<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
SEPTEMBER 1, 1995
--------------------------
Date of Report (Date of Earliest Event Reported)
Commission File No. 1-9973
THE MIDDLEBY CORPORATION
-----------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3352497
-------------------------- -------------------------------------
(State of Incorporation) (IRS Employer Identification Number)
1400 Toastmaster Drive
Elgin, Illinois 60120-9274
--------------------------
(Address of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (708) 741-3300
<PAGE>
Item 5. OTHER EVENTS
As a result of the Hussmann Corporation Foodservice Equipment Group
acquisition in 1989, the subsequent disposition of related assets,
and the successful conclusion in 1993 of the lawsuit against Whitman
Corporation, the seller of the Hussmann Corporation Foodservice
Equipment Group, management of the Company has received and answered
numerous questions related to the accounting for the above-mentioned
transactions that occurred from 1989 to 1993. These questions have
come from shareholders, investment analysts, potential investors and
others. To assist current and future shareholders of the Company to
better understand the history of the Company and to better analyze
the comparative financial statements and current results of
operations, management has prepared the following unaudited pro
forma financial information which basically assumes that an adjusted
price was originally paid for the Hussmann Corporation Foodservice
Equipment Group in 1989 and assumes that the disposition of related
assets and integration of facilities occurred in 1989.
The unaudited pro forma financial information attached hereto as
Exhibit (99) should be read in conjunction with the historical
audited financial statements of the Company and Annual Reports on
Form 10-K filed with the Securities and Exchange Commission.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibit (99) Unaudited Pro Forma Financial Information
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE MIDDLEBY CORPORATION
By: /s/ John J. Hastings
-----------------------------------
John J. Hastings
Executive Vice President,
Chief Financial Officer,
Secretary and Treasurer
Dated: September 1, 1995
<PAGE>
EXHIBIT (99)
UNAUDITED PRO FORMA FINANCIAL INFORMATION
OF THE MIDDLEBY CORPORATION
INDEX
<TABLE>
<CAPTION>
PAGE
<S> <C>
Background Information............................................. 1
Report of Independent Pubic Accountants............................ 2
Historical As Reported Condensed Consolidated Statements
of Earnings for Fiscal Years 1990 through 1994 ................... 3
Pro Forma condensed Consolidated Statements of Earnings
for Fiscal Years 1990 through 1993 (Unaudited) ................... 3
Pro Forma Condensed Consolidated Statement of Earnings for the
Fiscal Year 1990 (Unaudited)...................................... 4
Pro Forma Condensed Consolidated Statement of Earnings for the
Fiscal Year 1991 (Unaudited)...................................... 5
Pro Forma Condensed Consolidated Statement of Earnings for the
Fiscal Year 1992 (Unaudited)...................................... 6
Pro Forma Condensed Consolidated Statement of Earnings for the
Fiscal Year 1993 (Unaudited)...................................... 7
Notes to Pro Forma Financial Information........................... 8-9
</TABLE>
<PAGE>
EXHIBIT (99).
BACKGROUND INFORMATION
The following unaudited pro forma financial information consists of Pro Forma
Condensed Consolidated Statements of Earnings for fiscal years 1990 through
1993. The audited Reported Condensed Statements of Earnings for fiscal years
1990 through 1994 are also included for comparative purposes. Such
statements have been prepared to illustrate the estimated effects of (i) the
elimination of certain nonrecurring transactions, principally related to the
Hussmann asset dispositions and facility closures, and (ii) reduction of
interest expense resulting from reflecting the proceeds from the September
1993 Hussmann Corporation litigation settlement as if some of the proceeds
had been received during fiscal year 1989 and had been used to reduce
outstanding debt. The unaudited pro forma financial information does not
purport to represent what the Company's results of operations would actually
have been if such transactions had occurred on such date. In addition, the
unaudited pro forma financial information is presented for illustrative
purposes only and is not necessarily indicative of the results of future
operations of the Company, and should be read in conjunction with the
historical audited financial statements of the Company and notes thereto.
1
<PAGE>
EXHIBIT (99).
