Central Garden & Pet Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

3 Months Ended

Dec. 26, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Condensed Statement of Operations

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	137,027		$	15,270		$	222,164		$	(14,649	)	$	359,812
Cost of goods sold and occupancy		110,259			12,946			150,489			(13,668	)		260,026

Gross profit		26,768			2,324			71,675			(981	)		99,786
Selling, general and administrative expenses		32,954			3,779			55,261			(981	)		91,013

Income (loss) from operations		(6,186	)		(1,455	)		16,414			0			8,773
Interest expense		(22,508	)		(12	)		375			0			(22,145	)
Interest income		21			1			0			0			22
Other income (expense)		(835	)		(66	)		428			0			(473	)

Income (loss) before taxes and equity in earnings (loss) of affiliates		(29,508	)		(1,532	)		17,217			0			(13,823	)
Income tax expense (benefit)		(11,145	)		(497	)		6,442			0			(5,200	)
Equity in earnings (loss) of affiliates		9,761			0			(762	)		(8,999	)		0

Net income (loss) including noncontrolling interest		(8,602	)		(1,035	)		10,013			(8,999	)		(8,623	)
Net loss attributable to noncontrolling interest		0			(21	)		0			0			(21	)

Net income (loss) attributable to Central Garden & Pet Company	$	(8,602	)	$	(1,014	)	$	10,013		$	(8,999	)	$	(8,602	)


	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended December 27, 2014 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	96,962		$	17,323		$	207,125		$	(14,090	)	$	307,320
Cost of goods sold and occupancy		78,779			14,578			139,091			(13,109	)		219,339

Gross profit		18,183			2,745			68,034			(981	)		87,981
Selling, general and administrative expenses		27,851			3,999			55,974			(981	)		86,843

Income (loss) from operations		(9,668	)		(1,254	)		12,060			0			1,138
Interest expense		(10,487	)		(15	)		(1	)		0			(10,503	)
Interest income		70			1			0			0			71
Other expense		(330	)		0			(38	)		0			(368	)

Income (loss) before taxes and equity in earnings (loss) of affiliates		(20,415	)		(1,268	)		12,021			0			(9,662	)
Income tax expense (benefit)		(8,457	)		(444	)		4,932			0			(3,969	)
Equity in earnings (loss) of affiliates		6,261			0			(587	)		(5,674	)		0

Net income (loss) including noncontrolling interest		(5,697	)		(824	)		6,502			(5,674	)		(5,693	)
Net income attributable to noncontrolling interest		0			4			0			0			4

Net income (loss) attributable to Central Garden & Pet Company	$	(5,697	)	$	(828	)	$	6,502		$	(5,674	)	$	(5,697	)

Consolidating Condensed Statements of Comprehensive Income (Loss)

CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(8,602	)	$	(1,035	)	$	10,013		$	(8,999	)	$	(8,623	)
Other comprehensive loss:
Foreign currency translation		(233	)		(142	)		(51	)		193			(233	)

Total comprehensive income (loss)		(8,835	)		(1,177	)		9,962			(8,806	)		(8,856	)
Comprehensive loss attributable to noncontrolling interests		0			(21	)		0			0			(21	)

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(8,835	)	$	(1,156	)	$	9,962		$	(8,806	)	$	(8,835	)


	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended December 27, 2014 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(5,697	)	$	(824	)	$	6,502		$	(5,674	)	$	(5,693	)
Other comprehensive loss:
Foreign currency translation		(552	)		(345	)		(104	)		449			(552	)
Unrealized loss on securities		(10	)		(0	)		(0	)		(0	)		(10	)

Total comprehensive income (loss)		(6,259	)		(1,169	)		6,398			(5,225	)		(6,255	)
Comprehensive income attributable to noncontrolling interests		0			4			0			0			4

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(6,259	)	$	(1,173	)	$	6,398		$	(5,225	)	$	(6,259	)

Consolidating Condensed Balance Sheet

	CONSOLIDATING CONDENSED BALANCE SHEET December 26, 2015 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	3,162	$	5,034		$	810	$	0		$	9,006
Restricted cash		11,939		0			0		0			11,939
Accounts receivable, net		74,855		7,398			113,104		0			195,357
Inventories		142,215		17,252			256,991		0			416,458
Prepaid expenses and other		35,478		957			23,438		0			59,873

