Scotts Miracle-Gro Reports Second Quarter Results; Strong Consumer Purchases in April Lead to Reaffirmed Guidance

 Scotts Miracle-Gro Reports Second Quarter Results; Strong Consumer Purchases
                     in April Lead to Reaffirmed Guidance

-- Cold March weather led to second quarter adjusted earnings per share of
$1.60

-- U.S. consumer purchases up 19 percent in the first five weeks of the third
quarter

-- Company continues to expect full-year adjusted earnings of $2.50 to $2.75
per share

PR Newswire

MARYSVILLE, Ohio, May 6, 2013

MARYSVILLE, Ohio, May 6, 2013 /PRNewswire-FirstCall/ --The Scotts Miracle-Gro
Company (NYSE: SMG), the world's leading marketer of branded consumer lawn and
garden products, today announced results for its fiscal second quarter ended
March 30, 2013.

Net sales were $1.02 billion for the quarter compared with $1.17 billion a
year ago. Adjusted income from continuing operations was $100.1 million, or
$1.60 per share, compared with $132.3 million, or $2.13 per share a year ago.
The year-over-year decline primarily was attributable to a significant delay
in the start of the lawn and garden season in nearly all North American and
European markets due to a colder than normal March.

"Although the weather presented obvious challenges in March, the resilience of
the lawn and garden category and the strength of our brands became evident as
soon as the season broke at the beginning of April," said Jim Hagedorn,
chairman and chief executive officer. "Consumer purchases of our products in
the U.S., which were down more than 25 percent on a fiscal year-to-date basis
entering April, are down 9 percent through May 5 after five consecutive weeks
of strong year-over-year growth.

"Consumer purchases for the first five weeks of the fiscal third quarter are
up 19 percent, led by a 54 percent increase in consumer purchases of lawn
fertilizer during that time. Our retail partners and consumers remain highly
engaged and our team continues to execute the plans we put in place, giving us
continued confidence in the earnings guidance we established entering the
year."

Second Quarter Details

Global Consumer segment sales declined 13 percent to $974.6 million in the
second quarter compared to a year ago. Excluding the impact of foreign
exchange rates, sales declined 12 percent. Sales in the U.S. declined 12
percent during the quarter, primarily driven by lower sales across all product
categories due to a delay in the start of the season. Outside the U.S., sales
declined 15 percent, excluding the impact of foreign exchange rates, as
weather also caused season delays in both Canada and across Europe. Operating
income for the Global Consumer segment was $220.1 million, compared to $275.2
million a year ago.

Scotts LawnService sales declined 8 percent to $32.9 million in the second
quarter, compared to $35.9 million during the same quarter a year ago,
primarily due to a delay in the start of the spring season. Operating loss
for the segment increased $4.1 million during the quarter compared to a year
ago.

For the quarter, the company-wide adjusted gross margin rate was 37.2 percent,
compared with 39.5 percent during the same quarter a year ago. The Company had
expected gross margin to decline modestly during the quarter, though the
actual decline was more than expected due primarily to lower sales volume that
resulted in reduced leverage of fixed manufacturing and warehousing costs.
Anticipated increases in material costs were offset by price increases.

Selling, general and administrative expenses (SG&A) in the second quarter
decreased $29.9 million to $207.0 million, compared to $236.9 million a year
ago. The year-over-year savings were driven by expense reduction initiatives
throughout the organization.

Adjusted income from continuing operations was $100.1 million, or $1.60 per
share, compared to $132.3 million, or $2.13 per share, for the same period a
year ago. Those results exclude charges related to product registration and
recall matters which occurred in fiscal 2012. They also exclude impairment,
restructuring and other charges. Including those items, reported income from
continuing operations for the second quarter was $99.9 million, or $1.60 per
share, compared with $126.5 million, or $2.04 per share, a year ago.

Year-to-Date Details

Net sales for the six months were $1.23 billion, a decrease of 11 percent from
net sales of $1.37 billion a year ago. The change in sales was attributable
to lower unit volume in the Global Consumer segment, which was partially
offset by increased volume in the Scotts LawnService segment during the first
quarter.

The adjusted company-wide gross margin rate for the first six months of fiscal
2013 was 33.5 percent, compared to 35.6 percent a year ago. SG&A decreased
$28.0 million to $331.5 million for the six months of fiscal 2013.

