Fiscal 2021 net sales increased 23% to $3.3
billion Fiscal 2021 diluted EPS of $2.75 vs. $2.20 for fiscal 2020
Initial outlook for fiscal 2022 EPS of $3.10 or better
Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA)
("Central"), a market leader in the Garden and Pet industries,
today announced results for its fourth quarter and fiscal year 2021
ended September 25, 2021.
“Central delivered another year of record results, thanks to the
continued strength of the Garden and Pet industries and our teams'
relentless execution as they adapt to the ever-changing dynamics of
the pandemic. We made meaningful progress against our Central to
Home strategy, investing in capabilities such as consumer insights,
digital marketing and innovation, to drive our organic growth.
Moreover, we added four acquisitions to the Central portfolio,”
said Tim Cofer, CEO of Central Garden & Pet. “As we look to
fiscal 2022, we expect to face continued inflationary pressures and
supply chain disruption. However, I am confident in the dedication
of our people and their ability to perform in this challenging
environment.”
Fiscal 2021 Results
Net sales of $3.3 billion increased 23% from $2.7 billion in the
prior year, driven by the Company's four recent acquisitions,
Hopewell Nursery, Green Garden, DoMyOwn and D&D, as well as
organic growth in both the Garden and Pet segments. Organic net
sales increased 13%, with the most significant contributions coming
from dog treats and chews, distribution, wild bird feed, small
animal supplies and outdoor cushions.
Net sales for the Pet segment for fiscal 2021 increased 13% to
$1.9 billion compared to $1.7 billion a year ago, and net sales for
the Garden segment increased 38% to $1.4 billion compared to $1.0
billion in the prior year.
Despite significant inflationary headwinds and the impact of
inventory-related purchase accounting, gross margin was largely in
line with the prior year, decreasing 20 basis points to 29.4%. The
Company was able to mostly offset these headwinds through a
combination of pricing actions and gross productivity efforts as
well as favorable product mix.
Operating income of $254 million increased 29% from $198 million
in fiscal 2020. Operating margin increased 40 basis points to 7.7%
compared to 7.3% a year ago, due to improved overhead leverage,
despite rising logistics costs and heightened investment
spending.
Other expense was $1.5 million compared to $4.3 million in the
prior year. The difference was due primarily to impairment in
fiscal 2020 on two minority investments impacted by the COVID-19
pandemic.
Net interest expense was $58 million compared to $40 million in
the prior year. The increase was mainly due to incremental interest
expense related to recognizing the impacts of the call premium,
unamortized debt issuance cost and double interest on the debt
retired during the first quarter of fiscal 2021 as well as higher
debt outstanding.
Net income was $152 million, an increase of 26% compared to $121
million a year ago. Diluted earnings per share grew 25% to $2.75
compared to $2.20 in the prior year driven by strong operating
results partially offset by a 1% increase in the number of shares
outstanding and an increase in the Company's income tax rate, as
compared to the prior year.
Adjusted EBITDA was $329 million, an increase of 30% compared to
fiscal 2020.
The effective tax rate for the fiscal year was 21.6% compared to
21.0% in the prior year.
Fourth Quarter Fiscal 2021 Results
Net sales increased 9% to $739 million compared to $676 million
in the fourth quarter of fiscal 2020, driven by the Company's four
recent acquisitions, partially offset by an organic sales decline
of 1%. The organic sales decline was principally due to
unprecedented growth in net sales in the fourth quarter of fiscal
2020. On a two-year compound annualized growth rate basis, organic
sales increased 11% in the fourth quarter.
Gross margin was largely in line with the prior year quarter,
decreasing 20 basis points to 28.8%. The Company was able to mostly
offset substantial inflationary cost pressure through a combination
of aggressive pricing actions and gross productivity efforts as
well as favorable product mix.
Operating income was $10 million compared to $25 million in the
fourth quarter of fiscal 2020. Operating margin was 1.3%, a
decrease of 240 basis points compared to 3.7% in the prior year
quarter, primarily driven by increasing costs for key commodities,
freight and labor as well as heightened strategic investment
spending, partially offset by pricing actions and favorable product
mix as well as improved overhead leverage.
