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Pro Seed DO Form 8-K and Lead in Pages


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________
FORM 8-K
_________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 11, 2012
_________________________________
The Scotts Miracle-Gro Company
(Exact name of registrant as specified in its charter)
_________________________________
Ohio
001-11593
31-1414921
(State or other jurisdiction

(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
14111 Scottslawn Road, Marysville, Ohio
43041
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number, including area code: (937) 644-0011
Not applicable
(Former name or former address, if changed since last report.)
_________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

1



Item 7.01. Regulation FD Disclosure.
In the fourth quarter of fiscal year 2012, The Scotts Miracle-Gro Company ("the Company") completed the wind down of the Company's professional seed business. As a result, effective in its fourth quarter of fiscal 2012, the Company classified the results of operations for the professional seed business as a discontinued operation for all periods presented in its Annual Report on Form 10-K for the year ended September 30, 2012.
On November 20, 2012, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2012, reflecting the professional seed business as discontinued operations. The Company's historical results, including reportable segments, were revised to reflect the reclassification of the professional seed business as discontinued operations.
The Company is filing this Current Report on Form 8-K to provide additional historical financial results reflecting the professional seed business as discontinued operations. Attached hereto as Exhibit 99.1 are the following unaudited condensed consolidated selected financial data of the Company:
•
Reported and adjusted annual results of operations for fiscal 2012, 2011, 2010, 2009 and 2008;
•
Reported and adjusted quarterly results of operations for fiscal 2012 and 2011;
•
Net Sales and Income (Loss) from Continuing Operations before Income Taxes by Segment by quarter and on an annual basis for fiscal 2012 and 2011.
This Current Report on Form 8-K should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 and other Company filings with the Securities and Exchange Commission.
Item 9.01. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired:
Not applicable.
(b) Pro forma financial information:
Not applicable.
(c) Shell company transactions:
Not applicable.
(d) Exhibits:
 
 
Exhibit No.
Description
99.1
Unaudited Condensed, Consolidated Selected Financial Data

2



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
THE SCOTTS MIRACLE-GRO COMPANY
 
Dated:
December 11, 2012
By:  
/s/ David C. Evans  
 
 
 
Printed Name: David C. Evans 
 
 
 
Title: Chief Financial Officer and Executive Vice President, Strategy and Business Development 

3


INDEX TO EXHIBITS

Current Report on Form 8-K
Dated December 11, 2012
The Scotts Miracle-Gro Company

Exhibit No.
Description
99.1
Unaudited Condensed, Consolidated Selected Financial Data


4
Pro Seed DO 8-k


Exhibit 99.1


THE SCOTTS MIRACLE-GRO COMPANY
INDEX TO UNAUDITED CONDENSED CONSOLIDATED SELECTED FINANCIAL DATA

 
 
PAGE
Results of Operations and Reconciliation of Non-GAAP Disclosure Items for the:
 
 
 
 
 
 
 
 
 
 
 
 
 
 




-i-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the fiscal year ended September 30, 2012
 
 
Footnotes
 
As
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Adjusted(5)
Net sales
 
 
 
$
2,826.1

 
$
—

 
$
—

 
$
2,826.1

Gross profit
 
 
 
961.3

 
(0.4
)
 
—

 
961.7

% of sales
 
 
 
34.0
%
 
 
 
 
 
34.0
%
Income from operations
 
 
 
243.6

 
(8.2
)
 
(7.1
)
 
258.9

% of sales
 
 
 
8.6
%
 
 
 
 
 
9.2
%
Interest expense
 
 
 
61.8

 
—

 
—

 
61.8

Income from continuing operations before income taxes
 
 
 
181.8

 
(8.2
)
 
(7.1
)
 
197.1

Income tax expense
 
 
 
68.6

 
(0.8
)
 
(2.8
)
 
72.2

Income from continuing operations
 
 
 
113.2

 
$
(7.4
)
 
$
(4.3
)
 
$
124.9

Loss from discontinued operations, net of tax
 
(2)
 
(6.7
)
 
 
 
 
 
 
Net income
 
 
 
$
106.5

 
 
 
 
 
 
Basic income (loss) per common share:
 
(3)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.86

 
$
(0.12
)
 
$
(0.07
)
 
$
2.05

Loss from discontinued operations
 
 
 
(0.11
)
 
 
 
 
 
 
Net income
 
 
 
$
1.75

 
 
 
 
 
 
Diluted income (loss) per common share:
 
(4)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.82

 
$
(0.12
)
 
$
(0.07
)
 
$
2.01

Loss from discontinued operations
 
 
 
(0.11
)
 
 
 
 
 
 
Net income
 
 
 
$
1.71

 
 
 
 
 
 
Common shares used in basic income (loss) per share calculation
 
 
 
61.0

 
61.0

 
61.0

 
61.0

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
62.1

 
62.1

 
62.1

 
62.1



-1-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the fiscal year ended September 30, 2011
 
