Fourth quarter sales increased 1% to $374
million
Fourth quarter diluted loss per share of
($0.08) per share vs. ($0.47) per share in prior year
quarter
Adjusted fourth quarter diluted loss per
share of ($0.12) per share vs. ($0.22) per share in prior year
quarter
Fiscal 2014 diluted EPS of $0.18 vs. diluted
loss per share of ($0.04) for fiscal 2013
Adjusted fiscal 2014 diluted EPS of $0.33
per share vs. $0.20 per share in the prior year
Fiscal 2014 operating cash flow improved by
$155 million vs. the prior year
Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA),
a leading innovator, marketer and producer of quality branded
products for the lawn and garden and pet supplies markets, today
reported improved financial results for the fourth quarter and full
year ended September 27, 2014.
Fourth Quarter Consolidated GAAP
Results
Fourth quarter net sales of $374.2 million increased one percent
from $368.8 million in the comparable fiscal 2013 period. Gross
margin for the quarter increased 670 basis points compared to the
prior year, reflecting higher margins in the Company’s Garden
segment, principally due to the non-recurrence of a charge included
in the prior year’s fourth quarter, as well as higher controls and
grass seed gross margins. In the fourth quarter of 2013, the
Company’s gross profit included an $11.2 million charge (“2013
Garden Charge”) associated with two Garden products that were
subsequently discontinued.
The Company’s 2014 fourth quarter operating income was $1.4
million, compared to an operating loss of $26.4 million in the
fourth quarter of 2013, which included two charges - the 2013
Garden Charge of $11.2 million and a $7.7 million non-cash charge
related to the impairment of goodwill in the Garden segment. The
net loss for the quarter was $4.1 million, or $0.08 per fully
diluted share, compared with a net loss of $22.6 million or $0.47
per fully diluted share in the fourth quarter of 2013.
Adjusted Fourth Quarter Consolidated
Results
Adjusted fourth quarter net sales were $374.2 million compared
to adjusted net sales of $372.0 million in the prior year period.
Adjusted gross margin for the quarter improved 390 basis points
over the prior year, due to a higher gross margin in the Garden
segment for the period, reflecting improvement in most of the
Garden businesses. The adjusted operating loss for the fourth
quarter was $1.5 million compared to a $7.5 million adjusted
operating loss in the fourth quarter of 2013, a $6.0 million
improvement. The reduction in the operating loss was due to the
Garden segment’s higher gross margin and strength in the Pet
segment’s dog & cat business. The improvement was partially
offset by weakness in the Pet segment’s professional and flea and
tick businesses. The fourth quarter 2014 adjusted net loss was $5.9
million or $0.12 per fully diluted share compared to an adjusted
loss of $10.7 million or $0.22 per fully diluted share in the prior
year period.
The fourth quarter 2014 adjusted operating loss excludes a $2.9
million gain on the sale of plant manufacturing assets. The fourth
quarter 2013 adjusted operating loss excludes the $11.2 million
2013 Garden Charge and the $7.7 million Garden goodwill impairment
charge.
Central President & CEO John Ranelli said, “Central is a
different company than a few years ago. We have adopted a
multi-pronged, balanced strategy that focuses on our customers,
margins, operations, and expense reductions. While we still have
more work to do, and our results will be bumpy, I am pleased with
the progress we have made to-date and the significant improvements
to our earnings, balance sheet and cash flow.”
Ranelli continued, “Having implemented more disciplined business
principles and processes throughout the organization, we are
renewing our emphasis on top-line growth and sustainable
profitability. As we have previously indicated, it will still take
another year or so to position Central for long-term revenue
growth, organically and through acquisitions. We expect to generate
this growth by re-focusing our efforts to build up our new product
teams and strengthen our product development pipeline, as well as
by instituting new sales and marketing programs to increase
consumer takeaway at the shelf.”
Ranelli concluded, “Our approach is methodical and focused. We
are confident that the improvements made to-date, and those
identified for the future, are systemic and will become
increasingly evident on our bottom line, in value to our customers
and retail partners, and in total return to investors over
time.”
The trends in the fourth quarter of 2014 and the first quarter
of 2015 to-date have been generally positive. While management
still expects results to be uneven, it believes that the
significant improvements relative to the fourth quarter of 2013 and
first quarter of 2014 indicate that the Company’s balanced strategy
is taking hold. The Company does not currently expect the strength
experienced in the most recent quarters to carry into the second
and third quarters, due in part to factors affecting its wild bird
feed business including lost distribution and on previously reduced
product pricing in fiscal 2014. These factors are expected to have
a negative impact on the Company's revenues and profits.
