UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): January 29, 2008
(January 28, 2008)
The Scotts Miracle-Gro Company
(Exact name of registrant as specified in its charter)
| Ohio | 1-13292 | 31-1414921 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
14111 Scottslawn Road, Marysville, Ohio 43041
(Address of principal executive offices) (Zip Code)
(937) 644-0011
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operation and Financial Condition
On January 28, 2008, The Scotts Miracle-Gro Company (“the Company”) issued a News Release
concerning information regarding its results of operations and financial condition for the three
month period ended December 29, 2007. The News Release is attached hereto as Exhibit 99.1.
The News Release includes the following non-GAAP financial measure as defined in Regulation G:
EBITDA — This measure is provided as a convenience to the Company’s lenders because EBITDA
is a component of certain debt compliance covenants. EBITDA is calculated as net income or
loss before interest, taxes, depreciation and amortization. The Company’s calculation of
EBITDA does not represent and should not be considered as an alternative to net income or
cash flow from operations as determined by accounting principles generally accepted in the
United States of America. The Company makes no representation or assertion that EBITDA is
indicative of its cash flows from operations or results of operations. The Company has
provided a reconciliation of net loss to EBITDA solely for the purpose of complying with
Regulation G and not as an indication that EBITDA is a substitute measure for income (loss)
from operations.
Item 9.01. Financial Statements and Exhibits.
| (a) | Financial statements of businesses acquired: | ||
| Not applicable. | |||
| (b) | Pro forma financial information: | ||
| Not applicable. | |||
| (c) | Shell company transactions: | ||
| Not applicable. | |||
| (d) | Exhibits: |
Exhibit No.
|
Description | |
99.1
|
News Release issued by The Scotts Miracle-Gro Company on January 28, 2008 |
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE SCOTTS MIRACLE-GRO COMPANY | |||||
Dated: January 29, 2008
|
By: | /s/ David C. Evans | |||
| Printed Name: David C. Evans Title: Executive Vice President and Chief Financial Officer |
|||||
-3-
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated January 29, 2008
Dated January 29, 2008
The Scotts Miracle-Gro Company
Exhibit No.
|
Description | |
99.1
|
News Release issued by The Scotts Miracle-Gro Company on January 28, 2008 |
-4-
FOR IMMEDIATE RELEASE
| The Scotts Miracle-Gro Company | NEWS |
The Scotts Miracle-Gro Company Reports Record First Quarter Sales
Global Consumer sales up 15%, Scotts LawnService revenue increases 48%
Company reaffirms full-year earnings guidance
MARYSVILLE,
Ohio (January 28, 2008) – The Scotts Miracle-Gro Company (NYSE: SMG), the world’s
leading marketer of branded consumer lawn and garden products, today reported record first quarter
sales of $308.7 million, up 14 percent from the same period a year ago. The improvement was led by
a 15 percent increase in its Global Consumer business, as well as a 48 percent reported improvement
in Scotts LawnService. Global Professional sales increased 11 percent, and Smith & Hawken sales
declined 8 percent.
The Company reported a seasonal net loss of $56.8 million, or 89 cents per share, compared
with a loss of $59.4 million, or 88 cents per share, for the same period a year ago. During the
second quarter of 2007, the Company recapitalized, increasing its long-term borrowings by more than
$750 million to fund a share repurchase and special one-time dividend. On a pro forma basis – which
assumes the recapitalization had occurred at the beginning of fiscal 2007 – the Company’s loss in
the first quarter of fiscal 2007 would have been $68.6 million, or $1.09 per share.
“We had a strong start to the year with good sales growth throughout the business and control
over expenses,” said Jim Hagedorn, chairman and chief executive officer. “We are well positioned as
we prepare for the beginning of the lawn and garden season. We continue to see strong support from
our retail partners, and we remain confident that consumers will remain committed to the category
and to our brands.”
While sales in the first quarter typically represent less than 10 percent of the full year,
the Company said it was pleased to see strong growth in its consumer businesses in both the U.S.
and Europe. Sales to retailers in Europe increased 12 percent, led by strong increases in
1
both France and Germany. In the UK, shipments declined slightly, although the Company
continues to expect strong UK growth on a full-year basis. In the U.S., sales to retailers improved
17 percent from the prior year. Consumer purchases in the U.S., as measured by point-of-sale data,
increased more than 12 percent, and the Company saw improvements in every product category in the
U.S.
