- Net sales of $1,014 million
- Diluted earnings per share of $2.07 and adjusted net
earnings per share of $2.88
- Operating income of $170 million and 16.8% of net
sales
- Record Adjusted EBITDA of $251 million and organic adjusted
EBITDA margin of 24.8%
- Record operating cash flows of $687 million for the full
year and $240 million for the quarter
- Net leverage reduced to 2.0x
- Repurchased $16.4 million of Middleby common shares in the
fourth quarter
- Completed the acquisitions of Emery Thompson, JC Ford and
Gorreri
The Middleby Corporation (NASDAQ: MIDD), a leading worldwide
manufacturer of equipment for the commercial foodservice, food
processing, and residential kitchen industries, today reported net
earnings for the fourth quarter of 2024.
“We closed 2024 by delivering our strongest margins of the year.
Exceptional profitability achievements by our Food Processing and
Commercial Foodservice platforms, and a strong result in the
residential segment given the depressed market conditions, led us
to record cash flow for the year. These results are being delivered
while also making critical investments across all our businesses
that are uniquely positioning us for the future.
“We have continued to execute on our strategic initiatives
focused on driving sustainable long-term organic growth, with
recent launches of transformative product innovations and
investments in differentiated go-to market capabilities. While we
are currently facing challenging industry macro-conditions, we
expect to see growth across all three of our foodservice segments
as we progress through 2025. Our investments will continue to
strengthen our leadership position across our businesses,
positioning us very favorably as we anticipate moving into a
multi-year recovery,” said Tim FitzGerald, CEO of the Middleby
Corporation.
2024 Fourth Quarter Financial
Results
- Net sales increased 0.5% in the fourth quarter over the
comparative prior year period. Excluding the impacts of
acquisitions and foreign exchange rates, sales decreased 1.3% in
the fourth quarter over the comparative prior year period.
- A reconciliation of organic net sales (a non-GAAP measure) by
segment is as follows:
Commercial Foodservice
Residential Kitchen
Food Processing
Total Company
Reported Net Sales Growth
(2.9) %
(2.1) %
14.4 %
0.5 %
Acquisitions
0.2 %
— %
10.2 %
2.1 %
Foreign Exchange Rates
(0.3) %
0.4 %
(0.5) %
(0.2) %
Organic Net Sales Growth (1)
(2)
(2.8) %
(2.4) %
4.7 %
(1.3) %
(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
- Operating income during the fourth quarter included $38.6
million of impairment charges as compared to $78.1 million of
impairment charges in the prior year period primarily associated
with tradenames within the Residential Kitchen Equipment
Group.
- Adjusted EBITDA (a non-GAAP measure) was $251.2 million in the
fourth quarter compared to $235.2 million in the prior year. A
reconciliation of organic adjusted EBITDA (a non-GAAP measure) by
segment is as follows:
Commercial Foodservice
Residential Kitchen
Food Processing
Total Company
Adjusted EBITDA
28.1 %
13.1 %
29.6 %
24.8 %
Acquisitions
— %
— %
(0.7) %
— %
Foreign Exchange Rates
0.1 %
(0.1) %
(0.1) %
— %
Organic Adjusted EBITDA (1) (2)
28.0 %
13.2 %
30.3 %
24.8 %
(1) Organic Adjusted EBITDA defined as
Adjusted EBITDA excluding impact of acquisitions and foreign
exchange rates.
(2) Totals may be impacted by rounding
- Operating cash flows during the fourth quarter amounted to
$239.7 million in comparison to $255.7 million in the prior year
period. Operating cash flows for the twelve months period ended
December 28, 2024 amounted to $686.8 million in comparison to
$628.8 million in the prior year period. During the fourth quarter
the company repurchased $16.4 million of Middleby common shares and
approximately $20.0 million to date in the first quarter of 2025.
The total leverage ratio per our credit agreements was 2.0x. The
trailing twelve month bank agreement pro-forma EBITDA was $893.8
million.
