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Central Garden & Pet Company Announces Fiscal 2019 & Fourth Quarter Results

November 26, 2019

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Nov 26, 2019--

Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA), a leading innovator, producer and distributor of branded and private label products for the lawn & garden and pet supplies markets, today announced financial results for its fiscal year and fourth quarter ended September 28, 2019.

Tim Cofer, Central Garden & Pet’s new Chief Executive Officer said, “My early days at Central have strengthened my conviction that Central is well-positioned as a leader in the pet and garden industries. One of my observations is that we have opportunities to enhance our position by investing more in demand creation capabilities and initiatives to drive long-term sustainable profitable growth.”

Mr. Cofer continued, “These investments, while dampening our earnings growth rate in fiscal 2020, are expected to yield meaningful benefits in the years ahead. Over the next several months - informed by further conversations with all our stakeholders - I will be working with our team to build upon the current Central strategy and make adjustments where appropriate. I look forward to sharing the details of that plan in the spring.” Cofer concluded, “We have great brands, strong leadership, talented people and a dynamic entrepreneurial culture. I could not be more excited about the opportunities ahead.”

Commenting on the results for fiscal 2019, Niko Lahanas, CFO of Central Garden & Pet said, “We continue to feel confident about the fundamentals of our underlying businesses. A number of factors unfavorably impacted our performance in fiscal 2019, some of which may continue into 2020. The timing of the 2018 acquisition of the highly-seasonal Bell Nursery business, the underperformance of our animal health businesses, impacted by unfavorable weather and other factors, a higher amount of receivables and inventory write-offs, and a higher number of shares outstanding, all negatively impacted results versus the prior year.”

Mr. Lahanas continued, “Our focus on working capital has yielded encouraging results, with our cash from operations increasingly significantly year-over-year.”

Fiscal 2019 Summary

Net sales of $2.38 billion increased 7.6% compared to $2.22 billion a year ago, primarily due to acquisitions not present in prior year results. Branded product sales of $1.88 billion increased 6.7%, and sales of other manufacturers’ products increased 11.0% to $504.5 million. Organic sales growth for the year increased 1.5%, due to gains in the Garden segment. Gross margin decreased 100 basis points to 29.5% compared to 30.5% in the prior year, due in part to the impact of businesses acquired that were not in the prior year’s results, which accounted for half of the gross margin decline. The underperformance in the Company’s animal health businesses and unfavorable product mix also contributed to the margin decline. Price increases implemented during the year, as well as cost reductions, partially offset the negative impact of higher labor and freight costs and tariffs.

Fiscal 2019 GAAP Operating Income, Net Earnings and EPS

Fiscal 2019 Non-GAAP Operating Income, Net Earnings and EPS

Fiscal 2019 Fourth Quarter Financial Results

Net sales increased 7.7% to $540.7 million compared to $502.3 million in the fourth quarter a year ago, while organic sales grew 4.6%, driven by gains in both the Garden and Pet segments. Branded product sales of $415.0 million increased 4.9%, and sales of other manufacturers’ products of $125.7 million increased 17.7%. Gross margin decreased 180 basis points compared to the fourth quarter a year ago to 27.5%, with the inventory write-off in the Pet segment and unfavorable mix changes in the Garden segment the primary causes of the decline.

Fourth Quarter GAAP Operating Income, Net Earnings and EPS

Fourth Quarter Non-GAAP Operating Income, Net Earnings and EPS

Pet Segment Fiscal 2019 Fourth Quarter Results

Fourth quarter net sales for the Pet segment increased 4.9% from the same period a year ago, to $355.9 million. The gain was due in part to the inclusion of the C&S acquisition as well as organic growth. The Pet segment’s branded product sales were $272.3 million, up 3.9% compared to the fourth quarter a year ago, and sales of other manufacturers’ products were $83.6 million, an increase of 8.3%. Pet organic sales grew 2.2%, on higher sales of other manufacturers products, as well as strength in the dog & cat and wild bird businesses. The gains more than offset lower sales in the aquatics and live fish businesses.