Other expense was $1.9 million in the fourth quarter of fiscal
2021, compared to $35 thousand in the prior year quarter, mainly
due to unfavorable minority investment activity.
Net interest expense was $14 million for the fourth quarter
compared to $11 million in the prior-year period, primarily due to
higher debt outstanding.
This resulted in a net loss of $3.0 million compared to net
income of $14 million in the fourth quarter of fiscal 2020, and a
loss per share of $0.06 compared to earnings per diluted share of
$0.25 in the prior year quarter.
Adjusted EBITDA for the quarter was $32 million, down 23% from
$41 million in the fourth quarter of fiscal 2020.
Pet Segment Fourth Quarter Fiscal 2021 Results
Fourth quarter net sales for the Pet segment increased 3% to
$459 million. The most significant contributions to the segment's
growth came from dog treats and chews, distribution, outdoor
cushions and animal health. On a two-year compound annualized
growth rate basis, sales increased 14% in the fourth quarter.
The Pet segment’s operating income was $32 million, compared to
$36 million in the prior year quarter. Operating margin of 6.9%
reflected a decrease of 110 basis points compared to 8.0% in the
fourth quarter of fiscal 2020, primarily due to significant cost
inflation across key commodities, freight and labor as well as
heightened investment levels to build capacity and drive future
growth, partially offset by pricing actions and favorable product
mix.
Garden Segment Fourth Quarter Fiscal 2021 Results
Net sales for the Garden segment increased 21% to $280 million
driven by a $78 million contribution from the Company's recent
acquisitions. On an organic basis, net sales for the Garden segment
declined 13%, as continued strength in wild bird feed was more than
offset by softness across the rest of the Garden portfolio. On a
two-year compound annualized growth rate basis, organic Garden
segment sales increased 6% in the fourth quarter.
The Garden segment’s operating income was $1.1 million as
compared to $14 million in the fourth quarter of fiscal 2020.
Operating margin was 0.4%, down 570 basis points compared to 6.1%
in the prior year quarter, primarily driven by significant cost
inflation and investment which more than offset of pricing and
productivity initiatives.
Additional Information
At September 25, 2021, the Company’s cash and cash equivalents
was $426 million, compared to $653 million a year ago. Cash flow
from operations for fiscal 2021 was $251 million, compared to $264
million in the prior year.
Total debt at September 25, 2021 was $1.2 billion compared to
$700 million at September 26, 2020. The Company's leverage ratio,
as defined in the Company's credit agreement, at the end of the
quarter and the fiscal year was 3.0x compared to 2.2x in the prior
year.
Outlook for Fiscal 2022
The Company currently projects fiscal 2022 GAAP EPS of $3.10 or
better. The outlook includes the Company's anticipated investments
in capacity expansion and automation at or slightly above fiscal
2021 levels, increased investments in brand building and eCommerce
to drive sustainable growth, increasing costs for key commodities,
freight and labor, muted consumer demand patterns following
extraordinary demand spanning the last two fiscal years, as well as
pricing actions across the Company's portfolio to help mitigate
inflationary headwinds. The Company expects the impact of the
headwinds to be more heavily front-half weighted.
Conference Call
The Company will host a conference call today at 4:30 p.m.
Eastern Time | 1:30 p.m. Pacific Time to discuss its fourth quarter
and fiscal year 2021 results. The conference call and related
materials can be accessed on the Company's website,
http://ir.central.com.
Alternatively, to listen to the call by telephone, dial (201)
689-8345 (domestic and international) using confirmation
#13723027.
About Central Garden & Pet
Central Garden & Pet (NASDAQ: CENT) (NASDAQ: CENTA)
understands that home is central to life and has proudly nurtured
happy and healthy homes for over 40 years. With fiscal 2021 net
sales of $3.3 billion, Central is on a mission to lead the future
of the pet and garden industries. The Company’s innovative and
trusted products are dedicated to helping lawns grow greener,
gardens bloom bigger, pets live healthier and communities grow
stronger. Central is home to a leading portfolio of more than 65
high-quality brands including Pennington, Nylabone, Kaytee, Amdro
and Aqueon, strong manufacturing and distribution capabilities and
a passionate, entrepreneurial growth culture. Central Garden &
Pet is based in Walnut Creek, California and has over 7,000
employees across North America and Europe. For additional
information about Central, please visit the Company’s website at
www.central.com.
