MIDD 8-K

MIDDLEBY Corp (MIDD)

8-K 2022-08-04 For: 2022-08-04

View Original

Added on April 10, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware	001-9973	36-3352497
(State or Other Jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)		Identification No.)

1400 Toastmaster Drive, Elgin, Illinois	60120
(Address of Principal Executive Offices)	(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock		MIDD		The Nasdaq Global Select Market

		(c) Exhibits.

Exhibit No.		Description

Exhibit 99.1		The Middleby Corporation press release dated August 4, 2022.

	THE MIDDLEBY CORPORATION


Dated: August 4, 2022	By:	/s/ Bryan E. Mittelman
	Bryan E. Mittelman
	Chief Financial Officer

MIDD 8-K

The Middleby Corporation Reports Second Quarter Results

Contacts

	Commercial Foodservice		Residential Kitchen		Food Processing		Total Company
Reported Net Sales Growth	19.8	%	64.7	%	(4.7	) %	25.3	%
Acquisitions	4.0	%	56.8	%	—	%	14.4	%
Foreign Exchange Rates	(1.9	) %	(3.5	) %	(3.4	) %	(2.5	) %
Organic Net Sales Growth ^{(1) (2)}	17.7	%	11.4	%	(1.4	) %	13.3	%
(1) Organic net sales growth defined as total sales growth excluding impact of acquisitions and foreign exchange rates
(2) Totals may be impacted by rounding

THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in 000’s, Except Per Share Information) (Unaudited)
	Three Months Ended						Six Months Ended
	2nd Qtr, 2022			2nd Qtr, 2021			2nd Qtr, 2022			2nd Qtr, 2021
Net sales	$	1,013,601		$	808,773		$	2,008,277		$	1,566,831
Cost of sales		652,859			505,047			1,317,025			987,231

Gross profit		360,742			303,726			691,252			579,600

Selling, general and administrative expenses		189,486			165,711			395,557			320,668
Restructuring expenses		4,029			1,011			5,904			1,805
Loss/(gain) on sale of plant		—			287			—			(763	)
Income from operations		167,227			136,717			289,791			257,890

Interest expense and deferred financing amortization, net		20,842			14,222			38,496			30,289
Net periodic pension benefit (other than service costs & curtailment)		(10,784	)		(11,532	)		(22,300	)		(22,905	)
Other expense (income), net		5,888			(469	)		9,949			(2,160	)

Earnings before income taxes		151,281			134,496			263,646			252,666

Provision for income taxes		38,033			13,911			64,643			42,818

Net earnings	$	113,248		$	120,585		$	199,003		$	209,848

Net earnings per share:

Basic	$	2.10		$	2.18		$	3.66		$	3.80

Diluted	$	2.07		$	2.13		$	3.59		$	3.73

Weighted average number of shares

Basic		54,033			55,230			54,351			55,222

Diluted		54,654			56,673			55,509			56,320

THE MIDDLEBY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in 000’s) (Unaudited)
	Jul 2, 2022		Jan 1, 2022
ASSETS

Cash and cash equivalents	$	166,589	$	180,362
Accounts receivable, net		627,276		577,142
Inventories, net		1,008,920		837,418
Prepaid expenses and other		109,932		92,269
Prepaid taxes		22,543		19,894
Total current assets		1,935,260		1,707,085

Property, plant and equipment, net		417,688		380,980
Goodwill		2,221,120		2,243,469
Other intangibles, net		1,805,036		1,875,377
Long-term deferred tax assets		26,306		33,194
Other assets		173,963		143,493

Total assets	$	6,579,373	$	6,383,598


LIABILITIES AND STOCKHOLDERS' EQUITY

Current maturities of long-term debt	$	49,076	$	27,293
Accounts payable		323,155		304,740
Accrued expenses		604,183		582,855
Total current liabilities		976,414		914,888

Long-term debt		2,647,313		2,387,001
Long-term deferred tax liability		199,367		186,935
Accrued pension benefits		176,960		219,680
Other non-current liabilities		161,349		180,818

Stockholders' equity		2,417,970		2,494,276

Total liabilities and stockholders' equity	$	6,579,373	$	6,383,598

THE MIDDLEBY CORPORATION
NON-GAAP SEGMENT INFORMATION (UNAUDITED)
(Amounts in 000’s, Except Percentages)

	Commercial Foodservice			Residential Kitchen			Food Processing			Total Company⁽¹⁾
Three Months Ended July 2, 2022
Net sales	$	609,679		$	280,009		$	123,913		$	1,013,601
Segment Operating Income	$	137,344		$	46,077		$	18,548		$	167,227
Operating Income % of net sales		22.5	%		16.5	%		15.0	%		16.5	%