 
Footnotes
 
As
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Adjusted(5)
Net sales
 
 
 
$
2,799.7

 
$
—

 
$
—

 
$
2,799.7

Gross profit
 
 
 
1,009.2

 
(3.2
)
 
(18.3
)
 
1,030.7

% of sales
 
 
 
36.0
%
 
 
 
 
 
36.8
%
Income from operations
 
 
 
274.8

 
(14.6
)
 
(55.9
)
 
345.3

% of sales
 
 
 
9.8
%
 
 
 
 
 
12.3
%
Costs related to refinancing
 
 
 
1.2

 
—

 
—

 
1.2

Interest expense
 
 
 
51.0

 
—

 
—

 
51.0

Income from continuing operations before income taxes
 
 
 
222.6

 
(14.6
)
 
(55.9
)
 
293.1

Income tax expense
 
 
 
82.7

 
(2.6
)
 
(20.6
)
 
105.9

Income from continuing operations
 
 
 
139.9

 
$
(12.0
)
 
$
(35.3
)
 
$
187.2

Income from discontinued operations, net of tax
 
(2)
 
28.0

 
 
 
 
 
 
Net income
 
 
 
$
167.9

 
 
 
 
 
 
Basic income per common share:
 
(3)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.16

 
$
(0.18
)
 
$
(0.55
)
 
$
2.89

Income from discontinued operations
 
 
 
0.44

 
 
 
 
 
 
Net income
 
 
 
$
2.60

 
 
 
 
 
 
Diluted income per common share:
 
(4)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.11

 
$
(0.19
)
 
$
(0.53
)
 
$
2.83

Income from discontinued operations
 
 
 
0.43

 
 
 
 
 
 
Net income
 
 
 
$
2.54

 
 
 
 
 
 
Common shares used in basic income per share calculation
 
 
 
64.7

 
64.7

 
64.7

 
64.7

Common shares and potential common shares used in diluted income per share calculation
 
 
 
66.2

 
66.2

 
66.2

 
66.2





-2-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the fiscal year ended September 30, 2010
 
 
Footnotes
 
As
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Adjusted(5)
Net sales
 
 
 
$
2,873.0

 
$
—

 
$
—

 
$
2,873.0

Gross profit
 
 
 
1,085.6

 
(3.0
)
 
—

 
1,088.6

% of sales
 
 
 
37.8
%
 
 
 
 
 
37.9
%
Income from operations
 
 
 
374.4

 
(8.7
)
 
(18.5
)
 
401.6

% of sales
 
 
 
13.0
%
 
 
 
 
 
14.0
%
Interest expense
 
 
 
43.2

 
—

 
—

 
43.2

Income from continuing operations before income taxes
 
 
 
331.2

 
(8.7
)
 
(18.5
)
 
358.4

Income tax expense
 
 
 
123.5

 
(3.1
)
 
(5.8
)
 
132.4

Income from continuing operations
 
 
 
207.7

 
$
(5.6
)
 
$
(12.7
)
 
$
226.0

Loss from discontinued operations, net of tax
 
(2)
 
(3.6
)
 
 
 
 
 
 
Net income
 
 
 
$
204.1

 
 
 
 
 
 
Basic income (loss) per common share:
 
(3)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
3.13

 
$
(0.08
)
 
$
(0.19
)
 
$
3.40

Loss from discontinued operations
 
 
 
(0.05
)
 
 
 
 
 
 
Net income
 
 
 
$
3.08

 
 
 
 
 
 
Diluted income (loss) per common share:
 
(4)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
3.07

 
$
(0.08
)
 
$
(0.19
)
 
$
3.34

Loss from discontinued operations
 
 
 
(0.05
)
 
 
 
 
 
 
Net income
 
 
 
$
3.02

 
 
 
 
 
 
Common shares used in basic income (loss) per share calculation
 
 
 
66.3

 
66.3

 
66.3

 
66.3

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
67.6

 
67.6

 
67.6

 
67.6




-3-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the fiscal year ended September 30, 2009
 
 
Footnotes
 
Previously Reported(1)
 
Revised Reported(1)
 
Product
Registration
and
Recall Matters
 
Adjusted(5)
Net sales
 
 
 
$
2,746.4

 
$
2,715.3

 
$
(0.3
)
 
$
2,715.6

Gross profit
 
 
 
977.7

 
986.7

 
(11.8
)
 
998.5

% of sales
 
 
 
35.6
%
 
36.3
%
 
 
 
36.8
%
Income from operations
 
 
 
260.5

 
273.4

 
(28.6
)
 
302.0

% of sales
 
 
 
9.5
%
 
10.1
%
 
 
 
11.1
%
Interest expense
 
 
 
52.4

 
52.4

 
—

 
52.4

Income from continuing operations before income taxes
 
 
 
208.1

 
221.0

 
(28.6
)
 
