Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries

v2.4.1.9
Consolidating Condensed Financial Information of Guarantor Subsidiaries
6 Months Ended
Mar. 28, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Condensed Financial Information of Guarantor Subsidiaries

 

12.   Consolidating Condensed Financial Information of Guarantor Subsidiaries

Certain 100% wholly-owned subsidiaries of the Company (as listed below, collectively the “Guarantor Subsidiaries”) have guaranteed fully and unconditionally, on a joint and several basis, the obligation to pay principal and interest on the Company’s 2018 Notes. Certain subsidiaries and operating divisions are not guarantors of the Notes. Those subsidiaries that are guarantors and co-obligors of the Notes are as follows:

Farnam Companies, Inc.

Four Paws Products Ltd.

Gulfstream Home & Garden, Inc.

Kaytee Products, Inc.

Matson, LLC

New England Pottery, LLC

Pennington Seed, Inc. (including Gro Tec, Inc. and All-Glass Aquarium Co., Inc.)

Pets International, Ltd.

T.F.H. Publications, Inc.

Wellmark International (including B2E Corporation and B2E Biotech LLC)

In lieu of providing separate audited financial statements for the Guarantor Subsidiaries, the Company has included the accompanying consolidating condensed financial statements based on the Company’s understanding of the Securities and Exchange Commission’s interpretation and application of Rule 3-10 of the Securities and Exchange Commission’s Regulation S-X.

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Three Months Ended March 28, 2015

 
     (in thousands)        
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 150,014      $ 37,434      $ 338,994      $ (28,840   $ 497,602   

Cost of goods sold and occupancy

     113,668        29,545        231,403        (27,076     347,540   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  36,346      7,889      107,591      (1,764   150,062   

Selling, general and administrative expenses

  30,843      5,339      65,673      (1,764   100,091   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

  5,503      2,550      41,918      (0   49,971   

Interest expense

  (11,815   (61   (0   (0   (11,876

Interest income

  18      0      0      0      18   

Other income (expense)

  (347   (0   226      (0   (121
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before taxes and equity in earnings of affiliates

  (6,641   2,489      42,144      (0   37,992   

Income tax (benefit) expense

  (1,123   952      14,183      (0   14,012   

Equity in earnings of affiliates

  28,755      0      796      (29,551   0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

  23,237      1,537      28,757      (29,551   23,980   

Net income attributable to noncontrolling interest

  0      743      0      0      743   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

$ 23,237    $ 794    $ 28,757    $ (29,551 $ 23,237   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Three Months Ended March 29, 2014 (As Revised)

 
     (in thousands)        
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 146,049      $ 40,409      $ 340,660      $ (25,507   $ 501,611   

Cost of goods sold and occupancy

     109,458        30,652        237,863        (23,958     354,015   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  36,591      9,757      102,797      (1,549   147,596   

Selling, general and administrative expenses

  29,798      6,595      67,983      (1,549   102,827   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

  6,793      3,162      34,814      0      44,769   

Interest expense

  (10,375   (25   (5   0      (10,405

Interest income

  16      0      0      0      16   

Other income

  50      0      58      0      108   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before taxes and equity in earnings of affiliates

  (3,516   3,137      34,867      0      34,488   

Income tax (benefit) expense

  (1,011   1,226      12,784      0      12,999   

Equity in earnings of affiliates

  23,400      0      1,353      (24,753   0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

  20,895      1,911      23,436      (24,753   21,489   

Net income attributable to noncontrolling interest

  0      594      0      0      594   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

$ 20,895    $ 1,317    $ 23,436    $ (24,753 $ 20,895   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Six Months Ended March 28, 2015

 
     (in thousands)        
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 246,976      $ 54,757      $ 546,119      $ (42,930   $ 804,922   

Cost of goods sold and occupancy

     192,447        44,123        370,494        (40,185     566,879   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  54,529      10,634      175,625      (2,745   238,043   

Selling, general and administrative expenses

  58,694      9,338      121,647      (2,745   186,934   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

  (4,165   1,296      53,978      (0   51,109   

Interest expense

  (22,302   (76   (1   (0   (22,379

Interest income

  88      1      0      0      89   

Other income (expense)

  (677   (0   188      (0   (489
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before taxes and equity in earnings of affiliates

  (27,056   1,221      54,165      (0   28,330   

Income tax (benefit) expense

  (9,580   508      19,115      (0   10,043   

Equity in earnings of affiliates

  35,016      0      209      (35,225   0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

