The Middleby Corporation (NASDAQ: MIDD), a leading worldwide manufacturer of equipment for the commercial foodservice and food processing industries, today reported net sales and earnings for the fourth quarter and full year ended December 31, 2011. Net earnings for the fourth quarter were $34,559,000 or $1.87 per share on net sales of $243,760,000 as compared to the prior year fourth quarter net earnings of $20,994,000 or $1.13 per share on net sales of $207,233,000. Net earnings for the twelve months ended December 31, 2011 were $95,473,000 or $5.15 per share on net sales of $855,907,000 as compared to net earnings of $72,867,000 or $3.97 per share on net sales of $719,121,000 in the prior year.
- Net sales increased 17.6% in the fourth quarter and 19.0% for the full year of 2011 over the comparative prior year periods. Excluding the impact of acquisitions, sales increased 5.9% during the fourth quarter and 7.0% for the full year.
- Net sales at the company’s Commercial Foodservice Equipment Group increased 25.1% in the fourth quarter and 18.3% for the full year as compared to the comparative 2010 periods. During fiscal 2011, the company completed the acquisitions of Beech and Lincat. Excluding the impact of these acquisitions, sales increased 15.7% in the fourth quarter and 11.6% for the full year.
- Net sales at the company’s Food Processing Equipment Group declined 8.9% in the fourth quarter and increased 23.3% for the full year as compared to the comparative 2010 periods. During fiscal 2011, the company completed the acquisitions of Auto-Bake, Maurer-Atmos, Danfotech, Drake and Armor Inox. Excluding the impact of the acquisitions, sales decreased by 28.6% in the fourth quarter and 18.9% for the full year.
- Gross profit in the fourth quarter increased to $99.7 million from $83.1 million and the gross margin rate increased to 40.9% from 40.1%. For the full year, gross profit increased to $344.1 million from $286.7 million and the gross margin rate increased to 40.2% from 39.9%.
- Operating income increased 29.8% in the fourth quarter to $44.9 million from $34.6 million in the prior year quarter and increased 21.1% for the full year to $148.7 million from $122.8 million in the prior year.
- Non-cash expenses during the fourth quarter of 2011 amounted to 10.2 million, including $2.1 million of depreciation, $2.8 million of intangible amortization and $5.3 million of non-cash share based compensation. Non-cash expenses for the full year of 2011 amounted to $37.2 million including $6.9 million of depreciation, $12.2 million of intangible amortization and $18.1 million of non-cash stock based compensation.
- Provisions for income taxes amounted to $9.6 million at a 21.8% effective rate in comparison to $12.4 million at a 37.1% effective rate in the prior year quarter. For the full year provisions for income taxes amounted to $45.0 million at 32.0% effective rate in comparison to $41.4 million at a 36.2% effective rate in the prior year. The fourth quarter and full year tax provision reflects a lower effective rate on increased income in lower tax rate foreign jurisdictions and adjustments to tax reserves for reduced exposures.
- Operating cash flows amounted to $64.7 million during the fourth quarter and $130.4 million for the year. Operating cash flows for the full fiscal year were utilized to fund 2011 acquisitions of $177.4 million, repurchase $15.7 million of Middleby common stock, and make investments of $7.8 million for capital expenditures in fiscal 2011.
- Total debt at the end of the 2011 fourth quarter amounted to $317.3 million as compared to $214.0 million at the end of 2010. The company’s debt is financed primarily under its $600.0 million senior revolving credit facility, which matures in December 2012. The company is currently in discussion with its banking partners and expects to enter into a similarly structured facility in the second quarter of 2012.
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