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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


(Mark One)
[X]
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
     
For the quarterly period ended October 2, 2004
     
or
   
[_]
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
     
 
Commission File No. 1-9973
  
     
THE MIDDLEBY CORPORATION
(Exact Name of Registrant as Specified in its Charter)
 
     
Delaware
  
36-3352497
(State or Other Jurisdiction of Incorporation or Organization)
  
(I.R.S. Employer Identification No.)
     
     
1400 Toastmaster Drive, Elgin, Illinois
60120
(Address of Principal Executive Offices)
(Zip Code)
   
   
Registrant's Telephone No., including Area Code
(847) 741-3300


Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve (12) months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X  NO [_]

Indicate by check mark whether the registrant is an accelerated filer (as defined by Rule 12b-2 of the Exchange Act).
Yes [_] No [X]
 
As of November 5, 2004, there were 9,240,801 shares of the registrant's common stock outstanding.


 
     
 


THE MIDDLEBY CORPORATION AND SUBSIDIARIES

QUARTER ENDED OCTOBER 2, 2004

INDEX


DESCRIPTION
  
PAGE
     
PART I.
FINANCIAL INFORMATION
 
       
 
Item 1.
Condensed Consolidated Financial Statements (unaudited)
  
       
   
CONDENSED CONSOLIDATED BALANCE SHEETS October 2, 2004 and January 3, 2004
1
       
   
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS October 2, 2004 and September 27, 2003
2
       
   
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS October 2, 2004 and September 27, 2003
3
       
   
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4
       
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
14
       
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
22
       
 
Item 4.
Controls and Procedures
24
     
PART II.
OTHER INFORMATION
  
       
 
Item 6.
Exhibits
25



 
     
 


PART I.   FINANCIAL INFORMATION
     
Item 1.   Condensed Consolidated Financial Statements
 
  THE MIDDLEBY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
(Unaudited)

ASSETS
  
Oct. 2, 2004
  
Jan. 3, 2004
  
Current assets:
          
Cash and cash equivalents    
  
$
2,633
  
$
3,652
  
Accounts receivable, net of reserve for doubtful accounts of $3,252 and $3,146
    
29,520
    
23,318
  
Inventories, net    
    
31,087
    
25,382
  
Prepaid expenses and other    
    
1,497
    
1,776
  
Current deferred taxes    
    
11,810
    
12,839
  
Total current assets
    
76,547
    
66,967
  
Property, plant and equipment, net of accumulated depreciation of $31,360 and $29,146
    
23,106
    
24,921
  
Goodwill    
    
74,761
    
74,761
  
Other intangibles    
    
26,300
    
26,300
  
Other assets    
    
1,661
    
1,671
  
Total assets
  
$
202,375
  
$
194,620
  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
              
Current liabilities:
              
Current maturities of long-term debt    
  
$
—
  
$
14,500
  
Accounts payable    
    
15,042
    
11,901
  
Accrued expenses    
    
41,148
    
37,076
  
Total current liabilities
    
56,190
    
63,477
  
Long-term debt    
    
40,615
    
42,000
  
Long-term deferred tax liability    
    
8,264
    
8,264
  
Other non-current liabilities    
    
14,132
    
18,789
  
Stockholders' equity:
              
Preferred stock, $0.01 par value; nonvoting; 2,000,000 shares authorized; none issued    
    
—
    
—
  
Common stock, $0.01 par value; 20,000,000 shares authorized; 11,288,371 and 11,257,021 shares issued in 2004 and 2003, respectively    
    
113
    
113
  
Paid-in capital    
    
55,486
   
55,279
 
Treasury stock at cost; 2,047,570 and 2,047,271 shares in 2004 and 2003, respectively
    
(12,481
)
  
(12,463
)
Retained earnings    
    
42,021
    
21,470
  
Accumulated other comprehensive loss    
    
(1,965
)
  
(2,309
)
Total stockholders' equity    
    
83,174
    
62,090
  
Total liabilities and stockholders' equity    
  
$
202,375
  
$
194,620
  
 
 
See accompanying notes
 

 
  1  
 

THE MIDDLEBY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In Thousands, Except Per Share Amounts)
(Unaudited)


   
Three Months Ended
  
Nine Months Ended
  
   
Oct. 2, 2004
  
Sep. 27, 2003
  
Oct. 2, 2004
  
Sep. 27, 2003
  
Net sales    
  
$
70,620
  
$
60,894
  
$
205,996
  
$
182,695
  
Cost of sales    
    
44,226
    
38,261
    
127,633
    
118,360
  
Gross profit    
    
26,394
    
22,633
    
78,363
    
64,335
  
                           
Selling expenses    
    
7,637
    
7,259
    
23,340
    
22,201
  
General and administrative expenses    
    
6,175
    
5,388
    
17,684
    
16,097
  
Income from operations    
    
12,582
    
9,986
    
37,339
    
26,037
  
Net interest expense and deferred financing amortization    
    
643
    
1,410
    
2,334
    
4,747
  
(Gain) loss on acquisition financing derivatives  
    
(96
)
  
32
    
(96
)
  
(79
)
Other expense (income), net    
    
45
    
(254
)
  
317
    
29
  
Earnings before income taxes    
    
11,990
    
8,798
    
34,784
    
21,340
  
Provision for income taxes    
    
1,622
    
3,147
    
10,536