CENTRAL GARDEN & PET CO Files 10-Q for Period Ending March 30, 2024

TL;DR

<b>Central Garden & Pet Co. has filed its Q2 2024 10-Q report, detailing financial positions and debt instruments.</b>

AI Summary

CENTRAL GARDEN & PET CO (CENTA) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Central Garden & Pet Co. filed a 10-Q report for the period ending March 30, 2024. The filing covers the second quarter of the fiscal year. The company's fiscal year ends on September 28. The filing includes data related to common stock classes and various senior notes. Specific financial instruments like 4.125% Senior Notes Due April 2031 and 5.125% Senior Notes Due February 2028 are mentioned.

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 an updated view of the company's financial health and performance for the second quarter of fiscal year 2024. The detailed information on various debt instruments and asset classifications is crucial for understanding the company's capital structure and potential financial risks.

Risk Assessment

Risk Level: medium — CENTRAL GARDEN & PET CO shows moderate risk based on this filing. The company's financial structure includes multiple senior notes with varying interest rates and maturity dates, which could present refinancing or interest rate risks.

Analyst Insight

Investors should review the detailed debt schedules and maturity profiles within the 10-Q to assess the company's leverage and liquidity.

Key Numbers

• 2024-03-30 — Reporting Period End Date (10-Q filing)
• 2024-05-09 — Filing Date (10-Q filing)
• 0928 — Fiscal Year End (Company data)
• 4.125% — Senior Notes Interest Rate (Notes Due April 2031)
• 5.125% — Senior Notes Interest Rate (Notes Due February 2028)

Key Players & Entities

• CENTRAL GARDEN & PET CO (company) — FILER
• 0000887733 (company) — CENTRAL INDEX KEY
• 2024-03-30 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• 9259484000 (phone) — BUSINESS PHONE
• 4.125% (dollar_amount) — Interest rate for Senior Notes Due April 2031
• 5.125% (dollar_amount) — Interest rate for Senior Notes Due February 2028
• CENTRAL GARDEN & PET COMPANY (company) — FORMER COMPANY NAME

FAQ

Key Dates

• 2024-03-30: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and position between annual reports.)

Senior Notes

A type of debt security that is unsecured and has a lower priority claim on assets than secured debt. (Key component of the company's capital structure, impacting financial risk and interest expenses.)

Filing Documents

• cent-20240330.htm (10-Q) — 1373KB
• q22024exhibit22.htm (EX-22) — 33KB
• q22024exhibit311.htm (EX-31.1) — 9KB
• q2024exhibit312.htm (EX-31.2) — 9KB
• q22024exhibit321.htm (EX-32.1) — 4KB
• q22024exhibit322.htm (EX-32.2) — 4KB
• cent-20240330_g1.jpg (GRAPHIC) — 99KB
• 0000887733-24-000011.txt (&nbsp;) — 7266KB
• cent-20240330.xsd (EX-101.SCH) — 29KB
• cent-20240330_cal.xml (EX-101.CAL) — 61KB
• cent-20240330_def.xml (EX-101.DEF) — 214KB
• cent-20240330_lab.xml (EX-101.LAB) — 489KB
• cent-20240330_pre.xml (EX-101.PRE) — 350KB
• cent-20240330_htm.xml (XML) — 1315KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets as of March 30, 2024, March 25 2023 and September 30, 2023 4 Condensed Consolidated Statements of Operations Three and Six Months Ended March 30, 2024 and March 25, 2023 5 Condensed Consolidated Statements of Comprehensive Income (Loss) Three and Six Months Ended March 30, 2024 and March 25, 2023 6 Condensed Consolidated Statements of Cash Flows Six Months Ended March 30, 2024 and March 25, 2023 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 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 37

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 38 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) March 30, 2024 March 25, 2023 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 301,332 $ 60,607 $ 488,730 Restricted cash 14,197 13,475 14,143 Accounts receivable (less allowance for credit losses and customer allowances of $ 27,677 , $ 28,283 and $ 25,797 ) 578,237 564,874 332,890 Inventories, net 914,352 966,900 838,188 Prepaid expenses and other 42,500 48,019 33,172 Total current assets 1,850,618 1,653,875 1,707,123 Plant, property and equipment, net 387,203 395,788 391,768 Goodwill 546,436 546,436 546,436 Other intangible assets, net 480,910 525,301 497,228 Operating lease right-of-use assets 170,849 174,435 173,540 Other assets 104,002 54,963 62,553 Total $ 3,540,018 $ 3,350,798 $ 3,378,648 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 237,310 $ 225,311 $ 190,902 Accrued expenses 267,813 201,286 216,241 Current lease liabilities 51,045 49,082 50,597 Current portion of long-term debt 322 270 247 Total current liabilities 556,490 475,949 457,987 Long-term debt 1,188,955 1,212,053 1,187,956 Long-term lease liabilities 134,723 135,695 135,621 Deferred income taxes and other long-term obligations 147,683 154,854 144,271 Equity: Common stock, $ 0.01 par value: 11,077,612 , 11,236,635 and 11,077,612 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023 111 112 111 Class A common stock, $ 0.01 par value: 54,659,683 , 54,822,098 and 54,472,902 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023 547 548 544 Class B stock, $ 0.01 par value: 1,602,374 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023 16 16 16 Additional paid-in capital 592,136 587,243 594,282 Retained earnings 920,803 786,776 859,370 Accumulated other comprehensive loss ( 2,825 ) ( 3,601 ) ( 2,970 ) To

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