Scotts Miracle-Gro Co 8-K, filed Feb 20, 2026
Scotts Miracle-Gro Co (SMG)
8-K
2026-02-20
For: 2026-02-20
View Original
Added on
April 04, 2026
About this 8-K
Scotts Miracle-Gro Co filed this 8-K on February 20, 2026.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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): February 20, 2026
_________________________________
The Scotts Miracle-Gro Co mpany
(Exact name of registrant as specified in its charter)
_________________________________
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||
| of incorporation or organization) | File Number) | Identification No.) | ||||||
| (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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (§240.12b of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
During the first quarter of fiscal 2026, the Company determined that the Hawthorne business met the criteria to be classified as held for sale. The Company determined this represents a strategic shift, and therefore, the Company classified its results of operations to reflect the Hawthorne business as a discontinued operation for all periods presented in its Quarterly Report on Form 10-Q for the period ended December 27, 2025, which was filed on February 4, 2026.
The Company is furnishing the information within this Current Report on Form 8-K to provide additional historical financial results reflecting the Hawthorne business as a discontinued operation. Attached hereto as Exhibit 99.1 are the following unaudited condensed consolidated selected financial data of the Company:
•Revised reported GAAP quarterly and annual results for fiscal 2024 and 2025;
•Revised adjusted non-GAAP financial measures for the quarterly and annual periods comprising fiscal 2024 and 2025; and
•Revised Segment results for the quarterly and annual periods comprising fiscal 2024 and 2025.
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 years ended September 30, 2025 and 2024, the Company’s Quarterly Reports on Form 10-Q for the fiscal quarters ended June 28, 2025, March 29, 2025, December 28, 2024, June 29, 2024, March 30, 2024 and December 30, 2023, 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 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
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: February 20, 2026 | By: | /s/ MARK J. SCHEIWER | ||||||
| Printed Name: Mark J. Scheiwer | ||||||||
| Title: Executive Vice President, Chief Financial Officer & Chief Accounting Officer | ||||||||
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated February 20, 2026
The Scotts Miracle-Gro Company
| Exhibit No. | Description | ||||
| Unaudited Condensed, Consolidated Selected Financial Data | |||||
Exhibit 99.1
| THE SCOTTS MIRACLE-GRO COMPANY | |||||
| INDEX TO UNAUDITED, CONDENSED CONSOLIDATED SELECTED FINANCIAL DATA | |||||
| PAGE | |||||
| Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items for the: | |||||
1
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Twelve Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 3,413.1 | $ | 3,255.8 | ||||||||||||||||||||||||||||
| Cost of sales | 2,348.6 | 2,226.1 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 20.3 | 10.1 | ||||||||||||||||||||||||||||||
| Gross margin | 1,044.2 | 1,019.6 | $ | (10.1) | $ | 1,029.7 | ||||||||||||||||||||||||||
| % of sales | 30.6 | % | 31.3 | % | 31.6 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 603.4 | 563.8 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 63.4 | 35.2 | ||||||||||||||||||||||||||||||
| Other expense, net | 18.8 | 18.6 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 358.6 | 402.0 | (45.3) | 447.3 | ||||||||||||||||||||||||||||
| % of sales | 10.5 | % | 12.3 | % | 13.7 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 2.8 | 2.8 | 3.8 | (1.0) | ||||||||||||||||||||||||||||
| Interest expense | 128.8 | 129.0 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 5.3 | 5.3 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 221.7 | 264.9 | (49.2) | 314.1 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 76.5 | 82.8 | (8.3) | 91.1 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 145.2 | 182.1 | (40.9) | 223.0 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (36.9) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 145.2 | $ | 145.2 | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.52 | $ | 3.16 | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.64) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | 2.52 | $ | 2.52 | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.47 | $ | 3.10 | (0.70) | 3.80 | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.63) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 2.47 | $ | 2.47 | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 57.6 | 57.6 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 58.7 | 58.7 | 58.7 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
