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Central Garden & Pet Announces Record Q2 Fiscal 2021 Results

Q2 fiscal 2021 net sales increased 33% to $935 million

Q2 fiscal 2021 diluted EPS grew 69% to $1.32

Raises outlook for fiscal 2021 diluted GAAP EPS to $2.25 or better

Raises outlook for fiscal 2021 diluted Non-GAAP EPS to $2.42 or better

Acquisitions expected to add an incremental $0.11-$0.16 to fiscal 2021 EPS

Central Garden & Pet Company (NASDAQ: CENT, CENTA) (“Central”), a market leader in the Garden and Pet industries, today announced financial results for its fiscal 2021 second quarter ended March 27, 2021.

“We delivered the fifth consecutive quarter of record financial results reflecting solid execution, continued strong demand in Pet and Garden and the tireless support of our employees,” said Tim Cofer, CEO of Central Garden & Pet. “We are making further strides against our Central to Home strategy and are pleased with our recent acquisitions. We remain confident about our future and given our strong organic performance in the first half; we are raising our outlook for fiscal 2021.”

Fiscal 2021 Second Quarter Financial Results

Total net sales increased 33% to $935 million compared to $703 million a year ago, driven largely by organic growth in both segments as well as by the recent acquisitions which contributed $76 million to the quarter. Organic sales increased 23%.

Gross margin decreased 40 basis points to 29.1% driven by the impact of initial purchase accounting adjustments related to recent acquisitions, as well as cost inflation in areas such as commodities, labor and freight.

Operating income increased 58% to $105 million from $66 million a year ago. Operating margin increased 180 basis points to 11.2% compared to 9.4% in the prior year quarter, primarily driven by operating efficiencies. EBITDA increased 56% to $123 million from $79 million a year ago.

Net interest expense was $10 million compared to $9 million a year ago, mainly due to higher debt outstanding.

The Company's net income increased 71% to $73 million from $43 million a year ago. Diluted earnings per share for the quarter grew 69% to $1.32 from $0.78 in the prior year quarter, driven by organic strength and $0.07 accretion from recent acquisitions.

Garden Segment Fiscal 2021 Second Quarter Results

Net sales for the Garden segment increased 49% to $443 million driven by organic growth of 23%, with notable strength in distribution, fertilizers and controls, wild bird feed, and grass seed, as well as $76 million contribution from acquisitions.

Garden segment operating income increased 53% to $66 million and operating margin rose 40 basis points to 14.9%. Garden segment EBITDA increased 63% to $75 million from $46 million in the prior year quarter, primarily driven by volume strength and operating leverage as well as contributions from recent acquisitions.

Pet Segment Fiscal 2021 Second Quarter Results

Net sales for the Pet segment increased 21% to $492 million driven by strong growth across the segment, with significant contributions from small animal supplies, distribution, dog and cat as well as outdoor pillows and cushions.

Pet segment operating income increased 43% to $62 million, and operating margin grew 190 basis points to 12.6%. Pet segment EBITDA increased 34.7% to $71 million from $53 million a year ago, largely driven by stronger sales volume and favorable product mix as well as overhead efficiencies.

Additional Information

The Company's cash balance at the end of the quarter was $40 million compared to $332 million a year ago. The Company used approximately $653 million of its cash and additional funds from its ABL to pay for the acquisition of Hopewell Nursery and Green Garden Products. Cash used by operations during the quarter was $84 million compared to cash used by operations of $75 million a year ago. The increase was driven primarily by working capital requirements.

Total debt as of March 27, 2021 was $979 million compared to $694 million at March 28, 2020. The Company's leverage ratio at the end of the second quarter, as defined in the Company's credit agreement, was 2.5x compared to 2.9x at the end of the prior year quarter.

The Company’s effective tax rate was 22.7%, in line with the prior year quarter.

2021 Guidance

Given strong year-to-date results, the Company has updated it's fiscal year outlook and now expects fiscal 2021 GAAP EPS to be at or above $2.25. This guidance compares to the Company's previous guidance of 2021 GAAP EPS of $1.90 or higher. The revised outlook includes the benefit of strong performance in the first half of fiscal 2021, the Company's anticipated investments in capacity expansion, brand building and eCommerce to drive sustainable growth, increasing costs for key commodities, labor and freight, resuming more normal levels of promotional activity, as well as second-half headwinds associated with lapping almost ideal weather for the gardening season and the COVID-19 tailwinds in fiscal 2020. The revised outlook does not include the impact of recent acquisitions, as purchase accounting has not yet been finalized. However, early estimates indicate that the net impact of the acquisitions will be accretive to fiscal 2021 EPS in the range of $0.11 to $0.16.