The Pet segment’s operating income declined 3.8% to $30.9 million and operating margin decreased 80 basis points, to 8.7%, from $32.2 million and 9.5%, respectively, in the fourth quarter a year ago. The declines were primarily due to lower results in the Company’s animal health and pet bedding businesses, which included write-offs and expenses taken during the quarter related to receivables and inventory.

Garden Segment Fiscal 2019 Fourth Quarter Results

Net sales for the Garden segment increased 13.4% compared to the fourth quarter a year ago to $184.8 million, aided by the acquisition of Arden but primarily driven by organic growth. The Garden segment’s branded product sales were $142.7 million in the quarter, up 7.1% compared to the fourth quarter a year ago. Sales of other manufacturers’ products increased 42.2% to $42.1 million. Organic sales rose 9.7%, despite the impact of unfavorable weather during the quarter on controls product sales. Higher sales of other manufacturers’ products were the primary driver of the improved organic revenue, with meaningful gains also contributed by the wild bird, grass seed, and live plants businesses.

The Garden segment’s operating income in the quarter decreased to $0.3 million compared to $1.6 million in the fourth quarter a year ago, and Garden operating margin decreased 80 basis points to 0.2%. The inclusion of Arden in the Garden segment, which was not in last year’s Garden results, negatively impacted both measures. Mix of products sold was also a detractor to margins.

Additional Information

At September 28, 2019, the Company’s cash and short-term investment balance was $497.7 million, compared to $482.1 million a year ago. Cash flow from operations for the fourth quarter of fiscal 2019 was $112.2 million, compared to $96.4 million in the fourth quarter of fiscal 2018.

Total debt at September 28, 2019 was $693.2 million compared to $692.2 million at September 29, 2018. Net interest expense was $8.1 million for the fourth quarter of fiscal 2019 compared to $8.9 million in the prior-year period. The Company’s leverage ratio at the end of the quarter and year, as defined in the Company’s credit agreement, was 3.1x compared to 3.0x in the prior year quarter.

Other expense for the quarter decreased to $0.2 million from $4.4 million in the fourth quarter a year ago due to the absence of Arden in the other expense line.

The Company’s effective tax rate for the fourth quarter was 22.8% compared to a tax benefit of 112.9% in the fourth quarter of 2018. For the full fiscal year, the tax rate was 22.3% compared with 2.6% last year. The fiscal 2018 tax rate reflects the revaluation of the Company’s deferred tax accounts and a reduction in the U.S. Federal corporate tax rate in fiscal 2018. Excluding the impact of the revaluation of the deferred tax accounts in fiscal 2018, the Company’s tax rate for fiscal 2018 was 19.5%. Fiscal 2019 tax rates reflect a higher weighted average tax rate for the year due to a less favorable impact from changes in accounting standards around non-cash equity compensation expense than in the prior fourth quarter and fiscal year periods.

During the fourth quarter, the Company repurchased 1.8 million shares of its stock. As of the end of its fiscal year, the Company had $100 million remaining on its Board authorized share repurchase program, as well as an additional 1.2 million shares remaining on the Board’s equity dilution authorization.

Guidance

The Company currently believes diluted EPS for fiscal 2020 will be at or modestly above its fiscal 2019 results. Increased demand creation spending and continuing challenges in its animal health businesses will be headwinds to earnings growth for the year. In addition, the Company’s first quarter diluted EPS is currently expected to be a loss of $0.10 to $0.15, principally due to the timing of orders in the first quarter compared to a year ago, continuing challenges in the animal health businesses, and higher corporate expenses. The guidance for the quarter does not take into consideration the effects of a recent fire at one of the Company’s facilities, which may impact the first quarter but is currently not expected to materially impact full year results. Updated guidance for the fiscal year is expected to be provided in early February, after the initial assessment and proposed actions of the new CEO can be factored into the Company’s expectations.