2
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 387.4 | $ | 340.1 | ||||||||||||||||||||||||||||
| Cost of sales | 359.7 | 322.3 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 4.2 | 1.5 | ||||||||||||||||||||||||||||||
| Gross margin | 23.5 | 16.3 | $ | (1.5) | $ | 17.7 | ||||||||||||||||||||||||||
| % of sales | 6.1 | % | 4.8 | % | 5.2 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 136.9 | 127.7 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 33.8 | 9.3 | ||||||||||||||||||||||||||||||
| Other expense, net | 2.9 | 3.1 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | (150.1) | (123.8) | (10.8) | (113.0) | ||||||||||||||||||||||||||||
| % of sales | (38.7) | % | (36.4) | % | (33.2) | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 12.3 | 12.3 | 3.8 | 8.5 | ||||||||||||||||||||||||||||
| Interest expense | 26.8 | 26.8 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.4 | 1.3 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | (190.6) | (164.2) | (14.6) | (149.6) | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (38.8) | (36.9) | (1.2) | (35.7) | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (151.8) | (127.3) | (13.4) | (113.9) | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (24.5) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (151.8) | $ | (151.8) | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (2.63) | $ | (2.21) | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.42) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | (2.63) | $ | (2.63) | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (2.63) | $ | (2.21) | (0.24) | (1.97) | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.42) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (2.63) | $ | (2.63) | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 57.7 | 57.7 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 57.7 | 57.7 | 57.7 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
3
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended June 28, 2025 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 1,188.0 | $ | 1,159.3 | ||||||||||||||||||||||||||||
| Cost of sales | 806.3 | 784.6 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 3.7 | 2.0 | ||||||||||||||||||||||||||||||
| Gross margin | 378.0 | 372.7 | $ | (2.0) | $ | 374.6 | ||||||||||||||||||||||||||
| % of sales | 31.8 | % | 32.1 | % | 32.3 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 153.4 | 144.8 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 2.4 | (1.0) | ||||||||||||||||||||||||||||||
| Other expense, net | 7.2 | 7.1 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 215.0 | 221.8 | (0.9) | 222.7 | ||||||||||||||||||||||||||||
| % of sales | 18.1 | % | 19.1 | % | 19.2 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | (25.3) | (25.3) | — | (25.3) | ||||||||||||||||||||||||||||
| Interest expense | 31.8 | 31.8 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.2 | 1.3 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 207.3 | 214.0 | (0.9) | 214.9 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 58.2 | 59.3 | (2.2) | 61.5 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 149.1 | 154.7 | 1.3 | 153.4 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (5.6) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 149.1 | $ | 149.1 | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.58 | $ | 2.68 | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.10) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | 2.58 | $ | 2.58 | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.54 | $ | 2.64 | 0.02 | 2.62 | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.10) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 2.54 | $ | 2.54 | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 57.7 | 57.7 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 58.6 | 58.6 | 58.6 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
4
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 29, 2025 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 1,421.0 | $ | 1,389.7 | ||||||||||||||||||||||||||||
| Cost of sales | 865.8 | 842.3 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 7.3 | 5.3 | ||||||||||||||||||||||||||||||
| Gross margin | 547.9 | 542.1 | $ | (5.3) | $ | 547.4 | ||||||||||||||||||||||||||
| % of sales | 38.6 | % | 39.0 | % | 39.4 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 188.3 | 177.8 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 10.7 | 10.4 | ||||||||||||||||||||||||||||||
| Other expense, net | 4.2 | 4.2 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 344.7 | 349.7 | (15.7) | 365.4 | ||||||||||||||||||||||||||||
