Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v3.19.1
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
6 Months Ended
Mar. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
Consolidating Condensed Statement of Operations
 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
Three Months Ended March 30, 2019
 
 
(in thousands)
 

Parent

Non- Guarantor Subsidiaries

Guarantor Subsidiaries

Eliminations

Consolidated
Net sales

$
214,042


$
35,191


$
449,810


$
(25,342
)

$
673,701

Cost of goods sold and occupancy

163,133


30,343


297,864


(23,690
)

467,650

Gross profit

50,909


4,848


151,946


(1,652
)

206,051

Selling, general and administrative expenses

47,135


10,485


87,930


(1,652
)

143,898

Operating income (loss)

3,774


(5,637
)

64,016




62,153

Interest expense

(10,482
)

(141
)

(17
)



(10,640
)
Interest income

2,250


5






2,255

Other (expense) income

305


243


(48
)



500

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

(4,153
)

(5,530
)

63,951




54,268

Income tax expense (benefit)

(1,748
)

(55
)

13,349




11,546

Equity in earnings (losses) of affiliates

44,796




(101
)

(44,695
)


Net income (loss) including noncontrolling interest

42,391


(5,475
)

50,501


(44,695
)

42,722

Net loss attributable to noncontrolling interest



331






331

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

$
42,391


$
(5,806
)

$
50,501


$
(44,695
)

$
42,391

 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
Three Months Ended March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non- Guarantor Subsidiaries
 
Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales

$
195,464


$
32,433


$
412,348


$
(27,151
)

$
613,094

Cost of goods sold and occupancy

151,868


24,192


268,072


(25,495
)

418,637

Gross profit

43,596


8,241


144,276


(1,656
)

194,457

Selling, general and administrative expenses

41,677


6,532


82,118


(1,656
)

128,671

Operating income (loss)

1,919


1,709


62,158




65,786

Interest expense

(10,510
)

(62
)

(3
)



(10,575
)
Interest income

692


1






693

Other income

1,108


200


197




1,505

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

(6,791
)

1,848


62,352




57,409

Income tax expense (benefit)

(13,753
)

(1,549
)

26,945




11,643

Equity in earnings of affiliates

38,272




3,841


(42,113
)


Net income including noncontrolling interest

45,234


3,397


39,248


(42,113
)

45,766

Net income attributable to noncontrolling interest



532






532

Net income attributable to Central Garden & Pet Company

$
45,234


$
2,865


$
39,248


$
(42,113
)

$
45,234



 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
Six Months Ended March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales

$
387,448


$
58,820


$
729,644


$
(40,221
)

$
1,135,691

Cost of goods sold and occupancy

299,146


52,346


485,547


(37,581
)

799,458

Gross profit

88,302


6,474


244,097


(2,640
)

336,233

Selling, general and administrative expenses

90,800


17,836


157,903


(2,640
)

263,899

Operating income (loss)

(2,498
)

(11,362
)

86,194




72,334

Interest expense

(20,979
)

(255
)

(20
)



(21,254
)
Interest income

4,783


9






4,792

Other income (expense)

342


27


(61
)



308

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

(18,352
)

(11,581
)

86,113




56,180

Income tax expense (benefit)

(3,836
)

(311
)

15,966




11,819

Equity in earnings (losses) of affiliates

58,710




(1,213
)

(57,497
)


Net income (loss) including noncontrolling interest

44,194


(11,270
)

68,934


(57,497
)

44,361

Net income attributable to noncontrolling interest



167






167

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

$
44,194


$
(11,437
)

$
68,934


$
(57,497
)

$
44,194


 
 
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
 
 
Six Months Ended March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales

$
354,525


$
46,176


$
698,772


$
(44,368
)

$
1,055,105

Cost of goods sold and occupancy

277,347


36,008


457,123


(41,667
)

728,811

Gross profit

77,178


10,168


241,649


(2,701
)

326,294

Selling, general and administrative expenses

78,316


10,437


151,935


(2,701
)

237,987

Operating income (loss)

(1,138
)

