Central Garden & Pet Announces Q3 Fiscal 2022 Results
Central Garden & Pet Company (NASDAQ: CENT, CENTA) reported Q3 fiscal 2022 net sales of $1,015 million, a 2% decrease year-over-year due to soft garden segment performance. Diluted GAAP EPS rose by $0.02 to $1.39, outpacing the previous year. Despite weather impacts, the garden segment's operating income increased by 13%, driven by acquisitions. However, pet segment operating income fell 12% amidst inflationary pressures. The company maintains its fiscal 2022 EPS guidance to be at or above last year, acknowledging rising costs and shifting consumer demand.
- Diluted GAAP EPS increased $0.02 to $1.39 compared to Q3 2021.
- Garden segment operating income rose 13% to $76 million, attributed to recent acquisitions.
- The company maintains fiscal 2022 GAAP EPS guidance at or above prior year.
- Net sales fell 2% to $1,015 million primarily due to weakness in the garden segment.
- Organic net sales decreased 5% compared to the previous year.
- Pet segment operating income declined 12% to $63 million amid inflationary pressures.
Q3 fiscal 2022 net sales of
Q3 fiscal 2022 diluted GAAP EPS of
Maintains outlook for fiscal 2022 diluted GAAP EPS at or above prior year
“In the face of a challenging environment, Central delivered third quarter EPS
Third Quarter Fiscal 2022 Financial Results
Net sales decreased
Gross margin of
Operating income of
Net interest expense was
The Company's net income was
The Company’s effective tax rate was
Garden Segment Third Quarter Fiscal 2022 Results
Net sales for the Garden segment decreased
Garden segment operating income increased
Pet Segment Third Quarter Fiscal 2022 Results
Net sales for the Pet segment of
Pet segment operating income decreased
Additional Information
The Company's cash balance at the end of the quarter was
Cash provided by operations during the quarter was
Total debt was
Fiscal 2022 Guidance
As indicated in our press release dated
Conference Call
The Company's senior management will host a conference call today at
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
About
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 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:
- rising inflation, a potential recession 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;
- fluctuations in energy prices, fuel and related petrochemical costs;
- declines in consumer spending and increased inventory risk during economic downturns;
- our ability to successfully manage the continuing impact of COVID-19 on our business, including but not limited to, the impact on our workforce, operations, fill rates, supply chain, demand for our products and services, and our financial results and condition;
- the potential for future reductions in demand for product categories that benefited from the COVID-19 pandemic, including the potential for reduced orders as retailers work through excess inventory;
- adverse weather conditions;
- the success of our Central to Home strategy;
- risks associated with our acquisition strategy, including our ability to successfully integrate acquisitions and the impact of purchase accounting on our financial results;
- supply chain delays and disruptions resulting in lost sales, reduced fill rates and service levels and delays in expanding capacity and automating processes;
- 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;
- risk 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 dependence upon our key executives;
- our ability to recruit and retain new members of our management team to support our growing businesses and to hire and retain employees;
- our inability 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 cyber attacks;
- 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 the Company’s
