By
Tim Beyers
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More Articles
March 10, 2006
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On March 8, Middleby (Nasdaq: MIDD ) , a Motley Fool Hidden Gems pick, released Q4 and full fiscal 2005 earnings for the period ending Dec. 31, 2005.
- As with the Q4 numbers, earnings appeared to be short of analyst expectations. But that was before acquisition-related losses. Without them, Middleby booked $4.00 in per-stub income, which was in line with Street estimates.
- The Alkar acquisition has taken a toll on Middleby's balance sheet, since both receivables and inventory outpaced sales.
- Management doesn't expect that to continue, however. Its long-term goal is a 40% gross margin that will require substantially streamlining Alkar's existing business. (More on this can be found at the Hidden Gems discussion board for Middleby. This post is particularly enlightening. A 30-day all-access pass will get you access to that and much more.)
(Figures in thousands, except per-share data)
Income Statement Highlights
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Avg. Est.
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FY 2005
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FY 2004
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% Change
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Sales
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$314,610
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$316,668
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$271,115
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16.8
|
|
Net Profit
|
--
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$32,178
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$23,588
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36.4
|
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EPS
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$4.00
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$3.98
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$2.38
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67.2
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Get back to basics with a look at the income statement.
Margin Checkup
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FY 2005
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FY 2004
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% Change
|
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Gross Margin
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38.42%
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37.85%
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0.56
|
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Op. Margin
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18.31%
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14.11%
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4.20
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Net Margin
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10.16%
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8.70%
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1.46
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Margins are the earnings engine. See how they work.
Balance Sheet Highlights
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Assets
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FY 2005
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FY 2004
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% Change
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Cash+ ST Invest.
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$3,908
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$3,803
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2.8
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Inventory
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$40,989
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$32,772
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25.1
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Accounts Rec.
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$38,552
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$26,612
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44.9
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Liabilities
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|
|
|
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Long-Term Debt
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$121,595
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$123,723
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(1.7)
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Accounts Pay.
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$17,576
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$11,298
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55.6
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Cash Flow Highlights
No cash flow statement provided. (Whatever.)
Find out why Fools always follow the money.
Related Companies:
- Domino's Pizza (NYSE: DPZ )
- Illinois Tool Works (NYSE: ITW )
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- TurboChef (Nasdaq: OVEN )
- YUM Brands (NYSE: YUM )
For related Foolishness:
Middleby has been a three-bagger for Motley Fool Hidden Gems subscribers. Get a free, 30-dayall-access passand find out what other stocks are helping Tom Gardner and his guest analysts crush the market's average return by more than 20% each.Orsubscribeorrenewnow and we'll throw inStocks 2006, which features our analysts' best picks for the year ahead. All you have to lose is the prospect of richer returns.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.
Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.
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