MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_01C59391.E0466D20" 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_01C59391.E0466D20 Content-Location: file:///C:/E31B1E52/Earnings2005Q2.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 Record Second Quarter Results

 

Elgin, IL, July 28, 2005 – The Mi= ddleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of restaurant = and foodservice cooking equipment, today reported record sales and earnings for= the second quarter

e= nded July 2, 2005.  Net earnings fo= r the second quarter were $8,969,000 or $1.11 per share on net sales of $83,912,0= 00 as compared to the prior year second quarter net earnings of $8,289,000 or $0.82 per share on net sales of $72,913,000.  Net earnings for the six months en= ded July 2, 2005 were $15,317,000 or $1.91 per share on net sales of $158,801,0= 00 as compared to net earnings of $13,880,000 or $1.39 per share on net sales = of $135,376,000 in

t= he prior year first half.   =

 

 

Second Quarter Financial Highlights

 

·         Net sales rose 15.1% in the second quarter, reflecting strong international growth with increased business with expandi= ng restaurant chains.  The second quarter was also favorably impacted by a strong order backlog

      carried from the first quarter as customers placed ord= ers ahead of first quarter price increases.&nb= sp; Additionally, the increase in net sales reflects the impact of the N= u-Vu Foodservice Systems acquisition, which accounted

      for 5.5% of the second quarter sales growth.  Excluding the impact of the acquis= ition, net sales would have increased 9.6% in the second quarter. 

 

·         Gross margin decreased to 38.8% for the seco= nd quarter as compared to 39.5% in the prior year quarter.  Second quarter margins continued t= o be impacted by increased steel and other material costs, offset in part by

increased production efficiencies resulting from the b= enefit of increased sales volumes.  T= he margin rate also was affected by lower margins on sales of the Nu-Vu Foodse= rvice Systems product lines acquired in January 2005.

 

·         Operating income margin decreased to 19.5% a= s a percent of net sales for the second quarter compared to 20.1% in the prior = year quarter, reflecting the impact of lower gross margins and higher general and administrative    co= sts.  General and administrative expense= s in the second quarter included costs associated with the secondary offering completed by the company in July. 

 

·         Interest expense increased to $1,698,000 in = the second quarter of 2005 as compared to $794,000 in the prior year quarter as= a result of higher debt levels resulting from the December 2004 share repurch= ase transaction. 

 

·         Total debt decreased to $121,294,000 at the = end of the quarter ended July 2, 2005 from $138,462,000 at the end of the first quarter and $123,723,000 at the end of 2004.  The first half borrowing activity included $12 million of  funding for the January Nu-Vu acquisition.

 

 

Chairman and Chief Ex= ecutive Officer, Selim A. Bassoul said, “We were pleased with the results of = the second quarter.  As expected, = our domestic order rates in the second quarter and the early part of the third quarter have been     lower due to cust= omers ordering in advance of our first quarter price increase.  However, the impact on second quar= ter sales was offset by very strong international business which benefited from= a number of product rollouts at    restaurant chain custom= ers during the quarter.”

 

Mr. Bassoul continued= , ”Although increased steel costs continued to a= ffect margins in the second quarter, we have continued to make progress in implementing initiatives to offset this impact and were pleased with the margins we achieved during the quarter.&nb= sp; Gross margins in the quarter also benefited from the seasonally stro= ng sales volumes, which are historically the strongest in the second quarter.<= span style=3D'mso-spacerun:yes'>  We also have made progress integra= ting the recently      acquired Nu-Vu Foodservice Systems business and made significa= nt improvement to the manufacturing operations at that facility.  As a result, we began to see margin improvement at this business operation during the quarter         =        and anticipate that will continue throughout the remainder of the year.”<= span style=3D'mso-spacerun:yes'> 

 

Conference Call=

 

A conference call wil= l be held at 11:00 a.m. Eastern time on Friday, July 29 and can be accessed by dialing (800) 367-5339 and providing conference code 8252040<= /span>.  Members of the financial community= who participate in the question  <= span style=3D'mso-spacerun:yes'> and answer session will receive a separate call-in number.  An a= udio 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

