Central Garden & Pet Reports Fourth Quarter and Full-year Results for Fiscal 2000.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. , California--(BUSINESS WIRE)--December 19, 2000 Announces Reorganization Of Business To Improve Focus And Profitability 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 its financial results for the fourth quarter and full year ended September September: see month. 30, 2000. Full year 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 were $1.4 billion compared with $1.5 billion in fiscal 1999. Central reported a net loss for fiscal 2000 of $11.8 million, or $0.63 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, compared with net income of $24.5 million, or $0.89 per diluted share in fiscal 1999. During the fourth quarter, Central recorded charges of $27.2 million and inventory valuation adjustments of $7.5 million primarily related to activities associated with the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of its distribution relationship with The Scotts Company. Net income for fiscal 2000, excluding these charges and inventory valuation adjustments, would have been $14.6 million, or $0.77 per diluted share. Net sales for the fiscal fourth quarter were $300.7 million compared to $331.8 million in the comparable 1999 period. Central reported a net loss for the quarter of $30.3 million, or $1.63 per diluted share, compared with a net loss of $4.3 million, or $0.19 per diluted share in the comparable 1999 quarter. Excluding the charges and inventory valuation adjustments discussed previously, the net loss for the fiscal fourth quarter would have been $3.9 million, or $0.21 per diluted share. Central also announced the reorganization of its garden and pet businesses to focus the Company going forward. Further, the Company reported the termination of its previously announced proposed spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of its garden distribution business to shareholders. Under the reorganization, Central Garden & Pet's garden products and distribution businesses will become one operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon and its pet products and distribution businesses will become another operating unit. Management and the Board of Directors believe this will benefit Central and its shareholders by increasing the Company's ability to leverage existing assets, brands and logistics channels for a more efficient operation and enhanced and sustainable profitability. Central Garden & Pet Company is a leading manufacturer and supplier of consumer lawn and garden and pet supply products. Central's proprietary branded products include 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), Pennington The name Pennington can refer to a number of different persons, places, and things. Place names In the United States
In 1886, William Grant founded the Glennfiddich Distillery in Dufftown, Scotland. Glenfiddich single malt Scotch whisky first ran from the stills on Christmas Day, 1887. (R), and Matthews Matthews may refer to: In places:
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 final resolution of all issues between the Company and Pharmacia Corporation (formerly known as Monsanto Company) under the Solaris Agreement; the resolution of the pending 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. among the Company, Pharmacia 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.
Central Garden & Pet Company
Consolidated Statements of Income
(In thousands, except per share amounts)
Fiscal Year Ended Three Months Ended
Sept. 30, Sept. 25, Sept. 30, Sept. 25,
2000 1999 2000 1999
(unaudited) (unaudited)
Net Sales $1,355,151 $1,534,523 $300,706 $331,801
Cost of Goods
Sold and
Occupancy 1,010,106 1,187,722 226,521 249,816
----------- ----------- --------- ----------
Gross Profit 345,045 346,801 74,185 81,985
Selling, General and
Administrative
Expenses 303,112 289,379 81,063 81,127
Other Charges 27,156 2,708 27,156 2,708
------------ ---------- ---------- ------------
Income (loss)
from Operations 14,777 54,714 (34,034) (1,850)
Interest
Expense - Net 22,551 12,087 5,505 3,631
Other Income
(expense) 1,176 1,106 (94) (437)
--------- ------------ --------- ------------
Income (loss)
before Income
Taxes (6,598) 43,733 (39,633) (5,918)
Income Taxes 5,215 19,243 (9,325) (1,610)
-------- ------------- -------------- ----------
Net Income
(loss) $ (11,813) $ 24,490 $ (30,308) $ (4,308)
============ ============ ============== =============
Net income (loss)
per Common
Share Outstanding
Basic $ (0.63) $ 0.90 $ (1.63) $ ( 0.19)
============= ============ ============= =============
Diluted $ (0.63) $ 0.89 $ (1.63) $ ( 0.19)
============= ============ ============== =============
Weighted Average
Shares Outstanding
Basic 18,786 27,328 18,543 22,372
Diluted 18,786 27,437 18,543 22,372
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(in thousands)
September 30, September 25,
2000 1999
Assets
Current Assets:
Cash $ 5,685 $ 8,017
Accounts Receivable 151,190 149,411
Inventories 242,617 316,094
Other Current Assets 20,658 11,254
------------ -------------
Total Current Assets 420,150 484,776
Property and Equipment - Net 111,740 94,179
Other Assets 415,528 376,875
------------ -------------
Total Assets $ 947,418 $ 955,830
=========== ==========
Liabilities & Shareholders' Equity
Current Liabilities:
Notes Payable $ 129,239 $ 95,883
Accounts Payable 121,705 188,113
Other Current Liabilities 48,078 31,152
----------- -----------
Total Current Liabilities 299,022 315,148
Long-Term Debt 148,242 123,898
Other Long-Term Liabilities 36,207 21,057
Shareholders' Equity 463,947 495,727
----------- -----------
Total Liabilities &
Shareholders' Equity $ 947,418 $ 955,830
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