Central Garden and Pet Company Reports 1Q Fiscal 2011 Results

Central Garden and Pet Company, a producer of products for thelawn and garden and pet supplies markets, announced results for itsfirst quarter ended Dec. 25, 2010.

In a release dated Feb. 1, the Company reported first quarter netsales of $282 million, an increase of 5 percent over the same perioda year ago. Net sales increased in both its Garden and Pet segments.The Company reported an operating loss of $6.5 million compared tooperating income of $0.5 million in the comparable prior year perioddue primarily to rising grain and other raw material prices andincreased marketing and brand building expenditures. The net lossfor the quarter was $9.6 million, or $0.16 per share compared to anet loss of $2.9 million or $0.04 per share in the year ago period.The Company historically reports a loss in its first fiscal quartergiven the seasonal nature of the lawn and garden category.

Branded product sales increased 5 percent to $231 million. Salesof other manufacturers' products increased 4 percent to $51 million.Depreciation and amortization expense was $7 million in the firstquarter of 2011, consistent with the first quarter of the prioryear. Net interest expense was $8.9 million compared to $4.9 milliona year ago. The quarter ending senior secured leverage ratio, asdefined in the Company's credit agreement, was 2.7x. At Dec. 25,2010, the Company's cash and short term investment balance was $91million. The Company repurchased $15 million of its common stockduring the quarter under its $100 million stock repurchase programannounced in July 2010.

"Our revenues grew for both our Garden and Pet segments in aquarter which is seasonally a slow period for the garden category,"said Bill Brown, Chairman and Chief Executive Officer. "We werepleased with the first quarter revenue growth, although ourquarterly results were impacted by rising input costs and ourstrategic investment in brand building. Going forward, we willcontinue to pursue growth opportunities and operating efficiencieswhile investing in innovation and marketing. We intend to leveragethe strength of our product portfolio, our distribution network, andthe strong relationships we have with our customers in order todeliver consistent profitable growth."

Net sales for the Garden Products segment in the first quarterwere $95 million, an increase of 8 percent from $88 million in thecomparable fiscal 2010 period. The Garden Product segment'soperating loss was $8.0 million compared to a loss of $6.3 millionin the first quarter of 2010. Branded product sales increased $6million to $80 million. Sales of other manufacturers' productsincreased 10 percent to $15 million. Net sales for the Pet Productssegment were $187 million, an increase of 3 percent compared to $182million in the year ago period. Operating income for the PetProducts segment was $11.4 million, compared to $17.6 million in thecomparable prior year period. Branded product sales were $151million, an increase of $5 million compared to last year. The Petsegment's sales of other manufacturers' products were $36 millionand remained flat compared to last year.

The Company will discuss its first quarter results on aconference call today at 4:30 p.m. EST / 1:30 p.m. PST. Individualsmay access the call by dialing 1-888-679-8038 and passcode 153202907(domestic) or 1-617-213-4850 and passcode 153202907 (international).The conference call will be simultaneously broadcast over theInternet through Central's website, central.com. To listen to thewebcast, please log on to the website prior to the scheduled calltime to register and download any necessary audio software.

In order to simplify your registration process, you may pre-register at the following link: theconferencingservice.com/prereg/key.process?key=PELV8Y7B4. By pre-registering, you may bypass theoperator and go directly to the teleconference with a unique PINnumber as soon as the call begins. At the time of the call, afterdialing the number and passcode mentioned above, enter your PIN forimmediate access to the teleconference.

Re-play dial-in numbers for the call will be available for threeweeks: 1-888-286-8010 and passcode 1504 3145 (domestic) and 1-617-801-6888 and passcode 1504 3145 (international).

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