The Middleby Corporation
) reported impressive results for the second quarter of 2013.
Earnings per share came in at $2.00, up roughly 19.8% from $1.67
reported in the year-ago quarter. Earnings also surpassed the
Zacks Consensus Estimate of $1.79 by 11.7%.
: Revenues generated by Middleby increased 39.9% year over year
to $363.8 million and were above the Zacks Consensus Estimate of
$353.0 million. This includes revenues from the recent
acquisitions to the tune of $76.1 million or 29.3% of sales.
In the reported quarter, revenues from the
Commercial Foodservice Equipment Group
increased 13.5% year over year while an increase of 11.0% was
recorded excluding the impact of the acquisition of Nieco.
Revenues from the
Food Processing Equipment Group
soared 29.0% year over year in the quarter, aided by the
acquisition of Stewart Systems in Sep 2012. Excluding this,
revenues grew 9.4% year over year.
Revenues from the
Residential Kitchen Equipment Group
were $58.8 million.
: Middleby reported a 43.6% year-over-year increase in its cost
of sales, which also represented 62.5% of total revenue. Gross
margin received a set back and declined from 39.2% to 37.5%, due
to the low-margin Viking products. Excluding the Viking Range
acquisition, it came in at 38.9%.
Selling and distribution expenses, as a percentage of
revenues, declined 25 basis points (bps) year over year to 10.6%
while general and administrative expenses declined 51 bps to
10.3% of total revenue. Operating profit surged 33.1% year over
year to $60.3 million, against $45.3 million recorded in the
second quarter of 2012.
: The Middleby Corporation had cash and cash equivalents balance
of approximately $34.4 million at the end of second-quarter 2013,
versus $43.8 million in the preceding quarter. Long-term debt was
$617.4 million, compared with $636.8 million at the end of the
first quarter of 2013.
: The company did not provide any specific guidance range for the
coming quarters; however, management is optimistic that the
acquisitions undertaken would significantly boost revenue growth
in the future, accompanied by growth in international markets.
Moreover, the company is quite confident of the organic growth in
the Commercial Foodservice Equipment Group and the Food
Processing Equipment Group, in the coming quarters, based on
better adaptability to new technologies.
Other Stocks to Consider
EnPro Industries, Inc.
) announced second-quarter 2013 operating earnings of 87 cents
per share, 26.1% above the Zacks Consensus Estimate of 69
) announced second-quarter 2013 operating earnings of 43 cents
per share, 30.3% above the Zacks Consensus Estimate of 33
Barnes Group Inc.
) announced second-quarter 2013 operating earnings of 47 cents
per share, in line with the Zacks Consensus Estimate.
Middleby currently carries a Zacks Rank #3 (Hold).
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