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

Avg. Est.

FY 2005

FY 2004

% Change

Sales

$314,610

$316,668

$271,115

16.8

Net Profit

--

$32,178

$23,588

36.4

EPS

$4.00

$3.98

$2.38

67.2



Get back to basics with a look at the income statement.

Margin Checkup

FY 2005

FY 2004

% Change

Gross Margin

38.42%

37.85%

0.56

Op. Margin

18.31%

14.11%

4.20

Net Margin

10.16%

8.70%

1.46



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2005

FY 2004

% Change

Cash+ ST Invest.

$3,908

$3,803

2.8

Inventory

$40,989

$32,772

25.1

Accounts Rec.

$38,552

$26,612

44.9



Liabilities

Long-Term Debt

$121,595

$123,723

(1.7)

Accounts Pay.

$17,576

$11,298

55.6



Cash Flow Highlights

No cash flow statement provided. (Whatever.)

Find out why Fools always follow the money.

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For related Foolishness:

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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 check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers didn'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 Fool profile . The Motley Fool has an ironclad disclosure policy .