Financial Performance - The total net sales for the three months ended December 28, 2024, were $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.4%[93] - The Pet segment generated net sales of $427.5 million, up from $409.2 million, while the Garden segment saw sales increase from $225.3 million to $229.0 million[93] - Operating income for the total company was $28.0 million for the three months ended December 28, 2024, compared to $8.4 million in the prior year, indicating a significant improvement[93] - Net income attributable to Central Garden & Pet Company was $14.0 million for the three months ended December 28, 2024, compared to $430,000 for the same period in 2023, reflecting a substantial increase[93] - The company reported a basic earnings per share (EPS) of $0.22 for the three months ended December 28, 2024, compared to $0.01 for the same period in 2023[89] - Total revenue for the three months ended December 28, 2024, was $656.4 million, an increase from $634.5 million for the same period in 2023, representing a growth of approximately 3.1%[95] - The Pet Segment generated $427.5 million in revenue for the three months ended December 28, 2024, compared to $409.2 million in the same period of 2023, reflecting a growth of about 4.9%[95] - The Garden Segment reported revenues of $228.9 million for the three months ended December 28, 2024, up from $225.3 million in the same period of 2023, indicating a growth of approximately 1.6%[95] Cash and Cash Equivalents - The company reported cash and cash equivalents of $618,020 thousand as of December 28, 2024, compared to $341,419 thousand on December 30, 2023, indicating a significant increase of 81.0%[36] - Total cash, cash equivalents, and restricted cash amounted to $632,669 thousand as of December 28, 2024, up from $355,619 thousand a year earlier, reflecting an increase of 77.7%[36] Acquisitions and Goodwill - The company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet segment and eCommerce capabilities[54] - The company reported goodwill of $4,925 thousand as part of the acquisition of TDBBS, reflecting the premium paid over the net tangible assets acquired[56] Debt and Liabilities - The Company has long-term debt totaling $1,190.4 million as of December 28, 2024, which is slightly up from $1,189.6 million as of December 30, 2023[66] - The Company incurred approximately $6 million in debt issuance costs related to the issuance of $400 million 5.125% Senior Notes due 2031[69] - The Company has $300 million in Senior Notes due February 2028, $500 million in Senior Notes due October 2030, and $400 million in Senior Notes due April 2031, all with a fixed interest rate of 5.125%[66] - The Company’s total liabilities include current liabilities of $9,094 thousand and long-term lease liabilities of $3,727 thousand related to the acquisition of TDBBS[56] Inventory and Assets - Total inventories, net, decreased to $815,782 thousand as of December 28, 2024, from $948,398 thousand on December 30, 2023, representing a decline of 14.0%[57] - The company had total assets of $3.54 billion as of December 28, 2024, an increase from $3.42 billion a year earlier[93] Intangible Assets - The Company recorded total other intangible assets, net of $465.9 million as of December 28, 2024, compared to $489.1 million as of December 30, 2023, reflecting a decrease of approximately 4.7%[62] - The Company’s total marketing-related intangible assets, net, were $231.4 million as of December 28, 2024, down from $223.1 million as of December 30, 2023[62] - The Company’s customer-related intangible assets, net, were valued at $221.4 million as of December 28, 2024, compared to $251.8 million as of December 30, 2023, indicating a decrease of approximately 12%[62] - The Company amortizes its acquired intangible assets over a weighted average remaining life of 7 years for customer-related intangibles and 25 years for other acquired intangibles[64] - The estimated annual amortization expense related to acquired intangible assets is projected to be approximately $25 million per year from fiscal 2025 through fiscal 2027[65] Legal and Compliance - The Company has not experienced any product recalls that would materially affect its financial position or operations[98] - Management believes that ongoing legal proceedings will not have a material impact on the Company's