Central Garden & Pet Announces Record Third Quarter Results for Fiscal 1997.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)--August 7, 1997-- Revenues Increase 41%; Net Income Up 79% 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 products and pet supplies, today announced record financial results for the fiscal t`ird quarter ended June June: see month. 28, 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 third quarter increased 40.8% to $320.4 million from $227.6 million in the comparable 1996 period. Net income for the fiscal third quarter was $11.8 million, or $0.65 per share on a 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. basis, compared with net income of $6.6 million, or $0.54 per share, in the year ago period. The weighted average fully diluted shares for the quarter increased to 19,935,000 from 12,176,000 in the year ago quarter, reflecting a secondary offering of Central Common Stock in July July: see month. 1996, and 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. Net sales for the first nine months of fiscal 1997 increased 34.7% to $656.9 million from $487.7 million in the comparable 1996 period. Net income for the first nine months of fiscal 1997 was $15.0 million, or $0.94 per share on a fully diluted basis, compared with net income of $7.1 million, or $0.64 per share, in the comparable 1996 period. The weighted average number of shares for the period increased to 18,851,000 compared to 11,098,000 in the comparable 1996 period. "We are pleased to report another quarter of solid internal growth led by strong spring sales in our lawn and garden business," 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. "Central's pet supply business also continued to show strength, benefiting from the addition of Four Paws Products and Country Pet Supply, two acquisitions which closed in the second quarter of this fiscal year." Brown added, "During the quarter, we remained active on the acquisition front, completing the strategic acquisition of Ezell Nursery Supply and completing the previously announced acquisition of Sandoz Agro's 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 -- a move that is indicative of our increasing presence in the branded products business." Brown concluded, "Overall, we believe that our results demonstrate the underlying strength in our business and we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects." 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. "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-
(Tables follow)
Central Garden & Pet Company
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands except per share)
Nine Months Ended Three Months Ended
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
Net Sales $656,887 $487,723 $320,402 $227,591
Cost of Goods Sold and
Occupancy 551,203 423,947 265,888 196,941
Gross Profit 105,684 63,776 54,514 30,650
Selling, General and
Administrative Expenses 74,739 48,132 31,895 18,210
Income from Operations 30,945 15,644 22,619 12,440
Interest Expense - Net (5,012) (3,414) (2,265) (962)
Income before income taxes 25,933 12,230 20,354 11,478
Income Taxes 10,895 5,167 8,547 4,843
Net Income $ 15,038 $ 7,063 $ 11,807 $ 6,635
Net income per common and common
equivalent share
Primary $ 0.98 $ 0.65 $ 0.75 $ 0.55
Fully diluted $ 0.94 $ 0.64 $ 0.65 $ 0.54
Weighted average shares outstanding
Primary 15,362 10,811 15,685 11,973
Fully diluted 18,851 11,098 19,935 12,176
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
June 28, September 28,
1997 1996
(unaudited)
ASSETS
Current Assets:
Cash $ 1,337 $ 1,272
Accounts Receivable 134,728 62,231
Inventories 219,936 169,835
Other Current Assets 9,943 7,132
Total Current Assets 365,944 240,470
Property and Equipment - Net 22,090 11,464
Other Assets 125,152 31,730
Total Assets $ 513,186 $ 283,664
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Notes Payable $ 27,999 $ 27,904
Accounts Payable 170,045 104,049
Other Current Liabilities 37,644 12,847
Total Current Liabilities 235,688 144,800
Long-Term Liabilities 116,821 7,635
Other Long-Term Obligations 1,670 1,670
Shareholders' Equity 159,007 129,559
Total Liabilities &
Shareholders' Equity $ 513,186 $ 283,664
-0-
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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