- Net debt, defined as debt excluding the unamortized discount
associated with the Convertible Notes less cash, at the end of the
2024 fiscal fourth quarter amounted to $1.7 billion as compared to
$2.2 billion at the end of fiscal 2023. Our borrowing availability
at the end of the fourth quarter was approximately $3.1
billion.
“We continue to scale our Food Processing platform, completing
two acquisitions in the fourth quarter. We have targeted the snack
food category as an attractive growing market. The acquisition of
JC Ford complements our existing product offerings, significantly
strengthening our presence in this faster-growing category of
tortilla production equipment systems. The company has developed
innovative solutions that have been quickly accepted as the
industry standard, allowing customers to automate production lines
with a low cost of ownership.
“We also added Gorreri Food Processing Technology, an Italian
leading manufacturer of equipment for the baked goods industry,
including cakes, pies, muffins, tarts and other desert line
solutions. Their premium-quality advanced industrial and
semi-industrial baked goods solutions further expands the markets
our food processing group serves,” added Mr. FitzGerald.
Conference Call
The company has scheduled a conference call to discuss the
fourth quarter results at 8 a.m. Eastern/7 a.m. Central Time on
February 25th. The conference call is accessible through the
Investor Relations section of the company website at
www.middleby.com. If website access is not available, attendees can
join the conference by dialing (844) 481-3012, or (412) 317-1878
for international access, and ask to join the Middleby conference
call. The conference call will be available for replay from the
company’s website.
Statements in this press release or otherwise attributable to
the company regarding the company's business which are not
historical facts are forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company cautions investors that such
statements are estimates of future performance and are highly
dependent upon a variety of important factors that could cause
actual results to differ materially from such statements. Such
factors include variability in financing costs; quarterly
variations in operating results; dependence on key customers;
international exposure; foreign exchange and political risks
affecting international sales; changing market conditions; the
impact of competitive products and pricing; the timely development
and market acceptance of the company's products; the availability
and cost of raw materials; and other risks detailed herein and from
time-to-time in the company's SEC filings. Any forward-looking
statement speaks only as of the date hereof, and the company does
not undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law.
The Middleby Corporation is a global leader in the foodservice
industry. The company develops and manufactures a broad line of
solutions used in commercial foodservice, food processing, and
residential kitchens. Supporting the company’s pursuit of the most
sophisticated innovation, state-of-the-art Middleby Innovation
Kitchens and Residential Showrooms showcase and demonstrate the
most advanced Middleby solutions. In 2022 Middleby was named a
World’s Best Employer by Forbes and is a proud philanthropic
partner to organizations addressing food insecurity.
THE MIDDLEBY
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
(Amounts in 000’s, Except Per
Share Information)
(Unaudited)
Three Months Ended
Twelve Months Ended
4th Qtr, 2024
4th Qtr, 2023
4th Qtr, 2024
4th Qtr, 2023
Net sales
$
1,013,881
$
1,008,576
$
3,875,162
$
4,036,605
Cost of sales
624,946
621,807
2,404,793
2,502,543