Garden Segment Fourth Quarter GAAP
Details
Fourth quarter net sales for the Garden segment were $157.2
million, an increase of six percent from the fourth quarter of
2013. Garden’s operating margin increased to 4.1% from (20.8%) in
the prior year quarter. For the fourth quarter, the Garden
segment’s operating income improved by $37.2 million to $6.4
million compared to an operating loss of $30.8 million in the
fourth quarter of 2013. Operating income includes a $2.9 million
gain on the sale of plant manufacturing assets.
Adjusted Garden Segment Fourth Quarter
Details
Fourth quarter adjusted net sales were $157.2 million compared
to $151.6 million in the year ago period. The Garden segment’s
adjusted branded product sales for the quarter increased $6.7
million, or five percent, to $138.0 million while sales of other
manufacturers’ products declined $1.1 million or five percent to
$19.2 million, compared with the fourth quarter of 2013. Grass seed
and controls experienced the largest gains and more than offset
lower seasonal décor and wild bird feed sales. The wild bird feed
business reported lower sales, despite higher unit volumes, due to
lower sales prices, which were precipitated by a decrease in raw
material prices. Seasonal décor sales declined due to the
discontinuance of certain lower-margin or unprofitable products,
which helped boost operating profit in that business.
Fourth quarter garden adjusted operating income was $3.6
million, an increase of $15.5 million. The Garden segment’s
adjusted gross and operating margins increased significantly during
the quarter. The Garden’s adjusted operating margin for the quarter
improved to 2.3% from (7.9%) in the prior year quarter. Adjusted
margins increased across most of the Garden segment’s businesses.
Controls, grass seed, pottery, seasonal décor, and professional
fertilizers all delivered improved operating margins, offset to
some degree by lower margins on sales of wild bird feed and other
manufacturers’ products. In addition, last year’s adjusted Garden
margins were negatively impacted by a number of factors that did
not repeat this year.
The Garden segment’s fourth quarter 2014 adjusted operating loss
excludes a $2.9 million gain on the sale of plant manufacturing
assets. The prior year’s adjusted operating loss excludes the $11.2
million 2013 Garden Charge and the $7.7 million garden goodwill
impairment charge.
Pet Segment Fourth Quarter
Details
Fourth quarter net sales for the Pet segment were $217.1
million, a decrease of two percent from the comparable prior year
quarter. The decline was in large part due to lower sales in the
Company’s flea & tick and small animal businesses, partially
offset by higher sales of other manufacturers’ products, as well as
higher professional and dog & cat sales. Industry weakness,
reduced shelf space, and increased competition in the flea &
tick business and certain other businesses continued to weigh on
sales in the segment. As in the Garden segment, wild bird feed
sales were also impacted by lower selling prices. The Pet segment’s
branded product sales for the quarter decreased $9.1 million, or
five percent, to $166.5 million from $175.6 million. Sales of other
manufacturers’ products increased $5.7 million to $50.6 million, an
increase of 13 percent versus the comparable prior year period, due
primarily to a selling mix difference in the independent
channel.
The Pet segment’s operating income for the fourth quarter was
$21.1 million versus $24.7 million in the comparable prior year
period, a decline of $3.6 million. The Pet segment’s gross and
operating margins declined during the quarter. Pet’s operating
margin declined 150 basis points to 9.7%, due in part to lower
operating margins in the professional and flea & tick
businesses, as well as a less favorable mix of sales, with higher
sales of other manufacturers’ products and lower higher-margined
flea & tick and professional sales than a year ago. Margins
increased in several businesses, most notably dog & cat and
small animal.
Additional Information
The Company’s focus on improving working capital resulted in an
improvement of $154.8 million in operating cash flow when comparing
fiscal 2014 to fiscal 2013. Cash flow from operations for the
fourth quarter totaled $57.6 million compared to $37.2 million in
the prior year period, an improvement of $20.4 million. At
September 27, 2014, the Company’s cash and short term investments
were $88.7 million compared to $33.0 million a year ago. Total debt
at September 27, 2014 was $450.2 million compared to $472.6 million
at September 28, 2013, a decrease of $22.4 million. As of September
27, 2014, there were no borrowings outstanding on the Company’s
senior-secured asset-based revolving credit facility and $329.6
million remained available. Net interest expense was $9.7 million
for the quarter compared to $10.5 million in the prior year period.
