EX-99.1 2 a4878813ex991.txt EXHIBIT 99.1 Exhibit 99.1 The Middleby Corporation Reports Record First Quarter Results ELGIN, Ill.--(BUSINESS WIRE)--May 2, 2005--The Middleby Corporation (NASDAQ:MIDD), a leading worldwide manufacturer of restaurant and foodservice cooking equipment, today reported record sales and earnings for the first quarter ended April 2, 2005. Net earnings for the first quarter were $6,348,000 or $0.79 per share on net sales of $74,889,000 as compared to the prior year first quarter net earnings of $5,591,000 or $0.56 per share on net sales of $62,463,000. Financial Highlights -- Net sales rose 19.9% in the first quarter, reflecting the impact of price increases, continued success of new product introductions and growth in business with restaurant chain customers. Additionally, the increase in net sales reflects the impact of the Nu-Vu Foodservice Systems acquisition. Excluding the impact of the acquisition, net sales would have increased 14.6%. -- Gross margin decreased to 36.1% for the first quarter as compared to 37.1% in the prior year period. The benefit of increased sales volumes was offset by higher steel prices and other material costs. The margin rate also was affected by lower margins on sales of the Nu-Vu Foodservice Systems product lines. -- Operating income increased 18.8% as a result of higher sales volumes. -- Interest expense increased to $1,786,000 in the first quarter of 2005 as compared to $897,000 in the prior year quarter as a result of higher debt levels resulting from the December 2004 share repurchase transaction. -- Total debt increased to $138,462,000 for the quarter ended April 2, 2005 from $123,723,000 at the end of 2004. The first quarter borrowing activity included $12 million of funding for the Nu-Vu acquisition. Chairman and Chief Executive Officer, Selim A. Bassoul said, "First quarter sales reflected the continued success of our energy savings products and growth within the quick serve and casual dining restaurant chains, both domestically and internationally. As expected, the gross margins were impacted by higher steel prices, however, price increases we instituted during the first quarter began to offset the higher costs of material. We expect margins to improve from the first quarter as initiatives to offset higher material costs are implemented." Mr.Bassoul continued, "During the quarter we were also pleased to complete the acquisition of Nu-Vu Foodservice Systems, a leading manufacturer of proofing and baking ovens, which positions Middleby to benefit from the trend of on-premise baking within sandwich shops and other restaurant chains. We are currently taking steps to improve operating efficiencies and profitability of this business and expect to see gradual improvement throughout the year. We are excited about the opportunities to expand this business as we combine the Nu-Vu product portfolio within Middleby's sales and marketing organization. Conference Call A conference call will be held at 11:00 a.m. Eastern time on Tuesday, May 3 and can be accessed by dialing (800) 367-5339 and providing conference code 6059082. An audio 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 6059082. A transcript of the call will also be posted to the company's 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 Blodgett(R), Blodgett Combi(R), Blodgett Range(R), CTX(R), MagiKitch'n(R), Middleby Marshall(R), Nu-Vu(R), Pitco Frialator(R), Southbend(R), and Toastmaster(R). 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. THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS --------------------------------------------- (Amounts in 000's, Except Per Share Information) (Unaudited) Three Months Ended 1st Qtr, 2005 1st Qtr, 2004 ----------------- ----------------- Net sales $74,889 $62,463 Cost of sales 47,817 39,287 ----------------- ----------------- Gross profit 27,072 23,176 Selling & distribution expense 8,184 7,376 General & administrative expense 6,885 5,696 ----------------- ----------------- Income from operations 12,003 10,104 Interest expense and deferred financing amortization, net 1,786 897 Loss (gain) on acquisition financing derivatives - (2) Other expense (income), net (203) 194 ----------------- ----------------- Earnings before income taxes 10,420 9,015 Provision for income taxes 4,072 3,424 ----------------- ----------------- Net earnings $6,348 $5,591 ================= ================= Net earnings per share: Basic $0.85 $0.61 ================= ================= Diluted $0.79 $0.56 ================= ================= Weighted average number shares: Basic 7,473 9,219 ================= ================= Diluted 8,020 9,968 ================= ================= THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS ------------------------------------- (Amounts in 000's) (Unaudited) Apr. 2, 2005 Jan. 1, 2005 ---------------- ---------------- ASSETS Cash and cash equivalents $2,639 $3,803 Accounts receivable, net 32,022 26,612 Inventories, net 37,186 32,772 Prepaid taxes 6,198 9,952 Deferred tax assets 8,831 8,865 Other current assets 2,587 2,008 ---------------- ---------------- Total current assets 89,463 84,012 Property, plant and equipment, net 23,608 22,980 Goodwill 85,152 74,761 Other intangibles 26,300 26,300 Other assets 2,469 1,622 ---------------- ---------------- Total assets $226,992 $209,675 ================ ================ LIABILITIES AND SHAREHOLDERS' EQUITY Current maturities of long-term debt $11,105 $10,480 Accounts payable 16,543 11,298 Accrued expenses 40,507 51,311 ---------------- ---------------- Total current liabilities 68,155 73,089 Long-term debt 127,357 113,243 Long-term deferred tax liability 11,786 11,434 Other non-current liabilities 4,892 4,694 Shareholders' equity 14,802 7,215 ---------------- ---------------- Total liabilities and shareholders' equity $226,992 $209,675 ================ ================ CONTACT: The Middleby Corporation Darcy Bretz (Investor/Public Relations), 847-429-7756 or Timothy FitzGerald, 847-429-7744