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts, unaudited) |
|||||||||||
ASSETS |
|
|
|
|
|
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
195,791 |
|
|
$ |
517,052 |
|
|
$ |
426,422 |
|
Restricted cash |
|
12,676 |
|
|
|
11,679 |
|
|
|
13,100 |
|
Accounts receivable (less allowances of |
|
505,896 |
|
|
|
494,432 |
|
|
|
385,384 |
|
Inventories, net |
|
882,522 |
|
|
|
626,635 |
|
|
|
685,237 |
|
Prepaid expenses and other |
|
36,359 |
|
|
|
32,955 |
|
|
|
33,514 |
|
Total current assets |
|
1,633,244 |
|
|
|
1,682,753 |
|
|
|
1,543,657 |
|
Plant, property and equipment, net |
|
390,326 |
|
|
|
306,229 |
|
|
|
328,571 |
|
|
|
511,973 |
|
|
|
289,955 |
|
|
|
369,391 |
|
Other intangible assets, net |
|
490,959 |
|
|
|
125,069 |
|
|
|
134,431 |
|
Operating lease right-of-use assets |
|
193,627 |
|
|
|
149,628 |
|
|
|
165,602 |
|
Other assets |
|
125,797 |
|
|
|
569,870 |
|
|
|
575,028 |
|
Total |
$ |
3,345,926 |
|
|
$ |
3,123,504 |
|
|
$ |
3,116,680 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Accounts payable |
$ |
241,093 |
|
|
$ |
237,050 |
|
|
$ |
245,542 |
|
Accrued expenses |
|
228,882 |
|
|
|
234,314 |
|
|
|
234,965 |
|
Current lease liabilities |
|
45,860 |
|
|
|
39,557 |
|
|
|
40,731 |
|
Current portion of long-term debt |
|
352 |
|
|
|
86 |
|
|
|
1,081 |
|
Total current liabilities |
|
516,187 |
|
|
|
511,007 |
|
|
|
522,319 |
|
|
|
|
|
|
|
||||||
Long-term debt |
|
1,185,842 |
|
|
|
1,183,591 |
|
|
|
1,184,683 |
|
Long-term lease liabilities |
|
155,002 |
|
|
|
115,178 |
|
|
|
130,125 |
|
Deferred income taxes and other long-term obligations |
|
136,490 |
|
|
|
71,783 |
|
|
|
56,012 |
|
|
|
|
|
|
|
||||||
Equity: |
|
|
|
|
|
||||||
Common stock, |
|
113 |
|
|
|
113 |
|
|
|
113 |
|
Class A common stock, |
|
417 |
|
|
|
427 |
|
|
|
423 |
|
Class B stock, |
|
16 |
|
|
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
581,060 |
|
|
|
576,104 |
|
|
|
576,446 |
|
Retained earnings |
|
771,341 |
|
|
|
665,534 |
|
|
|
646,082 |
|
Accumulated other comprehensive loss |
|
(1,924 |
) |
|
|
(1,831 |
) |
|
|
(831 |
) |
|
|
1,351,023 |
|
|
|
1,240,363 |
|
|
|
1,222,249 |
|
Noncontrolling interest |
|
1,382 |
|
|
|
1,582 |
|
|
|
1,292 |
|
Total equity |
|
1,352,405 |
|
|
|
1,241,945 |
|
|
|
1,223,541 |
|
Total |
$ |
3,345,926 |
|
|
$ |
3,123,504 |
|
|
$ |
3,116,680 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,015,378 |
|
|
$ |
1,037,075 |
|
|
$ |
2,631,146 |
|
|
$ |
2,564,557 |
|
Cost of goods sold |
|
707,752 |
|
|
|
716,765 |
|
|
|
1,838,532 |
|
|
|
1,806,427 |
|
Gross profit |
|
307,626 |
|
|
|
320,310 |
|
|
|
792,614 |
|
|
|
758,130 |
|
Selling, general and administrative expenses |
|
193,547 |
|
|
|
207,069 |
|
|
|
545,476 |
|
|
|
513,239 |
|
Operating income |
|
114,079 |
|
|
|
113,241 |
|
|
|
247,138 |
|
|
|
244,891 |
|
Interest expense |
|
(14,422 |
) |
|
|
(13,131 |
) |
|
|
(43,633 |
) |
|
|
(44,328 |
) |
Interest income |
|
87 |
|
|
|
45 |
|
|
|
188 |
|
|
|
322 |
|
Other (expense) income |
|
(759 |
) |
|
|
(1,086 |
) |
|
|
(1,337 |
) |
|
|
370 |
|
Income before income taxes and noncontrolling interest |
|
98,985 |
|
|
|
99,069 |
|
|
|
202,356 |
|
|
|
201,255 |
|
Income tax expense |
|
23,430 |
|
|
|
22,315 |
|
|
|
47,319 |
|
|
|
45,260 |
|
Income including noncontrolling interest |
|
75,555 |
|
|
|
76,754 |
|
|
|
155,037 |
|
|
|
155,995 |
|
Net income attributable to noncontrolling interest |
|
135 |
|
|
|
568 |
|
|
|
895 |
|
|
|
1,242 |
|
Net income attributable to |
$ |
75,420 |
|
|
$ |
76,186 |
|
|
$ |
154,142 |
|
|
$ |
154,753 |
|
Net income per share attributable to |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.42 |
|
|
$ |
1.41 |
|
|
$ |
2.89 |
|
|
$ |
2.87 |
|
Diluted |
$ |
1.39 |
|
|
$ |
1.37 |
|
|
$ |
2.82 |
|
|
$ |