249.6

Income tax expense
 
 
 
75.5

 
80.1

 
(10.5
)
 
90.6

Income from continuing operations
 
 
 
132.6

 
140.9

 
$
(18.1
)
 
$
159.0

Income from discontinued operations, net of tax
 
(2)
 
20.7

 
12.4

 
 
 
 
Net income
 
 
 
$
153.3

 
$
153.3

 
 
 
 
Basic income per common share:
 
(3)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.04

 
$
2.17

 
$
(0.28
)
 
$
2.45

Income from discontinued operations
 
 
 
0.32

 
0.19

 
 
 
 
Net income
 
 
 
$
2.36

 
$
2.36

 
 
 
 
Diluted income per common share:
 
(4)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.01

 
$
2.13

 
$
(0.27
)
 
$
2.40

Income from discontinued operations
 
 
 
0.31

 
0.19

 
 
 
 
Net income
 
 
 
$
2.32

 
$
2.32

 
 
 
 
Common shares used in basic income per share calculation
 
 
 
65.0

 
65.0

 
65.0

 
65.0

Common shares and potential common shares used in diluted income per share calculation
 
 
 
66.1

 
66.1

 
66.1

 
66.1




-4-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the fiscal year ended September 30, 2008
 
 
Footnotes
 
Previously Reported(1)
 
Revised Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Adjusted(5)
Net sales
 
 
 
$
2,552.0

 
$
2,506.8

 
$
(22.3
)
 
$
—

 
$
2,529.1

Gross profit
 
 
 
831.1

 
826.4

 
(38.4
)
 
(1.3
)
 
866.1

% of sales
 
 
 
32.6
%
 
33.0
%
 
 
 
 
 
34.2
%
Income from operations
 
 
 
125.2

 
139.2

 
(51.1
)
 
(76.2
)
 
266.5

% of sales
 
 
 
4.9
%
 
5.6
%
 
 
 
 
 
10.5
%
Interest expense
 
 
 
77.6

 
77.6

 
—

 
—

 
77.6

Income from continuing operations before income taxes
 
 
 
47.6

 
61.6

 
(51.1
)
 
(76.2
)
 
188.9

Income tax expense
 
 
 
15.6

 
20.7

 
(17.8
)
 
(27.4
)
 
65.9

Income from continuing operations
 
 
 
32.0

 
40.9

 
$
(33.3
)
 
$
(48.8
)
 
$
123.0

Loss from discontinued operations, net of tax
 
(2)
 
(42.9
)
 
(51.8
)
 
 
 
 
 
 
Net loss
 
 
 
$
(10.9
)
 
$
(10.9
)
 
 
 
 
 
 
Basic income (loss) per common share:
 
(3)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
0.50

 
$
0.63

 
$
(0.52
)
 
$
(0.75
)
 
$
1.91

Loss from discontinued operations
 
 
 
(0.67
)
 
(0.80
)
 
 
 
 
 
 
Net loss
 
 
 
$
(0.17
)
 
$
(0.17
)
 
 
 
 
 
 
Diluted income (loss) per common share:
 
(4)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
0.49

 
$
0.63

 
$
(0.51
)
 
$
(0.75
)
 
$
1.89

Loss from discontinued operations
 
 
 
(0.66
)
 
(0.80
)
 
 
 
 
 
 
Net loss
 
 
 
$
(0.17
)
 
$
(0.17
)
 
 
 
 
 
 
Common shares used in basic income (loss) per share calculation
 
 
 
64.5

 
64.5

 
64.5

 
64.5

 
64.5

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
65.4

 
65.4

 
65.4

 
65.4

 
65.4





-5-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended December 31, 2011
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Revised
Adjusted(5)
Net sales
 
 
 
$
211.2

 
$
199.6

 
$
—

 
$
—

 
$
199.6

Gross profit
 
 
 
24.8

 
25.6

 
—

 
—

 
25.6

% of sales
 
 
 
11.7
 %
 
12.8
 %
 
 
 
 
 
12.8
 %
Loss from operations
 
 
 
(100.2
)
 
(99.0
)
 
(0.3
)
 
(2.4
)
 
(96.3
)
% of sales
 
 
 
(47.4
)%
 
(49.6
)%
 
 
 
 
 
(48.2
)%
Interest expense
 
 
 
15.3

 
15.3

 
—

 
—

 
15.3

Loss from continuing operations before income taxes
 
 
 
(115.5
)
 
(114.3
)
 
(0.3
)
 
(2.4
)
 
(111.6
)
Income tax benefit
 
 
 
(41.6
)
 
(41.2
)
 
(0.1
)
 
(0.9
)
 
(40.2
)
Loss from continuing operations
 
 
 
(73.9
)
 
(73.1
)
 
$
(0.2
)
 
$
(1.5
)
 
$
(71.4
)
Loss from discontinued operations, net of tax
 
(2)
 
—

 
(0.8
)
 
