EX-99.1 3 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

    Contact:  

Andrew Tammen

Central Garden & Pet

(925) 283-4573

 

CENTRAL GARDEN & PET REPORTS FIRST QUARTER

RESULTS FOR FISCAL 2004

 

RAISES FISCAL 2004 EARNINGS GUIDANCE

TO $2.10-$2.20 PER DILUTED SHARE

A 21% TO 27% INCREASE OVER FISCAL 2003

 


 

LAFAYETTE, CALIFORNIA, February 5, 2004 – Central Garden & Pet Company (NASDAQ: CENT) today announced its financial results for the fiscal first quarter of 2004, ended December 27, 2003.

 

Net sales for the first quarter were $222.4 million, a 5% increase from $211.9 million in the comparable fiscal 2003 period. The Company recorded a net loss for the quarter of $645,000, or $0.03 per diluted share, compared with a net loss of $717,000, or $0.04 per diluted share, in the comparable year-ago period. Central typically reports a loss in the three-month period ending in December, which is the slowest time of the year for the garden industry.

 

Income from operations for the first fiscal quarter of 2004 improved 80% to $3.6 million from $2.0 million in the year-ago period. The improved results for the quarter were driven by continued sales growth of the Company’s branded products as well as lower administrative expenses. The improved operating results for the quarter were partially offset by higher interest costs. Depreciation and amortization for the most recent quarter totaled $4.6 million compared to $4.5 million in the fiscal 2003 quarter.

 

-more-


Central continues to anticipate substantial earnings growth in fiscal 2004. With the recent acquisition of Kent Marine and the pending acquisition of New England Pottery, Central is raising its fiscal 2004 net income guidance to $2.10-$2.20 per diluted share from the previously expected range of $2.00-$2.10 per diluted share, a 21% to 27% increase over fiscal 2003.

 

The Company will discuss its fiscal first quarter 2004 results, the Kent Marine and New England Pottery acquisitions, and its updated 2004 earnings guidance on an earnings conference call today at 4:30 p.m. EST. 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.

 

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 and Four Paws. 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, 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. 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

 
     December 27,
2003


    December 28,
2002


 

Net Sales

   $ 222,350     $ 211,936  

Cost of Goods Sold and Occupancy

     160,279       150,718  
    


 


Gross Profit

     62,071       61,218  

Selling, General and Administrative

                

Expenses

     58,511       59,254  
    


 


Income from Operations

     3,560       1,964  

Interest Expense

     (4,105 )     (2,843 )

Interest Income

     199       26  

Other Expense

     (715 )     (341 )
    


 


Loss Before Income Taxes

     (1,061 )     (1,194 )

Income Taxes

     (416 )     (477 )
    


 


Net Loss

   $ (645 )   $ (717 )
    


 


Basic and Diluted Loss Per Common Share

   $ (0.03 )   $ (0.04 )
    


 


Weighted Average Shares Outstanding

                

Basic

     19,877       19,060  

Diluted

     19,877       19,060  


Central Garden & Pet Company

 

Condensed Consolidated Balance Sheets

 

(Unaudited)

(In thousands)

 

    

December 27,

2003


  

December 28,

2002


  

September 27,

2003


Assets

                    

Current Assets:

                    

Cash & Cash Equivalents

   $ 65,265    $ 14,790    $ 77,604

Restricted Investments

     15,052      —        —  

Accounts Receivable

     113,839      105,843      146,075

Inventories

     243,911      224,889      217,156

Other Current Assets

     17,601      19,115      15,222
    

  

  

Total Current Assets

     455,668      364,637      456,057

Property & Equipment—Net

     101,873      99,060      101,538

Other Assets

     274,261      269,280      271,503
    

  

  

Total

   $ 831,802    $ 732,977    $ 829,098
    

  

  

Liabilities & Shareholders’ Equity

                    

Current Liabilities:

                    

Notes Payable

   $ —      $ 64,649    $ —  

Accounts Payable

     105,112      95,776      105,103

Accrued Expenses

     47,556      39,392      47,061

Current Portion of Long-Term Debt

     1,028      122,593      1,028
    

  

  

Total Current Liabilities

     153,696      322,410      153,192

Long-Term Liabilities

     249,782      29,592      249,225

Other Long-Term Obligations

     1,570      2,059      1,585

Shareholders’ Equity

     426,754      378,916      425,096
    

  

  

Total

   $ 831,802    $ 732,977    $ 829,098