Latest news with #JohnHanson
Yahoo
4 hours ago
- Yahoo
Tecumseh man arrested on child pornography charges
TECUMSEH, Okla. (KFOR) – According to the Oklahoma State Bureau of Investigation, a Tecumseh man has been arrested on multiple child pornography charges. Officials say on April 8, 2025, the Bixby Police Department Internet Crimes Against Children Unit received a tip regarding images of child sexual abuse material. LOCAL NEWS: Update: Temporary stay granted to Oklahoma death row inmate John Hanson The investigation led authorities to 34-year-old Zachary Lippoldt. On May 21, 2025, the Tecumseh Police Department and Pottawatomie County Sheriff's Office served a search warrant at his home in Tecumseh. Lippoldt later admitted to downloading child sexual abuse material. Based on the evidence gathered during the investigation, he was arrested and booked into the Pottawatomie County Jail on a $200,000 bond. Lippoldt is facing 15 counts of Possession of Child Sexual Abuse Material and one count of Violation of the Oklahoma Computer Crimes Act. The investigation is still ongoing. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CTV News
a day ago
- Politics
- CTV News
4 executions are scheduled in 4 states over four days this week. Here's what we know
Gregory Hunt, Anthony Wainwright, John Hanson and Stephen Stanko are all scheduled to be executed this week. (Alabama Department of Corrections/Florida Department of Corrections/Oklahoma Department of Corrections/South Carolina Department of Corrections via CNN Newsource) Over the next four days, four inmates in four states are scheduled to be put to death – a cluster that, while not abnormal – comes amid a national uptick in executions as President Donald Trump calls for the death penalty's expansion. The executions are slated to begin Tuesday, when Alabama is scheduled to put Gregory Hunt to death for the murder of Karen Lane. On the same day, Florida plans to execute Anthony Wainwright for the murder of Carmen Gayheart. On Thursday, Oklahoma says it will execute John Hanson for the murder of Mary Agnes Bowles. And a day later, Stephen Stanko is scheduled to be put to death in South Carolina for the murder of Henry Lee Turner. While a string of executions is 'not that unusual,' according to Robert Dunham, director of the Death Penalty Policy Project, they've 'become increasingly rare as use of the death penalty has diminished.' The number of executions each year remains far lower than its peak in 1999, when nearly 100 people were put to death nationwide. That figure steadily decreased until the Covid-19 pandemic, when it reached historic lows, said Dunham. But executions are up in the first half of 2025 compared to recent years. In addition to this week's, two more are scheduled later in June. If all six proceed as planned, it would mark 25 executions this year to date, matching the total number of executions carried out in 2024, according to data from the Death Penalty Information Center. That would be the highest number of executions carried out through June since 2011. One reason for the recent uptick is the renewed interest in executions in states that have not carried them out for years, experts said. Arizona, Louisiana and Tennessee have all resumed executions in 2025 after hiatuses. South Carolina and Indiana did the same in 2024. All except Arizona are led by Republican governors. States are acting independently. But their moves come as Trump has signaled a desire to see capital punishment used more often at the federal level, saying he wants to deter criminals and protect the American people. While his day one executive order, 'Restoring the Death Penalty and Protecting Public Safety,' does not apply to the states, experts said the message it sends could encourage state officials who want to align themselves with the president. 'If a state is inclined to conduct executions anyway, Trump's rhetoric would be the wind behind them pushing them to do that,' said Corinna Lain, a University of Richmond law professor and author of 'Secrets of the Killing State: The Untold Story of Lethal Injection.' The executive order also has an overt connection to a case this week: An Oklahoma execution is moving forward because Attorney General Pam Bondi, citing Trump's executive order, approved a transfer of the inmate from federal custody to the state – a request the Biden administration previously denied. CNN has reached out to the White House for comment. This a 'dark time in US capital punishment,' said Matt Wells, deputy director of Reprieve US, an organization that opposes the death penalty. Aside from the resumption of executions in some states, he pointed to states' issues with lethal injection and the advent of alternative execution methods, like nitrogen gas, and the resumption of executions in states that have not put anyone to death in years. 'Yet through his executive order on the death penalty,' Wells said, 'President Trump has sent a strong signal to states to push forward with executions.' Here's what we know about the four inmates facing execution this week: Gregory Hunt Alabama inmate Gregory Hunt has been on death row for more than 30 years. On Tuesday, he is expected to be executed via nitrogen hypoxia. Alabama became the first state to ever use the method in the execution of Kenneth Smith, which took about 15 minutes to complete. Hunt's execution would be the fifth by nitrogen hypoxia in the state and the second execution by nitrogen hypoxia this year, according to a spokesperson for Gov. Kay Ivey's office. Hunt – one of the 156 people on death row in the state – killed Karen Lane in the early hours of August 2, 1988, according to court documents. The two had been dating for about a month prior to her death. Lane was found with 60 injuries to her body, including lacerations and bruises to her head, body and organs, documents say. She also had a dozen fractured ribs, a fractured breastbone and evidence suggested she had been sexually assaulted. Hunt is representing himself in court, according to a spokesperson with the Alabama Attorney General's office. Anthony Wainwright Florida inmate Anthony Wainwright, 54, has been on death row for roughly 30 years for killing a woman after he and another man escaped from prison in 1994 in Newport, North Carolina. The two escapees stole a green Cadillac and burglarized weapons from a home before driving to Lake City, Florida, according to court documents. While in Lake City, the pair stole another car because the Cadillac was starting to overheat, documents say. The pair drove into a supermarket parking lot and spotted Carmen Gayheart, who was loading groceries into a Ford Bronco. They decided to take her car – first forcing her to get inside it at gunpoint – and drove to a wooded area where they 'raped, strangled, and executed' her with one of the stolen guns, court documents say. CNN has reached out to an attorney for Wainwright for comment. Wainwright's co-conspirator died in 2023, according to The Florida Department of Corrections. Wainwright is expected to be executed via lethal injection Tuesday. Gayheart's sister, Maria David, who attended every day of Wainwright's original trial, said the victim was a devoted mother of two who was beautiful inside and out. 