ASSETS | December 28, 2024 | December 30, 2023 | September 28, 2024 | ||
Current assets: | |||||
Cash and cash equivalents | $618,020 | $341,419 | $753,550 | ||
Restricted cash | 14,649 | 14,200 | 14,853 | ||
Accounts receivable (less allowances of $22,264, $24,973 and $21,035) | 399,443 | 370,996 | 326,220 | ||
Inventories, net | 815,782 | 948,398 | 757,943 | ||
Prepaid expenses and other | 39,919 | 39,047 | 34,240 | ||
Total current assets | 1,887,813 | 1,714,060 | 1,886,806 | ||
Plant, property and equipment, net | 370,673 | 389,440 | 379,166 | ||
Goodwill | 551,361 | 546,436 | 551,361 | ||
Other intangible assets, net | 465,914 | 489,058 | 473,280 | ||
Operating lease right-of-use assets | 195,775 | 177,499 | 205,137 | ||
Other assets | 64,319 | 105,841 | 57,689 | ||
Total | $3,535,855 | $3,422,334 | $3,553,439 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $221,903 | $212,193 | $212,606 | ||
Accrued expenses | 262,952 | 230,477 | 245,226 | ||
Current lease liabilities | 58,623 | 51,035 | 57,313 | ||
Current portion of long-term debt | 173 | 466 | 239 | ||
Total current liabilities | 543,651 | 494,171 | 515,384 | ||
Long-term debt | 1,190,271 | 1,189,093 | 1,189,809 | ||
Long-term lease liabilities | 163,271 | 136,708 | 173,086 | ||
Deferred income taxes and other long-term obligations | 118,831 | 149,776 | 117,615 | ||
Equity: | |||||
Common stock, $0.01 par value: 10,718,231, 11,077,612 and 11,074,620 shares outstanding at December 28, 2024, December 30, 2023 and September 28, 2024 | 107 | 111 | 111 | ||
Class A common stock, $0.01 par value: 53,128,604, 54,515,853 and 54,446,194 shares outstanding at December 28, 2024, December 30, 2023 and September 28, 2024 | 531 | 545 | 544 | ||
Class B stock, $0.01 par value: 1,602,374 shares outstanding at December 28, 2024, December 30, 2023 and September 28, 2024 | 16 | 16 | 16 | ||
Additional paid-in capital | 586,777 | 594,512 | 598,098 | ||
Retained earnings | 936,344 | 858,817 | 959,511 | ||
Accumulated other comprehensive loss | (4,661) | (2,112) | (2,626) | ||
Total Central Garden & Pet Company shareholders’ equity | 1,519,114 | 1,451,889 | 1,555,654 | ||
Noncontrolling interest | 717 | 697 | 1,891 | ||
Total equity | 1,519,831 | 1,452,586 | 1,557,545 | ||
Total | $3,535,855 | $3,422,334 | $3,553,439 |
Three Months Ended | |||
December 28, 2024 | December 30, 2023 | ||
Net sales | $656,436 | $634,533 | |
Cost of goods sold | 460,737 | 455,688 | |
Gross profit | 195,699 | 178,845 | |
Selling, general and administrative expenses | 167,707 | 170,433 | |
Operating income | 27,992 | 8,412 | |
Interest expense | (14,470) | (14,316) | |
Interest income | 6,740 | 4,609 | |
Other income (expense) | (1,717) | 993 | |
Income (Loss) before income taxes and noncontrolling interest | 18,545 | (302) | |
Income tax expense (benefit) | 4,364 | (869) | |
Income including noncontrolling interest | 14,181 | 567 | |
Net income attributable to noncontrolling interest | 172 | 137 | |
Net income attributable to Central Garden & Pet Company | $14,009 | $430 | |
Net income per share attributable to Central Garden & Pet Company: | |||
Basic | $0.22 | $0.01 | |
Diluted | $0.21 | $0.01 | |
Weighted average shares used in the computation of net income per share: | |||
Basic | 64,552 | 65,415 | |
Diluted | 65,449 | 66,785 |
Three Months Ended | |||
December 28, 2024 | December 30, 2023 | ||
Cash flows from operating activities: | |||
Net income | $14,181 | $567 | |
Adjustments to reconcile net income to net cash used by operating activities: | |||
Depreciation and amortization | 21,934 | 22,545 | |
Amortization of deferred financing costs | 673 | 666 | |
Non-cash lease expense | 15,131 | 12,772 | |
Stock-based compensation | 5,510 | 6,021 | |
Deferred income taxes | 1,276 | 1,498 | |
Other operating activities | (600) | (727) | |
Change in assets and liabilities (excluding businesses acquired): | |||
Accounts receivable | (73,439) | (32,952) | |
Inventories | (59,356) | (92,808) | |
Prepaid expenses and other assets | (7,522) | (5,275) | |
Accounts payable | 10,342 | 19,145 | |
Accrued expenses | 17,450 | 9,533 | |
Other long-term obligations | (73) | 3,310 | |
Operating lease liabilities | (14,339) | (14,079) | |
Net cash used by operating activities | (68,832) | (69,784) | |
Cash flows from investing activities: | |||
Additions to plant, property and equipment | (6,100) | (10,127) | |
Payments to acquire companies, net of cash acquired | (3,318) | (59,498) | |
Investments | — | (850) | |
Net cash used in investing activities | (9,418) | (70,475) | |
Cash flows from financing activities: | |||
Repayments of long-term debt | (78) | (85) | |
Repurchase of common stock, including shares surrendered for tax withholding | (54,022) | (6,775) | |
Payment of contingent consideration liability | — | (25) | |
Distribution to noncontrolling interest | (1,346) | (900) | |
Net cash used by financing activities | (55,446) | (7,785) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,038) | 790 | |
Net decrease in cash, cash equivalents and restricted cash | (135,734) | (147,254) | |
Cash, cash equivalents and restricted cash at beginning of period | 768,403 | 502,873 | |
Cash, cash equivalents and restricted cash at end of period | $632,669 | $355,619 | |
Supplemental information: | |||
Cash paid for interest | $19,903 | $19,756 | |
Lease liabilities arising from obtaining right-of-use assets | $4,789 | $13,170 |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended December 28, 2024 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $14,009 | ||||
Interest expense, net | — | — | — | 7,730 | ||||
Other expense | — | — | — | 1,717 | ||||
Income tax expense | — | — | — | 4,364 | ||||
Net income attributable to noncontrolling interest | — | — | — | 172 | ||||
Income (loss) from operations | 51,257 | 2,423 | (25,688) | 27,992 | ||||
Depreciation & amortization | 10,080 | 11,131 | 723 | 21,934 | ||||
Noncash stock-based compensation | — | — | 5,510 | 5,510 | ||||
Adjusted EBITDA | $61,337 | $13,554 | $(19,455) | $55,436 |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended December 30, 2023 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $430 | ||||
Interest expense, net | — | — | — | 9,707 | ||||
Other income | — | — | — | (993) | ||||
Income tax benefit | — | — | — | (869) | ||||
Net income attributable to noncontrolling interest | — | — | — | 137 | ||||
Income (loss) from operations | 43,388 | (8,886) | (26,090) | 8,412 | ||||
Depreciation & amortization | 10,798 | 11,006 | 741 | 22,545 | ||||
Noncash stock-based compensation | — | — | 6,021 | 6,021 | ||||
Adjusted EBITDA | $54,186 | $2,120 | $(19,328) | $36,978 |