Adjusted income from continuing operations for the first six months of fiscal
2013 was $31.6 million, or $0.51 per share, compared to $60.8 million, $0.98
per share a year ago. Those results exclude charges related to product
registration and recall matters which occurred in fiscal 2012. They also
exclude impairment, restructuring and other charges. Including those items,
reported income from continuing operations for the first six months was $31.6
million, or $0.51 per share, compared with $53.4 million, or $0.86 per share,
during the same period a year ago.

Full-Year Outlook Reaffirmed

The Company reaffirmed its expectations for fiscal 2013 adjusted earnings per
share from continuing operations in the range of $2.50 to $2.75. In addition
to improving sales trends during the second half of the year, the company
continues to expect strong improvement in gross margin during that period.
Cost-out initiatives remain on schedule, and price increases should also be
accretive to the gross margin rate due to continued strong management of
commodity costs.

As it relates to SG&A, the Company continues to expect full-year savings of 2%
to 3% due to expense control programs related to its Project Max initiative.
The Company also reiterated expectations for operating cash flow of at least
$250 million in fiscal 2013 due to strong operating results, improvements in
working capital and one-time tax benefits.

"The positive momentum in consumer purchases in the past five weeks, favorable
weather forecasts and progress on cost-out efforts give us confidence in our
ability to drive strong improvement in gross margin, especially in the third
quarter, which is critical to meeting our full-year guidance," said Larry
Hilsheimer, chief financial officer. "As the profitability of the business is
expected to improve significantly in the second half of the year, we also
expect rapid improvement in our leverage ratio. While our leverage ratio was
at 3.2 times at the end of the second quarter, we continue to believe it will
drop to 2.5 times or lower by year end. We remain committed to using our
strong cash flow and financial flexibility to begin funding
shareholder-friendly actions in the quarters ahead."

Conference Call and Webcast Scheduled for 4:30 p.m. ET Today, May 6

The Company will discuss its results during a webcast and conference call
today at 4:30 p.m. ET. Conference call participants should call 1-866-682-3515
(Conference ID: 35428463). The live webcast is available at
http://investor.scotts.com. An archive of the webcast, as well as
accompanying financial information regarding any non-GAAP financial measures
discussed by the Company during the call, will be available on the website for
at least 12 months.

About ScottsMiracle-Gro

With more than $2.8 billion in worldwide sales, The Scotts Miracle-Gro
Company, through its wholly-owned subsidiary, The Scotts Company LLC, is the
world's largest marketer of branded consumer products for lawn and garden
care.The Company's brands are the most recognized in the industry.In the
U.S., the Company's Scotts®, Miracle-Gro® and Ortho® brands are market-leading
in their categories, as is the consumer Roundup® brand, which is marketed in
North America and most of Europe exclusively by Scotts and owned by
Monsanto.In the U.S., we operate Scotts LawnService®, the second largest
residential lawn care service business. In Europe, the Company's brands
include Weedol®, Pathclear®, Evergreen®, Levington®, Miracle-Gro®, KB®,
Fertiligène® and Substral®. For additional information, visit us at
www.scotts.com.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this press release, other than statements of
historical fact, which address activities, events and developments that the
Company expects or anticipates will or may occur in the future, including, but
not limited to, information regarding the future economic performance and
financial condition of the Company, the plans and objectives of the Company's
management, and the Company's assumptions regarding such performance and plans
are "forward-looking statements" within the meaning of the U.S. federal
securities laws that are subject to risks and uncertainties. These
forward-looking statements generally can be identified as statements that
include phrases such as "guidance," "outlook," "projected," "believe,"
"target," "predict," "estimate," "forecast," "strategy," "may," "goal,"
"expect," "anticipate," "intend," "plan," "foresee," "likely," "will,"
"should" or other similar words or phrases. Actual results could differ
materially from the forward-looking information in this release due to a
variety of factors, including, but not limited to:

  oCompliance with environmental and other public health regulations could
    increase the Company's costs of doing business or limit the Company's
    ability to market all of its products;
  oIncreases in the prices of raw materials and fuel costs could adversely
    affect the Company's results of operations;
  oThe highly competitive nature of the Company's markets could adversely
    affect its ability to maintain or grow revenues;
  oBecause of the concentration of the Company's sales to a small number of
    retail customers, the loss of one or more of, or significant reduction in
    orders from, its top customers could adversely affect the Company's
    financial results;
  oAdverse weather conditions could adversely impact financial results;
  oThe Company's international operations make the Company susceptible to
    fluctuations in currency exchange rates and to other costs and risks
    associated with international regulation;
  oThe Company may not be able to adequately protect its intellectual
    property and other proprietary rights that are material to the Company's
    business;
  oThe Company depends on key personnel and may not be able to retain those
    employees or recruit additional qualified personnel;
  oIf Monsanto Company were to terminate the Marketing Agreement for consumer
    Roundup products, the Company would lose a substantial source of future
    earnings and overhead expense absorption;
  oHagedorn Partnership, L.P. beneficially owns approximately 30% of the
    Company's common shares and can significantly influence decisions that
    require the approval of shareholders;
  oThe Company may pursue acquisitions, dispositions, investments, dividends,
    share repurchases and/or other corporate transactions that it believes
    will maximize equity returns of its shareholders but may involve risks.

Additional detailed information concerning a number of the important factors
that could cause actual results to differ materially from the forward-looking
information contained in this release is readily available in the Company's
publicly filed quarterly, annual and other reports. The Company disclaims any
obligation to update developments of these risk factors or to announce
publicly any revision to any of the forward-looking statements contained in
this release, or to make corrections to reflect future events or developments.



THE SCOTTS MIRACLE GRO-COMPANY
Condensed Consolidated Statement of Operations
(In millions, except for per common share data)
(Unaudited)
                           Three Months Ended                 Six Months Ended
                Footnotes  March30,    March31,    %        March30,    March31,    %
                           2013         2012         Change   2013         2012         Change
Net sales                  $ 1,019.6    $ 1,170.4    (13)%    $ 1,225.4    $ 1,370.0    (11)%
Cost of sales              640.8        708.5                 815.5        882.5
Cost of sales
- impairment,              0.1          —                     0.1          —
restructuring
and other
Cost of sales
- product
registration               —            0.2                   —            0.2
and recall
matters
Gross profit               378.7        461.7        (18)%    409.8        487.3        (16)%
% of sales                 37.1      %  39.4      %           33.4      %  35.6      %
Operating
expenses:
Selling,
general and                207.0        236.9        (13)%    331.5        359.5        (8)%
administrative
Impairment,
restructuring              0.1          5.1                   (0.3)        7.4
and other
Product
registration               —            3.3                   —            3.6
and recall
matters
Other income,              (1.5)        (0.7)                 (2.6)        (1.3)
net
Income from                173.1        217.1        (20)%    81.2         118.1        (31)%
operations
% of sales                 16.9      %  18.6      %           6.5       %  8.6       %
Interest                   17.9         17.9                  31.1         33.2
expense
Income from
continuing
operations                 155.2        199.2        (22)%    50.1         84.9         (41)%
before income
taxes
Income tax
expense from               55.3         72.7                  18.5         31.5
continuing
operations
Income from
continuing                 99.9         126.5        (21)%    31.6         53.4         (41)%
operations
Income (loss)
from
discontinued    (3)        0.1          0.7                   0.7          (0.1)
operations,
net of tax
Net Income                 $ 100.0      $ 127.2               $ 32.3       $ 53.3
Basic income
per common      (1)
share:
Income from
continuing                 $ 1.62       $ 2.08       (22)%    $ 0.51       $ 0.88       (42)%
operations
Income from
discontinued               —            0.01                  0.01         —
operations
Net Income                 $ 1.62       $ 2.09                $ 0.52       $ 0.88
Diluted income
per common      (2)
share:
 Income
from                       $ 1.60       $ 2.04       (22)%    $ 0.51       $ 0.86       (41)%
continuing
operations
 Income
from                       —            0.01                  0.01         —
discontinued
operations
Net income                 $ 1.60       $ 2.05                $ 0.52       $ 0.86
Common shares
used in basic
income per                 61.6         60.9         1     %  61.5         60.6         1     %
share
calculation
Common shares
and potential
common shares
used in                    62.4         62.0         1     %  62.3         61.7         1     %
diluted income
per share
calculation
Non-GAAP
results from
continuing
operations:
Adjusted
income from     (4)        $ 100.1      $ 132.3      (24)%    $ 31.6       $ 60.8       (48)%
continuing
operations
Adjusted
diluted income
per share from  (2) (4)    $ 1.60       $ 2.13       (26)%    $ 0.51       $ 0.98       (49)%
continuing
operations
Adjusted        (3) (4)    $ 189.3      $ 236.7      (20)%    $ 114.2      $ 152.1      (25)%
EBITDA
Note: See accompanying
footnotes on page 9.