Gross profit
388,935
386,769
1,470,369
1,534,062
Selling, general and administrative
expenses
178,394
191,585
762,502
806,946
Restructuring expenses
3,135
2,436
14,181
14,134
Gain on sale of plant
(1,139
)
—
(1,139
)
—
Impairments
38,637
78,114
38,637
78,114
Income from operations
169,908
114,634
656,188
634,868
Interest expense and deferred financing
amortization, net
19,990
28,277
92,229
120,348
Net periodic pension benefit (other than
service costs & curtailment)
(3,653
)
(2,142
)
(14,897
)
(9,071
)
Other expense, net
541
1,571
1,536
4,213
Earnings before income taxes
153,030
86,928
577,320
519,378
Provision for income taxes
40,726
10,635
148,887
118,496
Net earnings
$
112,304
$
76,293
$
428,433
$
400,882
Net earnings per share:
Basic
$
2.09
$
1.42
$
7.97
$
7.48
Diluted
$
2.07
$
1.42
$
7.90
$
7.41
Weighted average number of shares
Basic
53,764
53,601
53,738
53,577
Diluted
54,334
53,768
54,209
54,086
THE MIDDLEBY
CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in 000’s)
(Unaudited)
Dec 28, 2024
Dec 30, 2023
ASSETS
Cash and cash equivalents
$
689,533
$
247,496
Accounts receivable, net
643,355
644,576
Inventories, net
841,567
935,867
Prepaid expenses and other
131,566
112,690
Prepaid taxes
24,022
25,230
Total current assets
2,330,043
1,965,859
Property, plant and equipment, net
525,965
510,898
Goodwill
2,518,222
2,486,310
Other intangibles, net
1,611,037
1,693,076
Long-term deferred tax assets
6,281
7,945
Pension benefits assets
91,207
38,535
Other assets
200,396
204,069
Total assets
$
7,283,151
$
6,906,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt
$
43,949
$
44,822
Accounts payable
208,908
227,080
Accrued expenses
576,465
579,192
Total current liabilities
829,322
851,094
Long-term debt
2,351,118
2,380,373
Long-term deferred tax liability
252,062
216,143
Accrued pension benefits
9,573
12,128
Other non-current liabilities
202,645
197,065
Stockholders' equity
3,638,431
3,249,889
Total liabilities and stockholders'
equity
$
7,283,151
$
6,906,692
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 December 28,
2024
Net sales
$
609,446
$
185,042
$
219,393
$
1,013,881
Segment Operating Income
$
145,313
$
(12,654
)
$
58,071
$
169,908
Operating Income % of net sales
23.8
%
(6.8
)%
26.5
%
16.8
%
Depreciation
7,577
4,167
2,576
14,781
Amortization
11,331
1,799
2,640
15,770
Restructuring expenses
931
1,946
258
3,135
Acquisition related adjustments
727
327
2,578
3,632
Facility consolidation related
expenses
—
402
—
402
Charitable support to Ukraine
—
—
—
12
Stock compensation
—
—
—
6,012
Gain on sale of plant
—
—
(1,139
)
(1,139
)
Impairments
5,197
28,162
—
38,637
Segment adjusted EBITDA (2)
$
171,076
$
24,149
$
64,984
$
251,150
Adjusted EBITDA % of net sales
28.1
%
13.1
%
29.6
%
24.8
%
Three Months Ended December 30,
2023
Net sales
$
627,864
$
189,012
$
191,700
$
1,008,576
Segment Operating Income
$
164,111
$
(63,647
)
$
46,986
$
114,634
Operating Income % of net sales
26.1
%
(33.7
)%
24.5
%
11.4
%
Depreciation
7,189
3,567
2,039
13,328
Amortization
13,823
2,284
2,325
18,432
Restructuring expenses
515
1,218
703
2,436
Acquisition related adjustments
(8,345
)
31
812
(7,502
)
Charitable support to Ukraine
—
—
—
8
Stock compensation
—
—
—
15,742
Impairments
1,986
76,128
—
78,114
Segment adjusted EBITDA
$
179,279
$
19,581
$
52,865
$
235,192
Adjusted EBITDA % of net sales
28.6
%
10.4
%
27.6
%
23.3
%
(1) Includes corporate and other general
company expenses, which impact Segment Adjusted EBITDA, and
amounted to $9.1 million and $16.5 million for the three months
ended December 28, 2024 and December 30, 2023, respectively.
(2) Foreign exchange rates unfavorably
impacted Segment Adjusted EBITDA by approximately $0.7 million for
the three months ended December 28, 2024.
