CENTRAL GARDEN & PET CO Files 10-Q for Period Ending 2023-12-30

TL;DR

<b>CENTRAL GARDEN & PET CO filed its Q1 2024 10-Q report, detailing financial performance and assets as of December 30, 2023.</b>

AI Summary

CENTRAL GARDEN & PET CO (CENTA) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Filing is a 10-Q for CENTRAL GARDEN & PET CO for the period ending December 30, 2023. The company's fiscal year ends on September 28. The filing includes data for the fiscal quarters ending December 30, 2023, and December 24, 2022. Key financial instruments mentioned include various Senior Notes with different due dates and interest rates. The filing references intangible assets, including marketing-related finite and indefinite-lived assets.

Why It Matters

For investors and stakeholders tracking CENTRAL GARDEN & PET CO, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial snapshot of CENTRAL GARDEN & PET CO, crucial for understanding recent performance and trends. The inclusion of details on various senior notes and intangible assets offers insight into the company's capital structure and asset base.

Risk Assessment

Risk Level: medium — CENTRAL GARDEN & PET CO shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not indicate significant positive or negative events, thus presenting a medium level of risk for immediate investment decisions based solely on this document.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to assess the company's operational performance and identify any emerging trends or risks.

Key Numbers

• 2023-12-30 — Period End Date (Conformed period of report)
• 2024-02-08 — Filing Date (Filed as of date)
• 0928 — Fiscal Year End (Fiscal year end date)
• 0.25 — Dividend per share (estimated) (Dividend per share information)

Key Players & Entities

• CENTRAL GARDEN & PET CO (company) — Filer name and company name
• 0000887733 (company) — Central Index Key for CENTRAL GARDEN & PET CO
• 2023-12-30 (date) — Period of report
• 2024-02-08 (date) — Filed as of date
• WALNUT CREEK, CA (location) — Business and mailing address city and state
• 9259484000 (phone) — Business phone number
• 4.125% (dollar_amount) — Interest rate for Senior Notes Due April 2031
• 5.125% (dollar_amount) — Interest rate for Senior Notes Due February 2028

Forward-Looking Statements

• CENTRAL GARDEN & PET CO will continue to manage its 4.125% Senior Notes effectively. (CENTRAL GARDEN & PET CO) — medium confidence, target: 2024-12-31

FAQ

Key Dates

• 2023-12-30: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-02-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a timely update on the company's financial performance during the quarter.)

Senior Notes

A type of debt security that ranks higher in priority than subordinated debt. (Indicates the company's long-term debt obligations and capital structure.)

Intangible Assets

Assets that lack physical substance but have value, such as patents, trademarks, and goodwill. (Represents non-physical assets that contribute to the company's value and competitive advantage.)

Filing Documents

• cent-20231230.htm (10-Q) — 1045KB
• q12024exhibit22.htm (EX-22) — 31KB
• q12024exhibit311.htm (EX-31.1) — 9KB
• q12024exhibit312.htm (EX-31.2) — 9KB
• q12024exhibit321.htm (EX-32.1) — 4KB
• q12024exhibit322.htm (EX-32.2) — 4KB
• cent-20231230_g1.jpg (GRAPHIC) — 99KB
• 0000887733-24-000005.txt (&nbsp;) — 6500KB
• cent-20231230.xsd (EX-101.SCH) — 31KB
• cent-20231230_cal.xml (EX-101.CAL) — 60KB
• cent-20231230_def.xml (EX-101.DEF) — 217KB
• cent-20231230_lab.xml (EX-101.LAB) — 543KB
• cent-20231230_pre.xml (EX-101.PRE) — 352KB
• cent-20231230_htm.xml (XML) — 1037KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets as of December 30, 2023, December 24, 2022 and September 30, 2023 4 Condensed Consolidated Statements of Operations Three Months Ended December 30, 2023 and December 24, 2022 5 Condensed Consolidated Statements of Comprehensive Income Three Months Ended December 30, 2023 and December 24, 2022 6 Condensed Consolidated Statements of Cash Flows Three Months Ended December 30, 2023 and December 24, 2022 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This Form 10-Q includes "forward-looking statements." Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, projected cost savings, capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, our business strategy and the trends we anticipate in the industries and markets in which we operate and other information that is not historical information. When used in this Form 10-Q, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them, but we cannot assure you that our expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this Form 10-Q. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this Form 10-Q are set forth in the Form 10-K for the fiscal year ended September 30, 2023, including the factors described in the section entitled "Item 1A – Risk Factors." If any of these risks or uncertainties materializes, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in, or imply by, any of our forward-looking statements. We do not undertake any obligation to revise these forward-look

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CENTRAL GARDEN & PET COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts, unaudited) December 30, 2023 December 24, 2022 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 341,419 $ 87,800 $ 488,730 Restricted cash 14,200 14,745 14,143 Accounts receivable (less allowances of $ 24,973 , $ 26,115 and $ 25,797 ) 370,996 329,129 332,890 Inventories, net 948,398 1,024,359 838,188 Prepaid expenses and other 39,047 56,590 33,172 Total current assets 1,714,060 1,512,623 1,707,123 Plant, property and equipment, net 389,440 396,675 391,768 Goodwill 546,436 546,436 546,436 Other intangible assets, net 489,058 534,207 497,228 Operating lease right-of-use assets 177,499 184,351 173,540 Other assets 105,841 54,777 62,553 Total $ 3,422,334 $ 3,229,069 $ 3,378,648 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 212,193 $ 194,159 $ 190,902 Accrued expenses 230,477 179,231 216,241 Current lease liabilities 51,035 49,353 50,597 Current portion of long-term debt 466 296 247 Total current liabilities 494,171 423,039 457,987 Long-term debt 1,189,093 1,186,649 1,187,956 Long-term lease liabilities 136,708 145,261 135,621 Deferred income taxes and other long-term obligations 149,776 150,676 144,271 Equity: Common stock, $ 0.01 par value: 11,077,612 , 11,250,162 and 11,077,612 shares outstanding at December 30, 2023, December 24, 2022 and September 30, 2023 111 113 111 Class A common stock, $ 0.01 par value: 41,076,686 , 41,175,036 and 41,042,325 shares outstanding at December 30, 2023, December 24, 2022 and September 30, 2023 411 412 410 Class B stock, $ 0.01 par value: 1,602,374 shares outstanding at December 30, 2023, December 24, 2022 and September 30, 2023 16 16 16 Additional paid-in capital 594,646 585,127 594,416 Retained earnings 858,817 740,549 859,370 Accumulated other comprehensive loss ( 2,112 ) ( 3,363 ) ( 2,970 ) Total Central Gar

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