NASDAQ$CENTA

Central Garden & Pet Company · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Central Garden & Pet had record operating results for Q4 and fiscal year 2020.

Central Garden & Pet announced record fourth quarter results, with net sales increasing by 25.0% to $676.0 million and earnings per share growing to $0.25. The company's success was attributed to the hard work of employees and a focus on customer needs.

  • Net sales increased 25.0% to $676.0 million compared to the fourth quarter a year ago.
  • Gross margin increased to 29.0%, an improvement of 150 basis points compared to the fourth quarter a year ago, primarily driven by favorable mix of product sales and pricing.
  • Operating income for the quarter increased to $25.2 million compared to $10.9 million in the prior year quarter.
  • The Company's net income was $13.6 million compared to $2.4 million in the prior year quarter, and earnings per fully-diluted share grew to $0.25 versus $0.04 in the fourth quarter of fiscal 2019.

Headline financials

Total Revenue

$676M

Previous: $541M+25.0%
EPS (adj)

$0.20

Previous: $0.03+566.7%
Operating Margin

3.7%

Previous: 2.0%+85.0%
Capital Expenditures

$16.3M

Previous: $10.7M+52.1%
Free Cash Flow

$159M

Previous: $101M+56.8%
Net Income

$13.6M

Previous: $2.44M+456.9%
Operating Income

$25.2M

Previous: $10.9M+131.7%
Gross Profit

$196M

Previous: $149M+32.0%
Cash & Equivalents

$653M

Previous: $498M+31.1%
Total Assets

$2.34B

Previous: $2.03B+15.5%
Stock-Based Comp

$4.94M

Previous: $4.22M+17.1%

Revenue & EPS history

Central Garden & Pet · Revenue · Quarterly

$676M

Q4 2020+25%vs Q4 2019
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Central Garden & Pet · $676M total across 2 segments · Q4 2020

  • Pet Segment
    $434M+22.0%
  • Garden Segment
    $242M+30.9%

Forward guidance

The Company currently projects fiscal 2021 GAAP EPS of $1.90 or better. This translates to fiscal 2021 adjusted EPS of $2.05 or better.

Tailwinds

  • Increased investments in capacity expansion
  • Brand building
  • eCommerce as the Company continues to invest in sustainable growth
  • Resuming more normal levels of promotional activity
  • Resuming more normal levels of travel

Headwinds

  • Increases in labor cost
  • Increases in freight cost
  • Increases in key commodities
  • Second-half headwinds associated with lapping almost ideal weather for the gardening season
  • COVID-19 tailwinds in 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 Q4 2020

Historical avgQ4 2020

-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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