Central Garden & Pet Announces Second Quarter Results for Fiscal 2002.Business Editors 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)--May 9, 2002 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 financial results for the fiscal second quarter ended March 30, 2002. 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 second quarter were $290.7 million, compared with $322.8 million in the comparable 2001 period. Net income for the fiscal second quarter was $10.9 million compared with net income of $2.7 million in the comparable 2001 quarter. Earnings per 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 were $0.53, compared to earnings of $0.15 per diluted share in the year-ago period. The improved earnings were driven primarily by a continuing strategic shift to higher margin proprietary garden and pet brands, as well as significant cost reductions in both business segments. Results for the second fiscal quarters of 2002 and 2001 included depreciation and amortization of $4.3 million and $6.9 million, respectively. Fiscal 2001 amounts included $2.7 million of goodwill amortization. Fiscal 2002 amounts do not include goodwill amortization due to the Company's adoption of Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No. 142 (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). No. 142), effective September September: see month. 30, 2001. The results for the second quarter of fiscal 2002 included $8.8 million of expense items which management regards as unusual, while the second quarter of fiscal 2001 included $6.4 million of unusual expense items. Unusual expense items in 2002 are primarily related to 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. . Net sales for the first half of fiscal 2002 were $501.4 million, compared with $534.9 million in the comparable 2001 period. Net income for the first half of fiscal 2002 was $9.4 million, or $0.51 per diluted share, compared with a net loss of $1.8 million, or $0.10 per diluted share, in the comparable 2001 period. The weighted average number of shares outstanding increased to 22,734,000 for the quarter and 22,661,000 for the six month period, compared to 18,465,000 and 18,387,000, respectively, in the comparable year-ago periods, due to the inclusion of the effect of the Company's convertible securities, as the assumed conversion is dilutive in the fiscal 2002 periods. The Company is performing its goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. analysis required under FASB No. 142. Initial results indicate that Central will have a non-cash impairment of goodwill. This analysis is expected to be completed in the third fiscal quarter, at which time the Company will record the amount of goodwill impairment as a cumulative effect of a change in accounting principle. Central Garden & Pet will host an analyst conference call to discuss fiscal second quarter 2002 results at 5:30 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 today. 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 producer of consumer garden and pet products. Central's proprietary branded products include Pennington The name Pennington can refer to a number of different persons, places, and things. Place names In the United States
It usually falls into three main classes—porous-bodied pottery, stoneware, and porcelain. (TM), AMDRO Amdro is a trade name for a hydramethylnon-based hydrazone insecticide, commonly used in the southern United States for fire ant control. Amdro was patented in 1978 by the American Cyanamid company, now Ambrands, and was conditionally approved for use by the United States (R), Maxide maxide A potassium-sparing diuretic that inhibits aldosterone–resulting in ↓ sodium retention. See Diuretics, Potassium-sparing diuretic. (R), Strike(R), Lilly Miller(R), Grant's(R), and Matthews(R) Four Seasons garden products, and All-Glass(R), Oceanic Systems(R), Island(R), Kaytee(R), TFH TFH Technische Fachhochschule (German: Engeneering College/University) TFH 24 Hours (Movie) TFH Thread from Hell (newsgroups) TFH Tinfoil Hat TFH Thanks For Helping (R), Nylabone(R), Zodiac(R), and Four Paws(R) pet products. 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 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 the pending litigation between the Company and The Scotts Company; the success of and the costs associated with the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the Company's lawn and garden distribution operations; any liabilities to which the Company may become subject as a result of the August 2, 2000 fire at its Phoenix distribution center; and the impact of any other outstanding or potential litigation. As previously announced, Central has instructed its financial advisors to study alternatives for maximizing shareholder value, including among others, asset sales and new strategic alliances.
Central Garden & Pet Company
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
March 30, March 31, March 30, March 31,
2002 2001 2002 2001
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Net Sales $290,693 $322,807 $501,352 $ 534,865
Cost of Goods Sold and Occupancy 189,501 225,323 328,374 372,601
-------- --------- -------- ---------
Gross Profit 101,192 97,484 172,978 162,264
Selling, General and
Administrative Expenses 79,881 86,473 149,786 153,519
-------- --------- -------- ---------
Income from Operations 21,311 11,011 23,192 8,745
Interest Expense (3,682) (6,406) (7,620) (12,376)
Interest Income 14 36 41 85
Other Income 892 443 364 535
-------- --------- -------- ---------
Income (Loss) Before Income
Taxes 18,535 5,084 15,977 (3,011)
Income Taxes 7,599 2,390 6,550 (1,253)
-------- --------- -------- ---------
Net Income (Loss) $ 10,936 $ 2,694 $ 9,427 $ (1,758)
======== ========= ======== =========
Basic Earnings (Loss) Per Common
Share $ 0.59 $ 0.15 $ 0.51 $ (0.10)
======== ========= ======== =========
Diluted Earnings (Loss) Per
Common Share $ 0.53 $ 0.15 $ 0.51 $ (0.10)
======== ========= ======== =========
Weighted Average Shares
Outstanding
Basic 18,469 18,405 18,458 18,387
Diluted 22,734 18,465 22,661 18,387
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 30, March 31, September 29,
2002 2001 2001
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Assets
Current Assets:
Cash & Cash Equivalents $ 8,363 $ 5,312 $ 8,292
Accounts Receivable 192,638 193,647 141,791
Inventories 218,293 264,354 217,902
Other Current Assets 21,152 21,510 35,776
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Total Current Assets 440,446 484,823 403,761
Property & Equipment - Net 105,864 109,997 108,798
Other Assets 404,625 412,600 404,067
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Total $ 950,935 $ 1,007,420 $ 916,626
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Liabilities & Shareholders' Equity
Current Liabilities:
Notes Payable $ 134,260 $ 192,576 $ 119,423
Accounts Payable 133,380 144,599 127,884
Other Current Liabilities 49,742 38,827 45,464
------------------------------------
Total Current Liabilities 317,382 376,002 292,771
Long -Term Liabilities 152,101 154,969 151,623
Other Long -Term Obligations 16,619 13,821 16,917
Shareholders' Equity 464,833 462,628 455,315
------------------------------------
Total $950,935 $ 1,007,420 $916,626
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