  17,540      713      35,259      (35,225   18,287   

Net income attributable to noncontrolling interest

  0      747      0      0      747   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Central Garden & Pet Company

$ 17,540    $ (34 $ 35,259    $ (35,225 $ 17,540   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Six Months Ended March 29, 2014 (As Revised)

       
     (in thousands)        
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 232,282      $ 53,795      $ 543,682      $ (37,627   $ 792,132   

Cost of goods sold and occupancy

     177,949        41,661        380,365        (35,180     564,795   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

  54,333      12,134      163,317      (2,447   227,337   

Selling, general and administrative expenses

  55,654      10,012      127,704      (2,447   190,923   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

  (1,321   2,122      35,613      0      36,414   

Interest expense

  (22,566   (31   (25   0      (22,622

Interest income

  29      0      0      0      29   

Other income (expense)

  7      0      (67   0      (60
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before taxes and equity in earnings of affiliates

  (23,851   2,091      35,521      0      13,761   

Income tax (benefit) expense

  (8,818   911      12,991      0      5,084   

Equity in earnings of affiliates

  23,220      0      1,053      (24,273   0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

  8,187      1,180      23,583      (24,273   8,677   

Net income attributable to noncontrolling interest

  0      490      0      0      490   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

$ 8,187    $ 690    $ 23,583    $ (24,273 $ 8,187   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(LOSS)

Three Months Ended March 28, 2015

 
     (in thousands)  
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 23,237      $ 1,537      $ 28,757      $ (29,551   $ 23,980   

Other comprehensive income (loss):

          

Unrealized loss on securities

     (20     0        0        0        (20

Reclassification of realized loss on securities included in net income

     20        0        0        0        20   

Foreign currency translation

     (626     (355     (164     519        (626
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

  22,611      1,182      28,593      (29,032   23,354   

Comprehensive income attributable to noncontrolling interests

  0      743      0      0      743   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden & Pet Company

$ 22,611    $ 439    $ 28,593    $ (29,032 $ 22,611   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 29, 2014 (As Revised)

 
     (in thousands)  
     Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 20,895      $ 1,911      $ 23,436      $ (24,753   $ 21,489   

Other comprehensive income:

          

Foreign currency translation

     0        2        0        0        2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

  20,895      1,913      23,436      (24,753   21,491   

Comprehensive income attributable to noncontrolling interests

  0      594      0      0      594   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden & Pet Company

$ 20,895    $ 1,319    $ 23,436    $ (24,753 $ 20,897   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Six Months Ended March 28, 2015

 
     (in thousands)  
     Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 17,540      $ 713      $ 35,259      $ (35,225   $ 18,287   

Other comprehensive income (loss):

          

Unrealized loss on securities

     (10     0        0        0        (10

Reclassification of realized loss on securities included in net income

     20        0        0        0        20   

Foreign currency translation

     (1,178     (700     (268     968        (1,178
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

  16,372      13      34,991      (34,257   17,119   

Comprehensive income attributable to noncontrolling interests

  0      747      0      0      747   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income (loss) attributable to Central Garden & Pet Company

$ 16,372    $ (734 $ 34,991    $ (34,257 $ 16,372   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

Six Months Ended March 29, 2014 (As Revised)

 
     (in thousands)  
     Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 8,187      $ 1,180      $ 23,583      $ (24,273   $ 8,677   

Other comprehensive income:

          

Foreign currency translation

     0        87        0        0        87   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

  8,187      1,267      23,583      (24,273   8,764   

Comprehensive income attributable to noncontrolling interests

  0      490      0      0      490   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden & Pet Company

$ 8,187    $ 777    $ 23,583    $ (24,273 $ 8,274   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED BALANCE SHEET

March 28, 2015

 
     (in thousands)  
     Parent      Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
     Eliminations     Consolidated  

ASSETS

            

Cash and cash equivalents

   $ 6,159       $ 4,309      $ 1,475       $ 0      $ 11,943   

Restricted cash

     12,583         0        0         0        12,583   

Accounts receivable, net

     86,569         17,099        218,097         0        321,765   

Inventories

     95,564         19,429        267,335         0        382,328   

Prepaid expenses and other

     26,013         901        31,337         0        58,251   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current assets

  226,888      41,738      518,244      0      786,870   

Land, buildings, improvements and equipment, net

  57,093      3,590      102,524      0      163,207   

Goodwill

  0      0      209,089      0      209,089   

Other long term assets

  34,187      3,999      81,263      (5,607   113,842   

Intercompany receivable

  44,855      0      293,685      (338,540   0   

Investment in subsidiaries

  1,017,461      0      0      (1,017,461   0   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,380,484    $ 49,327    $ 1,204,805    $ (1,361,608 $ 1,273,008   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