THE SCOTTS MIRACLE-GRO COMPANY
Net Sales and Income from Continuing Operations before Income Taxes by Segment
(In millions)
(Unaudited)
The Company is divided into the following reportable segments: Global Consumer
and Scotts LawnService®. This division of reportable segments is consistent
with how the segments report to and are managed by the chief operating
decision maker of the Company.
Segment performance is evaluated based on several factors, including income
from continuing operations before amortization, product registration and
recall costs, impairment, restructuring and other charges, which is not a
generally accepted accounting principle ("GAAP") measure. Senior management of
the Company uses this measure of operating profit to evaluate segment
performance because we believe this measure is the most indicative of
performance trends and the overall earnings potential of each segment.
Corporate & Other consists of revenues and expenses associated with the
Company's supply agreements with Israel Chemicals Ltd. 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. Corporate & Other assets primarily include deferred
financing and debt issuance costs and corporate intangible assets, as well as
deferred tax asset



               Three Months Ended              Six Months Ended
               March30,   March31,   %       March30,   March31,   %
               2013        2012        Change  2013        2012        Change
Net Sales:
Global         $ 974.6     $ 1,119.6   (13)%   $ 1,127.8   $ 1,268.7   (11)%
Consumer
Scotts         32.9        35.9        (8)%    77.7        73.5        6     %
LawnService®
Segment total  1,007.5     1,155.5     (13)%   1,205.5     1,342.2     (10)%
Corporate &    12.1        14.9                19.9        27.8
Other
Consolidated   $ 1,019.6   $ 1,170.4   (13)%   $ 1,225.4   $ 1,370.0   (11)%
Income from
Continuing
Operations
before Income
Taxes:
Global         $ 220.1     $ 275.2     (20)%   $ 151.4     $ 205.7     (26)%
Consumer
Scotts         (17.0)      (12.9)      (32)%   (17.9)      (17.5)      (2)%
LawnService®
Segment total  203.1       262.3               133.5       188.2
Corporate &    (27.3)      (34.6)              (47.5)      (54.3)
Other
Intangible
asset          (2.5)       (2.0)               (5.0)       (4.5)
amortization
Product
registration   —           (3.5)               —           (3.8)
and recall
matters
Impairment,
restructuring  (0.2)       (5.1)               0.2         (7.5)
and other
Interest       (17.9)      (17.9)              (31.1)      (33.2)
expense
Consolidated   $ 155.2     $ 199.2     (22)%   $ 50.1      $ 84.9      (41)%



THE SCOTTS MIRACLE-GRO COMPANY
Condensed Consolidated Balance Sheets
(In millions)
                                       March 30,    March 31,    September 30,
                                       2013         2012         2012
ASSETS                                 (Unaudited)  (Unaudited)
Current assets:
Cash and cash equivalents              $  99.1      $  122.4     $  131.9
Accounts receivable, net               966.6        1,133.2      330.9
Inventories                            613.0        601.6        414.9
Prepaids and other current assets      158.0        169.4        122.3
Total current assets                   1,836.7      2,026.6      1,000.0
Property, plant and equipment, net     417.8        387.8        427.4
Goodwill                               314.5        309.1        309.4
Intangible assets, net                 299.2        311.8        307.1
Other assets                           28.7         34.4         30.5
Total assets                           $  2,896.9   $  3,069.7   $  2,074.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of debt                $  208.0     $  227.8     $  1.5
Accounts payable                       327.5        346.1        152.3
Other current liabilities              352.7        438.5        279.8
Total current liabilities              888.2        1,012.4      433.6
Long-term debt                         1,163.0      1,241.2      781.1
Other liabilities                      238.8        226.4        257.8
Total liabilities                      2,290.0      2,480.0      1,472.5
Shareholders' equity                   606.9        589.7        601.9
Total liabilities and shareholders'    $  2,896.9   $  3,069.7   $  2,074.4
equity







