ScottsMiracle-Gro Provides Recast of Non-GAAP Historical Financial Results Related to International Divestiture
October 18 2017 - 4:00PM
The Scotts Miracle-Gro Company (NYSE:SMG), the world’s leading
marketer of branded consumer lawn and garden products, said it has
furnished recast non-GAAP financial results for the past seven
fiscal quarters to the Securities and Exchange Commission to
reflect the impact of its recent divestiture of its European and
Australian operations.
Based on the earnings dilution of approximately $0.15 per share
associated with that transaction, the Company also said it expects
to report full-year non-GAAP adjusted earnings per share between
$3.85 and $3.95 when it releases its full-year results on Nov. 7.
These results – which are consistent with the Company’s previous
guidance – exclude the impact of impairment, restructuring, and
other charges, as well as the impact of the previous divestiture of
Scotts LawnService.
“We also expect to announce next month that
ScottsMiracle-Gro delivered a record level of operating cash flow
in fiscal 2017, exceeding our original expectations,” said Jim
Hagedorn, chairman and chief executive officer. “We continue to see
this metric as the most important factor in continuing to drive our
strategy and enhancing shareholder value.”
The Company said it will announce complete full-year results
prior to the opening of the financial markets on Tuesday, Nov. 7.
Management will discuss results for 2017 and provide initial
financial guidance for fiscal 2018 during a webcast conference call
at 9:00 a.m. that same day. Conference call participants should
call 866-548-2691 (Conference Code: 8042285).
A live webcast of the call will be available on the investor
relations section of the Company's website at
http://investor.scotts.com. An archive of the webcast, as
well as any accompanying financial information regarding any
non-GAAP financial measures discussed by the Company during the
call, will remain available for at least 12 months. In addition, a
replay of the call can be heard by calling 888-203-1112. The replay
will be available for 30 days.
About ScottsMiracle-GroThe Scotts Miracle-Gro
Company is the world's largest marketer of branded consumer
products for lawn and garden care. The Company's brands are
the most recognized in the industry. In the U.S., the
Company's Scotts®, Miracle-Gro® and Ortho® brands are
market-leading in their categories, as is the consumer Roundup®
brand, which is marketed in the U.S. and certain foreign countries
by Scotts and owned by Monsanto. In the U.S., we maintain a
minority interest in TruGreen®, the largest residential lawn care
service business, and in Bonnie Plants®, the largest marketer of
edible gardening plants in retail channels. The Company’s
wholly-owned subsidiary, The Hawthorne Gardening Company, is also a
leading provider of nutrients, lighting and other materials used in
the hydroponic growing industry. For additional information, visit
us at www.scottsmiraclegro.com.
Forward Looking Non-GAAP MeasuresIn this
release, the Company provides an updated outlook for fiscal 2017
non-GAAP adjusted EPS. The Company does not provide a GAAP EPS
outlook, which is the most directly comparable GAAP measure to
non-GAAP adjusted EPS, because changes in the items that the
Company excludes from GAAP EPS to calculate non-GAAP adjusted EPS,
described above, can be dependent on future events that are less
capable of being controlled or reliably predicted by management and
are not part of the Company’s routine operating activities.
Additionally, due to their unpredictability, management does not
forecast the excluded items for internal use and therefore cannot
create or rely on a GAAP EPS outlook without unreasonable efforts.
The timing and amount of any of the excluded items could
significantly impact the Company’s GAAP EPS. As a result, the
Company does not provide a reconciliation of guidance for non-GAAP
adjusted EPS to GAAP EPS, in reliance on the unreasonable efforts
exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.
Cautionary Note Regarding Forward-Looking
Statements Statements contained in this press release,
other than statements of historical fact, which address activities,
events and developments that the Company expects or anticipates
will or may occur in the future, including, but not limited to,
information regarding the future economic performance and financial
condition of the Company, the plans and objectives of the Company’s
management, and the Company’s assumptions regarding such
performance and plans are “forward-looking statements” within the
meaning of the U.S. federal securities laws that are subject to
risks and uncertainties. These forward-looking statements generally
can be identified as statements that include phrases such as
“guidance,” “outlook,” “projected,” “believe,” “target,” “predict,”
“estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,”
“anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,”
“should” or other similar words or phrases. Actual results could
differ materially from the forward-looking information in this
release due to a variety of factors, including, but not limited
to:
- Compliance with environmental and other public health
regulations could increase the Company’s costs of doing business or
limit the Company’s ability to market all of its products;
- Increases in the prices of raw materials and fuel costs could
adversely affect the Company’s results of operations;
- The highly competitive nature of the Company’s markets could
adversely affect its ability to maintain or grow revenues;
- Because of the concentration of the Company’s sales to a small
number of retail customers, the loss of one or more of, or
significant reduction in orders from, its top customers could
adversely affect the Company’s financial results;
- Adverse weather conditions could adversely impact financial
results;
- The Company’s international operations make the Company
susceptible to fluctuations in currency exchange rates and to other
costs and risks associated with international regulation;
- The Company may not be able to adequately protect its
intellectual property and other proprietary rights that are
material to the Company’s business;
- If Monsanto Company were to terminate the Marketing Agreement
for consumer Roundup products, the Company would lose a substantial
source of future earnings and overhead expense absorption;
- Hagedorn Partnership, L.P. beneficially owns approximately 27%
of the Company’s common shares and can significantly influence
decisions that require the approval of shareholders;
- The Company may pursue acquisitions, dispositions, investments,
dividends, share repurchases and/or other corporate transactions
that it believes will maximize equity returns of its shareholders
but may involve risks.
Additional detailed information concerning a number of the
important factors that could cause actual results to differ
materially from the forward-looking information contained in this
release is readily available in the Company’s publicly filed
quarterly, annual and other reports. The Company disclaims any
obligation to update developments of these risk factors or to
announce publicly any revision to any of the forward-looking
statements contained in this release, or to make corrections to
reflect future events or developments.
Contact:Jim KingSenior
Vice PresidentInvestor Relations & Corporate
Affairs(937) 578-5622
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