Central Garden & Pet Company (NASDAQ:CENT.A) Q2 2016 Earnings Conference Call - Final Transcript

May 04, 2016 • 04:30 pm ET

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Central Garden & Pet Company (NASDAQ:CENT.A) Q2 2016 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Certainly. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Our -- first question today is from Jason Gere from KeyBanc Capital Markets. Please proceed with your question.

Analyst
Jason M. Gere

Okay. Good afternoon, guys. Hi, John, sorry, this is our first and I guess our last conference call together. So wish you the best of luck. George, welcome aboard. I guess the one big question for you George is, I know June 1st is technically I think when you come on as a CEO, so we'll probably wait a couple of weeks before pressuring you into an updated strategy. Just kidding.

Executive
George C. Roeth

I appreciate that.

Analyst
Jason M. Gere

You know how sell-side works. But I guess the real question here is, when you look and somewhat as an outsider sitting from the board and you look at some of the strategy that's been employed. What do you see as kind of the 10,000 foot kind of big opportunity here? Maybe bringing in some of your expertise from Clorox, sales, cost-cutting, marketing, you've kind of ran the gamut when you were there. So just wondering what are some of the areas that you think you can really strengthen to Central Garden & Pet?

Executive
George C. Roeth

Well, first of all I'd say, at high level Central is in terrific categories with Garden and Pet and consumer tailwind. So I think we're in a good place relative to a lot of the packaged goods industry. And I don't think you'll see any hard right-hand turns, left or right for me. I've been on the board, engaged with John and his team as they've done this strategy development work. And really you can see me drive a lot of the same things.

So customer-first orientation, increasing the innovation, output and success rate I think is critical. Lowering cost to reinvest back in growth, those are all things I did in a prior life. And I think what you'll see me and the leadership team trying to do is accelerate those activities and build out the pipelines, particularly around innovation and cost. So we can have sustained high likelihood of success growth over a long period of time.

Analyst
Jason M. Gere

Okay. I appreciate the color. Now, I guess John, just to kind of get into some of the nuts and bolts on the quarter. And not surprising your garden -- the grass seed was strong. Obviously there was a great March quarter. We heard from one of your competitors yesterday that April was not very strong. I was just wondering if you have the data just about where POS stands versus kind of the shipment in retail inventory. So how are you positioned for the June quarter? I know you did comment about some of the uncertainty in weather. But I was just wondering how we should be thinking about the June quarter, which obviously stands to be a very important quarter for that business?

Executive
J.D. Walker

Jason, this is JD Walker. I'll take that question. While we don't give guidance, and I'm not going