Central Garden & Pet Announces Fourth Quarter and Full Year Results for Fiscal 2007
WALNUT CREEK, Calif.--(BUSINESS WIRE)--
Central Garden & Pet Company (NASDAQ:CENT)(NASDAQ:CENTA) today announced fourth quarter and full year results for its fiscal year ended September 29, 2007.
For the fourth quarter of fiscal 2007, the Company reported net sales of $401 million, a decline of $20 million or 5% from $421 million in the comparable 2006 period. Income from operations for the quarter decreased 53% to $10.1 million from $21.4 million in the year ago period. The net loss for the quarter was $1.7 million, or $0.02 per fully diluted share, compared to net income of $6.0 million, or $0.08 per fully diluted share, in the year ago period. Depreciation and amortization for the quarter was $8.8 million compared to $5.3 million in the year ago period. Branded product sales decreased 2% to $342 million. Sales of other manufacturers' products declined 16% or $11.3 million to $59.5 million.
Net sales for the Garden Products segment were $180 million, a decrease of $4 million or 2% compared to the fourth quarter of fiscal 2006. Garden branded products sales increased approximately $3 million or 2% while sales of other manufacturers' products, as anticipated, declined 23%. The Garden Products segment operating income was $2.8 million in the quarter, a decrease of $1.4 million, or 34% when compared to the fourth quarter of fiscal 2006. Net sales for the Pet Products segment were $221 million, a decrease of $16 million or 7% compared to the fourth quarter of fiscal 2006. Pet branded products sales decreased $11 million or 6% and sales of other manufacturers' products decreased 11%. Operating income for the Pet Products segment was $17.3 million in the quarter, a decrease of $13.9 million, or 45%, when compared to the fourth quarter of fiscal 2006.
Net sales for fiscal year 2007 were $1.67 billion, an increase of 3% from $1.62 billion in fiscal 2006. Operating income decreased 27% to $99.4 million compared to last year. Net income for the year decreased 51% to $32.3 million from $65.5 million in the prior year. Diluted earnings per share was $0.45, a 53% decrease compared to the prior year. Depreciation and amortization for the year was $30.7 million compared to $24.0 million in the prior year. Branded product sales increased 6% to $1.40 billion. Sales of other manufacturers' products, as anticipated, declined 9% to $270.3 million. Organic sales declined 1% for the year.
"With 2007 behind us, we are looking to fiscal 2008 to reset and create a stronger and more agile company," noted William Brown, Chairman and Chief Executive Officer of Central Garden & Pet Company. "Some of our operations are not performing well. We have significant work to do."
The Company will discuss its fourth quarter and full year fiscal 2007 results on a conference call today at 4:30 p.m. EST. The earnings conference call will be broadcast over the Internet through Central's website, www.central.com, or you may link directly to the webcast at http://phx.corporate-ir.net/phoenix.zhtml?c=93879&p=irol-calendar. To listen to the call by telephone, please dial 1-888-680-0879 and passcode 3227 3384 (domestic) or 617-213-4856 and passcode 3227 3384 (international). You may bypass the operator and go directly to the teleconference by pre-registering, at any time before the call, through the link below which will provide you with a unique PIN number. At the time of the call, after dialing the number and passcode mentioned above, enter your PIN for immediate access to the teleconference.
https://www.theconferencingservice.com/prereg/key.process?key=PAXD
9GGKY (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)
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 in the following categories: Lawn & Garden: Grass seed including the brands PENNINGTON(R) and THE REBELS(TM); wild bird feed and the brands PENNINGTON(R) and KAYTEE(R); weed and insect control and the brands AMDRO(R), SEVIN(R), IRONITE(R) and OVER 'N OUT(TM) and; decorative outdoor patio products and the brands NORCAL(R), NEW ENGLAND POTTERY(R), GKI/BETHLEHEM LIGHTING(R) and MATTHEWS FOUR SEASONS(TM). We also provide a host of other regional and application-specific garden brands and supplies. Pet categories include: Animal health and the brands ADAMS(TM) and ZODIAC(R); aquatics and reptile and the brands OCEANIC(R), AQUEON(TM) and ZILLA(TM); bird & small animal and the brands KAYTEE(R), SUPER PET(R) and CRITTER TRAIL(R); dog & cat and the brands TFH(TM) / NYLABONE(R), FOUR PAWS(R), PINNACLE(R) and AVO-DERM(R) and; equine and the brands FARNAM(R), BRONCO(R) and SUPER MASK(R). 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 5,000 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 http://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 future earnings guidance, 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 Company's Annual Report on Form 10-K 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 Statements of Income
(Unaudited)
(In thousands, except per share amounts)
------------------- -----------------------
Three Months Ended Fiscal Year Ended
------------------- -----------------------
September September September September
29, 30, 29, 30,
2007 2006 2007 2006
--------- --------- ----------- -----------
Net Sales $401,309 $420,774 $1,671,145 $1,621,531
Cost of Goods Sold and
Occupancy 283,845 285,923 1,136,825 1,086,219
--------- --------- ----------- -----------
Gross Profit 117,464 134,851 534,320 535,312
Selling, General and
Administrative
Expenses 107,394 113,427 434,903 398,510
--------- --------- ----------- -----------
Income from Operations 10,070 21,424 99,417 136,802
Interest Expense (12,389) (11,893) (49,685) (40,677)
Interest Income 281 138 1,538 3,007
Other Income (Expense) (477) (140) 2,402 3,083
--------- --------- ----------- -----------
Income (Loss) Before
Income
Taxes and Minority
Interest (2,515) 9,529 53,672 102,215
Income Tax Expense
(Benefit) (905) 3,429 19,999 35,791
Minority Interest 85 81 1,369 890
--------- --------- ----------- -----------
Net Income (Loss) $(1,695) $6,019 $32,304 $65,534
========= ========= =========== ===========
Basic Earnings (Loss) Per
Common Share $(0.02) $0.09 $0.46 $0.97
Diluted Earnings (Loss) Per
Common Share $(0.02) $0.08 $0.45 $0.95
Weighted Average Shares
Outstanding
Basic 71,131 70,746 70,824 67,833
Diluted 71,131 71,733 72,050 69,054
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September September
29, 30,
2007 2006
---------- ----------
Assets
Current Assets:
Cash and Cash Equivalents $21,055 $28,406
Accounts Receivable 247,429 239,172
Inventories 378,365 332,214
Other Current Assets 38,659 34,910
---------- ----------
Total Current Assets 685,508 634,702
Property and Equipment - Net 201,609 162,604
Goodwill and Other Assets 759,705 736,517
---------- ----------
Total $1,646,822 $1,533,823
========== ==========
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $135,972 $122,960
Accrued Expenses 75,968 81,305
Current Portion of Long-Term Debt 3,352 3,039
---------- ----------
Total Current Liabilities 215,292 207,304
Long-Term Debt 607,171 565,410
Other Long-Term Obligations 44,802 29,583
Convertible Redeemable Preferred Stock 750 3,000
Minority Interest 1,834 1,167
Shareholders' Equity 776,973 727,359
---------- ----------
Total $1,646,822 $1,533,823
========== ==========
Source: Central Garden & Pet Company
Released November 27, 2007
