Quarterly report pursuant to Section 13 or 15(d)

Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)

v3.20.1
Consolidating Condensed Financial Information of Guarantor Subsidiaries (Tables)
6 Months Ended
Mar. 28, 2020
Condensed Financial Information Disclosure [Abstract]  
Consolidating Condensed Statement of Operations
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
Three Months Ended March 28, 2020
(in thousands)
Parent Non- Guarantor Subsidiaries Guarantor Subsidiaries Eliminations Consolidated
Net sales $ 218,951    $ 35,651    $ 473,627    $ (25,000)   $ 703,229   
Cost of goods sold and occupancy 167,640    33,240    318,451    (23,219)   496,112   
     Gross profit 51,311    2,411    155,176    (1,781)   207,117   
Selling, general and administrative expenses 47,616    8,988    86,189    (1,781)   141,012   
     Operating income (loss) 3,695    (6,577)   68,987    —    66,105   
Interest expense (10,666)   (84)   (3)   —    (10,753)  
Interest income 1,409      —    —    1,417   
Other income (expense) (361)   (668)   50    —    (979)  
Income (loss) before taxes and equity in earnings (losses) of affiliates (5,923)   (7,321)   69,034    —    55,790   
Income tax expense (benefit) (433)   185    12,896    —    12,648   
Equity in earnings (loss) of affiliates 48,194    —    69    (48,263)   —   
Net income (loss) including noncontrolling interest 42,704    (7,506)   56,207    (48,263)   43,142   
Net loss attributable to noncontrolling interest —    438    —    —    438   
Net income (loss) attributable to Central Garden & Pet Company $ 42,704    $ (7,944)   $ 56,207    $ (48,263)   $ 42,704   
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      —    —    2,255   
Other income (expense) 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 of affiliates 44,796    —    (101)   (44,695)   —   
Net income (loss) including noncontrolling interest 42,391    (5,475)   50,501    (44,695)   42,722   
Net income 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
  Six Months Ended March 28, 2020
(in thousands)
  Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
Net sales $ 389,279    $ 59,488    $ 774,668    $ (37,378)   $ 1,186,057   
Cost of goods sold and occupancy 299,913    56,952    525,435    (34,626)   847,674   
     Gross profit 89,366    2,536    249,233    (2,752)   338,383   
Selling, general and administrative expenses 90,853    16,807    165,305    (2,752)   270,213   
     Operating income (loss) (1,487)   (14,271)   83,928    —    68,170   
Interest expense (21,244)   (144)   (6)   —    (21,394)  
Interest income 3,406    15    —    —    3,421   
Other income (expense) (436)   69    (307)   —    (674)  
Income (loss) before taxes and equity in earnings (losses) of affiliates (19,761)   (14,331)   83,615    —    49,523   
Income tax expense (benefit) (4,331)   (180)   15,431    —    10,920   
Equity in earnings of affiliates 53,717    —    (611)   (53,106)   —   
Net income (loss) including noncontrolling interest 38,287    (14,151)   67,573    (53,106)   38,603   
Net income attributable to noncontrolling interest —    316    —    —    316   
Net income (loss) attributable to Central Garden & Pet Company $ 38,287    $ (14,467)   $ 67,573    $ (53,106)   $ 38,287   
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      —    —    4,792   
Other income (expense) 342    27    (61)   —    308   
Income (loss) before taxes and equity in earnings (losses) 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 Statements of Comprehensive Income (Loss)
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
  Three Months Ended March 28, 2020
(in thousands)
  Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
Net income (loss) $ 42,704    $ (7,506)   $ 56,207    $ (48,263)   $ 43,142   
Other comprehensive loss:
Foreign currency translation (405)   (227)   (83)   310    (405)  
Total comprehensive income (loss) 42,299    (7,733)   56,124    (47,953)   42,737   
Comprehensive income attributable to noncontrolling interests —    438    —    —    438   
Comprehensive income (loss) attributable to Central Garden & Pet Company $ 42,299    $ (8,171)   $ 56,124    $ (47,953)   $ 42,299   
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 income:
Foreign currency translation 212    127    35    (162)   212   
Total comprehensive income (loss) 42,603    (5,348)   50,536    (44,857)   42,934   
Comprehensive income 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)
Six Months Ended March 28, 2020
(in thousands)
Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
Net income $ 38,287    $ (14,151)   $ 67,573    $ (53,106)   $ 38,603   
Other comprehensive income (loss):
Foreign currency translation 32    70    (62)   (8)   32   
Total comprehensive income (loss) 38,319    (14,081)   67,511    (53,114)   38,635   
Comprehensive income attributable to noncontrolling interests —    316    —    —    316   
Comprehensive income (loss) attributable to Central Garden & Pet Company $ 38,319    $ (14,397)   $ 67,511    $ (53,114)   $ 38,319   

