NASDAQ$CENTA

Central Garden & Pet Company · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Central Garden & Pet experienced a strong first quarter in fiscal year 2021, marked by significant increases in net sales and earnings per share.

Central Garden & Pet announced strong Q1 2021 results with net sales increasing by 22.7% to $592.2 million. Diluted EPS grew to $0.10, and non-GAAP EPS reached $0.29. These results reflect robust consumer demand and strategic acquisitions in the Garden Segment.

  • Net sales increased by 22.7% to $592.2 million due to organic strength in both segments.
  • Diluted EPS increased to $0.10, a $0.18 increase compared to the prior year.
  • Non-GAAP diluted EPS increased to $0.29, up $0.37 from the prior year, excluding specific interest expenses and losses.
  • Operating income rose to $27.0 million, driven by improved gross margin and operating efficiencies.

Headline financials

Total Revenue

$592M

Previous: $483M+22.7%
EPS (adj)

$0.23

Previous: -$0.06+483.3%
Gross Margin

27.9%

Previous: 27.2%+2.6%
Operating Margin

4.6%

Previous: 0.4%+1050.0%
Capital Expenditures

-$14.7M

Previous: -$9.88M-48.4%
Free Cash Flow

-$9.05M

Previous: -$14.3M+36.7%
Net Income

$5.61M

Previous: -$4.42M+227.1%
Operating Income

$27M

Previous: $2.07M+1209.4%
Gross Profit

$165M

Previous: $131M+26.0%
Cash & Equivalents

$608M

Previous: $446M+36.4%
Total Assets

$2.45B

Previous: $2.14B+14.6%
Stock-Based Comp

$4.67M

Previous: $4.15M+12.5%

Revenue & EPS history

Central Garden & Pet · Revenue · Quarterly

$592M

Q1 2021+22.7%vs Q1 2020
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Central Garden & Pet · $592M total across 2 segments · Q1 2021

  • Pet Segment
    $436M+23.3%
  • Garden Segment
    $156M+21.0%

Forward guidance

The Company projects fiscal 2021 EPS to be at or above $1.90, as compared to prior year EPS of $2.20. This guidance does not include the impact of its recent acquisitions or additional acquisitions that may close during fiscal 2021.

Tailwinds

  • Continued investments in capacity expansion
  • Brand building
  • eCommerce as the Company continues to invest in sustainable growth
  • Successful refinancing of 2023 senior notes
  • Acquisitions of DoMyOwn and Hopewell Nursery

Headwinds

  • Projected decline compared to fiscal 2020 reflects additional investments
  • Increasing labor and freight costs
  • Key commodity costs
  • Resuming more normal levels of promotional activity and travel
  • Second-half headwinds associated with lapping almost ideal weather for the gardening season and the COVID-19 tailwinds in fiscal 2020

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+0.4%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+18.5%

Q1 2016

Best reaction

-22.9%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.2%+2.2%+4.9%
Q1 2026+0.0%-1.4%-0.9%
Q4 2025+8.2%+8.2%+3.3%
Q2 2025+0.3%+6.3%+4.4%
Q1 2025-0.9%+0.8%+0.1%
Q4 2024-0.2%+2.9%-1.4%
Q3 2024+5.0%+0.5%+0.7%
Q2 2024+11.9%+11.8%+0.3%
Q1 2024+5.6%+14.6%+6.9%
Q4 2023-10.8%-10.2%+6.6%
Q3 2023+15.6%+12.8%+8.0%
Q2 2023+6.3%+4.0%+2.0%
Q1 2023+4.0%+7.4%+0.0%
Q4 2022-8.8%-9.0%-13.4%
Q3 2022+0.7%+3.2%-11.3%
Q2 2022+0.7%+3.7%+2.7%
Q1 2022+0.3%-6.3%-1.1%
Q4 2021-3.6%-5.4%-2.8%
Q3 2021-3.0%-1.9%-8.0%
Q2 2021+5.8%+5.5%-1.0%
Q1 2021+5.2%+6.3%+11.8%
Q4 2020+1.7%+0.2%-6.1%
Q3 2020+7.1%+6.3%-0.1%
Q2 2020+2.3%+8.4%+10.7%
Q1 2020-1.8%-3.8%-10.8%
Q4 2019-18.4%-16.5%+0.1%
Q3 2019-22.9%-24.1%-12.7%
Q2 2019+4.4%+5.4%+2.6%
Q1 2019-21.0%-22.2%-24.5%
Q4 2018+2.6%+10.0%+4.8%
Q3 2018-0.4%+0.7%-9.4%
Q2 2018+5.4%+9.8%+13.5%
Q1 2018+8.6%+5.4%+7.7%
Q4 2017+3.5%+5.3%+4.1%
Q3 2017+11.7%+11.0%+12.4%
Q2 2017+3.3%+0.2%-6.7%
Q1 2017-4.3%-7.1%+0.6%
Q4 2016+9.0%+12.3%+12.9%
Q3 2016+7.1%+7.7%+6.0%
Q2 2016-2.8%
Q1 2016+18.5%
Q4 2015+14.9%
Q3 2015+3.1%
Q2 2015-4.3%
Q1 2015+3.5%
Q4 2014+4.1%
Q3 2014-0.4%
Q2 2014-7.4%
Q1 2014+7.5%
Q4 2013-11.5%
Q3 2013-13.5%
Q2 2013-12.0%
Q1 2013-2.8%
Q4 2012-13.1%
Q3 2011-4.2%
Q4 2011-4.2%
Q3 2012-6.1%
Q2 2012-7.4%
Q1 2011+1.4%
Q1 2012+4.7%
Q2 2011-3.6%
Q4 2009-3.6%
Q3 2010-14.7%
Q4 2010-14.7%

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