 
 
 
 
 
Net loss
 
 
 
$
(73.9
)
 
$
(73.9
)
 
 
 
 
 
 
Basic loss per common share:
 
(3)
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.21
)
 
$
(1.20
)
 
$
—

 
$
(0.02
)
 
$
(1.17
)
Loss from discontinued operations
 
 
 
—

 
(0.01
)
 
 
 
 
 
 
Net loss
 
 
 
$
(1.21
)
 
$
(1.21
)
 
 
 
 
 
 
Diluted loss per common share:
 
(4)
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.21
)
 
$
(1.20
)
 
$
—

 
$
(0.02
)
 
$
(1.17
)
Loss from discontinued operations
 
 
 
—

 
(0.01
)
 
 
 
 
 
 
Net loss
 
 
 
$
(1.21
)
 
$
(1.21
)
 
 
 
 
 
 
Common shares used in basic loss per share calculation
 
 
 
60.9

 
60.9

 
60.9

 
60.9

 
60.9

Common shares and potential common shares used in diluted loss per share calculation
 
 
 
60.9

 
60.9

 
60.9

 
60.9

 
60.9




-6-


THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended March 31, 2012
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Revised
Adjusted(5)
Net sales
 
 
 
$
1,173.5

 
$
1,170.4

 
$
—

 
$
—

 
$
1,170.4

Gross profit
 
 
 
462.8

 
461.7

 
(0.2
)
 
—

 
461.9

% of sales
 
 
 
39.4
%
 
39.4
%
 
 
 
 
 
39.5
%
Income from operations
 
 
 
218.2

 
217.1

 
(3.5
)
 
(5.1
)
 
225.7

% of sales
 
 
 
18.6
%
 
18.5
%
 
 
 
 
 
19.3
%
Interest expense
 
 
 
17.9

 
17.9

 
—

 
—

 
17.9

Income from continuing operations before income taxes
 
 
 
200.3

 
199.2

 
(3.5
)
 
(5.1
)
 
207.8

Income tax expense
 
 
 
73.1

 
72.7

 
(0.6
)
 
(2.2
)
 
75.5

Income from continuing operations
 
 
 
127.2

 
126.5

 
$
(2.9
)
 
$
(2.9
)
 
$
132.3

Income from discontinued operations, net of tax
 
(2)
 
—

 
0.7

 
 
 
 
 
 
Net income
 
 
 
$
127.2

 
$
127.2

 
 
 
 
 
 
Basic income per common share:
 
(3)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.09

 
$
2.08

 
$
(0.05
)
 
$
(0.05
)
 
$
2.17

Income from discontinued operations
 
 
 
—

 
0.01

 
 
 
 
 
 
Net income
 
 
 
$
2.09

 
$
2.09

 
 
 
 
 
 
Diluted income per common share:
 
(4)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.05

 
$
2.04

 
$
(0.05
)
 
$
(0.05
)
 
$
2.13

Income from discontinued operations
 
 
 
—

 
0.01

 
 
 
 
 
 
Net income
 
 
 
$
2.05

 
$
2.05

 
 
 
 
 
 
Common shares used in basic income per share calculation
 
 
 
60.9

 
60.9

 
60.9

 
60.9

 
60.9

Common shares and potential common shares used in diluted income per share calculation
 
 
 
62.0

 
62.0

 
62.0

 
62.0

 
62.0




-7-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended June 30, 2012
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Revised
Adjusted(5)
Net sales
 
 
 
$
1,062.2

 
$
1,054.9

 
$
—

 
$
—

 
$
1,054.9

Gross profit
 
 
 
366.5

 
369.0

 
(0.2
)
 
—

 
369.2

% of sales
 
 
 
34.5
%
 
35.0
%
 
 
 
 
 
35.0
%
Income from operations
 
 
 
168.0

 
170.2

 
(4.0
)
 
0.4

 
173.8

% of sales
 
 
 
15.8
%
 
16.1
%
 
 
 
 
 
16.5
%
Interest expense
 
 
 
16.6

 
16.6

 
—

 
—

 
16.6

Income from continuing operations before income taxes
 
 
 
151.4

 
153.6

 
(4.0
)
 
0.4

 
157.2

Income tax expense
 
 
 
56.4

 
57.2

 
0.1

 
0.7

 
56.4

Income from continuing operations
 
 
 
95.0

 
96.4

 
$
(4.1
)
 
$
(0.3
)
 
$
100.8

Loss from discontinued operations, net of tax
 
(2)
 
(1.7
)
 
(3.1
)
 
 
 
 
 
 
Net income
 
 
 
$
93.3

 
$
93.3

 
 
 
 
 
 
Basic income (loss) per common share:
 
(3)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.55

 
$
1.58

 
$
(0.07
)
 
$
(0.01
)
 
$
1.65

Loss from discontinued operations
 
 
 
(0.02
)
 
(0.05
)
 
