The Middleby Corporation Reports Second Quarter Results
2014 Second Quarter Financial Highlights
- Net sales increased 16.8% compared to the prior year second quarter. Excluding the impact of acquisitions, sales increased 11.0% during the second quarter.
-
Net sales at the company’s
Commercial Foodservice Equipment Group increased by$40.9 million , or 18.3%, to$263.9 million in the second quarter as compared to$223.0 million the prior year second quarter. During fiscal 2013, the company completed the acquisitions of Wunder-Bar and Celfrost. During fiscal 2014, the company completed the acquisition of Market Forge. Excluding the impact of these acquisitions, net sales increased by 10.2% in the second quarter. -
Net sales at the company’s
Food Processing Equipment Group increased by$8.0 million , or 9.8%, to$89.9 million in the second quarter as compared to$81.9 million the prior year second quarter. During fiscal 2014, the company completed the acquisition of Process Equipment Solutions. Excluding the impact of this acquisition, net sales increased by 6.2% in the second quarter. -
Net sales at the company’s
Residential Kitchen Equipment Group increased by$12.1 million , or 20.6%, to$70.9 million in the second quarter of 2014 as compared to$58.8 million in prior year second quarter. -
Gross profit in the second quarter increased to
$166.2 million from$136.6 million , reflecting the impact of higher sales volumes. The gross margin rate increased from 37.5% to 39.1%. The increase in the gross margin rate from the prior year reflects improved margins at theFood Processing Equipment Group and Viking resulting from integration initiatives implemented during 2013 and 2014. -
Operating income increased in the second quarter by 25.5% in the
second quarter to
$75.7 million from$60.3 million in the prior year second quarter. Operating income included$1.3 million of non-recurring charges associated with the integration of the acquired Viking distribution operations. -
Non-cash expenses included in operating income during the second
quarter of 2014 increased to
$15.3 million as compared to$14.4 million in the prior year second quarter. Non-cash expenses during the 2014 second quarter were comprised of$3.8 million of depreciation,$6.7 million of intangible amortization and$4.8 million of non-cash share based compensation. -
Total debt at the end of the 2014 second quarter amounted to
$592.7 million as compared to$655.4 million at the end of the first quarter, as cash generated from operations were utilized to repay debt.
“At Viking, we completed the initiative started in 2013 to establish our
company owned distribution operations through acquisition and transition
of independent distributors covering the U.S.,
Mr. Bassoul added, “In the second half, we are focused on marketing of our new lineup of residential products and training of the dealer sales organization. We expect to make significant investments in the second half to promote the display of these new products on dealer showroom floors and anticipate that we will be well positioned moving into 2015.”
Conference Call
A conference call will be held at
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
|
THE MIDDLEBY CORPORATION |
||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||
|
(Amounts in 000’s, Except Per Share Information) |
||||||||||||
|
(Unaudited) |
||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||
|
|
2nd Qtr, 2014 |
2nd Qtr, 2013 |
2nd Qtr, 2014 |
2nd Qtr, 2013 |
||||||||
| Net sales | $ | 424,776 | $ | 363,801 | $ | 797,254 | $ | 691,252 | ||||
| Cost of sales | 258,602 | 227,227 | 488,104 | 433,410 | ||||||||
| Gross profit | 166,174 | 136,574 | 309,150 | 257,842 | ||||||||
| Selling & distribution expenses | 48,102 | 38,638 | 95,072 | 74,790 | ||||||||
| General & administrative expenses | 42,333 | 37,611 | 82,406 | 80,532 | ||||||||
| Income from operations | 75,739 | 60,325 | 131,672 | 102,520 | ||||||||
|
Interest expense and deferred financing amortization, net |
4,169 | 4,046 | 8,156 | 7,480 | ||||||||
| Other expense, net | 195 | 391 | 1,060 | 604 | ||||||||
| Earnings before income taxes | 71,375 | 55,888 | 122,456 | 94,436 | ||||||||
| Provision for income taxes | 22,970 | 18,725 | 40,606 | 31,371 | ||||||||
| Net earnings | $ | 48,405 | $ | 37,163 | $ | 81,850 | $ | 63,065 | ||||
| Net earnings per share: | ||||||||||||
| Basic | $ | 0.85 | $ | 0.67 | $ | 1.44 | $ | 1.14 | ||||
| Diluted | $ | 0.85 | $ | 0.67 | $ | 1.44 | $ | 1.13 | ||||
|
Weighted average number shares: |
||||||||||||
| Basic | 56,866 | 55,755 | 56,661 | 55,470 | ||||||||
| Diluted | 56,867 | 55,844 | 56,662 | 55,850 | ||||||||
| Comprehensive income | $ | 50,038 | $ | 35,174 | $ | 85,264 | $ | 56,252 | ||||
|
THE MIDDLEBY CORPORATION |
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
(Amounts in 000’s) |
||||||
|
(Unaudited) |
||||||
|
Jun 28, 2014 |
Dec 28, 2013 |
|||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 32,258 | $ | 36,894 | ||
| Accounts receivable, net | 229,795 | 205,264 | ||||
| Inventories, net | 260,033 | 220,116 | ||||
| Prepaid expenses and other | 33,738 | 32,322 | ||||
| Prepaid taxes | 6,827 | 801 | ||||
| Current deferred taxes | 48,687 | 50,337 | ||||
| Total current assets | 611,338 | 545,734 | ||||
| Property, plant and equipment, net | 130,676 | 125,457 | ||||
| Goodwill | 719,265 | 687,955 | ||||
| Other intangibles, net | 441,461 | 447,944 | ||||
| Long-term deferred tax assets | 3,337 | 1,641 | ||||
| Other assets | 20,022 | 10,475 | ||||
| Total assets | $ | 1,926,099 | $ | 1,819,206 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current maturities of long-term debt | $ | 8,210 | $ | 1,408 | ||
| Accounts payable | 105,329 | 96,518 | ||||
| Accrued expenses | 202,565 | 213,459 | ||||
| Total current liabilities | 316,104 | 311,385 | ||||
| Long-term debt | 584,488 | 570,190 | ||||
| Long-term deferred tax liability | 72,468 | 61,433 | ||||
| Other non-current liabilities | 42,029 | 37,851 | ||||
| Stockholders’ equity | 911,010 | 838,347 | ||||
| Total liabilities and stockholders’ equity | $ | 1,926,099 | $ | 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