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 fourth quarter and fiscal 2019 results. The conference call will be accessible via the internet through Central’s website, http://ir.central.com.

Alternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international) using confirmation #13696804. A replay of the call will be available for three days by dialing (201) 612-7415 and entering confirmation #13696804.

About Central Garden & Pet

Central Garden & Pet Company is a leading innovator, producer and distributor of branded and private label 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 ®, and THE REBELS ®; wild bird feed and the brand PENNINGTON ®; weed and insect control and the brands AMDRO ®, SEVIN®, and OVER-N-OUT ®; fertilizer and the brands PENNINGTON ® and IRONITE ®; live plants from BELL NURSERY; outdoor cushions and pillows from ARDEN COMPANIES; and decorative outdoor patio products under the PENNINGTON ® brand. 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 ™, COMFORT ZONE ®, FARNAM ®, HORSE HEALTH ™ and VITAFLEX ®; aquatics and reptile and the brands AQUEON ®, CORALIFE ®, SEGREST ™ and ZILLA ®; bird & small animal and the brands KAYTEE ®, Forti-Diet ® and CRITTER TRAIL ®; and dog & cat and the brands TFH ™, NYLABONE ®, FOUR PAWS ®, IMS ®, CADET ®, DMC ™, K&H Pet Products ™, PINNACLE ® and AVODERM ®. 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 5,800 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 increased marketing activities and capital expenditures and their impact on future growth, the expected continuing challenges in the animal health businesses, and earnings guidance for the first quarter and full fiscal 2020 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. All forward-looking statements are based upon the Company’s current expectations and various assumptions. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release including, but not limited to, the following factors:

These risks and others are described in the Company’s Securities and Exchange Commission filings. The Company 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)

Unaudited

 

ASSETS

 

September 28, 2019

 

September 29, 2018

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

497,749

 

 

$

482,106

 

Restricted cash

 

12,952

 

 

10,899

 

Accounts receivable, net

 

300,135

 

 

275,908

 

Inventories

 

466,197

 

 

427,823

 

Prepaid expenses and other

 

30,160

 

 

20,562

 

Total current assets

 

1,307,193

 

 

1,217,298

 

 

 

 

 

 

Plant, property and equipment, net

 

245,405

 

 

217,647

 

Goodwill

 

286,077

 

 

281,177

 

Other intangible assets, net

 

146,137

 

 

152,265

 

Other assets

 

40,208

 

 

38,822

 

Total

 

$

2,025,020

 

 

$

1,907,209

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

149,246

 

 

$

110,259

 

Accrued expenses

 

129,166

 

 

102,583

 

Current portion of long-term debt

 

113

 

 

122

 

Total current liabilities

 

278,525

 

 

212,964

 

 

 

 

 

 

Long-term debt

 

693,037

 

 

692,031

 

Deferred income taxes and other long-term obligations

 

57,281

 

 

49,380

 

 

 

 

 

 

Equity:

 

 

 

 

Common stock

 

115

 

 

121

 

Class A common stock

 

430

 

 

439

 

Class B stock

 

16

 

 

16

 

Additional paid-in capital

 

575,380

 

 

590,168

 

Retained earnings

 

421,742

 

 

362,923

 

Accumulated other comprehensive income (loss)

 

(1,676

)

 

(1,218

)

Total Central Garden & Pet shareholders’ equity

 

996,007

 

 

952,449

 

Noncontrolling interest

 

170

 

 

385

 

Total equity

 

996,177

 

 

952,834

 

Total

 

$

2,025,020

 

 

$

1,907,209

 

CENTRAL GARDEN & PET COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 28,
2019

 

September 29,
2018

 

September 28,
2019

 

September 29,
2018

Net sales

$

540,744

 

 

$

502,314

 

 

$

2,383,010

 

 

$

2,215,362

 

