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