This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Middleby Corporation Reports Fourth Quarter Results

Stocks in this article: MIDD

The Middleby Corporation (NASDAQ:MIDD), a leading worldwide manufacturer of restaurant and foodservice cooking equipment, today reported net sales and earnings for the fourth quarter ended January 1, 2011. Net earnings for the fourth quarter were $20,994,000 or $1.13 per share on net sales of $207,233,000 as compared to the prior year fourth quarter net earnings of $17,874,000 or $0.95 per share on net sales of $152,493,000. Net earnings for the twelve months ended January 1, 2011 were $72,867,000 or $3.97 per share on net sales of $719,121,000 as compared to net earnings of $61,156,000 or $3.29 per share on net sales of $646,629,000 in the prior year.

2010 Fourth Quarter Financial Highlights

  • The fourth quarter financial statements include the results of the recently completed acquisitions of PerfectFry, a leader in ventless frying systems for the commercial foodservice industry acquired on July 13, 2010 and Cozzini, a leading manufacturer of equipment for the food processing industry acquired on September 21, 2010.
  • Net sales increased 35.9% in the fourth quarter. Sales from acquisitions amounted to $21.2 million or 13.9% during the quarter, and largely related to the Cozzini acquisition which had a particularly strong fourth quarter due to several large orders that shipped late in the year. Excluding the impact of acquisitions, net sales increased 22.0% during the fourth quarter, including an increase of 19.2% in sales from the Commercial Foodservice Group and an increase of 40.1% in sales from the Food Processing Group. Sales growth from both segments reflects improved economic conditions from the prior year, continued growth in the international markets, and increasing business with major restaurant chain customers.
  • Gross profit increased to $83.1 million from $58.5 million and the gross margin rate increased to 40.1% from 38.3%. The gross margin rate reflects the benefit of cost reduction initiatives and increased sales volumes, offset in part by increasing material costs.
  • Operating income increased to $34.6 million from $28.3 million. Operating income included non-recurring expenses of $1.8 million associated with plant consolidation initiatives related to the acquisitions of Doyon and PerfectFry, which impacted earnings by $0.06 per share.
  • Non-cash expenses recorded during the fourth quarter included $5.4 million of depreciation and amortization in the current quarter as compared to $4.0 million in the prior year fourth quarter. The increase in depreciation and amortization included $1.8 million associated with the recent acquisition of Cozzini. Non-cash share based compensation expenses increased to $3.6 million in the 2010 fourth quarter as compared to $2.5 million in the 2009 fourth quarter.
  • Net interest expense and deferred financing costs amounted to $1.7 million in the fourth quarter as compared to $2.8 million in the prior year fourth quarter. Reduced interest expense reflects the benefit of lower interest rates and lower average debt balances.
  • Provisions for income taxes increased to $12.4 million at a 37% effective rate in comparison to $8.1 million at a 31% effective rate in the prior year quarter. The prior year fourth quarter provision included a one-time tax benefit of $1.2 million or $0.06 per share.
  • Operating cash flows amounted to $32.0 million during the fourth quarter and $98.0 million for the year. Operating cash flows for the year were utilized to complete acquisitions of $25.7 million, repurchase of $9.0 million of Middleby common stock, and fund $3.2 million in capital expenditures in fiscal 2010.
  • Total debt at the end of the 2010 fourth quarter amounted to $214.0 million as compared to $243.6 million at the end of the third quarter 2010. Debt balances continued to decline as cash flows from operating activities were utilized to repay the balance under the company’s senior revolving credit facility. That facility provides for $497.8 million of total borrowing availability and matures in December 2012.
  • Net earnings per share in the 2010 fourth quarter increased 18.9% to $1.13 per share as compared to $0.95 per share in the 2009 fourth quarter.

Mr. Bassoul commented, “In the fourth quarter, at our Commercial Foodservice Group, we realized revenue gains resulting from continuing improvement in the industry conditions and increased market penetration. We are pleased with the results realized from investments we have made both in our international selling organization and our national accounts sales team. We believe we are well positioned to capture increasing opportunities in the emerging markets as well as with our chain customers as they look to improve their kitchen operations.”

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs