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