0000887733FALSE1340 Treat Boulevard, Suite 600Walnut CreekCalifornia00008877332024-05-082024-05-080000887733us-gaap:CommonStockMember2024-05-082024-05-080000887733us-gaap:CommonClassAMember2024-05-082024-05-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________

FORM 8-K
CURRENT REPORT

Pursuant To Section 13 of 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported)May 8, 2024
CENTRAL_GARDEN & PET_B_Lge - Cropped.jpg

Central Garden & Pet Company
(Exact name of registrant as specified in its charter)


Delaware001-3326868-0275553
(State or other jurisdiction
of incorporation)
(Commission File
Number)
(IRS Employer
 Identification No.)


1340 Treat Boulevard, Suite 600, Walnut Creek, California94597
(Address of principal executive offices)(Zip Code)


Registrant's telephone number, including area code
(925) 948-4000

(Former name or former address if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockCENTThe NASDAQ Stock Market LLC
Class A Common StockCENTAThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange act of 1934 (§240.12b-2 of this chapter).
Emerging growth company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     




Item 2.02 Results of Operations and Financial Condition.

On May 8, 2024, Central Garden & Pet Company issued a press release announcing its financial results for the second quarter fiscal year 2024 ended March 30, 2024. A copy of the press release is attached as Exhibit 99.1.


Item 9.01 Financial Statements and Exhibits.



Exhibit
Number		Description
Exhibit 99.1
Exhibit 104Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CENTRAL GARDEN & PET COMPANY



By: /s/ NICHOLAS LAHANAS
Nicholas Lahanas
Chief Financial Officer
(Principal Financial Officer)
Dated: May 8, 2024
Exhibit 99.1






CENTRAL GARDEN & PET ANNOUNCES Q2 FISCAL 2024 FINANCIAL RESULTS

Fiscal 2024 Q2 net sales of $900 million compared to $909 million a year ago
Fiscal 2024 Q2 GAAP EPS of $0.93 vs. $0.72 a year ago, Non-GAAP EPS of $0.99
Maintains outlook for fiscal 2024 non-GAAP EPS of $2.00 or better ($2.50 or better before the February 2024 stock dividend)


WALNUT CREEK, Calif. – Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) (“Central”), a market leader in the Pet and Garden industries, today announced financial results for its fiscal 2024 second quarter ended March 30, 2024.
“We delivered a solid second quarter with earnings per share well ahead of prior year. We are particularly pleased with the progress on our Cost and Simplicity program,” said Beth Springer, Interim CEO of Central Garden & Pet. “With a large part of the garden season still in front of us and some continuing external challenges, we are maintaining our outlook for the fiscal year. Importantly, our teams remain focused on executing our long-term strategy.”
Fiscal 2024 Second Quarter Financial Results
Net sales were $900 million compared to $909 million a year ago, a decrease of 1%. Organic net sales also decreased 1%.
Gross profit was $279 million compared to $260 million in the prior year. Non-GAAP gross profit was $281 million. Gross margin increased 240 basis points to 31.0% compared to 28.6%. Non-GAAP gross margin was 31.3%. Both segments benefited from prior year projects made under Central's Cost and Simplicity program including the sale of the independent garden channel distribution business and exit of some private label pet bed product lines, as well as moderating inflation.
Operating income was $93 million compared to $78 million a year ago, an increase of 20%. On a non-GAAP basis, operating income was $99 million. Operating margin increased 180 basis points to 10.4% compared to 8.6%. On a non-GAAP basis, operating margin was 11.0%. The increase was driven by improved gross margin.
Net interest expense was $11 million compared to $15 million a year ago driven by higher interest income from higher cash balances and higher interest rates.


