- Net sales increased 23.3% in the second quarter as compared to the prior year second quarter. Sales from acquisitions amounted to $38.8 million or 18.4% during the quarter. Excluding the impact of acquisitions, sales increased 4.9% during the second quarter.
- Net sales at the company’s Commercial Foodservice Equipment Group increased 10.2% in the second quarter as compared to the prior year second quarter. Excluding the impact of the acquisitions completed in the second quarter of 2011, net sales of Commercial Foodservice Equipment increased by 5.4%.
- Net sales at the company’s Food Processing Equipment Group increased 94.8% in the second quarter as compared to the prior year second quarter. During fiscal 2011, the company completed the acquisitions of Auto-Bake, Maurer-Atmos, Danfotech, Drake and Armor Inox. During fiscal 2012, the company completed the acquisition of Baker Thermal Solutions (formerly Turkington). Excluding the impact of these acquisitions, sales increased by 2.1% in the second quarter.
- Gross profit in the second quarter increased to $101.8 million from $85.3 million and the gross margin rate decreased from 40.5% to 39.2%. The decline in the gross margin rate reflects a higher mix of sales from the Food Processing Equipment Group with lower gross margins, due in part to recent acquisitions.
- Operating income increased 28.7% in the second quarter to $45.3 million from $35.2 million in the prior year quarter.
- Non-cash expenses during the second quarter of 2012 amounted to $9.5 million, including $2.2 million of depreciation, $4.1 million of intangible amortization and $3.2 million of non-cash share based compensation.
- Provisions for income taxes increased to $12.7 million at a 29.0% effective rate in comparison to $11.9 million at a 37.8% effective rate in the prior year quarter. The second quarter tax provision reflects the favorable impact of increased foreign earnings at lower tax rates and a non-recurring benefit from reduced state tax exposures.
- Total debt at the end of the 2012 second quarter amounted to $274.2 million as compared to $317.3 million at the end of 2011. The reduction in debt is net of the funding for acquisition activities of $10.6 million during the first six months of 2012.
- On August 7, 2012, subsequent to the end of the second quarter, the company entered into a new five-year $1.0 billion multi-currency senior revolving credit agreement, with the potential under certain circumstances to increase to $1.350 billion. This facility replaces the company’s pre-existing $600 million senior revolving credit facility, which had an original maturity of December 2012. The new facility bears an interest rate of LIBOR plus a margin of 1.5%, which is adjusted quarterly based upon the company’s leverage ratio. The new facility provides for availability to fund acquisitions and share repurchases so long as the company maintains certain financial ratios.
The Middleby Corporation Reports Second Quarter Results And Announces New Credit Facility
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