|
附件99.1
|
ELGIN, Ill.--(BUSINESS WIRE)--November 9, 2022--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 third quarter of 2022.
“We continue to execute on our strategic and operating initiatives, while realizing growth in sales and profitability. We reported record third quarter sales and EBITDA, with margins ahead of pre-covid levels despite significant continued inflationary effects impacting the quarter,” said Tim FitzGerald, CEO of The Middleby Corporation.
2022 Third Quarter Financial Results
|
|
Commercial Foodservice |
|
Residential Kitchen |
|
Food Processing |
|
Total Company |
|
Reported Net Sales Growth |
21.9 % |
|
14.3 % |
|
31.6 % |
|
21.5 % |
|
Acquisitions |
7.4 % |
|
17.7 % |
|
14.7 % |
|
10.9 % |
|
Foreign Exchange Rates |
(2.5)% |
|
(5.7)% |
|
(4.8)% |
|
(3.6)% |
|
Organic Net Sales Growth (1) (2) |
17.0 % |
|
2.3 % |
|
21.7 % |
|
14.2 % |
|
(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 |
|||||||
|
|
Commercial Foodservice |
|
Residential Kitchen |
|
Food Processing |
|
Total Company |
|
Adjusted EBITDA |
26.7 % |
|
15.8 % |
|
22.2 % |
|
21.4 % |
|
Acquisitions |
0.1 % |
|
(4.9)% |
|
(1.5)% |
|
(1.1)% |
|
Foreign Exchange Rates |
— % |
|
(0.1)% |
|
(0.3)% |
|
(0.1)% |
|
Organic Adjusted EBITDA (1) (2) |
26.5 % |
|
20.6 % |
|
23.9 % |
|
22.6 % |
|
(1) Organic Adjusted EBITDA defined as Adjusted EBITDA excluding impact of acquisitions and foreign exchange rates. |
|||||||
|
(2) Totals may be impacted by rounding |
|||||||
“The demand outlook for our products at both our commercial foodservice and food processing segments remains strong. We are engaged with customers on our latest innovations offering solutions to address labor, energy, food costs and speed. We have made significant investments in technology and automation throughout the pandemic positioning us better than ever to support the challenges facing our customers today.”
“The residential housing market has become significantly more challenged with the impact of interest rate hikes and inflationary effects that has slowed consumer spend on residential kitchen equipment. While there is significant uncertainty as we move into the next year, our order backlog remains ahead of pre-covid levels. We are confident in our ability to maintain industry-leading profitability levels even in challenging market conditions. We expect investments made over the past several years in our award-winning showrooms, industry-leading culinary teams, and our newly developed designer services programs will increase market penetration of our exciting portfolio of industry leading brands and products,” concluded Mr. FitzGerald.
Conference Call
The company has scheduled a conference call to discuss the third quarter results at 11 a.m. Eastern/10 a.m. Central Time on November 9th. 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 (833) 630-1956 or (412) 317-1837 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, the state-of-the-art Middleby Innovation Kitchens showcases and demonstrates 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 |
|
Nine Months Ended |
||||||||||||
|
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
||||||||
|
Net sales |
$ |
992,871 |
|
|
$ |
817,545 |
|
|
$ |
3,001,148 |