 
 
 
 
 
Net income
 
 
 
$
1.53

 
$
1.53

 
 
 
 
 
 
Diluted income (loss) per common share:
 
(4)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.53

 
$
1.55

 
$
(0.07
)
 
$
—

 
$
1.62

Loss from discontinued operations
 
 
 
(0.03
)
 
(0.05
)
 
 
 
 
 
 
Net income
 
 
 
$
1.50

 
$
1.50

 
 

 
 
 
 

Common shares used in basic income (loss) per share calculation
 
 
 
61.1

 
61.1

 
61.1

 
61.1

 
61.1

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
62.2

 
62.2

 
62.2

 
62.2

 
62.2




-8-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
For the three months ended September 30, 2012
 
 
Footnotes
 
As
Reported(1)
 
Product
Registration
and
Recall Matters
 
Adjusted(5)
Net sales
 
 
 
$
401.2

 
$
—

 
$
401.2

Gross profit
 
 
 
105.0

 
—

 
105.0

% of sales
 
 
 
26.2
 %
 
 
 
26.2
 %
Loss from operations
 
 
 
(44.7
)
 
(0.4
)
 
(44.3
)
% of sales
 
 
 
(11.1
)%
 
 
 
(11.0
)%
Interest expense
 
 
 
12.0

 
—

 
12.0

Loss from continuing operations before income taxes
 
 
 
(56.7
)
 
(0.4
)
 
(56.3
)
Income tax benefit
 
 
 
(20.1
)
 
(0.2
)
 
(19.9
)
Loss from continuing operations
 
 
 
(36.6
)
 
$
(0.2
)
 
$
(36.4
)
Loss from discontinued operations, net of tax
 
(2)
 
(3.5
)
 
 
 
 
Net loss
 
 
 
$
(40.1
)
 
 
 
 
Basic loss per common share:
 
(3)
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(0.60
)
 
$
(0.01
)
 
$
(0.59
)
Loss from discontinued operations
 
 
 
(0.06
)
 
 
 
 
Net loss
 
 
 
$
(0.66
)
 
 
 
 
Diluted loss per common share:
 
(4)
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(0.60
)
 
$
(0.01
)
 
$
(0.59
)
Loss from discontinued operations
 
 
 
(0.06
)
 
 
 
 
Net loss
 
 
 
$
(0.66
)
 
 
 
 
Common shares used in basic loss per share calculation
 
 
 
61.2

 
61.2

 
61.2

Common shares and potential common shares used in diluted loss per share calculation
 
 
 
61.2

 
61.2

 
61.2




-9-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended January 1, 2011
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Revised
Adjusted(5)
Net sales
 
 
 
$
230.2

 
$
225.7

 
$
—

 
$
225.7

Gross profit
 
 
 
49.1

 
49.8

 
(0.8
)
 
50.6

% of sales
 
 
 
21.3
 %
 
22.1
 %
 
 
 
22.4
 %
Loss from operations
 
 
 
(94.5
)
 
(93.2
)
 
(1.7
)
 
(91.5
)
% of sales
 
 
 
(41.1
)%
 
(41.3
)%
 
 
 
(40.5
)%
Interest expense
 
 
 
9.5

 
9.5

 
—

 
9.5

Loss from continuing operations before income taxes
 
 
 
(104.0
)
 
(102.7
)
 
(1.7
)
 
(101.0
)
Income tax benefit
 
 
 
(37.3
)
 
(36.8
)
 
(0.6
)
 
(36.2
)
Loss from continuing operations
 
 
 
(66.7
)
 
(65.9
)
 
$
(1.1
)
 
$
(64.8
)
Loss from discontinued operations, net of tax
 
(2)
 
(1.2
)
 
(2.0
)
 
 
 
 
Net loss
 
 
 
$
(67.9
)
 
$
(67.9
)
 
 
 
 
Basic loss per common share:
 
(3)
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.00
)
 
$
(0.99
)
 
$
(0.01
)
 
$
(0.98
)
Loss from discontinued operations
 
 
 
(0.02
)
 
(0.03
)
 
 
 
 
Net loss
 
 
 
$
(1.02
)
 
$
(1.02
)
 
 
 
 
Diluted loss per common share:
 
(4)
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.00
)
 
$
(0.99
)
 
$
(0.01
)
 
$
(0.98
)
Loss from discontinued operations
 
 
 
(0.02
)
 
(0.03
)
 
 
 
 
Net loss
 
 
 
$
(1.02
)
 
$
(1.02
)
 
 
 
 
Common shares used in basic loss per share calculation
 
 
 
66.3

 
66.3

 
66.3

 
66.3

Common shares and potential common shares used in diluted loss per share calculation
 
 
 
66.3

 
66.3

 
66.3

 
66.3





-10-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended April 2, 2011
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Revised
Adjusted(5)
Net sales
 
 
 