LIABILITIES AND EQUITY

Accounts payable

$ 47,277    $ 10,169    $ 82,375    $ 0    $ 139,821   

Accrued expenses

  39,061      2,857      41,524      0      83,442   

Current portion of long-term debt

  259      0      30      0      289   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

  86,597      13,026      123,929      0      223,552   

Long-term debt

  514,841      0      83      0      514,924   

Intercompany payable

  288,423      50,117      0      (338,540   0   

Losses in excess of investment in subsidiaries

  0      0      14,104      (14,104   0   

Other long-term obligations

  1,437      0      48,719      (5,607   44,549   

Total Central Garden & Pet shareholders’ equity

  489,186      (14,613   1,017,970      (1,003,357   489,186   

Noncontrolling interest

  0      797      0      0      797   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

  489,186      (13,816   1,017,970      (1,003,357   489,983   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,380,484    $ 49,327    $ 1,204,805    $ (1,361,608 $ 1,273,008   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED BALANCE SHEET

March 29, 2014 (As Revised)

 
     (in thousands)  
     Parent      Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
     Eliminations     Consolidated  

ASSETS

            

Cash and cash equivalents

   $ 8,001       $ 6,819      $ 1,928       $ 0      $ 16,748   

Short term investments

     14,220         0        0         0        14,220   

Accounts receivable, net

     81,577         17,792        223,814         0        323,183   

Inventories

     106,858         22,158        273,704         0        402,720   

Prepaid expenses and other

     25,151         740        29,991         0        55,882   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current assets

  235,807      47,509      529,437      0      812,753   

Land, buildings, improvements and equipment, net

  75,320      2,583      107,451      0      185,354   

Goodwill

  0      0      205,756      0      205,756   

Other long term assets

  20,331      3,614      72,061      (5,522   90,484   

Intercompany receivable

  41,540      0      219,454      (260,994   0   

Investment in subsidiaries

  955,388      0      0      (955,388   0   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,328,386    $ 53,706    $ 1,134,159    $ (1,221,904 $ 1,294,347   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

LIABILITIES AND EQUITY

Accounts payable

$ 49,181    $ 13,414    $ 79,557    $ 0    $ 142,152   

Accrued expenses

  32,409      2,775      45,702      0      80,886   

Current portion of long-term debt

  270      0      33      0      303   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

  81,860      16,189      125,292      0      223,341   

Long-term debt

  544,917      0      115      0      545,032   

Intercompany payable

  215,634      45,360      0      (260,994

Losses in excess of investment in subsidiaries

  0      0      8,047      (8,047   0   

Other long-term obligations

  1,674      0      44,318      (5,522   40,470   

Total Central Garden & Pet shareholders’ equity

  484,301      (9,046   956,387      (947,341   484,301   

Noncontrolling interest

  0      1,203      0      0      1,203   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

  484,301      (7,843   956,387      (947,341   485,504   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,328,386    $ 53,706    $ 1,134,159    $ (1,221,904 $ 1,294,347   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED BALANCE SHEET

September 27, 2014

 
     (in thousands)  
     Parent      Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
     Eliminations     Consolidated  

ASSETS

            

Cash and cash equivalents

   $ 63,471       $ 12,806      $ 2,399       $ 0      $ 78,676   

Restricted cash

     14,283         0        0         0        14,283   

Short term investments

     9,990         0        0         0        9,990   

Accounts receivable, net

     41,235         8,268        144,226         0        193,729   

Inventories

     79,199         15,210        231,977         0        326,386   

Prepaid expenses and other

     26,092         816        21,580         0        48,488   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current assets

  234,270      37,100      400,182      0      671,552   

Land, buildings, improvements and equipment, net

  63,059      3,649      100,141      0      166,849   

Goodwill

  0      0      208,233      0      208,233   

Other long term assets

  25,230      4,244      83,713      (11,094   102,093   

Intercompany receivable

  16,906      0      351,423      (368,329   0   

Investment in subsidiaries

  983,413      0      0      (983,413   0   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,322,878    $ 44,993    $ 1,143,692    $ (1,362,836 $ 1,148,727   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

LIABILITIES AND EQUITY

Accounts payable

$ 28,937    $ 3,542    $ 55,949    $ 0    $ 88,428   

Accrued expenses

  34,151      1,868      48,360      0      84,379   

Current portion of long term debt

  261      0      30      0      291   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

