Central Garden & Pet Company (CENT, Financial) filed Quarterly Report for the period ended 2010-03-27.
Central Garden & Pet Company has a market cap of $708.8 million; its shares were traded at around $11 with a P/E ratio of 11.1 and P/S ratio of 0.5. Central Garden & Pet Company had an annual average earning growth of 1.6% over the past 10 years.CENT is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates.
Garden Products net sales declined $47.1 million, or 13.3%, to $307.3 million for the six months ended March 27, 2010 from $354.4 million in the comparable fiscal 2009 period. Garden branded product sales decreased $54.4 million, due primarily to an approximately $12.6 million decrease in grass seed, a $10.8 million decrease in bird feed and a $9 million decrease in garden chemicals and control products, and sales of other manufacturers products increased $7.3 million from the prior year period. The sales decreases in grass seed and bird feed were due primarily to price reductions as a result of lower commodity costs while garden chemicals and control products were impacted by both pricing and volume reductions.
Net interest expense for the six months ended March 27, 2010 increased $2.7 million or 22.6%, to $14.7 million from $12.0 million for the six months ended March 28, 2009. In March 2010, we issued $400 million 2018 Notes, tendered for our outstanding 2013 Notes and paid the outstanding indebtedness under our senior term loan. As a result of this refinancing, we incurred an additional $3.2 million in interest expense comprised primarily of the remaining unamortized deferred charges related to the retired debt and the premium paid for the tender and call on the 2013 Notes.
Net cash used by financing activities increased $60.3 million, from $20.9 million of cash provided by financing activities for the six months ended March 28, 2009, to $39.4 million of cash used in financing activities for the six months ended March 27, 2010. The increase in cash used was due primarily to the tender and purchase of our 9.125% senior subordinated notes and repayment of our senior term loan facility, the payment of financing costs associated with our issuance of $400 million 8.25% senior subordinated notes, as well increased repurchases of our common stock during the six months ended March 27, 2010. We repurchased and retired 1.7 million shares of our voting common stock at an aggregate cost of approximately $17.3 million, or approximately $10.01 per share, and 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.7 million, or approximately $9.61 per share.
On March 8, 2010, we issued $400 million aggregate principal amount of the 2018 Notes. We used the proceeds together with available cash to purchase our outstanding $135.3 million aggregate principal amount of 2013 Notes, including accrued interest, to repay the $267.1 million outstanding under our senior term loan maturing February 2012 and pay fees and expenses related to the offering. We received tenders and consents from the holders of $135.3 million of our 2013 Notes, including $12.8 million held in escrow for our benefit, which was previously recorded as a reduction of debt for accounting purposes against the 2013 Notes. The remaining $14.7 million of 2013 Notes on the condensed consolidated balance sheets as of March 27, 2010 were redeemed on April 21, 2010.
During the six months ended March 27, 2010, we repurchased and retired 1.7 million shares of our voting common stock at an aggregate cost of approximately $17.3 million, or approximately $10.01 per share, and 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.7 million, or approximately $9.61 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 $89.0 million has been repurchased to date. We expect to continue our repurchases from time to time depending on market conditions and subject to the ability to effect repurchases under our credit facility.
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Central Garden & Pet Company has a market cap of $708.8 million; its shares were traded at around $11 with a P/E ratio of 11.1 and P/S ratio of 0.5. Central Garden & Pet Company had an annual average earning growth of 1.6% over the past 10 years.CENT is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Garden Products net sales declined $28.0 million, or 11.3%, to $219.6 million for the three months ended March 27, 2010 from $247.6 million in the comparable fiscal 2009 period. Garden branded product sales decreased $33.9 million, due primarily to an approximately $12.0 million decrease in garden chemicals and control products and approximately $4 to $5 million decreases in each of grass seed, bird feed and pottery, and sales of other manufacturers products increased $5.9 million from the prior year quarter. The sales decreases in grass seed and bird feed were due primarily to price reductions as a result of lower commodity costs, while garden chemicals and control products and pottery were impacted by both pricing and volume reductions.Garden Products net sales declined $47.1 million, or 13.3%, to $307.3 million for the six months ended March 27, 2010 from $354.4 million in the comparable fiscal 2009 period. Garden branded product sales decreased $54.4 million, due primarily to an approximately $12.6 million decrease in grass seed, a $10.8 million decrease in bird feed and a $9 million decrease in garden chemicals and control products, and sales of other manufacturers products increased $7.3 million from the prior year period. The sales decreases in grass seed and bird feed were due primarily to price reductions as a result of lower commodity costs while garden chemicals and control products were impacted by both pricing and volume reductions.
Net interest expense for the six months ended March 27, 2010 increased $2.7 million or 22.6%, to $14.7 million from $12.0 million for the six months ended March 28, 2009. In March 2010, we issued $400 million 2018 Notes, tendered for our outstanding 2013 Notes and paid the outstanding indebtedness under our senior term loan. As a result of this refinancing, we incurred an additional $3.2 million in interest expense comprised primarily of the remaining unamortized deferred charges related to the retired debt and the premium paid for the tender and call on the 2013 Notes.
Net cash used by financing activities increased $60.3 million, from $20.9 million of cash provided by financing activities for the six months ended March 28, 2009, to $39.4 million of cash used in financing activities for the six months ended March 27, 2010. The increase in cash used was due primarily to the tender and purchase of our 9.125% senior subordinated notes and repayment of our senior term loan facility, the payment of financing costs associated with our issuance of $400 million 8.25% senior subordinated notes, as well increased repurchases of our common stock during the six months ended March 27, 2010. We repurchased and retired 1.7 million shares of our voting common stock at an aggregate cost of approximately $17.3 million, or approximately $10.01 per share, and 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.7 million, or approximately $9.61 per share.
On March 8, 2010, we issued $400 million aggregate principal amount of the 2018 Notes. We used the proceeds together with available cash to purchase our outstanding $135.3 million aggregate principal amount of 2013 Notes, including accrued interest, to repay the $267.1 million outstanding under our senior term loan maturing February 2012 and pay fees and expenses related to the offering. We received tenders and consents from the holders of $135.3 million of our 2013 Notes, including $12.8 million held in escrow for our benefit, which was previously recorded as a reduction of debt for accounting purposes against the 2013 Notes. The remaining $14.7 million of 2013 Notes on the condensed consolidated balance sheets as of March 27, 2010 were redeemed on April 21, 2010.
During the six months ended March 27, 2010, we repurchased and retired 1.7 million shares of our voting common stock at an aggregate cost of approximately $17.3 million, or approximately $10.01 per share, and 1.9 million shares of our non-voting Class A common stock at an aggregate cost of approximately $18.7 million, or approximately $9.61 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 $89.0 million has been repurchased to date. We expect to continue our repurchases from time to time depending on market conditions and subject to the ability to effect repurchases under our credit facility.
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