Total current assets		267,649		30,641			394,343		0			692,633
Land, buildings, improvements and equipment, net		51,182		3,787			108,979		0			163,948
Goodwill		0		0			209,089		0			209,089
Other long-term assets		68,077		3,539			75,988		(2,065	)		145,539
Intercompany receivable		33,184		0			459,209		(492,393	)		0
Investment in subsidiaries		1,062,324		0			0		(1,062,324	)		0

Total	$	1,482,416	$	37,967		$	1,247,608	$	(1,556,782	)	$	1,211,209

LIABILITIES AND EQUITY
Accounts payable	$	54,043	$	9,084		$	65,964	$	0		$	129,091
Accrued expenses		42,452		1,520			45,075		0			89,047
Current portion of long-term debt		262		0			30		0			292

Total current liabilities		96,757		10,604			111,069		0			218,430
Long-term debt		435,835		0			58		0			435,893
Intercompany payable		447,265		45,128			0		(492,393	)		0
Losses in excess of investment in subsidiaries		0		0			17,513		(17,513	)		0
Other long-term obligations		4,159		0			55,911		(2,065	)		58,005
Total Central Garden & Pet shareholders’ equity		498,400		(18,246	)		1,063,057		(1,044,811	)		498,400
Noncontrolling interest		0		481			0		0			481

Total equity		498,400		(17,765	)		1,063,057		(1,044,811	)		498,881

Total	$	1,482,416	$	37,967		$	1,247,608	$	(1,556,782	)	$	1,211,209


	CONSOLIDATING CONDENSED BALANCE SHEET December 27, 2014 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	71,579	$	5,505		$	2,504	$	0		$	79,588
Restricted cash		19,690		0			0		0			19,690
Short term investments		9,992		0			0		0			9,992
Accounts receivable, net		38,580		7,573			96,724		0			142,877
Inventories		101,870		22,481			275,585		0			399,936
Prepaid expenses and other		33,095		962			30,223		0			64,280

Total current assets		274,806		36,521			405,036		0			716,363
Land, buildings, improvements and equipment, net		59,829		3,607			100,110		0			163,546
Goodwill		0		0			208,233		0			208,233
Other long-term assets		17,153		4,121			83,088		(8,197	)		96,165
Intercompany receivable		37,337		0			378,847		(416,184	)		0
Investment in subsidiaries		989,226		0			0		(989,226	)		0

Total	$	1,378,351	$	44,249		$	1,175,314	$	(1,413,607	)	$	1,184,307

LIABILITIES AND EQUITY
Accounts payable	$	39,847	$	10,077		$	78,561	$	0		$	128,485
Accrued expenses		47,888		1,751			43,569		0			93,208
Current portion of long-term debt		50,259		0			30					50,289

Total current liabilities		137,994		11,828			122,160		0			271,982
Long-term debt		395,170		0			87		0			395,257
Intercompany payable		368,765		47,419			0		(416,184	)		0
Losses in excess of investment in subsidiaries		0		0			14,900		(14,900	)		0
Other long-term obligations		1,620		0			48,789		(8,197	)		42,212
Central Garden & Pet shareholders’ equity		474,802		(15,052	)		989,378		(974,326	)		474,802
Noncontrolling interest		0		54			0		0			54

Total equity		474,802		(14,998	)		989,378		(974,326	)		474,856

Total	$	1,378,351	$	44,249		$	1,175,314	$	(1,413,607	)	$	1,184,307


	CONSOLIDATING CONDENSED BALANCE SHEET September 26, 2015 (in thousands)
	Parent		Non- Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	37,131	$	10,022		$	431	$	0		$	47,584
Restricted cash		13,157		0			0		0			13,157
Accounts receivable, net		51,376		6,775			149,251		0			207,402
Inventories		101,952		11,690			222,304		0			335,946
Prepaid expenses and other assets		23,807		848			25,076		0			49,731

Total current assets		227,423		29,335			397,062		0			653,820
Land, buildings, improvements and equipment, net		53,044		3,663			106,102		0			162,809
Goodwill		0		0			209,089		0			209,089
Other long-term assets		30,831		3,662			77,519		(6,133	)		105,879
Intercompany receivable		10,311		0			440,327		(450,638	)		0
Investment in subsidiaries		1,052,755		0			0		(1,052,755	)		0

Total	$	1,374,364	$	36,660		$	1,230,099	$	(1,509,526	)	$	1,131,597

LIABILITIES AND EQUITY
Accounts payable	$	23,544	$	2,543		$	62,802	$	0		$	88,889
Accrued expenses and other liabilities		39,680		1,789			46,255		0			87,724
Current portion of long term debt		261		0			30		0			291