THE MIDDLEBY
CORPORATION
NON-GAAP SEGMENT INFORMATION
(UNAUDITED)
(Amounts in 000’s, Except
Percentages)
Commercial Foodservice
Residential Kitchen
Food Processing
Total Company (1)
Twelve Months Ended December 28,
2024
Net sales
$
2,419,236
$
724,923
$
731,003
$
3,875,162
Segment Operating Income
$
574,772
$
15,185
$
168,405
$
656,188
Operating Income % of net sales
23.8
%
2.1
%
23.0
%
16.9
%
Depreciation
28,621
15,847
9,386
55,609
Amortization
49,133
7,214
8,091
64,438
Restructuring expenses
5,780
5,936
2,465
14,181
Acquisition related adjustments
455
326
55
836
Facility consolidation related
expenses
—
920
—
920
Charitable support to Ukraine
—
—
—
474
Stock compensation
—
—
—
36,151
Gain on sale of plant
—
—
(1,139
)
(1,139
)
Impairments
5,197
28,162
—
38,637
Segment adjusted EBITDA (2)
$
663,958
$
73,590
$
187,263
$
866,295
Adjusted EBITDA % of net sales
27.4
%
10.2
%
25.6
%
22.4
%
Twelve Months Ended December 30,
2023
Net sales
$
2,521,471
$
794,516
$
720,618
$
4,036,605
Segment Operating Income
$
616,224
$
(12,450
)
$
158,469
$
634,868
Operating Income % of net sales
24.4
%
(1.6
)%
22.0
%
15.7
%
Depreciation
27,323
13,637
7,949
50,416
Amortization
56,728
9,052
9,271
75,051
Restructuring expenses
3,173
9,402
1,559
14,134
Acquisition related adjustments
(6,014
)
76
2,087
(3,851
)
Charitable support to Ukraine
—
—
—
615
Stock compensation
—
—
—
51,047
Impairments
1,986
76,128
—
78,114
Segment adjusted EBITDA
$
699,420
$
95,845
$
179,335
$
900,394
Adjusted EBITDA % of net sales
27.7
%
12.1
%
24.9
%
22.3
%
(1) Includes corporate and other general
company expenses, which impact Segment Adjusted EBITDA, and
amounted to $58.5 million and $74.2 million for the twelve months
ended December 28, 2024 and December 30, 2023, respectively.
(2) Foreign exchange rates unfavorably
impacted Segment Adjusted EBITDA by $0.1 million for the twelve
months ended December 28, 2024.
THE MIDDLEBY
CORPORATION
NON-GAAP
INFORMATION (UNAUDITED)
(Amounts in 000’s, Except
Percentages)
Three Months Ended
4th Qtr, 2024
4th Qtr, 2023
$
Diluted per share
$
Diluted per share
Net earnings
$
112,304
$
2.07
$
76,293
$
1.42
Amortization (1)
17,557
0.32
20,218
0.38
Restructuring expenses
3,135
0.06
2,436
0.05
Acquisition related adjustments
3,632
0.07
(7,502
)
(0.14
)
Facility consolidation related
expenses
402
0.01
—
—
Net periodic pension benefit (other than
service costs & curtailment)
(3,653
)
(0.07
)
(2,142
)
(0.04
)
Charitable support to Ukraine
12
—
8
—
Impairments
38,637
0.71
78,114
1.45
Gain on sale of plant
(1,139
)
(0.02
)
—
—
Income tax effect of pre-tax
adjustments
(15,583
)
(0.29
)
(24,665
)
(0.46
)
Adjustment for shares excluded due to
anti-dilution effect on GAAP net earnings (2)
—
0.02
—
(0.01
)
Adjusted net earnings
$
155,304
$
2.88
$
142,760
$
2.65
Diluted weighted average number of
shares
54,334
53,768
Adjustment for shares excluded due to
anti-dilution effect on GAAP net earnings (2)
(394
)
73
Adjusted diluted weighted average
number of shares
53,940
53,841
Twelve Months Ended
4th Qtr, 2024
4th Qtr, 2023
$
Diluted per share
$
Diluted per share
Net earnings
$
428,433
$
7.90
$
400,882
$
7.41
Amortization (1)
71,565
1.32
82,188
1.52
Restructuring expenses
14,181
0.26
14,134
0.26
Acquisition related adjustments
836
0.02
(3,851
)
(0.07
)
Facility consolidation related
expenses
920
0.02
—
—
Net periodic pension benefit (other than
service costs & curtailment)
(14,897
)
(0.27
)
(9,071
)
(0.17
)
Charitable support to Ukraine
474
0.01
615
0.01
Impairments
38,637
0.71
78,114
1.44
Gain on sale of plant
(1,139
)
(0.02
)
—
—
Income tax effect of pre-tax
adjustments
(28,529
)
(0.53
)
(42,414
)
(0.78
)
Adjustment for shares excluded due to
anti-dilution effect on GAAP net earnings (2)
—
0.07
—
0.08
Adjusted net earnings
$
510,481
$
9.49
$
520,597
$
9.70
Diluted weighted average number of
shares
54,209
54,086
Adjustment for shares excluded due to
anti-dilution effect on GAAP net earnings (2)
(418
)
(442
)
Adjusted diluted weighted average
number of shares
53,791
53,644
(1) Includes amortization of deferred financing costs and
convertible notes issuance costs.