Depreciation and amortization expense was $9.1 million, an increase
from $8.8 million in the fourth quarter of 2013. The Company took a
non-cash charge of approximately $5.9 million in Corporate
operating expenses in the fourth quarter of 2014 related to
software costs expensed in connection with changes in the Company’s
operations and related plans for future SAP implementations. The
Company’s effective tax rate for the fourth quarter increased to
49.9 percent due to the release of valuation allowances in the
Company’s foreign operations compared to 37.9 percent in the fourth
quarter of 2013. The effective tax rate for the 2014 fiscal year
was 29.2 percent compared to (74.2) percent for the 2013 fiscal
year. In November 2014, the Board of Directors authorized the
purchase of up to $50 million of the Company’s 8.25% senior
subordinated notes due March 2018. During the third quarter of
2011, the Company’s Board of Directors authorized a $100 million
share repurchase program, under which approximately $50.1 million
remains available for repurchases in fiscal 2015 and
thereafter.
Fiscal 2014 Consolidated GAAP
Details
For the year ended September 27, 2014, the Company reported
consolidated net sales of $1.60 billion, compared to $1.65 billion
in the comparable 2013 period. Branded products sales, were $1.30
billion, a five percent decrease from fiscal 2013, and sales of
other manufacturers' products increased eight percent to $299.7
million, benefitting from expanded distribution in the Pet segment.
Operating income for the period was $56.2 million compared to $40.2
million in the prior year. The fiscal 2014 results were negatively
impacted by a $16.9 million charge related to the discontinuance of
two Garden products introduced in the Spring of 2013 (2014 Garden
Charge) and benefitted from a $4.9 million gain on the sale of
plant manufacturing assets recorded in this year’s third and fourth
quarters. The fiscal 2013 results included the $11.2 million 2013
Garden Charge and a $7.7 million charge for the impairment of
goodwill. Operating margin increased to 3.5% from 2.4%. Net income
for the year was $8.8 million and earnings per diluted share were
$0.18 compared to a net loss of $1.9 million or $0.04 per fully
diluted share. in the prior year.
Adjusted Fiscal 2014 Consolidated
Details
Adjusted net sales for the year ended September 27, 2014 were
$1.61 billion, down from $1.66 billion a year ago. Adjusted
operating income for the year was $68.2 million compared to $59.0
million in the prior year. Fiscal year 2014 adjusted Garden
operating income was $53.1 million, an increase of $25.9 million
from the prior year. Pet operating income was $88.1 million in
fiscal 2014, a decrease of $7.3 million from fiscal 2013. Adjusted
consolidated operating margin increased to 4.2% from 3.6% in the
prior year. Net income for the fiscal year ended September 27, 2014
was $8.8 million compared to a loss of $1.9 million in fiscal year
2013. Adjusted net income was $16.4 million and adjusted earnings
per fully diluted share were $0.33 for the year ended September 27,
2014. Adjusted net income was $10.0 million and adjusted earnings
per fully diluted share were $0.20 for the year ended September 28,
2013.
The fiscal 2014 adjusted operating income excludes the 2014
Garden Charge and a $4.9 million gain on the sale of plant
manufacturing assets. The fiscal 2013 adjusted operating loss
excluded the $11.2 million 2013 Garden Charge and the $7.7 million
Garden goodwill impairment charge.
Shareholder Proposal
In June 2014, the Company received an unsolicited letter from
Harbinger Group Inc. requesting that the Company discuss with
Harbinger a possible acquisition by Harbinger of all outstanding
shares of Central’s common stock at $10 per share in cash or,
alternatively, the acquisition of the Company’s Pet segment for
$750 million in cash, subject to due diligence. The Company
retained Lazard as financial advisor and Cravath, Swaine &
Moore as legal adviser to assist in the review of the two proposals
received from Harbinger. With the assistance of its advisors, the
Board of Directors engaged in a comprehensive review which included
consideration of current and expected operations, capital
structure, and market opportunities. In addition, the financial
advisor and Company’s outside legal counsel met with Harbinger
representatives to provide an opportunity to supplement or clarify
their proposal. After this extensive review, the Board of Directors
unanimously concluded in October that it would not pursue either of
the two proposals received from Harbinger Group Inc.
The Company will not be hosting a conference call this
quarter.
