Central Garden & Pet Company (CENT, Financial) filed Quarterly Report for the period ended 2010-06-26.
Central Garden & Pet Company has a market cap of $663.7 million; its shares were traded at around $10.3 with a P/E ratio of 10.2 and P/S ratio of 0.4. Central Garden & Pet Company had an annual average earning growth of 1.6% over the past 10 years.CENT is in the portfolios of Chuck Royce of Royce& Associates.
Garden Products net sales declined $24.4 million, or 9.1%, to $242.8 million for the three months ended June 26, 2010 from $267.2 million in the comparable fiscal 2009 period. Garden branded product sales decreased $29.8 million due primarily to a $12.4 million decrease in grass seed and an $8.7 million decrease in bird feed. The decrease in grass seed sales and in bird seed sales was due primarily to volume reductions attributable to lower demand and our decision to eliminate certain SKUs and customers in connection with our profitability and capital efficiency programs. Secondarily, the decreases were due to price reductions as a result of lower commodity costs. Sales of other manufacturers products increased $5.4 million.
Garden Products net sales declined $71.5 million, or 11.5%, to $550.1 million for the nine months ended June 26, 2010 from $621.6 million in the comparable fiscal 2009 period. Garden branded product sales decreased $84.1 million, due primarily to approximately $24.9 million decrease in grass seed, a $19.5 million decrease in bird feed, and a $10.2 million decrease in garden chemicals and control products, partially offset by increased sales of other manufacturers products of $12.6 million compared to the prior year period. The sales decreases in grass seed and garden chemicals and control products were due primarily to price reductions as a result of lower commodity costs while bird feed was mainly impacted by volume reductions.
Net cash provided by operating activities decreased $42.0 million, from $133.4 million for the nine months ended June 27, 2009 to $91.4 million for the nine months ended June 26, 2010. The decrease in cash provided by operating activities was due to the lower working capital balances at fiscal year-end 2009 ($382.6 million) versus fiscal year-end 2008 ($476.8 million) as a result of our efforts to lower our working capital requirements. We reduced working capital by $49.4 million as of June 26, 2010 ($410.1 million) compared to June 27, 2009 ($459.5 million). The balance as of June 26, 2010 reflects our seasonal working capital increase from fiscal year end 2009, whereas the balance at June 27, 2009 does not reflect a seasonal increase due the high working capital balances at fiscal year end 2008. These changes in inventory and accounts receivable were partially offset by increases in accounts payable and accrued liabilities compared to the prior year.
Net cash used by financing activities decreased $52.4 million, from $122.0 million for the nine months ended June 27, 2009, to $69.6 million for the nine months ended June 26, 2010. The decrease in cash used was due to higher net repayments of our long-term debt in the prior year, partially offset by the payment of financing costs associated with our issuance of $400 million of 8.25% senior subordinated notes and our new senior credit facility, as well increased repurchases of our common stock during the nine months ended June 26, 2010. For the nine month period ending June 26, 2010, we repurchased and retired 2.0 million shares of our voting common stock at an aggregate cost of approximately $19.6 million, or approximately $9.98 per share, and 2.8 million shares of our non-voting Class A common stock at an aggregate cost of approximately $27.0 million, or approximately $9.52 per share.
During the nine months ended June 26, 2010, we repurchased and retired 2.0 million shares of our voting common stock at an aggregate cost of approximately $19.6 million, or approximately $9.98 per share, and 2.8 million shares of our non-voting Class A common stock at an aggregate cost of approximately $27.0 million, or approximately $9.52 per share. In 2005, our Board of Directors authorized the repurchase of up to a total of $100 million of our common stock, of which approximately $99.7 million has been repurchased to date. On July 15, 2010, our Board of Directors authorized a new $100 million share repurchase program. We expect to continue our repurchases from time to time depending on market conditions.