2.80 |
|
Weighted average shares used in the computation of net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
53,237 |
|
|
|
53,976 |
|
|
|
53,392 |
|
|
|
53,882 |
|
Diluted |
|
54,329 |
|
|
|
55,658 |
|
|
|
54,658 |
|
|
|
55,236 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
155,037 |
|
|
$ |
155,995 |
|
Adjustments to reconcile net income to net cash (used) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
58,333 |
|
|
|
52,759 |
|
Amortization of deferred financing costs |
|
1,982 |
|
|
|
1,577 |
|
Non-cash lease expense |
|
36,042 |
|
|
|
29,914 |
|
Stock-based compensation |
|
18,879 |
|
|
|
17,040 |
|
Debt extinguishment costs |
|
169 |
|
|
|
8,577 |
|
Loss on sale of business |
|
— |
|
|
|
2,611 |
|
Deferred income taxes |
|
8,199 |
|
|
|
6,992 |
|
(Gain) loss on sale of property and equipment |
|
(53 |
) |
|
|
62 |
|
Other |
|
7 |
|
|
|
2,083 |
|
Change in assets and liabilities (excluding businesses acquired): |
|
|
|
||||
Accounts receivable |
|
(121,392 |
) |
|
|
(49,099 |
) |
Inventories |
|
(198,360 |
) |
|
|
(85,382 |
) |
Prepaid expenses and other assets |
|
1,383 |
|
|
|
33,571 |
|
Accounts payable |
|
(1,679 |
) |
|
|
21,862 |
|
Accrued expenses |
|
(7,072 |
) |
|
|
10,102 |
|
Other long-term obligations |
|
236 |
|
|
|
(640 |
) |
Operating lease liabilities |
|
(34,108 |
) |
|
|
(29,402 |
) |
Net cash (used) provided by operating activities |
|
(82,397 |
) |
|
|
178,622 |
|
Cash flows from investing activities: |
|
|
|
||||
Additions to plant, property and equipment |
|
(98,553 |
) |
|
|
(57,047 |
) |
Payments to acquire companies, net of cash acquired |
|
— |
|
|
|
(733,614 |
) |
Proceeds from the sale of business |
|
— |
|
|
|
2,400 |
|
Investments |
|
(2,318 |
) |
|
|
— |
|
Other investing activities |
|
40 |
|
|
|
(633 |
) |
Net cash used in investing activities |
|
(100,831 |
) |
|
|
(788,894 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of long-term debt |
|
(992 |
) |
|
|
(400,072 |
) |
Proceeds from issuance of long-term debt |
|
— |
|
|
|
900,000 |
|
Borrowings under revolving line of credit |
|
— |
|
|
|
858,000 |
|
Repayments under revolving line of credit |
|
— |
|
|
|
(858,000 |
) |
Premium paid on extinguishment of debt |
|
— |
|
|
|
(6,124 |
) |
Repurchase of common stock, including shares surrendered for tax withholding |
|
(41,834 |
) |
|
|
(7,811 |
) |
Payment of contingent consideration liability |
|
(196 |
) |
|
|
(254 |
) |
Distribution to noncontrolling interest |
|
(806 |
) |
|
|
(531 |
) |
Payment of financing costs |
|
(2,410 |
) |
|
|
(14,109 |
) |
Net cash (used) provided by financing activities |
|
(46,238 |
) |
|
|
471,099 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(1,589 |
) |
|
|
1,507 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(231,055 |
) |
|
|
(137,666 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
439,522 |
|
|
|
666,397 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
208,467 |
|
|
$ |
528,731 |
|
Supplemental information: |
|
|
|
||||
Cash paid for interest |
$ |
48,902 |
|
|
$ |
33,933 |
|
Cash paid for taxes |
$ |
31,406 |
|
|
$ |
52,162 |
|
New operating lease right of use assets |
$ |
64,504 |
|
|
$ |
63,503 |
|
Use of Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in
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:
- Incremental expenses from note redemption and issuance: we have excluded the impact of the incremental expenses incurred from the note redemption and issuance as they represent an infrequent transaction that occurs in limited circumstances that impacts the comparability between operating periods. We believe the adjustment of these expenses supplements the GAAP information with a measure that may be used to assess the sustainability of our operating performance.
