Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v3.4.0.3
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
6 Months Ended
Mar. 26, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Condensed Statement of Operations
 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
 
 
Three Months Ended March 26, 2016
 
 
 
 
(in thousands)
 
 
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$
156,790

 
$
30,002

 
$
381,748

 
$
(27,291
)
 
$
541,249

Cost of goods sold and occupancy
 
121,969

 
23,099

 
252,419

 
(25,577
)
 
371,910

Gross profit
 
34,821

 
6,903

 
129,329

 
(1,714
)
 
169,339

Selling, general and administrative expenses
 
33,210

 
5,124

 
73,316

 
(1,714
)
 
109,936

Income from operations
 
1,611

 
1,779

 
56,013

 

 
59,403

Interest expense
 
(6,653
)
 
(68
)
 
(375
)
 

 
(7,096
)
Interest income
 
8

 
1

 

 

 
9

Other income (expense)
 
657

 
(197
)
 
(548
)
 

 
(88
)
Income (loss) before taxes and equity in earnings of affiliates
 
(4,377
)
 
1,515

 
55,090

 

 
52,228

Income tax expense (benefit)
 
(775
)
 
694

 
18,874

 

 
18,793

Equity in earnings of affiliates
 
36,299

 

 
585

 
(36,884
)
 

Net income including noncontrolling interest
 
32,697

 
821

 
36,801

 
(36,884
)
 
33,435

Net income attributable to noncontrolling interest
 

 
738

 

 

 
738

Net income attributable to Central Garden & Pet Company
 
$
32,697

 
$
83

 
$
36,801

 
$
(36,884
)
 
$
32,697

 
 
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

 

 
49,971

Interest expense
 
(11,815
)
 
(61
)
 

 

 
(11,876
)
Interest income
 
18

 

 

 

 
18

Other expense
 
(347
)
 

 
226

 

 
(121
)
Income (loss) before taxes and equity in earnings of affiliates
 
(6,641
)
 
2,489

 
42,144

 

 
37,992

Income tax expense (benefit)
 
(1,123
)
 
952

 
14,183

 

 
14,012

Equity in earnings of affiliates
 
28,755

 

 
796

 
(29,551
)
 

Net income including noncontrolling interest
 
23,237

 
1,537

 
28,757

 
(29,551
)
 
23,980

Net income attributable to noncontrolling interest
 

 
743

 

 

 
743

Net income attributable to Central Garden & Pet Company
 
$
23,237

 
$
794

 
$
28,757

 
$
(29,551
)
 
$
23,237


 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
 
 
Six Months Ended March 26, 2016
 
 
 
 
(in thousands)
 
 
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$
293,817

 
$
45,272

 
$
603,912

 
$
(41,940
)
 
$
901,061

Cost of goods sold and occupancy
 
232,228

 
36,045

 
402,908

 
(39,245
)
 
631,936

Gross profit
 
61,589

 
9,227

 
201,004

 
(2,695
)
 
269,125

Selling, general and administrative expenses
 
66,164

 
8,903

 
128,577

 
(2,695
)
 
200,949

Income (loss) from operations
 
(4,575
)
 
324

 
72,427

 

 
68,176

Interest expense
 
(29,161
)
 
(80
)
 

 

 
(29,241
)
Interest income
 
29

 
2

 

 

 
31

Other expense
 
(178
)
 
(263
)
 
(120
)
 

 
(561
)
Income (loss) before taxes and equity in earnings (loss) of affiliates
 
(33,885
)
 
(17
)
 
72,307

 

 
38,405

Income tax expense (benefit)
 
(11,920
)
 
197

 
25,316

 

 
13,593

Equity in earnings (loss) of affiliates
 
46,060

 

 
(177
)
 
(45,883
)
 

Net income (loss) including noncontrolling interest
 
24,095

 
(214
)
 
46,814

 
(45,883
)
 
24,812

Net loss attributable to noncontrolling interest
 

 
717

 

 

 
717

Net income (loss) attributable to Central Garden & Pet Company
 
$
24,095

 
$
(931
)
 
$
46,814

 
$
(45,883
)
 
$
24,095


 
 
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

 

 
51,109

Interest expense
 
(22,302
)
 
(76
)
 
(1
)
 

 
(22,379
)
Interest income
 
88

 
1

 

 

 
89

Other income (expense)
 
(677
)
 

 
188

 

 
(489
)
Income (loss) before taxes and equity in earnings of affiliates
 
(27,056
)
 
1,221

 
54,165

 

 
28,330

Income tax expense (benefit)
 
(9,580
)
 
