Scotts Miracle-Gro Provides Outlook for Fiscal 2014; Announces Changes to Credit Facility

  Scotts Miracle-Gro Provides Outlook for Fiscal 2014; Announces Changes to
                               Credit Facility

PR Newswire

MARYSVILLE, Ohio, Dec. 13, 2013

MARYSVILLE, Ohio, Dec. 13, 2013 /PRNewswire/ -- The Scotts Miracle-Gro Company
(NYSE: SMG), the world's largest marketer of branded consumer lawn and garden
products, today provided more detail for its outlook for fiscal 2014 in
advance of its December 13^th Analyst & Investor Day.

The Company said it expects company-wide net sales to increase by
approximately 2 to 3 percent in fiscal 2014 on flat unit volume, strategic
pricing, the recent acquisition of the Tomcat consumer rodent control business
and the continued growth of its LawnService business.

An anticipated improvement in gross margin rate of approximately 100 basis
points and an increase in selling, general & administrative expenses (SG&A) of
approximately 3 to 4 percent is expected to result in adjusted earnings from
continuing operations in the range of $3.05 to $3.20 per share, an increase of
10 to 15 percent, for fiscal 2014.

Operating margin rate is expected to be in the range of 12.5 to 13 percent in
fiscal 2014. Interest expense is forecasted to be lower by $5 to $7 million
compared to fiscal 2013. The effective tax rate for the year is projected to
be in a range of 36 to 37 percent.

The Company's operating cash flow is expected to be approximately $275 million
in fiscal 2014.

"We remain confident in the strength of our brands and continue to see
commitment to the category from consumers and our retail partners," said Jim
Hagedorn, chairman and chief executive officer. "The guidance we have
outlined assumes a conservative approach to the business, a philosophy we will
continue to employ until we see a stronger macroeconomic outlook."

In addition, the Company is in the final phases of renegotiating its existing
credit facility and expects to have it completed by the end of the calendar
year. The amendment and extension will extend the facility's maturity through
December 2018, decrease pricing and relax certain restrictive covenants. In
addition, the Company announced it will exercise its call option on the $200
million of 7.25 percent senior notes issued in 2010. The Company expects the
combination of these actions will reduce its overall cost of debt by
approximately 60 basis points.

Company Hosts Analyst & Investor Day Meeting Today, Dec. 13

The Company is holding its Analyst & Investor Day today at 9:30 a.m. Eastern
Time, with a live webcast with presentation slides available on the investor
relations section of the Company's website at http://investor.scotts.com. The
replay of the webcast and accompanying presentation slides will be available
on the Company's website following the meeting.

The meeting will also be accessible with a live conference call. To
participate in the conference call, please call 888.299.7209 conference code:
3860281. 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 site for at least 12 months.

About ScottsMiracle-Gro

With more than $2.8 billion in worldwide sales, The Scotts Miracle-Gro Company
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;
  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.

SOURCE The Scotts Miracle-Gro Company

Website: http://www.scotts.com
Contact: Jim King, Senior Vice President, Chief Communications Officer, (937)
578-5622 or Kimberly Green, Manager of Investor Relations, (937) 367-5107
 
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