The Middleby Corporation · NASDAQ:MIDD
The Middleby — Q3 2023 Earnings Presentation
10 slides from The Middleby's earnings presentation, Nov 8, 2023
Slide 1: Q3 Earnings Update
Q3 Earnings Update November 8, 2023 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 17% 63% • 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 $4.1 $896 22.1% 20.9% $2.7 $569 +49% +57% 2018 2023 (LTM) 2018 2023 (LTM) 2018 2023 (LTM) Adjusted EPS Rolling 5-Year Free Cash Flow (BN) Leverage Ratio $9.59 $1.9 2.83x 2.75x $1.3 $6.35 +51% +45% www.
Slide 4: Financial Results
FINANCIAL RESULTS Q3 2023 Financial Results Results Commentary (in millions, except percentages) Q3 ‘23 Q3 ’22 Change • Organic revenue growth by segment: Net Sales $980.7 $992.9 -1.2% • Commercial Foodservice 0.2% Gross Profit 375.3 365.2 • Residential Kitchen -21.0% 2.8% % of Sales 38.3% 36.8% • F
Slide 5: Commercial Foodservice
COMMERCIAL FOODSERVICE Q3 2023 Financial Results Results Commentary (in millions, except percentages) Q3 ‘23 Q3 ’22 Change • Margin expansion over prior year and sequentially as a result of shift in mix towards Revenues $634.0 $619.6 2.3% higher technology solutions, manufacturing Adjusted EBITDA 18
Slide 6: Residential Kitchen
RESIDENTIAL KITCHEN Q3 2023 Financial Results Results Commentary (in millions, except percentages) Q3 ‘23 Q3 ’22 Change • Residential brands continue to face headwinds from higher channel inventory Revenues $180.0 $221.0 -18.6% levels and inflationary pressures Adjusted EBITDA 19.4 34.8 -44.3% • New
Slide 7: Food Processing
FOOD PROCESSING Q3 2023 Financial Results Results Commentary (in millions, except percentages) Q3 ‘23 Q3 ’22 Change • Organic revenue growth across both bakery and protein products Revenues $166.7 $152.3 9.5% • Full-line automated solutions for protein Adjusted EBITDA 43.0 33.8 27.2% and bakery prod
Slide 8: Debt and Liquidity
DEBT AND LIQUIDITY Q3 2023 Leverage Ratio (in $000s) Liquidity Commentary Cash $167.2 • QTD operating cash flows were $219 million Debt $2,580.2 versus $84 million in the prior year • LTM operating cash flows of $532 million, an Net Debt* $2,499.2 increase of 112% over the prior year LTM LTM EBITDA*
Slide 9: EBITDA Margin Progression and Targets
EBITDA MARGIN PROGRESSION AND TARGETS Key Drivers Segment 2021 2022 F2023 Target • Innovation and sales mix Commercial 25.1% 26.1% ~27.5% 30% • Acquisition integration • Supply-chain initiatives Residential 20.9% 17.1%* ~12.5% 25% • Operational investments Food Processing 22.4% 22.3% ~24.0% 25% • Pr
Slide 10: Middleby Ice Line-Up
MIDDLEBY ICE LINE-UP Full-Line Global, Chain, and Dealer Solutions • Expected revenue growth - $50M in 2024 • $1.75B to $2.0B global market • High margin mix product lines • Product lines cover all ice types – Chewblet, nugget, ½ cube, cube, and shaved ice • 250 lb, 460 lb, 550 lb, 750 lb, 1100 lb,