PRESS RELEASE
Published on May 7, 2004
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: | Andrew Tammen | |
Central Garden & Pet | ||
(925) 283-4573 |
CENTRAL GARDEN & PET REPORTS SECOND QUARTER
RESULTS FOR FISCAL 2004
SECOND QUARTER EARNINGS PER SHARE INCREASED 34%
RAISES FISCAL 2004 EARNINGS GUIDANCE
DUE TO SUSTAINED ORGANIC GROWTH AND ACQUISITIONS
LAFAYETTE, CALIFORNIA, May 6, 2004 Central Garden & Pet Company (NASDAQ: CENT) today announced its financial results for the fiscal second quarter of 2004, ended March 27, 2004.
Net sales for the second quarter were $359.0 million, an 8.6% increase from $330.5 million in the comparable fiscal 2003 period. The Company recorded net income for the quarter of $18.8 million, or $0.91 per diluted share, compared with net income of $13.5 million, or $0.68 per diluted share, in the comparable year-ago period. Year-over-year second quarter earnings per share increased 34%.
The improved results for the second fiscal quarter of 2004 versus 2003 were primarily driven by continued growth of the Companys branded products, including contributions from the recent Kent Marine and New England Pottery acquisitions, improved gross margins and lower interest expense.
Income from operations for the second quarter of 2004 improved 22% to $34.4 million from $28.2 million in the year-ago period. Depreciation and amortization for the most recent quarter totaled $4.3 million, the same as the prior year.
Net sales for the first six months of fiscal 2004 were $581.3 million, up 7.2%, compared with $542.4 million in the comparable 2003 period. Net income for the first half of 2004 was $18.2 million, or $0.88 per diluted share, compared with $12.8 million, or $0.64 per diluted share, in the comparable year ago period.
-more-
Central continues to anticipate earnings growth from its existing operations and recent acquisitions, and is raising its estimate for fiscal 2004 net income from a range of $2.10-$2.20 per diluted share to a range of $2.15-$2.23 per diluted share, a 24% to 29% increase over fiscal 2003. This earnings guidance includes the recently completed acquisition of Interpet.
The Company will discuss its fiscal second quarter 2004 results and the Interpet acquisition 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, Four Paws and Interpet. 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, New England Pottery, GKI/Bethlehem Lighting, 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 |
Six Months Ended |
|||||||||||||||
March 27, 2004 |
March 29, 2003 |
March 27, 2004 |
March 29, 2003 |
|||||||||||||
Net Sales |
$ | 358,985 | $ | 330,509 | $ | 581,335 | $ | 542,445 | ||||||||
Cost of Goods Sold and Occupancy |
246,959 | 231,419 | 407,238 | 382,137 | ||||||||||||
Gross Profit |
112,026 | 99,090 | 174,097 | 160,308 | ||||||||||||
Selling, General and Administrative Expenses |
77,669 | 70,916 | 136,180 | 130,170 | ||||||||||||
Income from Operations |
34,357 | 28,174 | 37,917 | 30,138 | ||||||||||||
Interest Expense |
(4,459 | ) | (6,341 | ) | (8,564 | ) | (9,184 | ) | ||||||||
Interest Income |
123 | 44 | 322 | 70 | ||||||||||||
Other Income |
985 | 671 | 270 | 330 | ||||||||||||
Income Before Income Taxes |
31,006 | 22,548 | 29,945 | 21,354 | ||||||||||||
Income Taxes |
12,162 | 9,019 | 11,746 | 8,542 | ||||||||||||
Net Income |
$ | 18,844 | $ | 13,529 | $ | 18,199 | $ | 12,812 | ||||||||
Earnings Per Common Share: |
||||||||||||||||
Basic |
$ | 0.94 | $ | 0.70 | $ | 0.91 | $ | 0.67 | ||||||||
Diluted |
$ | 0.91 | $ | 0.68 | $ | 0.88 | $ | 0.64 | ||||||||
Weighted Average Shares Outstanding |
||||||||||||||||
Basic |
20,030 | 19,234 | 19,939 | 19,147 | ||||||||||||
Diluted |
20,803 | 20,009 | 20,646 | 19,900 |
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 27, 2004 |
March 29, 2003 |
September 27, 2003 |
|||||||
Assets |
|||||||||
Current Assets: |
|||||||||
Cash and Equivalents |
$ | 12,568 | $ | 7,007 | $ | 77,604 | |||
Restricted Investments |
15,179 | | | ||||||
Accounts Receivable |
225,381 | 200,954 | 146,075 | ||||||
Inventories |
252,614 | 231,438 | 217,156 | ||||||
Other Current Assets |
10,766 | 13,926 | 15,222 | ||||||
Total Current Assets |
516,508 | 453,325 | 456,057 | ||||||
Property & Equipment - Net |
101,347 | 99,235 | 101,538 | ||||||
Other Assets |
335,482 | 272,936 | 271,503 | ||||||
Total |
$ | 953,337 | $ | 825,496 | $ | 829,098 | |||
Liabilities & Shareholders Equity |
|||||||||
Current Liabilities: |
|||||||||
Notes Payable |
$ | | $ | 81,747 | $ | | |||
Accounts Payable |
133,543 | 129,848 | 105,103 | ||||||
Accrued Expenses |
55,663 | 48,220 | 47,061 | ||||||
Current Portion of Long-Term Debt |
1,027 | 6,503 | 1,028 | ||||||
Total Current Liabilities |
190,233 | 266,318 | 153,192 | ||||||
Long-Term Debt |
311,296 | 160,922 | 249,225 | ||||||
Other Long-Term Obligations |
1,580 | 2,128 | 1,585 | ||||||
Shareholders Equity |
450,228 | 396,128 | 425,096 | ||||||
Total |
$ | 953,337 | $ | 825,496 | $ | 829,098 | |||