|
|
$ |
2,384,376 |
|
|
Cost of sales |
|
627,639 |
|
|
|
517,918 |
|
|
|
1,944,664 |
|
|
|
1,505,149 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
365,232 |
|
|
|
299,627 |
|
|
|
1,056,484 |
|
|
|
879,227 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Selling, general and administrative expenses |
|
201,200 |
|
|
|
175,354 |
|
|
|
596,757 |
|
|
|
496,022 |
|
|
Restructuring expenses |
|
2,327 |
|
|
|
791 |
|
|
|
8,231 |
|
|
|
2,596 |
|
|
Merger termination fee |
|
— |
|
|
|
(110,000 |
) |
|
|
— |
|
|
|
(110,000 |
) |
|
Gain on sale of plant |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(763 |
) |
|
Income from operations |
|
161,705 |
|
|
|
233,482 |
|
|
|
451,496 |
|
|
|
491,372 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest expense and deferred financing amortization, net |
|
24,067 |
|
|
|
13,192 |
|
|
|
62,563 |
|
|
|
43,481 |
|
|
Net periodic pension benefit (other than service costs & curtailment) |
|
(9,944 |
) |
|
|
(11,363 |
) |
|
|
(32,244 |
) |
|
|
(34,268 |
) |
|
Other expense (income), net |
|
8,529 |
|
|
|
794 |
|
|
|
18,478 |
|
|
|
(1,366 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings before income taxes |
|
139,053 |
|
|
|
230,859 |
|
|
|
402,699 |
|
|
|
483,525 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Provision for income taxes |
|
34,684 |
|
|
|
54,893 |
|
|
|
99,327 |
|
|
|
97,711 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net earnings |
$ |
104,369 |
|
|
$ |
175,966 |
|
|
$ |
303,372 |
|
|
$ |
385,814 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net earnings per share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
1.94 |
|
|
$ |
3.19 |
|
|
$ |
5.60 |
|
|
$ |
6.99 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted |
$ |
1.92 |
|
|
$ |
3.09 |
|
|
$ |
5.50 |
|
|
$ |
6.83 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of shares |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
53,867 |
|
|
|
55,232 |
|
|
|
54,190 |
|
|
|
55,225 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted |
|
54,384 |
|
|
|
56,939 |
|
|
|
55,134 |
|
|
|
56,526 |
|
|
THE MIDDLEBY CORPORATION |
|||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
(Amounts in 000’s) |
|||||
|
(Unaudited) |
|||||
|
|
Oct 1, 2022 |
|
Jan 1, 2022 |
||
|
ASSETS |
|
|
|
||
|
|
|
|
|
||
|
Cash and cash equivalents |
$ |
144,918 |
|
$ |
180,362 |
|
Accounts receivable, net |
|
593,514 |
|
|
577,142 |
|
Inventories, net |
|
1,062,634 |
|
|
837,418 |
|
Prepaid expenses and other |
|
121,271 |
|
|
92,269 |
|
Prepaid taxes |
|
28,201 |
|
|
19,894 |
|
Total current assets |
|
1,950,538 |
|
|
1,707,085 |
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
423,947 |
|
|
380,980 |
|
Goodwill |
|
2,287,420 |
|
|
2,243,469 |
|
Other intangibles, net |
|
1,781,801 |
|
|
1,875,377 |
|
Long-term deferred tax assets |
|
22,340 |
|
|
33,194 |
|
Other assets |
|
205,815 |
|
|
143,493 |
|
|
|
|
|
||
|
Total assets |
$ |
6,671,861 |
|
$ |
6,383,598 |
|
|
|
|
|
||
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||
|
|
|
|
|
||
|
Current maturities of long-term debt |
$ |
44,664 |
|
$ |
27,293 |
|
Accounts payable |
|
261,169 |
|
|
304,740 |
|
Accrued expenses |
|
631,945 |
|
|
582,855 |
|
Total current liabilities |
|