“Consumer purchases of lawn fertilizer improved 7 percent in the quarter, which reinforces our
confidence that consumers remain engaged in the category in spite of the economic concerns,”
Hagedorn said. “We also saw a nearly 60 percent year-over-year improvement in grass seed purchases
and a 10 percent improvement in growing media.”
Scotts LawnService had revenues of $38.3 million, compared with $25.8 million last year.
Strong customer growth and the timing of fall lawn care applications led to the improvement. Smith
& Hawken reported sales of $41.3 million, down 8 percent from $44.7 million. While furniture and
gardening sales were strong throughout the quarter, the sale of holiday items was slower than
expected.
Sales in Global Professional, a business that serves specialty agriculture and professional
growers, increased to $62.4 million from $56.4 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter
of fiscal 2008 was a loss of $52.6 million, compared with a loss of $68.2 million a year earlier.
Gross margin rate improved to 23.1 percent from 20.4 percent. Total SG&A expense for the first
quarter was $144.3 million, compared with $142.2 million. Interest expense in the first quarter was
$19.0 million, compared with $8.2 million due to the impact from the recapitalization.
“With the launch of new products this year, and a larger investment in both marketing and
sales support, we remain confident that sales this year can grow 6 to 8 percent and that operating
profits will improve by as much as 6 percent,” said Dave Evans, chief financial officer. “Due to
the incremental interest expense impact of our recapitalization in mid-2007 and our decision to
make investments in several long-term projects this year we remain committed to our guidance that
adjusted net income for fiscal 2008 will be flat to slightly down from 2007 levels.”
2
Entering
fiscal 2008, the Company changed its reporting segments to Global
Consumer, Global Professional, Scotts LawnService as well as
Corporate and Other. Historical financial results for these segments
are included in the financial tables that accompany this release.
The Company will discuss its first quarter 2008 results during a Webcast conference call at
10:00 a.m. Tuesday, January 29, 2008. The call will be available live on the investor relations section of the
ScottsMiracle-Gro Web site, 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 Web
site for at least 12 months.
About ScottsMiracle-Gro
With $2.9 billion in worldwide sales and more than 6,000 associates, 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, with products for professional
horticulture as well. 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. The Company also owns Smith & Hawken®, a leading brand of
garden-inspired products that includes pottery, watering equipment, gardening tools, outdoor
furniture and live goods, and Morning Song®, a leading brand in the wild bird food market. 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.
Statement under the Private Securities Litigation Act of 1995: Certain of the statements contained
in this press release, 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
in nature. Actual results could differ materially from the forward looking information in this
release, due to a variety of factors, including, but not limited to:
| • | Adverse weather conditions could adversely affect the Company’s sales and financial results; | ||
| • | The Company’s historical seasonality could impair the Company’s ability to pay obligations as they come due and operating expenses; | ||
| • | The Company’s substantial indebtedness could adversely affect the Company’s financial health; | ||
| • | Public perceptions regarding the safety of the Company’s products could adversely affect the Company; | ||
| • | The loss of one or more of the Company’s top customers could adversely affect the Company’s financial results because of the concentration of the Company’s sales to a small number of retail customers; | ||
| • | The expiration of certain patents could substantially increase the Company’s competition in the United States; | ||
| • | Compliance with environmental and other public health regulations could increase the Company’s cost of doing business; and, | ||
| • | The Company’s significant international operations make the Company more susceptible to fluctuations in currency exchange rates and to the costs of international regulation. |
Additional detailed information concerning a number of 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.