Conference Call

The Company will host a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its second quarter fiscal 2021 results. The conference call and related materials can be accessed on the Company's website at http://ir.central.com.

Alternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international) using confirmation #13717534.

About Central Garden & Pet

Central Garden & Pet (NASDAQ: CENT, CENTA) understands that home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With 2020 net sales of $2.7 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 help 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 6,900 employees across North America and Europe. For additional information about Central, please visit the Company’s website at 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, in addition to resuming more normal levels of travel and promotional activity and their impact on future growth, and earnings guidance for fiscal 2021, 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:

  • our ability to successfully manage the 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;
  • risks associated with our acquisition strategy, including our ability to successfully integrate our recently announced acquisitions and the impact of purchase accounting on our financial results;
  • inflation and other adverse macro-economic conditions and our ability to pass on cost increases;
  • the potential for future reductions in demand for product categories, which benefited from the COVID-19 pandemic;
  • the success of our new Central to Home strategy;
  • seasonality and fluctuations in our operating results and cash flow;
  • fluctuations in market prices for seeds and grains and other raw materials;
  • our inability to pass through cost increases in a timely manner;
  • supply shortages in pet birds, small animals and fish;
  • adverse weather conditions;
  • dependence on a small number of customers for a significant portion of our business;
  • impacts of tariffs or a trade war;
  • consolidation trends in the retail industry;
  • declines in consumer spending during economic downturns;
  • 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;
  • access to and cost of additional capital;
  • potential goodwill or intangible asset impairment;
  • our dependence upon our key executives;
  • our inability to protect our trademarks and other proprietary rights;
  • fluctuations in energy prices, fuel and related petrochemical costs;
  • 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 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 27, 2021, so all financial results are preliminary and subject to change.

(Tables Follow)

CENTRAL GARDEN & PET COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

March 27, 2021

 

March 28, 2020

 

September 26, 2020

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

39,869

 

 

 

$

331,555

 

 

 

$

652,712

 

 

Restricted cash

12,612

 

 

 

13,021

 

 

 

13,685

 

 

Accounts receivable (less allowances of $29,784, $22,103 and $27,661)

636,466

 

 

 

460,985

 

 

 

391,773

 

 

Inventories, net

672,901

 

 

 

517,207

 

 

 

439,615

 

 

Prepaid expenses and other

45,339

 

 

 

36,160

 

 

 

27,498

 

 

Total current assets

1,407,187

 

 

 

1,358,928

 

 

 

1,525,283

 

 

Plant, property and equipment, net

295,769

 

 

 

241,878

 

 

 

244,667

 

 

Goodwill

289,955

 

 

 

289,854

 

 

 

289,955

 

 

Other intangible assets, net

128,229

 

 

 

141,686

 

 

 

134,924

 

 

Operating lease right-of-use assets

135,552

 

 

 

99,098

 

 

 

115,882

 

 

Other assets

590,410

 

 

 

35,963

 

 

 

28,653

 

 

Total

$

2,847,102

 

 

 

$

2,167,407

 

 

 

$

2,339,364

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

278,969

 

 

 

$

186,871

 

 

 

$

205,234

 

 

Accrued expenses

217,117

 

 

 

137,723

 

 

 

201,436

 

 

Current lease liabilities

40,586

 

 

 

32,403

 

 

 

33,495

 

 

Current portion of long-term debt

91

 

 

 

103

 

 

 

97

 

 

Total current liabilities

536,763

 

 

 

357,100

 

 

 

440,262

 

 

 

 

 

 

 

 

Long-term debt

978,887

 

 

 

693,622

 

 

 

693,956

 

 

Long-term lease liabilities

99,840

 

 

 

70,760

 

 

 

86,516

 

 

Deferred income taxes and other long-term obligations

70,033

 

 

 

52,483

 

 

 

40,956

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Common stock, $0.01 par value: 11,336,358, 11,329,110 and

11,336,358 shares outstanding at March 27, 2021, March 28, 2020 and

September 26, 2020

113

 

 

 

113

 

 

 

113

 

 