| % of sales | 24.3 | % | 25.2 | % | 26.3 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 5.9 | 5.9 | — | 5.9 | ||||||||||||||||||||||||||||
| Interest expense | 36.6 | 36.6 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.3 | 1.2 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 300.9 | 306.0 | (15.7) | 321.6 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 83.4 | 85.3 | (2.7) | 88.0 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 217.5 | 220.7 | (12.9) | 233.7 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (3.2) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 217.5 | $ | 217.5 | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 3.78 | $ | 3.83 | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.05) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | 3.78 | $ | 3.78 | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 3.72 | $ | 3.78 | (0.22) | 4.00 | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.06) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 3.72 | $ | 3.72 | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 57.6 | 57.6 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 58.4 | 58.4 | 58.4 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
5
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended December 28, 2024 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 416.8 | $ | 366.6 | ||||||||||||||||||||||||||||
| Cost of sales | 316.9 | 276.7 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 5.1 | 1.4 | ||||||||||||||||||||||||||||||
| Gross margin | 94.8 | 88.5 | $ | (1.4) | $ | 89.9 | ||||||||||||||||||||||||||
| % of sales | 22.7 | % | 24.1 | % | 24.5 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 124.8 | 113.5 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 16.5 | 16.5 | ||||||||||||||||||||||||||||||
| Other expense, net | 4.5 | 4.3 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | (51.0) | (45.8) | (18.0) | (27.8) | ||||||||||||||||||||||||||||
| % of sales | (12.2) | % | (12.5) | % | (7.6) | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 9.9 | 9.9 | — | 9.9 | ||||||||||||||||||||||||||||
| Interest expense | 33.7 | 33.9 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.3 | 1.3 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | (95.9) | (90.9) | (18.0) | (72.9) | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (26.4) | (24.8) | (2.1) | (22.7) | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (69.5) | (66.1) | (15.9) | (50.2) | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (3.4) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (69.5) | $ | (69.5) | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (1.21) | $ | (1.15) | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.06) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | (1.21) | $ | (1.21) | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (1.21) | $ | (1.15) | (0.28) | (0.88) | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.06) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (1.21) | $ | (1.21) | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 57.3 | 57.3 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 57.3 | 57.3 | 57.3 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
6
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Twelve Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 3,552.7 | $ | 3,268.4 | ||||||||||||||||||||||||||||
| Cost of sales | 2,618.7 | 2,367.9 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 83.5 | 11.7 | ||||||||||||||||||||||||||||||
| Gross margin | 850.5 | 888.8 | $ | (11.7) | $ | 900.5 | ||||||||||||||||||||||||||
| % of sales | 23.9 | % | 27.2 | % | 27.6 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 559.0 | 507.6 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 62.8 | 70.7 | ||||||||||||||||||||||||||||||
| Other expense, net | 19.9 | 20.8 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 208.8 | 289.7 | (82.3) | 372.1 | ||||||||||||||||||||||||||||
| % of sales | 5.9 | % | 8.9 | % | 11.4 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 68.1 | 68.1 | 61.9 | 6.2 | ||||||||||||||||||||||||||||
| Interest expense | 158.8 | 157.6 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 5.5 | 5.6 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | (23.6) | 58.4 | (144.2) | 202.6 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 11.3 | 31.1 | (26.7) | 57.7 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (34.9) | 27.3 | (117.6) | 144.9 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (62.2) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (34.9) | $ | (34.9) | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (0.61) | $ | 0.48 | ||||||||||||||||||||||||||||