consolidated financial statements[97] - The Company is currently not involved in any legal proceedings that could materially affect its operations, except for ongoing litigation related to patent infringement[96] - The Company intends to pursue its defenses in ongoing litigation and believes it will prevail on the merits regarding the damages issue[97] - There have been no changes in internal control over financial reporting that materially affected, or are likely to materially affect, the Company's internal control during the first quarter of 2025[155] - The Company’s disclosure controls and procedures were deemed effective as of December 28, 2024[154] - There has been no material change in the Company's exposure to market risk from the previous disclosures[154] Credit Facility - The Credit Facility includes a $50 million sublimit for standby letters of credit and a $75 million sublimit for swing loan borrowings, with no borrowings outstanding as of December 28, 2024[81] - The company maintained compliance with all financial covenants under the Credit Facility as of December 28, 2024[83] - The applicable margin for SOFR-based borrowings was 1.00% as of December 28, 2024, with interest rates based on SOFR and the Base Rate[81]

Group 1 - Central Garden (CENTA) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, marking an earnings surprise of 800% [1] - The company achieved revenues of $656.44 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.15% and showing an increase from $634.53 million year-over-year [2] - Central Garden has outperformed consensus EPS estimates in all four of the last quarters and has topped revenue estimates twice in the same period [2] Group 2 - The stock has underperformed the market, losing about 5.1% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $904.71 million, and for the current fiscal year, it is $2.22 on revenues of $3.23 billion [7] - The Zacks Industry Rank indicates that the Consumer Products - Discretionary sector is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Fiscal 2025 Q1 net sales increased by 3% to $656 million compared to $635 million in the prior year[1] - Fiscal 2025 Q1 EPS rose to $0.21 from $0.01 a year ago, reflecting significant improvement in profitability[1] - Gross profit for Q1 was $196 million, with a gross margin improvement of 160 basis points to 29.8% due to productivity gains and moderating inflation[3] - Operating income grew to $28 million from $8 million in the prior year, with an operating margin expansion of 300 basis points to 4.3%[4] - Pet segment net sales increased by 4% to $427 million, while operating income grew to $51 million from $43 million, with an operating margin of 12.0%[5][6] - Garden segment net sales rose by 2% to $229 million, with operating income improving to $2 million from a loss of $9 million, achieving an operating margin of 1.1%[7][8] - Net income for the three months ended December 28, 2024, was $14,181,000, a significant increase from $567,000 in the same period last year[27] - Adjusted EBITDA for the three months ended December 28, 2024, was $55,436,000, compared to $36,978,000 for the same period last year, reflecting a year-over-year increase of approximately 50%[32] Cash and Debt Management - Cash balance at the end of Q1 was $618 million, up from $341 million a year ago, indicating strong liquidity[9] - Total debt remained stable at $1.2 billion, with a gross leverage ratio of 2.9x, down from 3.0x in the prior year[9] - Cash, cash equivalents, and restricted cash at the end of the period totaled $632,669,000, down from $768,403,000 at the beginning of the period[27] - Cash flows from operating activities resulted in a net cash outflow of $68,832,000 for the three months ended December 28, 2024, slightly improved from $69,784,000 in the prior year[27] - The company reported a net cash used in investing activities of $9,418,000, a decrease from $70,475,000 in the same period last year, indicating reduced investment expenditures[27] Shareholder Returns - Central repurchased 1.68 million shares for $52 million during the quarter, with $131 million remaining for future repurchases[10] - The company repurchased common stock totaling $54,022,000 during the three months ended December 28, 2024, compared to $6,775,000 in the prior year[27] Other Financial Metrics - The company maintains its fiscal 