508

 
19,115

 

 
10,043

Equity in earnings of affiliates
 
35,016

 

 
209

 
(35,225
)
 

Net income including noncontrolling interest
 
17,540

 
713

 
35,259

 
(35,225
)
 
18,287

Net income attributable to noncontrolling interest
 

 
747

 

 

 
747

Net income (loss) attributable to Central Garden & Pet Company
 
$
17,540

 
$
(34
)
 
$
35,259

 
$
(35,225
)
 
$
17,540

Consolidating Condensed Statements of Comprehensive Income (Loss)
 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
 
 
Three Months Ended March 26, 2016
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
 
$
32,697

 
$
821

 
$
36,801

 
$
(36,884
)
 
$
33,435

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
Unrealized loss on securities













Foreign currency translation
 
(459
)
 
(398
)
 
57

 
341

 
(459
)
Total comprehensive income
 
32,238

 
423

 
36,858

 
(36,543
)
 
32,976

Comprehensive income attributable to noncontrolling interests
 

 
738

 

 

 
738

Comprehensive income (loss) attributable to Central Garden & Pet Company
 
$
32,238

 
$
(315
)
 
$
36,858

 
$
(36,543
)
 
$
32,238

 
 
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
)







(20
)
Reclassification of realized loss on securities included in net income
 
20

 

 

 

 
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
 

 
743

 

 

 
743

Comprehensive income attributable to Central Garden & Pet Company
 
$
22,611

 
$
439

 
$
28,593

 
$
(29,032
)
 
$
22,611


 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
 
 
Six Months Ended March 26, 2016
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
 
$
24,095

 
$
(214
)
 
$
46,814

 
$
(45,883
)
 
$
24,812

Other comprehensive income (loss):
 

 

 

 

 

Foreign currency translation
 
(692
)
 
(540
)
 
7

 
533

 
(692
)
Total comprehensive income (loss)
 
23,403

 
(754
)
 
46,821

 
(45,350
)
 
24,120

Comprehensive income attributable to noncontrolling interests
 

 
717

 

 

 
717

Comprehensive income (loss) attributable to Central Garden & Pet Company
 
$
23,403

 
$
(1,471
)
 
$
46,821

 
$
(45,350
)
 
$
23,403


 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
 
 
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 loss:
 
 
 
 
 
 
 
 
 
 
Unrealized loss on securities
 
(10
)
 

 

 

 
(10
)
Reclassification of realized loss on securities included in net income

20








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
 

 
747

 

 

 
747

Comprehensive income (loss) attributable to Central Garden & Pet Company
 
$
16,372

 
$
(734
)
 
$
34,991

 
$
(34,257
)
 
$
16,372

Consolidating Condensed Balance Sheet
 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
March 26, 2016
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1,820

 
$
5,083

 
$
2,923

 
$

 
$
9,826

Restricted cash
 
11,946

 

 

 

 
11,946

Accounts receivable, net
 
100,346

 
15,446

 
224,734

 

 
340,526

Inventories
 
115,644

 
17,043

 
258,067

 

 
390,754

Prepaid expenses and other
 
23,003

 
797

 
26,958

 

 
50,758

Total current assets
 
252,759

 
38,369

 
512,682

 

 
803,810

Land, buildings, improvements and equipment, net
 
47,310

 
3,829

 
113,655

 

 
164,794

Goodwill
 

 

 
213,753

 

 
213,753

Other long-term assets
 
54,088

 
3,417

 
84,777

 
(1,540
)
 
140,742

Intercompany receivable
 
41,922

 

 
367,931

 
(409,853
)
 

Investment in subsidiaries
 
1,098,281

 

 

 
(1,098,281
)
 

Total
 
$
1,494,360

 
$
45,615

 
$
1,292,798

 
$
(1,509,674
)
 
$
1,323,099

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
48,693

 
$
10,546

 
$
73,972

 
$

 
$
133,211

Accrued expenses
 
52,837

 
2,029

 
42,816

 

 
97,682

Current portion of long-term debt
 
219

 

 
375

 

 
594

Total current liabilities
 
101,749

 
12,575

 
117,163

 

 
231,487

Long-term debt
 
496,001

 

 
395

 

 
496,396

Intercompany payable
 
359,472

 
50,381

 

 
(409,853
)
 

Losses in excess of investment in subsidiaries
 

 

 
16,928

 
(16,928
)
 

Other long-term obligations
 
5,416

 

 
58,398

 
(1,540
)
 
62,274

Total Central Garden & Pet shareholders’ equity (deficit)
 