'She loved those kids like nothing else, devoted wife. She was going to be an incredible nurse had she been left to live for the rest of her life,' David said. David, who also runs a Facebook page in her sister's honor, said she and other family members will at Wainwright's execution. 'This is just going to be closure for the legal aspect of Carmen's case,' David said. 'It doesn't bring closure for me, and I don't think any member of my family, by any means, because we're always going to live with the loss of Carmen.' Florida Gov. Ron DeSantis has signed seven death warrants in the first half of 2025, according to his office – if the two executions scheduled for June go forward, that would be just one short of the state's record of eight executions in a single year since the reinstatement of the death penalty in 1976. John Hanson John Hanson, 61, faces execution Thursday for the fatal shooting of Mary Bowles in August 1999, according to an Oklahoma Court of Criminal Appeals opinion outlining the case. According to prosecutors, Hanson and his co-defendant, Victor Miller, carjacked and kidnapped Bowles at a Tulsa mall, then drove her to a 'dirt pit' outside the city. There, prosecutors say, Hanson's co-defendant shot the man who owned the pit, Jerald Thurman, and Hanson fatally shot the 77-year-old woman. Hanson's attorneys contest this: They say there is evidence Miller was Bowles' true killer, having confessed while in prison to pulling the trigger. Additionally, Miller is now serving a life sentence after his death sentence was overturned – a glaring sentencing disparity given he is, according to Hanson's attorneys, more culpable than their client. They also argue that federal law was misinterpreted to facilitate Hanson's execution. While he has a death sentence in Oklahoma, Hanson has also been serving a federal life sentence for a robbery. Three years ago, Oklahoma officials asked the Bureau of Prisons to transfer Hanson to state custody so his execution could be carried out. The agency – then under the stewardship of the Biden administration – said no; it would not be in the 'public interest' because he hadn't completed his federal sentence. Oklahoma officials made the request again earlier this year, three days after Trump took office. This time, the administration – specifically Attorney General Pam Bondi – said yes, court records show. The transfer, she found, would comply with Trump's executive and promote 'state and federal cooperation on capital crimes.' Hanson is scheduled to be put to death by lethal injection, a spokesperson for the Oklahoma Department of Corrections told CNN. Bowles' family has voiced support for the execution to move forward. Her niece, Sara Parker Mooney, remembered her aunt, a lifelong Tulsa resident, as an active member of her community and a mentor to professional women: 'She was the matriarch of our family. She was truly beloved.' 'Mary's murder was indescribably difficult then, and it still is now,' she wrote. 'We have been worn out by the multiple trials, re-trials, and appeals. We find ourselves disappointed and angry with the machinations of the judicial system and the political aspects of the last years. We are ready to be done with this matter.' Stephen Stanko Stephen Stanko, 57, faces execution Friday for the 2005 murder of Henry Lee Turner, though he also has a second death sentence for the murder of Laura Ling. Stanko's execution warrant is tied to Turner's murder because the inmate had exhausted his appeals in that case, the South Carolina Department of Corrections said in a notice announcing his execution date. On April 7, 2005, Stanko murdered Ling, his girlfriend, the notice says. He also raped her daughter, who was at a minor at the time, and slit her throat – though she survived. Afterwards, Stanko went to Turner's home, where he shot and killed the 74-year-old before stealing his truck and fleeing. Stanko was arrested days later. Henry Turner's son remembered his father as a 'helper,' who was willing to lend a hand to anyone, including the man who killed him. 'He was my best friend,' said Roger Turner. While Roger supports Stanko's execution, he told CNN he had forgiven the inmate for murdering his father. But he wishes the execution had taken place sooner, lamenting the two-decade cycle of appeals that would periodically reignite interest in Stanko's case – and force him to revisit his father's killing time and again. 'Here it is, 20 years later, and I'm still reliving it. I'm still hearing the guy's name,' said Roger Turner. He intends to attend the execution. Should it move ahead, Stanko will be executed by lethal injection, a spokesperson for the South Carolina Department of Corrections told CNN. South Carolina inmates can choose their method of execution, with the electric chair and the firing squad as the other available options. CNN has reached out to Ling's daughter and Stanko's attorney for comment. Written by Dakin Andone, Michelle Watson, CNN
USA Today
07-05-2025
- Politics
- USA Today
'Time for him to atone': Death row inmate John Hanson denied clemency by Oklahoma board
'Time for him to atone': Death row inmate John Hanson denied clemency by Oklahoma board Show Caption Hide Caption Death penalty: Which states still use capital punishment The death penalty has been used in the U.S. since 1608. But various Supreme Court rulings have limited its use. Here's why it's controversial. Just the FAQs, USA TODAY The Oklahoma Board of Pardons and Parole denied death row inmate John Hanson clemency on May 7, putting his fate in the hands of the federal judiciary. The board voted 3-2 to deny Republican Governor Kevin Stitt the option to commute the sentence to life without parole, leaving Hanson, 61, to face execution on June 12 unless a federal judge issues a stay. His legal team presented arguments that the more culpable perpetrator received a lesser sentence and that a recent autism diagnosis were mitigating factors worthy of a clemency recommendation. "Between the irregularities in the legal proceedings in the case and what we saw happen, to Mr. Hanson versus for his equally, if not more culpable codefendant, I think that this case is really emblematic of arbitrariness and administration of the death penalty," Callie Heller, Hanson's legal counsel, told USA TODAY in an interview ahead of the hearing. Hanson received the death sentence