937,778 |
|
|
914,888 |
|
|
|
|
|
||
|
Long-term debt |
|
2,693,325 |
|
|
2,387,001 |
|
Long-term deferred tax liability |
|
220,400 |
|
|
186,935 |
|
Accrued pension benefits |
|
154,256 |
|
|
219,680 |
|
Other non-current liabilities |
|
167,559 |
|
|
180,818 |
|
|
|
|
|
||
|
Stockholders' equity |
|
2,498,543 |
|
|
2,494,276 |
|
|
|
|
|
||
|
Total liabilities and stockholders' equity |
$ |
6,671,861 |
|
$ |
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 October 1, 2022 |
|
|
|
|
|
|
|
||||||||
|
Net sales |
$ |
623,662 |
|
|
$ |
220,965 |
|
|
$ |
148,244 |
|
|
$ |
992,871 |
|
|
Segment Operating Income |
$ |
143,678 |
|
|
$ |
29,788 |
|
|
$ |
26,982 |
|
|
$ |
161,705 |
|
|
Operating Income % of net sales |
|
23.0 |
% |
|
|
13.5 |
% |
|
|
18.2 |
% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation |
|
5,855 |
|
|
|
1,861 |
|
|
|
1,558 |
|
|
|
9,479 |
|
|
Amortization |
|
14,283 |
|
|
|
1,289 |
|
|
|
4,311 |
|
|
|
19,883 |
|
|
Restructuring expenses |
|
663 |
|
|
|
1,894 |
|
|
|
(230 |
) |
|
|
2,327 |
|
|
Acquisition related adjustments |
|
1,836 |
|
|
|
— |
|
|
|
303 |
|
|
|
3,189 |
|
|
Stock compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,761 |
|
|
Segment adjusted EBITDA |
$ |
166,315 |
|
|
$ |
34,832 |
|
|
$ |
32,924 |
|
|
$ |
212,344 |
|
|
Adjusted EBITDA % of net sales |
|
26.7 |
% |
|
|
15.8 |
% |
|
|
22.2 |
% |
|
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended October 2, 2021 |
|
|
|
|
|
|
|
||||||||
|
Net sales |
$ |
511,480 |
|
|
$ |
193,395 |
|
|
$ |
112,670 |
|
|
$ |
817,545 |
|
|
Segment Operating Income |
$ |
105,529 |
|
|
$ |
31,322 |
|
|
$ |
21,425 |
|
|
$ |
233,482 |
|
|
Operating Income % of net sales |
|
20.6 |
% |
|
|
16.2 |
% |
|
|
19.0 |
% |
|
|
28.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation |
|
5,793 |
|
|
|
3,608 |
|
|
|
1,353 |
|
|
|
10,876 |
|
|
Amortization |
|
12,822 |
|
|
|
3,589 |
|
|
|
1,773 |
|
|
|
18,184 |
|
|
Restructuring expenses |
|
473 |
|
|
|
278 |
|
|
|
40 |
|
|
|
791 |
|
|
Acquisition related adjustments |
|
66 |
|
|
|
1,676 |
|
|
|
— |
|
|
|
1,742 |
|
|
Acquisition deal costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(103,106 |
) |
|
Stock compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,197 |
|
|
Segment adjusted EBITDA |
$ |
124,683 |
|
|
$ |
40,473 |
|
|
$ |
24,591 |
|
|
$ |
172,166 |
|
|
Adjusted EBITDA % of net sales |
|
24.4 |
% |
|
|
20.9 |
% |
|
|
21.8 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $21.7 million and $17.6 million for the three months ended October 1, 2022 and October 2, 2021, respectively.
|
|||||||||||||||
|
THE MIDDLEBY CORPORATION |
|||||||||||||||
|
NON-GAAP SEGMENT INFORMATION (UNAUDITED) |
|||||||||||||||
|
(Amounts in 000’s, Except Percentages) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Commercial Foodservice |
|
Residential Kitchen |
|
Food Processing |
|
Total Company (1) |
||||||||
|
Nine Months Ended October 1, 2022 |
|
|
|
|
|
|
|
||||||||
|
Net sales |
$ |
1,776,994 |
|
|
$ |
832,054 |
|
|
$ |
392,100 |
|
|
$ |
3,001,148 |
|
|
Segment Operating Income |
$ |
390,740 |
|
|
$ |
100,811 |
|
|
$ |
65,642 |
|
|
$ |
451,496 |
|
|
Operating Income % of net sales |
|
22.0 |
% |
|
|
12.1 |
% |
|
|
16.7 |
% |
|
|
