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SCOTTS NINE-MONTH EPS UP 14 PERCENT ON 12 PERCENT SALES INCREASE; SALES RECOVERY PUSHES THIRD QUARTER SALES UP 20 PERCENT

 MARYSVILLE, Ohio, Aug. 3 /PRNewswire/ -- The Scotts Company (NASDAQ: SCTT) announced today that for the nine-month fiscal period ended July 3, 1993, sales increased approximately 12 percent to $385.2 million compared to $342.6 million for the nine months ended June 27, 1992. For the quarter ended July 3, 1993, sales were $156.3 million, up 20 percent from the comparable prior year period. Without Republic Tool & Manufacturing Corp., which was acquired in November 1992, sales increased by 16 percent for the quarter and 8 percent for the nine months.
 Recovery of sales lost during March due to unusually severe weather accounted for the strong sales increase for the quarter. "We have regained our sales growth, which had been slowed by severe weather in March and we feel that our sales target of a 12-15 percent increase for the fiscal year is a realistic expectation," said Tadd C. Seitz, Scotts chairman and chief executive officer.
 Detailing the results, Mr. Seitz said: "Sales of the Consumer Business Group were up approximately 15 percent to $326.5 million for the first nine months and approximately 21 percent to $135.8 million for the third quarter of fiscal 1993, including Republic. Sales of the Professional Business Group were up approximately 10 percent for the quarter reflecting a significant increase in momentum from the sluggish first half. Professional sales for the nine months were down approximately 1 percent."
 Operating income increased by 4 percent for the nine months and by 16 percent for the quarter. The larger percentage increase for the quarter reflects both recovery of sales and the absence of start-up costs for new technology which depressed operating income earlier in the year.
 Net earnings per share were $.97 for the nine months and $.44 for the quarter, up 14 percent and 193 percent respectively after extraordinary items affecting net earnings last year. Lower interest expense from substantially reduced borrowing levels contributed to the increases in net earnings per share.
 "We've been asked by investors whether the flooding in the Midwest will affect our business," Mr. Seitz said, "and we do not expect it to have a material impact on our results. One of Scotts' primary strengths is its diversified sales base which covers 24,000 retail outlets nationwide. As a result, we are not overly dependent on any one region."
 With over $400 million in sales in fiscal 1992, Scotts is the country's leading producer and marketer of consumer do-it-yourself lawn care and professional golf course turf care products. The company's Turf Builder products are the nation's most popular lawn care fertilizers and fertilizer/control combinations. The company's Hyponex products are the nation's leading line of organic products, including top soil, potting soils, composted manures, and bark mulches. Through Republic, Scotts offers a full line of lawn spreaders and other lawn and garden equipment under the "EZ" label and under retailers' private brands.
 THE SCOTTS COMPANY
 Summary Income Statement
 Unaudited results of operations for


the three months and nine months ended July 3, 1993 and June 27, 1992
 (Dollars in thousands except per share amounts)
 Periods ended Three Months Nine Months
 July 3 June 27 July 3 June 27
 1993 1992 1993 1992
 Net Sales $156,327 $130,219 $385,186 $342,637
 Cost of Sales 81,513 66,948 201,048 176,487
 Gross Profit 74,814 63,271 184,138 166,150
 Percent of
 net sales 47.9 48.6 47.8 48.5
 Selling, General & Admin. Expense
 Marketing expense 24,882 19,874 62,228 55,131
 Distribution
 expense 24,411 21,574 55,491 49,529
 General &
 Administrative 6,963 5,846 20,160 17,775
 Research &
 Development 1,691 1,461 5,295 4,383
 Total SG&A 57,947 48,755 143,174 126,818
 Percent of
 Net Sales 37.1 37.4 37.2 37.0
 Operating income 16,867 14,516 40,964 39,332
 Interest Expense and
 Related Charges 2,585 2,515 7,498 15,267
 Income before Income Taxes
 and Extraordinary
 Items 14,282 12,001 33,466 24,065
 Percent of
 Net Sales 9.1 9.2 8.7 7.0
 Income Taxes 5,971 4,724 13,992 10,199
 Income before
 Extraordinary
 Items 8,311 7,277 19,474 13,866
 Loss on Extinguishment of
 debt, net of tax -- (4,186) -- (4,186)
 Utilization of
 Loss Carry Forwards -- -- -- 4,699
 Net Income $8,311 $3,091 $19,474 $14,379
 Income Per Common Share:
 Income Before
 Extraordinary Items 0.44 0.34 0.97 0.82
 Loss on Extinguishment
 of debt, net of tax -- (0.19) -- (0.25)
 Utilization of Loss
 Carry Forwards -- -- -- 0.28
 Net Income 0.44 0.15 0.97 0.85
 Average Common Shares
 Outstanding 18,743,752 21,117,117 20,029,917 16,871,391
 NOTES: (a) Results of operations for the three months ended July 3, 1993 include results of operations for Republic Tool & Manufacturing Corporation ("Republic") for the full three months.
 (b) Results of operations for the nine months ended July 3, 1993 include Republic's results of operations from its acquisition by Scotts on November 11, 1992.
 (c) Certain amounts included in the three months and nine months ended June 27, 1992, have been reclassified to conform with current year presentations. These changes did not impact net income.
 -0- 8/3/93
 /CONTACT: Thomas C. Franco or Jill L. Austin, both of Broadgate Consultants, Inc., 212-229-2222, for The Scotts Company/
 (SCTT)


CO: The Scotts Company ST: Ohio IN: SU: ERN

TM -- NY005 -- 8728 08/03/93 08:44 EDT
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Date:Aug 3, 1993
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