Core Insights - The Scotts Miracle-Gro Foundation and KidsGardening are awarding grants to 170 community-level programs to enhance children's connection to gardens and outdoor play through the GroMoreGood Grassroots Grant initiative [1][2] Group 1: Grant Program Details - The grants will support the initiation or expansion of youth gardens and green spaces from spring through fall [2] - Selection criteria for the 2025 grant recipients included learning impact, participant demographics, prior funding, and socioeconomic reach [2] Group 2: Impact and Reach - The 2025 grant recipients are expected to connect over 38,000 youth with garden-based learning opportunities across 44 states [3] - The initiative aims to restore gardens after natural disasters, create inclusive spaces for youth with disabilities, and revitalize community gardens for after-school programs [3][4] Group 3: Organizational Mission - The Scotts Miracle-Gro Foundation focuses on inspiring and cultivating healthier communities, empowering the next generation, and preserving the planet through grants and support for non-profit entities [5] - KidsGardening aims to create opportunities for children to engage in gardening, providing grants and educational materials to over 2.7 million kids nationwide [6]

Group 1 - The Scotts Miracle-Gro Company has appointed Jim Safka as senior vice president of ecommerce, indicating a commitment to channel expansion [1][3] - Safka has a strong background in technology and digital marketing, having previously served as CEO of Match.com, where he achieved over 20% annual growth [2][4] - The company aims to enhance its ecommerce capabilities to better connect with consumers and drive traffic to its leading brands [4] Group 2 - Scotts Miracle-Gro reported approximately $3.6 billion in sales, making it the largest marketer of branded consumer products for lawn and garden care [5] - The company's brands, including Scotts®, Miracle-Gro®, and Ortho®, are recognized as market leaders in their respective categories [5]

Core Viewpoint - The Scotts Miracle-Gro Company will present at the Raymond James & Associates' 46th Annual Institutional Investors Conference, highlighting its position as a leading marketer in the lawn and garden care industry and its significant role in indoor and hydroponic growing products [1][2]. Company Overview - Scotts Miracle-Gro has approximately $3.6 billion in sales, making it the world's largest marketer of branded consumer products for lawn and garden care [3]. - The company's brands, including Scotts®, Miracle-Gro®, and Ortho®, are recognized as market leaders in their respective categories [3]. - The Hawthorne Gardening Company, a wholly-owned subsidiary, is a prominent provider of nutrients, lighting, and materials for indoor and hydroponic growing [3]. Presentation Details - Nate Baxter, president and COO, and Mark Scheiwer, interim CFO, will provide an overview of the company and participate in a fireside chat at approximately 2:50 p.m. ET on March 4, 2025 [2]. - A live webcast of the presentation and chat will be available on the company's investor relations website, with an archive accessible for at least 90 days [2].

