Central Garden & Pet Company (NASDAQ: CENT)(NASDAQ: CENTA)
today announced results for its third quarter ended June 27,
2009.
The Company reported net sales of $482 million in the quarter, a
decline of two percent compared to $493 million in the comparable
fiscal 2008 period. The Company reported operating income of $51.6
million, an increase of 52 percent compared to $33.9 million in the
year ago period. Net interest expense was $5.2 million compared to
$9.0 million a year ago. Net income for the quarter was $31.1
million, or $0.44 per fully diluted share compared to net income of
$15.6 million or $0.22 per fully diluted share in the year ago
period. Branded products sales were $407 million, a decrease of
three percent. Sales of other manufacturers’ products were $76
million, an increase of two percent. Depreciation and amortization
was $7.2 million compared to $8.4 million in the year ago period.
The quarter-ending leverage ratio was 2.7x compared to 4.1x a year
ago.
“Once again, we made progress in the quarter against our three
operating objectives,” noted William Brown, Chairman and Chief
Executive Officer of Central Garden & Pet Company. “Gross
profit margins improved substantially, we further lowered operating
expenses, and we continued to significantly reduce our investment
in working capital. Building upon these achievements, our goal is
to drive further margin and capital efficiency improvement across
the business.”
Fiscal third quarter net sales for the Garden Products segment
were $267 million, an increase of five percent from $253 million in
the comparable fiscal 2008 period. Operating income for Garden
Products was $35.3 million compared to $12.6 million in the year
ago period. Branded products sales were $231 million, an increase
of six percent compared to last year. Sales of other manufacturers’
products were unchanged at $37 million compared to last year.
Fiscal third quarter net sales for the Pet Products segment were
$215 million, a decline of ten percent from $239 million compared
to the fiscal 2008 period. Operating income for the Pet Products
segment was $29.8 million, compared to $32.7 million in the year
ago period. Branded products sales were $176 million, a decrease of
13 percent compared to last year. Sales of other manufacturers’
products were $39 million, an increase of three percent compared to
last year.
For the nine months ended June 27, 2009, the Company reported
net sales of $1.25 billion compared to $1.29 billion in the
comparable fiscal 2008 period, a decline of three percent.
Operating income for the period was $106.1 million compared to an
operating loss of $312.1 million in the year ago period. Branded
product sales declined three percent and sales of other
manufacturers’ products declined two percent. Depreciation and
amortization for the nine month period was $21.9 million compared
to $24.4 million in the year ago period. Net income for the nine
months ended June 27, 2009 was $57.9 million compared to a net loss
of $253 million in the comparable fiscal 2008 period. Earnings per
diluted share were $0.82 compared to a loss of $3.55 per fully
diluted share in the year ago period.
Included in the year-to-date results for fiscal 2008 was a
non-cash, pre-tax charge of $400 million, or $290 million net of
taxes, related to goodwill impairment charge as required under SFAS
No.142 “Goodwill and Other Intangible Assets.” Also included in the
year-to-date results for fiscal 2008 was a pre-tax gain of $11.1
million, or $6.9 million net of taxes, related to the sale of
properties and legal settlement proceeds. Adjusted net income and
earnings per share in the first nine months of fiscal 2008,
excluding the impact of the impairment, the gain on sale of
properties and legal settlement proceeds was $30.1 million, or
$0.42 per fully diluted share.
The Company will discuss its third quarter results on a
conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific
Time. Individuals may access the call by dialing 1-888-680-0869 and
passcode 1594 6934 (domestic) or 617-213-4854 and passcode 1594
6934 (international). The conference call will be simultaneously
broadcast over the Internet through Central’s website,
http://www.central.com/ or you may link directly to the webcast on
our website at
http://phx.corporate-ir.net/phoenix.zhtml?c=93879&p=irol-calendar
To listen to the webcast, please log on to the website prior to the
scheduled call time to register and download any necessary audio
software.
In order to simplify your registration process, you may
pre-register at the following link:
https://www.theconferencingservice.com/prereg/key.process?key=PGR96EBMC.
By pre-registering, you may bypass the operator and go directly to
the teleconference with a unique PIN number as soon as the call
begins. At the time of the call, after dialing the number and
passcode mentioned above, enter your PIN for immediate access to
the teleconference.
Re-play dial-in numbers for the call will be available for three
weeks: 888-680-0869 and passcode 1594 6934 (domestic) and
617-213-4854 and passcode 1594 6934 (international).