| Discontinued operations | — | (1.09) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | (0.61) | $ | (0.61) | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (0.61) | $ | 0.47 | (2.04) | 2.51 | ||||||||||||||||||||||||||
| Discontinued operations | — | (1.07) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (0.61) | $ | (0.60) | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 56.8 | 56.8 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 56.8 | 57.7 | 57.7 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
7
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 414.7 | $ | 336.0 | ||||||||||||||||||||||||||||
| Cost of sales | 427.5 | 357.5 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 16.8 | 7.9 | ||||||||||||||||||||||||||||||
| Gross margin | (29.6) | (29.4) | $ | (7.9) | $ | (21.5) | ||||||||||||||||||||||||||
| % of sales | (7.1) | % | (8.8) | % | (6.4) | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 117.6 | 102.6 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 68.7 | 68.7 | ||||||||||||||||||||||||||||||
| Other expense, net | 0.1 | 0.6 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | (216.0) | (201.3) | (76.6) | (124.7) | ||||||||||||||||||||||||||||
| % of sales | (52.1) | % | (59.9) | % | (37.1) | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 61.6 | 61.6 | 51.5 | 10.1 | ||||||||||||||||||||||||||||
| Interest expense | 33.1 | 32.0 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.4 | 1.4 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | (312.1) | (296.3) | (128.0) | (168.3) | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (68.1) | (66.9) | (25.4) | (41.5) | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (244.0) | (229.4) | (102.6) | (126.8) | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (14.6) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (244.0) | $ | (244.0) | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (4.29) | $ | (4.03) | ||||||||||||||||||||||||||||
| Discontinued operations | — | (0.26) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | (4.29) | $ | (4.29) | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (4.29) | $ | (4.03) | (1.80) | (2.23) | ||||||||||||||||||||||||||
| Discontinued operations | — | (0.26) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (4.29) | $ | (4.29) | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 56.9 | 56.9 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 56.9 | 56.9 | 56.9 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
8
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended June 29, 2024 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 1,202.2 | $ | 1,136.2 | ||||||||||||||||||||||||||||
| Cost of sales | 850.6 | 799.0 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | (2.5) | 2.3 | ||||||||||||||||||||||||||||||
| Gross margin | 354.1 | 334.9 | $ | (2.3) | $ | 337.2 | ||||||||||||||||||||||||||
| % of sales | 29.5 | % | 29.5 | % | 29.7 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 147.9 | 136.2 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | (0.8) | 0.4 | ||||||||||||||||||||||||||||||
| Other expense, net | 6.9 | 7.2 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 200.1 | 191.1 | (2.8) | 193.9 | ||||||||||||||||||||||||||||
| % of sales | 16.6 | % | 16.8 | % | 17.1 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | (23.0) | (23.0) | — | (23.0) | ||||||||||||||||||||||||||||
| Interest expense | 38.8 | 38.7 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.3 | 1.4 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 183.0 | 174.0 | (2.8) | 176.8 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 50.9 | 48.7 | 3.6 | 45.1 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 132.1 | 125.3 | (6.4) | 131.7 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | 6.8 | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 132.1 | $ | 132.1 | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.33 | $ | 2.21 | ||||||||||||||||||||||||||||
| Discontinued operations | — | 0.12 | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | 2.33 | $ | 2.33 | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.28 | $ | 2.16 | (0.11) | 2.27 | ||||||||||||||||||||||||||
| Discontinued operations | — | 0.12 | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 2.28 | $ | 2.28 | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 56.8 | 56.8 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 58.0 | 58.0 | 58.0 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
9
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 30, 2024 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 1,525.4 | $ | 1,462.3 | ||||||||||||||||||||||||||||
