Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries

v3.2.0.727
Consolidating Condensed Financial Information of Guarantor Subsidiaries
9 Months Ended
Jun. 27, 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 June 27, 2015
(in thousands)
 
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 133,886      $ 31,291      $ 319,470      $ (25,201   $ 459,446   

Cost of goods sold and occupancy

     104,121        22,399        214,110        (23,221     317,409   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     29,765        8,892        105,360        (1,980     142,037   

Selling, general and administrative expenses

     31,223        5,461        68,340        (1,980     103,044   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (1,458     3,431        37,020        (0     38,993   

Interest expense

     (8,924     (52     (2     (0     (8,978

Interest income

     6        1        0        0        7   

Other income

     318        0        267        (0     585   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (10,058     3,380        37,285        (0     30,607   

Income tax expense (benefit)

     (3,982     1,265        14,201        (0     11,484   

Equity in earnings of affiliates

     24,876        0        1,780        (26,656     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

     18,800        2,115        24,864        (26,656     19,123   

Net income attributable to noncontrolling interest

     0        323        0        0        323   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 18,800      $ 1,792      $ 24,864      $ (26,656   $ 18,800   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Three Months Ended June 28, 2014 (As Revised)
(in thousands)
 
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 124,433      $ 38,251      $ 300,652      $ (25,349   $ 437,987   

Cost of goods sold and occupancy

     109,833        31,182        201,249        (23,408     318,856   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     14,600        7,069        99,403        (1,941     119,131   

Selling, general and administrative expenses

     27,659        4,582        70,405        (1,941     100,705   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (13,059     2,487        28,998        0        18,426   

Interest expense

     (10,390     (20     (19     0        (10,429

Interest income

     14        0        0        0        14   

Other income

     237        0        219        0        456   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (23,198     2,467        29,198        0        8,467   

Income tax expense (benefit)

     (8,737     862        11,008        0        3,133   

Equity in earnings of affiliates

     19,148        0        580        (19,728     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

     4,687        1,605        18,770        (19,728     5,334   

Net income attributable to noncontrolling interest

     0        647        0        0        647   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 4,687      $ 958      $ 18,770      $ (19,728   $ 4,687   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Nine Months Ended June 27, 2015
(in thousands)
 
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 380,862      $ 86,048      $ 865,589      $ (68,131   $ 1,264,368   

Cost of goods sold and occupancy

     296,568        66,522        584,604        (63,406     884,288   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     84,294        19,526        280,985        (4,725     380,080   

Selling, general and administrative expenses

     89,917        14,799        189,987        (4,725     289,978   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (5,623     4,727        90,998        (0     90,102   

Interest expense

     (31,226     (128     (3     (0     (31,357

Interest income

     94        2        0        0        96   

Other income (expense)

     (359     (0     455        (0     96   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (37,114     4,601        91,450        (0     58,937   

Income tax expense (benefit)

     (13,562     1,773        33,316        (0     21,527   

Equity in earnings of affiliates

     59,892        0        1,989        (61,881     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

     36,340        2,828        60,123        (61,881     37,410   

Net income attributable to noncontrolling interest

     0        1,070        0        0        1,070   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 36,340      $ 1,758      $ 60,123      $ (61,881   $ 36,340   
  

 

 

   

 

 

     

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Nine Months Ended June 28, 2014 (As Revised)
(in thousands)
 
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

   $ 356,715      $ 92,046      $ 844,334      $ (62,976   $ 1,230,119   

Cost of goods sold and occupancy

     287,782        72,843        581,614        (58,588     883,651   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     68,933        19,203        262,720        (4,388     346,468   

Selling, general and administrative expenses

     83,313        14,594        198,109        (4,388     291,628   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     (14,380     4,609        64,611        0        54,840   

Interest expense

     (32,956     (51     (44     0        (33,051

Interest income

     43        0        0        0        43   

Other income

     244        0        152        0        396   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     (47,049     4,558        64,719        0        22,228   

Income tax expense (benefit)

     (17,555     1,773        23,999        0        8,217   

Equity in earnings of affiliates

     42,368        0        1,633        (44,001     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

