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)

6 Months Ended

Mar. 30, 2013

Consolidating Condensed Financial Information of Guarantor Subsidiaries [Abstract]

Condensed Statement of Operations based on the Company's understanding of the SEC's Interpretation


	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended March 30, 2013 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	158,939		$	351,581	$	(12,351	)	$	498,169
Cost of products sold and occupancy		116,559			240,791		(12,351	)		344,999

Gross profit		42,380			110,790		0			153,170
Selling, general and administrative expenses		36,927			69,497		0			106,424

Income from operations		5,453			41,293		0			46,746
Interest – net		(10,922	)		12		0			(10,910	)
Other income (loss )		(3,065	)		3,017		0			(48	)

Income (loss) before income taxes		(8,534	)		44,322		0			35,788
Income taxes (tax benefit)		(2,605	)		15,433		0			12,828

Income (loss) including noncontrolling interest		(5,929	)		28,889					22,960
Income attributable to noncontrolling interest		764			0		0			764

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries		(6,693	)		28,889		0			22,196
Equity in undistributed income of guarantor subsidiaries		28,889			0		(28,889	)		0

Net income attributable to Central Garden & Pet Co.	$	22,196		$	28,889	$	(28,889	)	$	22,196


	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Three Months Ended March 24, 2012 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	152,381		$	335,477	$	(20,955	)	$	466,903
Cost of products sold and occupancy		106,241			233,921		(20,955	)		319,207

Gross profit		46,140			101,556		0			147,696
Selling, general and administrative expenses		34,402			68,072		0			102,474

Income from operations		11,738			33,484		0			45,222
Interest – net		(10,440	)		0		0			(10,440	)
Other income (loss )		(1,376	)		1,369		0			(7	)

Income (loss) before income taxes		(78	)		34,853		0			34,775
Income taxes (tax benefit)		(48	)		12,856		0			12,808

Income (loss) including noncontrolling interest		(30	)		21,997		0			21,967
Income attributable to noncontrolling interest		344			0		0			344

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries		(374	)		21,997		0			21,623
Equity in undistributed income of guarantor subsidiaries		21,997			0		(21,997	)		0

Net income attributable to Central Garden & Pet Co.	$	21,623		$	21,997	$	(21,997	)	$	21,623


	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Six Months Ended March 30, 2013 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	254,942		$	560,626	$	(24,902	)	$	790,666
Cost of products sold and occupancy		191,402			394,037		(24,902	)		560,537

Gross profit		63,540			166,589		0			230,129
Selling, general and administrative expenses		65,446			131,031		0			196,477

Income (loss) from operations		(1,906	)		35,558		0			33,652
Interest – net		(21,221	)		61		0			(21,160	)
Other income (loss )		(2,817	)		1,788		0			(1,029	)

Income (loss) before income taxes		(25,944	)		37,407		0			11,463
Income taxes (tax benefit)		(8,988	)		12,838		0			3,850

Income (loss) including noncontrolling interest		(16,956	)		24,569					7,613
Income attributable to noncontrolling interest		686			0		0			686

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries		(17,642	)		24,569		0			6,927
Equity in undistributed income of guarantor subsidiaries		24,569			0		(24,569	)		0

Net income attributable to Central Garden & Pet Co.	$	6,927		$	24,569	$	(24,569	)	$	6,927


	CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Six Months Ended March 24, 2012 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	254,294		$	549,901	$	(35,226	)	$	768,969
Cost of products sold and occupancy		184,976			390,785		(35,226	)		540,535

Gross profit		69,318			159,116		0			228,434
Selling, general and administrative expenses		63,603			130,889		0			194,492

Income from operations		5,715			28,227		0			33,942
Interest – net		(20,042	)		83		0			(19,959	)
Other income (expense)		(667	)		546		0			(121	)

Income (loss) before income taxes		(14,994	)		28,856		0			13,862
Income tax (tax benefit)		(5,492	)		10,654		0			5,162

Income (loss) including noncontrolling interest		(9,502	)		18,202		0			8,700
Income attributable to noncontrolling interest		167			0		0			167

Income (loss) attributable to Central Garden & Pet Co. before equity in undistributed income of guarantor subsidiaries		(9,669	)		18,202		0			8,533
Equity in undistributed income of guarantor subsidiaries		18,202			0		(18,202	)		0

Net income attributable to Central Garden & Pet Co.	$	8,533		$	18,202	$	(18,202	)	$	8,533