2025 non-GAAP EPS outlook of $2.20 or better, despite macroeconomic challenges[12][13] - The company incurred stock-based compensation expenses of $5,510,000 for the three months ended December 28, 2024, compared to $6,021,000 in the prior year[27] - Accounts receivable increased significantly, with a change of $(73,439,000) for the three months ended December 28, 2024, compared to $(32,952,000) in the same period last year[27] - The effect of exchange rate changes resulted in a cash decrease of $(2,038,000) for the three months ended December 28, 2024, contrasting with a cash increase of $790,000 in the same period last year[27] - The company reported a net income attributable to noncontrolling interest of $172,000 for the three months ended December 28, 2024, compared to $137,000 in the prior year[32]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions. Company Summaries - Industria de Diseño Textil, S.A. (IDEXY) has seen its current year earnings estimate revised downward by 6.5% over the last 60 days [1] - Central Garden & Pet Company (CENTA) has experienced a 7.5% downward revision in its current year earnings estimate over the past 60 days [3] - Lonza Group AG (LZAGY) has had its current year earnings estimate revised down by 6% in the last 60 days [4]

Financial Performance - Consolidated net sales for fiscal 2024 were $3.2 billion, a decrease of $109.6 million, or 3.3%, compared to fiscal 2023[150] - Operating income declined by $25.3 million, or 12.0%, to $185.4 million in fiscal 2024[152] - Net income for fiscal 2024 was $108.0 million, or $1.62 per diluted share, down from $125.6 million, or $1.88 per diluted share in fiscal 2023[153] - Gross profit decreased by $3.1 million, or 0.3%, to $943.7 million, while gross margin improved by 90 basis points to 29.5%[165] - Organic net sales decreased by 3.9%, with Pet organic sales down 5.9% and Garden organic sales down 1.2%[151] - Net income for fiscal 2024 was $108.0 million, or $1.62 per diluted share, compared to $125.6 million, or $1.88 per diluted share, for fiscal 2023[173] - GAAP net income for the year ended September 28, 2024, was $107,983 thousand, compared to $125,643 thousand for the year ended September 30, 2023, reflecting a decrease of 14.1%[184] - Non-GAAP net income for fiscal 2024 was $142.4 million, or $2.13 per diluted share, compared to $138.5 million, or $2.07 per diluted share, for fiscal 2023[173] Segment Performance - The Pet segment accounted for approximately $1.8 billion in sales, while the Garden segment accounted for approximately $1.4 billion[150] - Pet operating income increased by $5.4 million, or 2.7%, to $203.4 million in fiscal 2024, with an operating margin improvement from 10.5% to 11.1%[167] - Garden operating income decreased by $41.6 million, or 33.7%, to $81.9 million in fiscal 2024, with a non-GAAP operating margin decline to 7.5%[167] - Organic net sales for the Pet Segment decreased by 2.4% in FY 2024, with reported sales of $1,832.8 million compared to $1,877.2 million in FY 2023[186] - The Garden Segment reported a GAAP operating income of $81,893 thousand for FY 2024, down from $123,455 thousand in FY 2023, a decline of 33.7%[186] Expenses and Costs - Selling, general and administrative expenses increased by $22.1 million, or 3.0%, to $758.3 million, representing 23.7% of net sales[166] - The company incurred approximately $7.5 million in one-time costs related to facility closures in the Pet segment[154] - Other income (expense) was an expense of $5.1 million in fiscal 2024, compared to income of $1.5 million in fiscal 2023, mainly due to a $7.5 million impairment for private company investments[171] - Corporate expenses decreased by $10.9 million, primarily due to lower equity compensation and a gain from a litigation settlement[168] Debt and Financing - Debt outstanding was $1,190.0 million as of September 28, 2024, with an average borrowing rate of 4.5%[170] - The company issued $500 million of 4.125% senior notes due October 2030, using proceeds to redeem $300 million of 6.125% senior notes due November 2023 at a redemption price of 101.531%[206] - The company has a $750 million senior secured asset-based revolving credit facility, with net availability of approximately $481 million as of September 28, 2024[208] - Total debt outstanding as of September 28, 2024, was $1,190.0 million, slightly