- Loss on sale of business: we have excluded the impact of the loss on the sale of a business as it represents an infrequent transaction that occurs in limited circumstances that impacts the comparability between operating periods. We believe the adjustment of this loss 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.
The non-GAAP adjustments reflect the following:
|
|
|
GAAP to Non-GAAP Reconciliation |
||||||||||||
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||
Net Income and Diluted Net Income Per Share Reconciliation |
|
|
|
|
|
|
|
|
||||||
|
|
(in thousands, except per share amounts) |
||||||||||||
GAAP net income attributable to |
|
$ |
75,420 |
|
$ |
76,186 |
|
$ |
154,142 |
|
$ |
154,753 |
|
|
Incremental expenses from note redemption and issuance |
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
9,952 |
|
Loss on sale of business |
(2 |
) |
|
— |
|
|
— |
|
|
— |
|
|
2,611 |
|
Tax effect of incremental redemption expenses and loss on sale |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,825 |
) |
|
Non-GAAP net income attributable to |
|
$ |
75,420 |
|
$ |
76,186 |
|
$ |
154,142 |
|
$ |
164,491 |
|
|
GAAP diluted net income per share |
|
$ |
1.39 |
|
$ |
1.37 |
|
$ |
2.82 |
|
$ |
2.80 |
|
|
Non-GAAP diluted net income per share |
|
$ |
1.39 |
|
$ |
1.37 |
|
$ |
2.82 |
|
$ |
2.98 |
|
|
Shares used in GAAP and non-GAAP diluted net earnings per share calculation |
|
|
54,329 |
|
|
55,658 |
|
|
54,658 |
|
|
55,236 |
|
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 |
|
For the Nine Months Ended |
||||||||||||||||||
|
|
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) |
||||||||||||||||||||
Q3 FY 22 |
|
$ |
1,015.4 |
|
|
$ |
25.1 |
|
$ |
990.3 |
|
|
$ |
2,631.1 |
|
|
$ |
146.9 |
|
$ |
2,484.2 |
|
Q3 FY 21 |
|
|
1,037.1 |
|
|
|
— |
|
|
1,037.1 |
|
|
|
2,564.6 |
|
|
3.9 |
|
|
2,560.7 |
|
|
$ increase (decrease) |
|
$ |
(21.7 |
) |
|
|
|
$ |
(46.8 |
) |
|
$ |
66.5 |
|
|
|
|
$ |
(76.5 |
) |
||
% increase (decrease) |
|
|
(2.1 |
) % |
|
|
|
|
(4.5 |
) % |
|
|
2.6 |
% |
|
|
|
|
(3.0 |
) % |
Pet |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||
|
|
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) |
||||||||||||||||||||
Q3 FY 22 |
|
$ |
504.8 |
|
|
$ |
— |
|
$ |
504.8 |
|
|
$ |
1,438.4 |
|
|
$ |
— |
|
$ |
1,438.4 |
|
Q3 FY 21 |
|
|
507.8 |
|
|
|
— |
|
|
507.8 |
|
|
|
1,436.2 |
|
|
3.9 |
|
|
1,432.3 |
|
|
$ increase |
|
$ |
(3.0 |
) |
|
|
$ |
(3.0 |
) |
|
$ |
2.2 |
|
|
|
|
$ |
6.1 |
|
|||
% increase |
|
|
(0.6 |
) % |
|
|
|
|
(0.6 |
) % |
|
|
0.2 |
% |
|
|
|
|
0.4 |
% |
Garden |
|
GAAP to Non-GAAP Reconciliation |
||||||||||||||||||||
|
|
For Three Months Ended |
|
For the Nine Months Ended |
||||||||||||||||||
|
|
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) |
||||||||||||||||||||
Q3 FY 22 |
|
$ |
510.6 |
|
|
$ |
25.1 |
|
$ |
485.5 |
|
|
$ |
1,192.7 |
|
|
$ |
146.9 |
|
$ |
1,045.8 |
|
Q3 FY 21 |
|
|
529.3 |
|
|
|
— |
|
|
529.3 |
|
|
|
1,128.4 |
|
|
— |
|
|
1,128.4 |
|
|
$ increase (decrease) |
|
$ |
(18.7 |
) |
|
|
|
$ |
(43.8 |
) |
|
$ |
64.3 |
|
|
|
|
$ |
(82.6 |
) |
||
% increase (decrease) |
|
|
(3.5 |
) % |
|
|
|
|
(8.3 |
) % |
|
|
5.7 |
% |
|
|
|
|
(7.3 |
) % |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation
For the Three Months Ended |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
75,420 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
14,335 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
759 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
