Central Garden & Pet Company (CENT, Financial) filed Quarterly Report for the period ended 2009-12-26.
Central Garden & Pet Company has a market cap of $665.2 million; its shares were traded at around $9.78 with a P/E ratio of 10.5 and P/S ratio of 0.4. Central Garden & Pet Company had an annual average earning growth of 5.9% over the past 10 years.CENT is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
During the quarter ended December 26, 2009, we repurchased and retired approximately 1.7 million shares of our voting common stock at an aggregate cost of approximately $16.6 million, or approximately $9.96 per share, and approximately 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.0 million, or approximately $9.58 per share.
Net sales for the three months ended December 26, 2009 decreased $23.3 million, or 8.0%, to $269.2 million from $292.5 million for the three months ended December 27, 2008. Our branded product sales decreased $22.2 million and sales of other manufacturers products decreased $1.1 million. Pet Products net sales declined $4.2 million, or 2.3%, to $181.5 million for the three months ended December 26, 2009 from $185.7 million in the comparable fiscal 2008 period. Pet branded product sales decreased $1.7 million and sales of other manufacturers products decreased $2.5 million from the prior year due primarily to decreased sales of pet bird and small animal products and aquatic products due to lower demand. Garden Products net sales decreased $19.1 million, or 17.9%, to $87.7 million for the three months ended December 26, 2009 from $106.8 million in the comparable fiscal 2008 period. Garden branded product sales decreased $20.5 million and sales of other manufacturers products increased $1.4 million from the prior year due primarily to an approximately $8.5 million decrease of grass seed, approximately $6.1 million of bird feed and approximately $4.4 million of winter seasonal products. The sales decrease in grass seed was due primarily to price reductions as a result of lower commodity costs while the decrease in bird feed and winter seasonal products was volume driven.
Gross profit for the three months ended December 26, 2009 increased $2.3 million, or 2.7%, to $87.8 million from $85.5 million for the three months ended December 27, 2008. Gross profit as a percentage of net sales increased from 29.2% for the three months ended December 27, 2008 to 32.6% for the three months ended December 26, 2009. Gross profit as a percentage of net sales increased in both segments. Gross profit increased $1.3 million in Pet Products due primarily to increased sales of higher margin products. Gross profit increased $1.0 million in Garden Products due primarily to lower raw material costs and product mix changes.
Net cash used by financing activities decreased $3.9 million, from $39.4 million, for the three months ended December 27, 2008, to $35.5 million for the three months ended December 26, 2009. The decrease was due primarily to payments on our revolving line of credit and the repayment of $21.6 million of our term loan under the mandatory prepayment provisions in our credit facility during the prior year period, which were partially offset by increased repurchases of our common stock during the three months ended December 26, 2009. We repurchased and retired 1.7 million shares of our voting common stock in the open market at an aggregate cost of approximately $16.6 million, or approximately $9.96 per share, and 1.9 million shares of our non-voting Class A common stock in the open market at an aggregate cost of approximately $18.0 million, or approximately $9.58 per share.
During the three months ended December 26, 2009, we repurchased 3.5 million shares of our common stock in the open market at an aggregate cost of approximately $34.6 million, or approximately $9.76 per share. Our Board of Directors has authorized the repurchase of up to a total of $100 million of our common stock, of which approximately $87.6 million has been repurchased to date.
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Central Garden & Pet Company has a market cap of $665.2 million; its shares were traded at around $9.78 with a P/E ratio of 10.5 and P/S ratio of 0.4. Central Garden & Pet Company had an annual average earning growth of 5.9% over the past 10 years.CENT is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Bruce Kovner of Caxton Associates, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Central Garden & Pet Company is a leading innovator, marketer and producer of quality branded products. We are one of the largest suppliers in the pet and lawn and garden supplies industries in the United States. The total pet industry is estimated to be approximately $31 billion in annual retail sales. We estimate the annual retail sales of the pet supplies and ultra-premium pet food markets in the categories in which we participate to be approximately $15 billion. The total lawn and garden industry in the United States is estimated to be approximately $24 billion in annual retail sales. We estimate the annual retail sales of the lawn and garden supplies markets in the categories in which we participate to be approximately $6.2 billion.During the quarter ended December 26, 2009, we repurchased and retired approximately 1.7 million shares of our voting common stock at an aggregate cost of approximately $16.6 million, or approximately $9.96 per share, and approximately 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.0 million, or approximately $9.58 per share.
Net sales for the three months ended December 26, 2009 decreased $23.3 million, or 8.0%, to $269.2 million from $292.5 million for the three months ended December 27, 2008. Our branded product sales decreased $22.2 million and sales of other manufacturers products decreased $1.1 million. Pet Products net sales declined $4.2 million, or 2.3%, to $181.5 million for the three months ended December 26, 2009 from $185.7 million in the comparable fiscal 2008 period. Pet branded product sales decreased $1.7 million and sales of other manufacturers products decreased $2.5 million from the prior year due primarily to decreased sales of pet bird and small animal products and aquatic products due to lower demand. Garden Products net sales decreased $19.1 million, or 17.9%, to $87.7 million for the three months ended December 26, 2009 from $106.8 million in the comparable fiscal 2008 period. Garden branded product sales decreased $20.5 million and sales of other manufacturers products increased $1.4 million from the prior year due primarily to an approximately $8.5 million decrease of grass seed, approximately $6.1 million of bird feed and approximately $4.4 million of winter seasonal products. The sales decrease in grass seed was due primarily to price reductions as a result of lower commodity costs while the decrease in bird feed and winter seasonal products was volume driven.
Gross profit for the three months ended December 26, 2009 increased $2.3 million, or 2.7%, to $87.8 million from $85.5 million for the three months ended December 27, 2008. Gross profit as a percentage of net sales increased from 29.2% for the three months ended December 27, 2008 to 32.6% for the three months ended December 26, 2009. Gross profit as a percentage of net sales increased in both segments. Gross profit increased $1.3 million in Pet Products due primarily to increased sales of higher margin products. Gross profit increased $1.0 million in Garden Products due primarily to lower raw material costs and product mix changes.
Net cash used by financing activities decreased $3.9 million, from $39.4 million, for the three months ended December 27, 2008, to $35.5 million for the three months ended December 26, 2009. The decrease was due primarily to payments on our revolving line of credit and the repayment of $21.6 million of our term loan under the mandatory prepayment provisions in our credit facility during the prior year period, which were partially offset by increased repurchases of our common stock during the three months ended December 26, 2009. We repurchased and retired 1.7 million shares of our voting common stock in the open market at an aggregate cost of approximately $16.6 million, or approximately $9.96 per share, and 1.9 million shares of our non-voting Class A common stock in the open market at an aggregate cost of approximately $18.0 million, or approximately $9.58 per share.
During the three months ended December 26, 2009, we repurchased 3.5 million shares of our common stock in the open market at an aggregate cost of approximately $34.6 million, or approximately $9.76 per share. Our Board of Directors has authorized the repurchase of up to a total of $100 million of our common stock, of which approximately $87.6 million has been repurchased to date.
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