Central Garden & Pet Company (NASDAQ: CENT)(NASDAQ: CENTA)
today announced results for its first quarter ended December 26,
2009.
“We continued to make progress on our core initiatives of
reducing working capital, improving gross margins and controlling
costs,” noted William Brown, Chairman and Chief Executive Officer.
“We reduced our investment in working capital by $98 million
compared to this time last year and lowered debt by $84 million.
Gross margins improved by 3.4 percentage points and in our
seasonally slow garden quarter, we reduced our per share loss to
less than half of year ago levels. With a stronger balance sheet,
we are beginning to accelerate new product introductions and once
again explore potential acquisitions.”
The Company reported net sales of $269 million in the quarter, a
decline of eight percent compared to $293 million in the comparable
fiscal 2009 period. The Company reported operating income of $0.5
million compared to a loss of $2.7 million in the year ago period.
Net interest expense was $4.9 million compared to $6.6 million a
year ago. The net loss for the quarter was $2.9 million, or $0.04
per share compared to a net loss of $6.2 million or $0.09 per share
in the year ago period. Branded product sales decreased 9% percent
to $220 million. Sales of other manufacturers’ products declined 2%
percent to $49.2 million. Depreciation and amortization was $7.2
million compared to $7.5 million in the year ago period. The
quarter ending leverage ratio was 2.6x.
Net sales for the Garden Products segment in its seasonally slow
quarter were $88 million, a decrease of 18 percent from $107
million in the comparable fiscal 2009 period. The Garden Products
operating loss was $6.3 million compared to a loss of $7.8 million
in the year ago period. Branded product sales declined $20 million
to $74 million. Sales of other manufacturers’ products increased $1
million to $14 million. Net sales for the Pet Products segment were
$182 million, a decrease of two percent compared to $186 million in
the year ago period. Operating income for the Pet Products segment
was $17.6 million, compared to $12.9 million in the year ago
period. Branded product sales were $146 million, a decrease of $2
million compared to last year. Sales of other manufacturers’
products were $36 million compared to $38 million last year.
The Company will discuss its first quarter results on a
conference call today at 4:30 p.m. EST / 1:30 p.m. PST. Individuals
may access the call by dialing 1-888-713-4216 and passcode 7630
9971 (domestic) or 1-617-213-4868 and passcode 7630 9971
(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://ir.central.com/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=PEVBRKRLU
. 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: 1-888-286-8010 and passcode 1504 3145 (domestic) and
1-617-801-6888 and passcode 1504 3145 (international).
Central Garden & Pet Company is a leading innovator,
marketer and producer of quality branded products for the lawn
& garden and pet supplies markets. We are committed to new
product innovation and our products are sold to specialty
independent and mass retailers in the following categories: In Lawn
& Garden: grass seed including the brands PENNINGTON® 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. Pet categories 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®. Central
Garden & Pet Company is based in Walnut Creek, California, and
has approximately 4,000 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 http://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 those relating to the new
product introductions and potential acquisitions 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 20, 2009, 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 Income
(Unaudited)
(In thousands, except per share
amounts)
Three Months Ended
December 27, December 26, 2008
2009 Net Sales $ 292,542 $ 269,236 Cost
of Goods Sold and Occupancy 207,061 181,467
Gross Profit 85,481 87,769 Selling, General
and Administrative Expenses 88,147 87,248
Income (Loss) from Operations (2,666 ) 521
Interest Expense (6,884 ) (4,944 ) Interest Income 332 10 Other
Income (Expense) (950 ) 592 Loss Before
Income Tax Benefit (10,168 ) (3,821 ) Income Tax
Benefit (3,853 ) (1,402 ) Loss Including Non
Controlling Interest (6,315 ) (2,419 ) Net Income (Loss)
Attributable Non Controlling Interest (131 ) 475
Net Loss Attributable to Central Garden & Pet $
(6,184 ) $ (2,894 ) Basic and Diluted Loss Per Common Share:
$ (.09 ) $ (0.04 ) Weighted Average Shares Outstanding:
Basic and Diluted 70,519 66,828
Central Garden & Pet
Company
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
December 27,
2008
December 26,
2009
September 26,
2009
Assets Current Assets: Cash and Cash Equivalents $ 8,862 $ 91,791 $
85,668 Accounts Receivable 165,681 128,991 206,565 Inventories
393,702 327,403 284,834 Other Current Assets 41,207
48,023 44,425 Total Current
Assets 609,452 596,208 621,492 Property and Equipment - Net
171,616 162,336 164,734 Goodwill 201,499 207,749 207,749
Other Intangible Assets – Net 106,493 102,236 103,366 Deferred
Income Taxes and Other Assets 105,301 53,448
53,584 Total $ 1,194,361 $ 1,121,977
$ 1,150,925 Liabilities and
Shareholders’ Equity Current Liabilities: Accounts Payable $
120,936 $ 117,635 $ 108,836 Accrued Expenses 78,268 83,091 82,143
Current Portion of Long-Term Debt 3,332 3,256
3,270 Total Current Liabilities 202,536
203,982 194,249 Long-Term Debt 487,721 404,007 404,815 Other
Long-Term Obligations 6,663 4,405 4,526 Total Central Garden &
Pet Company Shareholders’ Equity 496,982 509,623 545,085 Non
Controlling Interest 459 (40 ) 2,250 Total Shareholders’ Equity
497,441 509,583 547,335
Total $ 1,194,361 $ 1,121,977 $
1,150,925
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