March 29, 2025 | March 30, 2024 | September 28, 2024 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $516,675 | $301,332 | $753,550 | ||
Restricted cash | 14,662 | 14,197 | 14,853 | ||
Accounts receivable (less allowance for credit losses and customer allowances of $22,628, $27,677 and $21,035) | 578,880 | 578,237 | 326,220 | ||
Inventories, net | 824,281 | 914,352 | 757,943 | ||
Prepaid expenses and other | 40,755 | 42,500 | 34,240 | ||
Total current assets | 1,975,253 | 1,850,618 | 1,886,806 | ||
Plant, property and equipment, net | 368,468 | 387,203 | 379,166 | ||
Goodwill | 554,692 | 546,436 | 551,361 | ||
Other intangible assets, net | 461,657 | 480,910 | 473,280 | ||
Operating lease right-of-use assets | 208,863 | 170,849 | 205,137 | ||
Other assets | 60,684 | 104,002 | 57,689 | ||
Total | $3,629,617 | $3,540,018 | $3,553,439 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $263,712 | $237,310 | $212,606 | ||
Accrued expenses | 275,374 | 267,813 | 245,226 | ||
Current lease liabilities | 58,443 | 51,045 | 57,313 | ||
Current portion of long-term debt | 122 | 322 | 239 | ||
Total current liabilities | 597,651 | 556,490 | 515,384 | ||
Long-term debt | 1,190,724 | 1,188,955 | 1,189,809 | ||
Long-term lease liabilities | 175,581 | 134,723 | 173,086 | ||
Deferred income taxes and other long-term obligations | 122,257 | 147,683 | 117,615 | ||
Equity: | |||||
Common stock, $0.01 par value: 10,218,481, 11,077,612 and 11,074,620 shares outstanding at March 29, 2025, March 30, 2024 and September 28, 2024 | 102 | 111 | 111 | ||
Class A common stock, $0.01 par value: 52,615,383, 54,659,683 and 54,446,194 shares outstanding at March 29, 2025, March 30, 2024 and September 28, 2024 | 526 | 547 | 544 | ||
Class B stock, $0.01 par value: 1,602,374 shares outstanding at March 29, 2025, March 30, 2024 and September 28, 2024 | 16 | 16 | 16 | ||
Additional paid-in capital | 575,769 | 592,136 | 598,098 | ||
Retained earnings | 969,715 | 920,803 | 959,511 | ||
Accumulated other comprehensive loss | (4,615) | (2,825) | (2,626) | ||
Total Central Garden & Pet Company shareholders’ equity | 1,541,513 | 1,510,788 | 1,555,654 | ||
Noncontrolling interest | 1,891 | 1,379 | 1,891 | ||
Total equity | 1,543,404 | 1,512,167 | 1,557,545 | ||
Total | $3,629,617 | $3,540,018 | $3,553,439 |
Three Months Ended | Six Months Ended | ||||||
March 29, 2025 | March 30, 2024 | March 29, 2025 | March 30, 2024 | ||||
Net sales | $833,537 | $900,090 | $1,489,973 | $1,534,623 | |||
Cost of goods sold | 560,454 | 621,210 | 1,021,191 | 1,076,898 | |||
Gross profit | 273,083 | 278,880 | 468,782 | 457,725 | |||
Selling, general and administrative expenses | 179,759 | 185,433 | 347,466 | 355,866 | |||
Operating income | 93,324 | 93,447 | 121,316 | 101,859 | |||
Interest expense | (14,510) | (14,376) | (28,980) | (28,692) | |||
Interest income | 5,152 | 2,903 | 11,892 | 7,512 | |||
Other income (expense) | 744 | (171) | (973) | 822 | |||
Income before income taxes and noncontrolling interest | 84,710 | 81,803 | 103,255 | 81,501 | |||
Income tax expense | 19,903 | 19,134 | 24,267 | 18,265 | |||
Income including noncontrolling interest | 64,807 | 62,669 | 78,988 | 63,236 | |||
Net income attributable to noncontrolling interest | 1,174 | 682 | 1,346 | 819 | |||
Net income attributable to Central Garden & Pet Company | $63,633 | $61,987 | $77,642 | $62,417 | |||
Net income per share attributable to Central Garden & Pet Company: | |||||||
Basic | $0.99 | $0.94 | $1.21 | $0.95 | |||
Diluted | $0.98 | $0.93 | $1.19 | $0.93 | |||
Weighted average shares used in the computation of net income per share: | |||||||
Basic | 64,140 | 65,638 | 64,346 | 65,526 | |||
Diluted | 64,879 | 66,831 | 65,171 | 66,815 |
Six Months Ended | |||
March 29, 2025 | March 30, 2024 | ||
Cash flows from operating activities: | |||
Net income | $78,988 | $63,236 | |
Adjustments to reconcile net income to net cash used by operating activities: | |||
Depreciation and amortization | 42,580 | 45,357 | |
Amortization of deferred financing costs | 1,347 | 1,340 | |
Non-cash lease expense | 29,987 | 25,753 | |