Financial Performance - Net sales for the three months ended December 28, 2024, were $416.8 million, an increase of 1.6% from $410.4 million for the same period in 2023[117] - Gross margin as a percentage of net sales improved to 22.7% for the three months ended December 28, 2024, compared to 15.2% for the same period in 2023[119] - The cost of sales decreased to $316.9 million for the three months ended December 28, 2024, down from $354.0 million in the same period in 2023[115] - The net loss for the three months ended December 28, 2024, was $69.5 million, compared to a net loss of $80.5 million for the same period in 2023[115] - For the three months ended December 28, 2024, net loss was $69.5 million, or $1.21 per diluted share, compared to a net loss of $80.5 million, or $1.42 per diluted share for the same period in 2023, driven by higher net sales and lower equity in loss of unconsolidated affiliates[133] - U.S. Consumer segment net sales increased by 11.2% to $340.9 million in the first quarter of fiscal 2025, up from $306.7 million in the first quarter of fiscal 2024, primarily due to a 17.9% increase in sales volume[137] - Hawthorne segment net sales decreased by 35.0% to $52.1 million in the first quarter of fiscal 2025, down from $80.1 million in the first quarter of fiscal 2024, attributed to a 17.4% decline from discontinued sales of other companies' products and a 16.2% decrease in sales volume[139] - Total segment profit (non-GAAP) improved to $8.6 million in the first quarter of fiscal 2025 from a loss of $30.2 million in the first quarter of fiscal 2024, driven by higher net sales and improved gross margin rates[135] Expenses and Charges - Selling, general and administrative expenses increased by $10.0 million, or 8.7%, to $124.8 million for the three months ended December 28, 2024, compared to $114.8 million in 2023[122] - The company recorded total impairment, restructuring, and other charges of $21.7 million for the three months ended December 28, 2024[123] - Interest expense decreased by 21.3% to $33.7 million for the three months ended December 28, 2024, compared to $42.8 million for the same period in 2023, due to lower average borrowings and a decrease in the weighted average interest rate[131] - Corporate expenses increased by 33.8% to $34.8 million in the first quarter of fiscal 2025 from $26.0 million in the first quarter of fiscal 2024, driven by higher short-term variable incentive compensation[142] Cash Flow and Financing - Cash used in operating activities totaled $445.3 million for the three months ended December 28, 2024, an increase of $102.1 million compared to $343.2 million for the same period in 2023, driven by higher inventory production and timing of accounts receivable sales[144] - Cash provided by financing activities was $407.7 million for the three months ended December 28, 2024, compared to $374.2 million for the same period in 2023, reflecting net borrowings on debt instruments of $464.8 million[146] - The company issued $250 million of 5.250% Senior Notes due 2026, $450 million of 4.500% Senior Notes due 2029, $500 million of 4.000% Senior Notes due 2031, and $400 million of 4.375% Senior Notes due 2032[158][159][160][161] Assets and Liabilities - Current assets increased to $1,157.6 million as of December 28, 2024, compared to $838.4 million on September 30, 2024[174] - Non-current liabilities increased to $2,927.8 million as of December 28, 2024, from $2,471.6 million on September 30, 2024[174] - As of December 28, 2024, the outstanding payment obligations under the supplier finance program were $27.1 million, $30.8 million, and $12.5 million for the respective dates of December 28, 2024, December 30, 2023, and September 30, 2024[148] - Cash and cash equivalents were $9.8 million, $10.4 million, and $71.6 million as of December 28, 2024, December 30, 2023, and September 30, 2024, respectively[149] Compliance and Legal Matters - The company is involved in various pending judicial and administrative proceedings, which may materially affect future operating results[176] - The company believes it is in substantial compliance with environmental protection laws and regulations, although it is involved in legal actions related to environmental matters[177] - The company has contemplated alternative plans for potential noncompliance, including restructuring activities and discussions with lenders to amend financial covenants[157] Market and Economic Conditions - The company continues to monitor macroeconomic conditions, including elevated interest rates and inflationary pressures, which may impact future performance[114] - Market risks have not changed materially from those disclosed in the 2024 Annual Report[181] - Critical accounting estimates related to revenue recognition and promotional allowances have not changed materially from those disclosed in the 2024 Annual Report[180] Ratios and Coverage - The leverage ratio was 4.52 as of December 28, 2024, with a maximum permitted leverage ratio of 5.50 for the first quarter of fiscal 2025[155] - The fixed charge coverage ratio was 1.38 for the twelve months ended December 28, 2024, exceeding the minimum required ratio of 1.00[155] - The interest coverage ratio was 3.95 for the twelve months ended December 28, 2024, surpassing the minimum required ratio of 2.00[163]