THE SCOTTS MIRACLE-GRO COMPANY
Reconciliation of Non- GAAP Disclosure Items (4)
(In millions, except per common share data)
(Unaudited)
               Three Months Ended March 30, 2013      Three Months Ended March 31, 2012
               As          Impairment,                            Product          Impairment,
                           Restructuring Adjusted     As Reported Registrationand Restructuring Adjusted
               Reported   and Other                              Recall Matters   and Other
Net sales      $ 1,019.6   $   —         $ 1,019.6    $ 1,170.4   $    —           $   —         $ 1,170.4
Cost of sales  640.8       —             640.8        708.5       —                —             708.5
Cost of sales
- impairment,  0.1         0.1           —            —           —                —             —
restructuring
and other
Cost of sales
- product
registration   —           —             —            0.2         0.2              —             —
and recall
matters
Gross profit   378.7       (0.1)         378.8        461.7       (0.2)            —             461.9
% of sales     37.1      %               37.2      %  39.4      %                                39.5      %
Operating
expenses:
Selling,
general and    207.0       —             207.0        236.9       —                —             236.9
administrative
Impairment,
restructuring  0.1         0.1           —            5.1         —                5.1           —
and other
Product
registration   —           —             —            3.3         3.3              —             —
and recall
matters
Other income,  (1.5)       —             (1.5)        (0.7)       —                —             (0.7)
net
Income from    173.1       (0.2)         173.3        217.1       (3.5)            (5.1)         225.7
operations
% of sales     16.9      %               17.0      %  18.6      %                                19.3      %
Interest       17.9        —             17.9         17.9        —                —             17.9
expense
Income from
continuing
operations     155.2       (0.2)         155.4        199.2       (3.5)            (5.1)         207.8
before income
taxes
Income tax
expense from   55.3        —             55.3         72.7        (0.6)            (2.2)         75.5
continuing
operations
Income from
continuing     $ 99.9      $   (0.2)     $ 100.1      $ 126.5     $    (2.9)       $   (2.9)     $ 132.3
operations
Basic income
per share from $ 1.62      $   —         $ 1.62       $ 2.08      $    (0.05)      $   (0.05)    $ 2.17
continuing
operations
Diluted income
per share from $ 1.60      $   —         $ 1.60       $ 2.04      $    (0.05)      $   (0.05)    $ 2.13
continuing
operations
Common shares
used in basic
income per     61.6        61.6          61.6         60.9        60.9             60.9          60.9
share
calculation
Common shares
and potential
common shares
used in        62.4        62.4          62.4         62.0        62.0             62.0          62.0
diluted income
per share
calculation
Calculation of
Adjusted
EBITDA:
Income from
continuing     $ 99.9                                 $ 126.5
operations
Income tax
expense from   55.3                                   72.7
continuing
operations
Income from
discontinued   0.1                                    0.7
operations,
net of tax
Income tax
expense
(benefit) from (0.1)                                  0.4
discontinued
operations
Interest       17.9                                   17.9
expense
Depreciation   13.8                                   12.5
Amortization
(including     2.7                                    2.2
Roundup)
Impairment,
restructuring  —                                      4.7
and other
Mark-to-market
adjustments on (0.3)                                  (0.9)
derivatives
Adjusted       $ 189.3                                $ 236.7
EBITDA
Note: See accompanying footnotes on page
9.