(269
)

89,714




88,307

Interest expense

(17,895
)

(78
)

(7
)



(17,980
)
Interest income

878


2






880

Other income (expense)

(1,810
)

254


(28
)



(1,584
)
Income (loss) before taxes and equity in earnings of affiliates

(19,965
)

(91
)

89,679




69,623

Income tax expense (benefit)

672


(267
)

(2,998
)



(2,593
)
Equity in earnings of affiliates

92,118




941


(93,059
)


Net income including noncontrolling interest

71,481


176


93,618


(93,059
)

72,216

Net income attributable to noncontrolling interest



735






735

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

$
71,481


$
(559
)

$
93,618


$
(93,059
)

$
71,481

Consolidating Condensed Statements of Comprehensive Income (Loss)
 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
Three Months Ended March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
 
$
42,391

 
$
(5,475
)
 
$
50,501

 
$
(44,695
)
 
$
42,722

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
 
212

 
127

 
35

 
(162
)
 
212

Total comprehensive income (loss)
 
42,603

 
(5,348
)
 
50,536

 
(44,857
)
 
42,934

Comprehensive loss attributable to noncontrolling interests
 

 
331

 

 

 
331

Comprehensive income (loss) attributable to Central Garden & Pet Company
 
$
42,603

 
$
(5,679
)
 
$
50,536

 
$
(44,857
)
 
$
42,603

 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
Three Months Ended March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
 
$
45,234

 
$
3,397

 
$
39,248

 
$
(42,113
)
 
$
45,766

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
Foreign currency translation

234


206


(48
)

(158
)

234

Total comprehensive income (loss)
 
45,468

 
3,603

 
39,200

 
(42,271
)
 
46,000

Comprehensive income attributable to noncontrolling interests
 

 
532

 

 

 
532

Comprehensive income (loss) attributable to Central Garden & Pet Company
 
$
45,468

 
$
3,071

 
$
39,200

 
$
(42,271
)
 
$
45,468


 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
Six Months Ended March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)

$
44,194


$
(11,270
)

$
68,934


$
(57,497
)

$
44,361

Other comprehensive loss:











Foreign currency translation

(62
)

(2
)

(60
)

62


(62
)
Total comprehensive income (loss)

44,132


(11,272
)

68,874


(57,435
)

44,299

Comprehensive income attributable to noncontrolling interests



167






167

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

$
44,132


$
(11,439
)

$
68,874


$
(57,435
)

$
44,132


 
 
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 
Six Months Ended March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income

$
71,481


$
176


$
93,618


$
(93,059
)

$
72,216

Other comprehensive loss:











Foreign currency translation

278


249


(64
)

(185
)

278

Total comprehensive income

71,759


425


93,554


(93,244
)

72,494

Comprehensive income attributable to noncontrolling interests



735






735

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

$
71,759


$
(310
)

$
93,554


$
(93,244
)

$
71,759


 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
322,149

 
$
6,354

 
$
1,221

 
$

 
$
329,724

Restricted cash
 
10,888

 

 
5,227

 

 
16,115

Accounts receivable, net
 
134,251

 
22,844

 
299,034

 

 
456,129

Inventories
 
138,778

 
46,035

 
332,345

 

 
517,158

Prepaid expenses and other
 
8,355

 
1,386

 
23,420

 

 
33,161

Total current assets
 
614,421

 
76,619

 
661,247

 

 
1,352,287

Land, buildings, improvements and equipment, net
 
29,701

 
36,180

 
151,657

 

 
217,538

Goodwill
 
20,578

 
7,414

 
253,185

 

 
281,177

Other long-term assets
 
47,512

 
6,273

 
147,035

 
(5,682
)
 
195,138

Intercompany receivable
 
59,152

 

 
680,937

 
(740,089
)
 

Investment in subsidiaries
 
1,688,163

 

 

 
(1,688,163
)
 

Total
 
$
2,459,527

 
$
126,486

 
$
1,894,061

 
$
(2,433,934
)
 