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of
Directors of The Middleby Corporation:
We have reviewed the pro forma adjustments reflecting transactions described
in Notes A to G and the application of those adjsutments to the historical
amounts in the accompanying Middleby Corporation Pro Forma Condensed
Consolidated Statements of Earnings for the fiscal years ended January 1,
1994, January 2, 1993, December 28, 1991 and December 29, 1990. The
historical condensed financial statements are derived from the historical
consolidated financial statements of The Middleby Corporation which were
audited by us. Such pro forma adjustments are based on management's
assumptions as described in Notes A to G to the pro forma statements. Our
review was conducted in accordance with standards established by the American
Institute of Certified Public Accountants.
A review is substantially less in scope than an examination, the objective of
which is the expression of an opinion on management's assumptions, the pro
forma adjustments and the application of those adjustments to historical
information. Accordingly, we do not express such an opinion.
The objective of this pro forma information is to show what the significant
effects on the historical information might have been had the transactions
occurred at an earlier date. However, the pro forma condensed consolidated
financial statements are not necessarily indicative of the results of
operations or related effects on financial position that would have been
attained had the above-mentioned transactions actually occurred earlier.
Based on our review, nothing came to our attention that caused us to believe
that management's assumptions do not provide a reasonable basis for
presenting the significant effects directly attributable to the
above-mentioned transactions described in Notes A to G to the pro forma
statements, that the related pro forma adjustments do not give appropriate
effect to those assumptions, or that the pro forma columns do not reflect the
proper application of those adjustments to the historical financial statement
amounts in the Pro Forma Condensed Consolidated Statements of Earnings for
the fiscal years ended January 1, 1994, January 2, 1993, December 28, 1991,
and December 29, 1990.
Arthur Andersen LLP
Chicago, Illinois
July 26, 1995
2
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
HISTORICAL AS REPORTED AND PRO FORMA CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
(Unaudited)
(In Thousands Except for Per Share Data)
<TABLE>
<CAPTION>
Historical As Reported
For the Fiscal Years
---------------------------------------------------------------------------
1990 1991 1992 1993 1994
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Sales $113,016 $102,518 $109,219 $119,355 $129,967
Cost of Sales 79,089 72,297 76,982 89,627 93,713
---------------------------------------------------------------------------
Gross Margin 33,927 30,221 32,237 29,728 36,254
Selling and Distribution Expenses 15,867 16,699 15,886 18,659 17,894
General and Administrative Expenses 9,524 9,878 11,049 8,985 9,581
Restructuring Charge - 2,550 - 600 -
---------------------------------------------------------------------------
Income from Operations 8,536 1,094 5,302 1,484 8,779
Unusual Income Item - - - (7,716) -
Interest Expense 8,253 7,356 6,114 4,926 4,080
Other Expense, net 1,176 1,212 1,053 643 786
---------------------------------------------------------------------------
Earnings (Loss) Before Income Taxes (893) (7,474) (1,865) 3,631 3,913
Provision for Income Taxes 85 36 29 199 863
---------------------------------------------------------------------------
Net (Loss) Earnings ($978) ($7,510) ($1,894) $3,432 $3,050
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary ($0.12) ($0.90) ($0.23) $0.41 $0.36
Fully Diluted ($0.12) ($0.90) ($0.23) $0.41 $0.36
---------------------------------------------------------------------------
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Pro Forma Historical As
For the Fiscal Years Reported
------------------------------------------------------------ ---------------
1990 1991 1992 1993 1994