Cost of goods sold and occupancy

392,220

 

 

355,296

 

 

1,678,969

 

 

1,539,986

 

Gross profit

148,524

 

 

147,018

 

 

704,041

 

 

675,376

 

Selling, general and administrative expenses

137,661

 

 

128,808

 

 

551,973

 

 

508,040

 

Operating income

10,863

 

 

18,210

 

 

152,068

 

 

167,336

 

Interest expense

(10,684

)

 

(10,619

)

 

(42,614

)

 

(39,196

)

Interest income

2,584

 

 

1,681

 

 

9,554

 

 

3,145

 

Other income (expense), net

(245

)

 

(4,402

)

 

243

 

 

(3,860

)

Income before income taxes and noncontrolling interest

2,518

 

 

4,870

 

 

119,251

 

 

127,425

 

Income tax (benefit) expense

573

 

 

(5,497

)

 

26,604

 

 

3,305

 

Net income including noncontrolling interest

1,945

 

 

10,367

 

 

92,647

 

 

124,120

 

Net income (loss) attributable to noncontrolling interest

(495

)

 

(201

)

 

(139

)

 

526

 

Net income attributable to Central Garden & Pet Company

$

2,440

 

 

$

10,568

 

 

$

92,786

 

 

$

123,594

 

 

 

 

 

 

 

 

 

Net income per share attributable to Central Garden & Pet Company:

 

 

 

 

 

 

 

Basic

$

0.04

 

 

$

0.20

 

 

$

1.63

 

 

$

2.39

 

Diluted

$

0.04

 

 

$

0.19

 

 

$

1.61

 

 

$

2.32

 

 

 

 

 

 

 

 

 

Weighted average shares used in the computation of net income per share:

 

 

 

 

 

 

 

Basic

56,017

 

 

54,059

 

 

56,770

 

 

51,716

 

Diluted

56,618

 

 

55,376

 

 

57,611

 

 

53,341

 

Use of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including EBITDA, organic sales, non-GAAP operating income on a consolidated and segment basis, and non-GAAP net income and diluted net income per share. Management believes these non-GAAP financial measures that exclude the impact of specific items (described below) may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods.

EBITDA is defined by us as income before income tax, net other expense, net interest expense and depreciation and amortization (or operating income plus depreciation and amortization expense). We present EBITDA because we believe that EBITDA is a useful supplemental measure in evaluating the cash flows and performance of our business and provides greater transparency into our results of operations. EBITDA is used by our management to perform such evaluation. EBITDA should not be considered in isolation or as a substitute for cash flow from operations, income from operations or other income statement measures prepared in accordance with GAAP. We believe that EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present EBITDA when reporting their results. Other companies may calculate EBITDA differently and it may not be comparable.

We have also provided organic net sales, a non-GAAP measure that excludes the impact of businesses purchased or exited in the prior 12 months, because we believe it permits investors to better understand the performance of our historical business without the impact of recent acquisitions or dispositions.

The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. We believe that the non-GAAP financial measures provide useful information to investors and other users of our financial statements, by allowing for greater transparency in the review of our financial and operating performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our performance, and we believe these measures similarly may be useful to investors in evaluating our financial and operating performance and the trends in our business from management’s point of view. While our management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.

Non-GAAP financial measures reflect adjustments based on the following items:

From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.

The non-GAAP adjustments made reflect the following:

(1)

During the second quarter of fiscal 2019, we recorded a $3.2 million non-cash gain in our Garden segment from the fair value remeasurement of our previously held 45% interest in Arden upon our acquisition of the remaining 55% interest. The gain was recorded as part of selling, general and administrative costs in the condensed consolidated statements of operations.

(2)

During the second quarter of fiscal 2019, we recognized a non-cash impairment charge in our Pet segment of $2.5 million related to the impairment of intangible assets caused by a retail customer exiting the live fish business. The adjustment was recorded as part of selling, general and administrative costs.