$
1,129.6

 
$
1,122.9

 
$
—

 
$
1,122.9

Gross profit
 
 
 
462.7

 
463.8

 
(1.3
)
 
465.1

% of sales
 
 
 
41.0
%
 
41.3
%
 
 
 
41.4
%
Income from operations
 
 
 
245.6

 
246.7

 
(2.5
)
 
249.2

% of sales
 
 
 
21.7
%
 
22.0
%
 
 
 
22.2
%
Interest expense
 
 
 
13.8

 
13.8

 
—

 
13.8

Income from continuing operations before income taxes
 
 
 
231.8

 
232.9

 
(2.5
)
 
235.4

Income tax expense
 
 
 
83.2

 
83.5

 
(0.8
)
 
84.3

Income from continuing operations
 
 
 
148.6

 
149.4

 
$
(1.7
)
 
$
151.1

Income from discontinued operations, net of tax
 
(2)
 
29.0

 
28.2

 
 
 
 
Net income
 
 
 
$
177.6

 
$
177.6

 
 
 
 
Basic income per common share:
 
(3)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.26

 
$
2.27

 
$
(0.02
)
 
$
2.29

Income from discontinued operations
 
 
 
0.44

 
0.43

 
 
 
 
Net income
 
 
 
$
2.70

 
$
2.70

 
 
 
 
Diluted income per common share:
 
(4)
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
2.20

 
$
2.21

 
$
(0.02
)
 
$
2.23

Income from discontinued operations
 
 
 
0.43

 
0.42

 
 
 
 
Net income
 
 
 
$
2.63

 
$
2.63

 
 
 
 
Common shares used in basic income per share calculation
 
 
 
65.8

 
65.8

 
65.8

 
65.8

Common shares and potential common shares used in diluted income per share calculation
 
 
 
67.6

 
67.6

 
67.6

 
67.6





-11-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended July 2, 2011
 
 
Footnotes
 
Previously
Reported(1)
 
Revised
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 
Revised
Adjusted(5)
Net sales
 
 
 
$
1,058.7

 
$
1,048.0

 
$
—

 
$
—

 
$
1,048.0

Gross profit
 
 
 
400.1

 
400.1

 
(1.1
)
 
—

 
401.2

% of sales
 
 
 
37.8
%
 
38.2
%
 
 
 
 
 
38.3
%
Income from operations
 
 
 
192.4

 
202.8

 
(6.8
)
 
(3.6
)
 
213.2

% of sales
 
 
 
18.2
%
 
19.4
%
 
 
 
 
 
20.3
%
Cost related to financing
 
 
 
1.2

 
1.2

 
—

 
—

 
1.2

Interest expense
 
 
 
14.0

 
14.0

 
—

 
—

 
14.0

Income from continuing operations before income taxes
 
 
 
177.2

 
187.6

 
(6.8
)
 
(3.6
)
 
198.0

Income tax expense
 
 
 
65.5

 
69.2

 
(0.8
)
 
(1.1
)
 
71.1

Income from continuing operations
 
 
 
111.7

 
118.4

 
$
(6.0
)
 
$
(2.5
)
 
$
126.9

Loss from discontinued operations, net of tax
 
(2)
 
(0.1
)
 
(6.8
)
 
 
 
 
 
 
Net income
 
 
 
$
111.6

 
$
111.6

 
 
 
 
 
 
Basic income (loss) per common share:
 
(3)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.73

 
$
1.85

 
$
(0.09
)
 
$
(0.04
)
 
$
1.97

Loss from discontinued operations
 
 
 
—

 
(0.11
)
 
 
 
 
 
 
Net income
 
 
 
$
1.73

 
$
1.73

 
 
 
 
 
 
Diluted income (loss) per common share:
 
(4)
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
$
1.69

 
$
1.79

 
$
(0.09
)
 
$
(0.04
)
 
$
1.93

Loss from discontinued operations
 
 
 
—

 
(0.10
)
 
 
 
 
 
 
Net income
 
 
 
$
1.69

 
$
1.70

 
 

 
 
 
 

Common shares used in basic income (loss) per share calculation
 
 
 
64.5

 
64.5

 
64.5

 
64.5

 
64.5

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
66.2

 
66.2

 
66.2

 
66.2

 
66.2




-12-

THE SCOTTS MIRACLE-GRO COMPANY
Results of Operations and Reconciliation of Non-GAAP Disclosure Items
(Unaudited) (In millions, except per share data)
Note: See Accompanying Footnotes on Page 15

 
 
 
 
For the three months ended September 30, 2011
 
 
Footnotes
 
As
Reported(1)
 
Product
Registration
and
Recall Matters
 
Impairment, Restructuring and Other Charges
 

Adjusted(5)
Net sales
 
 
 
$
403.1

 
$
—

 
$
—

 
$
403.1

Gross profit
 
 
 
95.5

 
—

 
(18.3
)
 
113.8

% of sales
 
 
 
