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These excerpts taken from the SMG 10-K filed Dec 3, 2008. Management’s
Outlook
Entering fiscal 2009, we expected net income and earnings per
share, excluding impairment charges and product registration and
recall costs, to be in line with the results we reported in
fiscal 2008. We anticipated net sales to be flat compared to
2008, as average price increases of eight percent would be
largely offset by unfavorable foreign exchange rate movements
and unit volume declines. We also anticipated that gross margin
rates would be in line with 2008 and that SG&A would likely
grow at a minimal level.
In the early weeks of fiscal 2009, however, key commodity costs
continued to trend more favorably than expected. Subsequently,
several retail partners approached the Company about possibly
providing private label products for them in fiscal 2009 after a
major competitor unexpectedly exited the category. While we are
hopeful that favorable commodity price trends will continue and
that we will ultimately be successful in securing additional
volume from the private label opportunities, we are mindful of
the continually deteriorating outlook for consumer spending.
Given the seasonality of our business (which results in a
concentration of sales in the second and third fiscal quarters),
it is difficult for us to predict what impact the current
economic volatility will have on upcoming consumer lawn and
garden spending. Nevertheless, we believe that we have more
opportunity than not to exceed the financial expectations we had
entering fiscal 2009.
Table of Contents
The Company remains focused on maintaining its free cash flow
and return on invested capital, both of which the Company
believes are important drivers of shareholder value. Our regular
quarterly dividend will allow us to continue to return funds to
shareholders while maintaining our targeted capital structure.
For certain information concerning our risk factors, see
“ITEM 1A. RISK FACTORS.”
Management’s Outlook Entering fiscal 2009, we expected net income and earnings per share, excluding impairment charges and product registration and recall costs, to be in line with the results we reported in fiscal 2008. We anticipated net sales to be flat compared to 2008, as average price increases of eight percent would be largely offset by unfavorable foreign exchange rate movements and unit volume declines. We also anticipated that gross margin rates would be in line with 2008 and that SG&A would likely grow at a minimal level. In the early weeks of fiscal 2009, however, key commodity costs continued to trend more favorably than expected. Subsequently, several retail partners approached the Company about possibly providing private label products for them in fiscal 2009 after a major competitor unexpectedly exited the category. While we are hopeful that favorable commodity price trends will continue and that we will ultimately be successful in securing additional volume from the private label opportunities, we are mindful of the continually deteriorating outlook for consumer spending. Given the seasonality of our business (which results in a concentration of sales in the second and third fiscal quarters), it is difficult for us to predict what impact the current economic volatility will have on upcoming consumer lawn and garden spending. Nevertheless, we believe that we have more opportunity than not to exceed the financial expectations we had entering fiscal 2009. Table of ContentsThe Company remains focused on maintaining its free cash flow and return on invested capital, both of which the Company believes are important drivers of shareholder value. Our regular quarterly dividend will allow us to continue to return funds to shareholders while maintaining our targeted capital structure. For certain information concerning our risk factors, see “ITEM 1A. RISK FACTORS.” These excerpts taken from the SMG 10-K filed Nov 25, 2008. Management’s
Outlook
Entering fiscal 2009, we expected net income and earnings per
share, excluding impairment charges and product registration and
recall costs, to be in line with the results we reported in
fiscal 2008. We anticipated net sales to be flat compared to
2008, as average price increases of eight percent would be
largely offset by unfavorable foreign exchange rate movements
and unit volume declines. We also anticipated that gross margin
rates would be in line with 2008 and that SG&A would likely
grow at a minimal level.
In the early weeks of fiscal 2009, however, key commodity costs
continued to trend more favorably than expected. Subsequently,
several retail partners approached the Company about possibly
providing private label products for them in fiscal 2009 after a
major competitor unexpectedly exited the category. While we are
hopeful that favorable commodity price trends will continue and
that we will ultimately be successful in securing additional
volume from the private label opportunities, we are mindful of
the continually deteriorating outlook for consumer spending.
Given the seasonality of our business (which results in a
concentration of sales in the second and third fiscal quarters),
it is difficult for us to predict what impact the current
economic volatility will have on upcoming consumer lawn and
garden spending. Nevertheless, we believe that we have more
opportunity than not to exceed the financial expectations we had
entering fiscal 2009.