following a conviction for murdering retired banker Mary Agnes Bowles, 77, after kidnapping her from the parking lot of a Tulsa mall on Aug. 31, 1999. Attorneys told the board that Hanson maintains his innocence in the killing. Oklahoma's Republican Attorney General Gentner Drummond argued in front of the board that the punishment should be carried out. "Today you've heard John Hanson shift blame onto others than himself. What you have not heard is genuine, heartfelt remorse," Drummond said at the hearing. "Now is the time for him to atone for the pain and suffering he has wrought." Hanson's apologies to the family members of the victims fell on deaf ears as they echoed Drummond's call for the execution to proceed. "I have looked for remorse and found nothing," Sara Parker Mooney, Bowles' niece, said. What was Hanson convicted of? Hanson and an accomplice, Victor Miller, wanted Bowles' car for a robbery spree, kidnapping her after she walked at the Promenade Mall in Tulsa for exercise, according to The Oklahoman − a part of the USA TODAY Network. Hanson punched her in the face when she asked if he had anyone who loved him, the lead prosecutor, former Tulsa County District Attorney Tim Harris, said in a Feb. 20 court declaration. Hanson shot her in a ditch near Owasso after Miller gunned down dirt pit owner Jerald Thurman, after he had spotted them on his property − according to testimony at Hanson's trial. Her body wasn't found for days. Hanson later told a friend, "Everything went bad." Hanson was sentenced to life in prison without the possibility of parole for the dirt pit owner's murder. Miller received life sentences without the possibility of parole for both killings after death sentences were thrown out on appeal. What does the clemency petition say? Hanson's clemency petition states that Miller was jailed with a man named Ahmod Henry in 2001 and confessed to him that he had actually been the shooter. In 2003, a Tulsa Police Department detective obtained Henry's statement on Miller's confession and the evidence was presented to Hanson's attorneys in 2005. Judge Caroline Wall granted Hanson a new trial based on the evidence but the decision was overturned by the Oklahoma Court of Criminal Appeals over questions of jurisdiction in 2006, according to the petition. "When you have these disparate sentences for people who have at least equal culpability, although in Mr. Hanson's case, there's a lot of a reason to argue that his codefendant has more culpability, you have to wonder, well, does that mean that the death sentence is inherently arbitrary and unreliable," Heller said. The petition also points to a report by Wall that said the death penalty was not the correct sentence for Hanson. "Counsel are not aware of any other capital cases in Oklahoma where a trial judge opined the death sentence imposed by the jury was not the appropriate sentence," the petition reads. Hanson's defense also says that juries did not hear evidence of how his autism made him susceptible to Miller's influence. Hanson was diagnosed in 2016. The diagnosis report cited by the petition says that there was, "unanimous opinion by family and friends that Victor Miller very easily and often manipulated Mr. Hanson into engaging in activities regardless of the possible outcomes." The state disputed the diagnosing doctor's credibility at the board hearing. "He was a follower, and he was gullible, and his codefendant was this very strong, domineering kind of personality," Heller said. "It really explains now exactly why Mr. Hansen was able to fall under his sway." Hanson returned to Oklahoma in Trump death penalty push Hanson was returned to Oklahoma about a month after President Donald Trump issued an executive order restoring federal executions. He was serving a life sentence for bank robbery and other federal crimes at the U.S. Penitentiary in Pollock, Louisiana. U.S. Attorney General Pam Bondi directed the Federal Bureau of Prisons to transfer Hanson from a Louisiana prison in February, "so that Oklahoma can carry out this just sentence." A federal judge in Louisiana declined to block the transfer, and Hanson arrived in Oklahoma in early March. Drummond asked the U.S. Department of Justice for the transfer on Jan. 23, three days after Trump issued the executive order. "For the family and friends of Mary Bowles, the wait for justice has been a long and frustrating one," Drummond said in a news release at the time of the transfer. "While the Biden Administration inexplicably protected this vicious killer from the execution chamber, I am grateful President Trump and Attorney General Bondi recognized the importance of this murderer being back in Oklahoma so justice can be served." Hanson had been set for execution in Oklahoma on Dec. 15, 2022, but the Biden administration blocked his transfer from federal custody. A regional director at the Federal Bureau of Prisons refused to release him, writing "his transfer to state authorities for state execution is not in the public interest." The position was in keeping with the Biden administration's opposition to the death penalty, a stance that led the administration to commute the sentences of almost all federal death row inmates.
Yahoo
07-05-2025
- Politics
- Yahoo
Pardon and Parole Board votes to deny clemency for death row inmate John Hanson
OKLAHOMA CITY (KFOR) – The Oklahoma Pardon and Parole Board voted to deny clemency for death row inmate John Hanson on Wednesday, May 7. Officials say Hanson and an accomplice carjacked and kidnapped 77-year-old Mary Bowles in Tulsa in 1999. Before she was shot to death, Hanson and his accomplice shot Jerald Thurman, an innocent bystander. LOCAL NEWS: Police searching for suspects after shooting leaves one injured in NW OKC 'The families of Mary Bowles and Jerald Thurman have waited more than a quarter-century to see justice carried out against this callous murderer,' Drummond said. 'I appreciate the Pardon and Parole Board for rejecting clemency today. The Biden Administration protected this monster from justice for too long. Now is the time for him to atone for the pain and suffering he has wrought. Justice will be delivered when the death penalty is rightly served on June 12.' According to Oklahoma Attorney General Gentner Drummond, Hanson was transferred from a Louisiana federal prison in March at his request. 'We heard that John Hanson is a changed man, a responsible and trustworthy member of his prison community and that he expresses remorse for the senseless murder of Mary Bowles. By refusing mercy, the State will now carry out the senseless killing of John Hanson.' responded Rev. Don Heath, Oklahoma Coalition to Abolish the Death Penalty Chair. Hanson's execution date is set for June 12, 2025. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to Oklahoma City.
