Q2 fiscal 2022 net sales increased 2% to $954 million
Q2 fiscal 2022 diluted GAAP EPS of $1.27
Maintains outlook for fiscal 2022 diluted GAAP EPS of $3.10 or better
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the garden and pet industries, today announced financial results for its fiscal 2022 second quarter ended March 26, 2022.
“Central delivered another solid quarter thanks to strong execution by our team in this challenging inflationary environment,” said Tim Cofer, CEO of Central Garden & Pet. “Despite the ongoing headwinds, we grew sales and operating income, and importantly, expanded gross margin, and remain on track to deliver our fiscal 2022 financial targets. We continue to make purposeful investments to drive profitable long-term growth.”
Fiscal 2022 Second Quarter Financial Results
Net sales increased 2% to $954 million compared to $935 million a year ago, driven by recent acquisitions, which contributed $52 million to the quarter. Organic net sales decreased 3.5% compared to the prior year quarter.
Gross margin was 30.1%, an increase of 100 basis points compared to a year ago, driven primarily by pricing as well as favorable product mix and productivity improvements, partially offset by cost inflation in commodities, freight and labor.
Operating income increased 2% to $107 million from $105 million a year ago. Operating margin of 11.2% was in line with the prior year despite continued inflation and heightened investment spending.
Net interest expense was $15 million compared to $10 million a year ago primarily due to higher debt outstanding.
The Company's net income was $70 million, a decrease of 4% from $73 million a year ago. Diluted GAAP earnings per share for the quarter was $1.27, a decrease of $0.05 compared to the prior year quarter. Adjusted EBITDA increased 2% to $131 million from $129 million a year ago.
The Company’s effective tax rate was 23.4% compared to 22.7% in the prior year quarter.
Garden Segment Fiscal 2022 Second Quarter Results
Net sales for the Garden segment increased 3% to $457 million driven by contributions from recent acquisitions offsetting a decline in organic sales of 9%. Organic strength in wild bird was more than offset by declines in chemicals & fertilizer, garden distribution, controls and grass seed, driven by unfavorable weather causing a late start to the garden season. On a two-year compound annualized growth rate basis, organic Garden segment sales increased 17% in the second quarter.
Garden segment operating income increased 7% to $71 million driven by the strong performance of recent acquisitions. Operating margin grew 50 basis points to 15.4%, mainly driven by contributions from recent acquisitions and improved pricing, partially offset by inflationary pressures and heightened investment spending. Garden segment adjusted EBITDA increased 5% to $78 million from $75 million in the prior year quarter.
Pet Segment Fiscal 2022 Second Quarter Results
Net sales for the Pet segment increased 1% to $498 million, with notable contributions from the Company's dog and cat, outdoor cushions, professional and pet distribution businesses, offset by softness in pet beds.
Pet segment operating income decreased 2% to $61 million, and operating margin declined 40 basis points to 12.2%. Pet segment adjusted EBITDA decreased 1% to $70 million from $71 million a year ago, largely driven by inflationary headwinds and heightened investment spending, partially offset by improved pricing and favorable product mix.
Additional Information
The Company's cash balance at the end of the quarter was $54 million compared to $40 million a year ago. Cash used by operations during the quarter was $180 million compared to $84 million a year ago. The increase in cash used by operations was due primarily to changes in working capital, predominantly an increase in inventory resulting from an intentional build-up in inventory due to increased demand for the Company's products amid the continuing global supply chain issues, as well as increased input costs.
Total debt as of March 26, 2022 was $1.2 billion compared to $1 billion at March 27, 2021. The Company's leverage ratio(1) at the end of the second quarter was 2.9x compared to 2.5x at the end of the prior year quarter. The Company repurchased approximately 227 thousand shares or $9.4 million of its stock during the quarter.
Fiscal 2022 Guidance
The Company continues to expect fiscal 2022 GAAP EPS to be $3.10 or better. The outlook takes into account increasing costs for commodities and freight, exacerbated by the current geopolitical environment, labor, a return to more normalized consumer demand patterns following extraordinary demand spanning two fiscal years and resuming more historical levels of promotional activity. This guidance further includes anticipated pricing actions across the Company's portfolio as well as investments in capacity expansion, brand building, consumer insights, innovation and eCommerce to drive sustainable growth. This outlook does not include the impact of acquisitions that may close during fiscal 2022.
Conference Call
The Company's senior management will host a conference call today at 4:30 p.m. Eastern Time | 1:30 p.m. Pacific Time to discuss the Company's second quarter fiscal 2022 results. The conference call and related materials can be accessed at http://ir.central.com.
Alternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international).
(1) Calculated using adjusted EBITDA as per the Company’s credit agreement, filed with the SEC on December 21, 2021.
About Central Garden & Pet
Central Garden & Pet (NASDAQ: CENT) (NASDAQ: CENTA) understands that home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With fiscal 2021 net sales of $3.3 billion, Central is on a mission to lead the future of the pet and garden industries. The Company’s innovative and trusted products are dedicated to helping lawns grow greener, gardens bloom bigger, pets live healthier and communities grow stronger. Central is home to a leading portfolio of more than 65 high-quality brands including Pennington, Nylabone, Kaytee, Amdro and Aqueon, strong manufacturing and distribution capabilities and a passionate, entrepreneurial growth culture. Central Garden & Pet is based in Walnut Creek, California and has over 7,000 employees across North America and Europe. For additional information about Central, please visit www.central.com.
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, including expectations for increased levels of investment to drive capacity expansion, brand building and eCommerce, increases in labor and freight cost as well as key commodities, the accretive expectations for recent acquisitions, a return to more normalized consumer demand patterns, in addition to resuming more normal levels of travel and promotional activity and their impact on future growth, and earnings guidance for fiscal 2022, 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. All forward-looking statements are based upon the Company’s current expectations and various assumptions. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release including, but not limited to, the following factors:
These risks and others are described in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise. The Company has not filed its Form 10-Q for the fiscal quarter ended March 26, 2022, so all financial results are preliminary and subject to change.
CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts, unaudited) |
|||||||||||
ASSETS |
March 26, 2022 |
|
March 27, 2021 |
|
September 25, 2021 |
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
54,082 |
|
|
$ |
39,869 |
|
|
$ |
426,422 |
|
Restricted cash |
|
12,676 |
|
|
|
12,612 |
|
|
|
13,100 |
|
Accounts receivable (less allowances of $28,234, $29,784 and $29,219) |
|
619,629 |
|
|
|
636,466 |
|
|
|
385,384 |
|
Inventories, net |
|
888,051 |
|
|
|
672,901 |
|
|
|
685,237 |
|
Prepaid expenses and other |
|
49,449 |
|
|
|
45,339 |
|
|
|
33,514 |
|
Total current assets |
|
1,623,887 |
|
|
|
1,407,187 |
|
|
|
1,543,657 |
|
Plant, property and equipment, net |
|
384,940 |
|
|
|
295,769 |
|
|
|
328,571 |
|
Goodwill |
|
511,973 |
|
|
|
289,955 |
|
|
|
369,391 |
|
Other intangible assets, net |
|
499,251 |
|
|
|
128,229 |
|
|
|
134,431 |
|
Operating lease right-of-use assets |
|
204,148 |
|
|
|
135,552 |
|
|
|
165,602 |
|
Other assets |
|
125,059 |
|
|
|
590,410 |
|
|
|
575,028 |
|
Total |
$ |
3,349,258 |
|
|
$ |
2,847,102 |
|
|
$ |
3,116,680 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable |
$ |
297,194 |
|
|
$ |
278,969 |
|
|
$ |
245,542 |
|
Accrued expenses |
|
228,412 |
|
|
|
217,117 |
|
|
|
234,965 |
|
Current lease liabilities |
|
44,765 |
|
|
|
40,586 |
|
|
|
40,731 |
|
Current portion of long-term debt |
|
378 |
|
|
|
91 |
|
|
|
1,081 |
|
Total current liabilities |
|
570,749 |
|
|
|
536,763 |
|
|
|
522,319 |
|
|
|
|
|
|
|
||||||
Long-term debt |
|
1,185,456 |
|
|
|
978,887 |
|
|
|
1,184,683 |
|
Long-term lease liabilities |
|
165,446 |
|
|
|
99,840 |
|
|
|
130,125 |
|
Deferred income taxes and other long-term obligations |
|
133,274 |
|
|
|
70,033 |
|
|
|
56,012 |
|
|
|
|
|
|
|
||||||
Equity: |
|
|
|
|
|
||||||
Common stock, $0.01 par value: 11,335,658, 11,336,358 and 11,335,658 shares outstanding at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
113 |
|
|
|
113 |
|
|
|
113 |
|
Class A common stock, $0.01 par value: 42,228,533, 42,643,315 and 42,282,922 shares outstanding at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
422 |
|
|
|
427 |
|
|
|
423 |
|
Class B stock, $0.01 par value: 1,612,374, 1,612,374 and 1,612,374 at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
16 |
|
|
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
580,555 |
|
|
|
572,815 |
|
|
|
576,446 |
|
Retained earnings |
|
712,683 |
|
|
|
589,348 |
|
|
|
646,082 |
|
Accumulated other comprehensive loss |
|
(703 |
) |
|
|
(2,153 |
) |
|
|
(831 |
) |
Total Central Garden & Pet Company shareholders’ equity |
|
1,293,086 |
|
|
|
1,160,566 |
|
|
|
1,222,249 |
|
Noncontrolling interest |
|
1,247 |
|
|
|
1,013 |
|
|
|
1,292 |
|
Total equity |
|
1,294,333 |
|
|
|
1,161,579 |
|
|
|
1,223,541 |
|
Total |
$ |
3,349,258 |
|
|
$ |
2,847,102 |
|
|
$ |
3,116,680 |
|
CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
March 26, 2022 |
|
March 27, 2021 |
|
March 26, 2022 |
|
March 27, 2021 |
||||||||
Net sales |
$ |
954,370 |
|
|
$ |
935,252 |
|
|
$ |
1,615,768 |
|
|
$ |
1,527,482 |
|
Cost of goods sold |
|
667,578 |
|
|
|
662,851 |
|
|
|
1,130,780 |
|
|
|
1,089,662 |
|
Gross profit |
|
286,792 |
|
|
|
272,401 |
|
|
|
484,988 |
|
|
|
437,820 |
|
Selling, general and administrative expenses |
|
179,947 |
|
|
|
167,791 |
|
|
|
351,929 |
|
|
|
306,170 |
|
Operating income |
|
106,845 |
|
|
|
104,610 |
|
|
|
133,059 |
|
|
|
131,650 |
|
Interest expense |
|
(14,729 |
) |
|
|
(10,222 |
) |
|
|
(29,211 |
) |
|
|
(31,197 |
) |
Interest income |
|
27 |
|
|
|
71 |
|
|
|
101 |
|
|
|
277 |
|
Other income (expense) |
|
(369 |
) |
|
|
704 |
|
|
|
(578 |
) |
|
|
1,456 |
|
Income before income taxes and noncontrolling interest |
|
91,774 |
|
|
|
95,163 |
|
|
|
103,371 |
|
|
|
102,186 |
|
Income tax expense |
|
21,488 |
|
|
|
21,564 |
|
|
|
23,889 |
|
|
|
22,945 |
|
Income including noncontrolling interest |
|
70,286 |
|
|
|
73,599 |
|
|
|
79,482 |
|
|
|
79,241 |
|
Net income attributable to noncontrolling interest |
|
573 |
|
|
|
645 |
|
|
|
760 |
|
|
|
674 |
|
Net income attributable to Central Garden & Pet Company |
$ |
69,713 |
|
|
$ |
72,954 |
|
|
$ |
78,722 |
|
|
$ |
78,567 |
|
Net income per share attributable to Central Garden & Pet Company: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.30 |
|
|
$ |
1.35 |
|
|
$ |
1.47 |
|
|
$ |
1.46 |
|
Diluted |
$ |
1.27 |
|
|
$ |
1.32 |
|
|
$ |
1.44 |
|
|
$ |
1.43 |
|
Weighted average shares used in the computation of net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
53,458 |
|
|
|
53,851 |
|
|
|
53,475 |
|
|
|
53,805 |
|
Diluted |
|
54,722 |
|
|
|
55,156 |
|
|
|
54,818 |
|
|
|
54,930 |
|
CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
|||||||
|
Six Months Ended |
||||||
|
March 26, 2022 |
|
March 27, 2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
79,482 |
|
|
$ |
79,241 |
|
Adjustments to reconcile net income to net cash used by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
38,449 |
|
|
|
31,769 |
|
Amortization of deferred financing costs |
|
1,316 |
|
|
|
952 |
|
Non-cash lease expense |
|
23,532 |
|
|
|
19,120 |
|
Stock-based compensation |
|
11,479 |
|
|
|
10,394 |
|
Debt extinguishment costs |
|
169 |
|
|
|
8,577 |
|
Loss on sale of business |
|
— |
|
|
|
2,611 |
|
Deferred income taxes |
|
77,416 |
|
|
|
4,196 |
|
Gain on sale of property and equipment |
|
(69 |
) |
|
|
(662 |
) |
Other |
|
(55 |
) |
|
|
221 |
|
Change in assets and liabilities (excluding businesses acquired): |
|
|
|
||||
Accounts receivable |
|
(234,146 |
) |
|
|
(191,332 |
) |
Inventories |
|
(202,996 |
) |
|
|
(131,887 |
) |
Prepaid expenses and other assets |
|
(84,983 |
) |
|
|
8,585 |
|
Accounts payable |
|
51,195 |
|
|
|
62,393 |
|
Accrued expenses |
|
(10,038 |
) |
|
|
(6,119 |
) |
Other long-term obligations |
|
(64 |
) |
|
|
371 |
|
Operating lease liabilities |
|
(22,768 |
) |
|
|
(18,606 |
) |
Net cash used by operating activities |
|
(272,081 |
) |
|
|
(120,176 |
) |
Cash flows from investing activities: |
|
|
|
||||
Additions to plant, property and equipment |
|
(75,419 |
) |
|
|
(33,647 |
) |
Payments to acquire companies, net of cash acquired |
|
— |
|
|
|
(733,692 |
) |
Proceeds from the sale of business |
|
— |
|
|
|
2,400 |
|
Investments |
|
(1,918 |
) |
|
|
— |
|
Other investing activities |
|
100 |
|
|
|
(473 |
) |
Net cash used in investing activities |
|
(77,237 |
) |
|
|
(765,412 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of long-term debt |
|
(889 |
) |
|
|
(400,048 |
) |
Proceeds from issuance of long-term debt |
|
— |
|
|
|
500,000 |
|
Borrowings under revolving line of credit |
|
— |
|
|
|
830,000 |
|
Repayments under revolving line of credit |
|
— |
|
|
|
(640,000 |
) |
Premium paid on extinguishment of debt |
|
— |
|
|
|
(6,124 |
) |
Repurchase of common stock, including shares surrendered for tax withholding |
|
(18,752 |
) |
|
|
(4,454 |
) |
Payment of contingent consideration liability |
|
(125 |
) |
|
|
(157 |
) |
Distribution to noncontrolling interest |
|
(806 |
) |
|
|
(532 |
) |
Payment of financing costs |
|
(2,442 |
) |
|
|
(8,235 |
) |
Net cash (used) provided by financing activities |
|
(23,014 |
) |
|
|
270,450 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(432 |
) |
|
|
1,222 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(372,764 |
) |
|
|
(613,916 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
439,522 |
|
|
|
666,397 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
66,758 |
|
|
$ |
52,481 |
|
Supplemental information: |
|
|
|
||||
Cash paid for interest |
$ |
29,042 |
|
|
$ |
21,857 |
|
Cash paid for taxes |
$ |
24,603 |
|
|
$ |
37,837 |
|
New operating lease right of use assets |
$ |
62,251 |
|
|
$ |
38,667 |
|
Use of Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, adjusted EBITDA and organic sales. Management believes these non-GAAP financial measures that exclude the impact of specific items (described below) may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods.
Adjusted EBITDA is defined by us as income before income tax, net other expense, net interest expense, depreciation and amortization and stock-based compensation (or operating income plus depreciation and amortization and stock-based compensation expense). We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplemental measure in evaluating the cash flows and performance of our business and provides greater transparency into our results of operations. Adjusted EBITDA is used by our management to perform such evaluation. Adjusted EBITDA should not be considered in isolation or as a substitute for cash flow from operations, income from operations or other income statement measures prepared in accordance with GAAP. We believe that adjusted EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present adjusted EBITDA when reporting their results. Other companies may calculate adjusted EBITDA differently and it may not be comparable.
We have also provided organic net sales, a non-GAAP measure that excludes the impact of businesses purchased or exited in the prior 12 months, because we believe it permits investors to better understand the performance of our historical business without the impact of recent acquisitions or dispositions.
The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below. We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability and limited visibility of the excluded items. We believe that the non-GAAP financial measures provide useful information to investors and other users of our financial statements by allowing for greater transparency in the review of our financial and operating performance. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our performance, and we believe these measures similarly may be useful to investors in evaluating our financial and operating performance and the trends in our business from management's point of view. While our management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.
Non-GAAP financial measures reflect adjustments based on the following items:
From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.
The non-GAAP adjustments reflect the following:
|
|
GAAP to Non-GAAP Reconciliation |
|||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||
Net Income and Diluted Net Income Per Share Reconciliation |
|
March 26, 2022 |
|
March 27, 2021 |
|
March 26, 2022 |
|
March 27, 2021 |
|||||
|
|
(in thousands, except per share amounts) |
|||||||||||
GAAP net income attributable to Central Garden & Pet Company |
|
$ |
69,713 |
|
$ |
72,954 |
|
$ |
78,722 |
|
$ |
78,567 |
|
Incremental expenses from note redemption and issuance |
(1) |
|
— |
|
|
— |
|
|
— |
|
|
9,952 |
|
Loss on sale of business |
(2) |
|
— |
|
|
— |
|
|
— |
|
|
2,611 |
|
Tax effect of incremental expenses, loss on sale and impairment |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,821 |
) |
Non-GAAP net income attributable to Central Garden & Pet Company |
|
$ |
69,713 |
|
$ |
72,954 |
|
$ |
78,722 |
|
$ |
88,309 |
|
GAAP diluted net income per share |
|
$ |
1.27 |
|
$ |
1.32 |
|
$ |
1.44 |
|
$ |
1.43 |
|
Non-GAAP diluted net income per share |
|
$ |
1.27 |
|
$ |
1.32 |
|
$ |
1.44 |
|
$ |
1.61 |
|
Shares used in GAAP and non-GAAP diluted net earnings per share calculation |
|
|
54,722 |
|
|
55,156 |
|
|
54,818 |
|
|
54,930 |
|
Organic Net Sales Reconciliation
We have provided organic net sales, a non-GAAP measure that excludes the impact of recent acquisitions and dispositions, because we believe it permits investors to better understand the performance of our historical business. We define organic net sales as net sales from our historical business derived by excluding the net sales from businesses acquired or exited in the preceding 12 months. After an acquired business has been part of our consolidated results for 12 months, the change in net sales thereafter is considered part of the increase or decrease in organic net sales.
Consolidated |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
954.4 |
|
|
$ |
51.8 |
|
$ |
902.6 |
|
|
$ |
1,615.8 |
|
|
$ |
121.8 |
|
$ |
1,494.0 |
|
Q2 FY 21 |
|
|
935.3 |
|
|
|
— |
|
|
935.3 |
|
|
|
1,527.5 |
|
|
$ |
3.9 |
|
|
1,523.6 |
|
$ increase (decrease) |
|
$ |
19.1 |
|
|
|
|
$ |
(32.7 |
) |
|
$ |
88.3 |
|
|
|
|
$ |
(29.6 |
) |
||
% increase (decrease) |
|
|
2.0 |
% |
|
|
|
|
(3.5 |
) % |
|
|
5.8 |
% |
|
|
|
|
(1.9 |
) % |
Pet |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
497.7 |
|
|
$ |
— |
|
$ |
497.7 |
|
|
$ |
933.7 |
|
|
$ |
— |
|
$ |
933.7 |
|
Q2 FY 21 |
|
|
492.0 |
|
|
|
— |
|
|
492.0 |
|
|
|
928.4 |
|
|
$ |
3.9 |
|
|
924.5 |
|
$ increase |
|
$ |
5.7 |
|
|
$ |
— |
|
$ |
5.7 |
|
|
$ |
5.3 |
|
|
|
|
$ |
9.2 |
|
|
% increase |
|
|
1.2 |
% |
|
|
|
|
1.2 |
% |
|
|
0.6 |
% |
|
|
|
|
1.0 |
% |
Garden |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
456.7 |
|
|
$ |
51.8 |
|
$ |
404.9 |
|
|
$ |
682.1 |
|
|
$ |
121.8 |
|
$ |
560.3 |
|
Q2 FY 21 |
|
|
443.3 |
|
|
|
— |
|
|
443.3 |
|
|
|
599.1 |
|
|
$ |
— |
|
|
599.1 |
|
$ increase (decrease) |
|
$ |
13.4 |
|
|
|
|
$ |
(38.4 |
) |
|
$ |
83.0 |
|
|
|
|
$ |
(38.8 |
) |
||
% increase (decrease) |
|
|
3.0 |
% |
|
|
|
|
(8.7 |
) % |
|
|
13.9 |
% |
|
|
|
|
(6.5 |
) % |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Three Months Ended March 26, 2022 |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
69,713 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
14,702 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
369 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
21,488 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
573 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
37,132 |
Income (loss) from operations |
|
$ |
70,511 |
|
$ |
60,645 |
|
$ |
(24,311 |
) |
|
$ |
106,845 |
Depreciation & amortization |
|
|
7,719 |
|
|
9,539 |
|
|
989 |
|
|
|
18,247 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
6,292 |
|
|
|
6,292 |
Adjusted EBITDA |
|
$ |
78,230 |
|
$ |
70,184 |
|
$ |
(17,030 |
) |
|
$ |
131,384 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Three Months Ended March 27, 2021 |
||||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
||||||
|
|
(in thousands) |
||||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
72,954 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
10,151 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(704 |
) |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
21,564 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
645 |
|
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
31,656 |
|
Income (loss) from operations |
|
$ |
65,962 |
|
$ |
62,058 |
|
$ |
(23,410 |
) |
|
$ |
104,610 |
|
Depreciation & amortization |
|
|
8,804 |
|
|
8,882 |
|
|
1,168 |
|
|
|
18,854 |
|
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
5,725 |
|
|
|
5,725 |
|
Adjusted EBITDA |
|
$ |
74,766 |
|
$ |
70,940 |
|
$ |
(16,517 |
) |
|
$ |
129,189 |
|
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Six Months Ended March 26, 2022 |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
78,722 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
29,110 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
578 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
23,889 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
760 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
54,337 |
Income (loss) from operations |
|
$ |
76,568 |
|
$ |
105,896 |
|
$ |
(49,405 |
) |
|
$ |
133,059 |
Depreciation & amortization |
|
|
17,339 |
|
|
19,088 |
|
|
2,022 |
|
|
|
38,449 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
11,479 |
|
|
|
11,479 |
Adjusted EBITDA |
|
$ |
93,907 |
|
$ |
124,984 |
|
$ |
(35,904 |
) |
|
$ |
182,987 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Six Months Ended March 27, 2021 |
||||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
||||||
|
|
(in thousands) |
||||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
78,567 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
30,920 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(1,456 |
) |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
22,945 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
674 |
|
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
53,083 |
|
Income (loss) from operations |
|
$ |
70,613 |
|
$ |
105,583 |
|
$ |
(44,546 |
) |
|
$ |
131,650 |
|
Depreciation & amortization |
|
|
11,442 |
|
|
17,967 |
|
|
2,360 |
|
|
|
31,769 |
|
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
10,394 |
|
|
|
10,394 |
|
Adjusted EBITDA |
|
$ |
82,055 |
|
$ |
123,550 |
|
$ |
(31,792 |
) |
|
$ |
173,813 |
|
Чистые продажи во 2 квартале 2022 финансового года выросли на 2% до 954 миллионов долларов
Разводненная прибыль на акцию по GAAP за 2 квартал 2022 финансового года составила $1,27
Сохраняет прогноз на 2022 финансовый год на разводненную прибыль на акцию по GAAP в размере 3,10 доллара США или выше
УОЛНАТ-КРИК, Калифорния.--(BUSINESS WIRE)--Компания Central Garden & Pet (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), лидер рынка товаров для сада и домашних животных, сегодня объявила финансовые результаты за второй квартал 2022 финансового года, закончившийся 26 марта 2022 года.
“Central провела еще один солидный квартал благодаря сильной работе нашей команды в этой сложной инфляционной среде”, - сказал Тим Кофер, генеральный директор Central Garden & Pet. “Несмотря на продолжающиеся трудности, мы увеличили продажи и операционную прибыль, а также, что важно, увеличили валовую прибыль и остаемся на пути к достижению наших финансовых целей на 2022 финансовый год. Мы продолжаем целенаправленно инвестировать, чтобы обеспечить прибыльный долгосрочный рост”.
Финансовые результаты второго квартала 2022 финансового года
Чистые продажи выросли на 2% до 954 миллионов долларов по сравнению с 935 миллионами долларов год назад, что обусловлено недавними приобретениями, которые принесли 52 миллиона долларов в квартал. Чистые органические продажи снизились на 3,5% по сравнению с предыдущим кварталом.
Валовая прибыль составила 30,1%, увеличившись на 100 базисных пунктов по сравнению с прошлым годом, что обусловлено главным образом ценообразованием, а также благоприятным ассортиментом продукции и повышением производительности, частично компенсируемым ростом цен на товары, грузы и рабочую силу.
Операционная прибыль увеличилась на 2% до 107 миллионов долларов с 105 миллионов долларов год назад. Операционная маржа в размере 11,2% соответствовала уровню предыдущего года, несмотря на продолжающуюся инфляцию и увеличение инвестиционных расходов.
Чистые процентные расходы составили 15 миллионов долларов по сравнению с 10 миллионами долларов год назад, главным образом из-за более высокой непогашенной задолженности.
Чистая прибыль компании составила 70 миллионов долларов, что на 4% меньше, чем 73 миллиона долларов год назад. Разводненная прибыль на акцию по ОПБУ за квартал составила 1,27 доллара, что на 0,05 доллара меньше, чем в предыдущем квартале. Скорректированная EBITDA увеличилась на 2% до $131 млн с $129 млн год назад.
Эффективная налоговая ставка Компании составила 23,4% по сравнению с 22,7% в предыдущем квартале.
Результаты второго квартала Садового сегмента за 2022 финансовый год
Чистые продажи в садовом сегменте выросли на 3% до 457 миллионов долларов благодаря вкладам от недавних приобретений, компенсировавших снижение органических продаж на 9%. Органическая сила дикой птицы была более чем компенсирована снижением потребления химикатов и удобрений, распределения в саду, средств контроля и семян трав, вызванным неблагоприятной погодой, вызвавшей позднее начало садового сезона. На основе двухлетнего совокупного годового темпа роста продажи в сегменте органических садов выросли на 17% во втором квартале.
Операционная прибыль садового сегмента увеличилась на 7% до 71 миллиона долларов благодаря высоким показателям недавних приобретений. Операционная маржа выросла на 50 базисных пунктов до 15,4%, в основном за счет недавних приобретений и улучшения ценообразования, что частично компенсировалось инфляционным давлением и увеличением инвестиционных расходов. Скорректированная EBITDA садового сегмента увеличилась на 5% до 78 миллионов долларов с 75 миллионов долларов в предыдущем квартале.
Сегмент домашних животных Результаты второго квартала 2022 финансового года
Чистые продажи в сегменте домашних животных выросли на 1% до 498 миллионов долларов, при этом заметный вклад внесли компании, занимающиеся продажей товаров для собак и кошек, подушек для улицы, профессиональных товаров и товаров для домашних животных, что компенсировалось мягкостью кроватей для домашних животных.
Операционная прибыль сегмента ПЭТ снизилась на 2% до 61 млн долларов, а операционная маржа снизилась на 40 базисных пунктов до 12,2%. Скорректированная EBITDA сегмента домашних животных снизилась на 1% до 70 миллионов долларов с 71 миллиона долларов год назад, в основном из-за встречного инфляционного ветра и увеличения инвестиционных расходов, частично компенсированных улучшением цен и благоприятным ассортиментом продукции.
дополнительная информация
Остаток денежных средств Компании на конец квартала составил 54 миллиона долларов по сравнению с 40 миллионами долларов год назад. Денежные средства, использованные в ходе операций в течение квартала, составили 180 миллионов долларов по сравнению с 84 миллионами долларов год назад. Увеличение денежных средств, используемых в операционной деятельности, было обусловлено главным образом изменениями в оборотном капитале, главным образом увеличением запасов в результате преднамеренного увеличения запасов в связи с повышенным спросом на продукцию Компании на фоне сохраняющихся проблем с глобальной цепочкой поставок, а также увеличением затрат на ввод.
Общий долг по состоянию на 26 марта 2022 года составил 1,2 миллиарда долларов по сравнению с 1 миллиардом долларов на 27 марта 2021 года. Коэффициент левереджа Компании(1) на конец второго квартала составил 2,9 х по сравнению с 2,5 х на конец квартала предыдущего года. В течение квартала Компания выкупила около 227 тысяч акций, или 9,4 миллиона долларов своих акций.
Руководство на 2022 финансовый год
Компания по-прежнему ожидает, что прибыль на акцию по GAAP в 2022 финансовом году составит 3,10 доллара или выше. Прогноз учитывает растущие затраты на товары и перевозки, усугубляемые текущей геополитической обстановкой, рабочей силой, возвращением к более нормализованным моделям потребительского спроса после чрезвычайного спроса, охватывающего два финансовых года, и возобновлением более исторических уровней рекламной активности. Это руководство также включает ожидаемые ценовые действия по всему портфелю Компании, а также инвестиции в расширение производственных мощностей, создание бренда, анализ потребностей потребителей, инновации и электронную коммерцию для обеспечения устойчивого роста. Этот прогноз не учитывает влияние приобретений, которые могут быть завершены в течение 2022 финансового года.
Конференц-связь
Высшее руководство Компании проведет селекторное совещание сегодня в 4:30 вечера по Восточному времени | 1:30 вечера по тихоокеанскому времени, чтобы обсудить результаты Компании за второй квартал 2022 финансового года. С конференц-звонком и соответствующими материалами можно ознакомиться по адресу http://ir.central.com .
В качестве альтернативы, чтобы прослушать телефонный звонок, наберите (201) 689-8345 (внутренний и международный).
(1) Рассчитано с использованием скорректированной EBITDA в соответствии с кредитным соглашением Компании, поданным в SEC 21 декабря 2021 года.
Об Central Garden & Pet
Central Garden & Pet (NASDAQ: CENT) (NASDAQ: CENTA) понимает, что дом занимает центральное место в жизни, и с гордостью заботится о счастливых и здоровых домах уже более 40 лет. С чистыми продажами в 2021 финансовом году в размере 3,3 миллиарда долларов Central стремится возглавить будущее индустрии домашних животных и сада. Инновационные и надежные продукты компании предназначены для того, чтобы помочь газонам стать зеленее, садам цвести больше, домашним животным жить здоровее, а сообществам становиться сильнее. Central является домом для ведущего портфеля из более чем 65 высококачественных брендов, включая Pennington, Nylabone, Kaytee, Amdro и Aqueon, с мощными производственными и дистрибьюторскими возможностями и увлеченной культурой предпринимательского роста. Central Garden & Pet базируется в Уолнат-Крик, штат Калифорния, и насчитывает более 7000 сотрудников по всей Северной Америке и Европе. Для получения дополнительной информации о Central, пожалуйста, посетите www.central.com .
Заявление о безопасной гавани
Заявление “Безопасная гавань” в соответствии с Законом о реформе судебных разбирательств по частным ценным бумагам 1995 года: Заявления, содержащиеся в этом выпуске, которые не являются историческими фактами, включая ожидания увеличения объемов инвестиций для стимулирования расширения производственных мощностей, создания бренда и электронной коммерции, увеличения затрат на рабочую силу и перевозку, а также на ключевые товары, возрастающие ожидания в отношении недавние приобретения, возврат к более нормализованным моделям потребительского спроса, в дополнение к возобновлению более нормальных уровней поездок и рекламной деятельности и их влиянию на будущий рост, а также прогноз по доходам на 2022 финансовый год являются прогнозными заявлениями, которые подвержены рискам и неопределенностям, которые могут привести к тому, что фактические результаты будут существенно отличаться от ожидаемых изложено в прогнозных заявлениях или подразумевается ими. Все прогнозные заявления основаны на текущих ожиданиях Компании и различных предположениях. Существует ряд рисков и неопределенностей, которые могут привести к тому, что наши фактические результаты будут существенно отличаться от прогнозных заявлений, содержащихся в этом пресс-релизе, включая, но не ограничиваясь, следующие факторы:
Эти и другие риски описаны в документах Комиссии по ценным бумагам и биржам Компании. Компания не берет на себя никаких обязательств по публичному обновлению этих прогнозных заявлений для отражения новой информации, последующих событий или иным образом. Компания не подала свою форму 10-Q за финансовый квартал, закончившийся 26 марта 2022 года, поэтому все финансовые результаты являются предварительными и могут быть изменены.
CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts, unaudited) |
|||||||||||
ASSETS |
March 26, 2022 |
|
March 27, 2021 |
|
September 25, 2021 |
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
54,082 |
|
|
$ |
39,869 |
|
|
$ |
426,422 |
|
Restricted cash |
|
12,676 |
|
|
|
12,612 |
|
|
|
13,100 |
|
Accounts receivable (less allowances of $28,234, $29,784 and $29,219) |
|
619,629 |
|
|
|
636,466 |
|
|
|
385,384 |
|
Inventories, net |
|
888,051 |
|
|
|
672,901 |
|
|
|
685,237 |
|
Prepaid expenses and other |
|
49,449 |
|
|
|
45,339 |
|
|
|
33,514 |
|
Total current assets |
|
1,623,887 |
|
|
|
1,407,187 |
|
|
|
1,543,657 |
|
Plant, property and equipment, net |
|
384,940 |
|
|
|
295,769 |
|
|
|
328,571 |
|
Goodwill |
|
511,973 |
|
|
|
289,955 |
|
|
|
369,391 |
|
Other intangible assets, net |
|
499,251 |
|
|
|
128,229 |
|
|
|
134,431 |
|
Operating lease right-of-use assets |
|
204,148 |
|
|
|
135,552 |
|
|
|
165,602 |
|
Other assets |
|
125,059 |
|
|
|
590,410 |
|
|
|
575,028 |
|
Total |
$ |
3,349,258 |
|
|
$ |
2,847,102 |
|
|
$ |
3,116,680 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable |
$ |
297,194 |
|
|
$ |
278,969 |
|
|
$ |
245,542 |
|
Accrued expenses |
|
228,412 |
|
|
|
217,117 |
|
|
|
234,965 |
|
Current lease liabilities |
|
44,765 |
|
|
|
40,586 |
|
|
|
40,731 |
|
Current portion of long-term debt |
|
378 |
|
|
|
91 |
|
|
|
1,081 |
|
Total current liabilities |
|
570,749 |
|
|
|
536,763 |
|
|
|
522,319 |
|
|
|
|
|
|
|
||||||
Long-term debt |
|
1,185,456 |
|
|
|
978,887 |
|
|
|
1,184,683 |
|
Long-term lease liabilities |
|
165,446 |
|
|
|
99,840 |
|
|
|
130,125 |
|
Deferred income taxes and other long-term obligations |
|
133,274 |
|
|
|
70,033 |
|
|
|
56,012 |
|
|
|
|
|
|
|
||||||
Equity: |
|
|
|
|
|
||||||
Common stock, $0.01 par value: 11,335,658, 11,336,358 and 11,335,658 shares outstanding at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
113 |
|
|
|
113 |
|
|
|
113 |
|
Class A common stock, $0.01 par value: 42,228,533, 42,643,315 and 42,282,922 shares outstanding at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
422 |
|
|
|
427 |
|
|
|
423 |
|
Class B stock, $0.01 par value: 1,612,374, 1,612,374 and 1,612,374 at March 26, 2022, March 27, 2021 and September 25, 2021 |
|
16 |
|
|
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
580,555 |
|
|
|
572,815 |
|
|
|
576,446 |
|
Retained earnings |
|
712,683 |
|
|
|
589,348 |
|
|
|
646,082 |
|
Accumulated other comprehensive loss |
|
(703 |
) |
|
|
(2,153 |
) |
|
|
(831 |
) |
Total Central Garden & Pet Company shareholders’ equity |
|
1,293,086 |
|
|
|
1,160,566 |
|
|
|
1,222,249 |
|
Noncontrolling interest |
|
1,247 |
|
|
|
1,013 |
|
|
|
1,292 |
|
Total equity |
|
1,294,333 |
|
|
|
1,161,579 |
|
|
|
1,223,541 |
|
Total |
$ |
3,349,258 |
|
|
$ |
2,847,102 |
|
|
$ |
3,116,680 |
|
CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
March 26, 2022 |
|
March 27, 2021 |
|
March 26, 2022 |
|
March 27, 2021 |
||||||||
Net sales |
$ |
954,370 |
|
|
$ |
935,252 |
|
|
$ |
1,615,768 |
|
|
$ |
1,527,482 |
|
Cost of goods sold |
|
667,578 |
|
|
|
662,851 |
|
|
|
1,130,780 |
|
|
|
1,089,662 |
|
Gross profit |
|
286,792 |
|
|
|
272,401 |
|
|
|
484,988 |
|
|
|
437,820 |
|
Selling, general and administrative expenses |
|
179,947 |
|
|
|
167,791 |
|
|
|
351,929 |
|
|
|
306,170 |
|
Operating income |
|
106,845 |
|
|
|
104,610 |
|
|
|
133,059 |
|
|
|
131,650 |
|
Interest expense |
|
(14,729 |
) |
|
|
(10,222 |
) |
|
|
(29,211 |
) |
|
|
(31,197 |
) |
Interest income |
|
27 |
|
|
|
71 |
|
|
|
101 |
|
|
|
277 |
|
Other income (expense) |
|
(369 |
) |
|
|
704 |
|
|
|
(578 |
) |
|
|
1,456 |
|
Income before income taxes and noncontrolling interest |
|
91,774 |
|
|
|
95,163 |
|
|
|
103,371 |
|
|
|
102,186 |
|
Income tax expense |
|
21,488 |
|
|
|
21,564 |
|
|
|
23,889 |
|
|
|
22,945 |
|
Income including noncontrolling interest |
|
70,286 |
|
|
|
73,599 |
|
|
|
79,482 |
|
|
|
79,241 |
|
Net income attributable to noncontrolling interest |
|
573 |
|
|
|
645 |
|
|
|
760 |
|
|
|
674 |
|
Net income attributable to Central Garden & Pet Company |
$ |
69,713 |
|
|
$ |
72,954 |
|
|
$ |
78,722 |
|
|
$ |
78,567 |
|
Net income per share attributable to Central Garden & Pet Company: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.30 |
|
|
$ |
1.35 |
|
|
$ |
1.47 |
|
|
$ |
1.46 |
|
Diluted |
$ |
1.27 |
|
|
$ |
1.32 |
|
|
$ |
1.44 |
|
|
$ |
1.43 |
|
Weighted average shares used in the computation of net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
53,458 |
|
|
|
53,851 |
|
|
|
53,475 |
|
|
|
53,805 |
|
Diluted |
|
54,722 |
|
|
|
55,156 |
|
|
|
54,818 |
|
|
|
54,930 |
|
CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
|||||||
|
Six Months Ended |
||||||
|
March 26, 2022 |
|
March 27, 2021 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
79,482 |
|
|
$ |
79,241 |
|
Adjustments to reconcile net income to net cash used by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
38,449 |
|
|
|
31,769 |
|
Amortization of deferred financing costs |
|
1,316 |
|
|
|
952 |
|
Non-cash lease expense |
|
23,532 |
|
|
|
19,120 |
|
Stock-based compensation |
|
11,479 |
|
|
|
10,394 |
|
Debt extinguishment costs |
|
169 |
|
|
|
8,577 |
|
Loss on sale of business |
|
— |
|
|
|
2,611 |
|
Deferred income taxes |
|
77,416 |
|
|
|
4,196 |
|
Gain on sale of property and equipment |
|
(69 |
) |
|
|
(662 |
) |
Other |
|
(55 |
) |
|
|
221 |
|
Change in assets and liabilities (excluding businesses acquired): |
|
|
|
||||
Accounts receivable |
|
(234,146 |
) |
|
|
(191,332 |
) |
Inventories |
|
(202,996 |
) |
|
|
(131,887 |
) |
Prepaid expenses and other assets |
|
(84,983 |
) |
|
|
8,585 |
|
Accounts payable |
|
51,195 |
|
|
|
62,393 |
|
Accrued expenses |
|
(10,038 |
) |
|
|
(6,119 |
) |
Other long-term obligations |
|
(64 |
) |
|
|
371 |
|
Operating lease liabilities |
|
(22,768 |
) |
|
|
(18,606 |
) |
Net cash used by operating activities |
|
(272,081 |
) |
|
|
(120,176 |
) |
Cash flows from investing activities: |
|
|
|
||||
Additions to plant, property and equipment |
|
(75,419 |
) |
|
|
(33,647 |
) |
Payments to acquire companies, net of cash acquired |
|
— |
|
|
|
(733,692 |
) |
Proceeds from the sale of business |
|
— |
|
|
|
2,400 |
|
Investments |
|
(1,918 |
) |
|
|
— |
|
Other investing activities |
|
100 |
|
|
|
(473 |
) |
Net cash used in investing activities |
|
(77,237 |
) |
|
|
(765,412 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of long-term debt |
|
(889 |
) |
|
|
(400,048 |
) |
Proceeds from issuance of long-term debt |
|
— |
|
|
|
500,000 |
|
Borrowings under revolving line of credit |
|
— |
|
|
|
830,000 |
|
Repayments under revolving line of credit |
|
— |
|
|
|
(640,000 |
) |
Premium paid on extinguishment of debt |
|
— |
|
|
|
(6,124 |
) |
Repurchase of common stock, including shares surrendered for tax withholding |
|
(18,752 |
) |
|
|
(4,454 |
) |
Payment of contingent consideration liability |
|
(125 |
) |
|
|
(157 |
) |
Distribution to noncontrolling interest |
|
(806 |
) |
|
|
(532 |
) |
Payment of financing costs |
|
(2,442 |
) |
|
|
(8,235 |
) |
Net cash (used) provided by financing activities |
|
(23,014 |
) |
|
|
270,450 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(432 |
) |
|
|
1,222 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(372,764 |
) |
|
|
(613,916 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
439,522 |
|
|
|
666,397 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
66,758 |
|
|
$ |
52,481 |
|
Supplemental information: |
|
|
|
||||
Cash paid for interest |
$ |
29,042 |
|
|
$ |
21,857 |
|
Cash paid for taxes |
$ |
24,603 |
|
|
$ |
37,837 |
|
New operating lease right of use assets |
$ |
62,251 |
|
|
$ |
38,667 |
|
Использование финансовых показателей, не относящихся к ОПБУ
Мы сообщаем о наших финансовых результатах в соответствии с принципами бухгалтерского учета, общепринятыми в Соединенных Штатах (GAAP). Однако, чтобы дополнить финансовые результаты, подготовленные в соответствии с GAAP, мы используем финансовые показатели, отличные от GAAP, включая чистую прибыль, не соответствующую GAAP, и разводненную чистую прибыль на акцию, скорректированную EBITDA и органические продажи. Руководство считает, что эти финансовые показатели, не относящиеся к GAAP, которые исключают влияние конкретных статей (описанных ниже), могут быть полезны инвесторам при оценке наших текущих операционных показателей и обеспечить дополнительные значимые сравнения между текущими результатами и результатами за предыдущие операционные периоды.
Скорректированный показатель EBITDA определяется нами как доход до вычета налога на прибыль, чистые прочие расходы, чистые процентные расходы, износ и амортизация и компенсация на основе акций (или операционный доход плюс износ и амортизация и расходы на компенсацию на основе акций). Мы представляем скорректированный показатель EBITDA, поскольку считаем, что скорректированный показатель EBITDA является полезным дополнительным показателем при оценке денежных потоков и эффективности нашего бизнеса и обеспечивает большую прозрачность результатов нашей деятельности. Скорректированный показатель EBITDA используется нашим руководством для проведения такой оценки. Скорректированный показатель EBITDA не следует рассматривать отдельно или в качестве замены денежного потока от операций, доходов от операций или других показателей отчета о прибылях и убытках, подготовленных в соответствии с GAAP. Мы считаем, что скорректированный показатель EBITDA часто используется инвесторами, аналитиками по ценным бумагам и другими заинтересованными сторонами при оценке компаний, многие из которых представляют скорректированный показатель EBITDA при отчетности о своих результатах. Другие компании могут рассчитывать скорректированную EBITDA по-другому, и она может быть несопоставимой.
Мы также предоставили показатель органических чистых продаж, не относящийся к GAAP, который исключает влияние компаний, приобретенных или выбывших за предыдущие 12 месяцев, поскольку мы считаем, что это позволяет инвесторам лучше понять результаты нашего исторического бизнеса без влияния недавних приобретений или отчуждений.
Сверка этих показателей, не относящихся к ОПБУ, с наиболее непосредственно сопоставимыми финансовыми показателями, рассчитанными и представленными в соответствии с ОПБУ, показана в таблицах ниже. Мы не предоставили сверку руководящих показателей, не относящихся к GAAP, с соответствующими показателями GAAP на перспективной основе из-за потенциальной значительной изменчивости и ограниченной видимости исключенных статей. Мы считаем, что финансовые показатели, не относящиеся к GAAP, предоставляют полезную информацию инвесторам и другим пользователям нашей финансовой отчетности, обеспечивая большую прозрачность при анализе наших финансовых и операционных показателей. Руководство также использует эти финансовые показатели, не относящиеся к GAAP, при принятии финансовых, операционных и плановых решений, а также при оценке нашей деятельности, и мы считаем, что эти показатели также могут быть полезны инвесторам при оценке наших финансовых и операционных показателей и тенденций в нашем бизнесе с точки зрения руководства. Хотя наше руководство считает, что измерения, не относящиеся к GAAP, являются полезной дополнительной информацией, такие скорректированные результаты не предназначены для замены наших финансовых результатов по GAAP и должны рассматриваться в сочетании с этими результатами по GAAP.
Финансовые показатели, не относящиеся к ОПБУ, отражают корректировки, основанные на следующих статьях:
Время от времени в будущем могут появляться другие пункты, которые мы можем исключить, если считаем, что это соответствует цели предоставления полезной информации инвесторам и руководству.
Корректировки, не относящиеся к ОПБУ, отражают следующее:
|
|
GAAP to Non-GAAP Reconciliation |
|||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||
Net Income and Diluted Net Income Per Share Reconciliation |
|
March 26, 2022 |
|
March 27, 2021 |
|
March 26, 2022 |
|
March 27, 2021 |
|||||
|
|
(in thousands, except per share amounts) |
|||||||||||
GAAP net income attributable to Central Garden & Pet Company |
|
$ |
69,713 |
|
$ |
72,954 |
|
$ |
78,722 |
|
$ |
78,567 |
|
Incremental expenses from note redemption and issuance |
(1) |
|
— |
|
|
— |
|
|
— |
|
|
9,952 |
|
Loss on sale of business |
(2) |
|
— |
|
|
— |
|
|
— |
|
|
2,611 |
|
Tax effect of incremental expenses, loss on sale and impairment |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,821 |
) |
Non-GAAP net income attributable to Central Garden & Pet Company |
|
$ |
69,713 |
|
$ |
72,954 |
|
$ |
78,722 |
|
$ |
88,309 |
|
GAAP diluted net income per share |
|
$ |
1.27 |
|
$ |
1.32 |
|
$ |
1.44 |
|
$ |
1.43 |
|
Non-GAAP diluted net income per share |
|
$ |
1.27 |
|
$ |
1.32 |
|
$ |
1.44 |
|
$ |
1.61 |
|
Shares used in GAAP and non-GAAP diluted net earnings per share calculation |
|
|
54,722 |
|
|
55,156 |
|
|
54,818 |
|
|
54,930 |
|
Сверка Чистых Органических Продаж
Мы предоставили показатель чистых органических продаж, не относящийся к GAAP, который исключает влияние недавних приобретений и отчуждений, поскольку мы считаем, что это позволяет инвесторам лучше понять результаты нашего исторического бизнеса. Мы определяем органические чистые продажи как чистые продажи от нашего исторического бизнеса, полученные путем исключения чистых продаж от предприятий, приобретенных или прекращенных за предыдущие 12 месяцев. После того, как приобретенный бизнес был частью наших консолидированных результатов в течение 12 месяцев, последующее изменение чистых продаж считается частью увеличения или уменьшения органических чистых продаж.
Consolidated |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
954.4 |
|
|
$ |
51.8 |
|
$ |
902.6 |
|
|
$ |
1,615.8 |
|
|
$ |
121.8 |
|
$ |
1,494.0 |
|
Q2 FY 21 |
|
|
935.3 |
|
|
|
— |
|
|
935.3 |
|
|
|
1,527.5 |
|
|
$ |
3.9 |
|
|
1,523.6 |
|
$ increase (decrease) |
|
$ |
19.1 |
|
|
|
|
$ |
(32.7 |
) |
|
$ |
88.3 |
|
|
|
|
$ |
(29.6 |
) |
||
% increase (decrease) |
|
|
2.0 |
% |
|
|
|
|
(3.5 |
) % |
|
|
5.8 |
% |
|
|
|
|
(1.9 |
) % |
Pet |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
497.7 |
|
|
$ |
— |
|
$ |
497.7 |
|
|
$ |
933.7 |
|
|
$ |
— |
|
$ |
933.7 |
|
Q2 FY 21 |
|
|
492.0 |
|
|
|
— |
|
|
492.0 |
|
|
|
928.4 |
|
|
$ |
3.9 |
|
|
924.5 |
|
$ increase |
|
$ |
5.7 |
|
|
$ |
— |
|
$ |
5.7 |
|
|
$ |
5.3 |
|
|
|
|
$ |
9.2 |
|
|
% increase |
|
|
1.2 |
% |
|
|
|
|
1.2 |
% |
|
|
0.6 |
% |
|
|
|
|
1.0 |
% |
Garden |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended March 26, 2022 |
|
For the Six Months Ended March 26, 2022 |
||||||||||||||||||
|
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
|
Net sales (GAAP) |
|
Effect of acquisition & divestitures on increase in net sales |
|
Net sales organic |
||||||||||
|
|
(in millions) |
||||||||||||||||||||
Q2 FY 22 |
|
$ |
456.7 |
|
|
$ |
51.8 |
|
$ |
404.9 |
|
|
$ |
682.1 |
|
|
$ |
121.8 |
|
$ |
560.3 |
|
Q2 FY 21 |
|
|
443.3 |
|
|
|
— |
|
|
443.3 |
|
|
|
599.1 |
|
|
$ |
— |
|
|
599.1 |
|
$ increase (decrease) |
|
$ |
13.4 |
|
|
|
|
$ |
(38.4 |
) |
|
$ |
83.0 |
|
|
|
|
$ |
(38.8 |
) |
||
% increase (decrease) |
|
|
3.0 |
% |
|
|
|
|
(8.7 |
) % |
|
|
13.9 |
% |
|
|
|
|
(6.5 |
) % |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Three Months Ended March 26, 2022 |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
69,713 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
14,702 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
369 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
21,488 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
573 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
37,132 |
Income (loss) from operations |
|
$ |
70,511 |
|
$ |
60,645 |
|
$ |
(24,311 |
) |
|
$ |
106,845 |
Depreciation & amortization |
|
|
7,719 |
|
|
9,539 |
|
|
989 |
|
|
|
18,247 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
6,292 |
|
|
|
6,292 |
Adjusted EBITDA |
|
$ |
78,230 |
|
$ |
70,184 |
|
$ |
(17,030 |
) |
|
$ |
131,384 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Three Months Ended March 27, 2021 |
||||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
||||||
|
|
(in thousands) |
||||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
72,954 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
10,151 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(704 |
) |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
21,564 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
645 |
|
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
31,656 |
|
Income (loss) from operations |
|
$ |
65,962 |
|
$ |
62,058 |
|
$ |
(23,410 |
) |
|
$ |
104,610 |
|
Depreciation & amortization |
|
|
8,804 |
|
|
8,882 |
|
|
1,168 |
|
|
|
18,854 |
|
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
5,725 |
|
|
|
5,725 |
|
Adjusted EBITDA |
|
$ |
74,766 |
|
$ |
70,940 |
|
$ |
(16,517 |
) |
|
$ |
129,189 |
|
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Six Months Ended March 26, 2022 |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
78,722 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
29,110 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
578 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
23,889 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
760 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
54,337 |
Income (loss) from operations |
|
$ |
76,568 |
|
$ |
105,896 |
|
$ |
(49,405 |
) |
|
$ |
133,059 |
Depreciation & amortization |
|
|
17,339 |
|
|
19,088 |
|
|
2,022 |
|
|
|
38,449 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
11,479 |
|
|
|
11,479 |
Adjusted EBITDA |
|
$ |
93,907 |
|
$ |
124,984 |
|
$ |
(35,904 |
) |
|
$ |
182,987 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation For the Six Months Ended March 27, 2021 |
||||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
||||||
|
|
(in thousands) |
||||||||||||
Net income attributable to Central Garden & Pet Company |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
78,567 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
30,920 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(1,456 |
) |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
22,945 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
674 |
|
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
53,083 |
|
Income (loss) from operations |
|
$ |
70,613 |
|
$ |
105,583 |
|
$ |
(44,546 |
) |
|
$ |
131,650 |
|
Depreciation & amortization |
|
|
11,442 |
|
|
17,967 |
|
|
2,360 |
|
|
|
31,769 |
|
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
10,394 |
|
|
|
10,394 |
|
Adjusted EBITDA |
|
$ |
82,055 |
|
$ |
123,550 |
|
$ |
(31,792 |
) |
|
$ |
173,813 |
|