     12,874        2,785        42,353        (44,001     14,011   

Net income attributable to noncontrolling interest

     0        1,137        0        0        1,137   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 12,874      $ 1,648      $ 42,353      $ (44,001   $ 12,874   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)

Three Months Ended June 27, 2015
(in thousands)
 
     Parent      Non-Guarantor
Subsidiaries
     Guarantor
Subsidiaries
     Eliminations     Consolidated  

Net income

   $ 18,800       $ 2,115       $ 24,864       $ (26,656   $ 19,123   

Other comprehensive income:

             

Foreign currency translation

     615         456         24         (480     615   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income

     19,415         2,571         24,888         (27,136     19,738   

Comprehensive income attributable to noncontrolling interests

     0         323         0         0        323   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Comprehensive income attributable to Central Garden &Pet Company

   $ 19,415       $ 2,248       $ 24,888       $ (27,136   $ 19,415   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended June 28, 2014 (As Revised)
(in thousands)
 
     Parent      Non-
Guarantor
Subsidiaries
     Guarantor
Subsidiaries
     Eliminations     Consolidated  

Net income

   $ 4,687       $ 1,605       $ 18,770       $ (19,728   $ 5,334   

Other comprehensive income:

             

Foreign currency translation

     0         339         0         0        339   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income

     4,687         1,944         18,770         (19,728     5,673   

Comprehensive income attributable to noncontrolling interests

     0         647         0         0        647   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Comprehensive income attributable to Central Garden &Pet Company

   $ 4,687       $ 1,297       $ 18,770       $ (19,728   $ 5,026   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Nine Months Ended June 27, 2015
(in thousands)
 
     Parent     Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

   $ 36,340      $ 2,828      $ 60,123      $ (61,881   $ 37,410   

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

     (563     (244     (244     488        (563
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     35,787        2,584        59,879        (61,393     36,857   

Comprehensive income attributable to noncontrolling interests

     0        1,070        0        0        1,070   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden &Pet Company

   $ 35,787      $ 1,514      $ 59,879      $ (61,393   $ 35,787   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Nine Months Ended June 28, 2014 (As Revised)
(in thousands)
 
     Parent      Non-
Guarantor
Subsidiaries
     Guarantor
Subsidiaries
     Eliminations     Consolidated  

Net income

   $ 12,874       $ 2,785       $ 42,353       $ (44,001   $ 14,011   

Other comprehensive income:

             

Foreign currency translation

     0         426         0         0        426   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income

     12,874         3,211         42,353         (44,001     14,437   

Comprehensive income attributable to noncontrolling interests

     0         1,137         0         0        1,137   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Comprehensive income attributable to Central Garden &Pet Company

   $ 12,874       $ 2,074       $ 42,353       $ (44,001   $ 13,300   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED BALANCE SHEET
June 27, 2015
(in thousands)
 
     Parent      Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
     Eliminations     Consolidated  
ASSETS             

Cash and cash equivalents

   $ 30,640       $ 10,606      $ 2,595       $ 0      $ 43,841   

Restricted cash

     12,590         0        0         0        12,590   

Accounts receivable, net

     56,528         11,152        155,469         0        223,149   

Inventories

     86,211         14,409        239,613         0        340,233   

Prepaid expenses and other

     25,727         1,260        27,571         0        54,558   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current assets

     211,696         37,427        425,248         0        674,371   

Land, buildings, improvements and equipment, net

     54,176         3,540        105,253         0        162,969   

Goodwill

     0         0        209,089         0        209,089   

Other long term assets

     31,739         3,877        80,193         (3,017     112,792   

Intercompany receivable

     36,989         0        386,955         (423,944     0   

Investment in subsidiaries

     1,042,817         0        0         (1,042,817     0   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,377,417       $ 44,844      $ 1,206,738       $ (1,469,778   $ 1,159,221   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
LIABILITIES AND EQUITY             

Accounts payable

   $ 28,927       $ 6,501      $ 54,995       $ 0      $ 90,423   

Accrued expenses

     59,275         2,928        47,867         0        110,070   

Current portion of long-term debt

     260         0        30         0        290   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