Contact:
Jim King
Vice President
Investor Relations & Corporate Affairs
(937) 578-5622
Jim King
Vice President
Investor Relations & Corporate Affairs
(937) 578-5622
3
THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations for the Three Months
Ended December 29, 2007 and December 30, 2006
(in millions, except per share data)
(Unaudited)
Note: See Accompanying Footnotes on Page 8
Results of Operations for the Three Months
Ended December 29, 2007 and December 30, 2006
(in millions, except per share data)
(Unaudited)
Note: See Accompanying Footnotes on Page 8
| Three Months Ended | ||||||||||||||||
| December 29, | December 30, | % | ||||||||||||||
| Notes | 2007 | 2006 | Change | |||||||||||||
Net sales |
$ | 308.7 | $ | 271.2 | 14 | % | ||||||||||
Cost of sales |
237.4 | 215.9 | ||||||||||||||
Gross profit |
71.3 | 55.3 | 29 | % | ||||||||||||
% of sales |
23.1 | % | 20.4 | % | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
144.3 | 142.2 | 1 | % | ||||||||||||
Other income, net |
(3.2 | ) | (2.3 | ) | ||||||||||||
Total operating expenses |
141.1 | 139.9 | 1 | % | ||||||||||||
Loss from operations |
(69.8 | ) | (84.6 | ) | 17 | % | ||||||||||
% of sales |
-22.6 | % | -31.2 | % | ||||||||||||
Interest expense |
19.0 | 8.2 | ||||||||||||||
Loss before taxes |
(88.8 | ) | (92.8 | ) | 4 | % | ||||||||||
Income tax benefit |
(32.0 | ) | (33.4 | ) | ||||||||||||
Net loss |
(56.8 | ) | (59.4 | ) | 4 | % | ||||||||||
BASIC LOSS PER COMMON SHARE: |
||||||||||||||||
Weighted-average common shares
outstanding during the period |
64.2 | 67.2 | -4 | % | ||||||||||||
Basic loss per common share |
(1 | ) | $ | (0.89 | ) | $ | (0.88 | ) | -1 | % | ||||||
DILUTED LOSS PER COMMON SHARE: |
||||||||||||||||
Weighted-average common shares
outstanding during the period |
64.2 | 67.2 | -4 | % | ||||||||||||
Diluted loss per common share |
(2 | ) | $ | (0.89 | ) | $ | (0.88 | ) | -1 | % | ||||||
EBITDA |
(3 | ) (4) | $ | (52.6 | ) | $ | (68.2 | ) | 23 | % | ||||||
Pro forma results as if the recapitalization
transactions and related
debt restructuring occurred as of the
beginning of fiscal 2007 |
||||||||||||||||
Pro forma net loss |
(4 | ) (5) | $ | (56.8 | ) | $ | (68.6 | ) | 17 | % | ||||||
Pro forma diluted loss per common share |
(4 | ) (5) | $ | (0.89 | ) | $ | (1.09 | ) | 18 | % | ||||||
4
THE SCOTTS MIRACLE-GRO COMPANY
Net Sales by Segment — Three Months
Ended December 29, 2007 and December 30, 2006
(in millions)
(Unaudited)
Net Sales by Segment — Three Months
Ended December 29, 2007 and December 30, 2006
(in millions)
(Unaudited)
| Three Months Ended | ||||||||||||
| December 29, | December 30, | |||||||||||
| 2007 | 2006 | % Change | ||||||||||
Global Consumer |
$ | 166.9 | $ | 144.5 | 15 | % | ||||||
Global Professional |
62.4 | 56.4 | 11 | % | ||||||||
Scotts LawnService® |
38.3 | 25.8 | 48 | % | ||||||||
Corporate & Other |
41.1 | 44.5 | -8 | % | ||||||||
Consolidated |
$ | 308.7 | $ | 271.2 | 14 | % | ||||||
5
THE SCOTTS MIRACLE-GRO COMPANY
Consolidated Balance Sheets
December 29, 2007 and December 30, 2006
(in millions)
(Unaudited)
Consolidated Balance Sheets
December 29, 2007 and December 30, 2006
(in millions)
(Unaudited)
| December 29, | December 30, | September 30, | ||||||||||
| 2007 | 2006 | 2007 | ||||||||||
ASSETS |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
$ | 64.5 | $ | 36.1 | $ | 67.9 | ||||||
Accounts receivable, net |
279.9 | 264.5 | 397.8 | |||||||||
Inventories, net |
663.9 | 629.1 | 405.9 | |||||||||
Prepaids and other current assets |
126.1 | 106.8 | 127.7 | |||||||||
Total current assets |
1,134.4 | 1,036.5 | 999.3 | |||||||||
Property, plant and equipment, net |
366.1 | 369.3 | 365.9 | |||||||||
Goodwill, net |
463.0 | 471.0 | 462.9 | |||||||||
Other intangible assets, net |
416.9 | 425.4 | 418.8 | |||||||||
Other assets |
28.6 | 25.8 | 30.3 | |||||||||
Total assets |
$ | 2,409.0 | $ | 2,328.0 | $ | 2,277.2 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Current liabilities |
||||||||||||
Current portion of debt |