Net income was $62 million compared to $48 million a year ago, an increase of 29%. On a non-GAAP basis, net income was $66 million. Earnings per share were $0.93 compared to $0.72, an increase of $0.21. On a non-GAAP basis, earnings per share were $0.99. Adjusted EBITDA was $124 million compared to $107 million a year ago.
The effective tax rate was 23.4% compared to 23.9% in the prior year.
Pet Segment Fiscal 2024 Second Quarter Results
Net sales for the Pet segment were $480 million compared to $475 million in the prior year, an increase of 1% driven by growth in Consumables businesses and the recent TDBBS acquisition. Organic net sales decreased 3% excluding the impact of TDBBS.
Pet segment operating income was $63 million compared to $55 million a year ago, an increase of 13%. Operating margin increased 140 basis points to 13.0% compared to 11.6% driven by improved gross margin. Pet segment adjusted EBITDA was $74 million compared to $66 million in the prior year.
Garden Segment Fiscal 2024 Second Quarter Results
Net sales for the Garden segment were $420 million compared to $434 million a year ago, a decrease of 3%. Organic net sales increased 2% excluding the impact of the sale of the independent garden channel distribution business. Growth in Live Plants, Grass Seed and Controls & Fertilizer more than offset lower sales in Wild Bird.
Garden segment operating income was $57 million compared to $50 million in the prior year, an increase of 15%. On a non-GAAP basis, operating income was $62 million. Operating margin increased 220 basis point to 13.6% compared to 11.4%. On a non-GAAP basis, operating margin was 14.8%. The increase was driven by improved gross margin. Garden segment adjusted EBITDA was $73 million compared to $60 million a year ago.

Liquidity and Debt
The cash balance at the end of the quarter was $301 million compared to $61 million a year ago, driven by a reduction in inventory due to converting inventory to cash over the last 12 months.


Cash used by operations during the quarter was $25 million compared to $34 million a year ago.
Total debt as of March 30, 2024, and March 25, 2023 was $1.2 billion. The leverage ratio, as defined in Central's credit agreement, at the end of the second quarter was 2.9x compared to 3.3x at the end of the prior year quarter.
Cost and Simplicity Program

Central continues to advance its multi-year Cost and Simplicity program consisting of a pipeline of projects across procurement, manufacturing, logistics, portfolio management and administrative costs to simplify its business and improve efficiency across the organization.
In the second quarter of fiscal 2024, Central initiated the closure of a manufacturing facility in Chico, CA, and began the Southeast consolidation of four distribution locations into one modern facility. As a result, Central incurred $5.3 million of one-time costs, including $2.5 million in cost of goods sold and $2.8 million in selling, general and administrative costs, the majority of which were non-cash.
Fiscal 2024 Guidance
Central continues to expect fiscal 2024 non-GAAP EPS to be $2.00 or better ($2.50 or better before the February 2024 stock dividend).
This outlook reflects uncertain consumer demand and retailer dynamics and an environment of macroeconomic and geopolitical volatility. It includes modest carryover pricing actions to help mitigate inflationary headwinds. This outlook excludes the impact of any acquisitions, divestitures or restructuring activities that may occur during fiscal 2024, including any projects under the Cost and Simplicity program and the recent TDBBS acquisition. Central expects fiscal 2024 capital spending to be approximately $70 million.


Conference Call
Central's senior management will hold a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its fiscal 2024 second quarter results and provide a general business update. The conference call and related materials can be accessed at http://ir.central.com.
Alternatively, to listen to the call by telephone, dial (201) 689-8345 (domestic and international) using confirmation #13744528.
About Central Garden & Pet
Central Garden & Pet Company (NASDAQ: CENT) (NASDAQ: CENTA) understands home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With fiscal 2023 net sales of $3.3 billion, Central is on a mission to lead the future of the Pet and Garden industries. The Company’s innovative and trusted products are dedicated to helping lawns grow greener, gardens bloom bigger, pets live healthier, and communities grow stronger. Central is home to a leading portfolio of more than 65 high-quality brands including Amdro®, Aqueon®, Cadet®, Farnam®, Ferry-Morse®, Four Paws®, Kaytee®, K&H®, Nylabone® and Pennington®, strong manufacturing and distribution capabilities, and a passionate, entrepreneurial growth culture. Central is based in Walnut Creek, California, with 6,700 employees primarily across North America. Visit www.central.com to learn more.

Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts, including statements concerning evolving consumer demand and unfavorable retailer dynamics, anticipated pricing actions, productivity initiatives and estimated capital spending, and earnings guidance for fiscal 2024, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. All forward-looking statements are based upon Central's current expectations and various assumptions. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release including, but not limited to, the following factors:
•high inflation and interest rates, and other adverse macro-economic conditions;
•fluctuations in market prices for seeds and grains and other raw materials;
•our inability to pass through cost increases in a timely manner;
•our ability to recruit and retain new members of our management team and employees, including a Chief Executive Officer, to support our businesses;
•fluctuations in energy prices, fuel and related petrochemical costs;


•declines in consumer spending and increased inventory risk during economic downturns;
•reductions in demand for product categories that benefited from the COVID-19 pandemic;
•adverse weather conditions;
•the success of our Central to Home strategy and our Cost and Simplicity program;
•risks associated with our acquisition strategy, including our ability to successfully integrate acquisitions and the impact of purchase accounting on our financial results;
•material weaknesses relating to the internal controls of recently acquired companies;
•seasonality and fluctuations in our operating results and cash flow;
•supply shortages in pet birds, small animals and fish;
•dependence on a small number of customers for a significant portion of our business;
•consolidation trends in the retail industry;
•risks associated with new product introductions, including the risk that our new products will not produce sufficient sales to recoup our investment;
•competition in our industries;
•continuing implementation of an enterprise resource planning information technology system;
•potential environmental liabilities;
•risks associated with international sourcing;
•impacts of tariffs or a trade war;
•access to and cost of additional capital;
•potential goodwill or intangible asset impairment;
•our ability to remediate material weaknesses in our internal control over financial reporting;
•our dependence upon our key executives;
•our ability to protect our trademarks and other proprietary rights;
•litigation and product liability claims;
•regulatory issues;
•the impact of product recalls;
•potential costs and risks associated with actual or potential cyberattacks;
•potential dilution from issuance of authorized shares;
•the voting power associated with our Class B stock; and
•the impact of new accounting regulations and the possibility our effective tax rate will increase as a result of future changes in the corporate tax rate or other tax law changes.

These risks and others are described in Central’s Securities and Exchange Commission filings. Central undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise. Central has not filed its Form 10-Q for the fiscal quarter ended March 30, 2024, so all financial results are preliminary and subject to change.



Investor Relations Contact
Friederike Edelmann
VP, Investor Relations & Corporate Sustainability
(925) 412-6726
fedelmann@central.com


# # #
(Tables Follow)


CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts, unaudited)
March 30, 2024March 25, 2023September 30, 2023
ASSETS
Current assets:
Cash and cash equivalents$301,332 $60,607 $488,730 
Restricted cash14,197 13,475 14,143 
Accounts receivable (less allowance for credit losses and customer allowances of $27,677, $28,283 and $25,797)
578,237 564,874 332,890 
Inventories, net914,352 966,900 838,188 
Prepaid expenses and other42,501 48,019 33,172 
Total current assets1,850,619 1,653,875 1,707,123 
Plant, property and equipment, net387,203 395,788 391,768 
Goodwill546,436 546,436 546,436 
Other intangible assets, net480,910 525,301 497,228 
Operating lease right-of-use assets170,849 174,435 173,540 
Other assets104,002 54,963 62,553 
Total$3,540,019 $3,350,798 $3,378,648 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$237,310 $225,311 $190,902 
Accrued expenses267,813 201,286 216,241 
Current lease liabilities51,045 49,082 50,597 
Current portion of long-term debt322 270 247 
Total current liabilities556,490 475,949 457,987 
Long-term debt1,188,955 1,212,053 1,187,956 
Long-term lease liabilities134,723 135,695 135,621 
Deferred income taxes and other long-term obligations147,683 154,854 144,271 
Equity:
Common stock, $0.01 par value: 11,077,612, 11,236,635 and 11,077,612 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023111 112 111 
Class A common stock, $0.01 par value: 54,659,683, 54,822,098 and 54,472,902 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 2023547 548 544 
Class B stock, $0.01 par value: 1,602,374 shares outstanding at March 30, 2024, March 25, 2023 and September 30, 202316 16 16 
Additional paid-in capital592,136 587,243 594,282 
Retained earnings920,803 786,776 859,370 
Accumulated other comprehensive loss(2,825)(3,601)(2,970)
Total Central Garden & Pet Company shareholders’ equity1,510,788 1,371,094 1,451,353 
Noncontrolling interest1,379 1,153 1,460 
Total equity1,512,167 1,372,247 1,452,813 
Total$3,540,018 $3,350,798 $3,378,648 



CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months EndedSix Months Ended
March 30, 2024March 25, 2023March 30, 2024March 25, 2023
Net sales$900,090 $909,004 $1,534,623 $1,536,667 
Cost of goods sold 621,210 649,366 1,076,898 1,105,330 
Gross profit278,880 259,638 457,725 431,337 
Selling, general and administrative expenses185,433 181,597 355,866 352,890 
Operating income93,447 78,041 101,859 78,447 
Interest expense(14,376)(14,876)(28,692)(29,345)
Interest income2,903 186 7,512 879 
Other (expense) income(171)595 822 2,294 
Income before income taxes and noncontrolling interest81,803 63,946 81,501 52,275 
Income tax expense19,134 15,268 18,265 12,446 
Income including noncontrolling interest62,669 48,678 63,236 39,829 
Net income attributable to noncontrolling interest682 563 819 147 
Net income attributable to Central Garden & Pet Company$61,987 $48,115 $62,417 $39,682 
Net income per share attributable to Central Garden & Pet Company:
Basic$0.94 $0.73 $0.95 $0.61 
Diluted$0.93 $0.72 $0.93 $0.59 
Weighted average shares used in the computation of net income per share:
Basic65,638 65,554 65,526 65,576 
Diluted66,831 66,918 66,815 66,900 



CENTRAL GARDEN & PET COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
 Six Months Ended
 March 30, 2024March 25, 2023
Cash flows from operating activities:
Net income$63,236 $39,829 
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization45,357 43,801 
Amortization of deferred financing costs1,340 1,349 
Non-cash lease expense25,753 25,369 
Stock-based compensation8,927 13,327 
Deferred income taxes2,673 7,486 
Other operating activities1,811 136 
Change in assets and liabilities (excluding businesses acquired):
Accounts receivable(240,408)(187,745)
Inventories(59,263)(27,152)
Prepaid expenses and other assets(7,492)(3,868)
Accounts payable41,475 15,421 
Accrued expenses46,785 (462)
Other long-term obligations673 (21)
Operating lease liabilities(25,169)(24,542)
Net cash used by operating activities(94,302)(97,072)
Cash flows from investing activities:
Additions to plant, property and equipment(19,478)(30,228)
Payments to acquire companies, net of cash acquired(59,818)— 
Investments(850)(500)
Other investing activities(140)(100)
Net cash used in investing activities(80,286)(30,828)
Cash flows from financing activities:
Repayments of long-term debt(159)(182)
Borrowings under revolving line of credit— 48,000 
Repayments under revolving line of credit— (23,000)
Repurchase of common stock, including shares surrendered for tax withholding(12,055)(16,165)
Payment of contingent consideration liability(57)(12)
Distribution to noncontrolling interest(900)— 
Net cash (used) provided by financing activities(13,171)8,641 
Effect of exchange rate changes on cash, cash equivalents and restricted cash415 1,157 
Net decrease in cash, cash equivalents and restricted cash(187,344)(118,102)
Cash, cash equivalents and restricted cash at beginning of period502,873 192,184 
Cash, cash equivalents and restricted cash at end of period$315,529 $74,082 
Supplemental information:
Cash paid for interest$28,695 $29,343 
Cash paid for income taxes$13,775 $1,889 
New operating lease right of use assets$24,652 $13,776 



