Central Garden & Pet announces 1994 fourth quarter and full year results - board of directors authorize repurchase of 500,000 shares of common stock.LAFAYETTE, Calif.--(BUSINESS WIRE)--March 22, 1995--Central Garden & Pet Co. (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 to the lawn and garden industry and a major supplier of pet and pool supplies, Wednesday reported a net loss for the fourth quarter of $3.0 million, or 51 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , and net income of $1.4 million, or 24 cents per share, for the full year ended Dec. 25, 1994. The company's board of directors also announced today that it has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to 500,000 shares of common stock over the next 12 months. Fourth Quarter Results 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 46% to $63.3 million from $43.3 million in the 1993 fourth quarter, primarily reflecting the acquisition of operations late in 1993 and the first half of 1994. The company recorded a net loss for the 1994 fourth quarter of $3.0 million, or 51 cents per share, vs. a loss for the 1993 fourth quarter of $1.8 million, or 30 cents per share. Due to the seasonality of the company's business, Central Garden & Pet typically generates income in the first half of the year and records losses in the third and fourth quarters. Full Year Results Full year net sales increased 26% to $421 million from $335 million in 1993. The sales increase of $86.7 million was attributable to operations acquired in the last quarter of 1993 and the first half of 1994, as well as a higher volume of agency sales. Net income for the year was $1.4 million, or 24 cents per share, vs. $4.0 million, or 83 cents per share, for 1993. As previously announced, the decline in 1994 net income compared with 1993 reflects reduced gross margins in the company's lawn and garden business resulting primarily from higher than expected direct sales by the company's largest supplier. A soft Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, economy, a less profitable sales mix sales mix See product mix. , and expenses related to the integration of acquisitions also adversely affected 1994 net income. In addition, earnings per share comparisons for 1993 and 1994 were adversely affected by a 24.2% increase in average shares outstanding due to the company's initial public offering in July 1993. "We continue to work hard to address the key issues that adversely impacted our earnings in 1994," said William Brown William Brown (or Browne) may refer to (some of whom were also called 'Bill'): Politicians
adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. as the actions we are taking begin to impact our performance and reduce our seasonal volatility. Although the first half of 1995 will be challenging, we believe Central's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. prospects are promising," said Brown. He continued: "As the country's largest distributor of lawn and garden and pet supplies, with nationwide capability, Central is well positioned to benefit from continued growth and consolidation in lawn and garden distribution, and from rapid growth in the pet supply business. Because Central continues to lead the trend toward consolidation in the fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. distribution business, we believe we can achieve attractive long-term growth and deliver value to our shareholders." Commenting on the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. , Brown said, "The Board believes Central's common shares are undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. ." -0-
Central Garden & Pet Co.
Consolidated Statements of Income
(Dollars in thousands, except per share)
Year Ended Three Months Ended
(Unaudited)
Dec. 25, Dec. 26, Dec. 25, Dec. 26,
1994 1993 1994 1993
Net sales $421,427 $334,682 $63,289 $43,270 Cost of goods sold and occupancy 354,096 278,746 53,482 35,059 Gross profit 67,331 55,936 9,807 8,211 Selling, general and administrative 58,489 44,702 13,109 10,297 Income (loss) from operations 8,842 11,234 (3,302) (2,086) Interest expense - net(5,642) (3,751) (1,481) (716) Other expense (859) (852) (272) (157) Income (loss) before income taxes 2,341 6,631 (5,055) (2,959) Income taxes (credit) 936 2,637 (2,029) (1,208) Net income (loss) $1,405 $3,994 $(3,026) $(1,751) Net income (loss) per share $0.24 $0.83 $(0.51) $(0.30) Weighted average shares outstanding 5,947 4,789 5,945 5,911
Central Garden & Pet Co.
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
Dec. 25, Dec. 26,
1994 1993
Assets Current Assets: Cash $ 172 $ 182 Accounts receivable 36,722 29,702 Inventories 106,740 90,311 Prepaid expenses and other assets 6,024 3,765 Total current assets 149,658 123,960 Land, buildings, improvements and equipment - net 10,234 9,531 Other assets 14,061 10,257 Total assets $173,953 $143,748 Liabilities & Shareholders' Equity Current Liabilities: Notes payable $ 43,183 $ 30,283 Accounts payable 74,152 58,799 Other current liabilities 11,320 8,159 Total current liabilities 128,655 97,241 Long-term debt 7,019 8,804 Other long-term obligations 1,903 2,344 Shareholders' equity 36,376 35,359 Total liabilities & shareholders' equity $173,953 $143,748 -0- CONTACT: Central Garden & Pet Co., Lafayette 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. , 510/283-4573 or Sard Verbinnen & Co., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Paul Verbinnen/David Reno, 212/687-8080 |
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