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These excerpts taken from the SMG 10-K filed Dec 3, 2008. Scotts
LawnService®
Compared to fiscal 2007, Scotts
LawnService®
net sales increased 7.3% to $247.4 million in fiscal 2008.
The increase for fiscal 2008 was the result of acquisition
growth of 3.3%, pricing of 2.8% and organic growth of 1.2%.
Despite macroeconomic pressures that have reduced customer
count, the business has grown partially due to increased
penetration on tree, shrub and insect services, a reduction in
new customer cancel rates and reduced cancels due to issues with
service or results. Additionally, the shifting of late season
lawn treatments to the first quarter of fiscal 2008 positively
impacted net sales. The Scotts
LawnService®
segment operating income is flat compared to fiscal 2007 as the
net sales and gross margin growth were offset by an increase in
SG&A spending.
Compared to fiscal 2006, segment net sales increased 12.1% to
$230.5 million for fiscal 2007. This revenue growth was
primarily attributable to an increase in average customer count.
Approximately 3.6% of the revenue increase came from
acquisitions completed in fiscal 2006 and fiscal 2007. Operating
income decreased from $15.6 million in fiscal 2006 to
$11.3 million in fiscal 2007. The decrease in operating
income was primarily attributable to higher planned SG&A
spending to support higher volume and continued service
improvements. Improved labor productivity helped to offset
higher fertilizer and fuel costs, but revenue growth was not
adequate to cover the higher levels of SG&A spending due to
adverse weather conditions during the important late
winter/early spring period.
Scotts LawnService® Compared to fiscal 2007, Scotts LawnService® net sales increased 7.3% to $247.4 million in fiscal 2008. The increase for fiscal 2008 was the result of acquisition growth of 3.3%, pricing of 2.8% and organic growth of 1.2%. Despite macroeconomic pressures that have reduced customer count, the business has grown partially due to increased penetration on tree, shrub and insect services, a reduction in new customer cancel rates and reduced cancels due to issues with service or results. Additionally, the shifting of late season lawn treatments to the first quarter of fiscal 2008 positively impacted net sales. The Scotts LawnService® segment operating income is flat compared to fiscal 2007 as the net sales and gross margin growth were offset by an increase in SG&A spending. Compared to fiscal 2006, segment net sales increased 12.1% to $230.5 million for fiscal 2007. This revenue growth was primarily attributable to an increase in average customer count. Approximately 3.6% of the revenue increase came from acquisitions completed in fiscal 2006 and fiscal 2007. Operating income decreased from $15.6 million in fiscal 2006 to $11.3 million in fiscal 2007. The decrease in operating income was primarily attributable to higher planned SG&A spending to support higher volume and continued service improvements. Improved labor productivity helped to offset higher fertilizer and fuel costs, but revenue growth was not adequate to cover the higher levels of SG&A spending due to adverse weather conditions during the important late winter/early spring period. These excerpts taken from the SMG 10-K filed Nov 25, 2008. Scotts
LawnService®
Compared to fiscal 2007, Scotts
LawnService®
net sales increased 7.3% to $247.4 million in fiscal 2008.
The increase for fiscal 2008 was the result of acquisition
growth of 3.3%, pricing of 2.8% and organic growth of 1.2%.
Despite macroeconomic pressures that have reduced customer
count, the business has grown partially due to increased
penetration on tree, shrub and insect services, a reduction in
new customer cancel rates and reduced cancels due to issues with
service or results. Additionally, the shifting of late season
lawn treatments to the first quarter of fiscal 2008 positively
impacted net sales. The Scotts
LawnService®
segment operating income is flat compared to fiscal 2007 as the
net sales and gross margin growth were offset by an increase in
SG&A spending.
Compared to fiscal 2006, segment net sales increased 12.1% to
$230.5 million for fiscal 2007. This revenue growth was
primarily attributable to an increase in average customer count.
Approximately 3.6% of the revenue increase came from
acquisitions completed in fiscal 2006 and fiscal 2007. Operating
income decreased from $15.6 million in fiscal 2006 to
$11.3 million in fiscal 2007. The decrease in operating
income was primarily attributable to higher planned SG&A
spending to support higher volume and continued service
improvements. Improved labor productivity helped to offset
higher fertilizer and fuel costs, but revenue growth was not
adequate to cover the higher levels of SG&A spending due to
adverse weather conditions during the important late
winter/early spring period.
