Central Garden & Pet Co.
) reported first-quarter fiscal 2014 net loss of 26 cents per
share, which was narrower than the Zacks Consensus Estimate of
loss of 31 cents and loss of 32 cents reported in the year-ago
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The company's top line dropped 0.7% year over year to $290.5
million in the quarter and also fell short of the Zacks Consensus
Estimate of $298 million.
However, gross profit grew 3.6% to $79.7 million, while gross
margin increased approximately 110 basis points (bps) to 27.4%.
Improved gross profit, along with lower selling, general and
administrative expenses as a percentage of sales led to the
narrowed operating loss for the quarter. The company's operating
loss came in $8.4 million, compared with a loss of $ 13.1 million
in prior-year quarter.
segment's net sales decreased 5% year over year to $184.6 million
due to sales decline in both wild bird feed and aquatic products.
The segment's branded product sales came in at $140.5 million
while sales of other manufacturers' products were $44.1 million
in the quarter. The segment's operating income increased nearly
41.2% year over year to $14.4 million and its operating margin
expanded 260 bps driven by strong performance in the dog and cat
Revenues at the
segment increased 9% year over year to $105.9 million on the back
of higher seasonal décor and rise in wild bird feed and
professional fertilizer revenues. The segment's branded product
revenues were $92.8 million, while sale of other manufacturers'
products was $13.1 million in the quarter. The segment reported
an operating loss of $6.2 million, as against $8.5 million of
operating loss in the prior-year quarter. Operating margin
increased 290 bps, mainly attributable to increased profitability
across seasonal décor and wild bird feed businesses.
Other Financial Details
The company, which competes with
), ended the year with cash and cash equivalents of $16.7
million, total debt of $449.5 million and shareholders' equity of
$457.9 million, excluding non-controlling interest of $0.6
million. The company incurred capital expenditures of $5.4
million for the said quarter.
As of Dec 28, 2013, the company had no borrowings outstanding
under the senior secured asset-based revolving credit facility.
During the quarter, the company did not repurchase shares. Nearly
$50 million worth of shares remains to be repurchased under the
current share buyback authorization.
Currently, Central garden carries a Zacks Rank #3 (Hold).