(3)

As a result of the Tax Reform Act, during fiscal 2018, we recorded a tax benefit of $21.5 million, of which $16.3 million was recorded in the first quarter and $5.2 million in the fourth quarter, due to the remeasurement of our deferred tax assets and liabilities. We excluded only this transitional impact and did not include in the adjustment the ongoing impact of the lower U.S. statutory rate on our earnings.

 

 

GAAP to Non-GAAP Reconciliation
(in thousands)
For the Fiscal Year Ended

 

 

Consolidated

 

 

September 28, 2019

 

September 29, 2018

Operating Income Reconciliation

 

 

 

GAAP operating income

 

$

152,068

 

 

$

167,336

 

Previously held investment interest fair value remeasurement

(1)

(3,215

)

 

 

Intangible asset impairment

(2)

2,540

 

 

 

Non-GAAP operating income

 

$

151,393

 

 

$

167,336

 

 

 

 

 

 

 

Pet Segment Operating Income Reconciliation

 

 

 

GAAP Pet segment operating income

 

$

122,727

 

 

$

140,353

 

Intangible asset impairment

(2)

2,540

 

 

 

Non-GAAP Pet segment operating income

 

$

125,267

 

 

$

140,353

 

 

 

 

 

 

 

Garden Segment Operating Income Reconciliation

 

 

 

 

 

GAAP Garden segment operating income

 

$

102,170

 

 

$

95,551

 

Previously held investment interest fair value remeasurement

(1)

(3,215

)

 

 

Non-GAAP Garden segment operating income

 

$

98,955

 

 

$

95,551

 

 

 

 

GAAP to Non-GAAP Reconciliation
(in thousands, except per share amounts)
For the Fiscal Year Ended

Net Income and Diluted Net Income Per Share Reconciliation

 

September 28, 2019

 

September 29, 2018

GAAP net income attributable to Central Garden & Pet

 

$

92,786

 

 

$

123,594

 

Previously held investment interest fair value remeasurement

(1)

(3,215

)

 

 

Intangible asset impairment

(2)

2,540

 

 

 

Tax effect of remeasurement and impairment

 

151

 

 

 

Tax effect of revaluation of deferred tax amounts

(3)

 

 

(21,485

)

Non-GAAP net income attributable to Central Garden & Pet

 

$

92,262

 

 

$

102,109

 

GAAP diluted net income per share

 

$

1.61

 

 

$

2.32

 

Non-GAAP diluted net income per share

 

$

1.60

 

 

$

1.91

 

Shares used in GAAP and non-GAAP diluted net earnings per share calculation

 

57,611

 

 

53,341

 

 

 

 

GAAP to Non-GAAP Reconciliation
(in thousands)
For the Quarter Ended

Net income and diluted net income per share

 

September 28, 2019

 

September 29, 2018

GAAP net income (loss)

 

$

2,440

 

 

$

10,568

 

Tax effect of revaluation of deferred tax amounts

(1)

 

 

5,142

 

Non-GAAP net income

 

$

2,440

 

 

$

5,426

 

GAAP diluted income (loss) per share

 

$

0.04

 

 

$

0.19

 

Non-GAAP diluted income per share

 

$

0.04

 

 

$

0.10

 

Shares used in GAAP and non-GAAP diluted net earnings per share calculation

 

56,618

 

 

55,376

 

Organic Net Sales Reconciliation

We have provided organic net sales, a non-GAAP measure that excludes the impact of recent acquisitions and dispositions, because we believe it permits investors to better understand the performance of our historical business. We define organic net sales as net sales from our historical business derived by excluding the net sales from businesses acquired or exited in the preceding 12 months. After an acquired business has been part of our consolidated results for 12 months, the change in net sales thereafter is considered part of the increase or decrease in organic net sales.