$ | 28.1 | $ | 15.2 | $ | 86.4 | ||||||
Accounts payable |
232.4 | 220.9 | 202.5 | |||||||||
Other current liabilities |
259.2 | 205.0 | 297.7 | |||||||||
Total current liabilities |
519.7 | 441.1 | 586.6 | |||||||||
Long-term debt |
1,286.6 | 679.3 | 1,031.4 | |||||||||
Other liabilities |
184.8 | 166.0 | 179.9 | |||||||||
Total liabilities |
1,991.1 | 1,286.4 | 1,797.9 | |||||||||
Shareholders’ equity |
417.9 | 1,041.6 | 479.3 | |||||||||
Total liabilities and shareholders’ equity |
$ | 2,409.0 | $ | 2,328.0 | $ | 2,277.2 | ||||||
6
THE SCOTTS MIRACLE-GRO COMPANY
Reconciliation of Non-GAAP Disclosure Items for the Three
Months Ended December 29, 2007 and December 30, 2006
(in millions, except per share data)
(Unaudited)
Note: See Notes 4 and 5 to the Accompanying Footnotes on Page 8
Reconciliation of Non-GAAP Disclosure Items for the Three
Months Ended December 29, 2007 and December 30, 2006
(in millions, except per share data)
(Unaudited)
Note: See Notes 4 and 5 to the Accompanying Footnotes on Page 8
| Three Months Ended | ||||||||
| December 29, | December 30, | |||||||
| 2007 | 2006 | |||||||
Net loss |
$ | (56.8 | ) | $ | (59.4 | ) | ||
Incremental pro forma interest expense |
— | (14.3 | ) | |||||
Tax impact, including rate differential |
— | 5.1 | ||||||
Pro forma net loss |
$ | (56.8 | ) | $ | (68.6 | ) | ||
Diluted loss per common share |
$ | (0.89 | ) | $ | (0.88 | ) | ||
Incremental pro forma interest expense (net of tax) |
— | (0.14 | ) | |||||
Impact of change in fully diluted shares |
— | (0.07 | ) | |||||
Pro forma diluted loss per common share |
$ | (0.89 | ) | $ | (1.09 | ) | ||
Net loss |
$ | (56.8 | ) | $ | (59.4 | ) | ||
Income tax benefit |
(32.0 | ) | (33.4 | ) | ||||
Interest |
19.0 | 8.2 | ||||||
Depreciation |
13.1 | 12.7 | ||||||
Amortization, including marketing fees |
4.1 | 3.7 | ||||||
EBITDA |
$ | (52.6 | ) | $ | (68.2 | ) | ||
7
THE SCOTTS MIRACLE-GRO COMPANY
Footnotes to Preceding Financial Statements
(in millions, except per share data)
Footnotes to Preceding Financial Statements
(in millions, except per share data)
Results of Operations
| (1) | Basic earnings per common share is calculated by dividing net income by average common shares outstanding during the period. | |
| (2) | Diluted income per share is calculated by dividing net income by the average common shares and dilutive potential common shares (common stock options, stock appreciation rights, and restricted stock) outstanding during the period. | |
| (3) | EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA is not intended to represent cash flow from operations as defined by generally accepted accounting principles and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. | |
| (4) | The Reconciliation of Non-GAAP Disclosure Items includes the following non-GAAP financial measures (1) pro forma net loss, (2) pro forma diluted loss per common share and (3) EBITDA. The Company believes that the disclosure of these non-GAAP financial measures provides useful information to investors or other users of the financial statements, such as lenders. For pro forma net loss and pro forma diluted loss per common share, interest expense and diluted shares have been computed as if the recapitalization transactions were completed as described in Note 5 below. The presentation of EBITDA is provided as a convenience to the Company’s lenders because EBITDA is a component of certain debt covenants. | |
| (5) | During the second quarter of fiscal 2007, Scotts Miracle-Gro completed a significant recapitalization plan. The objective of this plan, announced on December 12, 2006, was to return $750 million to the Company’s shareholders. This was accomplished via a share repurchase that totaled $245.5 million, or 4.5 million shares, which was completed via a modified Dutch auction tender offer on February 14, 2007, and a special one-time cash dividend of $8.00 per share, totaling $508.0 million, which was paid on March 5, 2007 to shareholders of record as of February 26, 2007. | |
