MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_01C64362.6E95E0D0" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_01C64362.6E95E0D0 Content-Location: file:///C:/E31B1E54/Earnings2005Q4.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" THE MIDDLEBY CORPORATION

THE MIDDLEBY CORPORATION

=  <= /span>


1400 Toastmas= ter Drive, Elgin, Illinois 60120 · (847) 741-3300 · Fax (847) 741-1689

 

 

The Middleby Corporati= on Reports Fourth Quarter Results

 

Elgin, IL, March 8, 2006 – The Middleby Corpor= ation (NASDAQ: MIDD), a leading worldwide manufacturer of restaurant and foodserv= ice cooking equipment, today reported sales and earnings for the fourth quarter ended December 31, 2005.  Net earnings for the fourth quarter were $7,233,000 or $0.88 per share on net s= ales of $76,930,000 as compared to the prior year fourth quarter net loss of $660,000 or $(0.07) per share on net sales of $65,119,000.  Net earnings for the year ended De= cember 31, 2005 were $32,178,000 or $3.98 per share on net sales of $316,668,000 as compared to net earnings of $23,588,000 or $2.38 per share on net sales of $271,115,000 in the prior year.  The financial results in the 2004 fourth quarter and full year included a charge associated with the repurchase of shares of common stock from the former Chairman of the company. =

 

As previously announced, the company acquired Alkar Holdings, Inc. (“Alkar”) on December 7, 2005. As anticipated, A= lkar reported a net loss in the 2005 fourth quarter, resulting in a reduction of $(192,000) to net earnings on net sales of $2,837,000 for the period from t= he acquisition on December 7, 2005 through December 31, 2005. Excluding the im= pact of the Alkar acquisition, net earnings for the fourth quarter and year ended December 31, 2005 were $7,425,000, or $0.91 per share and $32,370,000, or $= 4.00 per share, respectively.

 

 

Fourth Quarter Financial Highlights

 

·         Net sales rose 18.1% in the fourth quarter a= nd 16.8% for the year.  The net s= ales increase in the fourth quarter and year reflects the impact of the acquisitions.  The acquisition= of Nu-Vu Foodservice Systems completed in January 2005 accounted for 5.8% of t= he sales growth for the quarter and 5.9% for the full year and the acquisition= of Alkar accounted for 4.3% of sales growth in the quarter and 1.0% for the fu= ll year.  Excluding the impact of= the acquisitions, net sales would have organically increased 8.0% in the fourth quarter and 9.9% for the year, reflecting the impact of new product sales a= nd growth in restaurant chain business.

 

·         Gross margin increased to 38.4% for the four= th quarter as compared to 37.3% in the prior year quarter and 38.4% for the 20= 05 full year as compared to 37.9% in 2004.&nb= sp; The fourth quarter gross margins benefited from production efficienc= ies associated with increased sales volumes and operating i= mprovements, offset in part by lower gross margins at the newly acquired Alkar business.  Margins also improv= ed as compared to the first half of the year due to margin improvements at Nu-Vu Foodservice Systems, as a result of completed integration initiatives. 

 

·         Interest expense increased to $1,374,000 in = the fourth quarter and $6,437,000 for the year as compared to $670,000 in the p= rior year quarter and $3,004,000 for the prior year as a result of higher average debt levels resulting primarily from the $84.0 million December 2004 share repurchase transaction.

 

·         Total debt decreased to $121,595,000 at the = end of 2005 from $123,723,000 at the end of 2004.  Borrowing activity in 2005 included $11.5 million of funding for the January Nu-Vu acquisition and $28.2 millio= n of funding for the December Alkar acquisition.

"2005 was a successful year," said Chairman and Chief Execu= tive Officer, Selim A. Bassoul.  &q= uot;We continued to develop and introduce new products, which continued to provide positive sales momentum in 2005 and as we move forward into 2006.  Our new product innovations are fo= cused on speed of cooking, energy savings, and automation.  Our first introduction of 2006 wil= l be the Middleby Marshall "Wow" oven, a conveyor oven that is more th= an 25% faster and 40% more energy efficient than conveyor ovens we manufactured seven years ago."        =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;    

 

Mr. Bassoul contin= ued, "We are also very pleased with the integration and continued progress = of Nu-Vu Foodservice Systems, a leading manufacturer of baking ovens and proof= ers, acquired in January 2005.  We = have achieved substantial improvement in profitability at this operation during = the second half of 2005 as we completed our integration efforts.  We are now focusing on marketing e= fforts to capture opportunities associated with the ongoing trend of on-premise baking."

 <= /span>

Mr. Bassoul conclu= ded, "We were very excited to complete the year with the acquisition of Alk= ar Holdings, Inc.  This acquisiti= on allows Middleby to expand its customer base to include the food processing industry and add to its portfolio of leading brands in foodservice equipment with the addition of the Alkar and RapidPak brands.  Alkar is positioned to benefit from increasing demand for prepared and convenience foods, as fewer meals are be= ing prepared at home.  We have made substantial progress in our integration and restructuring efforts at this business and will focus our efforts to the development of new products duri= ng 2006.  This acquisition will be accretive to 2006 net earnings."

 

        =      

Conference Call=

 

A conference call wil= l be held at 11:00 a.m. Eastern time on March 9, 2006 and can be accessed by dia= ling (800) 367-5339 and providing conf= erence code 6212863.  Members of the financial community who participate in the question and answer sessi= on will receive a separate call-in number.&nb= sp; An audio webcast of the conference call can be accessed through inve= stor services at www.middleby.com.  A digital replay of the call will be available approximately one half hour after its completion and can be accessed by calling

<= span style=3D'mso-bidi-font-size:11.0pt'>(800) 642-1687 and providing code 62128= 63.  A transcript of the call will also= be posted to the company's website.