23.7
 %
 
 
 
 
 
28.2
 %
Loss from operations
 
 
 
(81.5
)
 
(3.6
)
 
(52.3
)
 
(25.6
)
% of sales
 
 
 
(20.2
)%
 
 
 
 
 
(6.4
)%
Interest expense
 
 
 
13.7

 
—

 
—

 
13.7

Loss from continuing operations before income taxes
 
 
 
(95.2
)
 
(3.6
)
 
(52.3
)
 
(39.3
)
Income tax benefit
 
 
 
(33.2
)
 
(0.2
)
 
(19.4
)
 
(13.6
)
Loss from continuing operations
 
 
 
(62.0
)
 
$
(3.4
)
 
$
(32.9
)
 
$
(25.7
)
Income from discontinued operations, net of tax
 
(2)
 
8.6

 
 
 
 
 
 
Net loss
 
 
 
$
(53.4
)
 
 
 
 
 
 
Basic loss per common share:
 
(3)
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.00
)
 
$
(0.06
)
 
$
(0.53
)
 
$
(0.41
)
Income from discontinued operations
 
 
 
0.14

 
 
 
 
 
 
Net loss
 
 
 
$
(0.86
)
 
 
 
 
 
 
Diluted loss per common share:
 
(4)
 
 
 
 
 
 
 
 
Loss from continuing operations
 
 
 
$
(1.00
)
 
$
(0.06
)
 
$
(0.53
)
 
$
(0.41
)
Income from discontinued operations
 
 
 
0.14

 
 
 
 
 
 
Net loss
 
 
 
$
(0.86
)
 
 

 
 
 
 

Common shares used in basic income (loss) per share calculation
 
 
 
62.0

 
62.0

 
62.0

 
62.0

Common shares and potential common shares used in diluted income (loss) per share calculation
 
 
 
62.0

 
62.0

 
62.0

 
62.0




-13-

THE SCOTTS MIRACLE-GRO COMPANY
Net Sales and Income (Loss) from Continuing Operations before Income Taxes by Segment
(Unaudited) (In millions)
Note: See Accompanying Footnote 6 on Page 15

 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal year ended September 30, 2012
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
Year
Net Sales:
 
 
 
 
 
 
 
 
 
 
Global Consumer
 
$
149.1

 
$
1,119.6

 
$
960.7

 
$
309.8

 
$
2,539.2

Scotts LawnService®
 
37.6

 
35.9

 
87.8

 
84.5

 
245.8

Segment total
 
186.7

 
1,155.5

 
1,048.5

 
394.3

 
2,785.0

Corporate & Other
 
12.9

 
14.9

 
6.4

 
6.9

 
41.1

Consolidated
 
$
199.6

 
$
1,170.4

 
$
1,054.9

 
$
401.2

 
$
2,826.1

Income (loss) from Continuing Operations before Income Taxes:
 
 
 
 
 
 
 
 
 
 
Global Consumer
 
$
(69.5
)
 
$
275.2

 
$
171.7

 
$
(39.1
)
 
$
338.3

Scotts LawnService®
 
(4.6
)
 
(12.9
)
 
22.4

 
22.1

 
27.0

Segment total
 
(74.1
)
 
262.3

 
194.1

 
(17.0
)
 
365.3

Corporate & Other
 
(19.7
)
 
(34.6
)
 
(18.1
)
 
(23.9
)
 
(96.3
)
Intangible asset amortization
 
(2.5
)
 
(2.0
)
 
(2.2
)
 
(3.4
)
 
(10.1
)
Product registration and recall matters
 
(0.3
)
 
(3.5
)
 
(4.0
)
 
(0.4
)
 
(8.2
)
Impairment, restructuring and other charges
 
(2.4
)
 
(5.1
)
 
0.4

 
—

 
(7.1
)
Interest expense
 
(15.3
)
 
(17.9
)
 
(16.6
)
 
(12.0
)
 
(61.8
)
Consolidated
 
$
(114.3
)
 
$
199.2

 
$
153.6

 
$
(56.7
)
 
$
181.8


 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal year ended September 30, 2011
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Total
Year
Net Sales:
 
 
 
 
 
 
 
 
 
 
Global Consumer
 
$
188.8

 
$
1,084.8

 
$
951.6

 
$
308.0

 
$
2,533.2

Scotts LawnService®
 
37.1

 
32.7

 
82.4

 
83.4

 
235.6

Segment total
 
225.9

 
1,117.5

 
1,034.0

 
391.4

 
2,768.8

Corporate & Other
 
(0.2
)
 
5.4

 
14.0

 
11.7

 
30.9

Consolidated
 
$
225.7

 
$
1,122.9

 
$
1,048.0

 
$
403.1

 
$
2,799.7

Income (loss) from Continuing Operations before Income Taxes:
 
 
 
 
 
 
 
 
 
 
Global Consumer
 
$
(55.1
)
 