  63,349      5,410      104,339      0      173,098   

Long-term debt

  449,855      0      93      0      449,948   

Intercompany payable

  323,315      45,014      0      (368,329   0   

Losses in excess of investment in subsidiaries

  0      0      7,594      (7,594   0   

Other long-term obligations

  1,636      0      48,686      (11,094   39,228   

Total Central Garden & Pet shareholders’ equity

  484,723      (7,161   982,980      (975,819   484,723   

Noncontrolling interest

  0      1,730      0      0      1,730   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

  484,723      (5,431   982,980      (975,819   486,453   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

$ 1,322,878    $ 44,993    $ 1,143,692    $ (1,362,836 $ 1,148,727   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

Six Months Ended March 28, 2015

 
     (in thousands)  
     Parent     Non-Guarantor
Subsidiaries
   

Guarantor

Subsidiaries

    Eliminations     Consolidated  

Net cash used by operating activities

   $ (36,828   $ (5,623   $ (49,351   $ (6,719   $ (98,521
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

  (1,359   (154   (9,512   (0   (11,025

Payments to acquire companies, net of cash acquired

  (16,000   0      0      0      (16,000

Proceeds from short term investments

  9,997      0      0      0      9,997   

Investment in short term investments

  (17   (0   (0   (0   (17

Change in restricted cash

  1,700      (0   (0   (0   1,700   

Other investing activities

  (331   0      0      0      (331

Intercompany investing activities

  (27,949   (0   57,738      (29,789   (0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by investing activities

  (33,959   (154   48,226      (29,789   (15,676
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments of long-term debt

  (50,131   (0   (10   (0   (50,141

Borrowings under revolving line of credit

  186,000      0      0      0      186,000   

Repayments on revolving line of credit

  (71,000   0      0      0      (71,000

Proceeds from issuance of common stock

  1,220      0      0      0      1,220   

Repurchase of common stock

  (17,164   (0   (0   (0   (17,164

Distribution to noncontrolling interest

  0      (1,680   0      0      (1,680

Excess tax benefits from stock-based awards

  351      0      0      0      351   

Distribution to parent

  0      (6,719   0      6,719      0   

Intercompany financing activities

  (34,891   5,102      0      29,789      0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used) by financing activities

  14,385      (3,297   (10   36,508      47,586   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

  (910   577      211      0      (122
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

  (57,312   (8,497   (924   0      (66,733

Cash and cash equivalents at beginning of year

  63,471      12,806      2,399      0      78,676   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

$ 6,159    $ 4,309    $ 1,475    $ 0    $ 11,943   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

Six Months Ended March 29, 2014 (As Revised)

 
     (in thousands)  
     Parent     Non-Guarantor
Subsidiaries
   

Guarantor

Subsidiaries

    Eliminations     Consolidated  

Net cash (used) provided by operating activities

   $ (35,501   $ 604      $ (22,612   $ (2,534   $ (60,043
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

  (4,507   (473   (5,044   0      (10,024

Proceeds from short term investments

  3,600      0      0      0      3,600   

Intercompany investing activities

  (31,360   0      27,043      4,317      0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by investing activities

  (32,267   (473   21,999      4,317      (6,424
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments of long-term debt

  (104   0      (99   0      (203

Borrowings under revolving line of credit

  188,000      0      0      0      188,000   

Repayments on revolving line of credit

  (116,000   0      0      0      (116,000

Proceeds from issuance of common stock

  461      0      0      0      461   

Repurchase of common stock

  (924   0      0      0      (924

Distribution to noncontrolling interest

  0      (633   0      0      (633

Payment of deferred financing costs

  (3,087   0      0      0      (3,087

Excess tax benefits from stock-based awards

  321      0      0      0      321   

Distribution to parent

  0      (2,534   0      2,534      0   

Intercompany financing activities

  1,376      2,941      0      (4,317   0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by financing activities

  70,043      (226   (99   (1,783   67,935   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

  288      (89   (75   0      124   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

  2,563      (184   (787   0      1,592   

Cash and cash equivalents at beginning of year

  5,438      7,003      2,715      0      15,156   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

