8-K
MIDDLEBY Corp false 0000769520 0000769520 2024-02-20 2024-02-20

 

 

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): February 20, 2024

 

 

THE MIDDLEBY CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-9973   36-3352497

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

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   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 February 20, 2024, The Middleby Corporation (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 30, 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 February 20, 2024.


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
    By:  

/s/ Bryan E. Mittelman

Dated: February 20, 2024       Bryan E. Mittelman
      Chief Financial Officer
EX-99.1

Exhibit 99.1

The Middleby Corporation Reports Fourth Quarter Results

 

   

Record Q4 Adjusted EBITDA of $235 million, a 1% increase year over year

 

   

Record YTD Adjusted EBITDA of $900 million, a 6% increase year over year

 

   

Record operating cash flows of $256 million for the quarter and $629 million for the year

 

   

Profitability grew to an organic adjusted EBITDA margin of 23.6% compared to 22.6% in the prior year

 

   

Diluted Earnings per share of $1.42 and adjusted net earnings per share of $2.65 for the fourth quarter, an increase of 3% year over year

 

   

Net leverage reduced to less than 2.5x

Elgin, Ill, February 20, 2024 - 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 fourth quarter of 2023.

“We are proud of the accomplishments our team achieved in 2023, concluding with a strong fourth quarter finish in a challenging year. In 2023, we posted another year of record EBITDA, while also making great strides toward our long-term profitability goals. We generated record cash flows for the year, while making meaningful strategic investments in our operations, sales and marketing capabilities, and our industry leading product innovations. We enter 2024 with a strong financial position and each of our three industry-leading foodservice businesses are poised for long-term profitable growth” said Tim FitzGerald, CEO of The Middleby Corporation.

2023 Fourth Quarter Financial Results

 

   

Net sales decreased 2.2% in the fourth quarter over the comparative prior year period. Excluding the impacts of acquisitions and foreign exchange rates, sales decreased 4.7% in the fourth quarter over the comparative prior year period.

 

   

Organic net sales (a non-GAAP measure) decreases were reported for all segments in the fourth 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

     (0.2 )%      (12.5 )%      2.7  %      (2.2 )% 

Acquisitions

     1.4  %      0.3  %      2.3  %      1.3  % 

Foreign Exchange Rates

         0.8  %          1.8  %          1.7  %          1.2  % 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic Net Sales Growth (1) (2)

     (2.3 )%      (14.6 )%      (1.3 )%      (4.7 )% 

(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

    

    

 

   

Operating income during the fourth quarter included $78.1 million of impairment charges associated with tradenames primarily within the Residential Kitchen Equipment Group.


   

Adjusted EBITDA (a non-GAAP measure) was $235.2 million in the fourth quarter compared to $233.5 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

     28.6  %      10.4  %      27.6  %      23.3  % 

Acquisitions

     (0.4 )%      0.2  %      (0.1 )%      (0.2 )% 

Foreign Exchange Rates

         —  %          0.2  %          0.1  %          —  % 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic Adjusted EBITDA (1) (2)

     29.1  %      10.1  %      27.6  %      23.6  % 

(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 $4.0 million in the fourth quarter, which negatively impacted adjusted earnings per share by $0.06.

 

   

Operating cash flows during the fourth quarter amounted to $255.7 million in comparison to $159.1 million in the prior year period. Operating cash flows for the twelve months period ended December 30, 2023 amounted to $628.8 million in comparison to $332.6 million in the prior year period. The total leverage ratio per our credit agreements was less than 2.5x. The trailing twelve month bank agreement pro-forma EBITDA was $921.8 million.

 

   

Net debt, defined as debt excluding the unamortized discount associated with the Convertible Notes less cash, at the end of the 2023 fiscal fourth quarter amounted to $2.2 billion as compared to $2.6 billion at the end of fiscal 2022. Our borrowing availability at the end of the fourth quarter was approximately $2.8 billion.

“We continue to further strengthen our three industry-leading foodservice platforms through organic growth initiatives and strategic acquisitions. We are excited to have most recently completed the acquisition of GBT GmbH Bakery Technology (“GBT”). Based in Lūnen Germany, GBT has a broad portfolio of highly-engineered industrial bakery product offerings that further extends our existing portfolio of solutions, providing for synergistic growth opportunities within our Food Processing Group.”

“We are also very excited for Middleby Residential to be participating at the upcoming Kitchen & Bath Industry Show on February 27-29 in Las Vegas. Our entire portfolio of leading indoor and outdoor brands will be on display. We will be launching a record number of new products featuring new colors and designs, the latest in cooking technology, and the next generation of connected equipment,” concluded Mr. FitzGerald.

Conference Call

The company has scheduled a conference call to discuss the fourth quarter results at 11 a.m. Eastern/10 a.m. Central Time on February 20th. 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 for international access, 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 demonstrate 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.

