Central Garden & Pet Announces Fiscal Second Quarter Results.Reports Second Quarter Sales Increase of 21% to $486 Million and Earnings Per Fully Diluted Share of 30 Cents Higher Grain Costs Continue to Negatively Impact Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before Organic Sales Increased 11% Reiterates Fiscal 2007 Financial Outlook of $0.83 to $0.88 Per Share WALNUT CREEK Walnut Creek, residential city (1990 pop. 60,569), Contra Costa co., W Calif., in the San Francisco Bay area; inc. 1914. It is the trade and shipping center of an extensive agricultural area where walnuts are among the major product. , Calif. -- Central Garden & Pet Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CENT) today announced results for its second quarter ended March 31, 2007. The Company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $486 million, an increase of 21% from $401 million in the comparable fiscal 2006 period. Income from operations for the quarter increased 1% to $46.2 million from $45.7 million in the year ago period. The Company reported net income for the quarter of $21.4 million, or $0.30 per fully diluted share, compared to net income of $26.2 million, or $0.39 per fully diluted share, in the year ago period. Branded product sales increased 25%. Sales of other manufacturers' products increased 2%. Organic sales increased 11%. Depreciation and amortization for the quarter was $7.4 million compared to $6.0 million in the year ago period. "Our continued focus on new product innovation supported by our brand building initiatives, contribution from acquisitions completed in fiscal 2006, and favorable early season weather conditions drove our strong sales performance," noted Glenn Novotny, President and Chief Executive Officer of Central Garden & Pet. "Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and margins continued to be adversely impacted primarily by higher grain costs related to our wild bird feed operations. In addition, higher interest expense associated with recent acquisitions and a higher tax rate than prior year further impacted net income." Net sales for the Garden Products segment were $256 million, an increase of 20% from $214 million in the comparable fiscal 2006 period. Garden Products income from operations increased 9% to $28.8 million from $26.3 million in the year ago period. Branded product sales increased 24%. Sales of other manufacturers' products declined 2%. Recent acquisitions contributed $9 million. Organic sales increased 15%. Net sales for the Pet Products segment were $230 million, an increase of 23% from $187 million in the comparable fiscal 2006 period. Pet Products income from operations increased 17% to $29.3 million from $25.1 million in the year ago period. Branded product sales increased 27%. Sales of other manufacturers' products increased 6%. Recent acquisitions contributed $30 million. Organic sales increased 7%. For the six months ending March 31, 2007 of fiscal 2007, the Company reported net sales of $803 million, an increase of 16% from $694 million in the comparable 2006 period. Income from operations for the period decreased 6% to $52.2 million. Net income for the first six month period decreased 36% to $18.5 million from $28.8 million in the year ago period. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.26 compared to $0.43 in the year ago period. Branded product sales increased 21% while sales of other manufacturers' products declined 4%. Depreciation and amortization for the first six month period was $14.3 million compared to $11.2 million in the year ago period. "We are reiterating our sales and earnings guidance for the year," concluded Mr. Novotny. "However, we are closely watching the performance of our Garden business, which experienced lower than anticipated sales in April, and the continued volatility of the grain cost environment." The Company will discuss its second quarter results and 2007 guidance on a conference call today at 4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT / 1:30 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . Individuals may access the call by dialing 1-866-510-0704 and passcode 36512381 (domestic) or 1-617-597-5362 and passcode 36512381 (international). The conference call will be simultaneously broadcast over the Internet through Central's website, http://www.central.com/. To listen to the webcast, please log on to the website prior to the scheduled call time to register and download any necessary audio software. Re-play dial-in numbers for the call will be available for three weeks: 1-888-286-8010 and passcode 45356257 (domestic) and 1-617-801-6888 and passcode 45356257 (international). Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products for the lawn & garden and pet supplies markets. Committed to new product innovation, our products are sold to specialty independent and mass retailers in the following categories: Lawn & Garden: Grass seed including the brands PENNINGTON[R] and THE REBELS[TM]; wild bird feed and the brands PENNINGTON[R] and KAYTEE[R]; weed and insect control and the brands AMDRO[R], SEVIN[R], IRONITE[R] and Over 'N Out and; decorative outdoor patio products and the brands NORCAL NORCAL Northern California [R], NEW ENGLAND New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. POTTERY[R] and MATTHEWS FOUR SEASONS[TM]. We also provide a host of other regional and application-specific garden brands and supplies. Pet categories include: Animal health and the brands ADAMS[TM] and ZODIAC[R]; aquatics and reptile and the brands OCEANIC[R], AQUEON[TM] and RZILLA[TM]; bird & small animal and the brands KAYTEE[R], SUPER PET[R] and CRITTER TRAIL[R]; dog & cat and the brands TFH TFH Technische Fachhochschule (German: Engeneering College/University) TFH 24 Hours (Movie) TFH Thread from Hell (newsgroups) TFH Tinfoil Hat TFH Thanks For Helping [TM] / NYLABONE[R], FOUR PAWS[R], PINNACLE[R] and Avoderm and; equine and the brands FARNAM[R], BRONCO bronco: see mustang. [R] and SUPER MASK[R]. We also provide a host of other application-specific pet brands and supplies. Central Garden & Pet is based in Walnut Creek, California Walnut Creek is a largely affluent suburb several miles east of Oakland in Contra Costa County, California, USA, in the East Bay region of the San Francisco Bay Area. While not as large as the neighboring Concord, Walnut Creek serves as the business and entertainment hub for the , and has approximately 5,000 employees, primarily in North America and Europe. For additional information on Central Garden & Pet, including access to the Company's SEC filings, please visit the Company's website at http://www.central.com/. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this release which are not historical facts, including future earnings guidance, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks are described in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other Securities and Exchange Commission filings. Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise. [TABLE OMITTED] [TABLE OMITTED] |
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