Class A common stock, $0.01 par value: 42,643,315, 41,802,735 and

41,856,626 shares outstanding at March 27, 2021, March 28, 2020 and

September 26, 2020

427

 

 

 

418

 

 

 

419

 

 

Class B stock, $0.01 par value: 1,612,374, 1,647,922 and 1,612,374 at

March 27, 2021, March 28, 2020 and September 26, 2020

16

 

 

 

16

 

 

 

16

 

 

Additional paid-in capital

572,815

 

 

 

562,625

 

 

 

566,883

 

 

Retained earnings

589,348

 

 

 

431,486

 

 

 

510,781

 

 

Accumulated other comprehensive loss

(2,153

)

 

 

(1,645

)

 

 

(1,409

)

 

Total Central Garden & Pet Company shareholders’ equity

1,160,566

 

 

 

993,013

 

 

 

1,076,803

 

 

Noncontrolling interest

1,013

 

 

 

429

 

 

 

871

 

 

Total equity

1,161,579

 

 

 

993,442

 

 

 

1,077,674

 

 

Total

$

2,847,102

 

 

 

$

2,167,407

 

 

 

$

2,339,364

 

 

CENTRAL GARDEN & PET COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts, unaudited)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

March 27, 2021

 

March 28, 2020

 

March 27, 2021

 

March 28, 2020

Net sales

$

935,252

 

 

 

$

703,229

 

 

 

$

1,527,482

 

 

 

$

1,186,057

 

 

Cost of goods sold

662,851

 

 

 

496,112

 

 

 

1,089,662

 

 

 

847,674

 

 

Gross profit

272,401

 

 

 

207,117

 

 

 

437,820

 

 

 

338,383

 

 

Selling, general and administrative expenses

167,791

 

 

 

141,012

 

 

 

306,170

 

 

 

270,213

 

 

Operating income

104,610

 

 

 

66,105

 

 

 

131,650

 

 

 

68,170

 

 

Interest expense

(10,222

)

 

 

(10,753

)

 

 

(31,197

)

 

 

(21,394

)

 

Interest income

71

 

 

 

1,417

 

 

 

277

 

 

 

3,421

 

 

Other income (expense)

704

 

 

 

(979

)

 

 

1,456

 

 

 

(674

)

 

Income before income taxes and noncontrolling interest

95,163

 

 

 

55,790

 

 

 

102,186

 

 

 

49,523

 

 

Income tax expense

21,564

 

 

 

12,648

 

 

 

22,945

 

 

 

10,920

 

 

Income including noncontrolling interest

73,599

 

 

 

43,142

 

 

 

79,241

 

 

 

38,603

 

 

Net income attributable to noncontrolling interest

645

 

 

 

438

 

 

 

674

 

 

 

316

 

 

Net income attributable to Central Garden & Pet Company

$

72,954

 

 

 

$

42,704

 

 

 

$

78,567

 

 

 

$

38,287

 

 

Net income per share attributable to Central Garden & Pet Company:

 

 

 

 

 

 

 

Basic

$

1.35

 

 

 

$

0.79

 

 

 

$

1.46

 

 

 

$

0.70

 

 

Diluted

$

1.32

 

 

 

$

0.78

 

 

 

$

1.43

 

 

 

$

0.69

 

 

Weighted average shares used in the computation of net income per share:

 

 

 

 

 

 

 

Basic

53,851

 

 

 

54,281

 

 

 

53,805

 

 

 

54,517

 

 

Diluted

55,156

 

 

 

54,952

 

 

 

54,930

 

 

 

55,220

 

 

CENTRAL GARDEN & PET COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

 

Six Months Ended

 

March 27, 2021

 

March 28, 2020

Cash flows from operating activities:

 

 

 

Net income

$

79,241

 

 

 

$

38,603

 

 

Adjustments to reconcile net income to net cash used by operating activities:

 

 

 

Depreciation and amortization

31,769

 

 

 

26,316

 

 

Amortization of deferred financing costs

952

 

 

 

921

 

 

Non-cash lease expense

19,120

 

 

 

17,194

 

 

Stock-based compensation

10,394

 

 

 

8,423

 

 

Debt extinguishment costs

8,577

 

 

 

 

 

Loss on sale of business

2,611

 

 

 

 

 

Deferred income taxes

4,196

 

 

 

4,966

 

 

Gain on sale of property and equipment

(662

)

 

 