Use of Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including non-GAAP net income and diluted net income per share, non-GAAP operating income, adjusted EBITDA and organic net sales. Management uses these non-GAAP financial measures that exclude the impact of specific items (described below) in making financial, operating and planning decisions and in evaluating our performance. Also, Management believes that these non-GAAP financial measures may be useful to investors in their assessment of our ongoing operating performance and provide additional meaningful comparisons between current results and results in prior operating periods. While Management believes that non-GAAP measures are useful supplemental information, such adjusted results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.
Adjusted EBITDA is defined by us as income before income tax, net other expense, net interest expense and depreciation and amortization and stock-based compensation expense (or operating income plus depreciation and amortization expense and stock-based compensation expense). Adjusted EBITDA further excludes one-time charges related to facility closures. We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplemental measure in evaluating the cash flows and performance of our business and provides greater transparency into our results of operations. Adjusted EBITDA is used by our management to perform such evaluations. Adjusted EBITDA should not be considered in isolation or as a substitute for cash flow from operations, income from operations or other income statement measures prepared in accordance with GAAP. We believe that adjusted EBITDA is frequently used by investors, securities analysts and other interested parties in their evaluation of companies, many of which present adjusted EBITDA when reporting their results. Other companies may calculate adjusted EBITDA differently and it may not be comparable.
The reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables below.
Non-GAAP financial measures reflect adjustments based on the following items:
•Facility closures: we have excluded the impact of the closure of our garden controls manufacturing facility in Chico, California and the Southeast consolidation of our distribution facilities as they represent infrequent transactions that occur in limited circumstances that impact the comparability between operating periods. We believe the adjustment of closure and network optimization costs supplements the GAAP information with a measure that may be used to assess the sustainability of our operating performance.
From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.
(1)During the second quarter of fiscal 2024, we recognized incremental expense of $5.3 million in the consolidated statement of operations, from the closure of a manufacturing facility in Chico, California and the consolidation of our Southeast distribution network.


Net Income and Diluted Net Income Per Share ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended		GAAP to Non-GAAP Reconciliation
Six Months Ended
March 30, 2024March 25, 2023March 30, 2024March 25, 2023
(in thousands, except per share amounts)
GAAP net income attributable to Central Garden & Pet Company

$61,987 $48,115 $62,417 $39,682 
Facility closures(1)5,270 — 5,270 — 
Tax effect of facility closures(1,233)— (1,233)— 
Non-GAAP net income attributable to Central Garden & Pet Company$66,024 $48,115 $66,454 $39,682 
GAAP diluted net income per share$0.93 $0.72 $0.93 $0.59 
Non-GAAP diluted net income per share$0.99 $0.72 $0.99 $0.59 
Shares used in GAAP and non-GAAP diluted net earnings per share calculation66,831 66,918 66,815 66,900 




Operating Income ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 30, 2024Six Months Ended March 30, 2024
GAAP
Facility closures (1)
Non-GAAPGAAP
Facility closures (1)
Non-GAAP
(in thousands)
Net sales$900,090$— $900,090 $1,534,623$—$1,534,623 
Cost of goods sold and occupancy621,2102,527 618,683 1,076,8982,527 1,074,371 
Gross profit$278,880$(2,527)$281,407 $457,725$(2,527)$460,252 
Selling, general and administrative expenses185,4332,743 182,690 355,8662,743 353,123 
Income from operations$93,447$(5,270)$98,717 $101,859$(5,270)$107,129

Garden Segment Operating Income ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended		GAAP to Non-GAAP Reconciliation
Six Months Ended
March 30, 2024March 25, 2023March 30, 2024March 25, 2023
(in thousands)(in thousands)
GAAP operating income$57,066 $49,619 $48,180 $38,799 
Facility closures(1)5,270 — 5,270 — 
Non-GAAP operating income$62,336 $49,619 $53,450 $38,799 
GAAP operating margin13.6 %11.4 %7.5 %6.0 %
Non-GAAP operating margin14.8 %11.4 %8.3 %6.0 %
Organic Net Sales ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 30, 2024Six Months Ended March 30, 2024
Net sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organicNet sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organic
(in millions)
Q2 FY 24$900.1$19.3 $880.8$1,534.6$32.5 $1,502.1
Q2 FY 23909.021.9 887.11,536.731.5 1,505.2
$ decrease$(8.9)$(6.3)$(2.1)$(3.1)
% decrease(1.0)%(0.7)%(0.1)%(0.2)%
Organic Pet Segment Net Sales ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 30, 2024Six Months Ended March 30, 2024
Net sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organicNet sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organic
(in millions)
Q2 FY 24$480.2$19.3 $460.9$889.4$32.5 $856.9
Q2 FY 23475.2— 475.2891.0— 891.0
$ increase (decrease)$5.0$(14.3)$(1.6)$(34.1)
% increase (decrease)1.1 %(3.0)%(0.2)%(3.8)%