Yahoo
06-02-2025
- Business
- Yahoo
Q1 2025 Central Garden & Pet Co Earnings Call
Friederike Edelmann; Vice President - Investor Relations and Corporate Sustainability; Central Garden & Pet Co John Hanson; President - Pet Consumer Products; Central Garden & Pet Co J.D. Walker; President - Garden Consumer Products; Central Garden & Pet Co Operator Ladies and gentlemen, thank you for standing by. Welcome to Central Garden & Pet's fiscal 2025 first quarter earnings call. My name is Julian and I'll be operator conference operator for today. (Operator Instructions). As a reminder, this conference call is being recorded. I will now turn the call over to Friederike Edelmann, Vice President, Investor Relations. Please proceed. Friederike Edelmann Good afternoon, everyone and thank you for joining Central's first quarter fiscal 2025 earnings call. Joining me today are Niko Lahanas, Chief Executive Officer; Brad Smith, Chief Financial Officer; John Hanson, President of Pet Consumer Products; and J.D. Walker, President of Garden Consumer Products. In a moment, Niko will share today's key takeaways followed by Brad who will discuss these in more detail. After their prepared remarks, J.D. and John will join us for our Q&A session. Before we begin, I would like to remind everyone that all forward-looking statements made during this call are subject to risks and uncertainties that could cause our actual results to differ materially from what those forward-looking statements express or imply today. A detailed description of central's risk factors can be found in our annual report filed with the SEC. Please note that Central undertakes no obligation to publicly update forward-looking statements to reflect new information, future events or other developments. Our press release and related materials including a GAAP reconciliation for the non-GAAP measures discussed on this call are available on Lastly, unless otherwise specified, all growth comparisons discussed during this call are made against the same period in the prior year. If you have any further questions after the call or any point during the quarter, please feel free to reach out to me directly and with that, let's begin, Niko. Thank you, Friederike, and good afternoon, everyone. Thank you for taking the time to join us today. I'd like to begin by highlighting the three key takeaways from this call. First, a strong start to the fiscal year. Thanks to excellent execution by team Central. Second, steady progress in simplifying our business and driving efficiency through footprint rationalization, portfolio optimization and cost structure improvements and third confidence in our outlook for the year. Now let me expand on these points. First quarter achievements. We delivered a solid performance in the first quarter with growth in both earnings per share and net sales. This was driven by timing of shipments across pet and garden categories and channels supported by favorable weather conditions for the garden business and timing of promotional activities in our pet business. Most notably, margins improved due to disciplined cost management and easing inflationary pressures. We're particularly encouraged by the robust continued growth in e-commerce which reflects our enhanced digital capabilities. These achievements are a testament to the dedication and hard work of team Central; their grit and unwavering commitment drive our success and because of them, we're building an even stronger future. Second, cost simplicity program. Our cost and simplicity program drives meaningful results. Initiatives implemented in prior periods are yielding tangible benefits and we continue to roll out new projects. Highlights of the first quarter include distribution optimization. Our new distribution center in Covington, Georgia has now been operational for over 100 days. This facility replaced seven legacy facilities significantly reducing our distribution footprint while increasing efficiency. Safety and productivity enhancements across all [BUs] we have implemented measures to improve safety, particularly within our merchandizing teams. These efforts have boosted productivity and overall output. Ecommerce expansion. We recently expanded our ecommerce operations to Eastern Pennsylvania. This new facility strengthens our ability to manage and fulfill our own direct to consumer business as well as drop shipments for retail partners more effectively. These initiatives are part of our broader strategy to make central leaner, more agile and more efficient. Positioning us for margin expansion while freeing up resources to support organic growth, strategic M&A and our commitment to social responsibility and environmental stewardship. On that note, we're proud to share some of our business units and teams have collaborated to support several animal welfare organizations, assisting communities impacted by the wildfires in the Los Angeles area. Our contributions include essential pet supplies such as dog beds, training pads, food and toys, along with a cash donation to LA County Animal Care & Control and Best Friends Animal Society. Third, our outlook for the fiscal year. We're confident in our strategy. Our team and the deliberate actions we're taking to drive sustainable and profitable growth in fiscal 2025 and beyond. As such, we're reaffirming our fiscal 2025 guidance for non-GAAP EPS of $2.20 or higher, maintaining our focus on delivering long term value. Looking ahead, we'll continue to exercise disciplined cost and cash management while strategically investing in critical capabilities particularly in e-commerce, digital and innovation. Our strategic M&A efforts remain focused on enhancing growth priorities, expanding capabilities and strengthening our portfolio. That said, we recognize the complexity of the external environment which includes macroeconomic and geopolitical uncertainties such as potential tariffs. Additionally, we expect ongoing consumer pressure, a competitive marketplace driven by promotions and challenges in the brick-and-mortar retail sector. In the garden business, we anticipate continued volatility from extreme weather patterns as a potential new normal. With the 2025 garden season still ahead of us, we're cautious not to overinterpret first quarter results, especially given the significant benefit from the favorable timing of shipments. As retailers work through existing inventories, we anticipate a softer second quarter than last year. With that. I'll turn it over to Brad. Thank you, Niko. Good afternoon, everyone. Building on Niko's key takeaways, I'll provide an overview of our first quarter results including the results of our two segments and our outlook for the fiscal year. Let's start with our first quarter results. Net sales increased 3% to $656 million driven primarily by timing of shipments supported by favorable weather on the garden side and timing of promotional activity on the pet side. Consolidated gross profit for the quarter grew $196 million up from $179 million a year ago and gross margin improved by 160 basis points to 29.8% driven by productivity gains and moderating inflation. SG&A expense of $168 million was 2% below the prior year. And SG&A as a percentage of sales decreased by 140 basis points to 25.5% reflecting continued cost discipline across our businesses. Operating income was $28 million compared to $8 million in the prior year quarter. And operating margin improved by 300 basis points to 4.3%. Below the line, net interest expense was $8 million compared to $10 million in the prior year driven by higher interest income as a result of larger cash balances. Other expense was $2 million compared to other income of $1 million a year ago. Net income was $14 million compared to 430,000. And earnings per share came in at $0.21 compared to a penny a year ago. Adjusted EBITDA for the quarter was $55 million compared to $37 million. And our tax rate for the quarter was 23.5%. Now provide highlights from our two segments, starting with pet. Pet net sales increased 4% to $427 million with growth primarily in dog and cat more than offsetting lower sales in aquatics driven by our decision to exit low margin skews. Consumable sales grew mid-single digits while durable sales saw single digits decline and encouraging improvement compared to the double-digit declines of the past five quarters. Although consumable shipments were strong during the quarter, POS for consumables remained relatively flat. Overall, we