10 Aug 2010

Horticulture & Fresh Produce News Ireland - ScottsMiracle-Gro Announces Record Third Quarter Sales and Profit Along With Share Repurchase Plan and Dividend Increase - www.HortiTrends.com ((tag: horticulture, plants, fresh produce, Ireland, ScottsMira

ScottsMiracle-Gro Announces Record Third Quarter Sales and Profit Along With Share Repurchase Plan and Dividend Increase

MARYSVILLE, Ohio, Aug. 10 /PRNewswire-FirstCall/ --

  • Third quarter reported EPS from continuing operations of $2.59 vs. $2.28 a year earlier
  • Consumer purchases at major U.S. retailers up more than 5 percent year-to-date
  • 2-point gain in market share year-to-date
  • Company re-affirms full year adjusted EPS guidance of $3.25 to $3.35
  • Board authorizes $500 million share repurchase over four years
  • Quarterly dividend increased to $0.25 per share, double the current level

The Scotts Miracle-Gro Company (NYSE: SMG), the world's leading marketer of branded consumer lawn and garden products, announced today that continued consumer interest in gardening activities as well as momentum from its regionalization efforts resulted in record third quarter results.  

In addition, the Company said its Board of Directors has authorized the Company to repurchase up to $500 million of SMG common shares over the next four years. The Board also voted to increase the quarterly dividend paid to shareholders to $0.25 per share, double the current level.

"Our business and cash flow are strong, our balance sheet is healthy and our low debt-to-EBITDA level gives us tremendous flexibility in managing our business," said Jim Hagedorn, chairman and chief executive officer. "We will continue to make wise investments that drive profitable long-term growth while also increasing the amount of cash we return to our shareholders. Our continued success demonstrates the power of our brands with consumers, the strength of our retail partnerships and the resiliency of our category.

"All of these factors are evident in the decision made by our Board to double our dividend and repurchase our shares, both of which demonstrate our confidence in the long-term outlook for our business."

THIRD QUARTER RESULTS

Company-wide sales from continuing operations for the quarter ended July 3, 2010 were $1.24 billion, an increase of 1 percent from the same period a year ago. It is important to note that the timing of the Company's fiscal calendar resulted in a five-day shift forward of the third quarter as compared with fiscal 2009. When adjusted to reflect comparable reporting periods, company-wide sales in the third quarter were up 5 percent.

Adjusted income from continuing operations, which excludes the impact of product registration and recall costs, was $176.9 million, or $2.61 per share, compared with $155.0 million, or $2.34 per share, for the same period last year.  Reported income from continuing operations was $175.9 million, or $2.59 per share, compared with $150.7 million, or $2.28 per share, for the same period last year.

Global Consumer sales increased to $1.09 billion, up slightly from a year ago with foreign exchange having essentially no impact on sales. Adjusted for the calendar shift, Global Consumer sales increased 5 percent. Point-of-sale data from the Company's major retail partners in the U.S. showed that consumer purchases increased 5 percent in the quarter.

Adjusted operating income for the Global Consumer segment improved 10 percent in the quarter to $292.7 million from $265.2 million for the same period last year.

Scotts LawnService reported a 3 percent increase in sales to $81.3 million from $79.0 million. Adjusted operating income increased 6 percent to $22.8 million, compared with $21.6 million a year ago.

Global Professional sales increased by 3 percent in the quarter to $71.9 million from $69.5 million last year. Excluding the impact of foreign currency, sales increased 7 percent. Operating income for the segment increased to $6.9 million from $5.2 million for the same period last year.

Adjusted gross margin rate increased to 40.7 percent in the quarter, compared with 38.9 percent a year earlier. Selling, general and administrative expenses (SG&A) decreased 4 percent in the quarter to $214.4 million from $223.0 million a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 15 percent to $304.4 million from $263.7 million a year ago.

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