EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: | Paul Warburg | |
Central Garden & Pet | ||
925.299.7495 |
CENTRAL GARDEN & PET REPORTS THIRD QUARTER
RESULTS FOR FISCAL 2004
· EPS Increased 16.7% Year To Date
· Pet Products Segment Solid
LAFAYETTE, CALIFORNIA, August 5, 2004 –Central Garden & Pet Company (NASDAQ: CENT) today announced its financial results for the fiscal third quarter of 2004, ended June 26, 2004.
Net sales for the third quarter of fiscal 2004 were $374.4 million, an 8.5% increase from $345.1 million in the comparable fiscal 2003 period. The Company recorded net income for the quarter of $17.9 million, a 4.1% increase when compared to net income of $17.2 million in the comparable year ago period. Diluted earnings per share was $0.86, the same as the comparable year-ago period. Depreciation and amortization for the quarter was $4.7 million, compared to $4.5 million in the year-ago period.
Net sales for the first nine months of fiscal 2004 were $955.8 million, a 7.7% increase from $887.6 million in the comparable fiscal 2003 period. The Company recorded net income for the first nine months of $36.1 million, a 20.3% increase when compared to the comparable period a year ago. Diluted earnings per share was $1.74, a 16.8% increase when compared to the year-ago period. Depreciation and amortization for the first nine months of the fiscal year was $13.6 million, compared to $13.3 million in the year-ago period.
“Our branded products strategy, driven by innovation and acquisition, continues to gain momentum despite very soft grass seed sales in the quarter,” commented Glenn Novotny, President and Chief Executive Officer of Central Garden and Pet. “We plan to continue to grow
our businesses with high quality products and leverage our strategic distribution network to grow our customer base, increase sales and expand margins.”
Mr. Novotny concluded, “The demographic trends in both the garden and pet industries remain promising. Central’s emphasis on quality products and innovation; shelf position and distribution capabilities; and strong financial position should enable us to continue to benefit from this momentum.”
Central is reaffirming its fiscal 2004 full-year guidance of sales of $1.25 billion and $1.92-$1.96 per fully diluted share.
The Company will discuss its fiscal third quarter 2004 results on an earnings conference call today at 4:30 p.m. Eastern Time. Individuals may access the call by dialing 1-800-237-9752 and passcode 307 75 668 (domestic) or 617-847-8706 and passcode 307 75 668 (international). The earnings conference call will be simultaneously broadcast over the Internet 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 any necessary audio software.
Re-play dial-in numbers for the call will be available for three weeks: 1-888-286-8010 and passcode 744 10 293 (domestic) and 617-801-6888 and passcode 744 10 293 (international).
Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products for the pet and lawn and garden supplies markets. Our pet products include pet bird and small animal food, aquarium products, flea, tick, mosquito and other pest control products, edible bones, cages, carriers, pet books, and other dog, cat, reptile and small animal products. These products are sold under a number of brand names, including Kaytee, All-Glass Aquarium, Oceanic, Kent Marine, Zodiac, Pre-Strike, Altosid, Nylabone, TFH, Four Paws and Interpet. Our lawn and garden products include grass seed, wild bird food, weed and insect control products, decorative outdoor patio products and ant control products. These products are sold under a number of brand names, including Pennington, Norcal Pottery, New England Pottery, GKI/Bethlehem Lighting, Lilly Miller, Matthews Four Seasons, AMDRO and Grant’s. 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” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, including future earnings
guidance, are forward-looking statements 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 litigation between the Company and Herbert Axelrod. Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
# # #
(Tables follow)
Central Garden & Pet Company
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
June 26, 2004 | June 28, 2003 | June 26, 2004 | June 28, 2003 | |||||||||||||
Net Sales | $ | 374,431 | $ | 345,115 | $ | 955,766 | $ | 887,560 | ||||||||
Cost of Goods Sold and Occupancy | 256,506 | 242,908 | 663,744 | 625,045 | ||||||||||||
Gross Profit | 117,925 | 102,207 | 292,022 | 262,515 | ||||||||||||
Selling, General and Administrative Expenses | 86,183 | 69,628 | 222,363 | 199,798 | ||||||||||||
Income from Operations | 31,742 | 32,579 | 69,659 | 62,717 | ||||||||||||
Interest Expense | (4,959 | ) | (5,495 | ) | (13,523 | ) | (14,679 | ) | ||||||||
Interest Income | 89 | 69 | 411 | 139 | ||||||||||||
Other Income | 1,665 | 1,563 | 1,935 | 1,893 | ||||||||||||
Income Before Income Taxes | 28,537 | 28,716 | 58,482 | 50,070 | ||||||||||||
Income Taxes | 10,596 | 11,486 | 22,342 | 20,028 | ||||||||||||
Net Income | $ | 17,941 | $ | 17,230 | $ | 36,140 | $ | 30,042 | ||||||||
Earnings Per Common Share: | ||||||||||||||||
Basic | $ | 0.89 | $ | 0.89 | $ | 1.81 | $ | 1.56 | ||||||||
Diluted | $ | 0.86 | $ | 0.86 | $ | 1.74 | $ | 1.49 | ||||||||
Weighted Average Shares Outstanding | ||||||||||||||||
Basic | 20,086 | 19,357 | 19,968 | 19,217 | ||||||||||||
Diluted | 20,974 | 20,137 | 20,753 | 21,794 |
Central Garden & Pet Company
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 26, 2004 | June 28, 2003 | September 27, 2003 | |||||||
Assets | |||||||||
Current Assets: | |||||||||
Cash and Equivalents | $ | 18,211 | $ | 75,594 | $ | 77,604 | |||
Restricted Investments | 15,307 | — | — | ||||||
Accounts Receivable | 187,360 | 169,263 | 146,075 | ||||||
Inventories | 242,972 | 212,233 | 217,156 | ||||||
Other Current Assets | 10,235 | 11,602 | 15,222 | ||||||
Total Current Assets | 474,085 | 468,692 | 456,057 | ||||||
Property & Equipment – Net | 101,760 | 99,841 | 101,538 | ||||||
Goodwill | 310,560 | 222,780 | 222,780 | ||||||
Other Assets | 56,423 | 53,664 | 48,723 | ||||||
Total | $ | 942,828 | $ | 844,977 | $ | 829,098 | |||
Liabilities & Shareholders’ Equity | |||||||||
Current Liabilities: | |||||||||
Accounts Payable | $ | 106,241 | $ | 105,901 | $ | 105,103 | |||
Accrued Expenses | 75,403 | 60,244 | 47,061 | ||||||
Current Portion of Long-Term Debt | 1,026 | 12,821 | 1,028 | ||||||
Total Current Liabilities | 182,670 | 178,966 | 153,192 | ||||||
Long-Term Debt | 288,450 | 249,225 | 249,225 | ||||||
Other Long-Term Obligations | 1,564 | 2,293 | 1,585 | ||||||
Shareholders’ Equity | 470,144 | 414,493 | 425,096 | ||||||
Total | $ | 942,828 | $ | 844,977 | $ | 829,098 | |||