Annual report pursuant to Section 13 and 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v3.3.1.900
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
12 Months Ended
Sep. 26, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Condensed Statement of Operations
    CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Fiscal Year Ended September 26, 2015
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 494,143      $ 100,127      $ 1,136,958      $ (80,491   $ 1,650,737   

Cost of goods sold and occupancy

    387,632        76,597        773,369        (74,913     1,162,685   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    106,511        23,530        363,589        (5,578     488,052   

Selling, general and administrative expenses

    126,223        18,329        257,643        (5,578     396,617   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

    (19,712     5,201        105,946        0        91,435   

Interest expense

    (39,893     (268     134        0        (40,027

Interest income

    126        3        0        0        129   

Other income (expense)

    (372     407        (22     0        13   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    (59,851     5,343        106,058        0        51,550   

Income tax expense (benefit)

    (21,562     2,089        38,008        0        18,535   

Equity in earnings of affiliates

    70,260        0        2,445        (72,705     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including noncontrolling interest

    31,971        3,254        70,495        (72,705     33,015   

Noncontrolling interest

    0        1,044        0        0        1,044   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

  $ 31,971      $ 2,210      $ 70,495      $ (72,705   $ 31,971   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Fiscal Year Ended September 27, 2014
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 460,781      $ 109,453      $ 1,103,926      $ (69,803   $ 1,604,357   

Cost of goods sold and occupancy

    370,492        87,028        757,217        (64,404     1,150,333   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    90,289        22,425        346,709        (5,399     454,024   

Selling, general and administrative expenses

    117,240        18,230        267,740        (5,399     397,811   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

    (26,951     4,195        78,969        0        56,213   

Interest expense

    (42,742     (218     116        0        42,844   

Interest income

    92        2        0        0        94   

Other income (expense)

    186        583        (366     0        403   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    (69,415     4,562        78,719        0        13,866   

Income tax expense (benefit)

    (26,962     756        30,251        0        4,045   

Equity in earnings of affiliates

    51,257        0        1,506        (52,763     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income loss including noncontrolling interest

    8,804        3,806        49,974        (52,763     9,821   

Noncontrolling interest

    0        1,017        0        0        1,017   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Central Garden & Pet Company

  $ 8,804      $ 2,789      $ 49,974      $ (52,763   $ 8,804   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Fiscal Year Ended September 28, 2013
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net sales

  $ 453,001      $ 88,822      $ 1,186,328      $ (74,518   $ 1,653,633   

Cost of goods sold and occupancy

    364,120        73,068        821,524        (68,981     1,189,731   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    88,881        15,754        364,804        (5,537     463,902   

Selling, general and administrative expenses

    127,644        19,340        282,300        (5,537     423,747   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

    (38,763     (3,586     82,504        0        40,155   

Interest expense

    (42,925     (263     76        0        43,112   

Interest income

    140        2        0        0        142   

Other income (expense)

    (250     398        (825     0        (677
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    (81,798     (3,449     81,755        0        (3,492

Income tax expense (benefit)

    (46,789     (2,567     46,764        0        (2,592

Equity in earnings of affiliates

    33,080        0        (2,561     (30,519     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) including noncontrolling interest

    (1,929     (882     32,430        (30,519     (900

Noncontrolling interest

    0        1,029        0        0        1,029   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

  $ (1,929   $ (1,911   $ 32,430      $ (30,519   $ (1,929
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Consolidating Condensed Statements of Comprehensive Income
    CONSOLIDATING CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME

Fiscal Year Ended September 26, 2015
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

  $ 31,971      $ 3,254      $ 70,495      $ (72,705   $ 33,015   

Other comprehensive loss:

         

Unrealized loss on securities

    (10     0            (10

Reclassification of realized loss on securities included in net income

    20        0        0        0        20   

Foreign currency translation

    (1,078     (537     (380     917        (1,078
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

    30,903        2,717        70,115        (71,788     31,947   

Comprehensive income attributable to noncontrolling interests

    0        1,044        0        0        1,044   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden & Pet Company

  $ 30,903      $ 1,673      $ 70,115      $ (71,788   $ 30,903   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME

Fiscal Year Ended September 27, 2014
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income

  $ 8,804      $ 3,806      $ 49,974      $ (52,763   $ 9,821   

Other comprehensive loss:

         

Foreign currency translation

    0        (200     0        0        (200

Unrealized loss on securities

    (10     0        0        0        (10
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

    8,794        3,606        49,974        (52,763     9,611   

Comprehensive income attributable to noncontrolling interests

    0        1,017        0        0        1,017   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Central Garden & Pet Company

  $ 8,794      $ 2,589      $ 49,974      $ (52,763   $ 8,594   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME

Fiscal Year Ended September 28, 2013
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net income (loss)

  $ (1,929   $ (882   $ 32,430      $ (30,519   $ (900

Other comprehensive loss:

         

Foreign currency translation

    0        (97     0        0        (97
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss)

    (1,929     (979     32,430        (30,519     (997

Comprehensive income attributable to noncontrolling interests

    0        1,029        0        0        1,029   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss attributable to Central Garden & Pet Company