Depreciation		5,850			3,425			1,299			10,757
Amortization		13,712			1,030			1,746			16,488
Restructuring expenses		820			611			2,598			4,029
Acquisition related adjustments		(3,112	)		832			—			(2,280	)
Charitable support to Ukraine		—			—			—			798
Stock compensation		—			—			—			13,157
Segment adjusted EBITDA	$	154,614		$	51,975		$	24,191		$	210,176
Adjusted EBITDA % of net sales		25.4	%		18.6	%		19.5	%		20.7	%

Three Months Ended July 3, 2021
Net sales	$	508,778		$	169,987		$	130,008		$	808,773
Segment Operating Income	$	109,944		$	33,910		$	26,961		$	136,717
Operating Income % of net sales		21.6	%		19.9	%		20.7	%		16.9	%

Depreciation		5,993			2,738			1,337			10,167
Amortization		14,246			1,784			1,834			17,864
Restructuring expenses		490			348			173			1,011
Acquisition related adjustments		302			—			—			302
Acquisition deal costs		—			—			—			10,481
Stock compensation		—			—			—			9,329
Loss/(gain) on sale of plant		372			(85	)		—			287
Segment adjusted EBITDA	$	131,347		$	38,695		$	30,305		$	186,158
Adjusted EBITDA % of net sales		25.8	%		22.8	%		23.3	%		23.0	%

⁽¹⁾Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $20.6 million and $14.2 million for the three months ended July 2, 2022 and July 3, 2021, respectively.

THE MIDDLEBY CORPORATION NON-GAAP INFORMATION (UNAUDITED) (Amounts in 000’s, Except Percentages)
	Three Months Ended
	2nd Qtr, 2022						2nd Qtr, 2021
	$			Diluted per share			$			Diluted per share
Net earnings	$	113,248		$	2.07		$	120,585		$	2.13
Amortization ⁽¹⁾		18,279			0.33			19,443			0.34
Restructuring expenses		4,029			0.07			1,011			0.02
Acquisition related costs		(2,280	)		(0.04	)		302			0.01
Net periodic pension benefit (other than service costs & curtailment)		(10,784	)		(0.20	)		(11,532	)		(0.20	)
Loss on sale of plant		—			—			287			0.01
Charitable support to Ukraine		798			0.01			—			—
Acquisition deal costs		—			—			10,481			0.18
Discrete tax adjustments					—			(18,900	)		(0.33	)
Income tax effect of pre-tax adjustments		(2,521	)		(0.05	)		(4,898	)		(0.09	)
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings ⁽²⁾		—			0.04			—			0.04
Adjusted net earnings	$	120,769		$	2.23		$	116,779		$	2.11

Diluted weighted average number of shares		54,654						56,673
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings ⁽²⁾		(613	)					(1,430	)
Adjusted diluted weighted average number of shares		54,041						55,243

	Six Months Ended
	2nd Qtr, 2022						2nd Qtr, 2021
	$			Diluted per share			$			Diluted per share
Net earnings	$	199,003		$	3.59		$	209,848		$	3.73
Amortization ⁽¹⁾		53,649			0.97			39,738			0.71
Restructuring expenses		5,904			0.11			1,805			0.03
Acquisition related costs		11,970			0.22			737			0.01
Acquisition deal costs		—			—			12,821			0.23
Facility consolidation related expenses		—			—			993			0.02
Net periodic pension benefit (other than service costs & curtailment)		(22,300	)		(0.40	)		(22,905	)		(0.41	)
Gain on sale of plant		—			—			(763	)		(0.01	)
Charitable support to Ukraine		798			0.01			—			—
Discrete tax adjustments		—			—			(18,900	)		(0.34	)
Income tax effect of pre-tax adjustments		(12,255	)		(0.22	)		(7,944	)		(0.14	)
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings ⁽²⁾		—			0.08			—			0.07
Adjusted net earnings	$	236,769		$	4.36		$	215,430		$	3.90

Diluted weighted average number of shares		55,509						56,320
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings ⁽²⁾		(1,151	)					(1,087	)
Adjusted diluted weighted average number of shares		54,358						55,233

	Three Months Ended						Six Months Ended
	2nd Qtr, 2022			2nd Qtr, 2021			2nd Qtr, 2022			2nd Qtr, 2021
Net Cash Flows Provided By (Used In):
Operating activities	$	104,802		$	112,686		$	89,458		$	172,381
Investing activities		(83,133	)		(17,184	)		(107,259	)		(24,222	)
Financing activities		9,017			(10,446	)		17,738			(18,731	)

Free Cash Flow
Cash flow from operating activities	$	104,802		$	112,686		$	89,458		$	172,381
Less: Capital expenditures, net of sale proceeds		(17,636	)		(7,992	)		(32,133	)		(13,363	)
Free cash flow	$	87,166		$	104,694		$	57,325		$	159,018