Central Garden & Pet Announces Record Fourth Quarter and Fiscal 1997 Results.LAFAYETTE Lafayette (lä'fēĕt`, lăf'ēĕt`). 1 City (1990 pop. 23,501), Contra Costa co., NW Calif., a residential suburb in the San Francisco–Oakland area; settled 1848, inc. 1968. , Calif.--(BUSINESS WIRE)--Nov. 10, 1997-- Full-Year Revenues Up 36% and Net Income Increases 110% 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), the nation's leading distributor of lawn and garden and pet supplies, today announced record financial results for the fourth quarter and full year ended September September: see month. 27, 1997. 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 fourth quarter increased 39.6 percent to $184.1 million from $131.9 million in the comparable 1996 period. Net income for the fourth quarter was $2.6 million, or $0.13 per share, 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. , on 19,255,000 weighted average shares outstanding. This compares with fiscal 1996 fourth quarter net income of $1.4 million, or $0.10 per share on 14,344,000 weighted average shares outstanding. The increase in the weighted average number of shares reflects a secondary offering of Central Common Stock in July July: see month. 1997 but does not reflect the impact of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued in November November: see month. 1996 because their assumed conversion would be anti-dilutive. Full year net sales increased 35.7 percent to $841.0 million from $619.6 million in fiscal 1996. Net income for fiscal 1997 was $17.6 million, or $1.07 per share on a fully diluted basis, compared with $8.4 million, or $0.71 per share for the comparable 1996 period. The weighted number of outstanding shares for fiscal 1997 increased to 19,970,000 from 11,904,000, reflecting the July 1997 secondary offering of Central Common Stock and the impact of convertible debentures issued in November 1996. "Fiscal 1997 was an outstanding year for Central, both in terms of financial results and strategic accomplishments," said William E. Brown Archbishop William (EUSEBUIS) Brown is the First African-American Archbishop in the state of Virginia. He heads the Archdiocese of Fredericksburg, headquartered in Stafford, Virginia. Archbishop Brown is the current Chief Pastor of Mt. , Chairman and Chief Executive Officer. "Strong internal growth combined with successful acquisitions contributed to excellent fourth quarter and full-year performance, and it solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our position as the country's leading distributor of lawn and garden products and pet supplies." Brown added: "During the year we added scale and geographic scope, completing the acquisitions of Ezell Nursery Supply and the pet supplies business of Country Pet. We also made an equity investment in Commerce, the leading East Coast distributor of lawn and garden products. In branded products we also made excellent progress, purchasing Four Paws Products and the U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. flea and 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. protection business of Sandoz For the pre-1996 company, see . Sandoz is the generics subsidiary of Novartis, a multinational pharmaceutical company. The company develops, manufactures and markets off-patent medicines as well as pharmaceutical and biotechnological active ingredients. Agro. In summary, this was an exciting year for Central." Central Garden & Pet Company is the leading national distributor of lawn, garden and pet supply products, and a major national distributor of pool supplies. Central offers customers a wide array of services designed to increase the sales and profitability of both manufacturers and retailers, including inventory management, advertising and promotional programs, in-store design and display assistance and sales program development. Central also offers lines of proprietary branded products which include Zodiac(R) and Four Paws(R) pet products, Island(R) aquariums, Matthews(R) redwood redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. products and Grant's(R) ant control products. -0- "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 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. -0-
Central Garden & Pet Company
Consolidated Statements of Income
(In thousands, except per share amounts)
Fiscal Year Ended Three Months Ended
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
1997 1996 1997 1996
---- ---- ---- ----
(unaudited) (unaudited)
Net Sales $841,007 $619,622 $184,120 $131,899
Cost of Goods Sold
and Occupancy 694,925 535,189 143,722 111,242
Gross Profit 146,082 84,433 40,398 20,657
Selling, General and
Administrative Expenses 109,160 66,945 34,421 18,949
Income from Operations 36,922 17,488 5,977 1,708
Other Income (Expense) 1,038 1,174
Interest Expense - Net (6,554) (4,061) (1,542) (647)
Income before income
taxes 30,368 14,465 4,435 2,235
Income Taxes 12,765 6,017 1,870 850
Net Income $ 17,603 $ 8,448 $ 2,565 $ 1,385
Net income per common
and common equivalent
share
Primary $ 1.08 $ 0.72 $ 0.13 $ 0.10
Fully diluted $ 1.07 $ 0.71 $ 0.13 $ 0.10
Weighted average
shares outstanding
Primary 16,293 11,702 19,117 14,250
Fully diluted 19,970 11,904 19,255 14,344
-0-
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
September 27, September 28,
1997 1996
---- ----
ASSETS
Current Assets:
Cash $ 100,125 $ 1,272
Accounts Receivable 85,028 62,231
Inventories 218,796 169,835
Other Current Assets 10,470 7,132
------------ ------------
Total Current Assets 414,419 240,470
Property and Equipment - Net 22,688 11,464
Other Assets 121,936 31,730
------------ ------------
Total Assets $ 559,043 $ 283,664
=========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Notes Payable $ 72 $ 27,904
Accounts Payable 136,220 104,049
Other Current Liabilities 24,201 12,847
----------- -----------
Total Current Liabilities 160,493 144,800
Long-Term Liabilities 115,200 7,635
Other Long-Term Obligations 1,543 1,670
Shareholders' Equity 281,807 129,559
----------- -----------
Total Liabilities &
Shareholders' Equity $ 559,043 $ 283,664
CONTACT: Gregory Reams REAMS Resource Evaluation And Management System Central Garden & Pet (510) 283-4573 or Paul Verbinnen/Debbie Miller Sard Verbinnen & Co. (212) 687-8080 |
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