     88,462         9,429        102,892         0        200,783   

Long-term debt

     399,806         0        73         0        399,879   

Intercompany payable

     377,284         46,660        0         (423,944     0   

Losses in excess of investment in subsidiaries

     0         0        12,324         (12,324     0   

Other long-term obligations

     1,573         0        48,591         (3,017     47,147   

Total Central Garden & Pet shareholders’ equity

     510,292         (12,365     1,042,858         (1,030,493     510,292   

Noncontrolling interest

     0         1,120        0         0        1,120   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

     510,292         (11,245     1,042,858         (1,030,493     511,412   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,377,417       $ 44,844      $ 1,206,738       $ (1,469,778   $ 1,159,221   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED BALANCE SHEET
June 28, 2014 (As Revised)
(in thousands)
 
     Parent      Non-
Guarantor
Subsidiaries
    Guarantor
Subsidiaries
     Eliminations     Consolidated  
ASSETS             

Cash and cash equivalents

   $ 16,182       $ 12,863      $ 2,801       $ 0      $ 31,846   

Short term investments

     14,220         0        0         0        14,220   

Accounts receivable, net

     50,219         12,220        151,681         0        214,120   

Inventories

     87,570         18,551        258,914         0        365,035   

Prepaid expenses and other

     25,489         1,102        27,098         0        53,689   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current assets

     193,680         44,736        440,494         0        678,910   

Land, buildings, improvements and equipment, net

     71,940         3,512        102,208         0        177,660   

Goodwill

     0         0        205,756         0        205,756   

Other long term assets

     17,147         3,492        85,679         (2,706     103,612   

Intercompany receivable

     38,865         0        287,318         (326,183     0   

Investment in subsidiaries

     974,815         0        0         (974,815     0   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,296,447       $ 51,740      $ 1,121,455       $ (1,303,704   $ 1,165,938   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
LIABILITIES AND EQUITY             

Accounts payable

   $ 31,968       $ 7,765      $ 50,226       $ 0      $ 89,959   

Accrued expenses

     42,836         2,688        43,997         0        89,521   

Current portion of long-term debt

     266         0        30         0        296   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total current liabilities

     75,070         10,453        94,253         0        179,776   

Long-term debt

     449,887         0        107         0        449,994   

Intercompany payable

     278,840         47,343        0         (326,183  

Losses in excess of investment in subsidiaries

     0         0        7,467         (7,467     0   

Other long-term obligations

     1,568         0        44,374         (2,706     43,236   

Total Central Garden & Pet shareholders’ equity

     491,082         (7,906     975,254         (967,348     491,082   

Noncontrolling interest

     0         1,850        0         0        1,850   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

     491,082         (6,056     975,254         (967,348     492,932   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 1,296,447       $ 51,740      $ 1,121,455       $ (1,303,704   $ 1,165,938   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

     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

     323,314         45,015        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

     484,724         (7,162     982,980         (975,819     484,723   

Noncontrolling interest

     0         1,730        0         0        1,730   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total equity

     484,724         (5,432     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
Nine Months Ended June 27, 2015
(in thousands)
 
     Parent    

Non-

Guarantor
Subsidiaries

   

Guarantor

Subsidiaries

    Eliminations     Consolidated  

Net cash provided by operating activities

   $ 6,844      $ 4,862      $ 51,610      $ (6,719   $ 56,597   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

     (2,044     (180     (15,936     (0     (18,160

Payments to acquire companies, net of cash acquired

     (16,000     0        0        0        (16,000

Change in restricted cash and cash equivalents

     1,693        (0     (0     (0     1,693   

Maturities of short term investments

     9,997        0        0        0        9,997   

Investment in short term investments

     (17     (0     (0     (0     (17

Other investing activities

     (489           (489

Intercompany investing activities

     (20,083     (0     (35,533     55,616        (0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

     (26,943     (180     (51,469     55,616        (22,976
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments on revolving line of credit