up from $1,188.2 million at September 30, 2023[202] Cash Flow and Investments - Net cash provided by operating activities increased by $13.3 million, from $381.6 million in fiscal 2023 to $394.9 million in fiscal 2024[193] - Net cash used in investing activities increased by $70.6 million, from $34.6 million in fiscal 2023 to $105.2 million in fiscal 2024, primarily due to the acquisition of TDBBS, LLC[194] - Capital expenditures are anticipated to be approximately $70 million over the next 12 months, focusing on plant and equipment upgrades[200] Acquisitions and Growth Strategy - In November 2023, the company acquired TDBBS, LLC for approximately $60 million, enhancing its portfolio in the pet supplies market[159] - The company anticipates continued focus on market expansion and new product development to drive future growth[186] - The company plans to continue evaluating potential acquisition candidates as part of its growth strategy[200] Tax and Interest - Effective income tax rate increased to 23.2% in fiscal 2024 from 22.4% in fiscal 2023, primarily due to a higher blended state income tax rate[172] - Net interest expense decreased by $11.8 million, or 23.7%, to $37.9 million in fiscal 2024 due to increased interest income from higher cash balances[170] Market and Economic Factors - Inflationary pressures impacted gross and operating margins in fiscal 2023, but moderation was noted in fiscal 2024, leading to improved margins[189] - Approximately 66% of the Garden segment's net sales occurred during the second and third fiscal quarters, highlighting the seasonality of the business[191] Compliance and Obligations - The company was in compliance with all financial covenants as of September 28, 2024, under both the 2030 and 2028 Notes[207][212] - Total contractual obligations amount to $1,891.2 million, with $1,200.5 million due thereafter[215] - Estimated interest payments on long-term debt for fiscal years 2025 to 2029 total approximately $282.7 million[215] Impairments and Goodwill - Impairment losses on indefinite-lived intangible assets were recognized at $12.8 million and $11.5 million for fiscal years 2024 and 2023, respectively[224] - The company completed its qualitative assessment of goodwill impairment and determined that fair values of reporting segments were greater than their carrying amounts in fiscal year 2024[221] - The company’s goodwill is associated with its Pet and Garden segments, with no impairment testing required in fiscal 2024[221]

Core Viewpoint - Central Garden (CENTA) reported a quarterly loss of $0.18 per share, which was better than the Zacks Consensus Estimate of a loss of $0.20, indicating a 10% earnings surprise [1] - The company has shown a trend of surpassing consensus EPS estimates over the last four quarters [2] Financial Performance - For the quarter ended September 2024, Central Garden posted revenues of $669.49 million, missing the Zacks Consensus Estimate by 7.51%, and down from $750.15 million year-over-year [2] - The company has exceeded consensus revenue estimates two times in the last four quarters [2] Stock Performance - Central Garden shares have declined approximately 5.8% since the beginning of the year, contrasting with the S&P 500's gain of 25.2% [4] - The current Zacks Rank for Central Garden is 4 (Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $640.69 million, and for the current fiscal year, it is $2.40 on revenues of $3.31 billion [8] - The trend of estimate revisions for Central Garden has been unfavorable ahead of the earnings release [7] Industry Context - The Consumer Products - Discretionary industry, to which Central Garden belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]

Exhibit 99.1 CENTRAL GARDEN & PET ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2024 FINANCIAL RESULTS Fiscal 2024 net sales of $3.2 billion vs. $3.3 billion in the prior year Fiscal 2024 GAAP EPS of $1.62 vs. $1.88 a year ago, non-GAAP EPS of $2.13 vs. $2.07 a year ago Expects fiscal 2025 non-GAAP EPS to be $2.20 or better WALNUT CREEK, Calif., – Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) ("Central"), a market leader in the pet and garden industries, today announced results for its fourth quart ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Central Garden (CENTA) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock ...

