SCOTTS REPORTS INCREASED FIRST HALF SALES AND EARNINGS
MARYSVILLE, Ohio, April 29 /PRNewswire/ -- The Scotts Company (NASDAQ: SCTT) announced today that sales increased 4.4 percent and net income rose 65.5 percent for the six months ended March 28, 1992.
For the six months, sales were $211,904,000, up from $202,939,000 for the comparable prior period. While sales were adversely affected by inclement March weather, the percentage increase was in line with overall growth of U.S. retail sales.
Net income per share was 76 cents, up 18 cents from last year. The increase was due in part to reduced borrowing costs and lower interest rates. Scotts completed an initial public offering earlier in the year that raised approximately $160 million of net proceeds for the company which was used to reduce outstanding debt.
Operating income for the six month period was $24,919,000, down 2.1 percent compared to a year ago, reflecting additional advertising investment, as well as accrued expenses for an expanded consumer rebate program on Scotts and Hyponex products.
Tadd C. Seitz, chairman and chief executive officer said, "We are pleased with our first half performance and expect to pick us sales momentum as spring comes to the central and eastern states. As we enter our key buying period which extends through June, we continue to work with all of our retailers and commercial users to generate orders for the balance of the year."
Seitz added, "As a result of the redemption of all Scotts' subordinated debt, which occurred earlier this month, as well as the successful renegotiation of the company's long-term credit agreement on more favorable terms, we are well positioned to pursue our long-term growth strategies."
The company's capital program to introduce new controlled release fertilizers and improve production capacity which commenced earlier this year, is proceeding on schedule. The $16.5 million spending program is primarily aimed at achieving significant new products, increased capacity, lower costs and reduced plant emissions. The program, which is expected to be completed in time for fiscal 1993 production, involves the replacement of some of the existing fertilizer production with a new patented process.
With sales of $388 million in fiscal year 1991, 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
(All numbers in thousands except per share data)
Three Months Ended Six Months Ended
3/28/92 3/30/91 3/28/92 3/30/91
Net sales $150,521 $145,747 $211,904 $202,939
Costs of sales 76,816 73,882 109,352 106,072
gen., & adm. exps. 50,607 45,448 77,633 71,416
Operating income 23,098 26,417 24,919 25,451
Int. exp. & related
charges 6,050 9,838 12,855 18,629
Inc. bef. taxes &
extraord. credit 17,048 16,579 12,064 6,822
Income taxes 7,782 11,711 5,475 4,819
Inc. bef. extraord.
credit 9,266 4,868 6,589 2,003
Extraord. credit -
utiliz. of loss
carryforward 4,699 4,819 4,699 4,819
Net income 13,965 9,687 11,288 6,822
Avg. com. shares
outstanding 17,690,462 11,845,134(A) 14,786,751 11,857,387(A)
Net inc. per com.
share $.79 $.82(B) $.76 $.58(B)
(A) -- Adjusted to reflect the combination of every 2.2 shares into one share on Jan. 27, 1992.
(B) -- Pro-forma -- restated to be comparable with current year, affect of accretion to redemption value of redeemable common stock has been eliminated.
/CONTACT: Thomas C. Franco or Allison Sargent of Broadgate Consultants, 212-229-2222, for the Scotts Company/
(SCTT) CO: The Scott Company ST: Ohio IN: SU: ERN
TS-PS -- NY001 -- 4227 04/29/92 09:45 EDT