Central Garden & Pet Announces Preliminary Fiscal 2005 Results and 2006 Guidance; Accelerates Achieving a 10% Operating Income M
09 November 2005 - 8:01AM
Business Wire
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.
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Sep 2024 to Oct 2024
Central Garden and Pet (NASDAQ:CENT)
Historical Stock Chart
From Oct 2023 to Oct 2024