Core Insights - Scotts Miracle-Gro Company (SMG) reported a first-quarter fiscal 2025 loss of $69.5 million or $1.21 per share, an improvement from a loss of $80.5 million or $1.42 per share in the same quarter last year [1] - Adjusted loss was 89 cents per share, better than a loss of $1.45 a year ago and narrower than the Zacks Consensus Estimate of a loss of $1.28 [1][2] - Net sales increased by approximately 1.6% year over year to $416.8 million, surpassing the consensus estimate of $393.4 million [2] Segment Performance - U.S. Consumer division net sales rose 11% year over year to $340.9 million, exceeding the estimate of $318.8 million, driven by a strong fall season and early retailer load-in for spring [3] - Hawthorne segment net sales fell 35% year over year to $52.1 million, missing the estimate of $61.7 million, attributed to a strategic exit from third-party distribution [4] - Other segment net sales increased by 1% year over year to $23.8 million [4] Financial Position - At the end of the quarter, cash and cash equivalents were $9.8 million, down from $10.4 million a year ago, while long-term debt decreased to $2,636.9 million from $2,969 million [5] Fiscal 2025 Outlook - The company reaffirmed its full-year sales, adjusted gross margin, and adjusted EBITDA guidance, while reducing interest expense guidance [6] - U.S. consumer net sales are expected to grow in low single digits, excluding non-repeat sales for AeroGarden and bulk raw material sales, while Hawthorne's net sales are projected to decline by mid-single digits [6] - Adjusted gross margin is anticipated to be around 30% for fiscal 2025, with adjusted EBITDA projected between $570 million and $590 million [6] Stock Performance - Scotts Miracle-Gro shares have increased by 32.5% over the past year, compared to a 7.8% rise in the industry [7]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging opportunities [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but a beneficial long position may be initiated in SMG within the next 72 hours [2] - The article expresses personal opinions and is not compensated for the content, indicating an independent analysis [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to perform due diligence before making investment decisions [3] - Past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Core Insights - The Scotts Miracle-Gro Company has appointed Nick Miaritis to its Board of Directors, reflecting a strategic move to enhance its marketing capabilities and consumer engagement [1][2][3] Group 1: Appointment Details - Nick Miaritis is currently the chief client officer at VaynerMedia, where he leads brand partnerships and growth opportunities [2] - Miaritis has a strong background in creating impactful marketing campaigns for major brands, including Duracell and Planters [2] - His appointment comes after the retirement of Tom Kelly, who served on the Board for nearly 20 years and chaired the innovation committee [2][3] Group 2: Company Overview - Scotts Miracle-Gro is the largest marketer of branded consumer lawn and garden products, with approximately $3.6 billion in sales [4] - The company's well-known brands include Scotts®, Miracle-Gro®, and Ortho®, which are leaders in their respective categories [4] - The Hawthorne Gardening Company, a wholly-owned subsidiary, specializes in indoor and hydroponic growing products [4]

For the quarter ended December 2024, Scotts Miracle-Gro (SMG) reported revenue of $416.8 million, up 1.6% over the same period last year. EPS came in at -$0.89, compared to -$1.45 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $393.42 million, representing a surprise of +5.94%. The company delivered an EPS surprise of +30.47%, with the consensus EPS estimate being -$1.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Group 1 - Scotts Miracle-Gro reported a quarterly loss of $0.89 per share, better than the Zacks Consensus Estimate of a loss of $1.28, and an improvement from a loss of $1.45 per share a year ago, resulting in an earnings surprise of 30.47% [1] - The company posted revenues of $416.8 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 5.94%, and showing an increase from $410.4 million in the same quarter last year [2] - Scotts shares have increased approximately 14.2% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $3.93 on revenues of $1.52 billion, and for the current fiscal year, it is $3.29 on revenues of $3.55 billion [7] - The Fertilizers industry, to which Scotts belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Group 3 - The estimate revisions trend for Scotts is mixed, leading to a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] - Nutrien, another company in the same industry, is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year decline of 10.8%, with its revenue anticipated to be $5.23 billion, down 7.7% from the previous year [9][10]

"Retailers continued to build healthy inventories, and our increased investments in promotional activity, media and marketing drove consumer takeaway across our leading brands. The operational restructuring within Hawthorne yielded significant benefits as well, enabling it to contribute positively to adjusted EBITDA during the quarter. These initial results reaffirm our confidence in this year's guidance and demonstrate continued progress toward our mid-term growth plan that includes EBITDA approaching $700 ...