(9

)

 

Other

221

 

 

 

1,331

 

 

Change in assets and liabilities (excluding businesses acquired):

 

 

 

Accounts receivable

(191,332

)

 

 

(160,799

)

 

Inventories

(131,887

)

 

 

(50,471

)

 

Prepaid expenses and other assets

8,585

 

 

 

(6,051

)

 

Accounts payable

62,393

 

 

 

37,857

 

 

Accrued expenses

(6,119

)

 

 

6,803

 

 

Other long-term obligations

371

 

 

 

23

 

 

Operating lease liabilities

(18,606

)

 

 

(17,765

)

 

Net cash used by operating activities

(120,176

)

 

 

(92,658

)

 

Cash flows from investing activities:

 

 

 

Additions to plant, property and equipment

(33,647

)

 

 

(19,487

)

 

Payments to acquire companies, net of cash acquired

(733,692

)

 

 

 

 

Proceeds from the sale of business

2,400

 

 

 

 

 

Investments

 

 

 

(4,439

)

 

Other investing activities

(473

)

 

 

(437

)

 

Net cash used in investing activities

(765,412

)

 

 

(24,363

)

 

Cash flows from financing activities:

 

 

 

Repayments of long-term debt

(400,048

)

 

 

(59

)

 

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

(4,454

)

 

 

(48,026

)

 

Payment of contingent consideration liability

(157

)

 

 

(90

)

 

Distribution to noncontrolling interest

(532

)

 

 

(57

)

 

Payment of financing costs

(8,235

)

 

 

(959

)

 

Net cash provided (used) by financing activities

270,450

 

 

 

(49,191

)

 

Effect of exchange rate changes on cash and cash equivalents

1,222

 

 

 

87

 

 

Net decrease in cash, cash equivalents and restricted cash

(613,916

)

 

 

(166,125

)

 

Cash, cash equivalents and restricted cash at beginning of period

666,397

 

 

 

510,701

 

 

Cash, cash equivalents and restricted cash at end of period

$

52,481

 

 

 

$

344,576

 

 

Supplemental information:

 

 

 

Cash paid for interest

$

21,857

 

 

 

$

21,464

 

 

Cash paid for taxes

$

37,837

 

 

 

$

2,094

 

 

Operating lease right of use assets

$

38,667

 

 

 

$

4,986

 

 

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 and depreciation and amortization (or operating income plus depreciation and amortization 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:

(1)

During the first quarter of fiscal 2021, we issued $500 million aggregate principal amount of 4.125% senior notes due October 2030. We used the proceeds to redeem all of our outstanding 6.125% senior notes due 2023. As a result of our redemption of the 2023 Notes, we incurred incremental expenses of approximately $10.0 million, comprised of a call premium payment of $6.1 million, overlapping interest expense of approximately $1.4 million and a $2.5 million non-cash charge for the write-off of unamortized financing costs in interest expense. These amounts are included in Interest expense in the consolidated statements of operations.

(2)

During the first quarter of fiscal 2021, we recognized a loss of $2.6 million, included in selling, general and administrative expense in the consolidated statement of operations, from the sale of our Breeder’s Choice business unit after concluding it was not a strategic business for our Pet segment.

 

 

GAAP to Non-GAAP Reconciliation

For the Six Months Ended

Net Income and Diluted Net Income Per Share Reconciliation

 

March 27, 2021

 

March 28, 2020

 

 

(in thousands, except per share amounts)

GAAP net income attributable to Central Garden & Pet Company

 

$

78,567

 

 

 

$

38,287

 

Incremental expenses from note redemption and issuance

(1)

9,952

 

 

 

 

Loss on sale of business

(2)

2,611

 

 

 

 

Tax effect of incremental expenses and loss on sale

 

(2,821

)

 

 

 

Non-GAAP net income attributable to Central Garden & Pet

 

$

88,309

 

 

 

$

38,287

 

GAAP diluted net income per share

 

$

1.43

 

 

 

$

0.69

 

Non-GAAP diluted net income per share

 

$

1.61

 

 

 

$

0.69

 

Shares used in GAAP and non-GAAP diluted net earnings per share calculation

 

54,930

 

 

 

55,220

 

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 27, 2021

 

For the Six Months Ended March 27, 2021

 

 

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 21

 

$

935.3

 

 

$

76.1

 

 

$

859.2

 

 

$

1,527.5

 

