The Middleby Corporation Reports First Quarter Results
2016 First Quarter Financial Highlights
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Net sales increased 27.0% compared to the prior year first quarter.
Sales related to recent acquisitions added
$106.6 million or 26.2%, in the first quarter. The impact of foreign exchange rates on foreign sales translated into U.S. Dollars reduced net sales by approximately$6.4 million or 1.6%, during the first quarter. Excluding the impact of foreign exchange, organic sales growth amounted to 2.3% during the first quarter. -
Net sales at the company’s
Commercial Foodservice Equipment Group increased by$16.8 million , or 6.4%, to$279.0 million in the first quarter as compared to$262.2 million in the prior year first quarter. During fiscal 2015, the company completed the acquisitions ofGoldstein Eswood , Marsal and Induc. Excluding the impact of these acquisitions, sales increased 5.6% in the first quarter, or 7.5% on a constant currency basis. -
Net sales at the company’s
Food Processing Equipment Group increased by$8.8 million , or 12.6%, to$78.6 million in the first quarter as compared to$69.8 million the prior year first quarter. During fiscal 2015, the company completed the acquisition of Thurne. Excluding the impact of this acquisition, sales increased by 4.6% in the first quarter, or 5.9% on a constant currency basis. -
Net sales at the company’s
Residential Kitchen Equipment Group increased by$84.1 million , or 112.7%, to$158.7 million in the first quarter as compared to$74.6 million in the prior year first quarter. During fiscal 2015, the company completed the acquisitions of AGA and Lynx. Excluding the impact of these acquisitions, sales decreased by 19.7% in the first quarter, or 19.2% on a constant currency basis. The decline in revenues reflects lower sales at U-Line due to the prior year favorable impact of a new product launch and lower sales at Viking impacted by the prior year recall of certain legacy products manufactured prior to acquisition. -
Gross profit in the first quarter increased to
$196.8 million from$157.6 million , reflecting the impact of increased sales from acquisitions. The gross margin rate decreased to 38.1% from 38.8%. The gross margin rate for the quarter was impacted by lower gross margins at the recent acquisition of AGA. Excluding the impact of AGA, the gross margin rate would have increased to 40.0% for the current quarter, reflecting improved margins at theCommercial Foodservice Equipment Group and theFood Processing Equipment Group associated with favorable sales mix and the benefit of integration initiatives. -
Operating income increased 29.7% in the first quarter to
$86.4 million from$66.6 million in the prior year quarter. -
Non-cash expenses included in operating income during the first
quarter of 2016 amounted to
$19.6 million , including$6.0 million of depreciation,$8.6 million of intangible amortization and$5.0 million of non-cash share based compensation. -
Other income in the quarter was
$0.8 million compared to other expense of$4.6 million in the prior year quarter, consisting mainly of foreign exchange gains and losses. -
The provision for income taxes during the first quarter amounted to
$27.4 million , at an effective rate of 33.4%, as compared to a$20.0 million provision at a 34.4% effective rate in the prior year quarter.
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Net earnings per share of
$0.96 in the first quarter as compared to$0.67 in the prior year quarter. The prior year quarter included restructuring expenses of$4.6 million , which reduced net earnings per share by$0.05 in the prior year quarter. -
Total debt at the end of the first quarter amounted to
$763.1 million as compared to$766.1 million at the end of the fiscal 2015.
“We realized strong incoming order rates at the
Mr. Bassoul added, “At our
Mr. Bassoul, concluded “We continue to focus on our profit improvement
initiatives at the recent acquisition of
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
The
| 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 |
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1st Qtr, 2016 | 1st Qtr, 2015 | ||||||
| Net sales | $ | 516,355 | $ | 406,596 | ||||
| Cost of sales | 319,582 | 249,034 | ||||||
| Gross profit | 196,773 | 157,562 | ||||||
| Selling & distribution expenses | 53,689 | 47,109 | ||||||
| General & administrative expenses | 56,103 | 39,273 | ||||||
| Restructuring expenses | 606 | 4,600 | ||||||
| Income from operations | 86,375 | 66,580 | ||||||
| Interest expense and deferred | ||||||||
| financing amortization, net | 5,276 | 3,749 | ||||||
| Other (income) expense, net | (800) | 4,561 | ||||||
| Earnings before income taxes | 81,899 | 58,270 | ||||||
| Provision for income taxes | 27,361 | 20,039 | ||||||
| Net earnings | $ | 54,538 | $ | 38,231 | ||||
| Net earnings per share: | ||||||||
| Basic | $ | 0.96 | $ | 0.67 | ||||
| Diluted | $ | 0.96 | $ | 0.67 | ||||
|
Weighted average number shares: |
||||||||
| Basic | 57,051 | 56,917 | ||||||
| Diluted | 57,051 | 56,918 | ||||||
| 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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| Apr 2, 2016 | Jan 2, 2016 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 55,681 | $ | 55,528 | ||||
| Accounts receivable, net | 300,907 | 282,534 | ||||||
| Inventories, net | 367,639 | 354,150 | ||||||
| Prepaid expenses and other | 43,604 | 39,801 | ||||||
| Prepaid taxes | 6,214 | 11,426 | ||||||
| Current deferred tax assets | 51,902 | 51,723 | ||||||
| Total current assets | 825,947 | 795,162 | ||||||
| Property, plant and equipment, net | 199,081 | 199,750 | ||||||
| Goodwill | 983,998 | 983,339 | ||||||
| Other intangibles, net | 734,795 | 749,430 | ||||||
| Long-term deferred tax assets | 10,833 | 11,438 | ||||||
| Other assets | 23,290 | 22,032 | ||||||
| Total assets | $ | 2,777,944 | $ | 2,761,151 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current maturities of long-term debt | $ | 57,046 | $ | 32,059 | ||||
| Accounts payable | 156,175 | 157,758 | ||||||
| Accrued expenses | 300,011 | 320,154 | ||||||
| Total current liabilities | 513,232 | 509,971 | ||||||
| Long-term debt | 706,074 | 734,002 | ||||||
| Long-term deferred tax liability | 121,675 | 113,010 | ||||||
| Accrued pension benefits | 182,343 | 207,564 | ||||||
| Other non-current liabilities | 30,284 | 29,774 | ||||||
| Stockholders’ equity | 1,224,336 | 1,166,830 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,777,944 | $ | 2,761,151 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160511006602/en/
Source: The
The Middleby Corporation
Darcy Bretz, Investor and Public
Relations, (847) 429-7756
or
Tim FitzGerald, Chief Financial
Officer, (847) 429-7744