held market share with gains in e-commerce successfully offsetting declines in brick-and-mortar channels. E-commerce now accounts for 28% of net of pet sales with net sales growing 6% over prior year. This growth was driven by the addition of new products and further improvements in conversion rates which contributed to share growth across multiple categories online. Operating income for pet was $51 million up from $43 million in the prior year. Operating margin improved by 140 basis points to 12% driven by productivity gains resulting from our cost and simplicity program and moderating inflation. As a result, pet segment adjusted EBITDA increased to $61 million compared to $54 million a year ago. Moving to garden. Garden net sales were $229 million, a 2% increase from a year ago. This growth was driven by strong performance in wild bird and controls and fertilizer which more than compensated for lower sales in our distribution business. Overall, shipments for the quarter exceeded POS reflecting large initial early season shipments for store sets during the month of December. Garden e-commerce sales while less developed than pet had another record quarter growing double digits across pure play and omnichannel retailers. Thanks to new items, optimized content and centralized retail media efforts that boosted engagement and conversion rates across accounts and business units. Operating income for garden was $2 million compared to $9 million operating loss in the prior year quarter. Operating margin came in at 1.1% compared to a negative 3.9% a year ago, driven by moderating inflation and productivity gains. Finally, garden segment adjusted EBITDA was $14 million compared to $2 million in the prior year quarter. As Niko mentioned, Q1 is typically our smallest quarter particularly for the garden segment where the 2025 season is still ahead of us. While we're pleased with the strong performance in the first quarter, it would be premature to draw conclusions for the full year. Let me now address the balance sheet and cash flows. Cash used by operations was $69 million for the quarter versus $70 million in the prior year quarter. Our ongoing focus on working capital management led to further inventory reductions this quarter compared to the prior year across both the pet and garden segments. CapEx for the quarter was $6 million which was less than the prior year. Depreciation and amortization for the quarter was $22 million, also slightly below the prior year. During the quarter, we purchased approximately [1 point million shares] or $54 million of our stock. As of quarter end, $131 million remains available under the share repurchase programs, with additional shares authorized under the equity dilution plan. Total debt of $1.2 billion was in line with the prior year. We ended the quarter with a gross leverage ratio of 2.9 times compared to 3 times a year ago, below our target range of 3 to 3.5 times. We had no borrowings under our $750 million credit facility at the end of the first quarter. Cash and cash equivalents at the end of the first quarter were $618 million compared to $341 million in the prior year, an increase of $277 million after our usual Q1 working capital build. Given our strong financial position, we remain actively focused on identifying high growth, consumable companies with accretive margins. Our goal is to build scale and core categories strategically in adjacent categories and enhance key capabilities to drive long term growth and value creation. Turning to our fiscal '25 outlook. As Nico mentioned, our guidance remains unchanged from November. Given our first quarter performance benefited from favorable timing of shipments and promotional activities, we expect a softer second quarter compared to last year. However, we remain confident in achieving non-GAAP EPS of $2.20 or better for the fiscal year. This outlook underscores our confidence in the strength of our strategy and action plans and in the resilience of our team as we navigate near term macroeconomic, geopolitical and weather uncertainties. As we look at CapEx, we plan to invest approximately $60 million to $70 million this fiscal year. These investments will be focused on productivity enhancing initiatives and essential maintenance across both our segments. Our fiscal year outlook assumes the currently proposed tariffs that excludes potential impacts from acquisitions, divestitures or restructuring activities including initiatives under the cost and simplicity program that may arise during fiscal '25. We would now like to open the line for questions. Operator Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Bill Chappell, Truist Securities. Hi, good afternoon. Hey, Bill. Niko, I don't really know. Am I supposed to say congratulations on the quarter or was this all a pull forward? And so, everything's just exactly as you expected. I wouldn't say it was exactly how we expected otherwise. We would have guided you a little better. Yeah, we had some timing. I wouldn't call it pull forward. I think it was more of a timing of shipments. We had some businesses that just loaded in a little bit earlier than prior year. I would say, but it's a combination as well, right. It's, we had some favorable mix, good weather, a little bit of timing, and some great execution. So, all of it kind of came together. I think you'll see some of that come out of Q2 as we stated in the prepared remarks. And I guess we're trying to understand, is how much of that, I mean, is that majority of, and also with that, kind of a bigger question. I understand that the timing of shipments on garden just, and usually that's a bullish sign that the retailers are getting ready earlier for the season. But I don't remember seeing the timing of shipments on pet change that much. So maybe you could help us there. Yeah. So, we do have some seasonal pet businesses, one of which is our cushion business Arden, and that loaded in a little bit earlier as well. That's also obviously outdoor cushion so very much a springtime type business and, we had some earlier orders. So, pet -- a few of the pet business has got pulled along as well. I don't know, John, do you have anything to do? John Hanson And then we had some promotional activity from early Q2 that got pulled into Q1 that honestly, we just hadn't planned for. Yeah, I mean, on the --, this is Brad. I mean, the timing of when the customer needs shipments to go out to plan for those promotional activities can move around on fairly short notice as well. So, we were expecting more of the shipments to hit in Q2 that actually ended up hitting sooner in Q1. But this was all normal year over year activity in terms of there were no big new promotions. It was fairly consistent with the prior year and there was certainly, we just underscore there was not a situation where we were intentionally trying to pull forward. John Hanson No not at all. And even the seasonal businesses that pulled forward, honestly, we view that as a good thing, because customers are excited about the season, they want to take the inventory early, which is a good thing. Got it. And then, you somewhat surprisingly, you said in the release that you have accounted for some tariff activity in your guidance. Maybe you can give us some more color of what you've accounted and where you might expect to see issues. Yeah, so, I mean, we've been obviously like everyone watching very closely where things are heading with tariffs. Obviously, this week, it's been quite a wild ride to say the least. But you know, we've looked at the potential, we sized up the potential impact of the 10% tariff on China as well as 25% on Canada and Mexico and we were able to get comfortable that given our exposure and the timing of when that would hit some of the mitigation strategies we've got in place that we'd be able to tackle those, absorb those and still based on everything we see in front of us, stay within our guide. Great, thanks so much. Thank you. Operator Brad Thomas, KeyBanc Capital Markets. Hi. Thanks for taking my question. Niko, I was hoping to follow up just on that topic of some of the policy changes and was wondering if you could talk about your opinion the [de minimis] exemption and it potentially being closed or substantially reduced and, just how much impact do you think that may be having on your pet category right now, for example. Yeah, I'll kick it off and I'll let John fill in. He knows a hell of a lot more than I do about it, but