Central Garden & Pet Company · NASDAQ:CENT
Central Garden & Pet — Q1 2024 Earnings Presentation
19 slides from Central Garden & Pet's earnings presentation, Feb 7, 2024
Slide 1: Q1 FY2024 Investor Presentation
Q1 FY2024 Investor Presentation 2.7.2024
Slide 2: Business & Industry Update, Financials, Outlook, Q&A
Business & Industry Update Beth Springer, Interim CEO Q1 FY24 Financials, FY24 Outlook Niko Lahanas, CFO Management Q&A Beth Springer, Niko Lahanas, J.D. Walker, John Hanson Q1 FY24 Investor Presentation 2
Slide 3: Forward-looking Statements
Forward-looking Statements This presentation includes “forward-looking statements.” Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, plans or intentions relating to acquisitions, ou
Slide 4: Beth Springer, Interim CEO
Beth Springer Interim CEO Q1 FY24 Investor Presentation 4
Slide 5: Three Key Themes
Three Key Themes 1 2 3 Fiscal 2024 is off Progress on Cost & EPS guidance of $2.50 to a solid start Simplicity program or better unchanged – delivered EPS of 1 cent – multi-year journey to – vast majority of garden – modestly grew net sales simplify business and season still in front of us improve e
Slide 6: Niko Lahanas, CFO
Niko Lahanas CFO Q1 FY24 Investor Presentation 6
Slide 7: FY24 Q1 Performance
FY24 Q1 Performance Net Sales Gross Margin Operating Income EPS (in $ millions) (as a percentage of Net Sales) (in $ millions) (in $) +1% +80bps +$8 +$0.17 Q1 FY24 Investor Presentation 7
Slide 8: Pet Segment: $409 million Q1 FY24 Net Sales
Pet Segment: $409 million Q1 FY24 Net Sales Headwinds & Challenges Tailwinds & Successes • Softness in pet ownership unfavorably • Grew market share and total distribution points in Dog Toys, Small Animal, Pet Bird impacted durable supplies across pet Aquatics, and Health & Wellness beds, small anim
Slide 9: Garden Segment: $225 million Q1 FY24 Net Sales
Garden Segment: $225 million Q1 FY24 Net Sales Headwinds & Challenges Tailwinds & Successes • Unfavorable warmer weather • Favorable timing of quarter ending a week later than in PY negatively impacted Wild Bird • Early season shipments in Controls & Fertilizer, sales Grass and Packet Seeds • Select
Slide 10: Improved Cash & Liquidity
Improved Cash & Liquidity Adj. EBITDA Cash & Cash Long-Term Total Leverage(1) (in $ millions) Equivalents Debt (in $ millions) (in $ millions) +29% +$254 Q1 FY24 Investor Presentation (1) Calculated as Indebtedness / Adj. EBITDA as defined by the Company's ABL credit agreement 10
Slide 11: Multi-year Journey to Reduce Cost and Simplify our Business
Multi-year Journey to Reduce Cost and Simplify our Business PRINCIPLES FOCUS AREAS OUTCOMES Significantly reduced complexity: Procurement fewer SKUs, fewer plants, fewer Simplify our business, focus distribution centers our portfolio and supply chain Manufacturing Improve our efficiency across Lower
Slide 12: Recent Examples of our Cost and Simplicity Program in Action
Recent Examples of our Cost and Simplicity Program in Action Procurement Manufacturing Portfolio Optimization Administration • Further centralizing • Closing of a live goods • Closed Portland, OR, • Implementing purchasing of e.g. pallets, greenhouse in garden distribution enhanced treasury corrugat
Slide 13: Stock Dividend
Stock Dividend One additional Class A Improved liquidity in Class A • Record date: January 8 Common Stock for every four Common Stock expected to • Shares to be distributed: shares of any class of shares benefit stockholders and provide February 8 held (Common Stock, Class A Central with more flexib
Slide 14: FY24 Outlook
Challenging external environment FY24 Outlook • Deflationary pressure in some of Central's commodity businesses • Uncertain consumer demand and retailer dynamics Strong fundamentals of Central and our industries • Favorable trends support long-term growth in Pet and Garden • Central remains strong,
Slide 15: Question & Answer Session
Question & Answer Session Please reach out to us with any comments or questions. IR@Central.com (925) 412-6726
Slide 16: Appendix
Appendix IF CENTRAL GARDEN & PET
Slide 17: Notes & Disclosures
Notes & Disclosures 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 adjusted EBITDA and organic sales. Management believes these non
Slide 18: GAAP to Non-GAAP Reconciliation (in millions)
GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended (in millions) Organic Pet Segment Net Sales Reconciliation Three Months Ended December 30, 2023 Effect of acquisitions & Net sales (GAAP) divestitures on net sales Net sales organic Q1 FY 24 $ 409.2 $ 13.2 $ 396.0 Q1 FY 23 415.8 — 415.8 $
Slide 19: GAAP to Non-GAAP Reconciliation (in thousands)
GAAP to Non-GAAP Reconciliation for the Fiscal Quarter Ended (in thousands) Adjusted EBITDA Reconciliation December 30, 2023 December 24, 2022 Net income (loss) attributable to Central Garden & Pet Company $ 430 $ (8,433) Interest expense, net 9,707 13,776 Other income (993) (1,699) Income tax benef
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