The Company remains focused on maintaining its free cash flow
and return on invested capital, both of which the Company
believes are important drivers of shareholder value. Our regular
quarterly
Table of Contents
dividend will allow us to continue to return funds to
shareholders while maintaining our targeted capital structure.
For certain information concerning our risk factors, see
“ITEM 1A. RISK FACTORS.”
Management’s Outlook Entering fiscal 2009, we expected net income and earnings per share, excluding impairment charges and product registration and recall costs, to be in line with the results we reported in fiscal 2008. We anticipated net sales to be flat compared to 2008, as average price increases of eight percent would be largely offset by unfavorable foreign exchange rate movements and unit volume declines. We also anticipated that gross margin rates would be in line with 2008 and that SG&A would likely grow at a minimal level. In the early weeks of fiscal 2009, however, key commodity costs continued to trend more favorably than expected. Subsequently, several retail partners approached the Company about possibly providing private label products for them in fiscal 2009 after a major competitor unexpectedly exited the category. While we are hopeful that favorable commodity price trends will continue and that we will ultimately be successful in securing additional volume from the private label opportunities, we are mindful of the continually deteriorating outlook for consumer spending. Given the seasonality of our business (which results in a concentration of sales in the second and third fiscal quarters), it is difficult for us to predict what impact the current economic volatility will have on upcoming consumer lawn and garden spending. Nevertheless, we believe that we have more opportunity than not to exceed the financial expectations we had entering fiscal 2009. The Company remains focused on maintaining its free cash flow and return on invested capital, both of which the Company believes are important drivers of shareholder value. Our regular quarterly Table of Contentsdividend will allow us to continue to return funds to shareholders while maintaining our targeted capital structure. For certain information concerning our risk factors, see “ITEM 1A. RISK FACTORS.” This excerpt taken from the SMG 10-K filed Nov 29, 2007. Management’s
Outlook
We were satisfied with our financial performance in fiscal 2007
in light of the challenges caused by weather and macroeconomic
pressures that affected our major retail partners. Despite these
issues, we reported record net sales and improvement in consumer
purchases of our products as measured by point-of-sale data
provided by our major retail partners. In addition, net cash
provided by operating activities less capital investments
amounted to an impressive $192.6 million.
As we look to fiscal 2008, we expect that net income and
earnings per share are likely to be in line with the results we
reported in fiscal 2007. While we anticipate organic sales
growth in our core North America segment, a moderating retail
environment could result in lower growth rates in fiscal 2008
than we have reported in recent years. Additionally, the Company
expects to make certain incremental strategic investments as
well as report higher interest expense throughout fiscal 2008.
Some of the increased spending in fiscal 2008 will be
specifically focused on initiatives outlined in the
“Strategic Initiatives” section of “ITEM 1.
BUSINESS,” all of which are expected to increase operating
profits over the long-term.
From a financial perspective, the Company remains focused on
continuing to improve its Free Cash Flow and Return on Invested
Capital (ROIC), both of which the Company believes are important
drivers of shareholder value. Our regular quarterly dividend
will allow us to continue to return funds to shareholders while
maintaining our targeted capital structure and flexibility to
pursue strategic acquisition opportunities.
For certain information concerning our risk factors, see
“ITEM 1A. RISK FACTORS.”
This excerpt taken from the SMG 10-K filed Dec 14, 2006. Management’s
Outlook
We are very pleased with our performance in fiscal 2006. Despite
upward pressure on commodity raw material costs and a
challenging retail environment in Europe, we delivered record
net sales and earnings. Our sales results were driven by strong
point of sales growth in our North America business and
continued expansion of our Scotts
LawnService®
business, as well as recent acquisitions.
Our strong results in fiscal 2006 have set the stage for another
successful year in fiscal 2007. We are committed to executing
the strategic initiatives outlined in “ITEM 1.
BUSINESS — Strategic Initiatives,” all of which
we believe will increase operating profits, secure future growth
opportunities and strengthen the Company’s franchise for
our consumers, our retail partners and our shareholders.
From a financial perspective, the execution of our strategic
plan will also allow us to continue to improve Return on
Invested Capital (ROIC) and free cash flows. Our regular
quarterly dividends coupled with the special stock repurchase
and dividend planned for the second quarter of fiscal 2007, will
allow us to return funds to shareholders while maintaining our
targeted capital structure and allowing for opportunistic
acquisitions.
For certain information concerning our risk factors, see
“ITEM 1A. RISK FACTORS.”
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