531,722

 
(18,561
)
 
1,099,914

 
(1,081,353
)
 
531,722

Noncontrolling interest
 

 
1,220

 

 

 
1,220

Total equity (deficit)
 
531,722

 
(17,341
)
 
1,099,914

 
(1,081,353
)
 
532,942

Total
 
$
1,494,360

 
$
45,615

 
$
1,292,798

 
$
(1,509,674
)
 
$
1,323,099

 
 
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

 
$

 
$
11,943

Restricted cash
 
12,583

 

 

 

 
12,583

Short term investments
 

 

 

 

 

Accounts receivable, net
 
86,569

 
17,099

 
218,097

 

 
321,765

Inventories
 
95,564

 
19,429

 
267,335

 

 
382,328

Prepaid expenses and other
 
26,013

 
901

 
31,337

 

 
58,251

Total current assets
 
226,888

 
41,738

 
518,244

 

 
786,870

Land, buildings, improvements and equipment, net
 
57,093

 
3,590

 
102,524

 

 
163,207

Goodwill
 

 

 
209,089

 

 
209,089

Other long-term assets
 
30,376

 
3,999

 
81,263

 
(5,607
)
 
110,031

Intercompany receivable
 
44,855

 

 
293,685

 
(338,540
)
 

Investment in subsidiaries
 
1,017,461

 

 

 
(1,017,461
)
 

Total
 
$
1,376,673

 
$
49,327

 
$
1,204,805

 
$
(1,361,608
)
 
$
1,269,197

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
47,277

 
$
10,169

 
$
82,375

 
$

 
$
139,821

Accrued expenses
 
39,061

 
2,857

 
41,524

 

 
83,442

Current portion of long-term debt
 
259

 

 
30

 

 
289

Total current liabilities
 
86,597

 
13,026

 
123,929

 

 
223,552

Long-term debt
 
511,030

 

 
83

 

 
511,113

Intercompany payable
 
288,423

 
50,117

 

 
(338,540
)
 

Losses in excess of investment in subsidiaries
 

 

 
14,104

 
(14,104
)
 

Other long-term obligations
 
1,437

 

 
48,719

 
(5,607
)
 
44,549

Total Central Garden & Pet shareholders’ equity (deficit)
 
489,186

 
(14,613
)
 
1,017,970

 
(1,003,357
)
 
489,186

Noncontrolling interest
 

 
797

 

 

 
797

Total equity (deficit)
 
489,186

 
(13,816
)
 
1,017,970

 
(1,003,357
)
 
489,983

Total
 
$
1,376,673

 
$
49,327

 
$
1,204,805

 
$
(1,361,608
)
 
$
1,269,197

 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
September 26, 2015
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
36,280

 
$
10,022

 
$
1,282

 
$

 
$
47,584

Restricted cash
 
13,157

 

 

 

 
13,157

Accounts receivable, net
 
46,326

 
6,775

 
154,301

 

 
207,402

Inventories
 
86,109

 
11,690

 
238,147

 

 
335,946

Prepaid expenses and other assets
 
22,926

 
848

 
25,957

 

 
49,731

Total current assets
 
204,798

 
29,335

 
419,687

 

 
653,820

Land, buildings, improvements and equipment, net
 
51,409

 
3,663

 
107,737

 

 
162,809

Goodwill
 

 

 
209,089

 

 
209,089

Other long-term assets
 
25,881

 
3,662

 
82,436

 
(6,100
)
 
105,879

Intercompany receivable
 
32,695

 

 
415,001

 
(447,696
)
 

Investment in subsidiaries
 
1,052,644

 

 

 
(1,052,644
)
 

Total
 
$
1,367,427

 
$
36,660

 
$
1,233,950

 
$
(1,506,440
)
 
$
1,131,597

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
20,506

 
$
2,543

 
$
65,840

 
$

 
$
88,889

Accrued expenses and other liabilities
 
38,723

 
1,789

 
47,212

 

 
87,724

Current portion of long term debt
 
261

 

 
30

 

 
291

Total current liabilities
 
59,490

 
4,332

 
113,082

 

 
176,904

Long-term debt
 
396,626

 

 
65

 

 
396,691

Intercompany payable
 
404,255

 
43,441

 

 
(447,696
)
 

Losses in excess of investment in subsidiaries
 

 

 
11,867

 
(11,867
)
 

Other long-term obligations
 
1,770

 

 
55,952

 
(6,100
)
 
51,622

Total Central Garden & Pet shareholders’ equity (deficit)
 
505,286

 
(12,207
)
 
1,052,984

 
(1,040,777
)
 