we're very pleased that, you know, Washington finally decided to address the issue. We'll have to see how it plays out. I think it's going to probably affect the durable category the most going forward, but I think we still have to see how that plays out. I think, if you dig a little bit deeper, we'd still love to see, live animal and petted options really take off and see that household penetration rate increase and I think with that you'll see the durables pick up, but certainly it should level the playing field. John Hanson Yeah. You know, just to build on that a little bit, we've seen durable declines, you know in Q1, I think there were low double digits. Sequentially, you know improvement versus prior quarters, so think around that 12% range for the category. You know, it's really difficult for us to say, hey, how much of that is, soft pet ownership or soft pet acquisition, versus what is coming out of [Asia], via e-comm and low price goods, we know it's having an impact, no doubt about it because you can just go on the web page and you can look and see what they're offering, the prices they're offering. So, we think it's a really good thing going forward and we're just going to have to wait and see how that impacts the back half. I appreciate it and if I could follow up on the live goods category, I know that better weather is a really big opportunity for you all. You know, fingers crossed here for the spring, but just as you think about retail doors that you're in and placements, any color that you could share on just what the underlying business would look like on kind of a like for like basis if weather doesn't change. Are you up or down, as we think about lab goods, how should we think about that? J.D. Walker A great question, Brad. This is J.D., I'll take that. So, first of all, regarding lab goods, obviously, they had a material impact on our performance last year. The lab goods business turned in a very solid quarter in Q1 and I'm proud of the business unit. I think they delivered on their financial commitments, and it reflects a lot of the good work that they've done in getting this, the business to a better business model and overall better business performance. So, they've rightsized SG&A, rationalized the product offering and that includes exiting some unprofitable geographies or unprofitable skews. They've optimized facilities at least started that process, so getting the footprint right. Obviously, that's Q1 and this is --, this business or the season is still in front of us. It's mainly a Q3 season, but we really like the operating [cadence] and the rhythm that they're in right now and if weather cooperates, if mother nature does her role here, I think that this business turns in a much better business performance year over year. So, we feel much better about it. That's great. And maybe if I could squeeze the last one in just on the new distribution facility that you have, can you think of -- help us think about the capacity, of the facility and perhaps how it might fit into acquisitions and growth going forward here? Yeah, I mean, it's a large, what I would call more [state-of-the-art facility] than what we had before and we've taken, roughly seven other facilities and folded them in there. It's got high ceilings, you know, more doors than, we've ever had before and some room to grow. Largely right now you can think of this as a garden project where we've, put mainly garden products in there, but we had our entire pet segment come and tour the facility. I think, we're very close to, seeing us begin to distribute product, both pet and garden products out of one facility. We continue to, really shrink the footprint of the business in total, not just garden or pet, but really thinking through mixing centers and, what that looks like across the country and consolidating becoming more efficient. And I think it just allows us to be more agile, particularly on the garden side where, we're dealing with more just in time. This allows us to stage you know, shipments better and just be a more agile fast-moving org going forward. So, we're pretty excited about it. Very helpful. Thanks, Niko. Yes. Operator Jim Chartier, Monness, Crespi & Hardt. Hi, thanks for taking my questions. On the tariffs, can you just remind us, you know what percentage of your product is sourced from China, Mexico and Canada? Yeah. We've got about, I think 4% of it that is coming from China. Canada and Mexico are in combination about 2% roughly. And then we've got another 8% roughly of our product -- of our inputs that are coming from other countries. So, it's total like 15% of cost (multiple speakers) 14% to 15% that's coming abroad from abroad. Got it. Thank you. And then could you give us a little more color and kind of what a softer 2Q means? You know, sales down EPS down year over year and then if EPS is down, like, given the margin performance in first quarter, why would we think that the operating margin would be down year over year, second quarter? Well, the margin may not be down. What I would just say is so, first of all, I want to get away from guiding every quarter because as we've said in the past, we're going to be wrong a lot. So, I would just say directionally, it's not going to be what last Q2 was if you remember last Q2 was, pretty strong and we'll probably be below last year's Q2 EPS. With the timing of the shipments, I think, we'll look at the top line could be, down low single digits into the quarter. But beyond that, you know, product mix is going to play a big role. We have every intention of expanding margin and really having a great quarter in Q2 and then weather is going to play a role there as well. So, that's sort of when the garden season starts to really kick off. And then we want to see what POS does early on in Q2. Great. Thank you. Yes. Operator Bob Labick, CJS Securities. Good afternoon. Thanks for taking our question. I wanted to stick with the pet durable side. You've talked about it a little bit, maybe we can just dig down a little further, the hard good sales, obviously, there was an impact from the pandemic and pet ownership, and you've talked about some potential competition. What's the line of sight for recovery? Is there innovation that you can introduce, it can drive sales or, how do you see this, getting back to, flat to growth over time or is that (multiple speakers) expectation. John Hanson Well, certainly I'd kick it off by saying we believe in these categories long term. You know, we believe in a low to mid-single digit growth in these categories and if you think about COVID, it was a huge pull forward in live animals, right? And we're still working through that. There is no doubt about it, and we see that, in all the pet ownership and new pet acquisition numbers that, we get, there's, categories like small animal which include, rabbits and guinea pigs, that we're still seeing declines. So, we had to work through that. Durables often go with the live animal because when you buy the live animal, you buy it in enclosure, you buy feeding, watering, filtration if you're in aquatics. So, we got to work through it. I don't have a crystal ball to say, hey, when that's going to recover, but I do see durables. Sequentially, the declines are improving and then we had this wild card thrown at us, you know with, ecommerce direct imports coming in from Asia and those goods were cheap, really, really cheap and they get around that, the [minimus] tariff and that's been closed. So, I do think that is going to have an impact as we go forward, and then certainly as live animals pick back up which it will. History says it will, and I believe it will, and we all believe it will. You know, you're going to see durables recover as well. And, and we are innovating with, durables where it makes sense. So, if you think of sort of the razor, razor blade type of concept with our fish tanks, we've got the, you know, the blue IQ app that goes along with that, we've got some proprietary filtration that, you know you have the cartridges, which is the consumable, but they only fit our filtration system. So, we're doing some good innovation there. We're not just walking away from durables because they are important. And again, we try to be smart about how we go into the categories with respect to the durables and try to take, really the viewpoint of more of a razor, razor blade type mentality there, where we can. Okay, great, appreciate that. And speaking of the crystal