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Central Garden & Pet (CENT)

Central Garden & Pet understands that home is central to life and has proudly nurtured happy and healthy homes for over 40 years. With 2020 net sales of $2.7 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 help 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 Pennington®, Nylabone®, Kaytee®, Amdro® and Aqueon®, strong manufacturing and distribution capabilities and a passionate, entrepreneurial growth culture. Central Garden & Pet is based in Walnut Creek, California and has over 6,300 employees across North America and Europe.

Company profile

Ticker
CENT, CENTA
Exchange
Website
CEO
Timothy Cofer
Employees
Incorporated
Location
Fiscal year end
Former names
CENTRAL GARDEN & PET COMPANY
SEC CIK
Subsidiaries
A.E. McKenzie Co. ULC • All-Glass Aquarium Co., Inc. • Arden Companies, LLC • B2E Corporation • B2E Biotech, LLC • B2E Microbials, LLC • B2E Manufacturing, LLC • Bell Nursery Holdings, LLC • C&S Products Co., Inc. • D&D Commodities Limited ...
IRS number
680275553

CENT stock data

Calendar

5 May 22
26 Jun 22
24 Sep 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Sep 21 Sep 20 Sep 19 Sep 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 66.76M 66.76M 66.76M 66.76M 66.76M 66.76M
Cash burn (monthly) 80.73M (no burn) (no burn) (no burn) 59.87M (no burn)
Cash used (since last report) 245.12M n/a n/a n/a 181.8M n/a
Cash remaining -178.36M n/a n/a n/a -115.04M n/a
Runway (months of cash) -2.2 n/a n/a n/a -1.9 n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 May 22 Nicholas Lahanas Class A Common Stock Payment of exercise Dispose F No No 42.12 738 31.08K 112,782
13 May 22 Nicholas Lahanas Class A Common Stock Sell Dispose S No No 41.78 7,306 305.24K 113,520
29 Mar 22 Machek Howard Class A Common Stock Payment of exercise Dispose F No No 41.98 404 16.96K 46,508
29 Mar 22 Yuhas George A. Class A Common Stock Payment of exercise Dispose F No No 41.98 512 21.49K 20,878
7 Mar 22 Nicholas Lahanas Class A Common Stock Payment of exercise Dispose F No No 43.27 727 31.46K 120,826
13F holders Current Prev Q Change
Total holders 215 231 -6.9%
Opened positions 17 69 -75.4%
Closed positions 33 12 +175.0%
Increased positions 78 104 -25.0%
Reduced positions 79 43 +83.7%
13F shares Current Prev Q Change
Total value 1.99B 2.69B -26.0%
Total shares 48.71M 48.81M -0.2%
Total puts 0 0
Total calls 0 23.9K EXIT
Total put/call ratio
Largest owners Shares Value Change
BLK Blackrock 8.86M $366.7M -0.6%
Vanguard 5.79M $240.52M +2.2%
Dimensional Fund Advisors 3.16M $131M +0.3%
Allspring Global Investments 2.61M $109.71M +3.0%
STT State Street 1.88M $77.83M +1.7%
Champlain Investment Partners 1.69M $68.76M -4.8%
Armistice Capital 1.54M $62.64M +43.8%
WHG Westwood 1.53M $62.25M +4.0%
SAMG Silvercrest Asset Management 1.12M $45.65M -11.7%
GW&K Investment Management 1.09M $44.86M -0.6%
Largest transactions Shares Bought/sold Change
Victory Capital Management 870.18K +841.51K +2935.2%
Armistice Capital 1.54M +468K +43.8%
Norges Bank 0 -441.32K EXIT
LSV Asset Management 861.22K +196.18K +29.5%
Assenagon Asset Management 67.21K -193.89K -74.3%
Lord, Abbett & Co. 0 -181.5K EXIT
Echo Street Capital Management 0 -181.18K EXIT
IVZ Invesco 352.14K -165.24K -31.9%
Mesirow Financial Investment Management - Equity Management 0 -158.74K EXIT
SAMG Silvercrest Asset Management 1.12M -148.74K -11.7%