Safe Harbor Statement
“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 increased
investment levels to drive capacity expansion, brand building and
eCommerce, increases in labor and freight cost as well as key
commodities, price increases, in addition to resuming more normal
levels of consumer activity and their impact on future growth, and
earnings guidance for fiscal year 2022, 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:
- our ability to successfully manage the impact of COVID-19 on
our business, including but not limited to, the impact on our
workforce, operations, fill rates, supply chain, demand for our
products and services, and our financial results and
condition;
- the potential for future reductions in demand for product
categories that benefited from the COVID-19 pandemic;
- the success of our Central to Home strategy;
- risks associated with our acquisition strategy, including our
ability to successfully integrate acquisitions and the impact of
purchase accounting on our financial results;
- inflation and other adverse macro-economic conditions;
- fluctuations in market prices for seeds and grains and other
raw materials;
- fluctuations in energy prices, fuel and related petrochemical
costs;
- our inability to pass through cost increases in a timely
manner;
- supply chain delays and interruptions resulting in lost sales,
reduced fill rates and service levels and delays in expanding
capacity and automating processes;
- adverse weather conditions;
- seasonality and fluctuations in our operating results and cash
flow;
- supply shortages in pet birds, small animals and fish;
- dependence on a small number of customers for a significant
portion of our business;
- impacts of tariffs or a trade war;
- consolidation trends in the retail industry;
- declines in consumer spending during economic downturns;
- risks associated with new product introductions, including the
risk that our new products will not produce sufficient sales to
recoup our investment;
- competition in our industries;
- continuing implementation of an enterprise resource planning
information technology system;
- potential environmental liabilities;
- risk associated with international sourcing;
- access to and cost of additional capital;
- potential goodwill or intangible asset impairment;
- our dependence upon our key executives and our ability to
recruit employees generally;
- our inability to protect our trademarks and other proprietary
rights;
- litigation and product liability claims;
- regulatory issues;
- the impact of product recalls;
- potential costs and risks associated with actual or potential
cyber attacks;
- potential dilution from issuance of authorized shares;
- the voting power associated with our Class B stock; and
- the impact of new accounting regulations and the possibility
our effective tax rate will increase as a result of future changes
in the corporate tax rate or other tax law changes.
These risks and others are described in the Company’s Securities
and Exchange Commission filings. The Company undertakes no
obligation to publicly update these forward-looking statements to
reflect new information, subsequent events or otherwise.
CENTRAL GARDEN & PET
COMPANY
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
ASSETS
September 25, 2021
September 26, 2020
Current assets:
Cash and cash equivalents
$
426,422
$
652,712
Restricted cash
13,100
13,685
Accounts receivable, net
385,384
391,773
Inventories, net
685,237
439,615
Prepaid expenses and other
33,514
27,498
Total current assets
1,543,657
1,525,283
Plant, property and equipment, net
328,571
244,667
Goodwill
369,391
289,955
Other intangible assets, net
134,431
134,924
Operating lease right-of-use assets
165,602
115,882
Other assets
575,028
28,653
Total
$
3,116,680
$
2,339,364
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
245,542
$
205,234
Accrued expenses
234,965
201,436
Current lease liabilities
40,731
33,495
Current portion of long-term debt
1,081
97
Total current liabilities
522,319
440,262
Long-term debt
1,184,683
693,956
Long-term lease liabilities
130,125
86,516
Deferred income taxes and other long-term
obligations
56,012
40,956
Equity:
Common stock
113
113
Class A common stock
423
419
Class B stock
16
16
Additional paid-in capital
576,446
566,883
Retained earnings
646,082
510,781
Accumulated other comprehensive loss
(831
)
(1,409
)
Total Central Garden & Pet
shareholders’ equity
