Scotts Company (SMG)

 

The Company reported a net loss of $10.9 million or $0.17 per diluted share in fiscal 2008 compared to net income of $113.4 million or $1.69 per diluted share in fiscal 2007. The Company recorded $136.8 million in impairment charges, as well as $51.1 million in costs related to product registration and recall matters, in fiscal 2008. Challenging weather conditions in March 2008 negatively impacted net sales for the largest part of our business, the Global Consumer segment. Additionally, commodity costs increased significantly in fiscal 2008. Diluted weighted-average common shares outstanding decreased from 67.0 million in fiscal 2007 to 64.5 million in fiscal 2008, due to the 4.5 million common shares repurchased as part of the recapitalization consummated during the second quarter of fiscal 2007, weighted for the period outstanding, and offset by common shares issued upon the exercise of share-based awards and the vesting of restricted stock. Furthermore, 0.9 million potential common shares were excluded from the diluted loss per share calculation for fiscal 2008 because their effect is anti-dilutive. The number of potential common shares declined in fiscal 2008 as a result of a lower average market price for our common shares.

 

While income from operations increased $24.6 million in fiscal 2007 over fiscal 2006, net income decreased from $132.7 million or $1.91 per diluted share in fiscal 2006 to $113.4 million or $1.69 per diluted share in fiscal 2007. Adverse weather conditions negatively impacted net sales in the Global Consumer segment, particularly during the important month of April. Costs related to the refinancing, increased levels of debt and a higher weighted average interest rate resulting from the recapitalization transactions coupled with a higher effective tax rate also contributed to the decline. Diluted weighted-average common shares outstanding decreased from 69.4 million in fiscal 2006 to 67.0 million in fiscal 2007 due to the repurchase of 4.5 million of our common shares, weighted for the period outstanding, as part of the recapitalization transactions consummated in the second quarter of fiscal 2007.

 

 

The Company reported a net loss of $10.9 million or $0.17
per diluted share in fiscal 2008 compared to net income of
$113.4 million or $1.69 per diluted share in fiscal 2007.
The Company recorded $136.8 million in impairment charges,
as well as $51.1 million in costs related to product
registration and recall matters, in fiscal 2008. Challenging
weather conditions in March 2008 negatively impacted net sales
for the largest part of our business, the Global Consumer
segment. Additionally, commodity costs increased significantly
in fiscal 2008. Diluted weighted-average common shares
outstanding decreased from 67.0 million in fiscal 2007 to
64.5 million in fiscal 2008, due to the 4.5 million
common shares repurchased as part of the recapitalization
consummated during the second quarter of fiscal 2007, weighted
for the period outstanding, and offset by common shares issued
upon the exercise of share-based awards and the vesting of
restricted stock. Furthermore, 0.9 million potential common
shares were excluded from the diluted loss per share calculation
for fiscal 2008 because their effect is anti-dilutive. The
number of potential common shares declined in fiscal 2008 as a
result of a lower average market price for our common shares.

 

While income from operations increased $24.6 million in
fiscal 2007 over fiscal 2006, net income decreased from
$132.7 million or $1.91 per diluted share in fiscal 2006 to
$113.4 million or $1.69 per diluted share in fiscal 2007.
Adverse weather conditions negatively impacted net sales in the
Global Consumer segment, particularly during the important month
of April. Costs related to the refinancing, increased levels of
debt and a higher weighted average interest rate resulting from
the recapitalization transactions coupled with a higher
effective tax rate also contributed to the decline. Diluted
weighted-average common shares outstanding decreased from
69.4 million in fiscal 2006 to 67.0 million in fiscal
2007 due to the repurchase of 4.5 million of our common
shares, weighted for the period outstanding, as part of the
recapitalization transactions consummated in the second quarter
of fiscal 2007.

 

 

The Company reported a net loss of $10.9 million or $0.17 per diluted share in fiscal 2008 compared to net income of $113.4 million or $1.69 per diluted share in fiscal 2007. The Company recorded $136.8 million in impairment charges, as well as $51.1 million in costs related to product registration and recall matters, in fiscal 2008. Challenging weather conditions in March 2008 negatively impacted net sales for the largest part of our business, the Global Consumer segment. Additionally, commodity costs increased significantly in fiscal 2008. Diluted weighted-average common shares outstanding decreased from 67.0 million in fiscal 2007 to 64.5 million in fiscal 2008, due to the

 

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