$
2,046,140

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
41,488

 
$
21,833

 
$
94,275

 
$

 
$
157,596

Accrued expenses
 
55,181

 
6,200

 
75,032

 

 
136,413

Current portion of long-term debt
 
119

 

 
5,000

 

 
5,119

Total current liabilities
 
96,788

 
28,033

 
174,307

 

 
299,128

Long-term debt
 
692,459

 

 
187

 

 
692,646

Intercompany payable
 
662,927

 
77,163

 

 
(740,090
)
 

Losses in excess of investment in subsidiaries
 

 

 
26,248

 
(26,248
)
 

Other long-term obligations
 
8,604

 

 
52,142

 
(5,682
)
 
55,064

Total Central Garden & Pet shareholders’ equity
 
998,749

 
20,737

 
1,641,177

 
(1,661,914
)
 
998,749

Noncontrolling interest
 


 
553

 

 


 
553

Total equity
 
998,749

 
21,290

 
1,641,177

 
(1,661,914
)
 
999,302

Total
 
$
2,459,527

 
$
126,486

 
$
1,894,061

 
$
(2,433,934
)
 
$
2,046,140


Consolidating Condensed Balance Sheet
 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
322,149

 
$
6,354

 
$
1,221

 
$

 
$
329,724

Restricted cash
 
10,888

 

 
5,227

 

 
16,115

Accounts receivable, net
 
134,251

 
22,844

 
299,034

 

 
456,129

Inventories
 
138,778

 
46,035

 
332,345

 

 
517,158

Prepaid expenses and other
 
8,355

 
1,386

 
23,420

 

 
33,161

Total current assets
 
614,421

 
76,619

 
661,247

 

 
1,352,287

Land, buildings, improvements and equipment, net
 
29,701

 
36,180

 
151,657

 

 
217,538

Goodwill
 
20,578

 
7,414

 
253,185

 

 
281,177

Other long-term assets
 
47,512

 
6,273

 
147,035

 
(5,682
)
 
195,138

Intercompany receivable
 
59,152

 

 
680,937

 
(740,089
)
 

Investment in subsidiaries
 
1,688,163

 

 

 
(1,688,163
)
 

Total
 
$
2,459,527

 
$
126,486

 
$
1,894,061

 
$
(2,433,934
)
 
$
2,046,140

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
41,488

 
$
21,833

 
$
94,275

 
$

 
$
157,596

Accrued expenses
 
55,181

 
6,200

 
75,032

 

 
136,413

Current portion of long-term debt
 
119

 

 
5,000

 

 
5,119

Total current liabilities
 
96,788

 
28,033

 
174,307

 

 
299,128

Long-term debt
 
692,459

 

 
187

 

 
692,646

Intercompany payable
 
662,927

 
77,163

 

 
(740,090
)
 

Losses in excess of investment in subsidiaries
 

 

 
26,248

 
(26,248
)
 

Other long-term obligations
 
8,604

 

 
52,142

 
(5,682
)
 
55,064

Total Central Garden & Pet shareholders’ equity
 
998,749

 
20,737

 
1,641,177

 
(1,661,914
)
 
998,749

Noncontrolling interest
 


 
553

 

 


 
553

Total equity
 
998,749

 
21,290

 
1,641,177

 
(1,661,914
)
 
999,302

Total
 
$
2,459,527

 
$
126,486

 
$
1,894,061

 
$
(2,433,934
)
 
$
2,046,140


 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
123,840

 
$
7,170

 
$
1,255

 
$

 
$
132,265

Restricted cash
 
13,948

 

 

 

 
13,948

Accounts receivable, net
 
132,218

 
19,938

 
242,995

 

 
395,151

Inventories
 
137,108

 
43,438

 
284,976

 

 
465,522

Prepaid expenses and other
 
6,157

 
2,086

 
18,434

 

 
26,677

Total current assets
 
413,271

 
72,632

 
547,660

 

 
1,033,563

Land, buildings, improvements and equipment, net
 
35,314

 
34,632

 
140,617

 

 
210,563

Goodwill
 
15,058

 