505,286

Noncontrolling interest
 

 
1,094

 

 

 
1,094

Total equity (deficit)
 
505,286

 
(11,113
)
 
1,052,984

 
(1,040,777
)
 
506,380

Total
 
$
1,367,427

 
$
36,660

 
$
1,233,950

 
$
(1,506,440
)
 
$
1,131,597

Consolidating Condensed Statement of Cash Flows
 
 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
 
Six Months Ended March 26, 2016
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash used by operating activities
 
$
(12,121
)
 
$
(6,240
)
 
$
(27,598
)
 
$
(4,884
)
 
$
(50,843
)
Additions to property, plant and equipment
 
(2,394
)
 
(412
)
 
(9,989
)
 

 
(12,795
)
Payments to acquire companies, net of cash acquired
 
(60,916
)
 

 
(7,985
)
 

 
(68,901
)
Change in restricted cash and cash equivalents
 
1,211

 

 

 

 
1,211

Other investing activities
 
(500
)
 

 

 

 
(500
)
Intercompany investing activities
 
(9,227
)
 

 
47,070

 
(37,843
)
 

Net cash (used) provided by investing activities
 
(71,826
)
 
(412
)
 
29,096

 
(37,843
)
 
(80,985
)
Repayments on revolving line of credit
 
(178,000
)
 

 

 

 
(178,000
)
Borrowings on revolving line of credit
 
280,000

 

 

 

 
280,000

Repayments of long-term debt
 
(400,130
)
 

 
(15
)
 

 
(400,145
)
Issuance of long-term debt
 
400,000

 

 

 

 
400,000

Excess tax benefits from stock-based awards
 
1,181

 

 

 

 
1,181

Repurchase of common stock
 
(1,722
)
 

 

 

 
(1,722
)
Distribution to parent
 

 
(4,884
)
 

 
4,884

 

Distribution to noncontrolling interest
 

 
(592
)
 

 

 
(592
)
Payment of financing costs
 
(6,362
)
 

 

 

 
(6,362
)
Intercompany financing activities
 
(44,782
)
 
6,939

 

 
37,843

 

Net cash provided (used) by financing activities
 
50,185

 
1,463

 
(15
)
 
42,727

 
94,360

Effect of exchange rates on cash
 
(698
)
 
250

 
158

 

 
(290
)
Net (decrease) increase in cash and cash equivalents
 
(34,460
)
 
(4,939
)
 
1,641

 

 
(37,758
)
Cash and cash equivalents at beginning of period
 
36,280

 
10,022

 
1,282

 

 
47,584

Cash and cash equivalents at end of period
 
$
1,820

 
$
5,083

 
$
2,923

 
$

 
$
9,826

 
 
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
)
 

 
(11,025
)
Payments to acquire companies, net of cash acquired
 
(16,000
)
 

 

 

 
(16,000
)
Proceeds from short-term investments
 
9,997

 

 

 

 
9,997

Change in restricted cash and cash equivalents
 
1,700

 

 

 

 
1,700

Investment in short-term investments
 
(17
)
 

 

 

 
(17
)
Other investing activities
 
(331
)
 

 

 

 
(331
)
Intercompany investing activities
 
(27,949
)
 

 
57,738

 
(29,789
)
 

Net cash (used) provided by investing activities
 
(33,959
)
 
(154
)
 
48,226

 
(29,789
)
 
(15,676
)
Repayments of long-term debt
 
(50,131
)
 

 
(10
)
 

 
(50,141
)
Borrowings under revolving line of credit
 
186,000

 

 

 

 
186,000

Repayments on revolving line of credit
 
(71,000
)
 

 

 

 
(71,000
)
Proceeds from issuance of common stock
 
1,220

 

 

 

 
1,220

Excess tax benefits from stock-based awards
 
351

 

 

 

 
351

Repurchase of common stock
 
(17,164
)
 

 

 

 
(17,164
)
Distribution to parent
 

 
(6,719
)
 

 
6,719

 

Distribution to noncontrolling interest
 

 
(1,680
)
 

 

 
(1,680
)
Intercompany financing activities
 
(34,891
)
 
5,102

 

 
29,789

 

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

 

 
(122
)
Net increase decrease in cash and cash equivalents
 
(57,312
)
 
(8,497
)
 
(924
)
 

 
(66,733
)
Cash and cash equivalents at beginning of year
 
63,471

 
12,806

 
2,399

 

 
78,676

Cash and cash equivalents at end of year
 
$
6,159

 
$
4,309

 
$
1,475

 
$

 
$
11,943