 

Statements in this pr= ess release or otherwise attributable to the company regarding the company̵= 7;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 compa= ny 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 k= ey 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 accepta= nce 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.

  

The Middleby Corporat= ion is a global leader in the foodservice equipment industry.  The company develops, manufactures, markets and services a broad line of equipment used for cooking and food preparation in commercial and institutional kitchens and restaurants throug= hout the world.  The company’s leading equipment brands include Alkarâ, Blodgett= â= , Blodgett Combi= â, Blodgett = Rangeâ, CTX= â= , MagiKitch’nâ, Middleby Marshallâ= , Nu-Vu= â, Pitco Frialator= â, RapidPak= â, Southbend= â, and Toastmaster= â.  Middleby’s international subsidiary, Middleby Worldwide, is a leading exporter and distributor of foodservice equipment in the global marketplace. Middleby’s internati= onal manufacturing subsidiary, Middleby Philippines Corporation, is a leading supplier of specialty equipment in the Asian markets.

For further informati= on about Middleby, visit www.middleby.com.

 

Contact:        &= nbsp;   Darcy Bretz, Investor and Public Relations, 847-429-7756

Ti= mothy FitzGerald, Chief Financial Officer, 847-429-7744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      &nb= sp;         THE MIDDLEBY CORPORATI= ON

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS=

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

(Unaudited)

 

        &= nbsp;           =             &nb= sp;            =             &nb= sp;          Three Months Ended        =             &nb= sp; Fiscal Year Ended

  &n= bsp;           =             &nb= sp;            =          <= /p>

 

4th Qtr, 2005 &nb= sp;

4th Qtr, 2004 &nb= sp;

       2005   <= /p>

        2004   <= /p>

Net sales

$  76,930

$  65,119

$  316,668

$  271,115

Cost of sales

   47,411

   40,854

  195,015

   168,487<= /u>

 

 

 

 

 

    Gross profit

 29,519

 24,265

121,653

102,628

 

 

 

 

 

Selling & distribution expense

    8,109

    7,156

33,772

30,496

General & administrative expense<= /o:p>

8,062

5,429

29,909

23,113

Stock repurchase transaction 

  expenses

 

-

 

12,647

 

-

 

12,647

Acquisition integration reserve=

  adjustments

 

       &nbs= p;   -

 

  (1,887)

 

       &nbs= p;     -

 

     (1,887<= /u>)

 

 

 

 

 

    Income from operations

    13,348

    920

57,972

38,259

 

 

 

 

 

Interest expense and deferred       &nbs= p;  

 

 

 

 

  financing amortization, net

   1,374

   670

6,437

3,004

Debt extinguishment expenses

-

1,154

-

1,154

Gain on acquisition financing

  derivatives

 

-

 

(169)

 

-

 

(265)

Other expense (income), net

       &nbs= p; 90

       20= 5

       &nbs= p;  137

       &nbs= p;   522

 

 

 

 

 

    Earnings before inco= me taxes

11,884

(940)

51,398

33,844

 

 

 

 

 

Provision for income taxes

     4,651

      (280)

     19,220

      10,256

 

 

 

 

 

    Net earnings

$   7,233

$    (660)

$    32,178

$    23,588

 

 

 

 

 

 

 

 

 

 

Net earnings per share:<= /p>

 

 

 

 

 

 

 

 

 

    Basic

$    0.96

$   (0.07)

$       4.= 28

$       2.= 56

 

 

 

 

 

    Diluted

$    0.88

$   (0.07)

$       3.= 98

$       2.= 38

 

Weighted average number shares:=

 

 

 

 

 

 

 

 

 

    Basic

    7,559

     9,104

      7,514

      9,200

 

=  

=  

 

 

    Diluted

    8,193

     9,104

      8,093

      9,931

 

 

  

THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in 000’s)

(Unaudited)

 

        &= nbsp;     &n= bsp;            = ;                 &= nbsp;           =             &nb= sp;            =                        =             &nb= sp;            =            

 

 

 

 

 

 

Dec. 31, 2005

 

Jan. 1, 2005

 ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$      3,908

 

$      3,803

 

Accounts receivable, net=

    38,552

 

    26,612

 

Inventories, net

40,989

 

32,772

 

Other current assets

4,513

 

2,008

 

Prepaid taxes

3,354

 

9,952

 

Deferred tax assets

     10,319

 

       8,= 865

 

    Total current assets=

101,635

 

84,012

 

 

 

 

 

 

Property, plant and equipment, net

25,331

 

22,980

 

 

 

 

 

 

Goodwill

98,757

 

74,761

 

Other intangibles

35,498

 

26,300

 

Other assets

        2,697

 

        1,622

 

 

 

 

 

 

    Total assets

$  263,918

 

$  209,675

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY=

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt<= /o:p>

$    13,780

 

$    10,480

 

Accounts payable

17,576

 

11,298

 

Accrued expenses

      62,689

 

      51,311

 

    Total current liabil= ities

94,045

 

73,089

 

 

 

 

 

 

Long-term debt

107,815

 

113,243

 

Long-term deferred tax liability

8,207

 

11,434

 

Other non-current liabilities

5,351

 

4,694

 

 

 

 

 

 

Shareholders’ equity

      48,500

 

       7,= 215

 

 

 

 

 

 

    Total liabilities and shareholders’ equity

$  263,918

 

$  209,675

 

   

 

 

 

 

 

 

 

 

 

 

 

 

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