SCOTTS MIRACLE GRO A 
By MARYSVILLE, Ohio, Aug. 6, 2013 /PRNewswire/ -- The Scotts Miracle-Gro Company (NYSE: SMG), the world's leading marketer of branded consumer lawn and garden products, today announced results for its fiscal third quarter ended June 29, 2013, as well as a 35 percent increase in its recurring quarterly dividend. The Company also said full-year adjusted earnings are trending toward the mid-point of its previous guidance range of $2.50 to $2.75 per share.
Net sales increased $93 million, or 9 percent, to $1.15 billion for the quarter compared with $1.05 billion a year ago. Adjusted income from continuing operations was $153.9 million, or $2.46 per share, compared with $100.8 million, or $1.62 per share a year ago.
The Company said consumer purchases in the U.S. at its largest retail partners increased 15 percent during the third quarter compared to a year ago. Consumer purchases increased in every category and total market share remained stable from 2012. Year-to-date consumer purchases were essentially flat entering August, compared to a year ago.
"The level of consumer engagement we've seen since April has erased the deficit we had after a slow break to the season in March," said chairman and chief executive officer Jim Hagedorn. "In each area of the business, our team has done an outstanding job executing our plan this year. With less than two months remaining in our fiscal year, we now feel comfortable projecting that our full-year earnings should be at the mid-point of our guidance of $2.50 to $2.75 per share."
Separately, the Company announced its Board of Directors has approved a 35 percent increase in the quarterly dividend to $0.4375 per share. The fourth quarter dividend is payable on September 10, 2013 to shareholders of record on August 27, 2013.
"As a result of our strong performance, we've been able to reduce our leverage to a point where we can execute our commitment to returning cash to our shareholders," said chief financial officer Larry Hilsheimer. "The increase in our quarterly dividend demonstrates a high degree of confidence in the strength of our business and ongoing cash flow. In addition to the activities we announced today, we will continue to weigh the benefits of future shareholder-friendly actions, the most likely of which in the near-term will be reinstituting our share repurchase plan."
Third Quarter Details
Global Consumer segment sales increased 10 percent to $1.05 billion in the third quarter compared to $960.7 million a year ago. Sales in the U.S. increased 8 percent during the quarter. Outside the U.S., sales increased 21 percent, excluding the impact of foreign exchange rates. Operating income for the Global Consumer segment was $261.7 million, compared to $171.7 million a year ago.
Scotts LawnService sales increased 2 percent to $89.9 million in the third quarter, compared to $87.8 million during the same quarter a year ago. Operating income for the segment was flat during the quarter at $22.3 million, compared to a year ago.
The company-wide adjusted gross margin rate was 38.6 percent, compared with 35.0 percent during the same quarter a year ago. The year-over-year increase was primarily due to improved leverage of fixed manufacturing and warehousing costs in addition to favorable commodity costs, pricing and other cost efficiencies.
Selling, general and administrative expenses (SG&A) in the third quarter decreased 4 percent, or $8.1 million, to $189.5 million, compared to $197.6 million a year ago. The year-over-year savings were driven by expense reduction as part of the Company's Project Max initiative.
Adjusted income from continuing operations was $153.9 million, or $2.46 per share, compared to $100.8 million, or $1.62 per share, for the same period a year ago. Those results exclude costs related to impairment, restructuring and other charges, as well as product registration and recall matters. Including those items, reported income from continuing operations for the third quarter was $148.2 million, or $2.37 per share, compared with $96.4 million, or $1.55 per share, compared to a year ago.
During the quarter the Company recorded $8.5 million in restructuring charges, primarily attributed to its efforts to improve the profitability of its international operations.
Year-to-Date Details
Net sales for the nine months were $2.37 billion, a decrease of 2 percent from net sales of $2.42 billion a year ago. The change in sales was attributable to lower unit volume in the Global Consumer segment, partially offset by increased pricing.
