Scotts Miracle-Gro Announces Record Sales for Fiscal 2009

The Scotts Miracle-Gro Company today announced that company-wide sales in fiscal 2009 increased 5 percent to a record $3.14 billion, driven by continued strength in the core U.S. consumer business.

Adjusted net income for fiscal 2009 - which excludes the impact of product registration and recall costs, as well as charges associated with the Smith & Hawken closure process - was $162.6 million, or $2.46 per share, better than the Company's previous guidance. Using generally accepted accounting principles (GAAP), the Company posted net income for the year of $153.3 million, or $2.32 per share, compared with a net loss of $10.9 million, or $0.17 per share, in fiscal 2008.

The full-year results included company-wide sales growth of 7 percent in the fourth quarter, driven by 14 percent growth in the U.S. consumer business. The adjusted seasonal net loss for the quarter was $21.5 million, or $0.33 per share, compared with a net loss of $17.5 million, or $0.27 per share, for the same period last year.

"We started the lawn and garden season with momentum and never lost it, allowing us to deliver strong results for fiscal 2009," said Jim Hagedorn, chairman and chief executive officer. "We're obviously pleased with our results, which validate the resilience of the lawn and garden category and the strength of our brands with our consumers and our retail partners. Consumer purchases of our products at our largest U.S. retailers grew 15 percent for the year, with double-digit improvements in 46 states."

The Company said its initial guidance for fiscal 2010 assumes sales growth of 3 to 5 percent and net income in a range of $3.00 to $3.10 per share. The forecast excludes the impact of product recall and registration issues and includes an expected benefit of $0.15 per share due to the elimination of losses from Smith & Hawken, which will be reported as a discontinued operation beginning in the first fiscal quarter.