PRESS RELEASE
Published on February 5, 2004
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: | Andrew Tammen Central Garden & Pet (925) 283-4573 |
CENTRAL GARDEN & PET REPORTS FIRST QUARTER
RESULTS FOR FISCAL 2004
RAISES FISCAL 2004 EARNINGS GUIDANCE
TO $2.10-$2.20 PER DILUTED SHARE
A 21% TO 27% INCREASE OVER FISCAL 2003
LAFAYETTE, CALIFORNIA, February 5, 2004 Central Garden & Pet Company (NASDAQ: CENT) today announced its financial results for the fiscal first quarter of 2004, ended December 27, 2003.
Net sales for the first quarter were $222.4 million, a 5% increase from $211.9 million in the comparable fiscal 2003 period. The Company recorded a net loss for the quarter of $645,000, or $0.03 per diluted share, compared with a net loss of $717,000, or $0.04 per diluted share, in the comparable year-ago period. Central typically reports a loss in the three-month period ending in December, which is the slowest time of the year for the garden industry.
Income from operations for the first fiscal quarter of 2004 improved 80% to $3.6 million from $2.0 million in the year-ago period. The improved results for the quarter were driven by continued sales growth of the Companys branded products as well as lower administrative expenses. The improved operating results for the quarter were partially offset by higher interest costs. Depreciation and amortization for the most recent quarter totaled $4.6 million compared to $4.5 million in the fiscal 2003 quarter.
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Central continues to anticipate substantial earnings growth in fiscal 2004. With the recent acquisition of Kent Marine and the pending acquisition of New England Pottery, Central is raising its fiscal 2004 net income guidance to $2.10-$2.20 per diluted share from the previously expected range of $2.00-$2.10 per diluted share, a 21% to 27% increase over fiscal 2003.
The Company will discuss its fiscal first quarter 2004 results, the Kent Marine and New England Pottery acquisitions, and its updated 2004 earnings guidance on an earnings conference call today at 4:30 p.m. EST. The earnings conference call will be simultaneously broadcast over the Internet through Centrals website, http://www.centralgardenandpet.com/. To listen to the webcast, please log on to the website prior to the scheduled call time to register and download any necessary audio software.
Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products for the pet and lawn and garden supplies markets. Our pet products include pet bird and small animal food, aquarium products, flea, tick mosquito and other pest control products, edible bones, cages, carriers, pet books, and other dog, cat, reptile and small animal products. These products are sold under a number of brand names, including Kaytee, All-Glass Aquarium, Oceanic, Kent Marine, Zodiac, Pre-Strike, Altosid, Nylabone, TFH and Four Paws. Our lawn and garden products include grass seed, wild bird food, weed and insect control products, decorative outdoor patio products and ant control products. These products are sold under a number of brand names, including Pennington, Norcal Pottery, Lilly Miller, Matthews Four Seasons, AMDRO and Grants. For additional information on Central Garden & Pet, including access to the Companys SEC filings, please visit the Companys website at http://www.centralgardenandpet.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 Companys Securities and Exchange Commission filings. Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
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(Tables follow)
Central Garden & Pet Company
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended |
||||||||
December 27, 2003 |
December 28, 2002 |
|||||||
Net Sales |
$ | 222,350 | $ | 211,936 | ||||
Cost of Goods Sold and Occupancy |
160,279 | 150,718 | ||||||
Gross Profit |
62,071 | 61,218 | ||||||
Selling, General and Administrative |
||||||||
Expenses |
58,511 | 59,254 | ||||||
Income from Operations |
3,560 | 1,964 | ||||||
Interest Expense |
(4,105 | ) | (2,843 | ) | ||||
Interest Income |
199 | 26 | ||||||
Other Expense |
(715 | ) | (341 | ) | ||||
Loss Before Income Taxes |
(1,061 | ) | (1,194 | ) | ||||
Income Taxes |
(416 | ) | (477 | ) | ||||
Net Loss |
$ | (645 | ) | $ | (717 | ) | ||
Basic and Diluted Loss Per Common Share |
$ | (0.03 | ) | $ | (0.04 | ) | ||
Weighted Average Shares Outstanding |
||||||||
Basic |
19,877 | 19,060 | ||||||
Diluted |
19,877 | 19,060 |
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 27, 2003 |
December 28, 2002 |
September 27, 2003 |
|||||||
Assets |
|||||||||
Current Assets: |
|||||||||
Cash & Cash Equivalents |
$ | 65,265 | $ | 14,790 | $ | 77,604 | |||
Restricted Investments |
15,052 | | | ||||||
Accounts Receivable |
113,839 | 105,843 | 146,075 | ||||||
Inventories |
243,911 | 224,889 | 217,156 | ||||||
Other Current Assets |
17,601 | 19,115 | 15,222 | ||||||
Total Current Assets |
455,668 | 364,637 | 456,057 | ||||||
Property & EquipmentNet |
101,873 | 99,060 | 101,538 | ||||||
Other Assets |
274,261 | 269,280 | 271,503 | ||||||
Total |
$ | 831,802 | $ | 732,977 | $ | 829,098 | |||
Liabilities & Shareholders Equity |
|||||||||
Current Liabilities: |
|||||||||
Notes Payable |
$ | | $ | 64,649 | $ | | |||
Accounts Payable |
105,112 | 95,776 | 105,103 | ||||||
Accrued Expenses |
47,556 | 39,392 | 47,061 | ||||||
Current Portion of Long-Term Debt |
1,028 | 122,593 | 1,028 | ||||||
Total Current Liabilities |
153,696 | 322,410 | 153,192 | ||||||
Long-Term Liabilities |
249,782 | 29,592 | 249,225 | ||||||
Other Long-Term Obligations |
1,570 | 2,059 | 1,585 | ||||||
Shareholders Equity |
426,754 | 378,916 | 425,096 | ||||||
Total |
$ | 831,802 | $ | 732,977 | $ | 829,098 | |||