     (312,000     0        0        0        (312,000

Borrowings on revolving line of credit

     312,000        0        0        0        312,000   

Repayments of long-term debt

     (50,196     (0     (20     (0     (50,216

Proceeds from issuance of common stock

     2,148        0        0        0        2,148   

Excess tax benefits from stock-based awards

     685        0        0        0        685   

Repurchase of common stock

     (19,021     (0     (0     (0     (19,021

Distribution to parent

     0        (6,719     0        6,719        0   

Distribution to noncontrolling interest

     0        (1,680     0        0        (1,680

Intercompany financing activities

     53,971        1,645        0        (55,616     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by financing activities

     (12,413     (6,754     (20     (48,897     (68,084
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

     (319     (128     75        (0     (372
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (32,831     (2,200     196        0        (34,835

Cash and cash equivalents at beginning of period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 30,640      $ 10,606      $ 2,595      $ 0      $ 43,841   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
Nine Months Ended June 28, 2014 (As Revised)
(in thousands)
 
     Parent     Non-Guarantor
Subsidiaries
   

Guarantor

Subsidiaries

    Eliminations     Consolidated  

Net cash provided by operating activities

   $ 2,881      $ 5,764      $ 62,740      $ (2,534   $ 68,851   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

     (5,728     (1,482     (6,497     0        (13,707

Proceeds from sale of property and equipment, net of expenses

     0        0        5,171        0        5,171   

Payments to acquire companies, net of cash acquired

     0        0        (20,262     0        (20,262

Maturities of short term investments

     3,600        0        0        0        3,600   

Intercompany investing activities

     (28,685     0        (40,821     69,506        0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used by investing activities

     (30,813     (1,482     (62,409     69,506        (25,198
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments on revolving line of credit

     (301,000     0        0        0        (301,000

Borrowings on revolving line of credit

     278,000        0        0        0        278,000   

Repayments of long-term debt

     (172     0        (110     0        (282

Proceeds from issuance of common stock

     594        0        0        0        594   

Excess tax benefits from stock-based awards

     422        0        0        0        422   

Repurchase of common stock

     (1,190     0        0        0        (1,190

Payment of deferred financing costs

     (3,090     0        0        0        (3,090

Distribution to parent

     0        (2,534     0        2,534        0   

Distribution to noncontrolling interest

     0        (633     0        0        (633

Intercompany financing activities

     64,582        4,924        0        (69,506     0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used) by financing activities

     38,146        1,757        (110     (66,972     (27,179
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

     530        (179     (135     0        216   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     10,744        5,860        86        0        16,690   

Cash and cash equivalents at beginning of period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 16,182      $ 12,863      $ 2,801      $ 0      $ 31,846   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 June 28, 2014
(in thousands)
 
     As previously reported     Adjustments     As revised  

Parent

   $ (10,448   $ (2,611   $ (13,059

Non-guarantor subsidiaries

     0        2,487        2,487   

Guarantor subsidiaries

     28,874        124        28,998   

Eliminations

     0        0        0   
  

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     18,426        0        18,426   

Parent

     4,687        0        4,687   

Non-guarantor subsidiaries

     0        958        958   

Guarantor subsidiaries

     19,869        (1,099     18,770   

Eliminations

     (19,869     141        (19,728
  

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 4,687      $ 0      $ 4,687   

 

     CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Nine Months Ended June 28, 2014
(in thousands)
 
     As previously reported     Adjustments     As revised  

Parent

   $ (9,296   $ (5,084   $ (14,380

Non-guarantor subsidiaries

     0        4,609        4,609   

Guarantor subsidiaries

     64,136        475        64,611   

Eliminations

     0        0        0   
  

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     54,840        0        54,840   

Parent

     12,874        0        12,874   

Non-guarantor subsidiaries

     0        1,648        1,648   

Guarantor subsidiaries

     43,277        (924     42,353   

Eliminations

     (43,277     (724     (44,001
  

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

   $ 12,874      $ 0      $ 12,874   

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
Three Months Ended June 28, 2014
(in thousands)
 
     As previously reported     Adjustments     As revised  

Parent

   $ (14,535   $ 19,222      $ 4,687   

Non-guarantor subsidiaries

     0        1,605        1,605   

Guarantor subsidiaries

     19,869        (1,099     18,770   

Eliminations

     0        (19,728     (19,728
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     5,334        0        5,334   