In late 2023, many analysts called for 2024 to be the year of a small-cap stock renaissance. These stocks were battered as the Federal Reserve aggressively raised interest rates. Many of these companies rely on borrowing to fund their growth and struggled as the cost of borrowing increased. The Russell 2000 index, which tracks many small-cap stocks, is up 20% in 2024. But not all small-cap stocks participated in that rally. However, with the Federal Reserve suggesting that its 50-basis point cut in Septembe ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201%2E%20Financial%20Statements) The company's financial statements for Q3 2024 show a 2.6% net sales decrease to $996.3 million and a net income of $79.7 million, with total assets reaching $3.61 billion Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 29, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $570,398 | $488,730 | | Inventories, net | $784,775 | $838,188 | | Total current assets | $1,910,170 | $1,707,123 | | Total assets | $3,607,878 | $3,378,648 | | **Liabilities & Equity** | | | | Total current liabilities | $521,445 | $457,987 | | Long-term debt | $1,189,366 | $1,187,956 | | Total liabilities | $2,012,098 | $1,925,835 | | Total equity | $1,595,780 | $1,452,813 | Condensed Consolidated Statements of Operations Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $996,348 | $1,023,269 | $2,530,971 | $2,559,936 | | Gross profit | $317,058 | $318,052 | $774,783 | $749,389 | | Operating income | $115,936 | $122,830 | $217,795 | $201,277 | | Net income | $79,724 | $83,126 | $142,141 | $122,808 | | Diluted EPS | $1.19 | $1.25 | $2.13 | $1.84 | Condensed Consolidated Statements of Cash Flows Cash Flow Summary - Nine Months Ended (in thousands) | Activity | June 29, 2024 | June 24, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $191,804 | $227,566 | | Net cash used in investing activities | ($94,589) | ($41,450) | | Net cash used by financing activities | ($16,007) | ($33,665) | | Net increase in cash | $81,505 | $154,497 | Key Notes to Financial Statements - On November 3, 2023, the Company acquired TDBBS, LLC, a provider of premium natural dog chews and treats, for approximately **$60 million**. This acquisition expands Central's portfolio and enhances its eCommerce capabilities[39](index=39&type=chunk) - In December 2023, the Board approved a stock dividend of one Class A Common Stock share for every four outstanding shares, distributed on February 8, 2024. All share and per-share amounts have been retroactively adjusted[21](index=21&type=chunk) Segment Net Sales (in thousands) | Segment | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Pet | $508,002 | $503,329 | $1,397,454 | $1,394,352 | | Garden | $488,346 | $519,940 | $1,133,517 | $1,165,584 | Segment Operating Income (in thousands) | Segment | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Pet | $83,068 | $59,969 | $189,115 | $154,779 | | Garden | $62,519 | $88,088 | $110,699 | $126,887 | - The company is involved in a legal proceeding with Nite Glow. A retrial on damages for a misappropriation of confidential information claim concluded in March 2024, but no decision has been issued by the court. Management does not expect the outcome to have a material impact[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a 2.6% Q3 2024 net sales decrease, driven by the Garden segment, while nine-month operating income grew 8.2% due to margin improvements, with a $15-20 million Q4 inventory write-down anticipated Overall Financial Performance Q3 2024 vs. Q3 2023 Performance (in millions) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $996.3 | $1,023.3 | -2.6% | | Organic Net Sales | - | - | -2.9% | | Gross Profit | $317.1 | $318.1 | -0.3% | | Gross Margin | 31.8% | 31.1% | +70 bps | | Operating Income | $115.9 | $122.8 | -5.6% | | Diluted EPS | $1.19 | $1.25 | -4.8% | Nine Months 2024 vs. Nine Months 2023 Performance (in millions) | Metric | YTD 2024 | YTD 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,531 | $2,560 | -1.1% | | Gross Profit | $774.8 | $749.4 | +3.4% | | Operating Income | $217.8 | $201.3 | +8.2% | | Diluted EPS | $2.13 | $1.84 | +15.8% | - The company is implementing a 'Cost and Simplicity' program, which involved exiting the pottery business and closing several facilities, resulting in one-time costs of **$11.1 