Scotts LawnService® Compared to fiscal 2007, Scotts LawnService® net sales increased 7.3% to $247.4 million in fiscal 2008. The increase for fiscal 2008 was the result of acquisition growth of 3.3%, pricing of 2.8% and organic growth of 1.2%. Despite macroeconomic pressures that have reduced customer count, the business has grown partially due to increased penetration on tree, shrub and insect services, a reduction in new customer cancel rates and reduced cancels due to issues with service or results. Additionally, the shifting of late season lawn treatments to the first quarter of fiscal 2008 positively impacted net sales. The Scotts LawnService® segment operating income is flat compared to fiscal 2007 as the net sales and gross margin growth were offset by an increase in SG&A spending. Compared to fiscal 2006, segment net sales increased 12.1% to $230.5 million for fiscal 2007. This revenue growth was primarily attributable to an increase in average customer count. Approximately 3.6% of the revenue increase came from acquisitions completed in fiscal 2006 and fiscal 2007. Operating income decreased from $15.6 million in fiscal 2006 to $11.3 million in fiscal 2007. The decrease in operating income was primarily attributable to higher planned SG&A spending to support higher volume and continued service improvements. Improved labor productivity helped to offset higher fertilizer and fuel costs, but revenue growth was not adequate to cover the higher levels of SG&A spending due to adverse weather conditions during the important late winter/early spring period. This excerpt taken from the SMG 10-K filed Nov 29, 2007. Scotts
LawnService®
Segment net sales increased 12.1% to $230.5 million for
fiscal 2007. This revenue growth was primarily attributable to
an 11.9% increase in average customer count. Approximately 3.6%
of the revenue increase came from acquisitions completed in
fiscal 2006 and fiscal 2007. The increase in sales and customer
count in fiscal 2007 were lower than we expected. We believe the
extended cold weather from mid-February through mid-April had a
significant impact on the realized rate of growth. We further
believe that relative to our core business, our service segment
was more sensitive to the impact of broader economic factors on
consumer spending.
Operating income for this segment decreased to
$11.3 million from $15.6 million for fiscal 2006. The
decrease in operating income was primarily attributable to
higher planned SG&A spending to support higher volume and
continued service improvements. Improved labor productivity
helped to offset higher fertilizer and fuel costs, but revenue
growth was not adequate to cover the higher levels of SG&A
spending due to adverse weather conditions during the important
late winter / early spring period.
For fiscal 2006, segment net sales increased $45.9 million
or 28.7%. This growth in net sales came from increased customer
counts and revenue per customer, strong customer retention,
pricing to cover increased input costs, modest geographic
expansion and the full year impact of acquisitions. Operating
income for the segment increased $2.5 million or 19.1% in
fiscal 2006. This increase was the result of
revenue growth offset by investments in personnel and
infrastructure to support future growth and service levels.
We continue to expand our Scotts
LawnService®
business through internal growth and, to a lesser extent,
acquisitions. We invested $22.5 million of capital in lawn
care acquisitions in fiscal 2007, and $4.4 million in
fiscal 2006. Acquisitions had been a major factor in the growth
of the lawn care business prior to fiscal 2004. While we expect
to continue making selective acquisitions in future years, we
anticipate the majority of the future growth in our lawn care
business will be organic.
This excerpt taken from the SMG 10-K filed Dec 14, 2006. Scotts
LawnService®
In fiscal 2006, we continued the expansion of our Scotts
LawnService®
business primarily through internal growth. We invested
$4.4 million of capital in lawn care acquisitions in fiscal
2006, and $6.4 million in fiscal 2005. Acquisitions had
been a major factor in the growth of the lawn care business
prior to fiscal 2004. While we expect to continue making
selective acquisitions in future years, we anticipate the
majority of the future growth in our lawn care business will be
organic.
Scotts
LawnService®
segment net sales increased $45.9 million or 28.7% in
fiscal 2006. In fiscal 2005, Scotts
LawnService®
net sales increased 18.2% or $24.6 million. The growth in
net sales for both years has been from increased customer counts
and revenue per customer, strong customer retention, pricing to
cover increased input costs, modest geographic expansion and the
full year impact of recent acquisitions.
Table of Contents
Operating income for the Scotts
LawnService®
segment increased $2.5 million or 19.1% in fiscal 2006 and
$3.7 million or 39.4% in fiscal 2005. These increases are
the result of revenue growth offset by investments in personnel
and infrastructure to support future growth and service levels.
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