Fourth quarter net sales for the Garden segment decreased 3 percent, or $5.5 million compared with the prior year, to $159.6 million, impacted by lower décor revenues. The Garden segment’s branded product sales decreased $8.3 million, or 6 percent, to $140.2 million. Sales of other manufacturers’ products were $19.4 million, an increase of 17% compared with the fourth quarter of 2011. The Garden segment’s operating margin decreased during the quarter, impacted by higher marketing costs as well as lower profitability in its décor businesses, due primarily to product returns in the seasonal décor business. The Garden segment’s operating loss was $7.7 million compared to an operating loss of $6.9 million in the prior year period.At September 29, 2012, the Company’s cash and short term investments balance totaled $71.2 million. Net interest expense was $9.5 million for the quarter and $9.8 million in the prior year period. Depreciation and amortization expense was $7.3 million in the fourth quarter of 2012, consistent with the prior year. The Company’s effective tax rate for the fourth quarter of 2012 was 39.9 percent on its operating loss compared to 17.0 percent in the fourth quarter of 2011. The 2011 effective tax rate was lower than historical norms, impacted by the Company’s inability to use tax benefits due to decreased fiscal 2011 income and increased tax valuation allowances.
Central Garden & Pet Company Announces Fourth Quarter & Fiscal 2012 Results
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