Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v2.4.0.6
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
9 Months Ended
Jun. 23, 2012
Consolidating Condensed Financial Information of Guarantor Subsidiaries [Abstract]  
Condensed Statement of Operations based on the Company's understanding of the SEC's Interpretation
                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 161,734     $ 398,615     $ (26,541   $ 533,808  

Cost of products sold and occupancy

    111,510       268,187       (26,541     353,156  
   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    50,224       130,428       0       180,652  

Selling, general and administrative expenses

    41,061       90,622       0       131,683  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

    9,163       39,806       0       48,969  

Interest – net

    (10,727     32       0       (10,695

Other income (loss)

    (4,494     4,596       0       102  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    (6,058     44,434       0       38,376  

Income taxes (tax benefit)

    (2,361     16,915       0       14,554  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) including noncontrolling interest

    (3,697     27,519       0       23,822  

Income attributable to noncontrolling interest

    1,123       0       0       1,123  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries

    (4,820     27,519       0       22,699  

Equity in undistributed income of guarantor subsidiaries

    27,519       0       (27,519     0  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Co.

  $ 22,699     $ 27,519     $ (27,519   $ 22,699  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Three Months Ended June 25, 2011

(in thousands)

(unaudited)

 

                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 157,449     $ 358,384     $ (31,530   $ 484,303  

Cost of products sold and occupancy

    118,876       247,568       (31,530     334,914  
   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    38,573       110,816       0       149,389  

Selling, general and administrative expenses

    38,002       74,793       0       112,795  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

    571       36,023       0       36,594  

Interest – net

    (9,947     139       0       (9,808

Other income (loss )

    (576     894       0       318  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    (9,952     37,056       0       27,104  

Income taxes (tax benefit)

    (3,629     13,508       0       9,879  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) including noncontrolling interest

    (6,323     23,548       0       17,225  

Income attributable to noncontrolling interest

    144       0       0       144  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries

    (6,467     23,548       0       17,081  

Equity in undistributed income of guarantor subsidiaries

    23,548       0       (23,548     0  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Co.

  $ 17,081     $ 23,548     $ (23,548   $ 17,081  
   

 

 

   

 

 

   

 

 

   

 

 

 

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Nine Months Ended June 23, 2012

(in thousands)

(unaudited)

 

                                     
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated    

 

Net sales

  $ 416,119     $ 952,470     $ (65,812   $ 1,302,777      

Cost of products sold and occupancy

    298,413       661,090       (65,812     893,691      
   

 

 

   

 

 

   

 

 

   

 

 

     

Gross profit

    117,706       291,380       0       409,086      

Selling, general and administrative expenses

    103,123       223,052       0       326,175      
   

 

 

   

 

 

   

 

 

   

 

 

     

Income from operations

    14,583       68,328       0       82,911      

Interest – net

    (30,769     115       0       (30,654    

Other income (expense)

    (5,161     5,142       0       (19    
   

 

 

   

 

 

   

 

 

   

 

 

     

Income (loss) before income taxes

    (21,347     73,585       0       52,238      

Income tax (tax benefit)

    (7,962     27,678       0       19,716      
   

 

 

   

 

 

   

 

 

   

 

 

     

Income (loss) including noncontrolling interest

    (13,385     45,907       0       32,522      

Income attributable to noncontrolling interest

    1,290       0       0       1,290      
   

 

 

   

 

 

   

 

 

   

 

 

     

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries

    (14,675     45,907       0       31,232      

Equity in undistributed income of guarantor subsidiaries

    45,907       0       (45,907     0      
   

 

 

   

 

 

   

 

 

   

 

 

     

Net income attributable to Central Garden & Pet Co.