 

 

GAAP to Non-GAAP Reconciliation
For the Fiscal Year Ended September 28, 2019

 

 

Consolidated

 

Pet Segment

 

Garden Segment

 

 

 

 

Percent
Change

 

 

 

Percent
Change

 

 

 

Percent
Change

Reported net sales FY 2019 (GAAP)

 

$

2,383.0

 

 

 

 

$

1,384.7

 

 

 

 

$

998.3

 

 

 

Reported net sales FY 2018 (GAAP)

 

2,215.4

 

 

 

 

1,340.9

 

 

 

 

874.5

 

 

 

Increase in net sales

 

167.6

 

 

7.6

%

 

43.8

 

 

3.3

%

 

123.8

 

 

14.2

%

Effect of acquisitions and dispositions on increase in net sales

 

134.7

 

 

 

 

46.3

 

 

 

 

88.4

 

 

 

Increase (decrease) in organic net sales

 

$

32.9

 

 

1.5

%

 

$

(2.5

)

 

(0.2

)%

 

$

35.4

 

 

4.0

%

 

 

GAAP to Non-GAAP Reconciliation
For the Fiscal Year Ended September 29, 2018

 

 

Consolidated

 

Pet Segment

 

Garden Segment

 

 

 

 

Percent
Change

 

 

 

Percent
Change

 

 

 

Percent
Change

Reported net sales FY 2018 (GAAP)

 

$

2,215.4

 

 

 

 

$

1,340.9

 

 

 

 

$

874.5

 

 

 

Reported net sales FY 2017 (GAAP)

 

2,054.5

 

 

 

 

1,246.4

 

 

 

 

808.1

 

 

 

Increase in net sales

 

160.9

 

 

7.8

%

 

94.5

 

 

7.6

%

 

66.4

 

 

8.2

%

Effect of acquisitions and dispositions on increase in net sales

 

140.3

 

 

 

 

56.2

 

 

 

 

84.1

 

 

 

Increase in organic net sales

 

20.6

 

 

1.0

%

 

38.3

 

 

3.1

%

 

(17.7

)

 

(2.2

)%

Estimated impact of extra week in fiscal 2017 on organic sales

 

32.8

 

 

 

 

21.4

 

 

 

 

11.4

 

 

 

Organic net sales adjusted for extra week

 

$

53.4

 

 

2.6

%

 

$

59.7

 

 

4.8

%

 

$

(6.3

)

 

(0.8

)%

 

 

GAAP to Non-GAAP Reconciliation
For the Quarter Ended September 28, 2019

 

 

Consolidated

 

Pet Segment

 

Garden Segment

 

 

 

 

Percent
Change

 

 

 

Percent
Change

 

 

 

Percent
Change

Reported net sales Q4 FY19 (GAAP)

 

$

540.7

 

 

 

 

$

355.9

 

 

 

 

$

184.8

 

 

 

Reported net sales Q4 FY18 (GAAP)

 

502.3

 

 

 

 

339.4

 

 

 

 

162.9

 

 

 

Increase in net sales

 

38.4

 

 

7.7

%

 

16.5

 

 

4.9

%

 

21.9

 

 

13.4

%

Effect of acquisition and divestitures on increase in net sales

 

15.1

 

 

 

 

9.0

 

 

 

 

6.1

 

 

 

Adjusted organic net sales

 

$

23.3

 

 

4.6

%

 

$

7.5

 

 

2.2

%

 

$

15.8

 

 

9.7

%

 

 

GAAP to Non-GAAP Reconciliation
For the Quarter Ended September 29, 2018

 

 

Consolidated

 

Pet Segment

 

Garden Segment

 

 

 

 

Percent
Change

 

 

 

Percent
Change

 

 

 

Percent
Change

Reported net sales Q4 FY18 (GAAP)

 

$

502.3

 

 

 

 

$

339.4

 

 

 

 

$

162.9

 

 

 

Reported net sales Q4 FY17 (GAAP)

 

490.5

 

 

 

 

330.5

 

 

 