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Central Garden & Pet Company has a market cap of $663.7 million; its shares were traded at around $10.3 with a P/E ratio of 10.2 and P/S ratio of 0.4. Central Garden & Pet Company had an annual average earning growth of 1.6% over the past 10 years.CENT is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Pet Products net sales increased $7.7 million, or 3.6%, to $222.7 million for the three months ended June 26, 2010 from $215.0 million in the comparable fiscal 2009 period. Pet branded product sales increased $5.6 million, due primarily to a sales increase of $3.1 million of animal health products, $2.2 million in our dog and cat category, and a $2.1 million increase in sales of other manufacturers products from the prior year quarter. The increase in sales of animal health products was partially offset by a decrease in sales of approximately $2.2 million due primarily to a supply issue in a product-line, now expected to continue at a reduced level through our fiscal year end, and sales in the prior year quarter from a marketing license no longer held by us.Garden Products net sales declined $24.4 million, or 9.1%, to $242.8 million for the three months ended June 26, 2010 from $267.2 million in the comparable fiscal 2009 period. Garden branded product sales decreased $29.8 million due primarily to a $12.4 million decrease in grass seed and an $8.7 million decrease in bird feed. The decrease in grass seed sales and in bird seed sales was due primarily to volume reductions attributable to lower demand and our decision to eliminate certain SKUs and customers in connection with our profitability and capital efficiency programs. Secondarily, the decreases were due to price reductions as a result of lower commodity costs. Sales of other manufacturers products increased $5.4 million.
Garden Products net sales declined $71.5 million, or 11.5%, to $550.1 million for the nine months ended June 26, 2010 from $621.6 million in the comparable fiscal 2009 period. Garden branded product sales decreased $84.1 million, due primarily to approximately $24.9 million decrease in grass seed, a $19.5 million decrease in bird feed, and a $10.2 million decrease in garden chemicals and control products, partially offset by increased sales of other manufacturers products of $12.6 million compared to the prior year period. The sales decreases in grass seed and garden chemicals and control products were due primarily to price reductions as a result of lower commodity costs while bird feed was mainly impacted by volume reductions.
Net cash provided by operating activities decreased $42.0 million, from $133.4 million for the nine months ended June 27, 2009 to $91.4 million for the nine months ended June 26, 2010. The decrease in cash provided by operating activities was due to the lower working capital balances at fiscal year-end 2009 ($382.6 million) versus fiscal year-end 2008 ($476.8 million) as a result of our efforts to lower our working capital requirements. We reduced working capital by $49.4 million as of June 26, 2010 ($410.1 million) compared to June 27, 2009 ($459.5 million). The balance as of June 26, 2010 reflects our seasonal working capital increase from fiscal year end 2009, whereas the balance at June 27, 2009 does not reflect a seasonal increase due the high working capital balances at fiscal year end 2008. These changes in inventory and accounts receivable were partially offset by increases in accounts payable and accrued liabilities compared to the prior year.
Net cash used by financing activities decreased $52.4 million, from $122.0 million for the nine months ended June 27, 2009, to $69.6 million for the nine months ended June 26, 2010. The decrease in cash used was due to higher net repayments of our long-term debt in the prior year, partially offset by the payment of financing costs associated with our issuance of $400 million of 8.25% senior subordinated notes and our new senior credit facility, as well increased repurchases of our common stock during the nine months ended June 26, 2010. For the nine month period ending June 26, 2010, we repurchased and retired 2.0 million shares of our voting common stock at an aggregate cost of approximately $19.6 million, or approximately $9.98 per share, and 2.8 million shares of our non-voting Class A common stock at an aggregate cost of approximately $27.0 million, or approximately $9.52 per share.
During the nine months ended June 26, 2010, we repurchased and retired 2.0 million shares of our voting common stock at an aggregate cost of approximately $19.6 million, or approximately $9.98 per share, and 2.8 million shares of our non-voting Class A common stock at an aggregate cost of approximately $27.0 million, or approximately $9.52 per share. In 2005, our Board of Directors authorized the repurchase of up to a total of $100 million of our common stock, of which approximately $99.7 million has been repurchased to date. On July 15, 2010, our Board of Directors authorized a new $100 million share repurchase program. We expect to continue our repurchases from time to time depending on market conditions.
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