  $ 31,232     $ 45,907     $ (45,907   $ 31,232      
   

 

 

   

 

 

   

 

 

   

 

 

     

 

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Nine Months Ended June 25, 2011

(in thousands)

(unaudited)

 

                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 392,617     $ 966,295     $ (107,166   $ 1,251,746  

Cost of products sold and occupancy

    290,338       672,859       (107,166     856,031  
   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    102,279       293,436       0       395,715  

Selling, general and administrative expenses

    97,411       208,563       0       305,974  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

    4,868       84,873       0       89,741  

Interest – net

    (28,303     306       0       (27,997

Other income (loss)

    (2,611     2,727       0       116  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

    (26,046     87,906       0       61,860  

Income taxes (tax benefit)

    (9,166     31,118       0       21,952  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) including noncontrolling interest

    (16,880     56,788       0       39,908  

Income attributable to noncontrolling interest

    653       0       0       653  
   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries

    (17,533     56,788       0       39,255  

Equity in undistributed income of guarantor subsidiaries

    56,788       0       (56,788     0  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Co.

  $ 39,255     $ 56,788     $ (56,788   $ 39,255  
   

 

 

   

 

 

   

 

 

   

 

 

 
Condensed Balance Sheet based on the Company's understanding of the SEC Interpretation
                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  
ASSETS                                

Cash and cash equivalents

  $ 35,163     $ 5,536     $ 0     $ 40,699  

Short term investments

    17,820       0       0       17,820  

Accounts receivable, net

    82,218       173,163       (9,601     245,780  

Inventories

    102,751       232,045       0       334,796  

Prepaid expenses and other assets

    18,922       27,185       0       46,107  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    256,874       437,929       (9,601     685,202  

Land, buildings, improvements and equipment, net

    78,025       107,200       0       185,225  

Goodwill

    0       210,223       0       210,223  

Investment in guarantors

    663,351       0       (663,351     0  

Deferred income taxes and other assets

    40,053       59,015       0       99,068  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,038,303     $ 814,367     $ (672,952   $ 1,179,718  
   

 

 

   

 

 

   

 

 

   

 

 

 
         
LIABILITIES AND EQUITY                                

Accounts payable

  $ 37,202     $ 97,510     $ (9,601   $ 125,111  

Accrued expenses and other current liabilities

    56,175       50,990       0       107,165  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    93,377       148,500       (9,601     232,276  

Long-term debt

    449,406       124       0       449,530  

Other long-term obligations

    21,086       2,392       0       23,478  

Shareholders’ equity attributable to Central Garden & Pet Co.

    473,138       663,351       (663,351     473,138  

Noncontrolling interest

    1,296       0       0       1,296  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    474,434       663,351       (663,351     474,434  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,038,303     $ 814,367     $ (672,952   $ 1,179,718  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

CONSOLIDATING CONDENSED BALANCE SHEET

June 25, 2011

(in thousands)

(unaudited)

 

                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  
ASSETS                                

Cash and cash equivalents

  $ 10,121     $ 1,112     $ 0     $ 11,233  

Short term investments

    15,320       0       0       15,320  

Accounts receivable, net

    79,252       185,662       (7,496     257,418  

Inventories

    114,828       228,960       0       343,788  

Prepaid expenses and other assets

    17,502       22,593       0       40,095  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    237,023       438,327       (7,496     667,854  

Land, buildings, improvements and equipment, net

    69,255       101,932       0       171,187  

Goodwill

    0       209,348       0       209,348  

Investment in guarantors

    707,281       0       (707,281     0  

Other assets

    24,965       82,378       0       107,343  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,038,524     $ 831,985     $ (714,777   $ 1,155,732  
   

 

 

   

 

 

   

 

 

   

 

 

 
         
LIABILITIES AND EQUITY                                

Accounts payable

  $ 37,472     $ 85,404     $ (7,496   $ 115,380  

Accrued expenses and other liabilities

    55,413       37,463       0       92,876  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    92,885       122,867       (7,496     208,256  

Long-term debt

    450,163       103       0       450,266  

Other long-term obligations

    2,370       1,734       0       4,104  

Shareholders’ equity attributable to Central Garden & Pet Co.