------------------------------------------------------------ ---------------
<S> <C> <C> <C> <C> <C>
Net Sales $87,940 $83,178 $97,924 $119,355 $129,967
Cost of Sales 60,660 58,222 69,543 89,627 93,713
------------------------------------------------------------ ---------------
Gross Margin 27,280 24,956 28,381 29,728 36,254
Selling and Distribution Expenses 11,964 13,334 14,182 18,659 17,894
General and Administrative Expenses 7,764 7,980 10,178 8,985 9,581
Restructuring Charge - - - 600 -
------------------------------------------------------------ ---------------
Income from Operations 7,552 3,642 4,021 1,484 8,779
Interest Expense 4,388 3,405 2,764 2,981 4,080
Other Expense, net 313 311 240 93 786
------------------------------------------------------------ ---------------
Earnings (Loss) Before Income Taxes 2,851 (74) 1,017 (1,590) 3,913
Provision for Income Taxes 974 86 263 28 863
------------------------------------------------------------ ---------------
Net (Loss) Earnings $1,877 ($160) $754 ($1,618) $3,050
------------------------------------------------------------ ---------------
------------------------------------------------------------ ---------------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary $0.23 ($0.02) $0.09 ($0.19) $0.36
Fully Diluted $0.23 ($0.02) $0.09 ($0.19) $0.36
------------------------------------------------------------ ---------------
------------------------------------------------------------ ---------------
</TABLE>
See Notes to Pro Forma Financial Information
3
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the Fiscal Year 1990
(Unaudited)
(In Thousands Except for Per Share Data)
<TABLE>
<CAPTION>
Historical As Pro Forma
Reported Adjustments Pro Forma
------------- ----------- ---------
<S> <C> <C> <C>
Net Sales $113,016 ($25,076) (B,C,D) $87,940
Cost of Sales 79,089 (18,429) (B,C,D,E) 60,660
------------- ----------- ---------
Gross Margin 33,927 (6,647) 27,280
Selling and Distribution Expenses 15,867 (3,903) (B,C,D) 11,964
General and Administrative Expenses 9,524 (1,760) (B,C,D) 7,764
------------- ----------- ---------
Income from Operations 8,536 (984) 7,552
Interest Expense 8,253 (3,865) (A,B,C,D) 4,388
Other Expense, net 1,176 (863) (A,B,D) 313
------------- ----------- ---------
Earnings/(Loss) Before Income Taxes (893) 3,744 2,851
Provision for Income Taxes 85 889 (G) 974
------------- ----------- ---------
Net (Loss) Earnings ($978) $2,855 $1,877
------------- ----------- ---------
------------- ----------- ---------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary ($0.12) $0.34 $0.23
Fully Diluted ($0.12) $0.34 $0.23
------------- ----------- ---------
------------- ----------- ---------
</TABLE>
See Notes to Pro Forma Financial Information
4
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the Fiscal Year 1991
(Unaudited)
(In Thousands Except for Per Share Data)
<TABLE>
<CAPTION>
Historical As Pro Forma
Reported Adjustments Pro Forma
------------- ----------- ---------
<S> <C> <C> <C>
Net Sales $102,518 ($19,340) (B,C,D) $83,178
Cost of Sales 72,297 (14,075) (B,C,D,E) 58,222
------------- ----------- ---------
Gross Margin 30,221 (5,265) 24,956
Selling and Distribution Expenses 16,699 (3,365) (B,C,D) 13,334
General and Administrative Expenses 9,878 (1,898) (B,C,D) 7,980
Restructuring Charge 2,550 (2,550) (F) -
------------- ----------- ---------
Income from Operations 1,094 2,548 3,642
Interest Expense 7,356 (3,951) (A,C,D) 3,405
Other Expense, net 1,212 (901) (A,D) 311
------------- ----------- ---------
(Loss) Earnings Before Income Taxes (7,474) 7,400 (74)
Provision for Income Taxes 36 50 (G) 86
------------- ----------- ---------
Net (Loss) Earnings ($7,510) $7,350 ($160)
------------- ----------- ---------
------------- ----------- ---------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary ($0.90) $0.88 ($0.02)
Fully Diluted ($0.90) $0.88 ($0.02)
------------- ----------- ---------
------------- ----------- ---------
</TABLE>
See Notes to Pro Forma Financial Information
5
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the Fiscal Year 1992
(Unaudited)
(In Thousands Except for Per Share Data)
<TABLE>
<CAPTION>
Historical As Pro Forma