Stock-based compensation | 9,528 | 8,927 | |
Deferred income taxes | 2,525 | 2,673 | |
Other operating activities | (1,056) | 1,811 | |
Change in assets and liabilities (excluding businesses acquired): | |||
Accounts receivable | (252,375) | (240,408) | |
Inventories | (67,654) | (59,263) | |
Prepaid expenses and other assets | (11,542) | (7,492) | |
Accounts payable | 50,504 | 41,475 | |
Accrued expenses | 28,416 | 46,785 | |
Other long-term obligations | 2,100 | 673 | |
Operating lease liabilities | (29,043) | (25,169) | |
Net cash used by operating activities | (115,695) | (94,302) | |
Cash flows from investing activities: | |||
Additions to plant, property and equipment | (16,760) | (19,478) | |
Payments to acquire companies, net of cash acquired | (3,318) | (59,818) | |
Investments | — | (850) | |
Other investing activities | (125) | (140) | |
Net cash used in investing activities | (20,203) | (80,286) | |
Cash flows from financing activities: | |||
Repayments of long-term debt | (145) | (159) | |
Repurchase of common stock, including shares surrendered for tax withholding | (98,233) | (12,055) | |
Payment of contingent consideration liability | — | (57) | |
Distribution to noncontrolling interest | (1,346) | (900) | |
Net cash used by financing activities | (99,724) | (13,171) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,444) | 415 | |
Net decrease in cash, cash equivalents and restricted cash | (237,066) | (187,344) | |
Cash, cash equivalents and restricted cash at beginning of period | 768,403 | 502,873 | |
Cash, cash equivalents and restricted cash at end of period | $531,337 | $315,529 | |
Supplemental information: | |||
Cash paid for interest | $28,976 | $28,695 | |
Cash paid for income taxes | $13,368 | $13,775 | |
Lease liabilities arising from obtaining right-of-use assets | $30,776 | $24,652 |
Net Income and Diluted Net Income Per Share Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended | Six Months Ended | |||||||
March 29, 2025 | March 30, 2024 | March 29, 2025 | March 30, 2024 | |||||
(in thousands, except per share amounts) | ||||||||
GAAP net income attributable to Central Garden & Pet Company | $63,633 | $61,987 | $77,642 | $62,417 | ||||
Facility closures | (1)(2) | 5,339 | 5,270 | 5,339 | 5,270 | |||
Tax effect of facility closures & business exit | (1,255) | (1,233) | (1,255) | (1,233) | ||||
Non-GAAP net income attributable to Central Garden & Pet Company | $67,717 | $66,024 | $81,726 | $66,454 | ||||
GAAP diluted net income per share | $0.98 | $0.93 | $1.19 | $0.93 | ||||
Non-GAAP diluted net income per share | $1.04 | $0.99 | $1.25 | $0.99 | ||||
Shares used in GAAP and non-GAAP diluted net earnings per share calculation | 64,879 | 66,831 | 65,171 | 66,815 |
Operating Income Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended March 29, 2025 | Six Months Ended March 29, 2025 | |||||||
GAAP | Facility closure(1) | Non-GAAP | GAAP | Facility closure(1) | Non-GAAP | |||
(in thousands) | ||||||||
Net sales | $833,537 | $— | $833,537 | $1,489,973 | $— | $1,489,973 | ||
Cost of goods sold and occupancy | 560,454 | 4,413 | 556,041 | 1,021,191 | 4,413 | 1,016,778 | ||
Gross profit | $273,083 | $(4,413) | $277,496 | $468,782 | $(4,413) | $473,195 | ||
Selling, general and administrative expenses | 179,759 | 926 | 178,833 | 347,466 | 926 | 346,540 | ||
Income from operations | $93,324 | $(5,339) | $98,663 | $121,316 | $(5,339) | $126,655 | ||
Gross margin | 32.8% | 33.3% | 31.5% | 31.8% | ||||
Operating margin | 11.2% | 11.8% | 8.1% | 8.5% |
Operating Income Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended March 30, 2024 | Six Months Ended March 30, 2024 | |||||||
GAAP | Facility closures(2) | Non-GAAP | GAAP | Facility closures(2) | Non-GAAP | |||
(in thousands) | ||||||||
Net sales | $900,090 | $— | $900,090 | $1,534,623 | $— | $1,534,623 | ||
Cost of goods sold and occupancy | 621,210 | 2,527 | 618,683 | 1,076,898 | 2,527 | 1,074,371 | ||
Gross profit | $278,880 | $(2,527) | $281,407 | $457,725 | $(2,527) | $460,252 | ||
Selling, general and administrative expenses | 185,433 | 2,743 | 182,690 | 355,866 | 2,743 | 353,123 | ||
