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 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 4,300 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 forecasted cost reductions, margin improvements and improved financial performance from the Company’s transformation initiatives, 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, to be filed in the next several business days, 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
CONSOLIDATED BALANCE SHEETS
|September 24, 2011||September 25, 2010|
|ASSETSCurrent assets:||(in thousands)|
|Cash and cash equivalents||$||12,031||$||91,460|
|Short term investments||17,820||15,320|
|Accounts receivable, net||195,417||192,422|
|Prepaid expenses, deferred income taxes and other||47,772||42,733|
|Total current assets||602,586||627,899|
|Land, buildings, improvements and equipment:|
|Buildings and improvements||100,439||95,664|
|Machinery and warehouse equipment||168,475||150,215|
|Office furniture and equipment||108,967||91,294|
|Less accumulated depreciation and amortization||(217,283||)||(184,848||)|
|Land, buildings, improvements and equipment–net||176,402||165,281|
|Other intangible assets, net||84,526||86,798|
|Deferred income taxes and other assets||19,266||43,587|
|LIABILITIES AND EQUITY|
|Current portion of long-term debt||279||165|
|Total current liabilities||191,931||194,194|
|Deferred taxes and other long-term obligations||8,960||4,441|
|Commitments and contingencies|
|Class A common stock||359||437|
|Class B stock||16||16|
|Additional paid-in capital||396,208||483,817|
|Accumulated other comprehensive income||1,019||944|
|Total Central Garden & Pet shareholders’ equity||456,776||530,696|
Central Garden & Pet Company
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
|Three Months Ended||Fiscal Year Ended|
| September 24,
| September 25,
September 24, 2011
September 25, 2010
|Cost of goods sold and occupancy||278,702||243,556||1,134,733||1,008,482|
|Selling, general and administrative expenses||102,770||96,043||408,744||394,092|
|Intangible asset impairments||0||12,000||0||12,000|
|Income (loss) from operations||(4,566||)||(4,609||)||85,175||109,074|
|Income (loss) before income taxes and noncontrolling interest||(13,883||)||(13,662||)||47,977||75,906|
|Income including noncontrolling interest||(11,526||)||(8,746||)||28,382||47,796|
|Net income attributable to noncontrolling interest||(594||)||20||59||1,963|
|Net income attributable to Central Garden & Pet Company||$||(10,932||)||$||(8,766||)||$||28,323||$||45,833|
|Net income per share attributable to Central Garden & Pet Company:|
|Weighted average shares used in the computation of net income per share:|
Non-GAAP Financial MeasuresThis press release includes adjustments to operating income (loss), GAAP net income (loss), and earnings per share for the fourth quarter and fiscal year ended September 25, 2010. Adjusted operating income (loss), net income (loss) and adjusted earnings per share, are non-GAAP financial measures which exclude the impact of the impairment of an intangible asset. We believe that they are useful as supplemental measures in assessing the operating performance of our business. These measures are used by our management, including our chief operating decision maker, to evaluate business results. We exclude impairment charges which we believe are not representative of the on-going results of operations of our business and are not used to determine compliance with the financial covenants in our credit facility and indenture.
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