Reported Adjustments Pro Forma
------------- ----------- ---------
<S> <C> <C> <C>
Net Sales $109,219 ($11,295) (C,D) $97,924
Cost of Sales 76,982 (7,439) (C,D,E) 69,543
------------- ----------- ---------
Gross Margin 32,237 (3,856) 28,381
Selling and Distribution Expenses 15,886 (1,704) (C,D) 14,182
General and Administrative Expenses 11,049 (871) (C,D) 10,178
------------- ----------- ---------
Income from Operations 5,302 (1,281) 4,021
Interest Expense 6,114 (3,350) (A,D) 2,764
Other Expense, net 1,053 (813) (A,C,D) 240
------------- ----------- ---------
(Loss) Earnings Before Income Taxes (1,865) 2,882 1,017
Provision for Income Taxes 29 234 (G) 263
------------- ----------- ---------
Net (Loss) Earnings ($1,894) $2,648 $754
------------- ----------- ---------
------------- ----------- ---------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary ($0.23) $0.32 $0.09
Fully Diluted ($0.23) $0.32 $0.09
------------- ----------- ---------
------------- ----------- ---------
</TABLE>
See Notes to Pro Forma Financial Information
6
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the Fiscal Year 1993
(Unaudited)
(In Thousands Except for Per Share Data)
<TABLE>
<CAPTION>
Historical As Pro Forma
Reported Adjustments Pro Forma
------------- ----------- ---------
<S> <C> <C> <C>
Net Sales $119,355 $- $119,355
Cost of Sales 89,627 - 89,627
------------- ----------- ---------
Gross Margin 29,728 - 29,728
Selling and Distribution Expenses 18,659 - 18,659
General and Administrative Expenses 8,985 - 8,985
Restructuring Charge 600 - 600
------------- ----------- ---------
Income from Operations 1,484 - 1,484
Unusual Income Item (7,716) 7,716 (A) -
Interest Expense 4,926 (1,945) (A) 2,981
Other Expense, net 643 (550) (A) 93
------------- ----------- ---------
Earnings/(Loss) Before Income Taxes 3,631 (5,221) (1,590)
Provision for Income Taxes 199 (171) (G) 28
------------- ----------- ---------
Net (Loss) Earnings $3,432 ($5,050) ($1,618)
------------- ----------- ---------
------------- ----------- ---------
(Loss) Earnings Per Common and
Common Equivalent Share-
Primary $0.41 ($0.60) ($0.19)
Fully Diluted $0.41 ($0.60) ($0.19)
------------- ----------- ---------
------------- ----------- ---------
</TABLE>
See Notes to Pro Forma Financial Information
7
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
NOTES TO PRO FORMA FINANCIAL INFORMATION
(Unaudited)
(In Thousands)
The following is a summary of adjustments reflected in the Pro Forma Condensed
Consolidated Statements of Earnings:
(A) The September 1993 litigation settlement of $19,500, related to the
acquisition of the Hussmann Corporation Foodservice Equipment Group,
is assumed to have occurred in 1989 and is effectively treated as a
reduction to the original purchase price. As a result, on a pro forma
basis, the gain of $7,716 recorded in 1993 has been eliminated. In
addition, it is assumed that the proceeds from the settlement were used
to reduce outstanding debt, thus reducing interest expense. This
includes the use of a lower interest rate as the Company would not have
incurred the higher cost "Tranche B" debt. The following table sets
forth the Statement of Earnings adjustments by year related to this
event:
<TABLE>
<CAPTION>
For the Fiscal Years
---------------------------------------------------
1990 1991 1992 1993
---------------------------------------------------
<S> <C> <C> <C> <C>
Interest Expense Reduction ($2,333) ($2,372) ($2,319) ($1,945)
Litigation Settlement Gain Reversal - - - 7,716
Goodwill Amortization Reduction (817) (833) (819) (550)
---------------------------------------------------
Increase/(Decrease) in Earnings Before Income Taxes $3,150 $3,205 $3,138 ($5,221)
---------------------------------------------------
---------------------------------------------------
</TABLE>
(B) The May 1991 closure of the Montreal manufacturing facility is reflected
as if it occurred at the time of its acquisition from the Hussmann
Corporation Foodservice Equipment Group in 1989. The following table
sets forth the Statement of Earnings adjustments related to this event:
<TABLE>
<CAPTION>
For the Fiscal Years
---------------------------------