Contact: John Joyner, VP of Investor Relations, jjoyner@middleby.com


THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

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

(Unaudited)

 

     Three Months Ended   Twelve Months Ended
     4th Qtr,
2023
  4th Qtr,
2022
  4th Qtr,
2023
  4th Qtr,
2022

Net sales

    $ 1,008,576      $ 1,031,705      $ 4,036,605      $ 4,032,853  

Cost of sales

     621,807       641,635       2,502,543       2,586,299  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Gross profit

     386,769       390,070       1,534,062       1,446,554  

Selling, general and administrative expenses

     191,585       200,477       806,946       797,234  

Restructuring expenses

     2,436       1,485       14,134       9,716  

Impairments

     78,114             78,114        
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income from operations

     114,634       188,108       634,868       639,604  

Interest expense and deferred financing amortization, net

     28,277       26,414       120,348       88,977  

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

     (2,142     (10,437     (9,071     (42,681

Other expense, net

     1,571       10,415       4,213       28,893  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Earnings before income taxes

     86,928       161,716       519,378       564,415  

Provision for income taxes

     10,635       28,519       118,496       127,846  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net earnings

    $ 76,293      $ 133,197      $ 400,882      $ 436,569  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share:

        

 Basic

    $ 1.42      $ 2.48      $ 7.48      $ 8.07  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Diluted

    $ 1.42      $ 2.45      $ 7.41      $ 7.95  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares

        

 Basic

     53,601       53,809       53,577       54,095  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Diluted

     53,768       54,388       54,086       54,947  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in 000’s)

(Unaudited)

 

     Dec 30, 2023    Dec 31, 2022

ASSETS

     

Cash and cash equivalents

    $ 247,496       $ 162,001  

Accounts receivable, net

     644,576        631,134  

Inventories, net

     935,867        1,077,729  

Prepaid expenses and other

     112,690        125,640  

Prepaid taxes

     25,230        9,492  
  

 

 

 

  

 

 

 

 Total current assets

       1,965,859          2,005,996  

Property, plant and equipment, net

     510,898        443,528  

Goodwill

     2,486,310        2,411,834  

Other intangibles, net

     1,693,076        1,794,232  

Long-term deferred tax assets

     7,945        6,738  

Pension benefits assets

     38,535         

Other assets

     204,069        212,538  
  

 

 

 

  

 

 

 

 Total assets

    $ 6,906,692       $ 6,874,866  
  

 

 

 

  

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current maturities of long-term debt

    $ 44,822       $ 45,583  

Accounts payable

     227,080        271,374  

Accrued expenses

     579,192        671,327  
  

 

 

 

  

 

 

 

 Total current liabilities

     851,094        988,284  

Long-term debt

     2,380,373        2,676,741  

Long-term deferred tax liability

     216,143        220,204  

Accrued pension benefits

     12,128        14,948  

Other non-current liabilities

     197,065        176,942  

Stockholders’ equity

     3,249,889        2,797,747  
  

 

 

 

  

 

 

 

 Total liabilities and stockholders’ equity

    $ 6,906,692       $ 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 December 30, 2023

        

 Net sales

    $ 627,864      $ 189,012      $ 191,700      $ 1,008,576  

 Segment Operating Income

    $ 164,111      $ (63,647    $ 46,986      $ 114,634  

 Operating Income % of net sales

     26.1      (33.7 ) %      24.5      11.4 

 Depreciation

     7,189       3,567       2,039       13,328  

 Amortization

     13,823       2,284       2,325       18,432  

 Restructuring expenses

     515       1,218       703       2,436  

 Acquisition related adjustments

     (8,345     31       812       (7,502

 Charitable support to Ukraine

                       8  

 Stock compensation

                       15,742  

 Impairments

     1,986       76,128             78,114  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment adjusted EBITDA (2)

    $ 179,279      $ 19,581      $ 52,865      $ 235,192  

 Adjusted EBITDA % of net sales

     28.6      10.4      27.6      23.3 

 Three Months Ended December 31, 2022

        

 Net sales

    $ 628,914      $ 216,068      $ 186,723      $ 1,031,705  

 Segment Operating Income

    $ 158,318      $ 27,137      $ 41,295      $ 188,108  

 Operating Income % of net sales

     25.2      12.6      22.1      18.2 

 Depreciation

     6,821       4,325       1,764       13,011  

 Amortization

     13,704       (3,072     5,714       16,346  

 Restructuring expenses

     (515     2,215       (215     1,485  

 Acquisition related adjustments

     (1,814           112       (1,307

 Charitable support to Ukraine

                       169  

 Stock compensation

                       15,727  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment adjusted EBITDA

    $ 176,514      $ 30,605     $ 48,670      $ 233,539  

 Adjusted EBITDA % of net sales

     28.1      14.2      26.1      22.6 

(1)  Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $16.5 million and $22.3 million for the three months ended December 30, 2023 and December 31, 2022, respectively.

(2)  Foreign exchange rates favorably impacted Segment Adjusted EBITDA by approximately $2.6 million for the three months ended December 30, 2023.