About Central Garden &
Pet
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 and the brands PENNINGTON®, SMART SEED® and THE REBELS®;
wild bird feed and the brand PENNINGTON®; weed and insect control
and the brands AMDRO®, SEVIN®, IRONITE® and OVER-N-OUT®; and
decorative outdoor patio products under the PENNINGTON ® brand. 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 SYSTEMS®, 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 3,300 employees, primarily in North America. 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 expectations for future
financial results, 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. All forward-looking statements are
based upon the Company’s current expectations and various
assumptions. There are a number of risks and uncertainties that
could cause our actual results to differ materially from the
forward-looking statements contained in this release including, but
not limited to, the following factors:
- disruptions in the Company’s business;
and increased costs and expenses associated with the Company’s
change initiatives;
- seasonality and fluctuations in the
Company’s operating results and cash flow;
- fluctuations in market prices for seeds
and grains and other raw materials and the Company’s ability to
pass through cost increases in a timely manner;
- uncertainty about new products and
marketing programs;
- adverse weather conditions;
- dependence on a small number of
customers for a significant portion of the Company’s business;
- implementation of a new enterprise
resource planning information technology system;
- the impact on financial results of
costs incurred to consider and respond to the unsolicited Harbinger
proposal; and
- the impact of the Harbinger proposal on
our business.
These risks and others are described in Central’s Securities and
Exchange Commission filings, including our Annual Report on Form
10-K expected to be filed on December 11, 2014 and our Quarterly
Report on Form 10-Q filed on August 7, 2014. Central undertakes no
obligation to publicly update these forward-looking statements to
reflect new information, subsequent events or otherwise.
CENTRAL GARDEN & PET
COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 27, 2014
September 28, 2013
ASSETS
Current assets:
(in thousands)
Cash and cash equivalents $ 78,676 $ 15,156 Restricted cash 14,283
0 Short term investments 9,990 17,820 Accounts receivable, net
193,729 194,260 Inventories 326,386 391,934 Prepaid expenses,
deferred income taxes and other 48,488 53,484 Total
current assets 671,552 672,654 Plant, property and equipment, net
166,849 188,913 Goodwill 208,233 205,756 Other intangible assets,
net 87,997 79,868 Other assets 14,096 13,969 Total $
1,148,727 $ 1,161,160
LIABILITIES AND EQUITY Current
liabilities: Accounts payable $ 88,428 $ 103,569 Accrued expenses
84,379 78,618 Current portion of long-term debt 291
142 Total current liabilities 173,098 182,329 Long-term debt
449,948 472,445 Deferred income taxes and other long-term
obligations 39,228 36,362
Equity:
Common stock 124 122 Class A common stock 369 353 Class B stock 16
16 Additional paid-in capital 396,586 389,153 Retained earnings
86,396 77,592 Accumulated other comprehensive income 1,232
1,442 Total Central Garden & Pet shareholders’ equity
484,723 468,678 Noncontrolling interest 1,730 1,346
Total equity 486,453 470,024 Total $ 1,148,727 $
1,161,160
CENTRAL GARDEN & PET
COMPANY
CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
Three Months Ended Fiscal Year Ended
September 27,2014
September 28,2013
September 27,2014
September 28,2013
(in thousands, except per share
amounts)
Net sales $ 374,238 $ 368,837 $ 1,604,357 $ 1,653,633 Cost
of goods sold and occupancy
266,682
287,530 1,150,333
1,189,731 Gross profit
107,556
81,307 454,024 463,902 Selling, general and administrative expenses
106,183 99,987 397,811 416,038 Goodwill impairments
3
7,709 0 7,709
Income (loss) from operations
1,373
(26,389 ) 56,213 40,155 Interest expense (9,793 ) (10,513 ) (42,844
) (43,112 ) Interest income 51 22 94 142 Other income (expense)
7
(1 ) 403 (677 ) Income (loss)
before income taxes and noncontrolling interest (8,362 ) (36,881 )
13,866 (3,492 ) Income tax expense (benefit) (4,172 )
(13,962 ) 4,045 (2,592 ) Income (loss)
including noncontrolling interest (4,190 ) (22,919 ) 9,821 (900 )
Net income attributable to noncontrolling interest (120 )
(338 ) 1,017 1,029 Net income
(loss) attributable to Central Garden & Pet Company $ (4,070 )
$ (22,581 ) $ 8,804 $ (1,929 ) Net income (loss) per
share attributable to Central Garden & Pet Company: Basic $
(0.08 ) $ (0.47 ) $ 0.18 $ (0.04 ) Diluted $ (0.08 ) $ (0.47
) $ 0.18 $ (0.04 ) Weighted average shares used in
the computation of net income per share: Basic 49,324 48,264 48,880
48,094 Diluted 49,324 48,264 49,397 48,094
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management believes that certain non-GAAP financial measures that
exclude the impact of Garden segment charges in fiscal 2014 and
2013 and Garden segment gains recognized during the third and
fourth quarters of 2014 related to the sale of plant assets may be
useful in certain instances to provide additional meaningful
comparisons between current results and results in prior operating
periods that should be considered when assessing our ongoing
performance. The Company believes that these non-GAAP financial
measures provide useful information to investors and other users of
its financial statements, such as lenders. Management also uses
these non-GAAP financial measures in making financial, operating
and planning decisions and in evaluating the Company's performance.
