Scotts Miracle-Gro Co. Files 10-Q for Period Ending December 30, 2023

TL;DR

<b>Scotts Miracle-Gro Co. filed its Q1 2024 10-Q report on February 7, 2024.</b>

AI Summary

SCOTTS MIRACLE-GRO CO (SMG) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. Scotts Miracle-Gro Co. filed a 10-Q report for the period ending December 30, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on September 30th. Scotts Miracle-Gro Co. is incorporated in Ohio. The company's business address is 14111 Scottslawn Road, Marysville, OH 43041.

Why It Matters

For investors and stakeholders tracking SCOTTS MIRACLE-GRO CO, this filing contains several important signals. This filing provides an update on the company's financial performance and operational status for the first quarter of its fiscal year. Investors and analysts can use this report to assess the company's current financial health, identify trends, and make informed investment decisions.

Risk Assessment

Risk Level: medium — SCOTTS MIRACLE-GRO CO shows moderate risk based on this filing. The company's financial performance is subject to seasonal fluctuations and consumer spending on gardening products, which can impact revenue and profitability.

Analyst Insight

Monitor the company's upcoming earnings reports and investor calls for insights into sales performance and strategic initiatives.

Key Numbers

• 20231230 — Period End Date (Conformed period of report)
• 20240207 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Fiscal year end)
• 0000825542 — Central Index Key (Central Index Key)

Key Players & Entities

• SCOTTS MIRACLE-GRO CO (company) — Filer name
• 20231230 (date) — Conformed period of report
• 20240207 (date) — Filed as of date
• 0000825542 (company) — Central Index Key
• OH (location) — State of incorporation
• 14111 SCOTTSLAWN ROAD (address) — Business address street 1
• MARYSVILLE (location) — Business address city
• 43041 (postal_code) — Business address zip

Forward-Looking Statements

• Scotts Miracle-Gro's profitability will continue to improve in the near term due to reduced restructuring costs and a more focused business post-Bonnie Plants sale. (Scotts Miracle-Gro Co.) — medium confidence, target: 2024-09-30
• The cash proceeds from the Bonnie Plants sale will be used to reduce debt or fund other strategic initiatives. (Scotts Miracle-Gro Co.) — medium confidence, target: 2024-09-30

FAQ

Industry Context

Scotts Miracle-Gro operates in the consumer discretionary sector, specifically within the gardening and lawn care industry. This industry is influenced by seasonal demand and consumer spending on home improvement and outdoor activities.

Regulatory Implications

The company is subject to various regulations related to product safety, environmental impact, and agricultural practices, which are standard for companies in the chemical and agricultural sectors.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze segment performance and any disclosed risks or uncertainties.
3. Compare Q1 2024 results with prior periods and industry benchmarks.

Key Dates

• 2023-12-30: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-02-07: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing for the period ending December 30, 2023. Comparison to the prior year's comparable period will be available in subsequent filings or within the detailed financial statements.

Key Financial Figures

• $0.01 — nge on which registered Common Shares, $0.01 stated value SMG NYSE Indicate by che

Filing Documents

• smg-20231230.htm (10-Q) — 1471KB
• exhibit108smg20231230.htm (EX-10.8) — 41KB
• exhibit109smg20231230.htm (EX-10.9) — 39KB
• exhibit1010smg20231230.htm (EX-10.10) — 55KB
• exhibit21smg20231230.htm (EX-21) — 29KB
• exhibit22smg20231230.htm (EX-22) — 13KB
• exhibit311smg20231230.htm (EX-31.1) — 12KB
• exhibit312smg20231230.htm (EX-31.2) — 12KB
• exhibit32smg20231230.htm (EX-32) — 10KB
• 0001546380-24-000007.txt (&nbsp;) — 9371KB
• smg-20231230.xsd (EX-101.SCH) — 62KB
• smg-20231230_cal.xml (EX-101.CAL) — 72KB
• smg-20231230_def.xml (EX-101.DEF) — 357KB
• smg-20231230_lab.xml (EX-101.LAB) — 735KB
• smg-20231230_pre.xml (EX-101.PRE) — 536KB
• smg-20231230_htm.xml (XML) — 1702KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION: Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Operations — Three months ended December 3 0 , 202 3 and December 31 , 2022 3 Condensed Consolidated Statements of Comprehensive (Income) Loss — Three months ended December 3 0 , 202 3 and December 31 , 2022 4 Condensed Consolidated Statements of Cash Flows — Three months ended December 3 0 , 202 3 and December 31 , 2022 5 Condensed Consolidated Balance Sheets — D ecember 3 0 , 202 3 , December 31 , 2022 and September 30, 20 23 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

OTHER INFORMATION

PART II. OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 40 Index to Exhibits 41

Signatures

Signatures 42 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS THE SCOTTS MIRACLE-GRO COMPANY Condensed Consolidated Statements of Operations (In millions, except per share data) (Unaudited) Three Months Ended December 30, 2023 December 31, 2022 Net sales $ 410.4 $ 526.6 Cost of sales 354.0 420.6 Cost of sales—impairment, restructuring and other ( 5.8 ) 10.3 Gross margin 62.2 95.7 Operating expenses: Selling, general and administrative 114.8 128.5 Impairment, restructuring and other ( 7.1 ) 8.5 Other expense, net 1.8 0.5 Loss from operations ( 47.3 ) ( 41.8 ) Equity in loss of unconsolidated affiliates 22.5 11.4 Interest expense 42.8 42.7 Other non-operating (income) expense, net 1.6 ( 1.6 ) Loss before income taxes ( 114.2 ) ( 94.3 ) Income tax benefit ( 33.7 ) ( 29.6 ) Net loss $ ( 80.5 ) $ ( 64.7 ) Basic net loss per common share: $ ( 1.42 ) $ ( 1.17 ) Diluted net loss per common share: $ ( 1.42 ) $ ( 1.17 ) Weighted-average common shares outstanding during the period 56.7 55.5 Weighted-average common shares outstanding during the period plus dilutive potential common shares 56.7 55.5 See Notes to Condensed Consolidated Financial Statements. 3 Contents THE SCOTTS MIRACLE-GRO COMPANY Condensed Consolidated Statements of Comprehensive (Income) Loss (In millions) (Unaudited) Three Months Ended December 30, 2023 December 31, 2022 Net loss $ ( 80.5 ) $ ( 64.7 ) Other comprehensive income (loss): Net foreign currency translation adjustment 3.1 7.2 Net unrealized loss on derivative instruments, net of tax ( 8.2 ) ( 4.8 ) Reclassification of net unrealized gains on derivative instruments to net loss, net of tax ( 1.5 ) ( 3.7 ) Net unrealized loss on securities, net of tax ( 0.9 ) ( 20.4 ) Pension and other post-retirement benefit adjustments, net of tax ( 1.4 ) ( 2.9 ) Total other comprehensive loss ( 8.9 ) ( 24.6 ) Comprehensive loss $ ( 89.4 ) $ ( 89.3 ) See Notes to Condensed Consolidated Financial Statements. 4 Contents THE SCOTTS MIRAC

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