Central Garden & Pet releases 2Q financial results; Central named master/agent distributor in U.S. for all Solaris Ortho, Roundup and GreenSweep Lawn and Garden products; Moves to September Fiscal year.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)--July 24, 1995--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 to the lawn and garden industry and a major supplier of pet and pool supplies, today announced financial results for the second quarter and six months ended June June: see month. 25, 1995. The company also announced that it reached an agreement with The Solaris A multitasking, multiprocessing operating system from Sun that runs on SPARC and x86-based computers. In 2005, Sun made Solaris free and open source. Known for its robustness and scalability, Solaris provides an enterprise-wide Unix environment that can manage thousands of nodes from one Group to become the master agent/distributor for Solaris products nationwide and has changed its fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. , effective Sept. 24, 1995. 2Q Financial Results Revenues for the 1995 second quarter were $153.8 million, compared with $157.1 million in 1994 second quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter was $5.9 million, compared with $10.0 million in the 1994 second quarter. Net earnings were $1.8 million, or $.31 per share, down from $5.2 million or $.89 per share in the 1994 second quarter. The decline is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk principally to exceptionally bad spring weather in many areas of the country served by Central. Revenues for the first six months of 1995 were $271.8 million, up from $267.2 million for the first half of 1994. Six month operating income was $9.5 million, down from $14.7 million reported in first half of 1994. The company reported net income of $2.6 million for the first half of 1995 compared with net income of $7.0 million in the same year-ago period. Solaris Agreement In conjunction with the release of earnings, Central also announced an agreement with The Solaris Group, a strategic business unit of Monsanto The Monsanto Company (NYSE: MON) is a multinational agricultural biotechnology corporation. It is the world's leading producer of the herbicide glyphosate, marketed as "Roundup". and maker of Ortho, Roundup and GreenSweep lawn & garden products, to become the master agent/distributor for Solaris products nationwide. Under the four-year agreement, Central will establish a nationwide network of sub-distributors carrying Solaris products, and provide a wide range of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. to Solaris retailers including logistics, order processing and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. , inventory distribution and merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. . Most of Solaris' existing distributors will become sub-distributors to Central. At current sales levels, the Solaris agreement would likely be to result in approximately $100 million in additional annual revenues for Central. Central also announced that Solaris will invest $900,000 in Central in exchange for which it will receive preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into 100,000 shares of Central Common Stock. In addition, Solaris will receive warrants exercisable at $9.00 per share to purchase additional 500,000 shares of Central Common Stock. Change In Fiscal Year Central also announced that it is moving to a fiscal year ending on the last Sunday Sunday: see Sabbath; week. in September September: see month. to reflect better the normal lawn and garden sales cycle and the new agreement with Solaris. "Today's announcements are the culmination of an intensive effort to strengthen the relationship between Central and Solaris, to get Central back on track and to chart a mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" future course for both Central and Solaris," 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. , Central's chairman and chief executive officer. "I am pleased that this agreement will allow us to to work as a true partner with Solaris and confident that both companies will prosper together by delivering on our promise to retailers of better service and increased sales of lawn and garden products." Central Garden & Pet Company is a leading distributor of lawn and garden supply products, as well as a major distributor of pet and pool supplies. -0-
Central Garden & Pet Co.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share)
Quarter Ended
June 25, June 26,
1995 1994
Net sales $153,844 $157,086 Cost of goods sold and occupancy 131,891 131,671 Gross profit 21,953 25,415 Selling, general and administrative 16,084 15,385 Income from operations 5,869 10,030 Interest expense - net (2,146) (1,189) Other Income (Expense) (433) (116) Income before income taxes 3,290 8,725 Income taxes 1,446 3,497 Net income $1,844 $5,228 Net Income Per Share $ 0.31 $ 0.89 Average Shares Outstanding 5,880 5,904
Six Months Ended
June 25, June 26,
1995 1994
Net sales $271,769 $267,173 Cost of goods sold and occupancy 231,455 224,008 Gross profit 40,314 43,165 Selling, general and administrative 30,856 28,484 Income from operations 9,458 14,681 Interest expense - net (4,095) (2,596) Other Income (Expense) (765) (426) Income before income taxes 4,598 11,659 Income taxes 2,007 4,679 Net income $2,591 $6,980 Net Income Per Share $ 0.44 $ 1.18 Average Shares Outstanding 5,850 5,912 -0-
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
Dec. 25, June 25,
1994 1995
(unaudited)
Assets
Cash $ 172 $ 1,935 Accounts receivable 36,722 71,902 Inventories 106,740 82,740 Other current assets 6,024 6,908 Current assets 149,658 163,485 Property and equipment - net 10,234 11,477 Other assets 14,061 13,648 Total assets $173,953 $188,610 Liabilities & Shareholders' Equity Notes payable $ 43,183 $ 16,660 Accounts payable 74,152 110,623 Other current liabilities 11,320 15,366 Current liabilities 128,655 142,649 Long-term liabilities 7,019 5,038 Other long-term obligations 1,903 1,953 Shareholders' equity 36,376 38,970 Total liabilities & shareholders' equity $173,953 $188,610 -0- CONTACT: Central Garden & Pet Co., Lafayette William E. Brown, 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 Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Verbinnen/Dan Connolly Con·nol·ly , Maureen Catherine Known as "Little Mo." 1934-1969. American tennis player who was the first to win the grand slam of U.S., British, French, and Australian women's championships (1953). Noun 1. , 212/687-8080 |
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