THE SCOTTS MIRACLE-GRO COMPANY
Reconciliation of Non- GAAP Disclosure Items (4)
(In millions, except per common share data)
(Unaudited)
               Six Months Ended March 30, 2013        Six Months Ended March 31, 2012
                           Impairment,                            Product          Impairment,
               As Reported Restructuring Adjusted     As Reported Registrationand Restructuring Adjusted
                           and Other                              Recall Matters   and Other
Net sales      $ 1,225.4   $     —       $ 1,225.4    $ 1,370.0   $    —           $   —         $ 1,370.0
Cost of sales  815.5       —             815.5        882.5       —                —             882.5
Cost of sales
- impairment,  0.1         0.1           —            —           —                —             —
restructuring
and other
Cost of sales
- product
registration   —           —             —            0.2         0.2              —             —
and recall
matters
Gross profit   409.8       (0.1)         409.9        487.3       (0.2)            —             487.5
% of sales     33.4      %               33.5      %  35.6      %                                35.6      %
Operating
expenses:
Selling,
general and    331.5       —             331.5        359.5       —                —             359.5
administrative
Impairment,
restructuring  (0.3)       (0.3)         —            7.4         —                7.4           —
and other
Product
registration   —           —             —            3.6         3.6              —             —
and recall
matters
Other income,  (2.6)       —             (2.6)        (1.3)       —                —             (1.3)
net
Income from    81.2        0.2           81.0         118.1       (3.8)            (7.4)         129.3
operations
% of sales     6.5       %               6.6       %  8.6       %                                9.4       %
Interest       31.1        —             31.1         33.2        —                —             33.2
expense
Income from
continuing
operations     50.1        0.2           49.9         84.9        (3.8)            (7.4)         96.1
before income
taxes
Income tax
expense from   18.5        0.2           18.3         31.5        (0.7)            (3.1)         35.3
continuing
operations
Income from
continuing     $ 31.6      $     —       $ 31.6       $ 53.4      $    (3.1)       $   (4.3)     $ 60.8
operations
Basic income
per share from $ 0.51      $     —       $ 0.51       $ 0.88      $    (0.05)      $   (0.07)    $ 1.00
continuing
operations
Diluted income
per share from $ 0.51      $     —       $ 0.51       $ 0.86      $    (0.05)      $   (0.07)    $ 0.98
continuing
operations
Common shares
used in basic
income per     61.5        61.5          61.5         60.6        60.6             60.6          60.6
share
calculation
Common shares
and potential
common shares
used in        62.3        62.3          62.3         61.7        61.7             61.7          61.7
diluted income
per share
calculation
Calculation of
Adjusted
EBITDA:
Income from
continuing     $ 31.6                                 $ 53.4
operations
Income tax
expense from   18.5                                   31.5
continuing
operations
Income (loss)
from
discontinued   0.7                                    (0.1)
operations,
net of tax
Income tax
expense
(benefit) from 0.2                                    —
discontinued
 operations
Interest       31.1                                   33.2
expense
Depreciation   27.4                                   25.4
Amortization
(including     5.4                                    4.9
Roundup)
Impairment,
restructuring  (0.4)                                  4.7
and other
Mark-to-market
adjustments on (0.3)                                  (0.9)
derivatives
Adjusted       $ 114.2                                $ 152.1
EBITDA
Note: See accompanying
footnotes on page 9.





THE SCOTTS MIRACLE-GRO COMPANY
Footnotes to Preceding Financial Statements
    Basic income per common share amounts are calculated by dividing income
(1) from continuing operations, income from discontinued operations and net
    income by the weighted average number of common shares outstanding during
    the period.
    Diluted income per common share amounts are calculated by dividing income
    from continuing operations, income from discontinued operations and net by
(2) the weighted average number of common shares, plus all potential dilutive
    securities (common stock options, stock appreciation rights, performance
    shares, performance units, restricted stock and restricted stock units)
    outstanding during the period.
    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
(3) its fourth quarter of fiscal 2012, the Company classified its results of
    operations for all periods presented to reflect the professional seed
    business as a discontinued operation.
    The Reconciliation of Non-GAAP Disclosure Items includes the following
    non-GAAP financial measures:

    Adjusted income from continuing operations and adjusted diluted income per
(4) 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.
    Adjusted EBITDA - This measure is calculated as net income before
    interest, taxes, depreciation and amortization as well as certain other
    items such as the impact of the cumulative effect of changes in
    accounting, costs associated with debt refinancing and other
    non-recurring, non-cash items affecting net income. We believe this
    measure provides additional information for determining our ability to
    meet debt service requirements. The presentation of adjusted EBITDA herein
    is intended to be consistent with the calculation of that measure as
    required by our borrowing arrangements, and used to calculate a leverage
    ratio (maximum of 3.50 at March 30, 2013) and an interest coverage ratio
    (minimum of 3.50 for the twelve months ended March 30, 2013). The Company
    was in compliance with the terms of all debt covenants at March 30, 2013.
    The Company reports its financial results in accordance with U.S.
    generally accepted accounting principles (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.



SOURCE The Scotts Miracle-Gro Company

Website: http://www.scotts.com
Contact: Jim King, Senior Vice President, Chief Communications Officer, (937)
578-5622
 
Press spacebar to pause and continue. Press esc to stop.