| In order to fund these transactions, the Company entered into new credit facilities aggregating to $2.15 billion. As part of this debt restructuring, the Company launched a successful tender offer for all of its $200 million 6 5/8% senior subordinated notes, which were retired in the second quarter. | ||
| Subsequent to the completion of this recapitalization, the Company’s interest expense has been and will be significantly higher as a result of the borrowings incurred to fund the cash returned to shareholders and related expenses. The following pro forma incremental interest expense has been determined as if the Company had completed these recapitalization transactions as of October 1, 2006 for fiscal 2007. Borrowing rates in effect as of March 30, 2007 were used to compute this pro forma interest expense. As the recapitalization involved a share repurchase, pro forma diluted shares are also provided. |
| Fiscal 2007 | ||||||||
| Q1 | Q2 | |||||||
Incremental interest on recapitalization borrowings |
$ | 13.1 | $ | 8.7 | ||||
New credit facility interest rate differential |
1.0 | 0.5 | ||||||
Incremental amortization of new credit facility fees |
0.2 | 0.1 | ||||||
Pro forma incremental interest from recapitalization |
$ | 14.3 | $ | 9.3 | ||||
Year-to-date incremental interest |
$ | 23.6 | ||||||
Common shares and potential common shares used
in diluted income per share calculation |
67.2 | 67.8 | ||||||
Incremental impact of repurchased shares |
(4.5 | ) | (2.7 | ) | ||||
Incremental impact on potential common shares |
— | 0.1 | ||||||
Pro forma diluted shares |
62.7 | 65.2 | ||||||
Year-to-date pro forma diluted shares |
65.0 | |||||||
8
THE SCOTTS MIRACLE-GRO COMPANY
Net
Sales and Operating Income (Loss) for Fiscal 2007, 2006 and 2005 by Fiscal Quarter
Based on Fiscal 2008 Reportable Segments
(in millions)
(Unaudited)
Based on Fiscal 2008 Reportable Segments
(in millions)
(Unaudited)
In
its fiscal 2007 Annual Report on Form 10-K, the Company was divided into the following reportable segments — North America,
International, Scotts LawnService® and Corporate & Other.
For fiscal 2008, the Company is divided into the following reportable segments — Global Consumer, Global Professional,
Scotts LawnService®, and Corporate & Other. This division of reportable segments is consistent with how the segments
report to and are managed by the senior management of the Company.
The Global Consumer segment consists of the North American Consumer and International Consumer business groups.
Business groups comprising this segment manufacture, market and sell dry, granular slow-release lawn
fertilizers, combination lawn fertilizer and control products, grass seed, spreaders, water-soluble, liquid and continuous release garden
and indoor plant foods, plant care products, potting, garden and lawn soils, mulches and other growing media products, and pesticide
products. Products are marketed to mass merchandisers, home improvement centers, large hardware chains, warehouse clubs,
distributors, garden centers, and grocers in the United States,
Canada and Europe.
The Global Professional segment is focused on a full line of horticultural products including controlled-release and water-soluble
fertilizers and plant protection products, grass seed, spreaders, and customer application services. Products are sold to commercial
nurseries and greenhouses, and specialty crop growers. Our consumer businesses in Australia and Latin America are also part of the
Global Professional segment.
The Scotts LawnService® segment provides lawn fertilization, disease and insect control and other related services such as core
aeration and tree and shrub fertilization primarily to residential
consumers through company-owned branches and franchises in the United States.
In our larger branches, an exterior barrier pest control service is
also offered.
The Corporate & Other segment consists of the Smith & Hawken® business and corporate general and administrative expenses.