1990 1991
---------------------------------
<S> <C> <C>
Net Sales Reduction ($4,086) ($1,004)
Cost of Sales Reduction (3,523) (917)
---------------------------------
Decrease in Gross Margin (563) (87)
Selling and Distribution Expenses Reduction (575) (350)
General and Administrative Expenses Reduction (315) (237)
---------------------------------
Increase in Income from Operations 327 500
Other Expense Reduction (6) -
---------------------------------
Increase in Earnings Before Income Taxes $333 $500
---------------------------------
---------------------------------
</TABLE>
(C) The February 1992 closure of the United Kingdom distribution company is
reflected as if it occurred at the time of its acquisition from the
Hussmann Corporation Foodservice Equipment Group in 1989. The following
table sets forth the Statement of Earnings adjustments related to this
event:
<TABLE>
<CAPTION>
For the Fiscal Years
-----------------------------------------------
1990 1991 1992
-----------------------------------------------
<S> <C> <C> <C>
Net Sales Reduction ($2,383) ($1,490) ($163)
Cost of Sales Reduction (1,741) (1,184) (266)
-----------------------------------------------
Increase/(Decrease) in Gross Margin (642) (306) 103
Selling and Distribution Expenses Reduction (737) (536) (32)
General and Administrative Expenses Reduction (241) (461) (48)
-----------------------------------------------
Increase in Income from Operations 336 691 183
Interest Expense Increase 23 2 -
Other Expense Increase - - 5
-----------------------------------------------
Increase in Earnings Before Income Taxes $313 $689 $178
-----------------------------------------------
-----------------------------------------------
</TABLE>
8
<PAGE>
EXHIBIT (99).
THE MIDDLEBY CORPORATION
NOTES TO PRO FORMA FINANCIAL INFORMATION
(Unaudited)
(In Thousands)
(D) The August 1992 sale of the Seco division is reflected as if it occurred
at the time of its acquisition from the Hussmann Corporation Foodservice
Equipment Group in 1989. In addition, it is assumed that the proceeds
of $11,500 from the sale of the Seco division were used to reduce
outstanding debt, which has the effect of reducing interest expense in
fiscal years 1990, 1991 and 1992. The following table sets forth the
Statement of Earnings adjustments by year related to this event:
<TABLE>
<CAPTION>
For the Fiscal Years
-------------------------------------------------
1990 1991 1992
-------------------------------------------------
<S> <C> <C> <C>
Net Sales Reduction ($18,607) ($16,846) ($11,132)
Cost of Sales Reduction (13,048) (12,015) (7,862)
-------------------------------------------------
Decrease in Gross Margin (5,559) (4,831) (3,270)
Selling and Distribution Expenses Reduction (2,591) (2,479) (1,672)
General and Administrative Expenses Reduction (1,204) (1,200) (823)
-------------------------------------------------
Decrease in Income from Operations (1,764) (1,152) (775)
Interest Expense Reduction (1,555) (1,581) (1,031)
Other Expense (Reduction)/Increase (40) (68) 1
-------------------------------------------------
(Decrease)/Increase in Earnings Before Income Taxes ($169) $497 $255
-------------------------------------------------
-------------------------------------------------
</TABLE>
(E) The 1990 and 1991 effects on earnings due to using the last-in,
first-out LIFO inventory cost method have been eliminated. These
effects were a $117 decrease in earnings in 1990 and a $41 increase in
earnings in 1991. The 1992 nonrecurring gain of $689 recorded to
reflect the change in inventory valuation methods from LIFO to first-in,
first-out (FIFO) has been eliminated.
(F) The 1991 nonrecurring restructuring charge of $2,550 related to the
consolidation of the Middleby Marshall operations into the Toastmaster
facility, and the closure of the Montreal manufacturing facility has
been reversed.
(G) The provision for income taxes has been recalculated to reflect the
effects of the pro forma adjustments.
(H) The Company's 1990, 1991, 1992, 1993 and 1994 fiscal years ended on
December 29, 1990, December 28, 1991, January 2, 1993, January 1, 1994
and December 31, 1994, respectively.
9