 
253,185

 

 
268,243

Other long-term assets
 
56,612

 
14,642

 
132,916

 
(12,576
)
 
191,594

Intercompany receivable
 
54,117

 

 
610,760

 
(664,877
)
 

Investment in subsidiaries
 
1,539,309

 

 

 
(1,539,309
)
 

Total
 
$
2,113,681

 
$
121,906

 
$
1,685,138

 
$
(2,216,762
)
 
$
1,703,963

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
48,659

 
$
19,752

 
$
82,564

 
$

 
$
150,975

Accrued expenses
 
63,951

 
5,303

 
47,160

 

 
116,414

Current portion of long-term debt
 

 

 
20

 

 
20

Total current liabilities
 
112,610

 
25,055

 
129,744

 

 
267,409

Long-term debt
 
690,947

 

 
137

 


 
691,084

Intercompany payable
 
597,619

 
67,258

 

 
(664,877
)
 

Losses in excess of investment in subsidiaries
 

 

 
25,228

 
(25,228
)
 

Other long-term obligations
 
7,997

 

 
44,947

 
(12,576
)
 
40,368

Total Central Garden & Pet shareholders’ equity (deficit)
 
704,508

 
28,999

 
1,485,082

 
(1,514,081
)
 
704,508

Noncontrolling interest
 

 
594

 

 

 
594

Total equity
 
704,508

 
29,593

 
1,485,082

 
(1,514,081
)
 
705,102

Total
 
$
2,113,681

 
$
121,906

 
$
1,685,138

 
$
(2,216,762
)
 
$
1,703,963

 
 
CONSOLIDATING CONDENSED BALANCE SHEET
 
 
September 29, 2018
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
474,210

 
$
6,005

 
$
1,891

 
$

 
$
482,106

Restricted cash
 
10,899

 

 

 

 
10,899

Accounts receivable, net
 
94,657

 
9,647

 
171,604

 

 
275,908

Inventories
 
123,178

 
32,556

 
272,089

 

 
427,823

Prepaid expenses and other assets
 
6,304

 
1,455

 
12,803

 

 
20,562

Total current assets
 
709,248

 
49,663

 
458,387

 

 
1,217,298

Land, buildings, improvements and equipment, net
 
33,484

 
33,840

 
150,323

 

 
217,647

Goodwill
 
20,578

 
7,414

 
253,185

 

 
281,177

Other long-term assets
 
62,199

 
7,469

 
133,145

 
(11,726
)
 
191,087

Intercompany receivable
 
40,365

 

 
769,886

 
(810,251
)
 

Investment in subsidiaries
 
1,618,378

 

 

 
(1,618,378
)
 

Total
 
$
2,484,252

 
$
98,386

 
$
1,764,926

 
$
(2,440,355
)
 
$
1,907,209

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
33,122

 
$
4,759

 
$
72,378

 
$

 
$
110,259

Accrued expenses and other liabilities
 
44,142

 
4,746

 
53,695

 

 
102,583

Current portion of long term debt
 
116

 

 
6

 

 
122

Total current liabilities
 
77,380

 
9,505

 
126,079

 

 
212,964

Long-term debt
 
691,869

 

 
162

 

 
692,031

Intercompany payable
 
753,933

 
56,318

 

 
(810,251
)
 

Losses in excess of investment in subsidiaries
 

 

 
25,036

 
(25,036
)
 

Other long-term obligations
 
8,621

 

 
52,485

 
(11,726
)
 
49,380

Total Central Garden & Pet shareholders’ equity (deficit)
 
952,449

 
32,178

 
1,561,164

 
(1,593,342
)
 
952,449

Noncontrolling interest
 

 
385

 

 

 
385

Total equity
 
952,449

 
32,563

 
1,561,164

 
(1,593,342
)
 
952,834

Total
 
$
2,484,252

 
$
98,386

 
$
1,764,926

 
$
(2,440,355
)
 
$
1,907,209

Consolidating Condensed Statement of Cash Flows
 
 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
 
Six Months Ended March 30, 2019
 
 
(in thousands)
 
