Financial Performance - Fiscal 2026 Q1 net sales were $617 million, down from $656 million in Q1 FY 2025, reflecting a decrease of approximately 6%[3] - Operating income decreased to $17 million from $28 million, resulting in an operating margin decline to 2.7% from 4.3%[3] - Net income attributable to Central Garden & Pet Company was $6.8 million, a decrease of 51.1% from $14.0 million in the prior year[26] - Non-GAAP net income attributable to Central Garden & Pet Company was $12.8 million, compared to $14.0 million in the same period last year[33] - Adjusted EBITDA for the three months ended December 27, 2025, was $49.8 million, down from $55.4 million in the prior year[39] Sales Performance - Pet segment net sales were $416 million, a decrease from $427 million, primarily due to portfolio optimization and shipment timing[5] - Garden segment net sales fell to $202 million from $229 million, also impacted by shipment timing and portfolio optimization efforts[7] - Net sales for the three months ended December 27, 2025, were $617.4 million, a decrease of 5.9% compared to $656.4 million for the same period in 2024[26] Margins and Profitability - Gross margin improved by 110 basis points to 30.9% compared to 29.8% in the prior year, driven by enhanced productivity[3] - Gross profit for the same period was $190.6 million, down from $195.7 million, resulting in a gross margin of 30.9%[26] Cash and Debt Management - Cash and cash equivalents increased to $721 million from $618 million year-over-year[9] - Total debt remained stable at $1.2 billion, with a gross leverage ratio of 2.9x, consistent with the prior year[10] - Cash, cash equivalents, and restricted cash at the end of the period totaled $737.2 million, down from $898.4 million at the beginning of the period[28] - Cash flows from operating activities resulted in a net cash used of $70.2 million, compared to $68.8 million in the previous year[28] Guidance and Future Investments - The company reaffirmed its fiscal 2026 non-GAAP diluted EPS guidance of $2.70 or better, emphasizing margin discipline and cost efficiency initiatives[14] - Capital expenditures for fiscal 2026 are projected to be between $50 million and $60 million, focusing on maintenance and targeted growth investments[15] Acquisitions and Expenses - The company incurred $57.0 million in payments to acquire companies during the quarter, significantly higher than $3.3 million in the same period last year[28] - The company recognized an incremental expense of $7.7 million related to facility closures during the quarter[32]
Central Garden & Pet(CENTA) - 2026 Q1 - Quarterly Results