THE MIDDLEBY CORPORATION

NON-GAAP SEGMENT INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

 

     Commercial
 Foodservice 
   Residential 
Kitchen
  Food
 Processing 
  Total
Company (1)
  

 

 

 

 

 

 

 

 

 

 

 

 Twelve Months Ended December 30, 2023

        

 Net sales

    $ 2,521,471      $ 794,516      $ 720,618      $ 4,036,605  

 Segment Operating Income

    $ 616,224      $ (12,450    $ 158,469      $ 634,868  

 Operating Income % of net sales

     24.4      (1.6 ) %      22.0      15.7 

 Depreciation

     27,323       13,637       7,949       50,416  

 Amortization

     56,728       9,052       9,271       75,051  

 Restructuring expenses

     3,173       9,402       1,559       14,134  

 Acquisition related adjustments

     (6,014     76       2,087       (3,851

 Charitable support to Ukraine

                       615  

 Stock compensation

                       51,047  

 Impairments

     1,986       76,128             78,114  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment adjusted EBITDA (2)

    $ 699,420      $ 95,845      $ 179,335      $ 900,394  

 Adjusted EBITDA % of net sales

     27.7      12.1      24.9      22.3 

 Twelve Months Ended December 31, 2022

        

 Net sales

    $ 2,394,762      $ 1,048,122      $ 589,969      $ 4,032,853  

 Segment Operating Income

    $ 548,536      $ 127,948      $ 107,459      $ 639,604  

 Operating Income % of net sales

     22.9      12.2      18.2      15.9 

 Depreciation

     24,299       13,596       6,045       44,619  

 Amortization

     54,872       17,376       14,034       86,282  

 Restructuring expenses

     2,419       5,107       2,190       9,716  

 Acquisition related adjustments

     (3,070     15,062       415       13,852  

 Charitable support to Ukraine

                       967  

 Stock compensation

                       58,368  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment adjusted EBITDA

    $ 627,056      $ 179,089      $ 130,143      $ 853,408  

 Adjusted EBITDA % of net sales

     26.2      17.1      22.1      21.2 

(1)  Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $74.2 million and $82.9 million for the twelve months ended December 30, 2023 and December 31, 2022, respectively.

(2)  Foreign exchange rates favorably impacted Segment Adjusted EBITDA by approximately $2.2 million for the twelve months ended December 30, 2023.


THE MIDDLEBY CORPORATION

NON-GAAP INFORMATION (UNAUDITED)

(Amounts in 000’s, Except Percentages)

     Three Months Ended
     4th Qtr, 2023   4th Qtr, 2022
        $       Diluted per 
share
  $    Diluted per 
share

Net earnings

   $ 76,293     $ 1.42     $ 133,197     $ 2.45  

Amortization (1)

     20,218       0.38       18,132       0.33  

Restructuring expenses

     2,436       0.05       1,485       0.03  

Acquisition related adjustments

     (7,502     (0.14     (1,307     (0.02

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

     (2,142     (0.04     (10,437     (0.19

Charitable support to Ukraine

     8             169        

Impairments

     78,114       1.45              

Income tax effect of pre-tax adjustments

     (24,665     (0.46     (2,075     (0.04

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

           (0.01           0.01  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

   $ 142,760     $ 2.65     $ 139,164     $ 2.57  

Diluted weighted average number of shares

     53,768         54,388    

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

     73         (320  
  

 

 

 

   

 

 

 

 
Adjusted diluted weighted average number of shares      53,841         54,068    
     Twelve Months Ended
     4th Qtr, 2023   4th Qtr, 2022
     $   Diluted per
share
  $   Diluted per
share

Net earnings

    $    400,882      $     7.41      $     436,569      $     7.95  

Amortization (1)

     82,188       1.52       93,441       1.70  

Restructuring expenses

     14,134       0.26       9,716       0.18  

Acquisition related adjustments

     (3,851     (0.07     13,852       0.25  

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

     (9,071     (0.17     (42,681     (0.78

Charitable support to Ukraine

     615       0.01       967       0.02  

Impairments

     78,114       1.44              

Income tax effect of pre-tax adjustments

     (42,414     (0.78     (18,824     (0.34

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

           0.08             0.12  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings

    $ 520,597      $ 9.70      $ 493,040      $ 9.10  

Diluted weighted average number of shares

     54,086         54,947    

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

     (442       (779  
  

 

 

 

   

 

 

 

 

Adjusted diluted weighted average number of shares

     53,644         54,168    

(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        Twelve Months Ended
      4th Qtr, 2023    

 4th Qtr, 2022 

        4th Qtr, 2023      4th Qtr, 2022 

Net Cash Flows Provided By (Used In):

             

Operating activities

    $  255,687       $  159,103        $  628,790      $  332,552  

Investing activities

     (16,518      (90,451        (155,742      (348,319

Financing activities

     (165,171      (64,963        (390,939      7,631  

Free Cash Flow

             

Cash flow from operating activities

    $ 255,687       $ 159,103        $ 628,790      $ 332,552  

Less: Capital expenditures

     (15,534      (16,375        (85,179      (67,289
  

 

 

 

  

 

 

 

    

 

 

 

  

 

 

 

Free cash flow

    $ 240,153       $ 142,728        $ 543,611      $ 265,263  

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.