The Scotts Company, known within the consumer lawn and garden industry for its products and services, recently announced adjusted earnings per share of $2.85 in the third quarter, in line with its previous estimates. On a reported basis, earnings per share for the quarter were $2.81. The company also reaffirmed its outlook for double-digit adjusted net income growth for fiscal 2003.
"Our third quarter and year-to-date results demonstrate the continued strength of our business," noted Jim Hagedorn, chairman and chief executive officer. "While this gardening season was clearly impacted by cool, wet weather, we remained focused and overcame serious challenges in our busiest time of the year. Our confidence in producing earnings growth of at least 10 percent for 2003 speaks to the fundamental strength of this business, especially in a year in which we also are making significant long-term investments in the business and expensing stock options for the first time."
For the period ended June 28, Scotts reported sales of $710 million, up 3 percent from $689 million last year. Excluding the impact of foreign exchange rates, sales were flat to the prior year. Adjusted earnings in the quarter were $92.3 million, or $2.85 per diluted share, compared with $95.6 million, or $3.01 per diluted share, for the same period last year. Current period adjusted earnings exclude restructuring and other non-recurring charges of $1.1 million, net of tax. Including these restructuring and non-recurring items, net income in the quarter was $91.2 million, or $2.81 per diluted share.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $175.8 million, compared with $185.4 million for the same period last year.