The Middleby Corporation · NASDAQ:MIDD
The Middleby — Q1 2024 Earnings Presentation
12 slides from The Middleby's earnings presentation, May 8, 2024
Slide 1: Q1 Earnings Update
Q1 Earnings Update May 8, 2024 www.middleby.com 1
Slide 2: Middleby Segment Summary
MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms 2024 YTD PROFORMA REVENUE BY SEGMENT * Food Processing • 120+ industry-leading brands Commercial 17% 64% • Three highly synergistic foodservice segments Residential 19% • Technology and innovation leader • Differentiated go-to-mar
Slide 3: Five-Year Comparative Operating Performance
FIVE-YEAR COMPARATIVE OPERATING PERFORMANCE SALES (BN) ADJUSTED EBITDA (MM) ADJUSTED EBITDA MARGIN $4.0 $875 22.1% 20.9% $2.7 $569 +45% +54% 2018 LTM 2018 LTM 2018 LTM ADJUSTED EPS ROLLING 5-YR FREE CASH FLOW (BN) LEVERAGE RATIO $9.39 $2.1 2.8x 2.4x $6.35 $1.3 +48% +62% 2018 LTM 2018 Q1 2024 Q4 2018
Slide 4: Financial Results
FINANCIAL RESULTS Q1 2024 Financial Results Results Commentary (in millions, except percentages) Q1 ‘24 Q1 ’23 Change • Organic revenue growth by segment: Net Sales $926.9 $1,007.4 -8.0% • Commercial Foodservice -4.2% • Residential Kitchen -22.3% Gross Profit 346.4 378.7 -8.5% • Food Processing -7.7
Slide 5: Commercial Foodservice
COMMERCIAL FOODSERVICE Q1 2024 Financial Results Results Commentary (in millions, except percentages) Q1 ‘24 Q1 ’23 Change • Margin remained strong versus prior year despite lower sales volumes; benefiting from Net Sales $590.3 $613.9 -3.8% manufacturing efficiencies gained through Adjusted EBITDA 1
Slide 6: Residential Kitchen
RESIDENTIAL KITCHEN Q1 2024 Financial Results Results Commentary (in millions, except percentages) Q1 ‘24 Q1 ’23 Change • Residential brands continue to face headwinds from the disrupted housing Net Sales $173.9 $220.0 -21.0% market Adjusted EBITDA 11.2 28.3 -60.4% • Order volumes improved over the
Slide 7: Food Processing
FOOD PROCESSING Q1 2024 Financial Results Results Commentary (in millions, except percentages) Q1 ‘24 Q1 ’23 Change • Strong margin as compared to prior year despite lower sales volume driven by the Net Sales $162.7 $173.5 -6.2% timing of delivery of larger projects Adjusted EBITDA 38.1 41.3 -7.7% •
Slide 8: Debt and Liquidity
DEBT AND LIQUIDITY Q1 2024 Leverage Ratio (in millions) Liquidity Commentary Cash $341.0 • QTD operating cash flows were $141 million Debt $2,414.7 versus $92 million in the prior year • Quarter-end borrowing capacity was Net Debt* $2,163.1 approximately $2.8 billion LTM EBITDA* $901.3 • 62% of our
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 29 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: Acquisitions
ACQUISITIONS www.maxmac.com.br • Manufacturing facility allowing the Food Processing Segment the ability to increase local offerings of comprehensive solutions, manufacturing, and spare parts to better serve customers in the region • Regional facility strengthens the Middleby presence in Brazil and
Slide 12: Middleby 2024 Kitchen Innovations Awards
6) MIDDLEBY GREAT KITCHEN INNOVATIONS 2024 AWARD BLODGETT}} Blodgett ImVection The ventless oven provides either convection or impingement cooking in its four chambers. A sophisticated patent-pending motorized ‘shuffling jet plate" system aligns air holes for the cooking selected, The Evo EVent® Ope