Central Garden & Pet Company is a leading innovator,
marketer and producer of quality branded products for the lawn
& garden and pet supplies markets. Committed to new product
innovation, our products are sold to specialty independent and mass
retailers. Participating categories in Lawn & Garden include:
Grass seed including the brands PENNINGTON®, SMART SEEDTM and THE
REBELS™; wild bird feed and the brands PENNINGTON® and KAYTEE®;
weed and insect control and the brands AMDRO®, SEVIN®, IRONITE® and
Over ‘N Out®; and decorative outdoor patio products and the brands
NORCAL®, NEW ENGLAND POTTERY® and MATTHEWS FOUR SEASONS™. We also
provide a host of other regional and application-specific garden
brands and supplies. Participating categories in Pet include:
Animal health and the brands ADAMS™ and ZODIAC®; aquatics and
reptile and the brands OCEANIC®, AQUEON™ and ZILLA™; bird &
small animal and the brands KAYTEE®, SUPER PET® and CRITTER TRAIL®;
dog & cat and the brands TFH™, NYLABONE®, FOUR PAWS®, PINNACLE®
and Avoderm®; and equine and the brands FARNAM®, BRONCO® and SUPER
MASK®. We also provide a host of other application-specific Pet
brands and supplies. Central Garden & Pet Company is based in
Walnut Creek, California, and has approximately 5,000 employees,
primarily in North America and Europe. For additional information
on Central Garden & Pet Company, including access to the
Company's SEC filings, please visit the Company’s website at
www.central.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which
are not historical facts, including the potential for further
margin and capital efficiency improvements, are forward-looking
statements that are subject to risks and uncertainties that could
cause actual results to differ materially from those set forth in
or implied by forward-looking statements. These risks are described
in the Company's Annual Report on Form 10-K, filed November
26, 2008, and other Securities and Exchange Commission filings.
Central undertakes no obligation to publicly update these
forward-looking statements to reflect new information, subsequent
events or otherwise.
Central Garden & Pet
Company
Condensed Consolidated Statements
of Operations
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended Nine Months Ended June 28,
June 27, June 28, June 27, 2008 2009
2008 2009 Net Sales $
492,937 $ 482,162 $ 1,291,410 $ 1,251,129 Cost of Goods Sold and
Occupancy 339,990 317,108
884,331 840,041 Gross Profit 152,947
165,054 407,079 411,088 Selling, General and Administrative
Expenses 119,079 113,484 319,175 305,028 Impairment of Goodwill
-
-
400,000
-
Income (Loss) from Operations 33,868 51,570 (312,096
) 106,060 Interest Expense (9,346 ) (5,211 ) (30,631 )
(17,846 ) Interest Income 360 12 914 614 Other Income 783
1,161 2,457 80
Income (Loss) Before Income Taxes
(Tax Benefit) and Minority Interest
25,665 47,532 (339,356 ) 88,908 Income Taxes (Tax Benefit)
9,574 15,371 (86,837 ) 29,498 Minority Interest 443
1,085 906 1,498
Net Income (Loss) $ 15,648 $ 31,076 $ (253,425 ) $
57,912 Net Income (Loss) Per Share: Basic $ 0.22 $
0.45 $ (3.55 ) $ 0.83 Diluted $ 0.22 $ 0.44 $ (3.55 ) $ 0.82
Weighted Average Shares Used in the Computation Of Net
Income (Loss) Per Share: Basic 71,493 69,345 71,367 69,885 Diluted
72,148 70,449 71,367 70,798
Central Garden & Pet
Company
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
June 28,
2008
June 27,
2009
September 27,
2008
Assets Current Assets: Cash and Cash Equivalents $ 8,522 $ 25,390 $
26,929 Accounts Receivable - Net 292,746 262,735 260,639
Inventories 371,052 313,820 349,499 Other Current Assets
36,767 43,117 34,686 Total Current Assets
709,087 645,062 671,753 Property and Equipment - Net 194,064
165,519 174,013 Goodwill 201,624 206,873 201,499 Other
Intangible Assets – Net 110,710 104,318 107,404 Deferred Income
Taxes and Other Assets 119,016 80,539 104,649
Total $ 1,334,501 $ 1,202,311 $ 1,259,318
Liabilities and Shareholders’ Equity Current Liabilities: Accounts
Payable $ 118,611 $ 117,083 $ 133,364 Accrued Expenses 102,014
114,432 84,345 Current Portion of Long-Term Debt 3,350
3,311 3,340 Total Current Liabilities 223,975
234,826 221,049 Long-Term Debt 580,494 405,676 519,807 Other
Long-Term Obligations 4,606 4,685 7,037 Minority Interest 2,741
2,087 2,667 Shareholders’ Equity 522,685 555,037
508,758 Total $ 1,334,501 $ 1,202,311 $ 1,259,318
Non-GAAP Financial
Measures
This press release includes adjustments to GAAP net
loss for the nine months ended June 28, 2008. Adjusted
net income and earnings per share, which excludes the impact
of the impairment of goodwill and gains from the sale of
properties and a legal settlement, is a non-GAAP financial measure.
We believe that it is useful as a supplemental measure in
assessing the performance of our operating business. This
measure is used by our management, including our chief
operating decision maker, to evaluate business results. We
exclude goodwill impairment and gains from the sale of
properties and a legal settlement, because it is not representative
of the on-going results of operations of our business. Below
is a reconciliation of this non-GAAP measure to net loss
for the nine months ended June 28, 2008, excluding the
goodwill impairment and gains from the sale of properties and a
legal settlement.
Dollars EPS (in millions)
Reconciliation of Net Loss to Adjusted Net Income: Net Loss $
(253.4 ) $ (3.55 ) Adjusted for Goodwill Impairment Charge, Net of
Taxes 290.4 4.07 Less: Gain on Sale of Properties and Legal
Settlement Proceeds, Net of Taxes (6.9 ) (0.10 )
Adjusted Net Income and Earnings per Share $ 30.1 $ 0.42
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Jul 2023 to Jul 2024