1,222,249
1,076,803
Noncontrolling interest
1,292
871
Total equity
1,223,541
1,077,674
Total
$
3,116,680
$
2,339,364
CENTRAL GARDEN & PET
COMPANY
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share amounts)
(unaudited)
Three Months Ended
Fiscal Year Ended
September 25, 2021
September 26, 2020
September 25, 2021
September 26, 2020
Net sales
$
739,127
$
675,969
$
3,303,684
$
2,695,509
Cost of goods sold and occupancy
526,356
479,854
2,332,783
1,898,951
Gross profit
212,771
196,115
970,901
796,558
Selling, general and administrative
expenses
203,166
170,948
716,405
598,581
Operating income
9,605
25,167
254,496
197,977
Interest expense
(14,269
)
(10,793
)
(58,597
)
(44,016
)
Interest income
93
248
415
4,027
Other expense, net
(1,876
)
(35
)
(1,506
)
(4,250
)
Income (loss) before income taxes and
noncontrolling interest
(6,447
)
14,587
194,808
153,738
Income tax (benefit) expense
(3,225
)
1,007
42,035
32,218
Net income (loss) including noncontrolling
interest
(3,222
)
13,580
152,773
121,520
Net income (loss) attributable to
noncontrolling interest
(215
)
(9
)
1,027
844
Net income (loss) attributable to Central
Garden & Pet Company
$
(3,007
)
$
13,589
$
151,746
$
120,676
Net income (loss) per share attributable
to Central Garden & Pet Company:
Basic
$
(0.06
)
$
0.25
$
2.81
$
2.23
Diluted
$
(0.06
)
$
0.25
$
2.75
$
2.20
Weighted average shares used in the
computation of net income per share:
Basic
53,926
53,619
53,914
54,008
Diluted
53,926
54,515
55,248
54,738
CENTRAL GARDEN & PET
COMPANY
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Fiscal Year Ended
September 25, 2021
September 26, 2020
September 28, 2019
(in thousands)
Cash flows from operating activities:
Net income
$
152,773
$
121,520
$
92,647
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
74,727
55,359
50,828
Amortization of deferred financing
costs
2,208
1,873
1,832
Non-cash lease expense
41,044
35,025
—
Stock-based compensation
23,127
18,982
14,662
Debt extinguishment costs
8,577
—
—
Loss on sale of business
2,611
—
—
Deferred income taxes
(14,744
)
(6,615
)
6,659
(Gain) loss on disposal of property, plant
and equipment
(256
)
1,171
730
Asset impairments
—
3,566
—
Other
4,716
4,675
(570
)
Changes in assets and liabilities
(excluding businesses acquired):
Receivables
69,135
(91,470
)
1,485
Inventories
(132,170
)
27,351
(3,696
)
Prepaid expenses and other assets
13,370
4,683
(2,643
)
Accounts payable
24,583
52,047
30,473
Accrued expenses
6,734
72,278
12,261
Other long-term obligations
14,731
(83
)
306
Operating lease liabilities
(40,322
)
(36,089
)
—
Net cash provided by operating
activities
250,844
264,273
204,974
Cash flows from investing activities:
Additions to property, plant and
equipment
(80,333
)
(43,055
)
(31,577
)
Businesses acquired, net of cash
acquired
(820,453
)
—
(41,161
)
Proceeds from sale of business
2,400
—
—
Payments for investments
(500
)
(4,439
)
(2,010
)
Other investing activities
(473
)
(612
)
(1,515
)
Net cash used in investing activities
(899,359
)
(48,106
)
(76,263
)
Cash flows from financing activities:
Repayments on revolving line of credit
(858,000
)
(200,000
)
—
Borrowings on revolving line of credit
858,000
200,000
—
Premium paid on extinguishment of debt
(6,124
)
—
—
Repayments of long-term debt
(430,401
)
(113
)
(46,193
)
Issuance of long-term debt
900,000
—
—
Repurchase of common stock, including
shares surrendered for tax withholding
(27,892
)
(59,129
)
(62,974
)
Payments of contingent consideration
(373
)
(227
)
(170
)
Distribution to noncontrolling
interest
(606
)
(143
)
(76
)
Payment of financing costs
(14,129
)
(948
)
(1,352
)
Net cash provided by (used in) financing
activities
420,475
(60,560
)
(110,765
)
Effect of exchange rate changes on cash
and equivalents
1,165
89
(250
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(226,875
)
155,696
17,696
Cash, cash equivalents and restricted cash
at beginning of year
666,397
510,701
493,005
Cash, cash equivalents and restricted cash
at end of year
$
439,522
$
666,397
$
510,701
Supplemental information:
Cash paid for interest
$
42,762
$
43,892
$
42,702
Cash paid for income taxes – net of
refunds
70,831
25,537
14,958
Non-cash investing and financing
activities:
Capital expenditures incurred but not
paid
6,150
6,260
2,630
Liability for contingent performance based
payments
610
227
(685
)
Shares of common stock repurchased but not
settled
2112
—
458
Operating lease right of use assets
recognized at ASC 842 transition