The adjusted company-wide gross margin rate for the first nine months of fiscal 2013 was 35.9 percent, compared to 35.3 percent a year ago. SG&A decreased $36.0 million to $521.0 million for the nine months of fiscal 2013.
Adjusted income from continuing operations for the first nine months of fiscal 2013 was $185.5 million, or $2.97 per share, compared to $161.4 million, or $2.61 per share a year ago. Those results exclude costs related to impairment, restructuring and other charges, as well as product registration and recall matters. Including those items, reported income from continuing operations for the first nine months was $179.8 million, or $2.88 per share, compared with $149.8 million, or $2.42 per share, compared to a year ago.
Full-Year Outlook
In refining its full-year earnings guidance, the Company said it continues to expect fiscal 2013 net sales ranging from a 1 percent decrease to an increase of 1 percent compared to a year ago. SG&A savings are expected to be at the upper end of its previous guidance range of 3 percent to 5 percent for the year. In addition, the Company said it expects improvement of 60 to 100 basis points for the full-year adjusted gross margin rate.
The Company reiterated expectations for operating cash flow of at least $250 million in fiscal 2013 due to strong operating results, improvements in working capital and one-time tax benefits.
Conference Call and Webcast Scheduled for 9:00 a.m. ET Today, August 6
The Company will discuss its results during a webcast and conference call today at 9:00 a.m. ET. Conference call participants should call 877-641-0093. A replay of the call can be heard by calling 888-284-7564 (Reference ID: 2986161). The replay will be available for 30 days. The live webcast is available at http://investor.scotts.com. An archive of the webcast, as well as accompanying financial information regarding any non-GAAP financial measures discussed by the Company during the call, will be available on the website for at least 12 months.
About ScottsMiracle-Gro
With more than $2.8 billion in worldwide sales, The Scotts Miracle-Gro Company, through its wholly-owned subsidiary, The Scotts Company LLC, 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 North America and most of Europe exclusively by Scotts and owned by Monsanto. In the U.S., we operate Scotts LawnService®, the second largest residential lawn care service business. In Europe, the Company's brands include Weedol®, Pathclear®, Evergreen®, Levington®, Miracle-Gro®, KB®, Fertiligene® and Substral®. For additional information, visit us at www.scotts.com.
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;
-- The Company depends on key personnel and may not be able to retain those
employees or recruit additional qualified personnel;
-- 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 30% 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.
THE SCOTTS MIRACLE GRO-COMPANY
Condensed Consolidated Statement of Operations
(In millions, except for per common share data)
(Unaudited)
Three Months
Ended Nine Months Ended
------------- -----------------
Footnotes June 29, June 30, % June 29, June 30, %
Change Change
2013 2012 2013 2012
---- ---- ---- ----
Net sales $1,148.1 $1,054.9 9% $2,373.5 $2,424.9 (2)%
Cost of sales 704.8 685.7 1,520.3 1,568.2
Cost of sales - impairment, restructuring and other 1.5 - 1.6 -
Cost of sales - product registration and recall matters - 0.2 - 0.4
--- --- --- ---
Gross profit 441.8 369.0 20% 851.6 856.3 (1)%
% of sales 38.5% 35.0% 35.9% 35.3%
Operating expenses:
Selling, general and administrative 189.5 197.6 (4)% 521.0 557.0 (6)%
Impairment, restructuring and other 7.0 (0.4) 6.7 7.1
Product registration and recall matters - 3.8 - 7.4
Other income, net (4.9) (2.2) (7.5) (3.5)
---- ---- ---- ----
Income from operations 250.2 170.2 47% 331.4 288.3 15%
% of sales 21.8% 16.1% 14.0% 11.9%
Interest expense 16.8 16.6 47.9 49.8