Parent

     (14,196     18,883        4,687   

Non-guarantor subsidiaries

     0        1,944        1,944   

Guarantor subsidiaries

     19,869        (1,099     18,770   

Eliminations

     0        (19,728     (19,728
  

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

     5,673        0        5,673   

Parent

     (14,843     19,530        4,687   

Non-guarantor subsidiaries

     0        1,297        1,297   

Guarantor subsidiaries

     19,869        (1,099     18,770   

Eliminations

     0        (19,728     (19,728
  

 

 

   

 

 

   

 

 

 

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

   $ 5,026      $ 0      $ 5,026   

 

     CONSOLIDATING CONDENSED STATEMENT
OF COMPREHENSIVE INCOME
Nine Months Ended June 28, 2014
(in thousands)
 
     As previously reported     Adjustments     As revised  

Parent

   $ (29,266   $ 42,140      $ 12,874   

Non-guarantor subsidiaries

     0        2,785        2,785   

Guarantor subsidiaries

     43,277        (924     42,353   

Eliminations

     0        (44,001     (44,001
  

 

 

   

 

 

   

 

 

 

Net income (loss)

     14,011        0        14,011   

Parent

     (28,840     41,714        12,874   

Non-guarantor subsidiaries

     0        3,211        3,211   

Guarantor subsidiaries

     43,277        (924     42,353   

Eliminations

     0        (44,001     (44,001
  

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

     14,437        0        14,437   

Parent

     (29,977     42,851        12,874   

Non-guarantor subsidiaries

     0        2,074        2,074   

Guarantor subsidiaries

     43,277        (924     42,353   

Eliminations

     0        (44,001     (44,001
  

 

 

   

 

 

   

 

 

 

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

   $ 13,300      $ 0      $ 13,300   

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
June 28, 2014
(in thousands)
 
     As previously reported     Adjustments     As revised  

Parent

   $ 240,108      $ (46,428   $ 193,680   

Non-Guarantor subsidiaries

     0        44,736        44,736   

Guarantor subsidiaries

     441,922        (1,428     440,494   

Eliminations

     (3,120     3,120        0   
  

 

 

   

 

 

   

 

 

 

Current assets

     678,910        0        678,910   

Parent

     1,066,208        230,239        1,296,447   

Non-Guarantor subsidiaries

     0        51,740        51,740   

Guarantor subsidiaries

     796,926        324,529        1,121,455   

Eliminations

     (697,196     (606,508     (1,303,704
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 1,165,938      $ 0      $ 1,165,938   

Parent

   $ 85,213      $ (10,143   $ 75,070   

Non-Guarantor subsidiaries

     0        10,453        10,453   

Guarantor subsidiaries

     97,683        (3,430     94,253   

Eliminations

     (3,120     3,120        0   
  

 

 

   

 

 

   

 

 

 

Current liabilities

     179,776        0        179,776   

Parent

     492,932        (1,850     491,082   

Non-Guarantor subsidiaries

     0        (6,056     (6,056

Guarantor subsidiaries

     694,076        281,178        975,254   

Eliminations

     (694,076     (273,272     (967,348
  

 

 

   

 

 

   

 

 

 

Total equity

   $ 492,932      $ 0      $ 492,932   

 

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
Nine Months Ended June 28, 2014
 
     As previously reported     Adjustments     As revised  

Parent

   $ 47,393      $ (44,512   $ 2,881   

Non-Guarantor subsidiaries

     0        5,764        5,764   

Guarantor subsidiaries

     64,735        (1,995     62,740   

Eliminations

     (43,277     40,743        (2,534
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     68,851        0        68,851   

Parent

     (4,071     (26,742     (30,813

Non-Guarantor subsidiaries

     0        (1,482     (1,482

Guarantor subsidiaries

     (64,404     1,995        (62,409

Eliminations

     43,277        26,229        69,506   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (25,198     0        (25,198

Parent

     (27,069     65,215        38,146   

Non-Guarantor subsidiaries

     0        1,757        1,757   

Guarantor subsidiaries

     (110     0        (110

Eliminations

     0        (66,972     (66,972
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

   $ (27,179   $ 0      $ (27,179

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.