The Middleby Corporation · NASDAQ:MIDD
The Middleby — Middleby — Seaport Global (August 2020)
15 slides from The Middleby's conference presentation, Aug 26, 2020
Slide 1: Seaport Global, August 26, 2020
Exhibit 99.1 Seaport Global August 26, 2020 www.middleby.com 1
Slide 2: COVID-19 Implemented Actions
COVID‐19 Implemented Actions We have implemented the following in response to COVID‐19: • Employee Safety – Implemented companywide procedures including mandated mask policies, enhanced COVID‐19 UPDATE workplace sanitation, travel discontinuation, social distancing, staggered shifts and established
Slide 3: Financial Results Q2 2020
Financial Results Q2 2020 FINANCIAL RESULTS RESULTS COMMENTARY 2Q20 2Q19 Change • Revenue decline of 40% organically Net Sales $472.0 $761.0 ‐38.0% Gross Profit 153.1 286.5 ‐46.6% • Organic growth declines in all segments due to COVID‐19 impacts. % of Sales 32.4% 37.6% Commercial Foodservice (49%) a
Slide 4: Segment Results
Segment Results Commercial Foodservice Residential Kitchen Equipment Food Processing 2Q20 2Q19 Change 2Q20 2Q19 Change 2Q20 2Q19 Change Revenues 267,500 513,279 ‐47.9% Revenues 102,914 149,872 ‐31.3% Revenues 101,563 97,853 3.8% EBITDA 47,864 129,785 ‐63.1% EBITDA 12,589 27,476 ‐54.2% EBITDA 22,983
Slide 5: Debt and Liquidity Q2 2020
Debt and Liquidity Q2 2020 LEVERAGE RATIO (IN $000S) LIQUIDITY COMMENTARY * Cash 610.2 • Record LTM operating cash flow of $440.6 million as of Q2 2020 Debt 2,396.9 • In Q1 2020, Middleby entered into an amended and restated five‐year, $3.5 billion Net Debt 1,786.7 multi‐currency senior secured cred
Slide 6: Middleby Segment Summary
Middleby Segment Summary SEGMENT REVENUES THREE INDUSTRY‐LEADING FOODSERVICE PLATFORMS Food Processing 13.5% • Commercial 100+ highly‐respected, leading brands 67.1% • Global business infrastructure Residential 19.4% • Highly synergistic business segments • Technology and innovation leader SALES BY
Slide 7: Near-Term Business Conditions—Recent Order Trends
Near‐Term Business Conditions—Recent Order Trends April May June July August April May June July August August ▼65% ▼55% ▼39% ▼17% ▼31% ▼53% ▼35% ▼9% 28% 59% Commercial Food Service Residential Kitchen Business in quick‐serve, pizza, retail, c‐store and At our residential businesses in both the US a
Slide 8: COVID-19 Restaurant Impacts
COVID‐19 Restaurant Impacts Domestic restaurant same store sales MILLERPULSE WEEKLY INDUSTRY SAME STORE SALES, 2020 have consistently improved since the March decline according to multiple restaurant data resources. Restaurants are rapidly adapting to the new the new normal: • Expanding to‐go option
Slide 9: COVID-19 Restaurant Impacts
COVID‐19 Restaurant Impacts www.middleby.com 9
Slide 10: Middleby Revenue Composition – Commercial Foodservice
Middleby Revenue Composition – Commercial Foodservice SEGMENT IMPACT • Quick serve and fast casual fare better due to delivery, drive through and carry out support. Same store sales trend Week 33 Sales Ended 8/17/20 ahead of prior year in recent weeks • Pizza performs well as delivery is their Indus
Slide 11: Middleby Revenue Composition – Commercial Foodservice
Middleby Revenue Composition – Commercial Foodservice OPERATOR SPENDING MENU DRIVEN PARTS 8% • Near‐term focus on replacement, capacity 17% and maintenance of equipment • Better performing sectors and concepts continuing with enhanced menu and operational initiatives • Spending anticipated to be on
Slide 12: Trends in the Foodservice Industry
Trends in the Foodservice Industry ACCELERATING TRENDS • Added focus on off‐premise (delivery, carry out and drive‐ through) • Focus on menu simplification, throughput and space utilization • Growth in non‐traditional foodservice like retail and c‐store • Labor will continue to be a primary challeng
Slide 13: COVID-19 Residential Impacts – Appliance Sales
COVID‐19 Residential Impacts – Appliance Sales Residential sales are sequentially improving week over week since the AHAMAHAM 20202020 FULLFULL YEARYEAR INDUSTRYINDUSTRY FORECASTFORECAST OFOF UNITUNIT SHIPMENTSSHIPMENTS (in April lows and are expected to thousands) recover in second half. Residentia
Slide 14: COVID-19 Residential Impacts – Home Sales
COVID‐19 Residential Impacts –Home Sales TOTAL EXISTING HOME SALES % CHANGE YEAR OVER YEAR Domestic home sales and new home starts have steadily improved over the recent months since the onset of COVID. • Existing‐home sales continued on a Source: National Assn. of Realtors strong, upward trajectory
Slide 15: Middleby Revenue Composition – Residential Trends
Middleby Revenue Composition – Residential Trends CONSUMER SPENDING Residential Sales • Growing trend of outdoor cooking and family entertaining during COVID Other & Non‐Core 10% • Heightened interest and demand for Outdoor 12% new appliances due to meals prepared at home and consumers with time to