(2) Adjusted diluted weighted average number of shares was
calculated based on excluding the dilutive effect of shares to be
issued upon conversion of the notes to satisfy the amount in excess
of the principal since the company's capped call offsets the
dilutive impact of the shares underlying the convertible notes. The
calculation of adjusted diluted earnings per share excludes the
principal portion of the convertible notes as this will always be
settled in cash.
Three Months Ended
Twelve Months Ended
4th Qtr, 2024
4th Qtr, 2023
4th Qtr, 2024
4th Qtr, 2023
Net Cash Flows Provided By (Used
In):
Operating activities
$
239,734
$
255,687
$
686,816
$
628,790
Investing activities
(114,536
)
(16,518
)
(158,535
)
(155,742
)
Financing activities
(27,979
)
(165,171
)
(73,768
)
(390,939
)
Free Cash Flow
Cash flow from operating activities
$
239,734
$
255,687
$
686,816
$
628,790
Less: Capital expenditures, net sale of
proceeds
(10,634
)
(15,534
)
(46,803
)
(85,179
)
Free cash flow
$
229,100
$
240,153
$
640,013
$
543,611
USE OF NON-GAAP FINANCIAL MEASURES
The company supplements its consolidated financial statements
presented on a GAAP basis with this non-GAAP financial information
to provide investors with greater insight, increase transparency
and allow for a more comprehensive understanding of the information
used by management in its financial and operational
decision-making. The non-GAAP financial measures disclosed by the
company should not be considered a substitute for, or superior to,
financial measures prepared in accordance with GAAP, and the
financial results prepared in accordance with GAAP and
reconciliations from these results should be carefully evaluated.
In addition, the non-GAAP financial measures included in this press
release do not have standard meanings and may vary from similarly
titled non-GAAP financial measures used by other companies.
The company believes that organic net sales growth, non-GAAP
adjusted segment EBITDA, adjusted net earnings and adjusted diluted
per share measures are useful as supplements to its GAAP results of
operations to evaluate certain aspects of its operations and
financial performance, and its management team primarily focuses on
non-GAAP items in evaluating performance for business planning
purposes. The company also believes that these measures assist it
with comparing its performance between various reporting periods on
a consistent basis, as these measures remove from operating results
the impact of items that, in its opinion, do not reflect its core
operating performance including, for example, intangibles
amortization expense, impairment charges, restructuring expenses,
and other charges which management considers to be outside core
operating results.
The company believes that free cash flow is an important measure
of operating performance because it provides management and
investors a measure of cash generated from operations that is
available for mandatory payment obligations and investment
opportunities, such as funding acquisitions, repaying debt and
repurchasing our common stock.
The company believes that its presentation of these non-GAAP
financial measures is useful because it provides investors and
securities analysts with the same information that Middleby uses
internally for purposes of assessing its core operating
performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225612081/en/
John Joyner, VP of Investor Relations, jjoyner@middleby.com
Grafico Azioni Middleby (NASDAQ:MIDD)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Middleby (NASDAQ:MIDD)
Storico
Da Feb 2024 a Feb 2025