 

$

76.4

 

 

$

1,451.1

 

Q2 FY 20

 

$

703.2

 

 

$

5.9

 

 

$

697.3

 

 

$

1,186.1

 

 

$

7.8

 

 

$

1,178.3

 

$ increase

 

$

232.1

 

 

 

 

$

161.9

 

 

$

341.4

 

 

 

 

$

272.8

 

% increase

 

33.0

%

 

 

 

23.2

%

 

28.8

%

 

 

 

23.2

%

PET

 

GAAP to Non-GAAP Reconciliation

 

 

For Three Months Ended March 27, 2021

 

For the Six Months Ended March 27, 2021

 

 

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 21

 

$

492.0

 

 

$

 

 

$

492.0

 

 

$

928.4

 

 

$

 

 

$

928.4

 

Q2 FY 20

 

$

405.5

 

 

$

5.9

 

 

$

399.6

 

 

$

772.1

 

 

$

7.8

 

 

$

764.3

 

$ increase

 

$

86.5

 

 

 

 

$

92.4

 

 

$

156.3

 

 

 

 

$

164.1

 

% increase

 

21.3

%

 

 

 

23.1

%

 

20.2

%

 

 

 

21.5

%

GARDEN

 

GAAP to Non-GAAP Reconciliation

 

 

For Three Months Ended March 27, 2021

 

For the Six Months Ended March 27, 2021

 

 

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 21

 

$

443.3

 

 

$

76.1

 

 

$

367.2

 

 

$

599.1

 

 

$

76.4

 

 

$

522.7

 

Q2 FY 20

 

$

297.7

 

 

$

 

 

$

297.7

 

 

$

414.0

 

 

$

 

 

$

414.0

 

$ increase

 

$

145.6

 

 

 

 

$

69.5

 

 

$

185.1

 

 

 

 

$

108.7

 

% increase

 

48.9

%

 

 

 

23.3

%

 

44.7

%

 

 

 

26.3

%

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

 

 

Adjusted EBITDA

 

$

74,766

 

 

$

70,940

 

 

$

(22,242

)

 

 

$

123,464

 

 

Adjusted EBITDA Reconciliation

 

GAAP to Non-GAAP Reconciliation

For the Three Months Ended March 28, 2020

 

 

Garden

 

Pet

 

Corp

 

Total

 

 

(in thousands)

Net income attributable to Central Garden & Pet Company

 

 

 

 

 

$

42,704

 

Interest expense, net

 

 

 

 

 

9,336

 

Other expense

 

 

 

 

 

979

 

Income tax expense

 

 

 

 

 

12,648

 

Net income attributable to noncontrolling interest

 

 

 

 

 

438

 

Sum of items below operating income

 

 

 

 

 

23,401

 

Income (loss) from operations

 

$

43,161

 

 

$

43,476

 

 

$

(20,532

)

 

 

$

66,105

 

Depreciation & amortization

 

2,595

 

 

9,170

 

 

1,411

 

 

 

13,176

 

Adjusted EBITDA

 

$

45,756

 

 

$

52,646

 

 

$

(19,121

)

 

 

$

79,281

 

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

 

 

Adjusted EBITDA

 

$

82,055

 

 

$

123,550

 

 

$

(42,186

)

 

 

$

163,419

 

 

Adjusted EBITDA Reconciliation

 

GAAP to Non-GAAP Reconciliation

For the Six Months Ended March 28, 2020

 

 

Garden

 

Pet

 

Corp

 

Total

(in thousands)

Net income attributable to Central Garden & Pet Company

 

 

 

 

 

 

 

 

$

38,287

 

Interest expense, net

 

 

 

 

 

 

 

 

17,973

 

Other expense

 

 

 

 

 

 

 

 

674

 

Income tax expense

 

 

 

 

 

 

 

 

10,920

 

Net income attributable to noncontrolling interest

 

 

 

 

 

 

 

 

316

 

Sum of items below operating income

 

 

 

 

 

 

 

 

29,883

 

Income (loss) from operations

 

$

36,278

 

 

$

72,213

 

 

$

(40,321

)

 

 

$

68,170

 

Depreciation & amortization

 

5,308

 

 

18,242

 

 

2,766

 

 

 

26,316

 

Adjusted EBITDA

 

$

41,586

 

 

$

90,455

 

 

$

(37,555

)

 

 

$

94,486

 

 

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