ScottsMiracle-Gro Updates Outlook for Fiscal 2020; Net Sales, Non-GAAP Adjusted Earnings Expected to Exceed Prior Guidance
September 14 2020 - 4:05PM
The Scotts Miracle-Gro Company (NYSE: SMG), the world’s
leading marketer of branded consumer lawn and garden as well as
indoor and hydroponic growing products, announced today it expects
fiscal 2020 sales and non-GAAP adjusted earnings per share to
exceed the revised guidance the Company provided in late July.
“The momentum of our business continues to exceed our
expectations in both the U.S. Consumer and Hawthorne segments,”
said Randy Coleman, executive vice president and chief financial
officer. “For fiscal 2020, which ends September 30, we now expect
non-GAAP adjusted earnings will be approximately $7.25 per share
driven by company-wide sales growth of more than 30 percent.
“The drivers of our business over the past six months – strong
consumer demand and highly engaged retailer support – are expected
to carry into the first quarter of fiscal 2021 and give us a solid
start to the year. We continue to expect lower expenses next year
will provide tailwinds of roughly a dollar per share. We will
provide more details when we provide fiscal 2021 guidance in
November.”
ScottsMiracle-Gro management is participating tomorrow,
September 15, in the Raymond James North American Equities
Conference. Interested parties can listen to a live webcast on the
Company’s investor relations website at
http://investor.scotts.com.
About ScottsMiracle-Gro With
approximately $3.2 billion in sales, the Company is one
of the world's largest marketers of branded consumer products for
lawn and garden care. The Company's brands are among the most
recognized in the industry. The Company's Scotts®, Miracle-Gro® and
Ortho® brands are market-leading in their categories. The Company’s
wholly-owned subsidiary, The Hawthorne Gardening Company, is a
leading provider of nutrients, lighting and other materials used in
the indoor and hydroponic growing segment. For additional
information, visit us at www.scottsmiraclegro.com.
Forward Looking Non-GAAP MeasuresIn this
release, the Company presents its updated outlook for fiscal 2020
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:
- The ongoing COVID-19 pandemic could have a material adverse
effect on the Company’s business, results of operation, financial
condition and/or cash flows;
- Compliance with environmental and other public health
regulations or changes in such regulations or regulatory
enforcement priorities could increase the Company’s costs of doing
business or limit the Company’s ability to market all of its
products;
- Damage to the Company’s reputation or the reputation of its
products or products it markets on behalf of third parties could
have an adverse effect on its business;
- The highly competitive nature of the Company’s markets could
adversely affect its ability to maintain or grow revenues;
- If the Company is unable to effectively execute its e-commerce
business, its reputation and operating results may be harmed;
- 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;
- Climate change and unfavorable weather conditions could
adversely impact financial results;
- Certain of the Company’s products may be purchased for use in
new or emerging industries or segments and/or be subject to
varying, inconsistent, and rapidly changing laws, regulations,
administrative practices, enforcement approaches, judicial
interpretations and consumer perceptions;
- The Company’s operations may be impaired if its information
technology systems fail to perform adequately or if it is the
subject of a data breach or cyber-attack;
- The Company may not be able to adequately protect its
intellectual property and other proprietary rights that are
material to the Company’s business;
- In the event the Third Restated Marketing Agreement for
consumer Roundup products terminates, or Monsanto’s consumer
Roundup business materially declines the Company would lose a
substantial source of future earnings and overhead expense
absorption;
- Hagedorn Partnership, L.P. beneficially owns approximately
26% of the Company’s common shares and can significantly influence
decisions that require the approval of shareholders;
- Acquisitions, other strategic alliances and investments could
result in operating difficulties, dilution and other harmful
consequences that may adversely impact the Company’s business and
results of operations.
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 King Executive Vice
President Investor Relations & Corporate Affairs (937)
578-5622
Scotts Miracle Gro (NYSE:SMG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Scotts Miracle Gro (NYSE:SMG)
Historical Stock Chart
From Apr 2023 to Apr 2024