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Central Garden & Pet(CENTA) - 2025 Q1 - Quarterly Results
CENTACentral Garden & Pet(CENTA)2025-02-05 21:26

Financial Performance - Fiscal 2025 Q1 net sales increased by 3% to 656millioncomparedto656 million compared to 635 million in the prior year[1] - Fiscal 2025 Q1 EPS rose to 0.21from0.21 from 0.01 a year ago, reflecting significant improvement in profitability[1] - Gross profit for Q1 was 196million,withagrossmarginimprovementof160basispointsto29.8196 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 8millionintheprioryear,withanoperatingmarginexpansionof300basispointsto4.38 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 51millionfrom51 million from 43 million, with an operating margin of 12.0%[5][6] - Garden segment net sales rose by 2% to 229million,withoperatingincomeimprovingto229 million, with operating income improving to 2 million from a loss of 9million,achievinganoperatingmarginof1.19 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 567,000inthesameperiodlastyear[27]−AdjustedEBITDAforthethreemonthsendedDecember28,2024,was567,000 in the same period last year[27] - Adjusted EBITDA for the three months ended December 28, 2024, was 55,436,000, compared to 36,978,000forthesameperiodlastyear,reflectingayear−over−yearincreaseofapproximately5036,978,000 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 341millionayearago,indicatingstrongliquidity[9]−Totaldebtremainedstableat341 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,downfrom632,669,000, down from 768,403,000 at the beginning of the period[27] - Cash flows from operating activities resulted in a net cash outflow of 68,832,000forthethreemonthsendedDecember28,2024,slightlyimprovedfrom68,832,000 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,adecreasefrom9,418,000, 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 52millionduringthequarter,with52 million during the quarter, with 131 million remaining for future repurchases[10] - The company repurchased common stock totaling 54,022,000duringthethreemonthsendedDecember28,2024,comparedto54,022,000 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 2.20orbetter,despitemacroeconomicchallenges[12][13]−Thecompanyincurredstock−basedcompensationexpensesof2.20 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 6,021,000intheprioryear[27]−Accountsreceivableincreasedsignificantly,withachangeof6,021,000 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)inthesameperiodlastyear[27]−Theeffectofexchangeratechangesresultedinacashdecreaseof(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 790,000inthesameperiodlastyear[27]−Thecompanyreportedanetincomeattributabletononcontrollinginterestof790,000 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]