The Middleby Corporation · NASDAQ:MIDD
The Middleby — Q4 2023 Earnings Presentation
16 slides from The Middleby's earnings presentation, Feb 20, 2024
Slide 1: Q4 Earnings Update
Q4 Earnings Update February 20, 2024 www.middleby.com 1
Slide 2: Middleby Segment Summary
MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms 2023 YTD PROFORMA REVENUE BY SEGMENT * Food Processing • 120+ highly-leading brands Commercial 18% 62% • Three highly synergistic foodservice segments Residential 20% • Technology and innovation leader • Differentiated go-to-marke
Slide 3: Five-Year Comparative Operating Performance
FIVE-YEAR COMPARATIVE OPERATING PERFORMANCE SALES (BN) ADJUSTED EBITDA (MM) ADJUSTED EBITDA MARGIN $4.0 $900 22.3% 20.9% $2.7 $569 +48% +58% 2018 2023 2018 2023 2018 2023 ADJUSTED EPS ROLLING 5-YR FREE CASH FLOW (BN) LEVERAGE RATIO $9.70 $2.0 2.83x $6.35 $1.3 2.46x +53% +54% 2018 2023 2018 2023 Q4 2
Slide 4: Financial Results
FINANCIAL RESULTS Q4 2023 Financial Results Results Commentary (in millions, except percentages) Q4 ‘23 Q4 ’22 Change • Organic revenue growth by segment: Net Sales $1,008.6 $1,031.7 -2.2% • Commercial Foodservice -2.3% • Residential Kitchen -14.6% Gross Profit 386.8 390.1 -0.8% • Food Processing -1
Slide 5: Commercial Foodservice
COMMERCIAL FOODSERVICE Q4 2023 Financial Results Results Commentary (in millions, except percentages) Q4 ‘23 Q4 ’22 Change • Margin expansion over prior year and sequentially as a result of shift in mix towards Revenues $627.9 $628.9 -0.2% higher technology solutions, manufacturing Adjusted EBITDA 1
Slide 6: Residential Kitchen
RESIDENTIAL KITCHEN Q4 2023 Financial Results Results Commentary (in millions, except percentages) Q4 ‘23 Q4 ’22 Change • Residential brands continue to face headwinds from higher channel inventory Revenues $189.0 $216.0 -12.5% levels and disrupted housing market Adjusted EBITDA 19.6 30.6 -35.9% • U
Slide 7: Food Processing
FOOD PROCESSING Q4 2023 Financial Results Results Commentary (in millions, except percentages) Q4 ‘23 Q4 ’22 Change • Strong margin expansion over prior year driven by delivery of larger projects, Revenues $191.7 $186.7 2.7% realized operational leverage benefits and Adjusted EBITDA 52.9 48.7 8.6% f
Slide 8: Debt and Liquidity
DEBT AND LIQUIDITY Q4 2023 Leverage Ratio (in millions) Liquidity Commentary Cash $247.5 • QTD operating cash flows were $256 million Debt $2,425.2 versus $159 million in the prior year • YTD operating cash flows of $629 million, an Net Debt* $2,267.4 increase of 89% over the prior year LTM EBITDA*
Slide 9: EBITDA Margin Progression and Targets
EBITDA MARGIN PROGRESSION AND TARGETS Key Drivers Segment 2021 2022 2023 Target Innovation and sales mix Commercial 25.1% 26.2% 27.7% 30% Acquisition integration Supply-chain initiatives Residential 20.9% 17.1%* 12.1% 25% Operational investments Food Processing 22.4% 22.1% 24.9% 25% Price-
Slide 10: Strategic M&A Focus
STRATEGIC M&A FOCUS Recent M&A Activity Strategic Investment Themes • Middleby has completed 28 transactions since the beginning of 2020, investing • Automation, IoT and Digital Controls in key technology initiatives and trends, which have enhanced our capabilities • Beverage Platform Expansion and
Slide 11: Revenue Composition – Commercial Foodservice
REVENUE COMPOSITION – COMMERCIAL FOODSERVICE 2023 REVENUE BY CUSTOMER SEGMENT 2023 REVENUE BY DEMAND REQUIREMENT (CHANGE FROM 2022) (CHANGE FROM 2022) TRAVEL & LEISURE, MENU DRIVEN, 8%, 4%, (↑1%) (↓2%) PARTS, 18%, INDEPENDENT, PARTS, 18%, (↑2%) 10%, (↓2%) (↑2%) CASUAL DINING, 8%, (↓2%) INSTITUTIONAL
Slide 12: Acquisitions
ACQUISITIONS www.gbtgmbh.de • Expertise in high performance, large volume product systems for bread, buns, sweet pastries, and other baked goods • Highly complementary to Middleby’s existing bakery brands helping to expand our offering of full-line solutions • Strengthens Middleby’s European presenc
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