| Cost of sales | 986.8 | 930.3 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | 74.9 | (0.5) | ||||||||||||||||||||||||||||||
| Gross margin | 463.7 | 532.5 | $ | 0.5 | $ | 532.0 | ||||||||||||||||||||||||||
| % of sales | 30.4 | % | 36.4 | % | 36.4 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 178.7 | 167.9 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | 2.1 | (0.2) | ||||||||||||||||||||||||||||||
| Other expense, net | 10.8 | 10.8 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | 272.1 | 354.0 | 0.8 | 353.2 | ||||||||||||||||||||||||||||
| % of sales | 17.8 | % | 24.2 | % | 24.2 | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 7.0 | 7.0 | — | 7.0 | ||||||||||||||||||||||||||||
| Interest expense | 44.1 | 44.0 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.2 | 1.3 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 219.8 | 301.7 | 0.8 | 300.9 | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | 62.3 | 85.0 | (0.7) | 85.6 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 157.5 | 216.7 | 1.5 | 215.3 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (59.2) | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 157.5 | $ | 157.5 | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.77 | $ | 3.82 | ||||||||||||||||||||||||||||
| Discontinued operations | — | (1.05) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | 2.77 | $ | 2.77 | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | 2.74 | $ | 3.78 | 0.03 | 3.75 | ||||||||||||||||||||||||||
| Discontinued operations | — | (1.04) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 2.74 | $ | 2.74 | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 56.8 | 56.8 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 57.4 | 57.4 | 57.4 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
10
THE SCOTTS MIRACLE-GRO COMPANY
Revised Results of Operations and Reconciliation of Non-GAAP Disclosure Items (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended December 30, 2023 | ||||||||||||||||||||||||||||||||
| Footnotes | Previously Reported (GAAP) (1) | Revised Reported (GAAP) (2) | Impairment, Restructuring and Other | Adjusted (Non- GAAP) | ||||||||||||||||||||||||||||
| Net sales | $ | 410.4 | $ | 333.9 | ||||||||||||||||||||||||||||
| Cost of sales | 354.0 | 281.2 | ||||||||||||||||||||||||||||||
| Cost of sales—impairment, restructuring and other | (5.8) | 2.0 | ||||||||||||||||||||||||||||||
| Gross margin | 62.2 | 50.7 | $ | (2.0) | $ | 52.7 | ||||||||||||||||||||||||||
| % of sales | 15.2 | % | 15.2 | % | 15.8 | % | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 114.8 | 100.9 | ||||||||||||||||||||||||||||||
| Impairment, restructuring and other | (7.1) | 1.8 | ||||||||||||||||||||||||||||||
| Other expense, net | 1.8 | 2.1 | ||||||||||||||||||||||||||||||
| Income (loss) from operations | (47.3) | (54.1) | (3.7) | (50.3) | ||||||||||||||||||||||||||||
| % of sales | (11.5) | % | (16.2) | % | (15.1) | % | ||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 22.5 | 22.5 | 10.4 | 12.1 | ||||||||||||||||||||||||||||
| Interest expense | 42.8 | 42.8 | ||||||||||||||||||||||||||||||
| Other non-operating expense, net | 1.6 | 1.6 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | (114.2) | (121.0) | (14.2) | (106.8) | ||||||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (33.7) | (35.7) | (4.2) | (31.5) | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (80.5) | (85.3) | (10.0) | (75.3) | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | 4.8 | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (80.5) | $ | (80.5) | ||||||||||||||||||||||||||||
| Basic net income (loss) per common share: | (3) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (1.42) | $ | (1.50) | ||||||||||||||||||||||||||||
| Discontinued operations | — | 0.08 | ||||||||||||||||||||||||||||||
| Basic net income (loss) per common share | $ | (1.42) | $ | (1.42) | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share: | (4) | |||||||||||||||||||||||||||||||
| Continuing operations | $ | (1.42) | $ | (1.50) | (0.17) | (1.33) | ||||||||||||||||||||||||||
| Discontinued operations | — | 0.08 | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (1.42) | $ | (1.42) | ||||||||||||||||||||||||||||
| Common shares used in basic net income (loss) per share calculation | 56.7 | 56.7 | ||||||||||||||||||||||||||||||
| Common shares and potential common shares used in diluted net income (loss) per share calculation | (4) (5) | 56.7 | 56.7 | 56.7 | ||||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
11
THE SCOTTS MIRACLE-GRO COMPANY
Summary of Revised Non-GAAP Disclosure Items (2) (5)
(In millions, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 28, 2024 | March 29, 2025 | June 28, 2025 | September 30, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||