Income from operations | $93,447 | $(5,270) | $98,717 | $101,859 | $(5,270) | $107,129 | ||
Gross margin | 31.0% | 31.3% | 29.8% | 30.0% | ||||
Operating margin | 10.4% | 11.0% | 6.6% | 7.0% |
Pet Segment Operating Income Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended | Six Months Ended | |||||||
March 29, 2025 | March 30, 2024 | March 29, 2025 | March 30, 2024 | |||||
(in thousands) | ||||||||
GAAP operating income | $60,614 | $62,659 | $111,871 | $106,047 | ||||
Facility closure | (1) | 5,339 | — | 5,339 | — | |||
Non-GAAP operating income | $65,953 | $62,659 | $117,210 | $106,047 | ||||
GAAP operating margin | 13.4% | 13.0% | 12.7% | 11.9% | ||||
Non-GAAP operating margin | 14.5% | 13.0% | 13.3% | 11.9% |
Garden Segment Operating Income Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended | Six Months Ended | |||||||
March 29, 2025 | March 30, 2024 | March 29, 2025 | March 30, 2024 | |||||
(in thousands) | ||||||||
GAAP operating income | $58,731 | $57,066 | $61,154 | $48,180 | ||||
Facility closure | (2) | — | 5,270 | — | 5,270 | |||
Non-GAAP operating income | $58,731 | $62,336 | $61,154 | $53,450 | ||||
GAAP operating margin | 15.5% | 13.6% | 10.0% | 7.5% | ||||
Non-GAAP operating margin | 15.5% | 14.8% | 10.0% | 8.3% |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended March 29, 2025 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $63,633 | ||||
Interest expense, net | — | — | — | 9,358 | ||||
Other income | — | — | — | (744) | ||||
Income tax expense | — | — | — | 19,903 | ||||
Net income attributable to noncontrolling interest | — | — | — | 1,174 | ||||
Income (loss) from operations | 60,614 | 58,731 | (26,021) | 93,324 | ||||
Depreciation & amortization | 9,498 | 10,443 | 705 | 20,646 | ||||
Noncash stock-based compensation | — | — | 4,018 | 4,018 | ||||
Facility closure | (1) | 5,339 | — | — | 5,339 | |||
Adjusted EBITDA | $75,451 | $69,174 | $(21,298) | $123,327 |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Three Months Ended March 30, 2024 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $61,987 | ||||
Interest expense, net | — | — | — | 11,473 | ||||
Other expense | — | — | — | 171 | ||||
Income tax expense | — | — | — | 19,134 | ||||
Net income attributable to noncontrolling interest | — | — | — | 682 | ||||
Income (loss) from operations | 62,659 | 57,066 | (26,278) | 93,447 | ||||
Depreciation & amortization | 11,124 | 11,014 | 674 | 22,812 | ||||
Noncash stock-based compensation | — | — | 2,907 | 2,907 | ||||
Facility closures | (2) | — | 5,270 | — | 5,270 | |||
Adjusted EBITDA | $73,783 | $73,350 | $(22,697) | $124,436 |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Six Months Ended March 29, 2025 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $77,642 | ||||
Interest expense, net | — | — | — | 17,088 | ||||
Other expense | — | — | — | 973 | ||||
Income tax expense | — | — | — | 24,267 | ||||
Net income attributable to noncontrolling interest | — | — | — | 1,346 | ||||
Income (loss) from operations | 111,871 | 61,154 | (51,709) | 121,316 | ||||
Depreciation & amortization | 19,578 | 21,574 | 1,428 | 42,580 | ||||
Noncash stock-based compensation | — | — | 9,528 | 9,528 | ||||
Facility closure | (1) | 5,339 | — | — | 5,339 | |||
Adjusted EBITDA | $136,788 | $82,728 | $(40,753) | $178,763 |
Adjusted EBITDA Reconciliation | GAAP to Non-GAAP Reconciliation | |||||||
Six Months Ended March 30, 2024 | ||||||||
Pet | Garden | Corporate | Total | |||||
(in thousands) | ||||||||
Net income attributable to Central Garden & Pet Company | $— | $— | $— | $62,417 | ||||
Interest expense, net | — | — | — | 21,180 | ||||
Other income | — | — | — | (822) | ||||
Income tax expense | — | — | — | 18,265 | ||||
Net income attributable to noncontrolling interest | — | — | — | 819 | ||||
Income (loss) from operations | 106,047 | 48,180 | (52,368) | 101,859 | ||||
Depreciation & amortization | 21,922 | 22,020 | 1,415 | 45,357 | ||||
Noncash stock-based compensation | — | — | 8,927 | 8,927 | ||||
Facility closures | (2) | — | 5,270 | — | 5,270 | |||
Adjusted EBITDA | $127,969 | $75,470 | $(42,026) | $161,413 |