While the Company's management believes that non-GAAP measurements
are useful supplemental information, such adjusted results are not
intended to replace the Company's GAAP financial results and should
be read in conjunction with those GAAP results.
CENTRAL GARDEN & PET COMPANY CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited, in
thousands, except per share amounts)
GAAP FourthQuarter 2014
GardenCharge
Gain on PlantAssets Sale
(B)
Adjusted FourthQuarter
2014
Net sales $ 374,238 $ - $ - $ 374,238 Cost of goods sold and
occupancy
266,682
266,682
Gross profit
107,556
- -
107,556
Selling, general and admin expenses 106,183
2,879 109,062 Income (loss) from
operations
1,373
- (2,879 )
(1,506
) Net loss $ (4,070 ) $ - $ (1,814 ) $ (5,884 ) Net loss per share
attributable to Central Garden & Pet Co.: Earnings per share -
Diluted $ (0.08 ) $ (0.12 ) Weighted shares outstanding
49,324 49,324 Gross margin 28.7 % 28.7 % Selling, general and
administrative expenses as a percentage of sales 28.4 % 29.1 %
Operating margin 0.4 % (0.4 %)
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited, in
thousands, except per share amounts)
GAAP FourthQuarter 2013
GardenCharge (A)
GoodwillImpairment
Adjusted FourthQuarter
2013
Net sales $ 368,837 $ 3,204 $ - $ 372,041 Cost of Goods Sold
and occupancy 287,530 (7,956 )
279,574 Gross profit 81,307 11,160 - 92,467 Selling, general
and Admin expenses 107,696 (7,710 )
99,986 Income (loss) from operations (26,389 )
11,160 7,710 (7,519 ) Net income
(loss) $ (22,581 ) $ 7,031 $ 4,857 $ (10,693 ) Net
loss per share attributable to Central Garden & Pet Co.:
Earnings per share - Diluted $ (0.47 ) $ (0.22 ) Weighted
shares outstanding 48,264 48,264 Gross margin 22.0 % 24.9 %
Selling, general and administrative expenses as a percentage of
sales 29.2 % 26.9 % Operating margin (7.2 %) (2.0 %)
GAAP to Non-GAAP Consolidated Reconciliation
(unaudited, in thousands, except per
share amounts)
For Fiscal Year Ended September 27, 2014
Fiscal 2014GAAP
Garden Charge(A)
Gain on Sale ofPlant Assets
(B)
Fiscal 2014As Adjusted
Net sales $ 1,604,357 $ 7,035 $ - $ 1,611,392 Cost of goods
sold and occupancy 1,150,333 (9,873 )
1,140,460 Gross profit 454,024 16,908 470,932
Selling, general and administrative expenses 397,811
4,875 402,686 Income from
operations $ 56,213 $ 16,908 $ (4,875 ) $ 68,246
Net income (loss) $ 8,804 $ 10,652 $ (3,071 )
$ 16,385 Net loss per share attributable to Central Garden
& Pet Co. Earnings per share – Diluted $ 0.18 $ 0.33 Weighted
shares outstanding 49,397 49,397 Gross margin 28.3 % 29.2 %
Selling, general and administrative expenses as a percentage of
sales 24.8 % 25.0 % Operating margin 3.5 % 4.2 %
GAAP to Non-GAAP Consolidated Reconciliation
(unaudited, in thousands, except per
share amounts)
For Fiscal Year Ended September 28, 2013
Fiscal 2013GAAP
Garden Charge(A)
GoodwillImpairment (C)
Fiscal 2013As Adjusted
Net sales $ 1,653,633 $ 3,204 $ - $ 1,656,837 Cost of goods
sold and occupancy 1,189,731 (7,956 )
1,181,775 Gross profit 463,902 11,160 - 475,062
Selling, general and administrative expenses & impairment
423,747 - (7,710 )
416,037 Income from operations $ 40,155 $ 11,160
$ 7,710 $ 59,025 Net income (loss) $ (1,929 )
$ 7,031 $ 4,857 $ 9,959 Earnings per share –
Diluted $ (0.04 ) $ 0.20 Weighted shares outstanding 48,094 48,781
Gross margin 28.1 % 28.7 % Selling, general and administrative
expenses as a percentage of sales 25.6 % 25.1 % Operating margin
2.4 % 3.6 %
(A) The Garden charges reflect the impact of Garden segment
charges in fiscal 2014 and 2013 related to the discontinuance of
certain products introduced in 2013.