(= 800) 642-1687 and providing code 8252040.  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 Litiga= tion 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 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 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 Blodgettâ, Blodgett Combi= â, Blodgett = Rangeâ, CTX= â= , MagiKitch’nâ, Middleby Marshallâ= , Nu-Vu= â, Pitco Frialator= 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; Six Months Ended

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

 

2nd Qtr, 2005 &nb= sp;

2nd Qtr, 2004 &nb= sp;

2nd Qtr, 2005 &nb= sp;

2nd Qtr, 2004 &nb= sp;

Net sales

$  83,912

$  72,913

$  158,801

$  135,376

Cost of sales

   51,326

   44,120

    99,143

    83,407

 

 

 

 

 

    Gross profit

 32,586

 28,793

59,658

51,969

 

 

 

 

 

Selling & distribution expense   

    8,769

    8,327

16,953

15,703

General & administrative expense<= /o:p>

     7,480

     5,813

     14,365

      11,509

 

 

 

 

 

    Income from operatio= ns

    16,337

    14,653

28,340

24,757

 

 

 

 

 

Interest expense and deferred       &nbs= p;  

 

 

 

 

    financing amortizati= on, net

   1,698

   794

3,484

1,691

Loss (gain) on acquisition financing<= /o:p>

    derivatives

 

-

 

2

 

-

 

-

Other expense (income), net

       (6= 2)

       &nbs= p;  78

       (2= 65)

       &nbs= p;   272

 

 

 

 

 

    Earnings before inco= me taxes

14,701

13,779

25,121

22,794

 

 

 

 

 

Provision for income taxes

     5,732

     5,490

       9,= 804

        8,914

 

 

 

 

 

    Net earnings

$   8,969

$   8,289

$    15,317

$    13,880

 

 

 

 

 

 

 

 

 

 

Net earnings per share:<= /p>

 

 

 

 

 

 

 

 

 

    Basic

$    1.19

$    0.90

$       2.= 04

$       1.= 50

 

 

 

 

 

    Diluted

$    1.11

$    0.82

$       1.= 91

$       1.= 39

 

Weighted average number shares:=

 

 

 

 

 

 

 

 

 

    Basic

      7,508

      9,237

      7,490

      9,228

 

=  

=  

 

 

    Diluted

      8,050

    10,048

      8,035

    10,008

 

 

  

 

 

 

 

 

 

 

 

THE MIDDLEBY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in 000’s)

(Unaudited)

 

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

 

 

 

 

 

 

Jul. 2, 2005

 

Jan. 1, 2005

 ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$      3,767

 

$      3,803

 

Accounts receivable, net=

    33,573

 

    26,612

 

Inventories, net

34,977

 

32,772

 

Prepaid taxes

726

 

9,952

 

Deferred tax assets

8,836

 

8,865

 

Other current assets

       1,= 241

 

       2,= 008

 

    Total current assets=

83,120

 

84,012

 

 

 

 

 

 

Property, plant and equipment, net

23,080

 

22,980

 

 

 

 

 

 

Goodwill

81,515

 

74,761

 

Other intangibles

26,300

 

26,300

 

Other assets

        2,107

 

        1,622

 

 

 

 

 

 

    Total assets

$  216,122

 

$  209,675

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY=

 

 

 

 

 

 

 

 

 

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

$    11,730

 

$    10,480

 

Accounts payable

13,999

 

11,298

 

Accrued expenses

      43,488

 

      51,311

 

    Total current liabil= ities

69,217

 

73,089

 

 

 

 

 

 

Long-term debt

109,564

 

113,243

 

Long-term deferred tax liability

8,002

 

11,434

 

Other non-current liabilities

5,007

 

4,694

 

 

 

 

 

 

Shareholders’ equity

      24,332

 

       7,= 215

 

 

 

 

 

 

    Total liabilities and shareholders’ equity

$  216,122

 

$  209,675

 

   

 

 

 

 

 

 

 

 

 

 

 

 

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