---- ---- ---- ----
Income from continuing operations before income taxes 233.4 153.6 52% 283.5 238.5 19%
Income tax expense from continuing operations 85.2 57.2 103.7 88.7
---- ---- ----- ----
Income from continuing operations 148.2 96.4 54% 179.8 149.8 20%
Income (loss) from discontinued operations, net of tax (3) - (3.1) 0.7 (3.2)
--- ---- --- ----
Net Income $148.2 $93.3 $180.5 $146.6
====== ===== ====== ======
Basic income per common share: (1)
Income from continuing operations $2.40 $1.58 52% $2.91 $2.45 19%
Income (loss) from discontinued operations - (0.05) 0.01 (0.05)
Net Income $2.40 $1.53 $2.92 $2.40
===== ===== ===== =====
Diluted income per common share: (2)
Income from continuing operations $2.37 $1.55 53% $2.88 $2.42 19%
Income (loss) from discontinued operations - (0.05) 0.01 (0.05)
--- -----
Net income $2.37 $1.50 $2.89 $2.37
===== ===== ===== =====
Common shares used in basic income per share calculation 61.7 61.1 1% 61.7 61.0 1%
==== ==== ==== ====
Common shares and potential common shares used in diluted income per share calculation 62.6 62.2 1% 62.5 62.0 1%
==== ==== ==== ====
Non-GAAP results from continuing operations:
Adjusted income from continuing operations (4) $153.9 $100.8 53% $185.5 $161.4 15%
====== ====== ====== ======
Adjusted diluted income per share from continuing operations (2) (4) $2.46 $1.62 52% $2.97 $2.61 14%
===== ===== ===== =====
Adjusted EBITDA (3) (4) $266.4 $185.0 44% $381.3 $338.0 13%
====== ====== ====== ======
Note: See accompanying footnotes at the end of the release.
THE SCOTTS MIRACLE-GRO COMPANY
Net Sales and Income from Continuing Operations before Income Taxes by Segment
(In millions)
(Unaudited)
The Company is divided into the following reportable segments: Global Consumer and Scotts LawnService®. This division of reportable segments is consistent with how the segments report to and are managed by the chief operating decision maker of the Company.
Segment performance is evaluated based on several factors, including income from continuing operations before amortization, product registration and recall costs, impairment, restructuring and other charges, which is not a generally accepted accounting principle ("GAAP") measure. Senior management of the Company uses this measure of operating profit to evaluate segment performance because we believe this measure is the most indicative of performance trends and the overall earnings potential of each segment.
Corporate & Other consists of revenues and expenses associated with the Company's supply agreements with Israel Chemicals Ltd. and the amortization related to the Roundup® Marketing Agreement, as well as corporate, general and administrative expenses and certain other income/expense items not allocated to the business segments. Corporate & Other assets primarily include deferred financing and debt issuance costs and corporate intangible assets, as well as deferred tax assets.
Three Months
Ended Nine Months Ended
------------- -----------------
June June % June June %
29, 30, Change 29, 30, Change
2013 2012 2013 2012
---- ---- ---- ----
Net Sales:
----------
Global Consumer $1,052.2 $960.7 10% $2,180.0 $2,229.4 (2)%
Scotts LawnService(R) 89.9 87.8 2% 167.6 161.3 4%
---- ---- ----- -----
Segment total 1,142.1 1,048.5 9% 2,347.6 2,390.7 (2)%
Corporate & Other 6.0 6.4 25.9 34.2
Consolidated $1,148.1 $1,054.9 9% $2,373.5 $2,424.9 (2)%
====== ====== ====== ======
Income from Continuing Operations before Income
Taxes:
------
Global Consumer $261.7 $171.7 52% $413.1 $377.4 9%
Scotts LawnService(R) 22.3 22.4 - % 4.4 4.9 (10)%
---- ---- --- ---
Segment total 284.0 194.1 417.5 382.3
Corporate & Other (22.8) (18.1) (70.3) (72.4)
Intangible asset amortization (2.5) (2.2) (7.5) (6.7)
Product registration and recall matters - (4.0) - (7.8)
Impairment, restructuring and other (8.5) 0.4 (8.3) (7.1)
Interest expense (16.8) (16.6) (47.9) (49.8)
----- ----- ----- -----