—
111,298
—
Operating lease liabilities recognized at
ASC 842 transition
—
115,376
—
Operating lease right of use assets
recognized after ASC 842 transition
90,799
39,605
—
Use of Non-GAAP Financial Measures
We report our financial results in accordance with accounting
principles generally accepted in the United States (GAAP). However,
to supplement the financial results prepared in accordance with
GAAP, we use non-GAAP financial measures including adjusted EBITDA,
organic sales; and non-GAAP net income and diluted net income per
share.
Management believes these non-GAAP financial measures that
exclude the impact of specific items (described below) may be
useful to investors in their assessment of our ongoing operating
performance and provide additional meaningful comparisons between
current results and results in prior operating periods.
Adjusted EBITDA is defined by us as income before income tax,
net other expense, net interest expense and depreciation and
amortization (or operating income plus depreciation and
amortization expense). We present adjusted EBITDA because we
believe that adjusted EBITDA is a useful supplemental measure in
evaluating the cash flows and performance of our business and
provides greater transparency into our results of operations.
Adjusted EBITDA is used by our management to perform such
evaluation. Adjusted EBITDA should not be considered in isolation
or as a substitute for cash flow from operations, income from
operations or other income statement measures prepared in
accordance with GAAP. We believe that adjusted EBITDA is frequently
used by investors, securities analysts and other interested parties
in their evaluation of companies, many of which present adjusted
EBITDA when reporting their results. Other companies may calculate
adjusted EBITDA differently and it may not be comparable.
We have also provided organic net sales, a non-GAAP measure that
excludes the impact of businesses purchased or exited in the prior
12 months, because we believe it permits investors to better
understand the performance of our historical business without the
impact of recent acquisitions or dispositions.
The reconciliations of these non-GAAP measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP are shown in the tables below. We believe that
the non-GAAP financial measures provide useful information to
investors and other users of our financial statements, by allowing
for greater transparency in the review of our financial and
operating performance. Management also uses these non-GAAP
financial measures in making financial, operating and planning
decisions and in evaluating our performance, and we believe these
measures similarly may be useful to investors in evaluating our
financial and operating performance and the trends in our business
from management's point of view. While our management believes that
non-GAAP measurements are useful supplemental information, such
adjusted results are not intended to replace our GAAP financial
results and should be read in conjunction with those GAAP results.
Management does not attempt to provide reconciliations of
forward-looking non-GAAP EPS guidance to projected GAAP EPS
guidance because the combined impact and timing of recognition of
these potential charges or gains is inherent uncertain and
difficult to predict and is unavailable without unreasonable
efforts. In addition, the Company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of financial performance.
Non-GAAP financial measures reflect adjustments based on the
following items:
- Incremental expenses from note redemption and issuance: we have
excluded the impact of the incremental expenses incurred from the
note redemption and issuance as they represent an infrequent
transaction that occurs in limited circumstances that impacts the
comparability between operating periods. We believe the adjustment
of these expenses supplements the GAAP information with a measure
that may be used to assess the sustainability of our operating
performance.
- Loss on sale of business: we have excluded the impact of the
loss on the sale of a business as it represents an infrequent
transaction that occurs in limited circumstances that impacts the
comparability between operating periods. We believe the adjustment
of this loss supplements the GAAP information with a measure that
may be used to assess the sustainability of our operating
performance.
From time to time in the future, there may be other items that
we may exclude if we believe that doing so is consistent with the
goal of providing useful information to investors and
management.
The non-GAAP adjustments made reflect the following:
(1) During the first quarter of fiscal 2021,
we issued $500 aggregate principal amount of 4.125% senior notes
due October 2030. We used a portion of the proceeds to redeem all
of our outstanding 6.125% senior notes due 2023. As a result of our
redemption of the 2023 Notes, we incurred incremental expenses of
approximately $10.0 million, comprised of a call premium payment of
$6.1 million, overlapping interest expense of approximately $1.4
million and a $2.5 million non-cash charge for the write-off of
unamortized financing costs in interest expense. These amounts are
included in interest expense in the condensed consolidated
statements of operations.
(2) During the first quarter of fiscal 2021,
we recognized a loss of $2.6 million, included in selling, general
and administrative expense in the consolidated statement of
operations, from the sale of our Breeder's Choice business unit
after concluding it was not a strategic business for our Pet
segment.
(3) During the third quarter of fiscal 2020,
we recorded a non-cash impairment charge for two private company
investments. The impairment was recorded as part of other (expense)
income.
GAAP to Non-GAAP
Reconciliation
For the Fiscal Year
Ended
(in thousands, except per
share amounts
Net Income and Diluted Net Income Per
Share Reconciliation
September 25, 2021
September 26, 2020
GAAP net income attributable to Central
Garden & Pet Company
$
151,746
$
120,676
Incremental expenses from note redemption
and issuance
(1
)
9,952
—
Loss on sale of business
(2
)
2,611
—
Investment Impairments
(3
)
—
3,566
Tax effect of incremental expenses, loss
on sale and impairment
(2,711
)
(747
)
Non-GAAP net income attributable to
Central Garden & Pet Company
$
161,598
$
123,495
GAAP diluted net income per share
$
2.75
$
2.20
Non-GAAP diluted net income per share
$
2.92
$
2.26
Shares used in GAAP and non-GAAP diluted
net earnings per share calculation
55,248
54,738
Organic Net Sales Reconciliation
We have provided organic net sales, a non-GAAP measure that
excludes the impact of recent acquisitions and dispositions,
because we believe it permits investors to better understand the
performance of our historical business. We define organic net sales
as net sales from our historical business derived by excluding the
net sales from businesses acquired or exited in the preceding 12
months. After an acquired business has been part of our
consolidated results for 12 months, the change in net sales
thereafter is considered part of the increase or decrease in
organic net sales.
CONSOLIDATED
GAAP to Non-GAAP
Reconciliation
For the Fiscal Year Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestiture on increase in net sales
Net sales organic
(in millions)
Reported net sales FY 2021
$
3,303.7
$
291.8
$
3,011.9
Reported net sales FY 2020
2,695.5
18.9
2,676.6
$ increase
$
608.2
$
272.9
$
335.3
% increase
22.6
%
12.5
%
PET
GAAP to Non-GAAP
Reconciliation
For the Fiscal Year Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestitures on increase in net sales
Net sales organic
(in millions)
Reported net sales FY 2021
$
1,894.9
$
—
$
1,894.9
Reported net sales FY 2020
1,678.0
18.9
1,659.1
$ increase
$
216.9
$
(18.9
)
$
235.8
% increase
12.9
%
14.2
%
GARDEN
GAAP to Non-GAAP
Reconciliation
For the Fiscal Year Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestitures on increase in net sales
Net sales organic
(in millions)
Reported net sales FY 2021
$
1,408.8
$
291.8
$
1,117.0