million** in Q3 2024[78](index=78&type=chunk) - A significant decrease in market prices for grass seed will necessitate an inventory write-down, with an anticipated charge of **$15-20 million** in the fourth quarter of fiscal 2024[79](index=79&type=chunk) Segment Performance Analysis - **Pet Segment:** Q3 net sales grew **0.9%** to **$508.0 million**, though organic sales declined **2.2%** due to lower demand for durable goods. Operating income surged **38.5%** to **$83.1 million**, driven by improved gross margin[82](index=82&type=chunk)[85](index=85&type=chunk) - **Garden Segment:** Q3 net sales fell **6.1%** to **$488.3 million**, with organic sales down **3.7%** primarily due to decreased sales in the live plant business. Operating income decreased **29.0%** to **$62.5 million**[82](index=82&type=chunk)[86](index=86&type=chunk) Liquidity and Capital Resources - Net cash provided by operating activities for the nine-month period was **$191.8 million**, a decrease from **$227.6 million** in the prior year, primarily due to changes in working capital[124](index=124&type=chunk) - Total debt outstanding was **$1,189.7 million** as of June 29, 2024, consisting primarily of three series of senior notes due in 2028, 2030, and 2031[127](index=127&type=chunk) - The company has a **$750 million** asset-based revolving credit facility, with approximately **$550 million** in net availability and no borrowings outstanding as of June 29, 2024[131](index=131&type=chunk) - Capital expenditures are anticipated to be approximately **$60 million** in fiscal 2024, with **$33 million** invested through the first nine months[126](index=126&type=chunk) Non-GAAP Financial Measures - The company uses non-GAAP measures to exclude infrequent items like facility closure and business exit costs to provide better comparability of ongoing operating performance[103](index=103&type=chunk)[104](index=104&type=chunk) GAAP vs. Non-GAAP Reconciliation Highlights (Q3 2024, in millions) | Metric | GAAP | Non-GAAP | Difference | | :--- | :--- | :--- | :--- | | Operating Income | $115.9 | $127.1 | +$11.2 | | Net Income | $79.7 | $88.2 | +$8.5 | | Diluted EPS | $1.19 | $1.32 | +$0.13 | [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk exposure have occurred since the fiscal year-end 2023 Form 10-K disclosures - There has been no material change in the company's exposure to market risk since the fiscal year-end 2023 Form 10-K report[141](index=141&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 29, 2024, due to material weaknesses in IT general controls, with a remediation plan underway - Management concluded that disclosure controls and procedures were not effective as of June 29, 2024[143](index=143&type=chunk) - The ineffectiveness is due to material weaknesses in IT general controls (ITGCs) and controls related to an outsourced service provider for the Live Plant business[144](index=144&type=chunk) - A remediation plan is underway, which includes enhancing control design, hiring additional experienced personnel, and expanding control procedures[145](index=145&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in ongoing legal proceedings with Nite Glow Industries, with a retrial on damages concluded and a decision pending, not expected to materially impact financials - A retrial on damages in the Nite Glow litigation concluded in March 2024, with a court decision still pending. The company intends to vigorously defend its position[147](index=147&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A%2E%20Risk%20Factors) No material changes to the company's risk factors have been reported since the fiscal year-end 2023 Form 10-K - No material changes from the risk factors disclosed in the Form 10-K for the fiscal year ended September 30, 2023 have been reported[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3, the company repurchased 46,849 shares for tax coverage on vested restricted stock, with **$82.0 million** remaining under the 2019 repurchase authorization - As of June 29, 2024, the company had **$82.0 million** of authorization remaining under its 2019 share repurchase program[150](index=150&type=chunk) - During the quarter, **46,849 shares** were repurchased, representing shares withheld to cover taxes on vested restricted stock awards[150](index=150&type=chunk)[151](index=151&type=chunk)