

 

2nd Qtr, 2023

 

2nd Qtr, 2022

Net Cash Flows Provided By (Used In):

 

 

 

 

 

 

 

Operating activities

$

61,948

 

 

$

104,802

 

 

$

153,950

 

 

$

89,458

 

Investing activities

 

(48,816

)

 

 

(83,133

)

 

 

(85,266

)

 

 

(107,259

)

Financing activities

 

(11,858

)

 

 

9,017

 

 

 

(75,235

)

 

 

17,738

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

Cash flow from operating activities

$

61,948

 

 

$

104,802

 

 

$

153,950

 

 

$

89,458

 

Less: Capital expenditures

 

(22,830

)

 

 

(17,636

)

 

 

(48,315

)

 

 

(32,133

)

Free cash flow

$

39,118

 

 

$

87,166

 

 

$

105,635

 

 

$

57,325

 

 

 

 

 

 

 

 

 

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