| Summary of Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||||||
| Adjusted gross margin | $ | 89.9 | $ | 547.4 | $ | 374.6 | $ | 17.7 | $ | 1,029.7 | ||||||||||||||||||||||
| Adjusted gross margin as a % of sales | 24.5 | % | 39.4 | % | 32.3 | % | 5.2 | % | 31.6 | % | ||||||||||||||||||||||
| Adjusted income (loss) from operations | (27.8) | 365.4 | 222.7 | (113.0) | 447.3 | |||||||||||||||||||||||||||
| Adjusted income (loss) from operations as a % of sales | (7.6) | % | 26.3 | % | 19.2 | % | (33.2) | % | 13.7 | % | ||||||||||||||||||||||
| Adjusted equity in income (loss) of unconsolidated affiliates | (9.9) | (5.9) | 25.3 | (8.5) | 1.0 | |||||||||||||||||||||||||||
| Adjusted income (loss) from continuing operations before income taxes | (72.9) | 321.6 | 214.9 | (149.6) | 314.1 | |||||||||||||||||||||||||||
| Adjusted income tax expense (benefit) from continuing operations | (22.7) | 88.0 | 61.5 | (35.7) | 91.1 | |||||||||||||||||||||||||||
| Adjusted net income (loss) from continuing operations | (50.2) | 233.7 | 153.4 | (113.9) | 223.0 | |||||||||||||||||||||||||||
| Adjusted diluted net income (loss) per common share from continuing operations | (0.88) | 4.00 | 2.62 | (1.97) | 3.80 | |||||||||||||||||||||||||||
| Adjusted EBITDA | 0.9 | 401.6 | 253.5 | (86.1) | 569.7 | |||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 30, 2023 | March 30, 2024 | June 29, 2024 | September 30, 2024 | September 30, 2024 | ||||||||||||||||||||||||||||
| Summary of Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||||||
| Adjusted gross margin | $ | 52.7 | $ | 532.0 | $ | 337.2 | $ | (21.5) | $ | 900.5 | ||||||||||||||||||||||
| Adjusted gross margin as a % of sales | 15.8 | % | 36.4 | % | 29.7 | % | (6.4) | % | 27.6 | % | ||||||||||||||||||||||
| Adjusted income (loss) from operations | (50.3) | 353.2 | 193.9 | (124.7) | 372.1 | |||||||||||||||||||||||||||
| Adjusted income (loss) from operations as a % of sales | (15.1) | % | 24.2 | % | 17.1 | % | (37.1) | % | 11.4 | % | ||||||||||||||||||||||
| Adjusted equity in income (loss) of unconsolidated affiliates | (12.1) | (7.0) | 23.0 | (10.1) | (6.2) | |||||||||||||||||||||||||||
| Adjusted income (loss) from continuing operations before income taxes | (106.8) | 300.9 | 176.8 | (168.3) | 202.6 | |||||||||||||||||||||||||||
| Adjusted income tax expense (benefit) from continuing operations | (31.5) | 85.6 | 45.1 | (41.5) | 57.7 | |||||||||||||||||||||||||||
| Adjusted net income (loss) from continuing operations | (75.3) | 215.3 | 131.7 | (126.8) | 144.9 | |||||||||||||||||||||||||||
| Adjusted diluted net income (loss) per common share from continuing operations | (1.33) | 3.75 | 2.27 | (2.23) | 2.51 | |||||||||||||||||||||||||||
| Adjusted EBITDA | (21.2) | 394.5 | 228.5 | (96.5) | 505.2 | |||||||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
12
THE SCOTTS MIRACLE-GRO COMPANY
Revised Segment Results (2) (5)
(In millions)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 28, 2024 | March 29, 2025 | June 28, 2025 | September 30, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||
| Net Sales: | ||||||||||||||||||||||||||||||||
| U.S. Consumer reportable segment | $ | 340.9 | $ | 1,311.5 | $ | 1,030.2 | $ | 311.2 | $ | 2,993.7 | ||||||||||||||||||||||
| Other | 25.7 | 78.2 | 129.1 | 28.9 | 262.1 | |||||||||||||||||||||||||||
| Consolidated | $ | 366.6 | $ | 1,389.7 | $ | 1,159.3 | $ | 340.1 | $ | 3,255.8 | ||||||||||||||||||||||
| Segment Profit (Loss) (Non-GAAP): | ||||||||||||||||||||||||||||||||
| U.S. Consumer reportable segment | $ | 9.8 | $ | 392.1 | $ | 235.2 | $ | (65.8) | $ | 571.3 | ||||||||||||||||||||||
| Other | (3.1) | 9.0 | 16.9 | (9.8) | 13.1 | |||||||||||||||||||||||||||
| Corporate | (33.9) | (35.0) | (28.7) | (36.7) | (134.4) | |||||||||||||||||||||||||||
| Intangible asset amortization | (0.6) | (0.7) | (0.7) | (0.7) | (2.7) | |||||||||||||||||||||||||||
| Impairment, restructuring and other | (18.0) | (15.7) | (0.9) | (10.8) | (45.3) | |||||||||||||||||||||||||||
| Equity in income (loss) of unconsolidated affiliates | (9.9) | (5.9) | 25.3 | (12.3) | (2.8) | |||||||||||||||||||||||||||
| Interest expense | (33.9) | (36.6) | (31.8) | (26.8) | (129.0) | |||||||||||||||||||||||||||
| Other non-operating expense, net | (1.3) | (1.2) | (1.3) | (1.3) | (5.3) | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes (GAAP) | $ | (90.9) | $ | 306.0 | $ | 214.0 | $ | (164.2) | $ | 264.9 | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 30, 2023 | March 30, 2024 | June 29, 2024 | September 30, 2024 | September 30, 2024 | ||||||||||||||||||||||||||||
| Net Sales: | ||||||||||||||||||||||||||||||||
| U.S. Consumer reportable segment | $ | 306.7 | $ | 1,379.8 | $ | 1,017.5 | $ | 309.7 | $ | 3,013.7 | ||||||||||||||||||||||
