887733--12/14/2006--CENTRAL_GARDEN_&_PET_CO

related topics
{product, market, service}
{cost, regulation, environmental}
{condition, economic, financial}
{gas, price, oil}
{operation, natural, condition}
{system, service, information}
{product, liability, claim}
{personnel, key, retain}
{provision, law, control}
{stock, price, share}
{acquisition, growth, future}
{financial, litigation, operation}
{customer, product, revenue}
We may be adversely affected by trends in the retail industry. We depend on a few customers for a significant portion of our business. We cannot be certain that our product innovations and marketing successes will continue. Seeds and grains we use to produce bird feed and grass seed are commodity products subject to price volatility that has had, and could have, a negative impact on us. Competition in our industries may hinder our ability to execute our business strategy, achieve profitability or maintain relationships with existing customers. Our acquisition strategy involves a number of risks. Our lawn and garden sales are highly seasonal and subject to adverse weather, either of which could impact our cash flow and operating results. Our operating results and cash flow are susceptible to fluctuations. Our success is dependent upon retaining key personnel. Rising energy prices could adversely affect our operating results. We are implementing a new enterprise resource planning information technology system that will result in an increase in IT spending over the next several years. Some of the products that we manufacture and distribute require governmental permits and also subject us to potential environmental liabilities. The products that we manufacture could expose us to product liability claims. We have pending litigation which could adversely impact our operating results. Our Chairman, through his holdings of our Class B stock, could greatly influence control of Central, which may discourage potential acquisitions of our business and could have an adverse effect on the market price of our common stock. The Company has authorized the issuance of up to 100,000,000 shares of nonvoting common stock and 999,900 shares of preferred stock, which may discourage potential acquisitions of our business and could have an adverse effect on the market price of our common stock.

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