$
298.8

 
$
209.6

 
$
(28.3
)
 
$
425.0

Scotts LawnService®
 
(4.5
)
 
(15.2
)
 
22.4

 
23.2

 
25.9

Segment total
 
(59.6
)
 
283.6

 
232.0

 
(5.1
)
 
450.9

Corporate & Other
 
(29.6
)
 
(31.7
)
 
(15.7
)
 
(18.0
)
 
(95.0
)
Intangible asset amortization
 
(2.3
)
 
(2.7
)
 
(3.1
)
 
(2.5
)
 
(10.6
)
Product registration and recall matters
 
(1.7
)
 
(2.5
)
 
(6.8
)
 
(3.6
)
 
(14.6
)
Impairment, restructuring and other charges
 
—

 
—

 
(3.6
)
 
(52.3
)
 
(55.9
)
Costs related to refinancing
 
—

 
—

 
(1.2
)
 
—

 
(1.2
)
Interest expense
 
(9.5
)
 
(13.8
)
 
(14.0
)
 
(13.7
)
 
(51.0
)
Consolidated
 
$
(102.7
)
 
$
232.9

 
$
187.6

 
$
(95.2
)
 
$
222.6




-14-

THE SCOTTS MIRACLE-GRO COMPANY
Footnotes to Condensed, Consolidated Selected Financial Data

(1)
 
Reported results of operations reflect the Company’s consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012. Revised reported results of operations are derived from the Company’s historical consolidated financial statements, as recast to retrospectively reflect the Company’s professional seed business as discontinued operations in accordance with GAAP. See Footnote 2 below.
 
 
 
(2)
 
In the fourth quarter of fiscal 2012, the Company completed the wind down of the Company's professional seed business. As a result, effective in its fourth quarter of fiscal 2012, the Company classified its results of operations for fiscal 2012, 2011 and 2010 to reflect the professional seed business as a discontinued operation. On February 28, 2011, the Company completed the sale of a significant majority of the assets of its global professional business (excluding the non-European professional seed business, “Global Pro”). As a result of the then-pending sale, effective in the Company's first quarter of fiscal 2011, the Company reclassified the assets and liabilities of Global Pro to assets and liabilities held for sale and included the results of operations of Global Pro in discontinued operations for all periods presented. During the first quarter of fiscal 2010, the Company completed the closure of its Smith & Hawken business. As a result, beginning in the first quarter of fiscal 2010 the Company included the results of operations of Smith & Hawken in discontinued operations for all periods presented.
 
 
 
(3)
 
Basic income (loss) per common share amounts are calculated by dividing income (loss) from continuing operations, income (loss) from discontinued operations and net income (loss) by average common shares outstanding during the period.
 
 
 
(4)
 
Diluted income (loss) per common share amounts are calculated by dividing income (loss) from continuing operations, income (loss) from discontinued operations and net income (loss) by the average common shares and dilutive potential common shares (common stock options, stock appreciation rights, performance shares, restricted stock and restricted stock units) outstanding during the period. When there is a loss for the period, dilutive potential common shares are not included in the calculations because to do so would be anti-dilutive.
 
 
 
(5)
 
The Reconciliation of Non-GAAP Disclosure Items includes the following non-GAAP financial measures:
 
 
 
 
 
Adjusted income (loss) from continuing operations and adjusted basic and diluted income (loss) per share from continuing operations — These measures exclude charges or credits relating to impairments, restructurings, product registration and recall matters, discontinued operations and other unusual items such as costs or gains related to discrete projects or transactions that are apart from and not indicative of the results of the operations of the business.
 
 
 
 
 
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparison between current results and results in prior operating periods. The Company believes that these non-GAAP financial measures are the most indicative of the Company's ongoing earnings capabilities and that disclosure of these non-GAAP financial measures therefore provides useful information to investors and other users of its financial statements, such as lenders. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
 
 
 
(6)
 
The Company divides its business into the following segments—Global Consumer and Scotts LawnService®. This division of reportable segments is consistent with how the segments report to and are managed by the our Cheif Executive Officer (the chief operating decision maker of the Company). The Company has made reclassifications to prior period segment amounts as a result of the change in internal organization structure associated with the disposal of the Company's professional seed business, which is now reported in discontinued operations.
 
 
 
 
 
Segment performance is evaluated based on operating profit which excludes several factors, including income from continuing operations before amortization, product registration and recall costs, and impairment, restructuring and other charges, which are not GAAP measures. Senior management of the Company uses this measure of operating profit to evaluate segment performance because the Company believes this measure is the most indicative of performance trends and the overall earnings potential of each segment.
 
 
 
 
 
Corporate & Other consists of the Company’s revenues and expenses associated with the Company’s supply agreements with ICL and the amortization related to the Roundup® Marketing Agreement, as well as corporate, general and administrative expenses and certain other income/expense items not allocated to the business segments.

-15-