The following tables present Net sales and Operating income (loss) for fiscal 2007, 2006
and 2005 consistent with the Company’s fiscal 2008 reportable segments. Furthermore, the presentation is consistent with the basis used by
management (i.e. certain costs not allocated to business segments for internal management reporting purposes are not allocated for
purposes of this presentation).
| Q1 | Q2 | Q3 | Q4 | Total Year | ||||||||||||||||
Net sales — Fiscal 2007 |
||||||||||||||||||||
Global Consumer |
$ | 144.5 | $ | 852.4 | $ | 875.4 | $ | 303.8 | $ | 2,176.1 | ||||||||||
Global Professional |
56.4 | 77.1 | 75.0 | 73.5 | 282.0 | |||||||||||||||
Scotts LawnService® |
25.8 | 33.7 | 84.7 | 86.3 | 230.5 | |||||||||||||||
Corporate & Other |
44.7 | 30.3 | 63.5 | 45.5 | 184.0 | |||||||||||||||
Segment total |
271.4 | 993.5 | 1,098.6 | 509.1 | 2,872.6 | |||||||||||||||
Roundup® amortization |
(0.2 | ) | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.8 | ) | ||||||||||
Total Company |
$ | 271.2 | $ | 993.3 | $ | 1,098.4 | $ | 508.9 | $ | 2,871.8 | ||||||||||
Net sales — Fiscal 2006 |
||||||||||||||||||||
Global Consumer |
$ | 141.4 | $ | 784.3 | $ | 857.8 | $ | 306.1 | $ | 2,089.6 | ||||||||||
Global Professional |
42.6 | 66.4 | 57.0 | 67.4 | 233.4 | |||||||||||||||
Scotts LawnService® |
23.6 | 29.8 | 75.3 | 77.0 | 205.7 | |||||||||||||||
Corporate & Other |
42.1 | 27.2 | 58.1 | 41.8 | 169.2 | |||||||||||||||
Segment total |
249.7 | 907.7 | 1,048.2 | 492.3 | 2,697.9 | |||||||||||||||
Roundup® amortization |
(0.2 | ) | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.8 | ) | ||||||||||
Total Company |
$ | 249.5 | $ | 907.5 | $ | 1,048.0 | $ | 492.1 | $ | 2,697.1 | ||||||||||
Net sales — Fiscal 2005 |
||||||||||||||||||||
Global Consumer |
$ | 143.2 | $ | 703.4 | $ | 773.7 | $ | 269.0 | $ | 1,889.3 | ||||||||||
Global Professional |
41.5 | 64.7 | 55.9 | 47.0 | 209.1 | |||||||||||||||
Scotts LawnService® |
20.9 | 21.6 | 59.8 | 57.5 | 159.8 | |||||||||||||||
Corporate & Other |
41.7 | 24.3 | 58.3 | 35.3 | 159.6 | |||||||||||||||
Segment total |
247.3 | 814.0 | 947.7 | 408.8 | 2,417.8 | |||||||||||||||
Roundup® deferred contribution charge |
— | — | (45.7 | ) | — | (45.7 | ) | |||||||||||||
Roundup® amortization |
(0.8 | ) | (0.6 | ) | (0.8 | ) | (0.6 | ) | (2.8 | ) | ||||||||||
Total Company |
$ | 246.5 | $ | 813.4 | $ | 901.2 | $ | 408.2 | $ | 2,369.3 | ||||||||||
9
THE SCOTTS MIRACLE-GRO COMPANY
Net
Sales and Operating Income (Loss) for Fiscal 2007, 2006 and 2005 by Fiscal Quarter (continued)
Based on Fiscal 2008 Reportable Segments
(in millions)
(Unaudited)
Based on Fiscal 2008 Reportable Segments
(in millions)
(Unaudited)
| Q1 | Q2 | Q3 | Q4 | Total Year | ||||||||||||||||
Operating income (loss) — Fiscal 2007 |
||||||||||||||||||||
Global Consumer |