23,430 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
135 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
38,659 |
Income (loss) from operations |
|
$ |
75,564 |
|
$ |
62,616 |
|
$ |
(24,101 |
) |
|
$ |
114,079 |
Depreciation & amortization |
|
|
9,118 |
|
|
9,791 |
|
|
975 |
|
|
|
19,884 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
7,400 |
|
|
|
7,400 |
Adjusted EBITDA |
|
$ |
84,682 |
|
$ |
72,407 |
|
$ |
(15,726 |
) |
|
$ |
141,363 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation
For the Three Months Ended |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
76,186 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
13,086 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,086 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
22,315 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
568 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
37,055 |
Income (loss) from operations |
|
$ |
67,037 |
|
$ |
71,021 |
|
$ |
(24,817 |
) |
|
$ |
113,241 |
Depreciation & amortization |
|
|
10,808 |
|
|
8,960 |
|
|
1,222 |
|
|
|
20,990 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
6,646 |
|
|
|
6,646 |
Adjusted EBITDA |
|
$ |
77,845 |
|
$ |
79,981 |
|
$ |
(16,949 |
) |
|
$ |
140,877 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation
For the Nine Months Ended |
|||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
|||||
|
|
(in thousands) |
|||||||||||
Net income attributable to |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
154,142 |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
43,445 |
Other expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,337 |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
47,319 |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
895 |
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
92,996 |
Income (loss) from operations |
|
$ |
152,132 |
|
$ |
168,512 |
|
$ |
(73,506 |
) |
|
$ |
247,138 |
Depreciation & amortization |
|
|
26,457 |
|
|
28,879 |
|
|
2,997 |
|
|
|
58,333 |
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
18,879 |
|
|
|
18,879 |
Adjusted EBITDA |
|
$ |
178,589 |
|
$ |
197,391 |
|
$ |
(51,630 |
) |
|
$ |
324,350 |
Adjusted EBITDA Reconciliation |
|
GAAP to Non-GAAP Reconciliation
For the Nine Months Ended |
||||||||||||
|
|
Garden |
|
Pet |
|
Corp |
|
Total |
||||||
|
|
(in thousands) |
||||||||||||
Net income attributable to |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
154,753 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
|
44,006 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(370 |
) |
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
|
45,260 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,242 |
|
Sum of items below operating income |
|
|
— |
|
|
— |
|
|
— |
|
|
|
90,138 |
|
Income (loss) from operations |
|
$ |
137,650 |
|
$ |
176,604 |
|
$ |
(69,363 |
) |
|
$ |
244,891 |
|
Depreciation & amortization |
|
|
22,250 |
|
|
26,927 |
|
|
3,582 |
|
|
|
52,759 |
|
Noncash stock-based compensation |
|
|
— |
|
|
— |
|
|
17,040 |
|
|
|
17,040 |
|
Adjusted EBITDA |
|
$ |
159,900 |
|
$ |
203,531 |
|
$ |
(48,741 |
) |
|
$ |
314,690 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005741/en/
Investor Relations Contact
VP, Investor Relations
(925) 412-6726
fedelmann@central.com
Source:
FAQ
What were Central Garden & Pet's financial results for Q3 fiscal 2022?
How did the garden segment perform in Q3 fiscal 2022?
What challenges did Central Garden & Pet face in the pet segment during Q3 fiscal 2022?