(B) The gain on sale of plant assets reflects the gain from the
sale of plant assets during the third and fourth quarters of fiscal
2014 related to a product the garden segment will now purchase
rather than produce.
(C) The goodwill impairment charge was recognized in the fourth
quarter of fiscal 2013 related to the impairment of goodwill within
our garden segment.
Non-GAAP Consolidated Comparative Summary
(unaudited, in thousands, except per
share amounts)
Three Months EndedSeptember 27,
2014
Three Months EndedSeptember 28,
2013
Fiscal Year EndedSeptember 27,
2014
Fiscal Year EndedSeptember 28,
2013
Adjusted net sales $ 374,238 $ 372,041 $ 1,611,392 $ 1,656,837
Adjusted gross profit
107,556
92,467 470,932 475,062 Adjusted gross margin 28.7 % 24.9 % 29.2 %
28.7 % Adjusted selling, general and administrative expenses $
109,062 $ 99,986 $ 402,686 $ 416,037 Adjusted selling, general and
administrative as a percentage of sales 29.1 % 26.9 % 25.0 % 25.1 %
Adjusted income (loss) from operations
(1,506
) (7,519 ) 68,246 59,025 Adjusted operating margin (0.4 %) (2.0 %)
4.2 % 3.6 % Adjusted EPS – diluted ($0.12 ) ($0.22 ) $ 0.33 $ 0.20
Garden Segment
Fourth Quarter and Fiscal Year 2014 vs.
2013
Reconciliation GAAP to non-GAAP
(unaudited, in thousands, except per share
amounts)
Three Months EndedSeptember 27,
2014
Three Months EndedSeptember 28,
2013
Fiscal Year EndedSeptember 27,
2014
Fiscal Year EndedSeptember 28,
2013
Garden Segment: Net Sales Net
Sales Net Sales Net Sales Net Sales as reported
(GAAP) $ 157,164 $ $148,390 $ 758,852 $ 765,405
Garden charge (A)
3,204 7,035 3,204 Net Sales as adjusted $ 157,164 $ 151,594 $
765,887 $ 768,609
Three Months EndedSeptember 27,
2014
Three Months EndedSeptember 28,
2013
Fiscal Year EndedSeptember 27,
2014
Fiscal Year EndedSeptember 28,
2013
Garden Segment:
IncomefromOperations
OperatingMargin
IncomefromOperations
OperatingMargin
IncomefromOperations
OperatingMargin
IncomefromOperations
OperatingMargin
Income from operations as reported (GAAP) $ 6,441 4.1 % $ (30,805 )
(20.8 %) $ 41,020 5.4 % $ 8,286 1.1 %
Garden charge (A)
11,160 16,908 11,160
Goodwill impairment (C)
7,710 7,710
Gain on sale of fixed assets (B)
(2,879 ) (4,875 ) Income from
operations as adjusted
$
3,562
2.3
%
$
(11,935
)
(7.9
%)
$
53,053
6.9
%
$
27,156
3.5
%
(A) The Non-GAAP financial information excludes the impact of a
garden segment charges to write off inventory, account for product
returns and promotional allowances and other costs related to the
discontinuance of certain products introduced in 2013.
(B) The gain on sale of plant assets during the quarters ended
June 28, 2014 and September 27, 2014 related to a product the
garden segment will now purchase rather than produce.
(C) The goodwill impairment charge recognized in fiscal 2013
related to the impairment of goodwill within our Garden
segment.
Central Garden & Pet CompanySteve Zenker,
925-948-3657Investor Relations
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