At June 23, 2012, the Company’s cash and short-term investments balance was $58.5 million compared to $26.6 million in the prior year-period. Total debt at June 23, 2012 was $449.9 million compared to $450.5 million at June 25, 2011. The quarter-ending total leverage ratio, as defined in the Company’s senior credit facility, was 3.9x. Depreciation and amortization expense was $8.0 million in the third quarter of 2012, compared with $7.1 million in the prior-year period. The Company’s effective tax rate for the third quarter of 2012 was 37.9 percent, compared with 36.4 percent in the prior-year period.
The Company will host a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss its fiscal third quarter 2012 results. The conference call will be accessible through the investor relations section of Central’s website, http://ir.central.com.
Alternatively, to listen to the call by telephone, dial 1-412-317-6789 and enter passcode 10015876. A replay of the call will be available for three weeks by dialing 1-412-317-0088 (domestic and international) and entering passcode 10015876.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 3,800 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 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, as well as the Company’s 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 BALANCE SHEETS|
|(in thousands, except share and per share amounts)|
|June 25,||June 23,||September 24,|
|Cash and cash equivalents||$||11,233||$||40,699||$||12,031|
|Short term investments||15,320||17,820||17,820|
|Accounts receivable (less allowance for doubtful accounts of $18,782, $18,297 and $15,590)||257,418||245,780||195,417|
|Prepaid expenses and other||40,095||46,107||47,772|
|Total current assets||667,854||685,202||602,586|
|Land, buildings, improvements and equipment—net||171,187||185,225||176,402|
|Other intangible assets—net||85,705||80,529||84,526|
|Deferred income taxes and other assets||21,638||18,539||19,266|
|LIABILITIES AND EQUITY|
|Current portion of long-term debt||198||347||279|
|Total current liabilities||208,256||232,276||191,931|
|Deferred income taxes and other long-term obligations||4,104||23,478||8,960|
|Common stock, $.01 par value: 13,755,693, 12,247,571 and 12,949,593 shares outstanding at June 25, 2011, June 23, 2012 and September 24, 2011||137||122||129|
|Class A common stock, $.01 par value: 38,191,629, 34,506,329 and 35,941,360 shares outstanding at June 25, 2011, June 23, 2012 and September 24, 2011||382||345||359|
|Class B stock, $.01 par value: 1,652,262 shares outstanding||16||16||16|
|Additional paid-in capital||421,351||381,751||396,208|
|Accumulated other comprehensive income||1,386||1,127||1,019|
|Total Central Garden & Pet Company shareholders’ equity||492,506||473,138||456,776|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share amounts)|
|Three Months Ended||Nine Months Ended|
June 25, 2011
June 23, 2012
June 25, 2011
June 23, 2012
|Cost of goods sold and occupancy||334,914||353,156||856,031||893,691|
|Selling, general and administrative expenses||112,795||131,683||305,974||326,175|
|Income from operations||36,594||48,969||89,741||82,911|
|Other income (expense)||318||102||116||(19||)|
|Income before income taxes and noncontrolling interest||27,104||38,376||61,860||52,238|
|Income including noncontrolling interest||17,225||23,822||39,908||32,522|
|Net income attributable to noncontrolling interest||144||1,123||653||1,290|
|Net income attributable to Central Garden & Pet Company||$||17,081||$||22,699||$||39,255||$||31,232|
|Net income per share attributable to Central Garden & Pet Company:|
|Weighted average shares used in the computation of net income per share:|
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