Central Garden & Pet Company (NASDAQ: CENT)(NASDAQ: CENTA)
today announced results for its third quarter ended June 26,
2010.
The Company reported net sales of $465 million in the quarter, a
decline of three percent compared to $482 million in the comparable
fiscal 2009 period. The Company reported operating income of $52.6
million, an increase of two percent compared to $51.6 million in
the year ago period. Net interest expense was $9.8 million compared
to $5.2 million a year ago. Net income for the quarter was $25.9
million, or $0.40 per fully diluted share compared to $31.1 million
or $0.44 per fully diluted share in the year ago period. Branded
products sales decreased six percent to $382 million. Sales of
other manufacturers’ products increased ten percent to $83 million.
Depreciation and amortization was $7.2 million, the same as the
year ago period. The quarter-ending leverage ratio was 2.5x
compared to 2.7x a year ago.
“Despite a soft garden season, the quarter produced solid
results in many areas of the company,” noted William Brown,
Chairman and Chief Executive Officer of Central Garden & Pet
Company. “We are continuing to control costs, manage working
capital and drive gross profit margin. Our goal is to grow sales
and drive further margin and capital efficiency improvement across
the business while developing new programs and products that make a
difference for consumers.”
Fiscal third quarter net sales for the Garden Products segment
were $243 million, a decrease of nine percent from $267 million in
the comparable fiscal 2009 period. Operating income for Garden
Products was $30.1 million compared to $35.3 million in the year
ago period. Branded garden products sales decreased thirteen
percent to $201 million. Sales of other manufacturers’ products
increased fifteen percent to $42 million. Fiscal third quarter net
sales for the Pet Products segment were $222.7 million, an increase
of four percent from $215 million compared to the fiscal 2009
period. Operating income for the Pet Products segment was $32.6
million, compared to $29.8 million in the year ago period. Branded
pet products sales were $181.6 million, an increase of three
percent compared to last year. Sales of other manufacturers’
products were $41.1 million, an increase of six percent compared to
last year.
For the nine months ended June 26, 2010, the Company reported
net sales of $1.18 billion compared to $1.25 billion in the
comparable 2009 period, a decline of six percent. Operating income
for the period was $113.7 million compared to operating income of
$106.1 million in the year ago period. Net income for the nine
months ended June 26, 2010 was $54.6 million compared to net income
of $57.9 million in the comparable 2009 period. Earnings per
diluted share were $0.83 compared to $0.82 per diluted share in the
year ago period. Branded product sales declined eight percent to
$970 million and sales of other manufacturers’ products increased
seven percent to $206 million. Depreciation and amortization for
the nine month period was $21.7 million compared to $21.9 million
in the year ago period.
The Company will discuss its third quarter results on a
conference call today at 4:30 p.m. EDT / 1:30 p.m. PDT. Individuals
may access the call by dialing 1-888-713-4199 and passcode 4145
4989 (domestic) or 1-617-213-4861 and passcode 4145 4989
(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=PXPR8NGUJ.
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 4325 6896 (domestic) and
1-617-801-6888 and passcode 4325 6896 (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 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
Central’s Annual Report on Form 10-K, filed November 20, 2009, and
Quarterly Report on Form 10-Q, filed May 5, 2010, 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 26,
June 27, June 26, June 27, 2010
2009 2010 2009 Net Sales
$ 465,486 $ 482,162 $ 1,176,658 $ 1,251,129 Cost of Goods Sold and
Occupancy 302,712 317,108
764,926 840,041 Gross Profit 162,774
165,054 411,732 411,088 Selling, General and Administrative
Expenses 110,134 113,484 298,049
305,028 Income from Operations 52,640
51,570 113,683 106,060 Interest Expense (9,797 ) (5,211 )
(24,555 ) (17,846 ) Interest Income 1 12 12 614 Other Income
42 1,161 428 80
Income Before Income Taxes and
Noncontrolling Interest
42,886 47,532 89,568 88,908 Income Taxes 15,860
15,371 33,026 29,498
Income Including Noncontrolling Interest 27,026 32,161
56,542 59,410 Net Income Attributable to Noncontrolling
Interest 1,153 1,085 1,943
1,498
Net Income Attributable to Central
Garden & Pet Company
$
25,873
$
31,076
$
54,599
$
57,912
Net Income Per Share Attributable
to Central Garden & Pet Company:
Basic $ 0.41 $ 0.45 $ 0.84 $ 0.83 Diluted $ 0.40 $ 0.44 $
0.83 $ 0.82 Weighted Average Shares Outstanding Basic
63,810 69,345 64,879 69,885 Diluted 64,606 70,449 65,716 70,798
Central Garden & Pet
Company
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
June 26,
2010
June 27,
2009
September 26,
2009
Assets Current Assets: Cash and Cash Equivalents $ 91,623 $
25,390 $ 85,668 Accounts Receivable 223,845 262,735 206,565
Inventories 306,118 313,820 284,834 Prepaid Expenses and
Other Current Assets
30,643 43,117 44,425 Total Current Assets 652,229 645,062
621,492 Property and Equipment - Net 162,352 165,519 164,734
Goodwill 208,630 206,873 207,749 Other Intangible Assets –
Net 99,828 104,318 103,366 Deferred Income Taxes and Other Assets
60,668 80,539 53,584 Total $ 1,183,707 $ 1,202,311 $
1,150,925 Liabilities and Shareholders’ Equity
Current Liabilities: Accounts Payable $ 119,869 $ 117,083 $ 108,836
Accrued Expenses 101,312 114,432 82,143 Current Portion of
Long-Term Debt 201 3,311 3,270 Total Current Liabilities
221,382 234,826 194,249 Long-Term Debt 400,138 405,676
404,815 Other Long-Term Obligations 4,223 4,685 4,526 Shareholders’
Equity 557,964 557,124 547,335 Total $ 1,183,707 $ 1,202,311
$ 1,150,925
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Sep 2023 to Sep 2024