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SCOTTS REPORTS HIGHER NINE-MONTH SALES AND EARNINGS

 SCOTTS REPORTS HIGHER NINE-MONTH SALES AND EARNINGS
 MARYSVILLE, Ohio, Aug. 11 /PRNewswire/ -- The Scotts Company


(NASDAQ: SCTT) announced today that net income increased by 20.4 percent to $14.379 million for the nine-month fiscal period ended June 27, 1992, compared to $11.941 million in the nine-month period in 1991.
 Earnings per share before extraordinary items were 78 cents, up 90.2 percent compared with 41 cents in 1991, and net earnings per share were 85 cents, after an extraordinary charge for extinguishment of debt, compared with $1.01 in 1991. The average number of shares outstanding was 16.871 million, compared with 11.846 million in 1991. There were 21.073 million shares outstanding at the end of June 1992.
 Sales for the 1992 nine months were $341.866 million, up 4.8 percent over sales of $326.353 million for the 1991 period. The Consumer Business Group had sales of $284.192 million, an increase of 4.8 percent from the comparable nine-month period last year, while sales in the Professional Business Group were $57.674 million, up approximately 4.7 percent.
 Gross profit rose to $165.515 million from $155.488 million in the year earlier nine-month period. Operating income -- before interest, income taxes, and extraordinary items -- was $39.528 million, just slightly higher than last year primarily due to the increased cost of an expanded rebate program and increased advertising time to coincide with the rebate program.
 Interest expense and related charges declined substantially, to $15.463 million for the nine months in 1992, from $26.821 million for the nine months in 1991. Interest expense decreased primarily as a result of using the net proceeds of an initial public offering completed earlier this year to reduce outstanding debt and renegotiating more favorable terms for the remaining debt combined with the reduction of the prime interest rate compared with last year.
 Extraordinary items in the 1992 period, which included a charge for early extinguishment of debt and a credit for utilization of a tax loss carryforward, increased net income $1.235 million compared to an increase of $7.156 million in 1991 for tax loss carryforwards utilized.
 Tadd C. Seitz, chairman and chief executive officer, said, "These sales and earnings increases were achieved in the face of adverse weather conditions and the sluggish economy in several regions. We are pleased that our geographical diversity, strong advertising and promotional support for our product lines, as well as the continuing deleveraging of our balance sheet enabled us to achieve these results."
 Seitz added, "Sales to our top five accounts increased 10.3 percent for the nine months. New products and other growth initiatives also helped increase our 1992 sales. We are confident that our programs to expand sales with the high growth retailers and to introduce new products and services will continue to present Scotts with attractive growth opportunities."
 The company also said it is presently negotiating the acquisition of Republic Tool & Manufacturing Corp., a $14 million in sales manufacturer of lawn and garden equipment based in Carlsbad, Calif.
 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 soils, potting soils, composted manures and bark mulches.
 THE SCOTTS COMPANY
 Summary Income Statement
 (Dollars in thousands, except per share data)
 Three Months Ended Nine Months Ended
 6/27/92 6/29/91 6/27/92 6/29/91
 Net sales $129,962 $123,414 $341,866 $326,353
 Cost of sales 66,999 64,792 176,351 170,865
 Selling, R&D, general
 and admin. expenses 48,354 44,845 125,987 116,261
 Operating income 14,609 13,777 39,528 39,227
 Interest expense and
 related charges 2,608 8,193 15,463 26,821
 Income before taxes and
 extraordinary items 12,001 5,584 24,065 12,406
 Income taxes 5,446 3,430 10,921 7,621
 Income before extraordinary
 items 6,555 2,154 13,144 4,785
 Extinguishment of debt,
 net of tax 3,464 -- 3,464 --
 Utilization of loss
 carryforwards -- 3,110 4,699 7,156
 Net income (loss) 3,091 5,264 14,379 11,941
 Earnings per common share
 Inc. bef. extraord. items $.31 $.18 $.78 $.41
 Extinguishment of debt,
 net of taxes (.16) -- (.21) --
 Utilization of loss
 carryforwards -- .27 .28 .60
 Net inc. per com. shr. $.15 $.45(A) $.85 $1.01(A)
 Avg. com. shrs. outstdg. 21,117,117 11,824,989 16,871,391 11,846,461
 (A) Pro Forma -- restated to be comparable with the current year, effect of accretion to redemption value of redeemable common stock has been eliminated.
 -0- 8/11/92
 /CONTACT: Thomas C. Franco or Allison Sargent of Broadgate Consultants, Inc., 212-229-2222, for the Scotts Company/
 (SCTT) CO: Scotts Company ST: Ohio IN: HOU SU: ERN


TS -- NY004 -- 8798 08/11/92 08:02 EDT
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Date:Aug 11, 1992
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