  $ (1,929   $ (2,008   $ 32,430      $ (30,519   $ (2,026
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Consolidating Condensed Balance Sheet
    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

    33,988        3,662        77,519        (6,133     109,036   

Intercompany receivable

    10,311        0        440,327        (450,638     0   

Investment in subsidiaries

    1,052,755        0        0        (1,052,755     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,377,521      $ 36,660      $ 1,230,099      $ (1,509,526   $ 1,134,754   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    399,783        0        65        0        399,848   

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

  $ 1,377,521      $ 36,660      $ 1,230,099      $ (1,509,526   $ 1,134,754   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    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 assets

    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 and other liabilities

    34,412        1,868        48,390        0        84,670   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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   

Shareholders’ equity attributable to Central Garden & Pet

    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
    CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
Fiscal Year Ended September 26, 2015
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash (used) provided by operating activities

  $ (18,948   $ 7,372      $ 105,744      $ (6,719   $ 87,449   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

    (2,687     (405     (18,938     0        (22,030

Payments to acquire companies, net of expenses

    (38,384     0        0        0        (38,384

Change in restricted cash and cash equivalents

    1,126        0        0        0        1,126   

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

    (546     0        0        0        (546

Intercompany investing activities

    6,595        0        (88,905     82,310        0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by investing activities

    (23,916     (405     (107,843     82,310        (49,854
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    (50,262     0        (27     0        (50,289

Proceeds from issuance of common stock

    200        0        0        0        200   

Excess tax benefits from stock-based awards

    2,154        0        0        0        2,154   

Repurchase of common stock

    (18,497     0        0        0        (18,497

Payment of deferred financing costs

    (258     0        0        0        (258

Distribution to parent

    0        (6,719     0        6,719        0   

Distribution to noncontrolling interest

    0        (1,680     0        0        (1,680

Intercompany financing activities

    83,884        (1,574     0        (82,310     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used) by financing activities

    17,221        (9,973     (27     (75,591     (68,370
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

    (697     222        158        0        (317
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

    (26,340     (2,784     (1,968     0        (31,092

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

  $ 37,131      $ 10,022      $ 431      $ 0      $ 47,584   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
Fiscal Year Ended September 27, 2014
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash (used) provided by operating activities

  $ (4,139   $ 7,420      $ 125,720      $ (2,534   $ 126,467   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

    (6,721     (1,027     (9,425     0        (17,173

Businesses acquired, net of cash acquired

    0        0        (20,282     0        (20,282

Proceeds from disposal of plant and equipment

    0        0        8,737        0        8,737   

Change in restricted cash and cash equivalents

    (14,283     0        0        0        (14,283

Maturities of short term investments

    17,820        0        0        0        17,820   

Investment in short term investments

    (10,000     0        0        0        (10,000

Intercompany investing activities

    (6,726     0        (104,926     111,652        0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by investing activities

    (19,910     (1,027     (125,896     111,652        (35,181
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

    (243     0        (124     0        (367

Proceeds from issuance of common stock

    1,165        0        0        0        1,165   

Excess tax benefits from stock-based awards

    498        0        0        0        498   

Repurchase of common stock

    (2,332     0        0        0        (2,332

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

    109,057        2,595        0        (111,652     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used) by financing activities

    82,055        (572     (124     (109,118     (27,759
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

    27        (18     (16     0        (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

    58,033        5,803        (316     0        63,520   

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

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
Fiscal Year Ended September 28, 2013
(in thousands)
 
    Parent     Non-Guarantor
Subsidiaries
    Guarantor
Subsidiaries
    Eliminations     Consolidated  

Net cash (used) provided by operating activities

  $ (31,250   $ (11,632   $ 17,116      $ (2,516   $ (28,282
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to property, plant and equipment

    (8,656     (337     (16,179     0        (25,172

Businesses acquired, net of cash acquired

    0        0        (4,835     0        (4,835

Sale of short term investments

    4,885        0        0        0        4,885   

Intercompany investing activities

    8,986        0        2,923        (11,909     0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used) provided by investing activities

    5,215        (337     (18,091     (11,909     (25,122
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Repayments on revolving line of credit

    (368,000     0        0        0        (368,000

Borrowings on revolving line of credit

    391,000        0        0        0        391,000   

Repayments of long-term debt

    (206     0        (126     0        (332

Proceeds from issuance of common stock

    613        0        0        0        613   

Excess tax benefits from stock-based awards

    388        0        0        0        388   

Repurchase of common stock

    (2,731     0        0        0        (2,731

Distribution to parent

    0        (2,516     0        2,516        0   

Distribution to noncontrolling interest

    0        (629     0        0        (629

Intercompany financing activities

    (28,896     16,987        0        11,909        0   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided (used) by financing activities

    (7,832     13,842        (126     14,425        20,309   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash

    36        (263     3        0        (224
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

    (33,831     1,610        (1,098     0        (33,319

Cash and cash equivalents at beginning of year

    39,269        5,393        3,813        0        48,475   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

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