This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Central Garden & Pet Company Announces Fiscal 2012 Second Quarter Results

Stock quotes in this article: CENT, CENTA

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 second quarter 2012 results. The conference call will be accessible through the investor relations section of Central’s website, http://www.central.com.

Alternatively, to listen to the call by telephone, dial 1-412-317-6789 and enter passcode 10012406. A replay of the call will be available for three weeks by dialing 1-412-317-0088 (domestic and international) and entering passcode 10012406.

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 POTTERY®, 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 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 4,000 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 improved efficiency and profitability 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, filed on November 21, 2011, Central’s Quarterly Report on Form 10-Q, expected to be filed on May 3, 2012, as well as 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
(in thousands, except per share amounts)
(unaudited)

 

  Three Months Ended   Six Months Ended

March 26, 2011

 

March 24, 2012

March 26, 2011

 

March 24, 2012

Net sales $ 485,724 $ 466,903 $ 767,443 $ 768,969
Cost of goods sold and occupancy   322,455     319,207     521,117     540,535  
Gross profit 163,269 147,696 246,326 228,434
Selling, general and administrative expenses   103,639     102,474     193,179     194,492  
Income from operations 59,630 45,222 53,147 33,942
Interest expense (9,343 ) (10,468 ) (18,382 ) (20,015 )
Interest income 60 28 193 56
Other income (expense)  

204

    (7 )   (202 )   (121 )
Income before income taxes and noncontrolling interest 50,551 34,775 34,756 13,862
Income taxes   18,190     12,808     12,073     5,162  
Income including noncontrolling interest 32,361 21,967 22,683 8,700
Net income attributable to noncontrolling interest   595     344     509     167  
Net income attributable to Central Garden & Pet Company $ 31,766   $ 21,623   $ 22,174   $ 8,533  
 
Net income per share attributable to Central Garden & Pet Company:
Basic $ 0.55   $ 0.46   $ 0.37   $ 0.18  
Diluted $ 0.54   $ 0.45   $ 0.37   $ 0.18  
 
Weighted average shares used in the computation of net income per share:
Basic 57,955 47,343 59,447 47,576
Diluted 58,433 48,036 59,961 48,191
 
CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
Unaudited
 
  March 26,   March 24,  

September 24,

ASSETS 2011 2012 2011
Current assets:
Cash and cash equivalents $ 11,186 $ 10,281 $ 12,031
Short term investments 15,320 17,820 17,820
Accounts receivable 327,090 309,299 195,417
Inventories 381,815 380,812 329,546
Prepaid expenses and other   43,655   47,727   47,772
Total current assets 779,066 765,939 602,586
 
Land, buildings, improvements and equipment—net 169,731 182,569 176,402
Goodwill 209,548 210,223 210,223
Other intangible assets—net 87,073 82,100 84,526
Deferred income taxes and other assets   27,139   19,243   19,266
Total $ 1,272,557 $ 1,260,074 $ 1,093,003
 
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 163,622 $ 150,605

$

116,524
Accrued expenses 84,415 75,004 75,128
Current portion of long-term debt   120   339   279
Total current liabilities 248,157 225,948 191,931
 
Long-term debt 517,134 566,603 435,330
Other long-term obligations 3,890 18,576 8,960
 
Equity:
Common stock 149 123 129
Class A common stock 399 343 359
Class B stock 16 16 16
Additional paid-in capital 443,169 379,902 396,208
Accumulated earnings 57,952 67,078 59,045
Accumulated other comprehensive income   1,235   1,312   1,019

Total Central Garden & Pet Company shareholders’ equity

502,920 448,774 456,776
Noncontrolling interest   456   173   6
Total equity   503,376   448,947   456,782
Total $ 1,272,557 $ 1,260,074 $ 1,093,003




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs