Central Garden & Pet Announces Q2 Fiscal 2024 Financial Results

Rhea-AI Summary

Central Garden & Pet (NASDAQ: CENTA) announced its fiscal 2024 second-quarter financial results with net sales of $900 million, a decrease of 1% from a year ago. The GAAP EPS was $0.93 compared to $0.72, and non-GAAP EPS was $0.99. The company maintained its outlook for fiscal 2024 non-GAAP EPS of $2.00 or better. The Pet segment saw a 1% increase in net sales, while the Garden segment experienced a 3% decrease. Operating income and margin improved across segments, with a focus on the Cost and Simplicity program. The company's cash balance increased to $301 million, and total debt stood at $1.2 billion.

Positive

• Improvement in gross profit and margin in both segments, driven by Cost and Simplicity program initiatives.

• Significant increase in net income and earnings per share compared to the prior year.

• Reduction in total debt and leverage ratio, indicating a strengthened financial position.

Negative

• Overall decrease in net sales for the quarter compared to the previous year, impacting organic net sales.

• Decrease in net sales for the Garden segment, mainly due to the sale of the independent garden channel distribution business.

• Modest carryover pricing actions to combat inflationary pressures may affect profit margins in the future.

Fiscal 2024 Q2 net sales of $900 million compared to $909 million a year ago

Fiscal 2024 Q2 GAAP EPS of $0.93 vs. $0.72 a year ago, Non-GAAP EPS of $0.99

Maintains outlook for fiscal 2024 non-GAAP EPS of $2.00 or better ($2.50 or better before the February 2024 stock dividend)

WALNUT CREEK, Calif.--(BUSINESS WIRE)-- Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the Pet and Garden industries, today announced financial results for its fiscal 2024 second quarter ended March 30, 2024.

“We delivered a solid second quarter with earnings per share well ahead of prior year. We are particularly pleased with the progress on our Cost and Simplicity program,” said Beth Springer, Interim CEO of Central Garden & Pet. “With a large part of the garden season still in front of us and some continuing external challenges, we are maintaining our outlook for the fiscal year. Importantly, our teams remain focused on executing our long-term strategy.”

Fiscal 2024 Second Quarter Financial Results

Net sales were $900 million compared to $909 million a year ago, a decrease of 1%. Organic net sales also decreased 1%.

Gross profit was $279 million compared to $260 million in the prior year. Non-GAAP gross profit was $281 million. Gross margin increased 240 basis points to 31.0% compared to 28.6%. Non-GAAP gross margin was 31.3%. Both segments benefited from prior year projects made under Central's Cost and Simplicity program including the sale of the independent garden channel distribution business and exit of some private label pet bed product lines, as well as moderating inflation.

Operating income was $93 million compared to $78 million a year ago, an increase of 20%. On a non-GAAP basis, operating income was $99 million. Operating margin increased 180 basis points to 10.4% compared to 8.6%. On a non-GAAP basis, operating margin was 11.0%. The increase was driven by improved gross margin.

Net interest expense was $11 million compared to $15 million a year ago driven by higher interest income from higher cash balances and higher interest rates.

Net income was $62 million compared to $48 million a year ago, an increase of 29%. On a non-GAAP basis, net income was $66 million. Earnings per share were $0.93 compared to $0.72, an increase of $0.21. On a non-GAAP basis, earnings per share were $0.99. Adjusted EBITDA was $124 million compared to $107 million a year ago.

The effective tax rate was 23.4% compared to 23.9% in the prior year.

Pet Segment Fiscal 2024 Second Quarter Results

Net sales for the Pet segment were $480 million compared to $475 million in the prior year, an increase of 1% driven by growth in Consumables businesses and the recent TDBBS acquisition. Organic net sales decreased 3% excluding the impact of TDBBS.

Pet segment operating income was $63 million compared to $55 million a year ago, an increase of 13%. Operating margin increased 140 basis points to 13.0% compared to 11.6% driven by improved gross margin. Pet segment adjusted EBITDA was $74 million compared to $66 million in the prior year.

Garden Segment Fiscal 2024 Second Quarter Results

Net sales for the Garden segment were $420 million compared to $434 million a year ago, a decrease of 3%. Organic net sales increased 2% excluding the impact of the sale of the independent garden channel distribution business. Growth in Live Plants, Grass Seed and Controls & Fertilizer more than offset lower sales in Wild Bird.

Garden segment operating income was $57 million compared to $50 million in the prior year, an increase of 15%. On a non-GAAP basis, operating income was $62 million. Operating margin increased 220 basis point to 13.6% compared to 11.4%. On a non-GAAP basis, operating margin was 14.8%. The increase was driven by improved gross margin. Garden segment adjusted EBITDA was $73 million compared to $60 million a year ago.

Liquidity and Debt

The cash balance at the end of the quarter was $301 million compared to $61 million a year ago, driven by a reduction in inventory due to converting inventory to cash over the last 12 months.

Cash used by operations during the quarter was $25 million compared to $34 million a year ago.

Total debt as of March 30, 2024, and March 25, 2023 was $1.2 billion. The leverage ratio, as defined in Central's credit agreement, at the end of the second quarter was 2.9x compared to 3.3x at the end of the prior year quarter.

Cost and Simplicity Program

Central continues to advance its multi-year Cost and Simplicity program consisting of a pipeline of projects across procurement, manufacturing, logistics, portfolio management and administrative costs to simplify its business and improve efficiency across the organization.

In the second quarter of fiscal 2024, Central initiated the closure of a manufacturing facility in Chico, CA, and began the Southeast consolidation of four distribution locations into one modern facility. As a result, Central incurred $5.3 million of one-time costs, including $2.5 million in cost of goods sold and $2.8 million in selling, general and administrative costs, the majority of which were non-cash.

Fiscal 2024 Guidance

Central continues to expect fiscal 2024 non-GAAP EPS to be $2.00 or better ($2.50 or better before the February 2024 stock dividend).

This outlook reflects uncertain consumer demand and retailer dynamics and an environment of macroeconomic and geopolitical volatility. It includes modest carryover pricing actions to help mitigate inflationary headwinds. This outlook excludes the impact of any acquisitions, divestitures or restructuring activities that may occur during fiscal 2024, including any projects under the Cost and Simplicity program and the recent TDBBS acquisition. Central expects fiscal 2024 capital spending to be approximately $70 million.

Conference Call

Central's senior management will hold a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its fiscal 2024 second quarter results and provide a general business update. 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) using confirmation #13744528.

About Central Garden & Pet

Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) understands home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With fiscal 2023 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 Amdro^®, Aqueon^®, Cadet^®, Farnam^®, Ferry-Morse^®, Four Paws^®, Kaytee^®, K&H^®, Nylabone^® and Pennington^®, strong manufacturing and distribution capabilities, and a passionate, entrepreneurial growth culture. Central is based in Walnut Creek, California, with 6,700 employees primarily across North America. Visit www.central.com to learn more.

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 statements concerning evolving consumer demand and unfavorable retailer dynamics, anticipated pricing actions, productivity initiatives and estimated capital spending, and earnings guidance for fiscal 2024, 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 Central'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:

• high inflation and interest rates, and other adverse macro-economic conditions;
• fluctuations in market prices for seeds and grains and other raw materials;
• our inability to pass through cost increases in a timely manner;
• our ability to recruit and retain new members of our management team and employees, including a Chief Executive Officer, to support our businesses;
• fluctuations in energy prices, fuel and related petrochemical costs;
• declines in consumer spending and increased inventory risk during economic downturns;
• reductions in demand for product categories that benefited from the COVID-19 pandemic;
• adverse weather conditions;
• the success of our Central to Home strategy and our Cost and Simplicity program;
• risks associated with our acquisition strategy, including our ability to successfully integrate acquisitions and the impact of purchase accounting on our financial results;
• material weaknesses relating to the internal controls of recently acquired companies;
• seasonality and fluctuations in our operating results and cash flow;
• supply shortages in pet birds, small animals and fish;
• dependence on a small number of customers for a significant portion of our business;
• consolidation trends in the retail industry;
• risks associated with new product introductions, including the risk that our new products will not produce sufficient sales to recoup our investment;
• competition in our industries;
• continuing implementation of an enterprise resource planning information technology system;
• potential environmental liabilities;
• risks associated with international sourcing;
• impacts of tariffs or a trade war;
• access to and cost of additional capital;
• potential goodwill or intangible asset impairment;
• our ability to remediate material weaknesses in our internal control over financial reporting;
• our dependence upon our key executives;
• our ability to protect our trademarks and other proprietary rights;
• litigation and product liability claims;
• regulatory issues;
• the impact of product recalls;
• potential costs and risks associated with actual or potential cyberattacks;
• potential dilution from issuance of authorized shares;
• the voting power associated with our Class B stock; and
• the impact of new accounting regulations and the possibility our effective tax rate will increase as a result of future changes in the corporate tax rate or other tax law changes.

These risks and others are described in Central’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. Central has not filed its Form 10-Q for the fiscal quarter ended March 30, 2024, 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)
	March 30, 2024				March 25, 2023				September 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	301,332			$	60,607			$	488,730
Restricted cash		14,197				13,475				14,143
Accounts receivable (less allowance for credit losses and customer allowances of $27,677, $28,283 and $25,797)		578,237				564,874				332,890
Inventories, net		914,352				966,900				838,188
Prepaid expenses and other		42,501				48,019				33,172
Total current assets		1,850,619				1,653,875				1,707,123
Plant, property and equipment, net		387,203				395,788				391,768
Goodwill		546,436				546,436				546,436
Other intangible assets, net		480,910				525,301				497,228
Operating lease right-of-use assets		170,849				174,435				173,540
Other assets		104,002				54,963				62,553
Total	$	3,540,019			$	3,350,798			$	3,378,648
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	237,310			$	225,311			$	190,902
Accrued expenses		267,813				201,286				216,241
Current lease liabilities		51,045				49,082				50,597
Current portion of long-term debt		322				270				247
Total current liabilities		556,490				475,949				457,987
Long-term debt		1,188,955				1,212,053				1,187,956
Long-term lease liabilities		134,723				135,695				135,621
Deferred income taxes and other long-term obligations		147,683				154,854				144,271
Equity:
Common stock, $0.01 par value: 11,077,612, 11,236,635 and 11,077,612 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023		111				112				111
Class A common stock, $0.01 par value: 54,659,683, 54,822,098 and 54,472,902 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023		547				548				544
Class B stock, $0.01 par value: 1,602,374 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023		16				16				16
Additional paid-in capital		592,136				587,243				594,282
Retained earnings		920,803				786,776				859,370
Accumulated other comprehensive loss		(2,825	)			(3,601	)			(2,970	)
Total Central Garden & Pet Company shareholders’ equity		1,510,788				1,371,094				1,451,353
Noncontrolling interest		1,379				1,153				1,460
Total equity		1,512,167				1,372,247				1,452,813
Total	$	3,540,018			$	3,350,798			$	3,378,648

CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
	Three Months Ended								Six Months Ended
	March 30, 2024				March 25, 2023				March 30, 2024				March 25, 2023
Net sales	$	900,090			$	909,004			$	1,534,623			$	1,536,667
Cost of goods sold		621,210				649,366				1,076,898				1,105,330
Gross profit		278,880				259,638				457,725				431,337
Selling, general and administrative expenses		185,433				181,597				355,866				352,890
Operating income		93,447				78,041				101,859				78,447
Interest expense		(14,376	)			(14,876	)			(28,692	)			(29,345	)
Interest income		2,903				186				7,512				879
Other (expense) income		(171	)			595				822				2,294
Income before income taxes and noncontrolling interest		81,803				63,946				81,501				52,275
Income tax expense		19,134				15,268				18,265				12,446
Income including noncontrolling interest		62,669				48,678				63,236				39,829
Net income attributable to noncontrolling interest		682				563				819				147
Net income attributable to Central Garden & Pet Company	$	61,987			$	48,115			$	62,417			$	39,682
Net income per share attributable to Central Garden & Pet Company:
Basic	$	0.94			$	0.73			$	0.95			$	0.61
Diluted	$	0.93			$	0.72			$	0.93			$	0.59
Weighted average shares used in the computation of net income per share:
Basic		65,638				65,554				65,526				65,576
Diluted		66,831				66,918				66,815				66,900

CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
	Six Months Ended
	March 30, 2024				March 25, 2023
Cash flows from operating activities:
Net income	$	63,236			$	39,829
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization		45,357				43,801
Amortization of deferred financing costs		1,340				1,349
Non-cash lease expense		25,753				25,369
Stock-based compensation		8,927				13,327
Deferred income taxes		2,673				7,486
Other operating activities		1,811				136
Change in assets and liabilities (excluding businesses acquired):
Accounts receivable		(240,408	)			(187,745	)
Inventories		(59,263	)			(27,152	)
Prepaid expenses and other assets		(7,492	)			(3,868	)
Accounts payable		41,475				15,421
Accrued expenses		46,785				(462	)
Other long-term obligations		673				(21	)
Operating lease liabilities		(25,169	)			(24,542	)
Net cash used by operating activities		(94,302	)			(97,072	)
Cash flows from investing activities:
Additions to plant, property and equipment		(19,478	)			(30,228	)
Payments to acquire companies, net of cash acquired		(59,818	)			—
Investments		(850	)			(500	)
Other investing activities		(140	)			(100	)
Net cash used in investing activities		(80,286	)			(30,828	)
Cash flows from financing activities:
Repayments of long-term debt		(159	)			(182	)
Borrowings under revolving line of credit		—				48,000
Repayments under revolving line of credit		—				(23,000	)
Repurchase of common stock, including shares surrendered for tax withholding		(12,055	)			(16,165	)
Payment of contingent consideration liability		(57	)			(12	)
Distribution to noncontrolling interest		(900	)			—
Net cash (used) provided by financing activities		(13,171	)			8,641
Effect of exchange rate changes on cash, cash equivalents and restricted cash		415				1,157
Net decrease in cash, cash equivalents and restricted cash		(187,344	)			(118,102	)
Cash, cash equivalents and restricted cash at beginning of period		502,873				192,184
Cash, cash equivalents and restricted cash at end of period	$	315,529			$	74,082
Supplemental information:
Cash paid for interest	$	28,695			$	29,343
Cash paid for income taxes	$	13,775			$	1,889
New operating lease right of use assets	$	24,652			$	13,776

Use of Non-GAAP Financial Measures

We report our financial results in accordance with 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, non-GAAP operating income, adjusted EBITDA and organic net sales. Management uses these non-GAAP financial measures that exclude the impact of specific items (described below) in making financial, operating and planning decisions and in evaluating our performance. Also, Management believes that these non-GAAP financial measures 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. While Management believes that non-GAAP measures 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.

Adjusted EBITDA is defined by us as income before income tax, net other expense, net interest expense and depreciation and amortization and stock-based compensation expense (or operating income plus depreciation and amortization expense and stock-based compensation expense). Adjusted EBITDA further excludes one-time charges related to facility closures. 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 evaluations. 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.

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.

Non-GAAP financial measures reflect adjustments based on the following items:

• Facility closures: we have excluded the impact of the closure of our garden controls manufacturing facility in Chico, California and the Southeast consolidation of our distribution facilities as they represent infrequent transactions that occur in limited circumstances that impact the comparability between operating periods. We believe the adjustment of closure and network optimization costs supplements the GAAP information with a measure that may be used to assess the sustainability of our operating performance.

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.

(1)

During the second quarter of fiscal 2024, we recognized incremental expense of $5.3 million in the consolidated statement of operations, from the closure of a manufacturing facility in Chico, California and the consolidation of our Southeast distribution network.

Net Income and Diluted Net Income Per Share Reconciliation		GAAP to Non-GAAP Reconciliation Three Months Ended								GAAP to Non-GAAP Reconciliation Six Months Ended
		March 30, 2024				March 25, 2023				March 30, 2024				March 25, 2023
		(in thousands, except per share amounts)
GAAP net income attributable to Central Garden & Pet Company		$	61,987			$	48,115			$	62,417			$	39,682
Facility closures	(1)		5,270				—				5,270				—
Tax effect of facility closures			(1,233	)			—				(1,233	)			—
Non-GAAP net income attributable to Central Garden & Pet Company		$	66,024			$	48,115			$	66,454			$	39,682
GAAP diluted net income per share		$	0.93			$	0.72			$	0.93			$	0.59
Non-GAAP diluted net income per share		$	0.99			$	0.72			$	0.99			$	0.59
Shares used in GAAP and non-GAAP diluted net earnings per share calculation			66,831				66,918				66,815				66,900

Operating Income Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 30, 2024										Six Months Ended March 30, 2024
		GAAP			Facility closures (1)			Non-GAAP				GAAP			Facility closures (1)			Non-GAAP
		(in thousands)
Net sales		$	900,090		$	—		$	900,090			$	1,534,623		$	—		$	1,534,623
Cost of goods sold and occupancy			621,210			2,527			618,683				1,076,898			2,527			1,074,371
Gross profit		$	278,880		$	(2,527	)	$	281,407			$	457,725		$	(2,527	)	$	460,252
Selling, general and administrative expenses			185,433			2,743			182,690				355,866			2,743			353,123
Income from operations		$	93,447		$	(5,270	)	$	98,717			$	101,859		$	(5,270	)	$	107,129

Garden Segment Operating Income Reconciliation		GAAP to Non-GAAP Reconciliation Three Months Ended								GAAP to Non-GAAP Reconciliation Six Months Ended
		March 30, 2024				March 25, 2023				March 30, 2024				March 25, 2023
		(in thousands)								(in thousands)
GAAP operating income		$	57,066			$	49,619			$	48,180			$	38,799
Facility closures	(1)		5,270				—				5,270				—
Non-GAAP operating income		$	62,336			$	49,619			$	53,450			$	38,799
GAAP operating margin			13.6	%			11.4	%			7.5	%			6.0	%
Non-GAAP operating margin			14.8	%			11.4	%			8.3	%			6.0	%

Organic Net Sales Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 30, 2024												Six Months Ended March 30, 2024
		Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic				Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic
		(in millions)
Q2 FY 24		$	900.1			$	19.3			$	880.8			$	1,534.6			$	32.5			$	1,502.1
Q2 FY 23			909.0				21.9				887.1				1,536.7				31.5				1,505.2
$ decrease		$	(8.9	)						$	(6.3	)		$	(2.1	)						$	(3.1	)
% decrease			(1.0	)%							(0.7	)%			(0.1	)%							(0.2	)%

Organic Pet Segment Net Sales Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 30, 2024												Six Months Ended March 30, 2024
		Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic				Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic
		(in millions)
Q2 FY 24		$	480.2			$	19.3			$	460.9			$	889.4			$	32.5			$	856.9
Q2 FY 23			475.2				—				475.2				891.0				—				891.0
$ increase (decrease)		$	5.0							$	(14.3	)		$	(1.6	)						$	(34.1	)
% increase (decrease)			1.1	%							(3.0	)%			(0.2	)%							(3.8	)%

Organic Garden Segment Net Sales Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 30, 2024												Six Months Ended March 30, 2024
		Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic				Net sales (GAAP)				Effect of acquisitions & divestitures on net sales				Net sales organic
		(in millions)
Q2 FY 24		$	419.9			$	—			$	419.9			$	645.2			$	—			$	645.2
Q2 FY 23			433.8				21.9				411.9				645.7				31.5				614.2
$ increase (decrease)		$	(13.9	)						$	8.0			$	(0.5	)						$	31.0
% increase (decrease)			(3.2	)%							1.9	%			(0.1	)%							5.0	%

Adjusted EBITDA Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 30, 2024
		Pet				Garden				Corporate				Total
		(in thousands)
Net income attributable to Central Garden & Pet Company		$	—			$	—			$	—			$	61,987
Interest expense, net			—				—				—				11,473
Other expense			—				—				—				171
Income tax expense			—				—				—				19,134
Net income attributable to noncontrolling interest			—				—				—				682
Income (loss) from operations		$	62,659			$	57,066			$	(26,278	)		$	93,447
Depreciation & amortization			11,124				11,014				674				22,812
Noncash stock-based compensation			—				—				2,907				2,907
Facility closures	(1)		—				5,270				—				5,270
Adjusted EBITDA		$	73,783			$	73,350			$	(22,697	)		$	124,436

Adjusted EBITDA Reconciliation		GAAP to Non-GAAP Reconciliation
		Three Months Ended March 25, 2023
		Pet				Garden				Corporate				Total
		(in thousands)
Net income attributable to Central Garden & Pet Company		$	—			$	—			$	—			$	48,115
Interest expense, net			—				—				—				14,690
Other income			—				—				—				(595	)
Income tax expense			—				—				—				15,268
Net income attributable to noncontrolling interest			—				—				—				563
Income (loss) from operations		$	55,255			$	49,619			$	(26,833	)		$	78,041
Depreciation & amortization			10,474				10,818				817				22,109
Noncash stock-based compensation			—				—				6,750				6,750
Adjusted EBITDA		$	65,729			$	60,437			$	(19,266	)		$	106,900

Adjusted EBITDA Reconciliation		GAAP to Non-GAAP Reconciliation
		Six Months Ended March 30, 2024
		Pet				Garden				Corporate				Total
		(in thousands)
Net income attributable to Central Garden & Pet Company		$	—			$	—			$	—			$	62,417
Interest expense, net			—				—				—				21,180
Other income			—				—				—				(822	)
Income tax expense			—				—				—				18,265
Net income attributable to noncontrolling interest			—				—				—				819
Income (loss) from operations		$	106,047			$	48,180			$	(52,368	)		$	101,859
Depreciation & amortization			21,922				22,020				1,415				45,357
Noncash stock-based compensation			—				—				8,927				8,927
Facility closures	(1)		—				5,270				—				5,270
Adjusted EBITDA		$	127,969			$	75,470			$	(42,026	)		$	161,413

Adjusted EBITDA Reconciliation		GAAP to Non-GAAP Reconciliation
		Six Months Ended March 25, 2023
		Pet				Garden				Corporate				Total
		(in thousands)
Net income attributable to Central Garden & Pet Company		$	—			$	—			$	—			$	39,682
Interest expense, net			—				—				—				28,466
Other income			—				—				—				(2,294	)
Income tax expense			—				—				—				12,446
Net income attributable to noncontrolling interest			—				—				—				147
Income (loss) from operations		$	94,810			$	38,799			$	(55,162	)		$	78,447
Depreciation & amortization			20,586				21,660				1,555				43,801
Noncash stock-based compensation			—				—				13,327				13,327
Adjusted EBITDA		$	115,396			$	60,459			$	(40,280	)		$	135,575

 

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Investor Relations Contact

Friederike Edelmann

VP, Investor Relations & Corporate Sustainability

(925) 412-6726

fedelmann@central.com

Source: Central Garden & Pet Company

FAQ

What were Central Garden & Pet's fiscal 2024 Q2 net sales?

Central Garden & Pet reported net sales of $900 million for the fiscal 2024 second quarter.

What was the fiscal 2024 Q2 GAAP EPS for Central Garden & Pet?

The GAAP EPS for Central Garden & Pet in the fiscal 2024 second quarter was $0.93.

What is the stock symbol for Central Garden & Pet?

Central Garden & Pet's stock symbol is CENTA.

What was Central Garden & Pet's fiscal 2024 Q2 non-GAAP EPS?

The non-GAAP EPS for Central Garden & Pet in the fiscal 2024 second quarter was $0.99.

What is Central Garden & Pet's outlook for fiscal 2024 non-GAAP EPS?

Central Garden & Pet expects its fiscal 2024 non-GAAP EPS to be $2.00 or better.