CONSOLIDATED STATEMENTS OF EARNINGS For the fiscal years ended January 1, 2005, January 3, 2004 and December 28, 2002 (amounts in thousands, except per share data) 2004 2003 2002 Net sales $ 271,115 $ 242,200 $ 235,147 Cost of sales 168,487 156,347 156,647 Gross profit 102,628 85,853 78,500 Selling and distribution expenses 30,496 29,609 28,213 General and administrative expenses 23,113 21,228 20,556 Stock repurchase transaction expenses 12,647 — — Acquisition integration reserve adjustments (1,887) — — Income from operations 38,259 35,016 29,731 Interest expense and deferred financing amortization, net 3,004 5,891 11,180 Debt extinguishment expenses 1,154 — 9,122 Gain on acquisition financing derivatives (265) (62) (286) Other expense, net 522 366 901 Earnings before income taxes 33,844 28,821 8,814 Provision for income taxes 10,256 10,123 2,712 Net earnings $ 23,588 $ 18,698 $ 6,102 NET EARNINGS PER SHARE: Basic $ 2.56 $ 2.06 $ 0.68 Diluted $ 2.38 $ 1.99 $ 0.67 WEIGHTED AVERAGE NUMBER OF SHARES: Basic 9,200 9,065 8,990 Diluted 9,931 9,392 9,132 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 18 MIDDLEBY CORPORATION AND SUBSIDIARIES