ScottsMiracle-Gro Updates Outlook for Fiscal 2020; Net Sales, Non-GAAP Adjusted Earnings Expected to Exceed Prior Guidance
The Scotts Miracle-Gro Company (NYSE: SMG) announced on Sept. 14, 2020, that it expects fiscal 2020 sales and non-GAAP adjusted earnings per share (EPS) to exceed previous guidance. The company predicts non-GAAP adjusted EPS will be approximately $7.25, driven by over 30% sales growth, attributed to strong consumer demand and retailer support. Additionally, lower expenses are anticipated to provide approximately $1 per share in tailwinds. A detailed fiscal 2021 guidance is set for release in November.
- Non-GAAP adjusted EPS expected to be approximately $7.25 for fiscal 2020.
- Sales growth anticipated to exceed 30% year-over-year.
- Strong consumer demand and engaged retailer support driving business momentum.
- Lower expenses projected to provide tailwinds of roughly $1 per share.
- Potential risks from the ongoing COVID-19 pandemic affecting business operations.
- Dependence on a small number of retail customers could impact financial performance.
- Regulatory changes may increase operational costs or limit product marketing.
- Reputation risks that could adversely affect business.
MARYSVILLE, Ohio, Sept. 14, 2020 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the world’s leading marketer of branded consumer lawn and garden as well as indoor and hydroponic growing products, announced today it expects fiscal 2020 sales and non-GAAP adjusted earnings per share to exceed the revised guidance the Company provided in late July.
“The momentum of our business continues to exceed our expectations in both the U.S. Consumer and Hawthorne segments,” said Randy Coleman, executive vice president and chief financial officer. “For fiscal 2020, which ends September 30, we now expect non-GAAP adjusted earnings will be approximately
“The drivers of our business over the past six months – strong consumer demand and highly engaged retailer support – are expected to carry into the first quarter of fiscal 2021 and give us a solid start to the year. We continue to expect lower expenses next year will provide tailwinds of roughly a dollar per share. We will provide more details when we provide fiscal 2021 guidance in November.”
ScottsMiracle-Gro management is participating tomorrow, September 15, in the Raymond James North American Equities Conference. Interested parties can listen to a live webcast on the Company’s investor relations website at http://investor.scotts.com.
About ScottsMiracle-Gro
With approximately
Forward Looking Non-GAAP Measures
In this release, the Company presents its updated outlook for fiscal 2020 non-GAAP adjusted EPS. The Company does not provide a GAAP EPS outlook, which is the most directly comparable GAAP measure to non-GAAP adjusted EPS, because changes in the items that the Company excludes from GAAP EPS to calculate non-GAAP adjusted EPS, described above, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company’s routine operating activities. Additionally, due to their unpredictability, management does not forecast the excluded items for internal use and therefore cannot create or rely on a GAAP EPS outlook without unreasonable efforts. The timing and amount of any of the excluded items could significantly impact the Company’s GAAP EPS. As a result, the Company does not provide a reconciliation of guidance for non-GAAP adjusted EPS to GAAP EPS, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release, other than statements of historical fact, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, 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 statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance,” “outlook,” “projected,” “believe,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:
- The ongoing COVID-19 pandemic could have a material adverse effect on the Company’s business, results of operation, financial condition and/or cash flows;
- Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit the Company’s ability to market all of its products;
- Damage to the Company’s reputation or the reputation of its products or products it markets on behalf of third parties could have an adverse effect on its business;
- The highly competitive nature of the Company’s markets could adversely affect its ability to maintain or grow revenues;
- If the Company is unable to effectively execute its e-commerce business, its reputation and operating results may be harmed;
- Because of the concentration of the Company’s sales to a small number of retail customers, the loss of one or more of, or significant reduction in orders from, its top customers could adversely affect the Company’s financial results;
- Climate change and unfavorable weather conditions could adversely impact financial results;
- Certain of the Company’s products may be purchased for use in new or emerging industries or segments and/or be subject to varying, inconsistent, and rapidly changing laws, regulations, administrative practices, enforcement approaches, judicial interpretations and consumer perceptions;
- The Company’s operations may be impaired if its information technology systems fail to perform adequately or if it is the subject of a data breach or cyber-attack;
- The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Company’s business;
- In the event the Third Restated Marketing Agreement for consumer Roundup products terminates, or Monsanto’s consumer Roundup business materially declines the Company would lose a substantial source of future earnings and overhead expense absorption;
- Hagedorn Partnership, L.P. beneficially owns approximately
26% of the Company’s common shares and can significantly influence decisions that require the approval of shareholders; - Acquisitions, other strategic alliances and investments could result in operating difficulties, dilution and other harmful consequences that may adversely impact the Company’s business and results of operations.
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, annual and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.
Contact:
Jim King
Executive Vice President
Investor Relations & Corporate Affairs
(937) 578-5622
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