Consolidated $233.4 $153.6 52% $283.5 $238.5 19%
====== ====== ====== ======
THE SCOTTS MIRACLE-GRO COMPANY
Condensed Consolidated Balance Sheets
(In millions)
June 29, June 30, September
30,
2013 2012 2012
---- ---- ----
ASSETS (Unaudited) (Unaudited)
Current assets:
Cash and cash equivalents $105.4 $132.3 $131.9
Accounts receivable, net 682.3 613.9 330.9
Inventories 385.8 469.3 414.9
Prepaids and other current assets 135.0 130.6 122.3
----- ----- -----
Total current assets 1,308.5 1,346.1 1,000.0
Property, plant and equipment, net 409.8 387.7 427.4
Goodwill 315.2 309.1 309.4
Intangible assets, net 297.6 308.7 307.1
Other assets 31.2 32.5 30.5
---- ---- ----
Total assets $2,362.3 $2,384.1 $2,074.4
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of debt $165.5 $90.8 $1.5
Accounts payable 230.7 242.8 152.3
Other current liabilities 450.2 476.6 279.8
----- ----- -----
Total current liabilities 846.4 810.2 433.6
Long-term debt 548.1 680.4 781.1
Other liabilities 226.0 219.5 257.8
----- ----- -----
Total liabilities 1,620.5 1,710.1 1,472.5
Shareholders' equity 741.8 674.0 601.9
----- ----- -----
Total liabilities and shareholders' equity $2,362.3 $2,384.1 $2,074.4
======== ======== ========
THE SCOTTS MIRACLE-GRO COMPANY
Reconciliation of Non- GAAP Disclosure Items (4)
(In millions, except per common share data)
(Unaudited)
Three Months Ended June 29,
2013 Three Months Ended June 30, 2012
---------------------------- --------------------------------
As Impairment, Adjusted As Product Impairment,
Restructuring Reported Registration Restructuring
and Other and and Other Adjusted
Recall
Matters
Reported
--------
Net sales $1,148.1 $ - $1,148.1 $1,054.9 $ - $ - $1,054.9
Cost of sales 704.8 - 704.8 685.7 - - 685.7
Cost of sales - impairment, restructuring and other 1.5 1.5 - - - - -
Cost of sales - product registration and recall matters - - - 0.2 0.2 - -
--- --- --- --- --- --- ---
Gross profit 441.8 (1.5) 443.3 369.0 (0.2) - 369.2
% of sales 38.5% 38.6% 35.0% 35.0%
Operating expenses:
Selling, general and administrative 189.5 - 189.5 197.6 - - 197.6
Impairment, restructuring and other 7.0 7.0 - (0.4) - (0.4) -
Product registration and recall matters - - - 3.8 3.8 - -
Other income, net (4.9) - (4.9) (2.2) - - (2.2)
---- --- ---- ---- --- --- ----
Income from operations 250.2 (8.5) 258.7 170.2 (4.0) 0.4 173.8
% of sales 21.8% 22.5% 16.1% 16.5%
Interest expense 16.8 - 16.8 16.6 - - 16.6
---- --- ---- ---- --- --- ----
Income from continuing operations before income taxes 233.4 (8.5) 241.9 153.6 (4.0) 0.4 157.2
Income tax expense from continuing operations 85.2 (2.8) 88.0 57.2 0.1 0.7 56.4
---- ---- ---- ---- --- --- ----
Income from continuing operations $148.2 $(5.7) $153.9 $96.4 $(4.1) $(0.3) $100.8
====== ===== ====== ===== ===== ===== ======
Basic income per share from continuing operations $2.40 $(0.09) $2.49 $1.58 $(0.07) $ - $1.65
===== ====== ===== ===== ====== === === =====
Diluted income per share from continuing operations $2.37 $(0.09) $2.46 $1.55 $(0.07) $ - $1.62
===== ====== ===== ===== ====== === === =====
Common shares used in basic income per share calculation 61.7 61.7 61.7 61.1 61.1 61.1 61.1
==== ==== ==== ==== ==== ==== ====
Common shares and potential common shares used in diluted income per share calculation 62.6 62.6 62.6 62.2 62.2 62.2 62.2
==== ==== ==== ==== ==== ==== ====
Calculation of Adjusted EBITDA:
Income from continuing operations $148.2 $96.4
Income tax expense from continuing operations 85.2 57.2
Loss from discontinued operations, net of tax - (3.1)
Income tax expense from discontinued operations - 0.9
Interest expense 16.8 16.6
Depreciation 13.6 14.2
Amortization (including Roundup) 2.7 2.4
Impairment, restructuring and other - -
Product registration and recall matters - 0.2
Mark-to-market adjustments on derivatives (0.1) 0.2
Adjusted EBITDA $266.4 $185.0
====== ======
Note: See accompanying footnotes at the end of the release.
