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]
Central Garden & Pet(CENTA) - 2025 Q1 - Quarterly Results