ball, you obviously have a very strong balance sheet. And so, I was just curious if you could give us, you'd like to make, as you said, a creative acquisition, margin growth, etc. What's the M&A environment like out there now, given all of the, macroeconomic events and everything else, I'm not going to ask you if you can do something this year, but how has the environment changed? How is your pipeline? How do things look from an M&A perspective? Yeah, I mean, we were in discussions with a few deals. We currently still sort of are but it's, been more kind of anticipatory right now. I think everyone's waiting for the deal flow really to kick off and get going. There's been a lot of discussions with bankers. I think the activity levels up, we just haven't seen a ton of deals come across our desk as of yet, but I certainly think that there's a lot of anticipation in the market. I think, sellers are starting to take a hard look. We're hearing, from banks and others that, that pipelines are being formed. We just haven't seen it yet, but it feels like it's starting to come together and hopefully we'll have more to share as the year progresses. Okay, great. Thanks. Operator Brian McNamara, Canaccord Genuity. Hey, good afternoon, guys. I guess this one's for Niko. If I'm an investor looking at the stock, you guys have had a lot of stuff go wrong or, I guess out of your control over the last few years, you've had weather, you've had pet ownership, you've had the durables issue. What would you say to investors kind of kicking the tires on the stock for the first time? It sounds like things are starting to get a little bit better here, but I don't want to put words in your mouth. Yeah, I mean, I would, say that's exactly right. We have had a few rough weather years. We had the big pull forward as John mentioned via COVID on some of the pet categories. I would say if you look at the business, the teams here have done an incredible job of executing both through the pandemic and post pandemic. So, if you look at our margin profile compared to a lot of the other, you know consumer companies out there, we've, done a really good job and, I think our balance sheet reflects that if you look at our cash position, that's really a sign of, great execution around, you know, working cap, profitability, things like that. I would say right now, we're in a bit of a cycle, but to your point, and if you look at the numbers, it feels like we're starting to come out of that. We feel very good about the business. We love our categories, and I would say we have a very strong management team that's incredibly focused on the future. So, really love the organic business and then a strong balance sheet to go after some accretive M&A. To me, that's pretty exciting. Great. Thank you. Operator Andrea Teixeira, JP Morgan. Thank you. Good afternoon. I hope you're all well. I have a question and two clarifications, please. One is on the cost and simplicity program. I understand you don't provide outlook on that program, but your margin expansion was notable in the quarter. Obviously, you had some operating leverage with the shipments being earlier. But what was the magnitude would you say of the savings in Q1? And how much more do you anticipate in savings for the remainder of the fiscal? And the two follow ups. One is that what is actually doing better than expected that offset the impact of the tariffs or are you planning to take pricing against the impact in leading to a neutral, a neutral model line? And, and second, on the upside for the Q1 quarter, we just say that there was about, I think if my math is correct, it's about $20 million that was the beat against our estimates and consensus, that should probably come out from Q2 just as a [cadence]. It's important to model. Thank you very much for all of those. Yeah, I would say you're right on the cost and simplicity, a big part of our margin expansion was due to us continuing to take cost out. We're going to continue down that road where and Andrea, we're not going to guide, on the year and how much we're going to take out because again, just like us guiding the quarter, we're going to be wrong. And so, we're going to instead tell folks about it and you're going to see it in the margins as we go forward and we're going to continue to really optimize the footprint and the business. In terms of tariffs, I would say that, you know, pricing is going to be very difficult to go into retailers and try to take price. I think that's going to be a real challenge. So, really the [onus] is going to be on us to either work with the suppliers out there to see about some cost cutting. We have our own efforts here, where we're taking cost out in our cost and simplicity program. So, we have a way to expand margin that way. But I think taking price, you know, we guided, I think back in November, we said we were going to be net negative on the year in pricing by about $14 million, and I think we were net negative in this quarter. So really, it's being made up on volume and cost savings and just really good execution and I think that's going to have to continue forward. I just, I really don't see us going in with a ton of prices here. John Hanson And I would just echo that, I think working with our suppliers to minimize is a high priority for us. You know, we've looked and continue to look at country of origin, for our suppliers. But you know, as Niko said pricing is going to be very difficult to take. And on the upside for the quarter, just like thinking $20 million is a good number as Bill was started on the call asking like, it's not a pull forward, but obviously it has been the calendar, I understand like Easter is actually going to fall in your third quarter from what I -- a lot of companies are starting to talk about it because of the calendar shift. Not sure if, that, for the seeds for the gardening side will make any impact because folks will be more, I'm assuming there's more consumption occasions if they are not on a holiday. I mean, is that anything that impacts, maybe, the gardening is going to be okay. They're going to continue the same pace. Yeah, I think whether it will be a bigger component to Q2 and Q3 than where Easter falls, I think you're right. It will probably affect garden more than anything and probably live goods. But I would say getting back to your question the top line, I think conservatively, you could take that out of Q2 even though we really don't want to get into the habit of guiding the quarters. And then last but not least, the weather will play a role in Q2. And also, our POS the performance as the quarter goes so things could change as the quarter progresses. J.D. Walker Yeah. Yeah. Niko just building off that. (multiple speakers) It is favorable to us when we have an earlier Easter. So, last year Easter was at the end of Q2 in late March. That's more preferable than the third week of April like it is this year. But having said that Niko's right, weather far outweighs the impact of having a later Easter. We are getting into peak season in that time, though late April early may will be peak season for us. And then that's super helpful and then just as obviously the disaster of like the fires, is there any anything we should be cognizant of? Of course, like you know, the human impact is and obviously the [pat] impact, I appreciate that you donated a fair amount as you put it in the prepared remarks but anything we should be aware of in terms of the impacts here. Yeah, we can't really think of anything other than a lot of unfortunate people were displaced but you know, we're doing everything we can to try to help folks down in Southern California. Okay, fair enough. Thank you very much. I'll pass it on. Operator William Reuter, Bank of America. Hi guys. Good afternoon. This is [Rob on for Bill]. So, first question from us, you know, I appreciate the commentary around M&A but moving forward, given the large cash balance that you do have I guess absent M&A, what are you expecting? Any uses of cash to be -- Are you --, should we expect a similar level or a similar [cadence] of share purchases moving forward? It'll, so the way we look at the share purchase, well, first of all, I would say we still want to invest in the business, so that's always going to happen. We have a big balance, and we have a balance that size, really the first place you're going to look at M&A. Secondly, is really internally around CapEx as well as demand, creation, brand