 
Parent
 
Non-
Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash used by operating activities
 
$
(23,565
)
 
$
(17,128
)
 
$
(38,626
)
 
$

 
$
(79,319
)
Additions to property and equipment
 
(1,716
)
 
(3,350
)
 
(9,236
)
 

 
(14,302
)
Payments to acquire companies, net of cash acquired
 
(11,137
)
 

 

 

 
(11,137
)
Investments
 
(1,749
)
 

 

 

 
(1,749
)
Other investing activities
 
(368
)
 

 

 

 
(368
)
Intercompany investing activities
 
(18,788
)
 

 
88,949

 
(70,161
)
 

Net cash (used) provided by investing activities
 
(33,758
)
 
(3,350
)
 
79,713

 
(70,161
)
 
(27,556
)
Repayments of long-term debt
 
(3
)
 

 
(36,463
)
 

 
(36,466
)
Repurchase of common stock
 
(3,739
)
 

 

 

 
(3,739
)
Payment of contingent consideration liability
 

 

 
(66
)
 

 
(66
)
Intercompany financing activities
 
(91,005
)
 
20,844

 

 
70,161

 

Net cash provided (used) by financing activities
 
(94,747
)
 
20,844

 
(36,529
)
 
70,161

 
(40,271
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(2
)
 
(17
)
 
(1
)
 

 
(20
)
Net increase (decrease) in cash, cash equivalents and restricted cash
 
(152,072
)
 
349

 
4,557

 

 
(147,166
)
Cash, cash equivalents and restricted cash at beginning of period
 
485,109

 
6,005

 
1,891

 

 
493,005

Cash, cash equivalents and restricted cash at end of period
 
$
333,037

 
$
6,354

 
$
6,448

 
$

 
$
345,839

 
 
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
 
 
Six Months Ended March 31, 2018
 
 
(in thousands)
 
 
Parent
 
Non-Guarantor
Subsidiaries
 
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net cash used by operating activities
 
$
(36,868
)
 
$
(11,840
)
 
$
(38,863
)
 
$
(6,387
)
 
$
(93,958
)
Additions to property, plant and equipment
 
(4,923
)
 
(494
)
 
(12,149
)
 

 
(17,566
)
Payments to acquire companies, net of cash acquired
 
(63,372
)
 

 

 

 
(63,372
)
Investments

(6,555
)







(6,555
)
Other investing activities
 
(2,180
)
 

 

 

 
(2,180
)
Intercompany investing activities
 
(17,512
)
 

 
51,377

 
(33,865
)
 

Net cash (used) provided by investing activities
 
(94,542
)
 
(494
)
 
39,228

 
(33,865
)
 
(89,673
)
Repayments under revolving line of credit
 
(23,000
)
 

 

 

 
(23,000
)
Borrowings under revolving line of credit
 
23,000

 

 

 

 
23,000

Repayments of long-term debt
 

 

 
(360
)
 

 
(360
)
Issuance of long-term debt
 
300,000

 

 

 

 
300,000

Payment of financing costs

(4,765
)







(4,765
)
Repurchase of common stock
 
(8,473
)
 

 

 

 
(8,473
)
Distribution to parent
 

 
(6,387
)
 

 
6,387

 

Distribution to noncontrolling interest
 

 
(1,597
)
 

 

 
(1,597
)
Payment of contingent consideration





(123
)



(123
)
Intercompany financing activities
 
(49,789
)
 
15,924

 

 
33,865

 

Net cash provided (used) by financing activities
 
236,973

 
7,940

 
(483
)
 
40,252

 
284,682

Effect of exchange rates on cash, cash equivalents and restricted cash
 
342

 
(129
)
 
(93
)
 

 
120

Net increase (decrease) in cash, cash equivalents and restricted cash
 
105,905

 
(4,523
)
 
(211
)
 

 
101,171

Cash, cash equivalents and restricted cash at beginning of period
 
31,883

 
11,693

 
1,466

 

 
45,042