Corrected Scotts Company financial results release -- replaces previous news release.MARYSVILLE Marysville is the name of several places. Locations Australia
The Scotts Company Reports Fourth Quarter and Year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. Results The Scotts Company (NYSE NYSE See: New York Stock Exchange :SMG SMG - Screen Management Guidelines. A VMS package of run-time library routines providing windows on DEC VT100 terminals. ) today reported a net loss of $2.5 million, or 65 cents per common share, for fiscal 1996 on sales of $751.9 million. In 1995, Scotts had net income of $22.4 million, or 99 cents per common share, on sales of $732.8 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma 1995 sales, reflecting Scotts' sales as if its merger with Miracle-Gro Miracle-Gro is a plant food brand made by Scotts Miracle-Gro Company. It is commonly used in gardens and houseplants. The main component of this chemical fertilizer is nitrogen derived from ammonium and nitrates. had taken place at the beginning of 1995, were $821.2 million. "The 1996 loss, in line with previous announcements, reflects $17.7 million in unusual charges and a $3.1 million inventory markdown Markdown The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer. Notes: The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra of discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: products taken during 1996. Excluding the charges and markdown, Scotts would have reported net income of $10.5 million, or 4 cents per common share, for the year," commented Scotts Chairman, President, and Chief Executive Officer Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by M. Berger. The unusual charges result from initiatives designed to return the company to profitability, Berger added, and should result in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of more than $13 million. In October, Scotts announced that unusual charges anticipated for 1996 would contribute to an expected net loss of 70 cents to 75 cents per common share. The year's unusual charges were for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs associated with restructurings and write-downs of various under-utilized or idle assets, including several plant closings. The inventory markdowns recorded in the fourth quarter primarily related to products that are being phased out as part of the company's plan to simplify and rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear its product lines. During 1996's fourth quarter, Scotts took $9.2 million of unusual charges. This, combined with the fourth quarter's $3.1 million inventory markdown, contributed to a quarterly net loss of $13.6 million, or 86 cents per common share, on sales of $134.8 million. That compares to net income of $.1 million, with a loss of 12 cents per common share, on sales of $169.7 million in 1995's fourth quarter. Excluding the fourth quarter charges and markdown, Scotts would have reported a net loss of $5.0 million, or 40 cents per common share. In 1996, the company's Consumer Lawn Business had sales of $407.0 million, down 12.2 percent from 1995, primarily as a result of promotional programs that encouraged retailers to stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. inventory prior to the 1996 selling season. The Consumer Garden Business -- principally the Miracle-Gro(R) garden products line -- had sales of $115.3 million. Sales were up from 1995, reflecting the addition of Miracle-Gro to Scotts' Consumer Garden Business, but flat on a pro forma basis. The Professional Business Group had sales of $154.5 million, down 4.3 percent from 1995, primarily because of poor weather and discontinued promotional programs. The International Business Group had sales of $75.1 million, up 8.0 percent from the previous year but below the group's recent double-digit sales increases, due primarily to adverse weather conditions in Europe. "Looking back at 1996, I view the year as a turning point for The Scotts Company. We are restoring promotional spending to appropriate levels; we have taken a number of initiatives to cut costs; and we have generated more than $50 million in operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. after subtracting capital expenditures and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends," Berger explained, adding that, "Because of the improvements we've made in our business, we continue to be confident about our return to profitability during 1997." Scotts noted, however, that its October - December fiscal first quarter falls in the lawn and garden industry's off season and is generally considered a period in which Scotts begins to build inventory for the spring and summer selling seasons. The company historically has reported a net loss in that quarter. The Scotts Company, headquartered in Marysville, Ohio Marysville is a city in Union County, Ohio, United States. It is the county seat of Union County.GR6 The population was 15,942 at the 2000 census, and the Census Bureau estimated 17,621 in 2006. for 126 years, is the world's leading producer and marketer of products for do-it-yourself lawn care and