Organic Garden Segment Net Sales ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 30, 2024Six Months Ended March 30, 2024
Net sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organicNet sales (GAAP)Effect of acquisitions & divestitures on net salesNet sales organic
(in millions)
Q2 FY 24$419.9$— $419.9$645.2$— $645.2
Q2 FY 23433.821.9 411.9645.731.5 614.2
$ increase (decrease)$(13.9)$8.0$(0.5)$31.0
% increase (decrease)(3.2)%1.9 %(0.1)%5.0 %

Adjusted EBITDA ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 30, 2024
PetGardenCorporateTotal
(in thousands)
Net income attributable to Central Garden & Pet Company

$— $— $— $61,987 
     Interest expense, net

— — — 11,473 
     Other expense

— — — 171 
     Income tax expense

— — — 19,134 
     Net income attributable to noncontrolling interest

— — — 682 
Income (loss) from operations

$62,659 $57,066 $(26,278)$93,447 
Depreciation & amortization11,124 11,014 674 22,812 
Noncash stock-based compensation— — 2,907 2,907 
Facility closures(1)— 5,270 — 5,270 
Adjusted EBITDA$73,783 $73,350 $(22,697)$124,436 

Adjusted EBITDA ReconciliationGAAP to Non-GAAP Reconciliation
Three Months Ended March 25, 2023
PetGardenCorporateTotal
(in thousands)
Net income attributable to Central Garden & Pet Company$— $— $— $48,115 
     Interest expense, net— — — 14,690 
     Other income— — — (595)
     Income tax expense— — — 15,268 
     Net income attributable to noncontrolling interest— — — 563 
Income (loss) from operations$55,255 $49,619 $(26,833)$78,041 
Depreciation & amortization10,474 10,818 817 22,109 
Noncash stock-based compensation— — 6,750 6,750 
Adjusted EBITDA$65,729 $60,437 $(19,266)$106,900 



Adjusted EBITDA ReconciliationGAAP to Non-GAAP Reconciliation
Six Months Ended March 30, 2024
PetGardenCorporateTotal
(in thousands)
Net income attributable to Central Garden & Pet Company$— $— $— $62,417 
     Interest expense, net— — — 21,180 
     Other income— — — (822)
     Income tax expense— — — 18,265 
     Net income attributable to noncontrolling interest— — — 819 
Income (loss) from operations$106,047 $48,180 $(52,368)$101,859 
Depreciation & amortization21,922 22,020 1,415 45,357 
Noncash stock-based compensation— — 8,927 8,927 
Facility closures(1)— 5,270 — 5,270 
Adjusted EBITDA$127,969 $75,470 $(42,026)$161,413 
Adjusted EBITDA ReconciliationGAAP to Non-GAAP Reconciliation
Six Months Ended March 25, 2023
PetGardenCorporateTotal
(in thousands)
Net income attributable to Central Garden & Pet Company$— $— $— $39,682 
     Interest expense, net— — — 28,466 
     Other income— — — (2,294)
     Income tax expense— — — 12,446 
     Net income attributable to noncontrolling interest— — — 147 
Income (loss) from operations$94,810 $38,799 $(55,162)$78,447 
Depreciation & amortization20,586 21,660 1,555 43,801 
Noncash stock-based compensation— — 13,327 13,327 
Adjusted EBITDA$115,396 $60,459 $(40,280)$135,575 

v3.24.1.u1
Cover
May 08, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date May 08, 2024
Entity Registrant Name Central Garden & Pet Company
Entity Incorporation, State or Country Code DE
Entity File Number 001-33268
Entity Tax Identification Number 68-0275553
Entity Address, Postal Zip Code 94597
City Area Code (925)
Local Phone Number 948-4000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000887733
Amendment Flag false
Entity Address, Address Line One 1340 Treat Boulevard, Suite 600
Entity Address, City or Town Walnut Creek
Entity Address, State or Province CA
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common Stock
Trading Symbol CENT
Security Exchange Name NASDAQ
Common Class A  
Document Information [Line Items]  
Title of 12(b) Security Class A Common Stock
Trading Symbol CENTA
Security Exchange Name NASDAQ
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