 

160.0

 

 

 

Increase in net sales

 

11.8

 

 

2.4

%

 

8.9

 

 

2.7

%

 

2.9

 

 

1.8

%

Effect of acquisition and divestitures on increase in net sales

 

31.1

 

 

 

 

14.6

 

 

 

 

16.5

 

 

 

Decrease in organic net sales

 

(19.3

)

 

(3.9

)%

 

(5.7

)

 

(1.7

)%

 

(13.6

)

 

(8.5

)%

Impact estimate of extra week in Q4 FY17

 

32.8

 

 

 

 

21.4

 

 

 

 

11.4

 

 

 

Adjusted organic net sales

 

$

13.5

 

 

2.8

%

 

$

15.7

 

 

4.8

%

 

$

(2.2

)

 

(1.4

)%

EBITDA Reconciliation

The following is a reconciliation of net income to EBITDA:

 

 

GAAP to non-GAAP Reconciliation
Fiscal Year Ended September 28, 2019

EBITDA Reconciliation

 

Total

 

Garden

 

Pet

 

Corp

Net income attributable to Central Garden & Pet

 

$

92,786

 

 

 

 

 

 

 

Interest expense, net

 

33,060

 

 

 

 

 

 

 

Other income

 

(243

)

 

 

 

 

 

 

Income tax expense

 

26,604

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

(139

)

 

 

 

 

 

 

Sum of items below operating income

 

59,282

 

 

 

 

 

 

 

Income from Operations

 

152,068

 

 

102,170

 

 

122,727

 

 

(72,829

)

Depreciation & Amortization

 

50,828

 

 

11,959

 

 

32,803

 

 

6,066

 

EBITDA

 

$

202,896

 

 

$

114,129

 

 

155,530

 

 

(66,763

)

 

 

 

GAAP to non-GAAP Reconciliation
Fiscal Year Ended September 29, 2018

EBITDA Reconciliation

 

Total

 

Garden

 

Pet

 

Corp

Net income attributable to Central Garden & Pet

 

$

123,594

 

 

 

 

 

 

 

Interest expense, net

 

36,051

 

 

 

 

 

 

 

Other income

 

3,860

 

 

 

 

 

 

 

Income tax expense

 

3,305

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

526

 

 

 

 

 

 

 

Sum of items below operating income

 

43,742

 

 

 

 

 

 

 

Income from Operations

 

167,336

 

 

95,551

 

 

140,353

 

 

(68,568

)

Depreciation & Amortization

 

47,199

 

 

8,744

 

 

29,889

 

 

8,566

 

EBITDA

 

$

214,535

 

 

$

104,295

 

 

170,242

 

 

(60,002

)

 

 

GAAP to non-GAAP Reconciliation
Quarter Ended

EBITDA Reconciliation

 

September 28, 2019

 

September 29, 2018

Net income attributable to Central Garden & Pet

 

$

2,440

 

 

$

10,568

 

Interest expense, net

 

8,100

 

 

8,938

 

Other expense

 

245

 

 

4,402

 

Income tax expense

 

573

 

 

(5,497

)

Net income attributable to noncontrolling interest

 

(495

)

 

(201

)

Sum of items below operating income

 

8,423

 

 

7,642

 

Income from Operations

 

10,863

 

 

18,210

 

Depreciation & Amortization

 

13,517

 

 

12,327

 

EBITDA

 

$

24,380

 

 

$

30,537

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191126005796/en/

CONTACT: Steve Zenker

VP of Investor Relations, FP&A and Communications

Central Garden & Pet Company

925.948.3657

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: RETAIL HEALTH CONSUMER HOME GOODS SPECIALTY PETS VETERINARY

SOURCE: Central Garden & Pet Company

Copyright Business Wire 2019.

PUB: 11/26/2019 04:01 PM/DISC: 11/26/2019 04:01 PM

http://www.businesswire.com/news/home/20191126005796/en