$ | (43.6 | ) | $ | 209.2 | $ | 211.4 | $ | 2.1 | $ | 379.1 | |||||||||
Global Professional |
5.9 | 12.0 | 10.2 | 3.2 | 31.3 | |||||||||||||||
Scotts LawnService® |
(16.4 | ) | (16.7 | ) | 21.5 | 22.9 | 11.3 | |||||||||||||
Corporate & Other |
(26.8 | ) | (34.0 | ) | (11.6 | ) | (18.1 | ) | (90.5 | ) | ||||||||||
Segment total |
(80.9 | ) | 170.5 | 231.5 | 10.1 | 331.2 | ||||||||||||||
Roundup® amortization |
(0.2 | ) | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.8 | ) | ||||||||||
Amortization |
(3.5 | ) | (3.8 | ) | (4.2 | ) | (3.8 | ) | (15.3 | ) | ||||||||||
Impairment of intangibles and goodwill |
— | — | — | (35.3 | ) | (35.3 | ) | |||||||||||||
Restructuring and other charges |
— | — | — | (2.7 | ) | (2.7 | ) | |||||||||||||
Total Company |
$ | (84.6 | ) | $ | 166.5 | $ | 227.1 | $ | (31.9 | ) | $ | 277.1 | ||||||||
Operating income (loss) — Fiscal 2006 |
||||||||||||||||||||
Global Consumer |
$ | (35.6 | ) | $ | 194.4 | $ | 222.3 | $ | 11.3 | $ | 392.4 | |||||||||
Global Professional |
3.2 | 12.6 | 7.4 | 4.1 | 27.3 | |||||||||||||||
Scotts LawnService® |
(11.3 | ) | (13.6 | ) | 19.5 | 21.0 | 15.6 | |||||||||||||
Corporate & Other |
(23.7 | ) | (25.5 | ) | (13.9 | ) | (27.9 | ) | (91.0 | ) | ||||||||||
Segment total |
(67.4 | ) | 167.9 | 235.3 | 8.5 | 344.3 | ||||||||||||||
Roundup® amortization |
(0.2 | ) | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.8 | ) | ||||||||||
Amortization |
(3.3 | ) | (3.6 | ) | (4.7 | ) | (3.5 | ) | (15.1 | ) | ||||||||||
Impairment of intangibles and goodwill |
(1.0 | ) | — | — | (65.4 | ) | (66.4 | ) | ||||||||||||
Restructuring and other charges |
(4.7 | ) | (1.1 | ) | (1.1 | ) | (2.5 | ) | (9.4 | ) | ||||||||||
Total Company |
$ | (76.6 | ) | $ | 163.0 | $ | 229.3 | $ | (63.1 | ) | $ | 252.6 | ||||||||
Operating income (loss) — Fiscal 2005 |
||||||||||||||||||||
Global Consumer |
$ | (37.3 | ) | $ | 187.0 | $ | 196.6 | $ | 17.2 | $ | 363.5 | |||||||||
Global Professional |
3.5 | 12.3 | 8.3 | 2.1 | 26.2 | |||||||||||||||
Scotts LawnService® |
(8.2 | ) | (12.2 | ) | 17.0 | 16.5 | 13.1 | |||||||||||||
Corporate & Other |
(22.9 | ) | (35.5 | ) | (20.4 | ) | (26.9 | ) | (105.7 | ) | ||||||||||
Segment total |
(64.9 | ) | 151.6 | 201.5 | 8.9 | 297.1 | ||||||||||||||
Roundup® deferred contribution charge |
— | — | (45.7 | ) | — | (45.7 | ) | |||||||||||||
Roundup® amortization |
(0.8 | ) | (0.6 | ) | (0.8 | ) | (0.6 | ) | (2.8 | ) | ||||||||||
Amortization |
(2.6 | ) | (2.8 | ) | (2.6 | ) | (6.8 | ) | (14.8 | ) | ||||||||||
Impairment of intangibles and goodwill |
(22.0 | ) | — | — | (1.4 | ) | (23.4 | ) | ||||||||||||
Restructuring and other charges |
(0.2 | ) | (1.0 | ) | (0.1 | ) | (8.2 | ) | (9.5 | ) | ||||||||||
Total Company |
$ | (90.5 | ) | $ | 147.2 | $ | 152.3 | $ | (8.1 | ) | $ | 200.9 | ||||||||
10