$ 8,001    $ 6,819    $ 1,928    $ 0    $ 16,748   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subsequent to the issuance of the Form 10-Q for the quarterly period ended June 28, 2014, management identified certain corrections that were needed in the presentation of the Consolidating Condensed Financial Statements. The Company revised its Consolidating Condensed Financial Statements to correct the presentation of intercompany activities and other classification items between the Parent, Guarantors and Non-Guarantor subsidiaries for intercompany activities. The Company has also included a new column in its Consolidating Condensed Financial Statements to present separate results for Non-Guarantor subsidiaries. There were no changes to any of the Company’s Consolidated Financial Statements. The Company assessed the materiality of these items on previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108, and concluded that the revisions were not material to the Consolidating Condensed Financial Statements. The impact of these revisions is shown in the following tables:

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Three Months Ended March 29, 2014

 
     As previously reported      Adjustments      As revised  

Parent

   $ 9,935       $ (3,142    $ 6,793   

Non-guarantor subsidiaries

     0         3,162         3,162   

Guarantor subsidiaries

     34,834         (20      34,814   

Eliminations

     0         0         0   
  

 

 

    

 

 

    

 

 

 

Income from operations

  44,769      0      44,769   

Parent

  20,895      0      20,895   

Non-guarantor subsidiaries

  0      1,317      1,317   

Guarantor subsidiaries

  23,516      (80   23,436   

Eliminations

  (23,516   (1,237   (24,753
  

 

 

    

 

 

    

 

 

 

Net income attributable to Central Garden & Pet Company

$ 20,895    $ 0    $ 20,895   

 

    

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

Six Months Ended March 29, 2014

 
     As previously reported      Adjustments      As revised  

Parent

   $ 1,152       $ (2,473    $ (1,321

Non-guarantor subsidiaries

     0         2,122         2,122   

Guarantor subsidiaries

     35,262         351         35,613   

Eliminations

     0         0         0   
  

 

 

    

 

 

    

 

 

 

Income (loss) from operations

  36,414      0      36,414   

Parent

  8,187      0      8,187   

Non-guarantor subsidiaries

  0      690      690   

Guarantor subsidiaries

  23,408      175      23,583   

Eliminations

  (23,408   (865   (24,273
  

 

 

    

 

 

    

 

 

 

Net income attributable to Central Garden & Pet Company

$ 8,187    $ 0    $ 8,187   

In the Consolidating Condensed Statement of Operations, the Company now presents the Non-Guarantor subsidiaries separate from the Parent. The Company also recorded the equity in earnings of Non-Guarantor subsidiaries, which are owned by Guarantor subsidiaries, within the Guarantor subsidiary column, and have appropriately eliminated intercompany earnings between Non-Guarantor and Guarantor subsidiaries.

 

    

CONSOLIDATING CONDENSED STATEMENT

OF COMPREHENSIVE INCOME

 
     As previously reported      Three Months Ended
March 29, 2014

Adjustments
     As revised  

Parent

   $ (2,027    $ 22,922       $ 20,895   

Non-guarantor subsidiaries

     0         1,911         1,911   

Guarantor subsidiaries

     23,516         (80      23,436   

Eliminations

     0         (24,753      (24,753
  

 

 

    

 

 

    

 

 

 

Net income (loss)

  21,489      0      21,489   

Parent

  (2,025   22,920      20,895   

Non-guarantor subsidiaries

  0      1,913      1,913   

Guarantor subsidiaries

  23,516      (80   23,436   

Eliminations

  0      (24,753   (24,753
  

 

 

    

 

 

    

 

 

 

Total comprehensive income (loss)

  21,491      0      21,491   

Parent

  (2,619   23,514      20,895   

Non-guarantor subsidiaries

  0      1,319      1,319   

Guarantor subsidiaries

  23,516      (80   23,436   

Eliminations

  0      (24,753   (24,753
  

 

 

    

 

 

    

 

 

 

Comprehensive income (loss) attributable to Central Garden & Pet Company

$ 20,897    $ 0    $ 20,897   

 

    

CONSOLIDATING CONDENSED STATEMENT

OF COMPREHENSIVE INCOME

 
     As previously reported
    Six Months Ended
March 29, 2014

Adjustments
    As revised
 

Parent

   $ (14,731   $ 22,918      $ 8,187   

Non-guarantor subsidiaries

     0        1,180        1,180   

Guarantor subsidiaries

     23,408        175        23,583   

Eliminations

     0        (24,273     (24,273
  

 

 

   

 

 

   

 

 

 

Net income (loss)

