MARYSVILLE, Ohio – The Scotts Company has reported an adjusted net loss for the first quarter, excluding restructuring and other charges, of $43.1 million – flat with an adjusted loss of $42.9 million for the same quarter last year.
The adjusted per-share loss in the quarter decreased to $1.34 from $1.42 in fiscal 2003 due to an increase in shares outstanding. These results exclude a one-time pre-tax expense of $43.7 million associated with the company’s recently completed debt refinancing and $1.0 million of restructuring and other charges. Scotts anticipates it will benefit from significant interest savings as a result of the refinancing. Including these items, the Company reported a quarterly net loss of $70.7 million, or $2.21 per share, compared with a net loss of $46.8 million, or $1.55 per share, for the same period in 2003. These results are better than expected due to favorable SG&A performance.
Because of the seasonal nature of the lawn and garden business, Scotts historically reports a loss in the first quarter each year.
Net sales in the quarter were $186.2 million, up 3 percent from $180.8 million a year earlier. Excluding the impact of foreign exchange rates, net sales declined by 2 percent. Consumer purchases of the company’s branded products at its largest U.S. retailers increased 10 percent during the period driven by strong demand for fall products. Scotts LawnService had a strong finish to its season with revenues up 21 percent for the quarter.
“We are pleased that our results today are better than we had anticipated. The growth in consumer purchases we saw in 2003 has clearly carried into 2004, giving us increased confidence that we will report adjusted net income growth of at least 10 percent again this year,” said Jim Hagedorn, chairman and chief executive officer.