Central Garden & Pet Announces Record First Quarter Earnings for Fiscal 2005.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:CENT): --Earnings Per Share of 12 Cents v. A Loss of 3 Cents A Year Ago --Existing Brands, Acquisitions and Margin Expansion Initiatives Drive Performance --Re-Affirms Guidance Including the New Impact of Expensing Stock Options Central Garden & Pet Company (Nasdaq:CENT) today announced record results for its fiscal first quarter ended December 25, 2004. 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 for the fiscal first quarter were $265.6 million, an increase of 19% from $222.4 million in the first quarter of fiscal 2004. Net income was $2.5 million for the quarter compared to a net loss of $0.6 million in the first quarter of fiscal 2004. Fully-diluted earnings per share was $0.12, compared to a loss of $0.03 in the first quarter of fiscal 2004. Depreciation and amortization in the quarter was $4.5 million. "Fiscal 2005 is off to a strong start," noted Glenn Novotny, President and Chief Executive Officer of Central Garden and Pet. "We systematically worked to strengthen our Company to deliver four profitable quarters. Both Garden and Pet benefited from a combination of strong growth and margin expansion from our existing brands. Acquisitions completed after the first quarter of fiscal 2004 further strengthened our results." The Company reiterated its fiscal 2005 guidance of approximately $1.4 billion in sales and an earnings range of $2.42 to $2.52 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Included in this guidance is the new impact of expensing stock options. The Company anticipates stock options to cost approximately three cents per fully-diluted share in fiscal 2005 and approximately eight cents per fully-diluted share in fiscal 2006. The Company will discuss its fiscal first quarter 2005 results on a conference call today at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . The conference call will be simultaneously broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through Central's website, http://www.centralgardenandpet.com/. To listen to the webcast, please log on to the website prior to the scheduled call time to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary audio software. Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products for the pet and lawn and garden supplies markets. Our pet products include pet bird and small animal food, aquarium aquarium, name for any supervised exhibit of aquatic animals and plants. Aquariums are known to have been constructed in ancient Rome, Egypt, and Asia. Goldfish have been bred in China for several hundred years and are still the most commonly kept fish in home products, flea, tick tick: see mite. tick Any of some 825 parasitic arachnid species (suborder Ixodida, order Parasitiformes), found worldwide. Adults may be slightly more than an inch (30 mm) long, but most species are much smaller. , mosquito mosquito (məskē`tō), small, long-legged insect of the order Diptera, the true flies. The females of most species have piercing and sucking mouth parts and apparently they must feed at least once upon mammalian blood before their eggs can and other pest control pest control n → control m de plagas pest control n → lutte f contre les nuisibles pest control pest n products, edible bones, cages, carriers, pet books, and other dog, cat, reptile and small animal products. These products are sold under a number of brand names, including Kaytee, All-Glass Aquarium, Oceanic, Kent Marine, Energy Saver Unlimited, Zodiac, Pre-Strike, Altosid, Nylabone, TFH TFH Technische Fachhochschule (German: Engeneering College/University) TFH 24 Hours (Movie) TFH Thread from Hell (newsgroups) TFH Tinfoil Hat TFH Thanks For Helping , Four Paws and Interpet. Our lawn and garden products include grass seed, wild bird food, weed weed, common term for any wild plant, particularly an undesired plant, growing in cultivated ground, where it competes with crop plants for soil nutrients and water. and insect control products, decorative outdoor patio patio In Spanish and Latin American architecture, a courtyard open to the sky within a building. A Spanish development of the Roman atrium, it is comparable to the Italian cortile but provides more seclusion, possibly due to Moorish custom. The patio of the contemporary U.S. products and ant control products. These products are sold under a number of brand names, including Pennington, Norcal Pottery pottery, the baked-clay wares of the entire ceramics field. For a description of the nature of the material, see clay. Types of Pottery It usually falls into three main classes—porous-bodied pottery, stoneware, and porcelain. , 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, GKI/Bethlehem Lighting, Lilly Miller, Matthews Four Seasons, AMDRO and Grant's. For additional information on Central Garden & Pet, including access to the Company's SEC filings, please visit the Company's website at http://www.centralgardenandpet.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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Securities and Exchange Commission filings including, without limitation, the resolution of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between the Company and Hebert Axelrod Ax·el·rod , Julius 1912-2004. American biochemist and pharmacologist. He shared a 1970 Nobel Prize for studies of the ways in which different substances affect neural impulses. . Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
Central Garden & Pet Company
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
--------------------------
December 25, December 27,
2004 2003
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Net Sales $265,576 $222,350
Cost of Goods Sold and Occupancy 179,535 160,279
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Gross Profit 86,041 62,071
Selling, General and Administrative
Expenses 76,525 58,511
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Income from Operations 9,516 3,560
Interest Expense (5,298) (4,105)
Interest Income 103 199
Other Expense (320) (715)
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Income (Loss) Before Income Taxes 4,001 (1,061)
Income Taxes 1,485 (416)
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Net Income (Loss) $2,516 $(645)
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Basic Earnings Per Common Share: $0.12 $(0.03)
Diluted Earnings Per Common Share: $0.12 $(0.03)
Weighted Average Shares Outstanding
Basic 20,539 19,877
Diluted 21,264 19,877
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 25, December 27,
2004 2003
------------ ------------
Assets
Current Assets:
Cash & Cash Equivalents $14,100 $65,265
Restricted Investments 15,066 15,052
Accounts Receivable 143,656 113,839
Inventories 288,192 243,911
Other Current Assets 18,718 17,601
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Total Current Assets 479,732 455,668
Property & Equipment - Net 106,893 101,873
Goodwill 340,088 222,780
Other Assets 50,292 51,481
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Total $977,005 $831,802
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Liabilities & Shareholders' Equity
Current Liabilities:
Accounts Payable $119,018 $105,112
Accrued Expenses 69,448 47,556
Current Portion of Long-Term Debt 1,025 1,028
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Total Current Liabilities 189,491 153,696
Long-Term Liabilities 294,296 249,782
Other Long-Term Obligations 3,967 1,570
Convertible Redeemable Preferred Stock 3,000 ---
Shareholders' Equity 486,251 426,754
------------ ------------
Total $977,005 $831,802
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