THE MIDDLEBY CORPORATION
1400 Toastmaster Drive, Elgin, Illinois
60120 · (847) 741-3300 · Fax (847) 741-1689
The Middleby Corporation
Reports Record First Quarter Results
Elgin, IL, April 27, 2004 – The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of restaurant and foodservice cooking equipment, today reported record results for the first quarter ended April 3, 2004. Net earnings were $5,591,000 or $0.56 per share on net sales of $60,732,000 for the first quarter of 2004 as compared to the prior year first quarter net earnings of $2,609,000 or $0.28 per share on net sales of $54,767,000.
Financial Highlights
· Net sales up 10.9% in the first quarter, reflecting favorable impact of new product introductions and general improvement in industry conditions
· Gross margin rate of 38.2% for the quarter as compared to 34.8% in the prior year first quarter and 36.5% for the 2003 full year
· Operating income margins of 16.6% for the first quarter improved from 11.7% in the prior year first quarter and 14.9% for the 2003 full year
· Total debt reduced to $53,650,000 for the quarter ended April 3, 2004 from $56,500,000 at the end of 2003
“We are pleased with the strong start for 2004,” said President and Chief Executive Officer Selim A. Bassoul. “Sales growth accelerated in the first quarter building upon the momentum from 2003. The sales in the first quarter reflect the impact of new product introductions and the continued expansion of business in international markets. Industry conditions also have improved which has benefited the overall growth rate and resulted in a very strong first quarter.” Mr. Bassoul continued, “Late in the first quarter we introduced a full line of steam equipment under the Blodgettâ brand. Steam cooking equipment is a new segment of the market for Middleby and a growing part of the industry. We are excited about the long term prospects for this new product line, as well as the pipeline of other patented and innovative products that we have in development focused on speed of cooking and energy savings.”
William F. Whitman, Jr., Chairman of the Board, added, “We are pleased with the margin improvements reported in the first quarter. This improvement not only reflects the leverage benefits of the increase in sales volumes, but also continued improvements in manufacturing efficiencies.” Mr. Whitman continued, “We were also able to reduce debt during the quarter, while at the same time fund our working capital needs, which typically peak in the second quarter driven by seasonal factors.”
Conference Call
A conference call will
be held at 10:30 Eastern time on Wednesday, April 28 and can be accessed by
dialing
1(800) 374-0538 and
providing password 7110600. Members of
the financial community who participate in the question and answer session will
receive a separate call-in number. A
webcast of the conference call can be accessed through investor 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 1(800) 642-1687 and providing password 7110600. A transcript of the call will also be posted
on the company website.
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 SEC filings.
The Middleby Corporation 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 throughout the world. The company’s leading equipment brands include Blodgettâ, Blodgett Combiâ, Blodgett Rangeâ, CTXâ, MagiKitch’nâ, Middleby Marshallâ, Pitco Frialatorâ, Southbendâ, and Toastmasterâ. Middleby’s international subsidiary, Middleby Worldwide, is a leading exporter and distributor of foodservice equipment in the global marketplace. Middleby’s international manufacturing subsidiary, Middleby Philippines Corporation, is a leading supplier of specialty equipment in the Asian markets.
For further information about Middleby, visit www.middleby.com.
Contact: Darcy Bretz, Investor and Public Relations, 847-429-7756
David Baker, Chief Administrative Officer, 847-429-7915
Timothy FitzGerald, Chief Financial Officer, 847-429-7744
THE MIDDLEBY CORPORATION
CONSOLIDATED STATEMENTS
OF EARNINGS
(Amounts in 000’s, Except Per Share
Information)
(Unaudited)
Three Months Ended
|
|
Apr. 3, 2004
|
Mar. 29, 2003
|
|
Net sales |
$
60,732 |
$
54,767 |
|
Cost of sales |
37,556 |
35,715 |
|
|
|
|
|
Gross profit |
23,176 |
19,052 |
|
|
|
|
|
Selling &
distribution expense |
7,376 |
7,162 |
|
General &
administrative expense |
5,696 |
5,483 |
|
|
|
|
|
Income from operations |
10,104 |
6,407 |
|
|
|
|
|
Interest
expense and deferred |
|
|
|
financing amortization, net |
897 |
1,714 |
|
Loss (gain) on
acquisition financing derivatives |
(2) |
(69) |
|
Other expense
(income), net |
194 |
135 |
|
|
|
|
|
Earnings before income taxes |
9,015 |
4,627 |
|
|
|
|
|
Provision for
income taxes |
3,424 |
2,018 |
|
|
|
|
|
Net earnings |
$
5,591 |
$
2,609 |
|
|
|
|
|
|
|
|
|
Net earnings per share: |
|
|
|
|
|
|
|
Basic |
$
0.61 |
$
0.29 |
|
|
|
|
|
Diluted |
$
0.56 |
$
0.28 |
|
Weighted
average number shares: |
|
|
|
|
|
|
|
Basic |
9,219 |
9,028 |
|
|
|
|
|
Diluted |
9,968 |
9,304 |
THE MIDDLEBY CORPORATION
CONSOLIDATED CONDENSED
BALANCE SHEETS
(Amounts in 000’s)
(Unaudited)
|
|
|
|
|
|
|||
|
|
Apr. 3, 2004 |
|
Jan. 3, 2004 |
||||
|
ASSETS |
|
|
|
|
|||
|
Cash and cash
equivalents |
$
3,073 |
|
$
3,652 |
|
|||
|
Accounts
receivable, net |
25,446 |
|
23,318 |
|
|||
|
Inventories,
net |
28,904 |
|
25,382 |
|
|||
|
Deferred tax
assets |
12,907 |
|
12,839 |
|
|||
|
Other current
assets |
1,220 |
|
1,776 |
|
|||
|
Total current assets |
71,550 |
|
66,967 |
|
|||
|
|
|
|
|
|
|||
|
Property,
plant and equipment, net |
24,132 |
|
24,921 |
|
|||
|
|
|
|
|
|
|||
|
Goodwill |
74,761 |
|
74,761 |
|
|||
|
Other
intangibles |
26,300 |
|
26,300 |
|
|||
|
Other assets |
1,430 |
|
1,671 |
|
|||
|
|
|
|
|
|
|||
|
Total assets |
$
198,173 |
|
$
194,620 |
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|||
|
|
|
|
|
|
|||
|
Current
maturities of long-term debt |
$
15,975 |
|
$
14,500 |
|
|||
|
Accounts
payable |
15,455 |
|
11,901 |
|
|||
|
Accrued expenses |
34,899 |
|
37,076 |
|
|||
|
Total current liabilities |
66,329 |
|
63,477 |
|
|||
|
|
|
|
|
|
|||
|
Long-term debt |
37,675 |
|
42,000 |
|
|||
|
Long-term
deferred tax liability |
8,264 |
|
8,264 |
|
|||
|
Other
non-current liabilities |
18,042 |
|
18,789 |
|
|||
|
|
|
|
|
|
|||
|
Shareholders’
equity |
67,863 |
|
62,090 |
|
|||
|
|
|
|
|
|
|||
|
Total liabilities and shareholders’ |
|
|
|
|
|||
|
equity |
$
198,173 |
|
$
194,620 |
|
|||
|
|
|
|
|
|
|||