building, marketing, things like that. Third is we always look at stock buybacks. A lot of that has to do with where our own stock is trading. So, you saw us buy back pretty aggressively back in October where the stock had dropped, and we went in to support it because at the time, we viewed that as really a great value and an excellent way for us to return, you know, money and value to shareholders. So, I think those are really going to be our three areas. They continue to be those three. And I truly believe that M&A will pick up again, right now it's a little bit you know, there's a lot of anticipation. But I think that we're going to see it pick up. Great that super helpful. And then just a second from us, I guess maybe, you know, appreciate some of the color around, timing of shipments, but maybe if you could touch on, you know, sentiment and maybe optimism that you might be seeing, I guess, first around, you know, the garden segment, favorable weather and, you know, going into peak season and then as well, any commentary around the sentiment from your pet retailers. Thank you. J.D. Walker So, this is J.D. I'll go first and talk a little bit about outlook for this season. You know, I'd say that we're out of the gates. Well, a great start to the year. We're pleased with the financial performance of the garden segment, but we have to keep it in perspective, as we've said many times, we still have the season and 85% of our year is still in front of us. I am pleased that our team is executing at a really high level. So, our fall inventory build, gaining support from the retailers for the upcoming season display and promotional support execution at retail, all of those things are happening and that we're executing with excellence. So, I feel very good about that, and I feel like we're ready for the season. The retailers are also, highly engaged, very excited about the season. They drive an awful lot of their spring foot traffic through the lawn and garden department. So, they're very much engaged. And I'd say that our relationships with those retailers have never been better. So, kudos to our sales teams for that. I expect it to be a very competitive marketplace in the upcoming spring. But that's no surprise and I think we're ready for that with that promotional display support that I spoke to. So, I think in general, we feel very good about the controllable causal factors. Those things are within our control. We feel great about it and we're ready and I think that if, I said this earlier, but if mother nature does her part and we have decent weather, it doesn't have to be stellar. It was a challenge last year. So, I think just normal weather this year, whatever that looks like will be an improvement year over year and should lead to better results for the garden segment. So, we're cautiously optimistic. John Hanson And on the pet side, I'd say something pretty similar. You know, we're off to a really good start. We feel good where we're at. You know, we've got strong relationships with our customers. You know, we've done a really nice job, our sales force working with our business units, to identify you know, gaps and opportunities with our customers to drive more distribution. And I think we're going to see some nice distribution gains in the back half. So, we feel, really good where we're at to be able to, you know, have a really good year. You know, I think, that the challenge with the pet side is, hey, does this a new pet acquisition, pick up? And when does it pick up? And if it does, we get super excited where we're headed. I just add on the pet side. I mean, just exceptional execution e-comm and it continues to be a growth area. John Hanson You know, on e-comm, we have invested, we build capability around content, retail media, our data and analytics are much stronger than they were before. You know, we built additional fulfillment capabilities to give us more flexibility about how we get our product direct to the consumer, so we're doing all the right things and feel really good where we're at. Great. Thank you, guys, very much as well. Operator Carla Casella, JP Morgan. Hi. Most of my questions have been answered, but I'm just wondering if you could give us a little more color on the pet side about whether you're seeing any more stability in that pet specialty channel or if you're still seeing that channel mix shift towards mass and other. John Hanson Yeah, this is John. It's a challenge channel right now, honestly. And that a lot of that's driven by new pet acquisition, a lot of the consumers when they're looking for new pets, both to understand and get advice from retailers as well as make the purchase that go into pet specialty. So, traffic related to that new pet acquisition has been a bit soft. We stay really close. We've got great relationships, with the customers in that channel and you know, but in the near term, it is challenged. Okay, great. Thank you. Operator Hale Holden, Barclays. Hey, good afternoon. I just had two real quick ones. On the sequential improvement in pet durables, you know, how does that look like on a two-year basis? Are we really seeing [start to flatten out] towards a stabilized trend line that you can grow from or is it just seem ready to decline against easier year over year comps? John Hanson You know, it's less of a decline on a sequential basis, right? But it's still a year-on-year decline. And again, talking about the pet ownership, but also this [de minimis tariff] exception, it's a bit hard to quantify how much of that is related to inexpensive products coming out of Asia. You know, you can go on to some of these websites and look at, like a pet bed and it's very inexpensive coming out of Asia. You know, that is going to, you know, I don't know if it's going to stop but it certainly is going to be more challenging for that to happen. And I do believe that it's going to have a positive impact on our business. It's just hard to say how much right now Yeah. And then the second question I had is I know you guys have covered this a little bit on the call, but just really simplistically. What -- why was the pull forward in garden this quarter? You know, some of the things I heard was maybe the weather was better in December, maybe your customers were loading up a little bit earlier than normal. But I'm sure you got some pretty direct feedback from your larger customers and what drove it? J.D. Walker Sure, Hale, this is J.D. The --, I think that for the most part during the quarter consumption and shipments tracked very closely to one another. But historically, right at the end of December, we always have a number of shipments that go to our larger customers to set the stores for the upcoming spring season. So, they move from Christmas in their stores right into lawn and garden and that usually starts setting the first week in January. The initial shipments are scheduled to go late December. Now, most of our customers pick up at our DCs, distribution centers. So, it's difficult to predict exactly when those trucks are going to show up. They may show up a day or two before Christmas, some -- a lot of them show up between Christmas and New year. So, it's difficult for us to predict. We got more shipments out than we anticipated. We had the orders, their truck showed up and we were able to get those out in two less shipping days than what we had the prior year. So, all of those variables came into play. It made us, cautious in what we were predicting for the end of December. We actually got a lot more shipments out than we were anticipating. Kudos to our supply chain team. But that's what drove a lot of the shipments. Now, it's strictly timing. So, it's whether that ships at the last week of December, the first week of January, it's for the same purpose and it's not consumption driven. It's to set the stores for the coming spring season. So, the early shipments in December most likely normalize and come out of Q2 shipments. So, not a net gain, just a timing difference. That's all. Does that make sense? It makes total sense. I'm going to still give, Niko credit for the beat this quarter though. So, thank you guys. Thank you. J.D. Walker Absolutely. Friederike Edelmann This was our last question. Thank you everyone for joining us today. We're available to answer any additional questions you might have after this call. Thank you. Operator Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time. Sign in to access your portfolio