Financial report summary

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Risks
  • The COVID-19 pandemic has impacted how we are operating our business, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain.
  • Our operating results and cash flow are susceptible to fluctuations.
  • Seeds and grains we use to produce bird feed and grass seed are commodity products subject to price volatility that has had, and could have, a negative impact on us.
  • Supply chain delays and interruptions may result in lost sales, reduced fill rates and service levels and delays in expanding capacity and automating processes.
  • We are subject to significant risks associated with innovation, including the risk that our new product innovations will not produce sufficient sales to recoup our investment.
  • A decline in consumers’ discretionary spending or a change in consumer preferences could reduce our sales and harm our business.
  • Supply disruptions in pet birds, small animals and fish may negatively impact our sales.
  • Our lawn and garden sales are highly seasonal and subject to adverse weather.
  • We depend on a few customers for a significant portion of our business.
  • Tariffs or a global trade war could increase the cost of our products, which could adversely impact the competitiveness of our products and our financial results.
  • We may be adversely affected by trends in the retail industry.
  • Issues with products may lead to product liability, personal injury or property damage claims, recalls, withdrawals, replacements of products, regulatory actions by governmental authorities that could divert resources, affect business operations, decrease sales, increase costs, and put us at a competitive disadvantage, any of which could have a significant adverse effect on our results of operations and financial condition.
  • Competition in our industries may hinder our ability to execute our business strategy, increase our profitability or maintain relationships with existing customers.
  • We continue to implement enterprise resource planning information technology systems.
  • Some of the products that we manufacture and distribute require governmental permits and also subject us to potential environmental liabilities.
  • Our business is dependent upon our ability to continue to source products from China.
  • Deterioration in operating results could prevent us from fulfilling our obligations under the terms of our indebtedness or impact our ability to refinance our debt on favorable terms as it matures.
  • Our acquisition strategy involves a number of risks.
  • If our goodwill, indefinite-lived intangible assets or other long-term assets become impaired, we will be required to record impairment charges, which may be significant.
  • Our success depends upon our retaining and recruiting key personnel.
  • Inflation, economic uncertainty and other adverse macro-economic conditions may harm our business.
  • Our inability to protect our trademarks and any other proprietary rights may have a significant, negative impact on our business.
  • Rising energy prices could adversely affect our operating results.
  • The products that we manufacture and distribute could expose us to product liability claims.
  • We have unresolved litigation which could adversely impact our operating results.
  • We are subject to cyber security risks and may incur increasing costs in an effort to minimize those risks.
  • We do not expect to pay dividends in the foreseeable future.
  • We may issue additional shares of our common stock or Class A common stock that could dilute the value and market price of our stock.
  • Our founder, through his holdings of our Class B common stock, exercises effective control of the Company, which may discourage potential acquisitions of our business and could have an adverse effect on the market price of our stock.
  • We have authorized the issuance of shares of common stock, Class A common stock and preferred stock, which may discourage potential acquisitions of our business and could have an adverse effect on the market price of our common stock and our Class A common stock.
Management Discussion
  • Net sales for the three months ended March 26, 2022 increased $19.1 million, or 2.0%, to $954.4 million from $935.3 million for the three months ended March 27, 2021. Organic net sales, which exclude the impact of acquisitions and divestitures in the last 12 months, decreased $32.7 million, or 3.5%, as compared to the fiscal 2021 quarter. Our branded product sales increased $29.2 million, and sales of other manufacturers’ products decreased $10.1 million.
  • Pet net sales increased $5.7 million, or 1.2%, to $497.7 million for the three months ended March 26, 2022 from $492.0 million for the three months ended March 27, 2021. This organic sales increase was due primarily to pricing actions taken to offset the current inflationary operating environment. Increases in net sales in our dog and cat treats and toy business and our outdoor cushion business were partially offset by lower sales in our dog bed business. The increase in sales in our dog and cat treats and toy business was due to pricing actions taken to offset inflationary pressures; and the increase in our outdoor cushion business was due primarily to a volume shift from our first quarter to our second quarter. The decrease in our dog bed business was due to a purposeful SKU rationalization. Pet branded product sales increased $6.3 million while sales of other manufacturers' products declined $0.6 million.
  • Garden net sales increased $13.4 million, or 3.0%, to $456.7 million for the three months ended March 26, 2022 from $443.3 million for the three months ended March 27, 2021. The sales increase was due to the addition of our fiscal 2021 acquisitions. Organic sales decreased 8.7% due primarily to unfavorable weather resulting in a delayed start to the garden season which more than offset increases from pricing actions taken to offset rising costs. As such, most of our garden businesses had decreased sales in the quarter with the exception of wild bird feed resulting from price increases taken to offset large commodity inflation. Garden branded sales increased $22.9 million due to our fiscal 2021 acquisitions while sales of other manufacturers' products decreased $9.5 million.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: amid, assumed, combat, delayed, easing, flat, headcount, immaterial, lender, purposeful, rationalization, recommenced, recovery, rent, salary, signaled, SKU, toy, volume
Removed: adjacent, consumption, discretionary, estimating, evidenced, leverage, predict, uncertainty, volatility