    492,506       707,281       (707,281     492,506  

Noncontrolling interest

    600       0       0       600  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    493,106       707,281       (707,281     493,106  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,038,524     $ 831,985     $ (714,777   $ 1,155,732  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

CONSOLIDATING CONDENSED BALANCE SHEET

September 24, 2011

(in thousands)

(unaudited)

 

                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  
         
ASSETS                                

Cash and cash equivalents

  $ 10,633     $ 1,398     $ 0     $ 12,031  

Short term investments

    17,820       0       0       17,820  

Accounts receivable, net

    47,698       153,306       (5,587     195,417  

Inventories

    102,861       226,685       0       329,546  

Prepaid expenses and other assets

    29,077       18,695       0       47,772  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    208,089       400,084       (5,587     602,586  

Land, buildings, improvements and equipment, net

    72,505       103,897       0       176,402  

Goodwill

    0       210,223       0       210,223  

Investment in guarantors

    645,876       0       (645,876     0  

Other assets

    38,622       65,170       0       103,792  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 965,092     $ 779,374     $ (651,463   $ 1,093,003  
   

 

 

   

 

 

   

 

 

   

 

 

 
         
LIABILITIES AND EQUITY                                

Accounts payable

  $ 28,072     $ 94,039     $ (5,587   $ 116,524  

Accrued expenses and other liabilities

    37,825       37,582       0       75,407  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    65,897       131,621       (5,587     191,931  

Long-term debt

    435,245       85       0       435,330  

Other long-term obligations

    7,168       1,792       0       8,960  

Shareholders’ equity attributable to Central Garden & Pet Co.

    456,776       645,876       (645,876     456,776  

Noncontrolling interest

    6       0       0       6  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    456,782       645,876       (645,876     456,782  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 965,092     $ 779,374     $ (651,463   $ 1,093,003  
   

 

 

   

 

 

   

 

 

   

 

 

 
Condensed Cash Flows Statement on the Company's understanding of the SEC Interpretation
                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash provided by operating activities

  $ 64,057     $ 46,004     $ (45,907   $ 64,154  
   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property and equipment

    (13,607     (13,323     0       (26,930

Investment in guarantor subsidiaries

    (17,475     (28,432     45,907       0  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

    (31,082     (41,755     45,907       (26,930
   

 

 

   

 

 

   

 

 

   

 

 

 

Proceeds from issuance of long-term debt

    49,288       0       0       49,288  

Repayments of long-term debt

    (175     (91     0       (266

Borrowings under revolving line of credit

    304,000       0       0       304,000  

Repayments under revolving line of credit

    (339,000     0       0       (339,000

Repurchase of common stock

    (23,151     0       0       (23,151

Proceeds from issuance of common stock

    1,291       0       0       1,291  

Deferred financing costs

    (1,715     0       0       (1,715

Excess tax benefits from stock-based awards

    938       0       0       938  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by financing activities

    (8,524     (91     0       (8,615

Effect of exchange rate changes on cash

    79       (20     0       59  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

    24,530       4,138       0       28,668  

Cash and cash equivalents at beginning of period

    10,633       1,398       0       12,031  
   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

  $ 35,163     $ 5,536     $ 0     $ 40,699  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

Nine Months Ended June 25, 2011

(in thousands)

(unaudited)

 

                                 
    Parent     Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash provided by operating activities

  $ 61,141     $  (5,856   $ (56,788   $ (1,503
   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property and equipment

    (10,901     (9,290     0       (20,191

Businesses acquired, net of cash acquired

    (23,403     (1,029     0       (24,432

Investment in guarantor subsidiaries

    (73,372     16,584       56,788       0  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used by) investing activities

    (107,676     6,265       56,788       (44,623
   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments of long-term debt

    (93     (128     0       (221

Proceeds from revolver

    593,000       0       0       593,000  

Repayments of revolver

    (543,000     0       0       (543,000

Repurchase of common stock

    (83,602     0       0       (83,602

Proceeds from issuance of common stock

    1,436       0       0       1,436  

Payment of financing costs

    (1,034     0       0       (1,034

Excess tax benefits from stock-based awards

    791       0       0       791  

Distribution to noncontrolling interest

    (1,500     0       0       (1,500
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by financing activities

    (34,002     (128     0       (34,130
   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash

    394       (365     0       29  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

    (80,143     (84     0       (80,227

Cash and cash equivalents at beginning of period

    90,265       1,195       0       91,460  
   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

  $ 10,122     $ 1,111     $ 0     $ 11,233