THE SCOTTS MIRACLE-GRO COMPANY
Reconciliation of Non- GAAP Disclosure Items (4)
(In millions, except per common share data)
(Unaudited)
Nine Months Ended June 29,
2013 Nine Months Ended June 30, 2012
--------------------------- -------------------------------
As Impairment, Adjusted As Product Impairment,
Reported Restructuring Reported Registration Restructuring
and Other and and Other Adjusted
Recall
Matters
--- ---
Net sales $2,373.5 $ - $2,373.5 $2,424.9 $ - $ - $2,424.9
Cost of sales 1,520.3 - 1,520.3 1,568.2 - - 1,568.2
Cost of sales - impairment, restructuring and other 1.6 1.6 - - - - -
Cost of sales - product registration and recall matters - - - 0.4 0.4 - -
--- --- --- --- --- --- ---
Gross profit 851.6 (1.6) 853.2 856.3 (0.4) - 856.7
% of sales 35.9% 35.9% 35.3% 35.3%
Operating expenses:
Selling, general and administrative 521.0 - 521.0 557.0 - - 557.0
Impairment, restructuring and other 6.7 6.7 - 7.1 - 7.1 -
Product registration and recall matters - - - 7.4 7.4 - -
Other income, net (7.5) - (7.5) (3.5) - - (3.5)
---- --- ---- ---- --- --- ----
Income from operations 331.4 (8.3) 339.7 288.3 (7.8) (7.1) 303.2
% of sales 14.0% 14.3% 11.9% 12.5%
Interest expense 47.9 - 47.9 49.8 - - 49.8
---- --- ---- ---- --- --- ----
Income from continuing operations before income taxes 283.5 (8.3) 291.8 238.5 (7.8) (7.1) 253.4
Income tax expense from continuing operations 103.7 (2.6) 106.3 88.7 (0.6) (2.7) 92.0
----- ---- ----- ---- ---- ---- ----
Income from continuing operations $179.8 $(5.7) $185.5 $149.8 $(7.2) $(4.4) $161.4
====== ===== ====== ====== ===== ===== ======
Basic income per share from continuing operations $2.91 $(0.09) $3.00 $2.45 $(0.12) $(0.07) $2.64
===== ====== ===== ===== ====== ====== =====
Diluted income per share from continuing operations $2.88 $(0.09) $2.97 $2.42 $(0.12) $(0.07) $2.61
===== ====== ===== ===== ====== ====== =====
Common shares used in basic income per share calculation 61.7 61.7 61.7 61.0 61.0 61.0 61.0
==== ==== ==== ==== ==== ==== ====
Common shares and potential common shares used in diluted income per share calculation 62.5 62.5 62.5 62.0 62.0 62.0 62.0
==== ==== ==== ==== ==== ==== ====
Calculation of Adjusted EBITDA:
Income from continuing operations $179.8 $149.8
Income tax expense from continuing operations 103.7 88.7
Income (loss) from discontinued operations, net of tax 0.7 (3.2)
Income tax expense from discontinued operations 0.2 0.9
Interest expense 47.9 49.8
Depreciation 41.0 39.6
Amortization (including Roundup) 8.1 7.3
Impairment, restructuring and other - 4.7
Product registration and recall matters - 0.2
Mark-to-market adjustments on derivatives (0.1) 0.2
Adjusted EBITDA $381.3 $338.0
====== ======
Note: See accompanying footnotes at the end of the release.