| Other | 27.2 | 82.5 | 118.7 | 26.3 | 254.7 | |||||||||||||||||||||||||||
| Consolidated | $ | 333.9 | $ | 1,462.3 | $ | 1,136.2 | $ | 336.0 | $ | 3,268.4 | ||||||||||||||||||||||
| Segment Profit (Loss) (Non-GAAP): | ||||||||||||||||||||||||||||||||
| U.S. Consumer reportable segment | $ | (15.4) | $ | 385.7 | $ | 210.0 | $ | (82.8) | $ | 497.5 | ||||||||||||||||||||||
| Other | (5.5) | 5.7 | 11.2 | (8.9) | 2.5 | |||||||||||||||||||||||||||
| Corporate | (28.3) | (37.1) | (26.2) | (31.9) | (123.5) | |||||||||||||||||||||||||||
| Intangible asset amortization | (1.2) | (1.1) | (1.1) | (1.1) | (4.5) | |||||||||||||||||||||||||||
| Impairment, restructuring and other | (3.7) | 0.8 | (2.8) | (76.6) | (82.3) | |||||||||||||||||||||||||||
| Equity in income (loss) of unconsolidated affiliates | (22.5) | (7.0) | 23.0 | (61.6) | (68.1) | |||||||||||||||||||||||||||
| Interest expense | (42.8) | (44.0) | (38.7) | (32.0) | (157.6) | |||||||||||||||||||||||||||
| Other non-operating expense, net | (1.6) | (1.3) | (1.4) | (1.4) | (5.6) | |||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes (GAAP) | $ | (121.0) | $ | 301.7 | $ | 174.0 | $ | (296.3) | $ | 58.4 | ||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
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THE SCOTTS MIRACLE-GRO COMPANY
Revised Reconciliation of Non-GAAP Adjusted EBITDA (2) (5)
(In millions)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 28, 2024 | March 29, 2025 | June 28, 2025 | September 30, 2025 | September 30, 2025 | ||||||||||||||||||||||||||||
| Calculation of Adjusted EBITDA: | ||||||||||||||||||||||||||||||||
| Net income (loss) (GAAP) | $ | (69.5) | $ | 217.5 | $ | 149.1 | $ | (151.8) | $ | 145.2 | ||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (24.8) | 85.3 | 59.3 | (36.9) | 82.8 | |||||||||||||||||||||||||||
| (Income) loss from discontinued operations, net of tax | 3.4 | 3.2 | 5.6 | 24.5 | 36.9 | |||||||||||||||||||||||||||
| Interest expense | 33.9 | 36.6 | 31.8 | 26.8 | 129.0 | |||||||||||||||||||||||||||
| Depreciation | 14.8 | 14.7 | 14.5 | 14.6 | 58.6 | |||||||||||||||||||||||||||
| Amortization | 0.6 | 0.7 | 0.7 | 0.7 | 2.7 | |||||||||||||||||||||||||||
| Impairment, restructuring and other | 18.0 | 15.7 | 0.9 | 10.8 | 45.3 | |||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 9.9 | 5.9 | (25.3) | 12.3 | 2.8 | |||||||||||||||||||||||||||
| Share-based compensation expense | 14.6 | 22.0 | 16.9 | 12.9 | 66.4 | |||||||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 0.9 | $ | 401.6 | $ | 253.5 | $ | (86.1) | $ | 569.7 | ||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 30, 2023 | March 30, 2024 | June 29, 2024 | September 30, 2024 | September 30, 2024 | ||||||||||||||||||||||||||||
| Calculation of Adjusted EBITDA: | ||||||||||||||||||||||||||||||||
| Net income (loss) (GAAP) | $ | (80.5) | $ | 157.5 | $ | 132.1 | $ | (244.0) | $ | (34.9) | ||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (35.7) | 85.0 | 48.7 | (66.9) | 31.1 | |||||||||||||||||||||||||||
| (Income) loss from discontinued operations, net of tax | (4.8) | 59.2 | (6.8) | 14.6 | 62.2 | |||||||||||||||||||||||||||
| Interest expense | 42.8 | 44.0 | 38.7 | 32.0 | 157.6 | |||||||||||||||||||||||||||
| Depreciation | 15.0 | 14.5 | 15.2 | 15.1 | 59.7 | |||||||||||||||||||||||||||
| Amortization | 1.2 | 1.1 | 1.1 | 1.1 | 4.5 | |||||||||||||||||||||||||||
| Impairment, restructuring and other | 3.7 | (0.8) | 2.8 | 76.6 | 82.3 | |||||||||||||||||||||||||||
| Equity in (income) loss of unconsolidated affiliates | 22.5 | 7.0 | (23.0) | 61.6 | 68.1 | |||||||||||||||||||||||||||
| Interest income | (0.1) | (0.2) | (0.1) | (0.1) | (0.5) | |||||||||||||||||||||||||||
| Share-based compensation expense | 14.7 | 27.2 | 19.8 | 13.5 | 75.1 | |||||||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | (21.2) | $ | 394.5 | $ | 228.5 | $ | (96.5) | $ | 505.2 | ||||||||||||||||||||||
Note: See accompanying footnotes.
The sum of the components may not equal due to rounding.
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THE SCOTTS MIRACLE-GRO COMPANY
Footnotes
(1)Previously 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 previously disclosed in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q for each respective period.
(2)Revised reported results of operations are derived from the Company’s historical consolidated financial statements, as recast to classify the Hawthorne business as a discontinued operation in accordance with GAAP.
(3)Basic net income (loss) per common share amounts are calculated by dividing net income (loss) from continuing operations and discontinued operations by the weighted average number of common shares outstanding during the period.