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 $ 44,194    $ (11,270)   $ 68,934    $ (57,497)   $ 44,361   
Other comprehensive loss:
Foreign currency translation (62)   (2)   (60)   62    (62)  
Total comprehensive income 44,132    (11,272)   68,874    (57,435)   44,299   
Comprehensive income (loss) 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 Balance Sheet
CONSOLIDATING CONDENSED BALANCE SHEET
  March 28, 2020
(in thousands)
  Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
ASSETS
Cash and cash equivalents $ 319,187    $ 11,165    $ 1,203    $ —    $ 331,555   
Restricted cash 13,021    —    —    —    13,021   
Accounts receivable, net 137,422    18,661    304,902    —    460,985   
Inventories, net 125,002    46,241    345,964    —    517,207   
Prepaid expenses and other 7,626    1,839    26,695    —    36,160   
Total current assets 602,258    77,906    678,764    —    1,358,928   
Property, plant and equipment, net 27,561    34,962    179,355    —    241,878   
Goodwill 20,577    7,414    261,863    —    289,854   
Operating lease right-of-use assets 48,013    5,916    45,169    —    99,098   
Other long-term assets 48,172    4,791    133,690    (9,004)   177,649   
Intercompany receivable 62,722    —    815,955    (878,677)   —   
Investment in subsidiaries 1,838,475    —    —    (1,838,475)   —   
Total $ 2,647,778    $ 130,989    $ 2,114,796    $ (2,726,156)   $ 2,167,407   
LIABILITIES AND EQUITY
Accounts payable $ 53,323    $ 22,800    $ 110,748    $ —    $ 186,871   
Accrued expenses 59,861    5,216    72,646    —    137,723   
Current operating lease liability 19,306    3,206    9,891    —    32,403   
Current portion of long-term debt 103    —    —    —    103   
Total current liabilities 132,593    31,222    193,285    —    357,100   
Long-term debt 693,622    —    —    —    693,622   
Operating lease long term liabilities 30,721    2,670    37,369    —    70,760   
Intercompany payable 797,082    81,595    —    (878,677)   —   
Losses in excess of investment in subsidiaries —    —    26,408    (26,408)   —   
Other long-term obligations 747    —    60,740    (9,004)   52,483   
Total Central Garden & Pet shareholders’ equity (deficit) 993,013    15,073    1,796,994    (1,812,067)   993,013   
Noncontrolling interest —    429    —    —    429   
Total equity 993,013    15,502    1,796,994    (1,812,067)   993,442   
Total $ 2,647,778    $ 130,989    $ 2,114,796    $ (2,726,156)   $ 2,167,407   
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, net 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   
Property, plant 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 (deficit) 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
  September 28, 2019
(in thousands)
  Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
ASSETS
Cash and cash equivalents $ 489,590    $ 7,308    $ 851    $ —    $ 497,749   
Restricted cash 12,952    —    —    —    12,952   
Accounts receivable, net 99,372    11,551    189,212    —    300,135   
Inventories, net 121,344    30,826    314,027    —    466,197   
Prepaid expenses and other assets 9,339    1,241    19,580    —    30,160   
Total current assets 732,597    50,926    523,670    —    1,307,193   
Property, plant and equipment, net 27,395    35,854    182,156    —    245,405   
Goodwill 20,578    7,414    258,085    —    286,077   
Other long-term assets 55,690    5,487    139,138    (13,970)   186,345   
Intercompany receivable 37,544    —    879,231    (916,775)   —   
Investment in subsidiaries 1,784,750    —    —    (1,784,750)   —   
Total $ 2,658,554    $ 99,681    $ 1,982,280    $ (2,715,495)   $ 2,025,020   
LIABILITIES AND EQUITY
Accounts payable $ 47,506    $ 6,895    $ 94,845    $ —    $ 149,246   
Accrued expenses and other liabilities 54,623    4,814    69,729    —    129,166   
Current portion of long term debt 113    —    —    —    113   
Total current liabilities 102,242    11,709    164,574    —    278,525   
Long-term debt 693,037    —    —    —    693,037   
Intercompany payable 858,673    58,102    —    (916,775)   —   
Losses in excess of investment in subsidiaries —    —    25,567    (25,567)   —   
Other long-term obligations 8,595    —    62,656    (13,970)   57,281   
Total Central Garden & Pet shareholders’ equity (deficit) 996,007    29,700    1,729,483    (1,759,183)   996,007   
Noncontrolling interest —    170    —    —    170   
Total equity 996,007    29,870    1,729,483    (1,759,183)   996,177   
Total $ 2,658,554    $ 99,681    $ 1,982,280    $ (2,715,495)   $ 2,025,020   
Consolidating Condensed Statement of Cash Flows
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
  Six Months Ended March 28, 2020
(in thousands)
  Parent Non-
Guarantor
Subsidiaries
Guarantor
Subsidiaries
Eliminations Consolidated
Net cash used by operating activities $ (25,504)   $ (19,073)   $ (47,851)   $ (230)   $ (92,658)  
Additions to property, plant and equipment (4,236)   (291)   (14,960)   —    (19,487)  
Investments (4,439)   —    —    —    (4,439)  
Other investing activities (437)   —    —    —    (437)  
Intercompany investing activities (25,179)   —    63,276    (38,097)   —   
Net cash (used) provided by investing activities (34,291)   (291)   48,316    (38,097)   (24,363)  
Repayments of long-term debt (59)   —    —    —    (59)  
Payment of financing costs (959)   (959)  
Repurchase of common stock (48,026)   —    —    —    (48,026)  
Distribution to parent —    (230)   —    230    —   
Distribution to noncontrolling interest —    (57)   —    —    (57)  
Payment of contingent consideration liability —    —    (90)   —    (90)  
Intercompany financing activities (61,589)   23,492    —    38,097    —   
Net cash (used) provided by financing activities (110,633)   23,205    (90)   38,327    (49,191)  
Effect of exchange rate changes on cash, cash equivalents and restricted cash 94    16    (23)   —    87   
Net increase (decrease) in cash, cash equivalents and restricted cash (170,334)   3,857    352    —    (166,125)  
Cash, cash equivalents and restricted cash at beginning of period 502,542    7,308    851    —    510,701   
Cash, cash equivalents and restricted cash at end of period $ 332,208    $ 11,165    $ 1,203    $ —    $ 344,576   
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) provided by operating activities $ (23,565)   $ (17,128)   $ (38,626)   $ —    $ (79,319)  
Additions to property, plant 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 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 —    —    (66)   —    (66)  
Intercompany financing activities (91,005)   20,844    —    70,161    —   
Net cash provided (used) by financing activities (94,747)   20,844