THE MIDDLEBY CORPORATION REPORTS
FIRST QUARTER RESULTS

Elgin, IL, May 9, 2002 - The Middleby Corporation (NASDAQ: MIDD), a global supplier of equipment to the foodservice industry, today reported earnings of $714,000 or $.08 per share on net sales of $54,491,000 for the first quarter ended March 30, 2002 as compared to earnings of $549,000 or $.06 per share on net sales of $24,747,000 in the prior year quarter.  The first quarter 2002 financial performance includes the results of Blodgett Holdings, Inc. (“Blodgett”), which was acquired from Maytag Corporation on December 21, 2001.

Net sales for the first quarter of fiscal 2002 were $54,491,000 as compared to $24,747,000 in the first quarter of 2001.  The increase in net sales resulted from the incremental business associated with the acquired Blodgett operations.  On a proforma basis in the first quarter of 2001 net sales for combined Middleby and Blodgett amounted to $54,378,000.  Net sales in the first quarter of 2002 increased slightly over the combined net sales of the prior year quarter, while the incoming order rate for the combined company increased approximately 4% as compared to the prior year period.

Gross profit in the first quarter of 2002 was $17,893,000 as compared to $8,171,000 from the first quarter of the prior year.  Operating income increased to $4,721,000 in the first quarter 2002 from $1,837,000 in the prior year comparable period.  Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $5,879,000 in the first quarter of 2002 as compared to $2,525,000 in the first quarter of 2001.  The increase in gross profit, operating income and EBITDA has resulted from the addition of the acquired Blodgett operations.

Interest and other non-operating costs amounted to $3,280,000 in the first quarter of 2002 as compared to $353,000 in the prior year quarter.  The first quarter expense reflects an increase in interest cost associated with the debt incurred to finance the Blodgett acquisition.  Total debt was reduced during the first quarter by $4,761,000 to $92,202,000 as compared to $96,963,000 at December 29, 2001.

Commenting on the company’s performance for the first quarter over the prior year, Selim A. Bassoul, President and Chief Executive Officer, said, “We are very pleased with the accomplishments of the first quarter.  We delivered a solid financial performance during a period of significant transition.  During the first quarter we completed initiatives to reorganize the management structure of Blodgett and reduce headcount, which have resulted in an improved cost structure.  Additionally, in May we consolidated manufacturing for the Blodgett Combi-oven product line within existing production facilities, which enabled the company to exit a manufacturing facility.  We continue to make progress to further reduce operating costs, which should benefit future quarters.”

Mr. Bassoul continued, “We are pleased with the increase in orders during the first quarter, particularly since it was a period of significant change within the sales and marketing organization.  The sales organization for Blodgett was decentralized during the quarter to provide a greater focus on each product line and allow for enhanced customer service.  We added several key individuals to the selling organization to strengthen these efforts.  We are particularly pleased with the addition of Phil DeiDolori as President of the Pitco/Magikitch’n organization.  Phil was previously the President of Vulcan-Hart and brings with him strong customer relationships and a great deal of experience in the foodservice industry.”

Mr. William F. Whitman, Jr., Chairman of the Board, added, “We have seen the initial benefits from integration of the Blodgett organization in the first quarter and anticipate continued improvement in the financial results as we capitalize on the sales opportunities, complete initiatives to enhance profitability levels, and continue efforts to reduce the acquisition related debt and its associated interest costs.”

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, but are not limited to, the ability to successfully integrate the acquired operations of Blodgett, 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 leader in the design, manufacture, marketing and service of a broad line of equipment used for cooking and preparation of food in commercial and institutional kitchens and restaurants throughout the world.  The company’s leading equipment brands include Blodgett®, Blodgett Combi®, MagiKitch’n®, Middleby Marshall®, Pitco Frialator®, Southbend, and Toastmaster®.  Middleby’s international subsidiary, Middleby Worldwide, is a leading exporter and distributor of foodservice equipment in the global marketplace and its international manufacturing subsidiary, Middleby Philippines Corporation, is a leading supplier of specialty equipment in the Asian markets.

For further information about Middleby, visit the company’s World Wide Web site, http://www.middleby.com.

Contact:            Selim A. Bassoul, Chief Executive Officer – 847- 429-7788
                        David B. Baker, Chief Financial Officer – 847- 429-7915

THE MIDDLEBY CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in 000’s, Except Per Share Information)
(Unaudited)

Three Months Ended

                                               

 

1st Qtr, 2002  

1st Qtr, 2001  

Net sales

$  54,491

$  24,747

Cost of sales

   36,598

    16,576

 

 

 

    Gross profit

 17,893

 8,171

 

 

 

Selling & distribution expense   

    7,221

    3,617

General & administrative expense

    5,951

     2,717

 

 

 

    Income from operations

    4,721

    1,837

 

 

 

Interest expense and deferred          

 

 

    Financing amortization, net

   3,058

   155

Other expense (income), net

        222

        198

 

 

 

    Earnings before income taxes

1,441

 1,484

 

 

 

Provision for income taxes

       727

        935

 

 

 

 

 

 

    Net earnings

$      714

$      549

 

 

 

    EBITDA

$   5,879

$   2,525

 

 

 

 

 

 

 

 

 

Net earnings per share:

 

 

 

 

 

    Basic

$     0.08

$      0.06

 

 

 

    Diluted

$     0.08

$      0.06

 

 

 

 

Weighted average number shares:

 

 

 

 

 

    Basic

      8,972

     8,996

 

 

 

    Diluted

      8,991

      9,036

 THE MIDDLEBY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in 000’s)
(Unaudited)

 

 As of 1st Qtr

 

As of Year Ended

 

 

2002

 

2001

 

 ASSETS

 

 

 

 

 

Cash and cash equivalents

$       1,406

 

$       3,795

 

Accounts receivable, net

    26,713

 

    25,158

 

Inventories, net

27,646

 

29,115

 

Other current assets

     12,190

 

     12,469

 

    Total current assets

67,955

 

70,537

 

 

 

 

 

 

Property, plant and equipment, net

29,632

 

30,598

 

 

 

 

 

 

 

 

 

 

 

Goodwill and other intangibles

89,627

 

89,793

 

 

 

 

 

 

Other assets

        9,191

 

        9,569

 

 

 

 

 

 

    Total assets

$   196,405

 

$   200,497

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

$     11,012

 

$     10,047

 

Accounts payable

10,753

 

9,289

 

Accrued expenses

     36,507

 

     38,438

 

    Total current liabilities

58,272

 

57,774

 

 

 

 

 

 

Long-term debt

81,190

 

86,916

 

 

 

 

 

 

Other non-current liabilities

14,067

 

13,862

 

 

 

 

 

 

Shareholders’ equity

      42,876

 

      41,945

 

 

 

 

 

 

    Total liabilities and shareholders’

 

 

 

 

        Equity

$   196,405

 

$   200,497

 

   

 

 

 

 

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