Petco Files Q1 2024 10-Q

TL;DR

Petco's Q1 2024 10-Q is in: financials and credit facility details updated.

AI Summary

Petco Health & Wellness Company, Inc. filed its 10-Q for the period ending May 4, 2024. The company reported on its financial performance and condition, including details about its credit facilities and equity incentive plans. Specific financial figures and operational details are contained within the full filing.

Why It Matters

This filing provides investors with an update on Petco's financial health and operational status, crucial for understanding the company's performance and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures, but the specific financial details and operational performance within can reveal underlying risks or strengths.

Key Players & Entities

• Petco Health & Wellness Company, Inc. (company) — Filer of the 10-Q
• 20240504 (date) — End of the reporting period
• 0000950170-24-069337 (accession_number) — Unique identifier for the filing
• SAN DIEGO, CA (location) — Company's business and mailing address
• woof:AmendedRevolvingCreditFacilityMember (financial_instrument) — Details related to credit facilities
• woof:TwoThousandTwentyOneEquityIncentivePlanMember (plan) — Information on equity incentive plans

FAQ

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 per share WOOF The Nasdaq Stock Mar

Filing Documents

• woof-20240504.htm (10-Q) — 1310KB
• woof-ex10_1.htm (EX-10.1) — 24KB
• woof-ex10_2.htm (EX-10.2) — 118KB
• woof-ex10_3.htm (EX-10.3) — 105KB
• woof-ex10_4.htm (EX-10.4) — 107KB
• woof-ex10_5.htm (EX-10.5) — 107KB
• woof-ex10_6.htm (EX-10.6) — 107KB
• woof-ex10_7.htm (EX-10.7) — 89KB
• woof-ex31_1.htm (EX-31.1) — 15KB
• woof-ex31_2.htm (EX-31.2) — 15KB
• woof-ex32_1.htm (EX-32.1) — 9KB
• woof-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-069337.txt ( ) — 6006KB
• woof-20240504.xsd (EX-101.SCH) — 949KB
• woof-20240504_htm.xml (XML) — 611KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Comprehensive Income (Loss) 4 Consolidated Statements of Stockholders' / Members' Equity 5 Consolidated Statements of Cash Flows 6 Notes to Unaudited Consolidated Financial Statements 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II. OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 26

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Form 10-Q") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding: our expectations with respect to our revenue, expenses, profitability, and other operating results; our growth plans; our ability to compete effectively in the markets in which we participate; the execution on our transformation initiatives; and the impact of certain macroeconomic factors, including inflationary and interest rate pressures, consumer spending patterns, global supply chain constraints, and global economic and geopolitical developments, on our business. Forward-looking and other statements in this Form 10-Q may also address our progress, plans, and goals with respect to sustainability initiatives, and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in our filings with the U.S. Securities and Exchange Commission (the "SEC"). Such plans and goals may change, and statements regarding such plans and goals are not guarantees or promises that they will be met. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Such forward-looking statements can generally be identified by the use of forward-looking terms such as "believes," "expects," "may," "intends," "will," "shall," "s

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements. PETCO HEALTH AND WELLNESS COMPANY, INC. CONSOLIDATED BA LANCE SHEETS (In thousands, except per share amounts) May 4, 2024 February 3, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 89,717 $ 125,428 Receivables, less allowance for credit losses ($ 1,821 and $ 1,806 , respectively) 42,081 44,369 Merchandise inventories, net 681,020 684,502 Prepaid expenses 64,983 58,615 Other current assets 26,254 38,830 Total current assets 904,055 951,744 Fixed assets 2,177,472 2,173,015 Less accumulated depreciation ( 1,398,944 ) ( 1,356,648 ) Fixed assets, net 778,528 816,367 Operating lease right-of-use assets 1,357,576 1,384,050 Goodwill 980,064 980,297 Trade name 1,025,000 1,025,000 Other long-term assets 213,819 205,694 Total assets $ 5,259,042 $ 5,363,152 LIABILITIES AND EQUITY Current liabilities: Accounts payable and book overdrafts $ 464,524 $ 485,131 Accrued salaries and employee benefits 95,027 101,265 Accrued expenses and other liabilities 198,219 200,278 Current portion of operating lease liabilities 307,989 310,507 Current portion of long-term debt and other lease liabilities 3,680 15,962 Total current liabilities 1,069,439 1,113,143 Senior secured credit facilities, net, excluding current portion 1,574,486 1,576,223 Operating lease liabilities, excluding current portion 1,093,136 1,116,615 Deferred taxes, net 240,653 251,629 Other long-term liabilities 119,019 121,113 Total liabilities 4,096,733 4,178,723 Commitments and contingencies (Notes 4 and 8) Stockholders' equity: Class A common stock, $ 0.001 par value: Authorized - 1.0 billion shares; Issued and outstanding - 233.0 million and 231.2 million shares, respectively 233 231 Class B-1 common stock, $ 0.001 par value: Authorized - 75.0 million shares; Issued and outsta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1 . Summary of Significant Accounting Policies Basis of Presentation Petco Health and Wellness Company, Inc. (together with its consolidated subsidiaries, the "Company") is a pet health and wellness company focused on improving the lives of pets, pet parents, and its own partners. The Company manages its business as one reportable operating segment. In the opinion of management, the accompanying consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States ("GAAP"). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Consolidated Financial Statements. There have been no significant changes from the significant accounting policies disclosed in Note 1 of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2024. The accompanying consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. The accompanying consolidated financial statements and these Notes to Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2024 , from which the prior year balance sheet information herein was derived. Use of Estimates The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assump

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