(4)Diluted net income (loss) per common share amounts are calculated by dividing net income (loss) from continuing operations and discontinued operations by the weighted average number of common shares, plus all potential dilutive securities (common stock options, performance shares, performance units, restricted stock and restricted stock units) outstanding during the period.
(5)Reconciliation of Non-GAAP Measures
Use of Non-GAAP Measures
To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in the tables above. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for or superior to, financial measures reported in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company, limiting the usefulness of those measures for comparative purposes.
In addition to GAAP measures, management uses these non-GAAP financial measures to evaluate the Company’s performance, engage in financial and operational planning, determine incentive compensation and monitor compliance with the financial covenants contained in the Company’s borrowing agreements because it believes that these non-GAAP financial measures provide additional perspective on and, in some circumstances are more closely correlated to, the performance of the Company’s underlying, ongoing business.
Management believes that these non-GAAP financial measures are useful to investors in their assessment of operating performance and the valuation of the Company. In addition, these non-GAAP financial measures address questions routinely received from analysts and investors and, in order to ensure that all investors have access to the same data, management has determined that it is appropriate to make this data available to all investors. Non-GAAP financial measures exclude the impact of certain items (as further described below) and provide supplemental information regarding operating performance. By disclosing these non-GAAP financial measures, management intends to provide investors with a supplemental comparison of operating results and trends for the periods presented. Management believes these non-GAAP financial measures are also useful to investors as such measures allow investors to evaluate performance using the same metrics that management uses to evaluate past performance and prospects for future performance.
15
THE SCOTTS MIRACLE-GRO COMPANY
Footnotes
Exclusions from Non-GAAP Financial Measures
Non-GAAP financial measures reflect adjustments based on the following items:
•Impairments, which are excluded because they do not occur in or reflect the ordinary course of the Company’s ongoing business operations and their exclusion results in a metric that provides supplemental information about the sustainability of operating performance.
•Restructuring and employee severance costs, which include charges for discrete projects or transactions that fundamentally change the Company’s operations and are excluded because they are not part of the ongoing operations of its underlying business, which includes normal levels of reinvestment in the business.
•Costs related to refinancing, which are excluded because they do not typically occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of these types of charges is not consistent and is significantly impacted by the timing and size of debt financing transactions.
•Discontinued operations and other unusual items, which include costs or gains related to discrete projects or transactions and are excluded because they are not comparable from one period to the next and are not part of the ongoing operations of the Company’s underlying business.
The tax effect for each of the items listed above is determined using the tax rate and other tax attributes applicable to the item and the jurisdiction(s) in which the item is recorded.
Definitions of Non-GAAP Financial Measures
The reconciliations of non-GAAP disclosure items include the following financial measures that are not calculated in accordance with GAAP:
Adjusted gross margin: Gross margin excluding impairment, restructuring and other charges / recoveries.
Adjusted income (loss) from operations: Income (loss) from operations excluding impairment, restructuring and other charges / recoveries.
Adjusted equity in income (loss) of unconsolidated affiliates: Equity in income / loss of unconsolidated affiliates excluding impairment charges.
Adjusted income (loss) from continuing operations before income taxes: Income (loss) from continuing operations before income taxes excluding impairment, restructuring and other charges / recoveries, costs related to refinancing and certain other non-operating income / expense items.
Adjusted income tax expense (benefit) from continuing operations: Income tax expense (benefit) from continuing operations excluding the tax effect of impairment, restructuring and other charges / recoveries, costs related to refinancing and certain other non-operating income / expense items.
Adjusted net income (loss) from continuing operations: Net income (loss) from continuing operations excluding impairment, restructuring and other charges / recoveries, costs related to refinancing and certain other non-operating income / expense items, each net of tax.
Adjusted diluted net income (loss) per common share from continuing operations: Diluted net income (loss) per common share from continuing operations excluding impairment, restructuring and other charges / recoveries, costs related to refinancing and certain other non-operating income / expense items, each net of tax.
Adjusted EBITDA: Net income (loss) before interest, taxes, depreciation and amortization as well as certain other items such as discontinued operations, the impact of the cumulative effect of changes in accounting, costs associated with debt refinancing and other non-recurring or non-cash items affecting net income (loss). A form of Adjusted EBITDA is used in agreements governing the Company’s outstanding indebtedness for debt covenant compliance purposes. Adjusted EBITDA as used in those agreements includes additional adjustments to the Adjusted EBITDA presented in the reconciliations above which may decrease or increase Adjusted EBITDA for purposes of the Company’s financial covenants.
16