15.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation |
|
17,577 |
|
|
|
9,271 |
|
|
|
4,182 |
|
|
|
31,608 |
|
|
Amortization |
|
41,644 |
|
|
|
20,448 |
|
|
|
7,844 |
|
|
|
69,936 |
|
|
Restructuring expenses |
|
2,934 |
|
|
|
2,892 |
|
|
|
2,405 |
|
|
|
8,231 |
|
|
Acquisition related adjustments |
|
(1,256 |
) |
|
|
15,062 |
|
|
|
303 |
|
|
|
15,159 |
|
|
Charitable support to Ukraine |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
798 |
|
|
Stock compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42,641 |
|
|
Segment adjusted EBITDA |
$ |
451,639 |
|
|
$ |
148,484 |
|
|
$ |
80,376 |
|
|
$ |
619,869 |
|
|
Adjusted EBITDA % of net sales |
|
25.4 |
% |
|
|
17.8 |
% |
|
|
20.5 |
% |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended October 2, 2021 |
|
|
|
|
|
|
|
||||||||
|
Net sales |
$ |
1,501,413 |
|
|
$ |
527,791 |
|
|
$ |
355,172 |
|
|
$ |
2,384,376 |
|
|
Segment Operating Income |
$ |
311,789 |
|
|
$ |
95,088 |
|
|
$ |
68,048 |
|
|
$ |
491,372 |
|
|
Operating Income % of net sales |
|
20.8 |
% |
|
|
18.0 |
% |
|
|
19.2 |
% |
|
|
20.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation |
|
17,579 |
|
|
|
9,120 |
|
|
|
4,005 |
|
|
|
31,180 |
|
|
Amortization |
|
42,272 |
|
|
|
7,145 |
|
|
|
5,450 |
|
|
|
54,867 |
|
|
Restructuring expenses |
|
1,386 |
|
|
|
834 |
|
|
|
376 |
|
|
|
2,596 |
|
|
Facility consolidation related expenses |
|
993 |
|
|
|
— |
|
|
|
— |
|
|
|
993 |
|
|
Acquisition related adjustments |
|
803 |
|
|
|
1,676 |
|
|
|
— |
|
|
|
2,479 |
|
|
Stock compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,135 |
|
|
Gain on sale of plant |
|
(678 |
) |
|
|
(85 |
) |
|
|
|
|
(763 |
) |
||
|
Acquisition deal costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(90,285 |
) |
|
Segment adjusted EBITDA |
$ |
374,144 |
|
|
$ |
113,778 |
|
|
$ |
77,879 |
|
|
$ |
519,574 |
|
|
Adjusted EBITDA % of net sales |
|
24.9 |
% |
|
|
21.6 |
% |
|
|
21.9 |
% |
|
|
21.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
(1) Includes corporate and other general company expenses, which impact Segment Adjusted EBITDA, and amounted to $60.6 million and $46.2 million for the nine months ended October 1, 2022 and October 2, 2021, respectively. |
|||||||||||||||
|
THE MIDDLEBY CORPORATION |
|||||||||||||||
|
NON-GAAP INFORMATION (UNAUDITED) |
|||||||||||||||
|
(Amounts in 000’s, Except Percentages) |
|||||||||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
||||||||||||
|
|
$ |
|
Diluted per share |
|
$ |
|
Diluted per share |
||||||||
|
Net earnings |
$ |
104,369 |
|
|
$ |
1.92 |
|
|
$ |
175,966 |
|
|
$ |
3.09 |
|
|
Amortization (1) |
|
21,661 |
|
|
|
0.40 |
|
|
|
19,754 |
|
|
|
0.35 |
|
|
Restructuring expenses |
|
2,327 |
|
|
|
0.04 |
|
|
|
791 |
|
|
|
0.01 |
|
|
Acquisition related costs |
|
3,189 |
|
|
|
0.06 |
|
|
|
1,742 |
|
|
|
0.03 |
|
|
Net periodic pension benefit (other than service costs & curtailment) |
|
(9,944 |
) |
|
|
(0.18 |
) |
|
|
(11,363 |
) |
|
|
(0.20 |
) |
|
Acquisition deal costs |
|
— |
|
|
|
— |
|
|
|
(103,106 |
) |
|
|
(1.81 |
) |
|
Income tax effect of pre-tax adjustments |
|
(4,291 |
) |
|
|
(0.08 |
) |
|
|
22,584 |
|
|
|
0.40 |
|
|
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.05 |
|
|
Adjusted net earnings |