gardening, professional turf turf: see lawn. turf In horticulture, the surface layer of soil with its matted, dense vegetation, usually grasses grown for ornamental or recreational use. care, and horticulture horticulture [Lat. hortus=garden], science and art of gardening and of cultivating fruits, vegetables, flowers, and ornamental plants. Horticulture generally refers to small-scale gardening, and agriculture to the growing of field crops, usually on a large . Scotts products are sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada, the United Kingdom, continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. , the Middle East, Africa, Australia, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , and several Latin American countries List of American countries Nations:
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 contained in the release, due to a variety of factors, including, but not limited to: --the effects of weather conditions on sales of the company's products, especially in the early spring selling season; --the success of the new promotional programs developed for the 1997 selling season and the company's reduced reliance on pre-season selling programs; and --the company's ability to maintain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. profit margins on its products and to produce its products on a timely basis. 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 and annual reports, including the company's most recent quarterly report on Form 10-Q Form 10-Q See 10-Q. for the three months ended June 29, 1996. -0-
The Scotts Company and Subsidiaries
Results of Operations for the Fourth Quarter
and Year Ended Sept. 30, 1996 and 1995
(In thousands, except per share data)
Three Months Ended Year Ended
__________________ __________________
Sept. 30, Sept. 30, % Sept. 30, Sept. 30, %
1995 1996 Change 1995(1) 1996 Change
________ ________ ______ _________ _________ ______
Net sales $169,698 $134,763 -20.6% $732,837 $751,880 2.6%
Cost of sales 96,444 81,404 -15.6% 394,369 414,075 5.0%
Inventory markdown - 3,084 nm - 3,084 nm
_________ _________ ________ ________
Gross profit 73,254 50,275 -31.4% 338,468 334,721 -1.1%
% of sales 43.2% 37.3% 46.2% 44.5%
Marketing 34,642 24,389 -29.6% 130,179 140,919 8.3%
Distribution 23,780 17,242 -27.5% 104,513 95,181 -8.9%
General and
administrative 8,364 9,455 13.0% 28,672 34,266 19.5%
Research and
development 2,727 2,617 -4.0% 10,970 10,605 -3.3%
Amortization of
goodwill - -
and other
intangibles 2,152 2,205 2.5% 5,950 8,812 48.1%
Other (income)
expense 22 328 nm (163) (558) nm
Unusual (income)
charges (2) (4,227) 9,150 nm (4,227) 17,703 nm
_________ _________ ________ ________
Income (loss) from
operations 5,794 (15,111) nm 62,574 27,793 -55.6%
% of sales 3.4% -11.2% 8.5% 3.7%
Interest expense 5,674 4,911 -13.4% 26,320 26,541 0.8%
_________ _________ ________ ________
Income (loss)
before taxes 120 (20,022) nm 36,254 1,252 nm
Income taxes (14) (6,430) nm 13,898 3,782 nm
_________ _________ ________ ________
Net income (loss) 134 (13,592) nm 22,356 (2,530) nm
Preferred stock
dividend 2,438 2,437 nm 3,560 9,750 nm
_________ _________ ________ ________
Income (loss)
applicable to
common
shareholders $ (2,304) $(16,029) nm $ 18,796 $(12,280) nm
_________ _________ ________ ________
_________ _________ ________ ________
Net income
(loss) per
common share $ (0.12) $ (0.86) nm $ 0.99 $ (0.65) nm
_________ _________ ________ ________
_________ _________ ________ ________
Common shares used
in per share
calculation 19,137 18,647 nm 22,617 18,786 nm
_________ _________ ________ ________
_________ _________ ________ ________
(1) Results of operations include Miracle-Gro from May 20, 1995.
(2) The three months and year ended Sept. 30, 1995 include a $4,227
gain from the divestiture of the Peters consumer water soluble
fertilizer product line.
The Scotts Company and Subsidiaries
Consolidated Balance Sheets
(In thousands)
Sept. 30, Sept. 30
1995 1996
____________ ___________
ASSETS
Current assets
Cash $ 7,028 $ 10,598
Accounts receivable, net 176,525 110,426
Inventories, net 143,953 148,836
Other current assets 23,354 22,101
____________ ___________
Total current assets 350,860 291,961
____________ ___________
Property, plant and equipment 148,754 139,488
Trademarks, net 89,250 86,997
Other intangibles, net 24,421 19,455
Goodwill 179,988 180,154
Other assets 15,772 13,630
____________ ___________
Total assets $ 809,045 $ 731,685
____________ ___________
____________ ___________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Revolving credit $ 518 $ 2,197
Accounts payable 63,207 46,288
Other current liabilities 60,137 62,273
____________ ___________
Total current liabilities 123,862 110,758
____________ ___________
Long-term debt 272,025 223,128
Postretirement benefits 27,159 27,157
Other liabilities 5,209 6,341
____________ ___________
Total liabilities 428,255 367,384
Shareholders' equity 380,790 364,301
____________ ___________
Total liabilities and equity $ 809,045 $ 731,685
____________ ___________
____________ ___________
CONTACT: The Scotts Company Kerry Bierman, 937/644-7043 |
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