Reported net sales FY 2020
1,017.5
—
1,017.5
$ increase
$
391.3
$
291.8
$
99.5
% increase
38.5
%
9.8
%
CONSOLIDATED
GAAP to Non-GAAP
Reconciliation
For the Quarter Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestiture on increase in net sales
Net sales organic
(in millions)
Reported net sales Q4 2021
$
739.1
$
78.4
$
660.7
Reported net sales Q4 2020
676.0
5.5
670.5
$ increase
$
63.1
$
72.9
$
(9.8
)
% increase
9.3
%
(1.5
)%
PET
GAAP to Non-GAAP
Reconciliation
For the Quarter Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestitures on increase in net sales
Net sales organic
(in millions)
Reported net sales Q4 2021
$
458.7
$
—
$
458.7
Reported net sales Q4 2020
444.3
5.5
438.8
$ increase
$
14.4
$
(5.5
)
$
19.9
% increase
3.2
%
4.5
%
GARDEN
GAAP to Non-GAAP
Reconciliation
For the Quarter Ended
September 25, 2021
Net sales (GAAP)
Effect of acquisitions &
divestitures on increase in net sales
Net sales organic
(in millions)
Reported net sales Q4 2021
$
280.4
$
78.4
$
202.0
Reported net sales Q4 2020
231.7
—
231.7
$ increase
$
48.7
$
78.4
$
(29.7
)
% increase
21.0
%
(12.8
)%
Adjusted EBITDA Reconciliation
The following is a reconciliation of net income to adjusted
EBITDA:
GAAP to non-GAAP
Reconciliation
Fiscal Year Ended September
25, 2021
(in thousands)
Adjusted EBITDA Reconciliation
Total
Garden
Pet
Corp
Net income attributable to Central Garden
& Pet
$
151,746
—
—
—
Interest expense, net
58,182
—
—
—
Other expense
1,506
—
—
—
Income tax expense
42,035
—
—
—
Net income attributable to noncontrolling
interest
1,027
—
—
—
Sum of items below operating income
102,750
—
—
—
Income (loss) from operations
254,496
138,755
208,201
(92,460
)
Depreciation & amortization
74,727
33,050
36,952
4,725
Adjusted EBITDA
$
329,223
$
171,805
$
245,153
$
(87,735
)
GAAP to non-GAAP
Reconciliation
Fiscal Year Ended September
26, 2020
(in thousands)
Adjusted EBITDA Reconciliation
Total
Garden
Pet
Corp
Net income attributable to Central Garden
& Pet
$
120,676
—
—
—
Interest expense, net
39,989
—
—
—
Other income
4,250
—
—
—
Income tax expense
32,218
—
—
—
Net loss attributable to noncontrolling
interest
844
—
—
—
Sum of items below operating income
77,301
—
—
—
Income (loss) from operations
197,977
115,413
171,369
(88,805
)
Depreciation & amortization
55,359
10,590
38,116
6,653
Adjusted EBITDA
$
253,336
$
126,003
$
209,485
$
(82,152
)
GAAP to non-GAAP
Reconciliation
Quarter Ended September 25,
2021
(in thousands)
Adjusted EBITDA Reconciliation
Total
Garden
Pet
Corp
Net income attributable to Central Garden
& Pet
$
(3,007
)
—
—
—
Interest expense, net
14,176
—
—
—
Other expense
1,876
—
—
—
Income tax expense
(3,225
)
—
—
—
Net loss attributable to noncontrolling
interest
(215
)
—
—
—
Sum of items below operating income
12,612
—
—
—
Income (loss) from operations
9,605
1,105
31,597
(23,097
)
Depreciation & amortization
21,968
10,800
10,025
1,143
Adjusted EBITDA
$
31,573
$
11,905
$
41,622
$
(21,954
)
GAAP to non-GAAP
Reconciliation
Quarter Ended September 26,
2020
(in thousands)
Adjusted EBITDA Reconciliation
Total
Garden
Pet
Corp
Net income attributable to Central Garden
& Pet
$
13,589
—
—
—
Interest expense, net
10,545
—
—
—
Other income
35
—
—
—
Income tax expense
1,007
—
—
—
Net loss attributable to noncontrolling
interest
(9
)
—
—
—
Sum of items below operating income
11,578
—
—
—
Income (loss) from operations
25,167
14,194
35,550
(24,577
)
Depreciation & amortization
15,761
2,619
10,625
2,517
Adjusted EBITDA
$
40,928
$
16,813
$
46,175
$
(22,060
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211122006596/en/
Investor Relations Contact: Friederike Edelmann VP of
Investor Relations (925) 412 6726
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