  8,677      0      8,677   

Parent

  (14,644   22,831      8,187   

Non-guarantor subsidiaries

  0      1,267      1,267   

Guarantor subsidiaries

  23,408      175      23,583   

Eliminations

  0      (24,273   (24,273
  

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

  8,764      0      8,764   

Parent

  (15,134   23,321      8,187   

Non-guarantor subsidiaries

  0      777      777   

Guarantor subsidiaries

  23,408      175      23,583   

Eliminations

  0      (24,273   (24,273
  

 

 

   

 

 

   

 

 

 

Comprehensive income (loss) attributable to Central Garden & Pet Company

$ 8,274    $ 0    $ 8,274   

In the Consolidating Condensed Statement of Comprehensive Income, the Company now presents the Non-Guarantor subsidiaries separate from the Parent. The Company also recorded an adjustment to correct the beginning net income of the Parent to reflect equity in the earnings from affiliates.

 

    

CONSOLIDATING CONDENSED BALANCE SHEET

March 29, 2014

 
     As previously reported     Adjustments     As revised  

Parent

   $ 288,510      $ (52,703   $ 235,807   

Non-Guarantor subsidiaries

     0        47,509        47,509   

Guarantor subsidiaries

     532,265        (2,828     529,437   

Eliminations

     (8,022     8,022        0   
  

 

 

   

 

 

   

 

 

 

Current assets

  812,753      0      812,753   

Parent

  1,165,145      163,241      1,328,386   

Non-Guarantor subsidiaries

  0      53,706      53,706   

Guarantor subsidiaries

  878,709      255,450      1,134,159   

Eliminations

  (749,507   (472,397   (1,221,904
  

 

 

   

 

 

   

 

 

 

Total assets

$ 1,294,347    $ 0    $ 1,294,347   

Parent

$ 99,258    $ (17,398 $ 81,860   

Non-Guarantor subsidiaries

  0      16,189      16,189   

Guarantor subsidiaries

  132,105      (6,813   125,292   

Eliminations

  (8,022   8,022      0   
  

 

 

   

 

 

   

 

 

 

Current liabilities

  223,341      0      223,341   

 

Parent

  485,504      (1,203   484,301   

Non-Guarantor subsidiaries

  0      (7,843   (7,843

Guarantor subsidiaries

  741,485      214,902      956,387   

Eliminations

  (741,485   (205,856   (947,341
  

 

 

    

 

 

    

 

 

 

Total equity

$ 485,504    $ 0    $ 485,504   

In the Consolidating Condensed Balance Sheet, the Company now presents the Non-Guarantor subsidiaries separate from the Parent. The Company also recorded adjustments to present intercompany receivables and payables between legal entities of the Guarantor, Non-Guarantor and Parent on a gross basis instead of net. These adjustments impacted the Parent’s total long term assets and liabilities and the Guarantor subsidiaries’ total long term assets and equity. The Company also corrected the presentation of certain deferred tax balances to present on a gross basis by legal entity.

 

    

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

Six Months Ended March 29, 2014

 
     As previously reported      Adjustments      As revised  

Parent

   $ (16,606    $ (18,895    $ (35,501

Non-Guarantor subsidiaries

     0         604         604   

Guarantor subsidiaries

     (20,029      (2,583      (22,612

Eliminations

     (23,408      20,874         (2,534
  

 

 

    

 

 

    

 

 

 

Net cash provided by (used in) operating activities

  (60,043   0      (60,043

Parent

  (49,249   16,982      (32,267

Non-Guarantor subsidiaries

  0      (473   (473

Guarantor subsidiaries

  19,417      2,582      21,999   

Eliminations

  23,408      (19,091   4,317   
  

 

 

    

 

 

    

 

 

 

Net cash provided by (used in) investing activities

  (6,424   0      (6,424

Parent

  68,034      2,009      70,043   

Non-Guarantor subsidiaries

  0      (226   (226

Guarantor subsidiaries

  (99   0      (99

Eliminations

  0      (1,783   (1,783
  

 

 

    

 

 

    

 

 

 

Net cash provided by (used in) financing activities

$ 67,935    $ 0    $ 67,935   

In the Consolidating Condensed Statement of Cash Flows, the Company now presents the Non-Guarantor subsidiaries separate from the Parent. The Company also presents changes in receivable balances between affiliates as investing activities and changes in payable balances between affiliates as financing activities because these changes are a result of subsidiaries’ deposits to or borrowings from the Parent’s cash account under a cash pooling arrangement. The Company also corrected the presentation of the Parent’s cash flow from operating activities to reflect equity in earnings of affiliates as a non-cash operating activity. The Company previously presented changes of intercompany receivables and payables in investing activities.