Central Garden and Pet (NASDAQ:CENT)
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Central Garden & Pet Company (Nasdaq:CENT) today
announced its guidance for the fiscal year ending September 30, 2006.
Net sales for fiscal year 2006 are projected to be between $1.45
billion and $1.47 billion, an increase of approximately 5-6% when
compared with fiscal year 2005. Operating income is expected to be
between $120 million and $123 million. Net income is expected to be
between $65 million and $67 million, an increase of approximately 22%
when compared with fiscal year 2005. Earnings per fully diluted share
is expected to be between $2.90 and $3.00. These projected results do
not include costs associated with its profit acceleration program of
approximately 10-12 cents in fiscal 2006 or the impact from any future
acquisitions.
The Company projects fiscal 2005 fully diluted earnings per share
to be approximately $2.50 and sales of approximately $1.38 billion.
Operating income is expected to be approximately $100 million. The
fiscal 2005 estimates are preliminary and subject to final review and
certification by the Company's external auditors. The Company is
scheduled to release fiscal fourth quarter and full-year results in
early December, 2005.
"We are committed to accelerating growth and profitability,"
commented Glenn Novotny, President and Chief Executive Officer of
Central Garden and Pet. "We are implementing a profit acceleration
program by stepping up activities to support growth, improve margins,
and reduce costs to achieve our near-term goal of a 10% operating
margin by 2008."
The profit acceleration program is expected to generate annualized
benefits of in excess of $7 million in operating profit starting in
fiscal 2007. The program will cost approximately $4 million, net of
benefits in 2006, related to consolidation within both its Garden and
Pet business segments, or 10-12 cents per fully diluted share.
Mr. Novotny concluded: "We have reached a stage in our business
growth where it makes sense to accelerate the streamlining of our
brands and business units to support future growth plans. We expect
our 2006 initiatives to further strengthen our brands, improve our
customer relationships, enhance our new product development activities
and create a leaner organization that will generate greater returns
for our shareholders."
The Company will discuss its full year fiscal 2006 guidance on a
conference call today at 4:30 p.m. EST. The conference call will be
simultaneously broadcast over the Internet through Central's website,
http://www.central.com/. To listen to the webcast, please log on to
the website prior to the scheduled call time to register and download
any necessary audio software.
Central Garden & Pet Company is a leading innovator, marketer and
producer of quality branded products for the pet and lawn and garden
supplies markets. Our pet products include pet bird and small animal
food, aquarium products, flea, tick, mosquito and other pest control
products, edible bones, cages, carriers, pet books, and other dog,
cat, reptile and small animal products. These products are sold under
a number of brand names, including Kaytee, Super Pet, All-Glass
Aquarium, Oceanic, Kent Marine, Energy Savers Unlimited, Zodiac,
Pre-Strike, Altosid, Nylabone, TFH, Four Paws and Interpet. Our lawn
and garden products include grass seed, wild bird food, weed and
insect control products, decorative outdoor patio products and ant
control products. These products are sold under a number of brand
names, including Pennington, Norcal Pottery, New England Pottery,
GKI/Bethlehem Lighting, Lilly Miller, Matthews Four Seasons, Cedar
Works, AMDRO, Grant's, Sevin and Over'n Out. For additional
information on Central Garden & Pet, including access to the Company's
SEC filings, please visit the Company's website at
http://www.central.com/.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release which are
not historical facts, including future earnings guidance, 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. These risks are
described in the Company's Securities and Exchange Commission filings
including, without limitation, the resolution of litigation between
the Company and Hebert Axelrod. Central undertakes no obligation to
publicly update these forward-looking statements to reflect new
information, subsequent events or otherwise.