Consolidating Condensed Statements of Comprehensive Income


	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 30, 2013 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(5,929	)	$	28,889	$	0	$	22,960
Other comprehensive loss:
Foreign currency translation		(566	)		0		0		(566	)

Total comprehensive income (loss)		(6,495	)		28,889		0		22,394
Comprehensive income attributable to noncontrolling interests		764			0		0		764

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(7,259	)	$	28,889	$	0	$	21,630


	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 24, 2012 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(30	)	$	21,997	$	0	$	21,967
Other comprehensive income:
Foreign currency translation		203			0		0		203

Total comprehensive income		173			21,997		0		22,170
Comprehensive income attributable to noncontrolling interests		344			0		0		344

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(171	)	$	21,997	$	0	$	21,826


	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended March 30, 2013 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(16,956	)	$	24,569	$	0	$	7,613
Other comprehensive loss:
Foreign currency translation		(607	)		0		0		(607	)

Total comprehensive income (loss)		(17,563	)		24,569		0		7,006
Comprehensive income attributable to noncontrolling interests		686			0		0		686

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(18,249	)	$	24,569	$	0	$	6,320


	CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended March 24, 2012 (in thousands) (unaudited)
	Parent			Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(9,502	)	$	18,202	$	0	$	8,700
Other comprehensive income:
Foreign currency translation		293			0		0		293

Total comprehensive income (loss)		(9,209	)		18,202		0		8,993
Comprehensive income attributable to noncontrolling interests		167			0		0		167

Comprehensive income (loss) attributable to Central Garden & Pet Company	$	(9,376	)	$	18,202	$	0	$	8,826

Condensed Balance Sheet based on the Company's understanding of the SEC Interpretation


	CONSOLIDATING CONDENSED BALANCE SHEET March 30, 2013 (in thousands) (unaudited)
	Parent		Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	8,906	$	2,378	$	—		$	11,284
Short term investments		17,820		—		—			17,820
Accounts receivable, net		108,938		224,199		(10,947	)		322,190
Inventories		145,781		290,102		—			435,883
Prepaid expenses and other assets		30,013		29,395		—			59,408

Total current assets		311,458		546,074		(10,947	)		846,585
Land, buildings, improvements and equipment, net		82,948		110,725		—			193,673
Goodwill		—		210,223		—			210,223
Investment in guarantors		772,514		—		(772,514	)		—
Deferred income taxes and other assets		53,747		42,353		—			96,100

Total	$	1,220,667	$	909,375	$	(783,461	)	$	1,346,581

LIABILITIES AND EQUITY
Accounts payable	$	79,227	$	97,411	$	(10,947	)	$	165,691
Accrued expenses and other current liabilities		39,520		37,666		—			77,186

Total current liabilities		118,747		135,077		(10,947	)		242,877
Long-term debt		593,376		48		—			593,424
Other long-term obligations		32,915		1,736		—			34,651
Shareholders’ equity attributable to Central Garden & Pet Co.		474,626		772,514		(772,514	)		474,626
Noncontrolling interest		1,003		—		—			1,003

Total equity		475,629		772,514		(772,514	)		475,629

Total	$	1,220,667	$	909,375	$	(783,461	)	$	1,346,581


	CONSOLIDATING CONDENSED BALANCE SHEET March 24, 2012 (in thousands) (unaudited)
	Parent		Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	7,960	$	2,321	$	0		$	10,281
Short term investments		17,820		0		0			17,820
Accounts receivable, net		103,146		217,032		(10,879	)		309,299
Inventories		124,095		256,717		0			380,812
Prepaid expenses and other assets		26,325		21,402		0			47,727

Total current assets		279,346		497,472		(10,879	)		765,939
Land, buildings, improvements and equipment, net		76,292		106,277		0			182,569
Goodwill		0		210,223		0			210,223
Investment in guarantors		730,048		0		(730,048	)		0
Deferred income taxes and other assets		44,589		56,754		0			101,343

Total	$	1,130,275	$	870,726	$	(740,927	)	$	1,260,074

LIABILITIES AND EQUITY
Accounts payable	$	59,656	$	101,828	$	(10,879	)	$	150,605
Accrued expenses and other current liabilities		38,366		36,977		0			75,343

Total current liabilities		98,022		138,805		(10,879	)		225,948
Long-term debt		566,434		169		0			566,603
Other long-term obligations		16,872		1,704		0			18,576
Shareholders’ equity attributable to Central Garden & Pet Co.		448,774		730,048		(730,048	)		448,774
Noncontrolling interest		173		0		0			173

