Middleby Corp. (MIDD, Financial) filed Quarterly Report for the period ended 2009-07-04.
MIDDLEBY CORP. through its subsidiaries and their operating divisions is engaged in the manufacture and sale of commercial foodservice equipment and beverage merchandisers. It designs develops manufactures and markets a broad line of equipment used for the cooking preparation and refrigeration of food for commercial and institutional kitchens and restaurants along with a line a refrigerated display coolers used primarily by soft drink bottlers in supermarkets and other retail outlets. Middleby Corp. has a market cap of $963.1 million; its shares were traded at around $51.98 with a P/E ratio of 13.3 and P/S ratio of 1.5. Middleby Corp. had an annual average earning growth of 38.1% over the past 10 years. GuruFocus rated Middleby Corp. the business predictability rank of 4-star.
NON-OPERATING EXPENSES. Interest and deferred financing amortization costs decreased to $2.8 million in the second quarter of 2009 as compared to $3.0 million in the second quarter of 2008, due to lower interest rates on increased borrowings resulting from recent acquisitions. Other expense was $0.5 million in the second quarter of 2009, which primarily consisted of foreign exchange losses, as compared to $0.6 million in the prior year second quarter.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Combined selling, general, and administrative expenses increased from $67.4 million in the six–month period ended June 28, 2008 to $75.1 million in the six-month period ended July 4, 2009. As a percentage of net sales, operating expenses increased from 20.2% to 22.1% in the six-month period ended July 4, 2009. Selling expenses increased slightly from $32.9 million in the six-month period ended June 28, 2008 to $33.0 million in the six month period ended July 4, 2009. Selling expenses reflect increased costs of $5.9 million associated the acquisitions of TurboChef, CookTek and Anets offset in part by reduced costs of $4.1 million associated with commission expense due to lower sales and lower commission rates. General and administrative expenses increased from $34.5 million in the six-month period ended June 28, 2008 to $42.1 million in the six-month period ended June 28, 2008. General and administrative expenses reflect $5.7 million of costs associated with the acquired operations of TurboChef, CookTek and Anets and $2.4 million associated with the closure and consolidation of a manufacturing facility.
During the six months ended July 4, 2009, cash and cash equivalents increased by $1.9 million to $8.0 million at July 4, 2009 from $6.1 million at January 3, 2009. Net borrowings increased from $234.7 million at January 3, 2009 to $321.1 million at July 4, 2009.
During the six months ended July 4, 2009, changes in working capital included a $19.4 million decrease in accounts receivable, a $9.7 million decrease in inventory, and a $6.6 million decrease in accounts payable. These changes in working capital reflect the completion and collection of payment related to a large chain customer order that was completed during the first half of the year. Prepaid and other assets decreased $1.4 million. Accrued expenses and other non-current liabilities also decreased by $18.0 million reflecting the payment of transaction costs associated with the TurboChef acquisition and obligations under prior year sales rebate and incentive compensation program.
INVESTING ACTIVITIES. During the six months ended July 4, 2009, net cash used in investing activities amounted to $131.5 million. This includes cash utilized to complete the acquisitions of TurboChef of $116.1 million, CookTek of $8.0 million, Anets of $3.4 million and $4.0 million of capital expenditures associated with additions and upgrades of production equipment.
Read the The complete ReportMIDD is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
MIDDLEBY CORP. through its subsidiaries and their operating divisions is engaged in the manufacture and sale of commercial foodservice equipment and beverage merchandisers. It designs develops manufactures and markets a broad line of equipment used for the cooking preparation and refrigeration of food for commercial and institutional kitchens and restaurants along with a line a refrigerated display coolers used primarily by soft drink bottlers in supermarkets and other retail outlets. Middleby Corp. has a market cap of $963.1 million; its shares were traded at around $51.98 with a P/E ratio of 13.3 and P/S ratio of 1.5. Middleby Corp. had an annual average earning growth of 38.1% over the past 10 years. GuruFocus rated Middleby Corp. the business predictability rank of 4-star.
Highlight of Business Operations:
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Combined selling, general, and administrative expenses decreased slightly from $34.5 million in the second quarter of 2008 to $34.4 million in the second quarter of 2009. As a percentage of net sales, operating expenses increased from 19.9% in the second quarter of 2008 to 21.7% in the second quarter of 2009. Selling expenses remained the same at $16.7 million in the second quarter of 2009. Selling expenses reflect increased costs of $2.9 million associated the acquisitions of TurboChef, CookTek and Anets offset by reduced costs of $1.7 million associated with commission expense due to lower sales and lower commission rates. General and administrative expenses decreased from $17.8 million in the second quarter of 2008 to $17.7 million in the second quarter of 2009. General and administrative expenses reflect $2.1 million of costs associated with the acquired operations of TurboChef, CookTek and Anets offset by lower incentive based compensation and other expenses.NON-OPERATING EXPENSES. Interest and deferred financing amortization costs decreased to $2.8 million in the second quarter of 2009 as compared to $3.0 million in the second quarter of 2008, due to lower interest rates on increased borrowings resulting from recent acquisitions. Other expense was $0.5 million in the second quarter of 2009, which primarily consisted of foreign exchange losses, as compared to $0.6 million in the prior year second quarter.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Combined selling, general, and administrative expenses increased from $67.4 million in the six–month period ended June 28, 2008 to $75.1 million in the six-month period ended July 4, 2009. As a percentage of net sales, operating expenses increased from 20.2% to 22.1% in the six-month period ended July 4, 2009. Selling expenses increased slightly from $32.9 million in the six-month period ended June 28, 2008 to $33.0 million in the six month period ended July 4, 2009. Selling expenses reflect increased costs of $5.9 million associated the acquisitions of TurboChef, CookTek and Anets offset in part by reduced costs of $4.1 million associated with commission expense due to lower sales and lower commission rates. General and administrative expenses increased from $34.5 million in the six-month period ended June 28, 2008 to $42.1 million in the six-month period ended June 28, 2008. General and administrative expenses reflect $5.7 million of costs associated with the acquired operations of TurboChef, CookTek and Anets and $2.4 million associated with the closure and consolidation of a manufacturing facility.
During the six months ended July 4, 2009, cash and cash equivalents increased by $1.9 million to $8.0 million at July 4, 2009 from $6.1 million at January 3, 2009. Net borrowings increased from $234.7 million at January 3, 2009 to $321.1 million at July 4, 2009.
During the six months ended July 4, 2009, changes in working capital included a $19.4 million decrease in accounts receivable, a $9.7 million decrease in inventory, and a $6.6 million decrease in accounts payable. These changes in working capital reflect the completion and collection of payment related to a large chain customer order that was completed during the first half of the year. Prepaid and other assets decreased $1.4 million. Accrued expenses and other non-current liabilities also decreased by $18.0 million reflecting the payment of transaction costs associated with the TurboChef acquisition and obligations under prior year sales rebate and incentive compensation program.
INVESTING ACTIVITIES. During the six months ended July 4, 2009, net cash used in investing activities amounted to $131.5 million. This includes cash utilized to complete the acquisitions of TurboChef of $116.1 million, CookTek of $8.0 million, Anets of $3.4 million and $4.0 million of capital expenditures associated with additions and upgrades of production equipment.
Read the The complete ReportMIDD is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