(1) Basic
income per
common
share
amounts
are
calculated
by
dividing
income
from
continuing
operations,
income
from
discontinued
operations
and net
income by
the
weighted
average
number of
common
shares
outstanding
during the
period.
--- -----------
(2) Diluted
income per
common
share
amounts
are
calculated
by
dividing
income
from
continuing
operations,
income
from
discontinued
operations
and net by
the
weighted
average
number of
common
shares,
plus all
potential
dilutive
securities
(common
stock
options,
stock
appreciation
rights,
performance
shares,
performance
units,
restricted
stock and
restricted
stock
units)
outstanding
during the
period.
--- -----------
(3) In the
fourth
quarter of
fiscal
2012, the
Company
completed
the wind
down of
the
Company's
professional
seed
business.
As a
result,
effective
in its
fourth
quarter of
fiscal
2012, the
Company
classified
its
results of
operations
for all
periods
presented
to reflect
the
professional
seed
business
as a
discontinued
operation.
--- -----------
(4) The
Reconciliation
of Non-
GAAP
Disclosure
Items
includes
the
following
non-GAAP
financial
measures:
Adjusted
income
from
continuing
operations
and
adjusted
diluted
income per
share from
continuing
operations
-These
measures
exclude
charges or
credits
relating
to
impairments,
restructurings,
product
registration
and recall
matters,
discontinued
operations
and other
unusual
items such
as costs
or gains
related to
discrete
projects
or
transactions
that are
apart
from, and
not
indicative
of, the
results of
the
operations
of the
business.
Adjusted
EBITDA -
This
measure is
calculated
as net
income
before
interest,
taxes,
depreciation
and
amortization
as well as
certain
other
items such
as the
impact of
the
cumulative
effect of
changes in
accounting,
costs
associated
with debt
refinancing
and other
non-
recurring,
non-cash
items
affecting
net
income.
We believe
this
measure
provides
additional
information
for
determining
our
ability to
meet debt
service
requirements.
The
presentation
of
adjusted
EBITDA
herein is
intended
to be
consistent
with the
calculation
of that
measure as
required
by our
borrowing
arrangements,
and used
to
calculate
a leverage
ratio
(maximum
of 3.50 at
June 29,
2013) and
an
interest
coverage
ratio
(minimum
of 3.50
for the
twelve
months
ended June
29, 2013).
The
Company
was in
compliance
with the
terms of
all debt
covenants
at June
29, 2013.
The Company
reports
its
financial
results in
accordance
with U.S.
generally
accepted
accounting
principles
(GAAP).
However,
management
believes
that
certain
non-GAAP
financial
measures
used in
managing
the
business
may
provide
users of
this
financial
information
additional
meaningful
comparison
between
current
results
and
results in
prior
operating
periods.
The
Company
believes
that these
non-GAAP
financial
measures
are the
most
indicative
of the
Company's
ongoing
earnings
capabilities
and that
disclosure
of these
non-GAAP
financial
measures
therefore
provides
useful
information
to
investors
and other
users of
its
financial
statements,
such as
lenders.
Non-GAAP
financial
measures
should be
viewed in
addition
to, and
not as an
alternative
for, the
Company's
reported
results
prepared
in
accordance
with GAAP.
-----------
SOURCE The Scotts Miracle-Gro Company
