Scotts Reports Record Fiscal Year

MARYSVILLE, Ohio – The Scotts Company has announced record sales and net income for fiscal 2003. Sales in the fourth quarter also set a record for the period, and the green industry company recorded its first profitable fourth quarter since 1994 on an adjusted basis.

“Our success in 2003 went beyond our financial statements,” noted Jim Hagedorn, chairman and chief executive officer. “We were named ‘supplier of the year’ at four major accounts across the United States and Europe. We also made significant strides to expand our brands in new categories like pottery and improve our overall presence with the independent nursery and hardware trade. Entering the year, we said we didn't believe there was a better business to be in than ours and I think we demonstrated why we believe this is true.”

Scotts also announced that it expects to improve adjusted net income in fiscal 2004 by at least another 10 percent.

For fiscal 2003, ending Sept. 30, Scotts reported net sales of $1.91 billion, up 9 percent from $1.75 billion a year earlier. Excluding the impact of foreign exchange rates, sales for the year increased by 6 percent over the prior year. Adjusted net income for the year increased to $114.7 million, or $3.57 per diluted share, up 10 percent from $104.3 million, or $3.29 per diluted share, for the same period last year.

Scotts LawnService, the company's fastest growing business, had revenues of $110 million, a 46 percent increase from 2002.

“The return to profitability in the fourth quarter is a major milestone and stems from an ongoing shift in the timing of shipments as well as the continued growth in Scotts LawnService and overall expense control,” Hagedorn asserted. “While the profit this quarter was small, it was a major improvement from last year and it gives us great confidence in our ability to report three profitable quarters each year going forward.”

And net Roundup commission for the year was $17.6 million, compared with $16.2 million a year earlier. The net commission includes a $5 million increase in the contribution payment to Monsanto in accordance with the Roundup marketing agreement.