The Middleby Corporation Reports Third Quarter Results
2013 Third Quarter Financial Highlights
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Net sales increased 39.7% in the third quarter of 2013 as compared to
the prior year third quarter. Sales from acquisitions amounted to
$71.8 million or 27.9% during the quarter. Excluding the impact of acquisitions, sales increased 11.8% during the third quarter. -
Net sales at the company’s
Commercial Foodservice Equipment Group increased 16.2% in the third quarter of 2013 as compared to the prior year third quarter. During fiscal 2012, the company completed the acquisition of Nieco. Excluding the impact of this acquisition, net sales increased by 11.7%. -
Net sales at the company’s
Food Processing Equipment Group increased 20.5% in the third quarter of 2013 as compared to the prior year third quarter. During fiscal 2012, the company completed the acquisition of Stewart Systems. Excluding the impact of this acquisition, net sales increased by 12.2% in the third quarter. -
Net sales at the company’s
Residential Kitchen Equipment Group , which was established onDecember 31, 2012 in conjunction with the acquisition of Viking, were$58.0 million . -
Gross profit increased to
$141.4 million in the third quarter of 2013 from$100.4 million in the prior year third quarter, reflecting impact of higher sales volumes. The gross margin rate increased from 39.0% in the third quarter of 2012 to 39.3% in the third quarter of 2013. Increased margins at the commercial foodservice segment offset lower margins of newly acquired food processing and Viking businesses. -
Operating income increased 42.4% to
$67.5 million in the third quarter of 2013 from$47.4 million in the prior year third quarter. -
Non-cash expenses included in operating income increased to
$11.9 million in the third quarter of 2013 as compared to$9.7 million in the prior year third quarter. Non-cash expenses during the 2013 third quarter were comprised of$4.2 million of depreciation,$4.7 million of intangible amortization and$3.0 million of non-cash share based compensation. -
Total debt at the end of the 2013 third quarter was reduced to
$537.4 million as compared to$618.0 million at the end of the second quarter, as cash generated from operations were utilized to repay debt. The company’s debt is financed primarily under its$1 billion senior revolving credit facility, which expires inAugust 2017 .
Mr. Bassoul continued, “We also continued to realize revenue growth at
our
Mr. Bassoul further commented, “At Viking, we continued to make progress on our integration initiatives. This is reflected in our continued improvement in EBITDA margins, which increased to over 18% in the third quarter and remain on track with our established profitability targets.”
“At Viking, we made significant progress with initiatives related to changes in distribution and new product development. In conjunction with these efforts, we continued to integrate several former U.S. distributors into the Viking organization. Now over 50% of the domestic revenues are managed through Viking owned distribution. These distribution changes will allow us to control and enhance critical aspects of the sales, marketing and customer support processes. We expect to complete our reorganization of the domestic distribution channels in the upcoming quarters,” said Mr. Bassoul. “We are also very excited about the significant pipeline of new Viking products and product enhancements scheduled for introduction in the fourth quarter. This includes a complete new lineup of ranges, cooktops, built-in refrigeration and ventilation.”
Mr. Bassoul concluded, “We were also very pleased to recently announce
the acquisition of Celfrost to add to our portfolio of Commercial
Foodservice Equipment brands. With this acquisition,
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 |
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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 |
Nine Months Ended |
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3rd Qtr, 2013 | 3rd Qtr, 2012 | 3rd Qtr, 2013 | 3rd Qtr, 2012 | ||||||||
| Net sales | $ | 360,013 | $ | 257,699 | $ | 1,051,265 | $ | 746,562 | ||||
| Cost of sales | 218,575 | 157,254 | 651,985 | 456,818 | ||||||||
| Gross profit | 141,438 | 100,445 | 399,280 | 289,744 | ||||||||
| Selling & distribution expenses | 41,769 | 25,965 | 116,559 | 79,414 | ||||||||
| General & administrative expenses | 32,181 | 27,051 | 112,713 | 80,903 | ||||||||
| Income from operations | 67,488 | 47,429 | 170,008 | 129,427 | ||||||||
| Interest expense and deferred | ||||||||||||
| financing amortization, net | 4,249 | 2,988 | 11,729 | 7,046 | ||||||||
| Other expense, net | 1,394 | 2,765 | 1,998 | 3,652 | ||||||||
| Earnings before income taxes | 61,845 | 41,676 | 156,281 | 118,729 | ||||||||
| Provision for income taxes | 20,903 | 11,907 | 52,274 | 35,820 | ||||||||
| Net earnings | $ | 40,942 | $ | 29,769 | $ | 104,007 | $ | 82,909 | ||||
| Net earnings per share: | ||||||||||||
| Basic | $ |
2.19 |
$ | 1.63 | $ |
5.60 |
$ | 4.55 | ||||
| Diluted | $ |
2.18 |
$ | 1.60 | $ |
5.58 |
$ | 4.47 | ||||
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Weighted average number shares: |
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| Basic |
18,726 |
18,296 |
18,569 |
18,237 | ||||||||
| Diluted |
18,742 |
18,580 |
18,655 |
18,539 | ||||||||
| Comprehensive income | $ | 47,123 | $ | 35,956 | $ | 103,375 | $ | 87,642 | ||||
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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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| Sep 28, 2013 | Dec 29, 2012 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 29,355 | $ | 34,366 | ||
| Accounts receivable, net | 195,477 | 162,230 | ||||
| Inventories, net | 209,758 | 153,490 | ||||
| Prepaid expenses and other | 31,832 | 19,151 | ||||
| Prepaid taxes | 3,323 | - | ||||
| Current deferred tax assets | 44,403 | 43,365 | ||||
| Total current assets | 514,148 | 412,602 | ||||
| Property, plant and equipment, net | 117,739 | 63,886 | ||||
| Goodwill | 635,718 | 526,011 | ||||
| Other intangibles | 419,951 | 233,341 | ||||
| Other assets | 12,932 | 8,440 | ||||
| Total assets | $ | 1,700,488 | $ | 1,244,280 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current maturities of long-term debt | $ | 778 | $ | 1,850 | ||
| Accounts payable | 94,557 | 69,653 | ||||
| Accrued expenses | 187,198 | 170,932 | ||||
| Total current liabilities | 282,533 | 242,435 | ||||
| Long-term debt | 536,608 | 258,220 | ||||
| Long-term deferred tax liability | 45,065 | 44,838 | ||||
| Other non-current liabilities | 54,779 | 48,760 | ||||
| Stockholders’ equity | 781,503 | 650,027 | ||||
| Total liabilities and stockholders’ equity | $ | 1,700,488 | $ | 1,244,280 | ||
Source: The
The Middleby Corporation
Darcy Bretz, Investor and Public Relations
(847)
429-7756
or
Tim FitzGerald, Chief Financial Officer
(847)
429-7744