- Net sales increased 17.8% in the third quarter as compared to the prior year third quarter. Sales from recent acquisitions amounted to $17.6 million or 8.0% during the quarter. Excluding the impact of acquisitions, sales increased 9.8% during the third quarter.
- Net sales at the company’s Commercial Foodservice Equipment Group increased 5.0% in the third quarter as compared to the prior year third quarter.
- Net sales at the company’s Food Processing Equipment Group increased 99.7% in the third quarter as compared to the prior year third quarter. During fiscal 2011, the company completed the acquisitions of Auto-Bake, Maurer-Atmos, Drake and Armor Inox. During fiscal 2012, the company completed the acquisitions of Baker and Stewart. Excluding the impact of these acquisitions, sales increased by 40.2% in the third quarter.
- Gross profit in the third quarter increased to $100.4 million from $87.3 million and the gross margin rate decreased from 39.9% to 39.0%. The decline in the gross margin rate reflects a higher mix of sales from the Food Processing Equipment Group and lower margins of recent acquisitions.
- Operating income increased 27.4% in the third quarter to $47.4 million from $37.2 million in the prior year quarter.
- Non-cash expenses during the third quarter of 2012 amounted to $9.3 million, including $2.1 million of depreciation, $4.1 million of intangible amortization and $3.1 million of non-cash share based compensation.
- Provisions for income taxes increased to $11.9 million at a 28.6% effective rate in comparison to $11.8 million at a 33.5% effective rate in the prior year quarter. The third quarter tax provision reflects reduced state tax exposures, a lower effective rate on increased income in lower tax rate foreign jurisdictions and increased deductions related to U.S. manufacturing activities.
- Total debt at the end of the 2012 third quarter amounted to $269.3 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 $38.3 million during the first nine months of 2012.
- On August 7, 2012, the company entered into a new five-year $1.0 billion multi-currency senior revolving credit agreement. This facility replaced 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 Third Quarter Results
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