$ |
117,311 |
|
|
$ |
2.18 |
|
|
$ |
106,368 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted weighted average number of shares |
|
54,384 |
|
|
|
|
|
56,939 |
|
|
|
||||
|
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) |
|
(494 |
) |
|
|
|
|
(1,679 |
) |
|
|
||||
|
Adjusted diluted weighted average number of shares |
|
53,890 |
|
|
|
|
|
55,260 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended |
||||||||||||||
|
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
||||||||||||
|
|
$ |
|
Diluted per share |
|
$ |
|
Diluted per share |
||||||||
|
Net earnings |
$ |
303,372 |
|
|
$ |
5.50 |
|
|
$ |
385,814 |
|
|
$ |
6.83 |
|
|
Amortization (1) |
|
75,309 |
|
|
|
1.37 |
|
|
|
59,492 |
|
|
|
1.05 |
|
|
Restructuring expenses |
|
8,231 |
|
|
|
0.15 |
|
|
|
2,596 |
|
|
|
0.05 |
|
|
Acquisition related costs |
|
15,159 |
|
|
|
0.27 |
|
|
|
2,479 |
|
|
|
0.04 |
|
|
Acquisition deal costs |
|
— |
|
|
|
— |
|
|
|
(90,285 |
) |
|
|
(1.60 |
) |
|
Facility consolidation related expenses |
|
— |
|
|
|
— |
|
|
|
993 |
|
|
|
0.02 |
|
|
Net periodic pension benefit (other than service costs & curtailment) |
|
(32,244 |
) |
|
|
(0.58 |
) |
|
|
(34,268 |
) |
|
|
(0.61 |
) |
|
Gain on sale of plant |
|
— |
|
|
|
— |
|
|
|
(763 |
) |
|
|
(0.01 |
) |
|
Charitable support to Ukraine |
|
798 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax adjustments |
|
— |
|
|
|
— |
|
|
|
(18,900 |
) |
|
|
(0.33 |
) |
|
Income tax effect of pre-tax adjustments |
|
(16,611 |
) |
|
|
(0.30 |
) |
|
|
14,640 |
|
|
|
0.26 |
|
|
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) |
|
— |
|
|
|
0.11 |
|
|
|
— |
|
|
|
0.13 |
|
|
Adjusted net earnings |
$ |
354,014 |
|
|
$ |
6.53 |
|
|
$ |
321,798 |
|
|
$ |
5.83 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted weighted average number of shares |
|
55,134 |
|
|
|
|
|
56,526 |
|
|
|
||||
|
Adjustment for shares excluded due to anti-dilution effect on GAAP net earnings (2) |
|
(932 |
) |
|
|
|
|
(1,284 |
) |
|
|
||||
|
Adjusted diluted weighted average number of shares |
|
54,202 |
|
|
|
|
|
55,242 |
|
|
|
||||
|
(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 |
|
Nine Months Ended |
||||||||||||
|
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
|
3rd Qtr, 2022 |
|
3rd Qtr, 2021 |
||||||||
|
Net Cash Flows Provided By (Used In): |
|
|
|
|
|
|
|
||||||||
|
Operating activities |
$ |
83,991 |
|
|
$ |
173,659 |
|
|
$ |
173,449 |
|
|
$ |
346,040 |
|
|
Investing activities |
|
(150,609 |
) |
|
|
(388,457 |
) |
|
|
(257,868 |
) |
|
|
(412,679 |
) |
|
Financing activities |
|
54,856 |
|
|
|
73,092 |
|
|
|
72,594 |
|
|
|
54,361 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Free Cash Flow |
|
|
|
|
|
|
|
||||||||
|
Cash flow from operating activities |
$ |
83,991 |
|
|
$ |
173,659 |
|
|
$ |
173,449 |
|
|
$ |
346,040 |
|
|
Less: Capital expenditures, net of sale proceeds |
|
(18,781 |
) |
|
|
(10,307 |
) |
|
|
(50,914 |
) |
|
|
(23,670 |
) |
|
Free cash flow |
$ |
65,210 |
|
|
$ |
163,352 |
|
|
$ |
122,535 |
|
|
$ |
322,370 |
|
|
|
|
|
|
|
|
|
|
||||||||
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.
Darcy Bretz, Investor and Public Relations, (847) 429-7756
Bryan Mittelman, Chief Financial Officer, (847) 429-7715