Total equity		448,947		730,048		(730,048	)		448,947

Total	$	1,130,275	$	870,726	$	(740,927	)	$	1,260,074


	CONSOLIDATING CONDENSED BALANCE SHEET September 29, 2012 (in thousands)
	Parent		Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	44,662	$	3,813	$	0		$	48,475
Short term investments		22,705		0		0			22,705
Accounts receivable, net		48,339		159,328		(5,245	)		202,422
Inventories		97,017		233,015		0			330,032
Prepaid expenses and other assets		25,242		22,907		0			48,149

Total current assets		237,965		419,063		(5,245	)		651,783
Land, buildings, improvements and equipment, net		81,727		109,436		0			191,163
Goodwill		0		210,223		0			210,223
Investment in guarantors		654,362		0		(654,362	)		0
Other assets		54,910		41,468		0			96,378

Total	$	1,028,964	$	780,190	$	(659,607	)	$	1,149,547

LIABILITIES AND EQUITY
Accounts payable	$	49,894	$	82,013	$	(5,245	)	$	126,662
Accrued expenses and other liabilities		38,673		41,149		0			79,822

Total current liabilities		88,567		123,162		(5,245	)		206,484
Long-term debt		449,387		96		0			449,483
Other long-term obligations		26,127		2,570		0			28,697
Shareholders’ equity attributable to Central Garden & Pet		463,937		654,362		(654,362	)		463,937
Noncontrolling interest		946		0		0			946

Total equity		464,883		654,362		(654,362	)		464,883

Total	$	1,028,964	$	780,190	$	(659,607	)	$	1,149,547

Condensed Cash Flows Statement on the Company's understanding of the SEC Interpretation


	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Six Months Ended March 30, 2013 ( in thousands) (unaudited)
	Parent			Guarantor Subsidiaries			Eliminations		Consolidated
Net cash used by operating activities	$	(56,490	)	$	(81,105)		$	(24,569)	$	(162,164	)

Additions to property and equipment		(7,000	)		(9,164	)		—		(16,164	)
Proceeds from short term investments		4,885			—			—		4,885
Payment to acquire companies		—			(4,835	)		—		(4,835	)
Investment in guarantor subsidiaries		(118,152	)		93,583			24,569		—

Net cash provided (used) by investing activities		(120,267	)		79,584			24,569		(16,114	)

Repayments of long-term debt		(111	)		(59	)		—		(170	)
Borrowings under revolving line of credit		186,000			—			—		186,000
Repayments under revolving line of credit		(42,000	)		—			—		(42,000	)
Repurchase of common stock		(2,454	)		—			—		(2,454	)
Proceeds from issuance of common stock		475			—			—		475
Distribution to minority interest		(629	)		—			—		(629	)
Excess tax benefits from stock-based awards		289			—			—		289

Net cash provided (used) by financing activities		141,570			(59	)		—		141,511
Effect of exchange rate changes on cash		(569	)		145			—		(424	)

Net decrease in cash and cash equivalents		(35,756	)		(1,435	)		—		(37,191	)
Cash and cash equivalents at beginning of period		44,662			3,813			—		48,475

Cash and cash equivalents at end of period	$	8,906			2,378			—	$	11,284


	CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS Six Months Ended March 24, 2012 ( in thousands) (unaudited)
	Parent			Guarantor Subsidiaries			Eliminations			Consolidated
Net cash used by operating activities	$	(20,879	)	$	(54,364	)	$	(18,203	)	$	(93,446	)

Additions to property and equipment		(8,158	)		(8,810	)		0			(16,968	)
Investment in guarantor subsidiaries		(82,422	)		64,219			18,203			0

Net cash provided (used) by investing activities		(90,580	)		55,409			18,203			(16,968	)

Repayments of long-term debt		(117	)		(60	)		0			(177	)
Borrowings under revolving line of credit		254,000			0			0			254,000
Repayments under revolving line of credit		(172,000	)		0			0			(172,000	)
Issuance of long-term debt		49,264			0			0			49,264
Repurchase of common stock		(21,689	)		0			0			(21,689	)
Payment of financing costs		(1,488	)		0			0			(1,488	)
Proceeds from issuance of common stock		396			0			0			396
Excess tax benefits from stock-based awards		199			0			0			199

Net cash provided (used by) financing activities		108,565			(60	)		0			108,505

Effect of exchange rate changes on cash		221			(62	)		0			159

Net increase (decrease) in cash and cash equivalents		(2,673	)		923			0			(1,750	)
Cash and cash equivalents at beginning of period		10,633			1,398			0			12,031

Cash and cash equivalents at end of period	$	7,960		$	2,321		$	0		$	10,281