Total current liabilities		63,485		4,332			109,087		0			176,904
Long-term debt		396,626		0			65		0			396,691
Intercompany payable		407,197		43,441			0		(450,638	)		0
Losses in excess of investment in subsidiaries		0		0			11,867		(11,867	)		0
Other long-term obligations		1,770		0			55,985		(6,133	)		51,622
Shareholders’ equity attributable to Central Garden & Pet		505,286		(12,207	)		1,053,095		(1,040,888	)		505,286
Noncontrolling interest		0		1,094			0		0			1,094

Total equity		505,286		(11,113	)		1,053,095		(1,040,888	)		506,380

Total	$	1,374,364	$	36,660		$	1,230,099	$	(1,509,526	)	$	1,131,597

Consolidating Condensed Statement of Cash Flows


	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Three Months Ended December 26, 2015 (in thousands)
	Parent			Non- Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided (used) by operating activities	$	(18,211	)	$	(1,039	)	$	23,653		$	(4,884	)	$	(481	)

Additions to property, plant and equipment		(606	)		(226	)		(4,424	)		0			(5,256	)
Payments to acquire companies, net of cash acquired		(68,529	)		0			0			0			(68,529	)
Change in restricted cash and cash equivalents		1,218			(0	)		(0	)		(0	)		1,218
Other investing activities		(200	)											(200	)
Intercompany investing activities		(22,874	)		(0	)		(18,881	)		41,755			0

Net cash used by investing activities		(90,991	)		(226	)		(23,305	)		41,755			(72,767	)

Repayments on revolving line of credit		(37,000	)		0			0			0			(37,000	)
Borrowings on revolving line of credit		79,000			0			0			0			79,000
Repayments of long-term debt		(400,064	)		(0	)		(8	)		(0	)		(400,072	)
Issuance of long-term debt		400,000												400,000
Excess tax benefits from stock-based awards		900			0			0			0			900
Repurchase of common stock		(1,167	)		(0	)		(0	)		(0	)		(1,167	)
Distribution to parent		0			(4,884	)		0			4,884			0
Distribution to noncontrolling interest		0			(592	)		0			0			(592	)
Payment of financing costs		(6,324	)											(6,324	)
Intercompany financing activities		40,069			1,686			0			(41,755	)		0

Net cash (used) provided by financing activities		75,414			(3,790	)		(8	)		(36,871	)		34,745

Effect of exchange rates on cash		(181	)		67			39			(0	)		(75	)

Net increase (decrease) in cash and cash equivalents		(33,969	)		(4,988	)		379			0			(38,578	)
Cash and cash equivalents at beginning of period		37,131			10,022			431			0			47,584

Cash and cash equivalents at end of period	$	3,162		$	5,034		$	810		$	0		$	9,006


	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Three Months Ended December 27, 2014 (in thousands)
	Parent			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash (used) provided by operating activities	$	(6,874	)	$	(1,400	)	$	30,845		$	(6,719	)	$	15,852

Additions to property, plant and equipment		(589	)		(64	)		(3,416	)		0			(4,069	)
Change in restricted cash and cash equivalents		(5,407	)		0			0			0			(5,407	)
Investment in short term investments		(12	)		0			0			0			(12	)
Intercompany investing activities		(20,431	)		0			(27,423	)		47,854			0

Net cash (used) provided by investing activities		(26,439	)		(64	)		(30,839	)		47,854			(9,488	)

Repayments of long-term debt		(67	)		0			(5	)		0			(72	)
Proceeds from issuance of common stock		188			0			0			0			188
Excess tax benefits from stock-based awards		40			0			0			0			40
Repurchase of common stock		(3,742	)		0			0			0			(3,742	)
Distribution to parent		0			(6,719	)		0			6,719			0
Distribution to noncontrolling interest		0			(1,680	)		0			0			(1,680	)
Intercompany financing activities		45,450			2,404			0			(47,854	)		0

Net cash provided (used) by financing activities		41,869			(5,995	)		(5	)		(41,135	)		(5,266	)

Effect of exchange rates on cash		(448	)		158			104			0			(186	)

Net increase (decrease) in cash and cash equivalents		8,108			(7,301	)		105			0			912
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	$	71,579		$	5,505		$	2,504		$	0		$	79,588