SMG 8-K: Scotts Miracle-Gro Q2 GAAP EPS $1.94, adj. EPS $3.78; revenue down 9% YoY; leverage at 6.0x

Scotts Miracle-Gro Q2 GAAP EPS $1.94, adj. EPS $3.78; revenue down 9% YoY; leverage at 6.0x

SCOTTS MIRACLE-GRO CO

2023-Q2 EPS reported $0.80 revenue$2,058,100,000

GAAP EPS $1.94, adjusted EPS $3.78; prior year GAAP $4.94, adj. $5.03.

Company-wide sales $1.53B (-9%); U.S. Consumer -2% to $1.36B; Hawthorne -54% to $93M.

Net leverage ratio 6.0x (covenant 6.5x); guidance cut: adj. operating income down mid-single-digit %.

Project Springboard on track to deliver >$200M annualized savings by fiscal year-end.

Hawthorne restructuring: closure of 4 distribution centers; $141M pre-tax restructuring charges.

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.9

SCOTTS MIRACLE-GRO CO reported fiscal second quarter ended April 1, 2023 results: revenue $1.53 billion, net income $109.4 million, EPS $1.94 per diluted share. Guidance lowered.

Period: fiscal second quarter ended April 1, 2023
Revenue: $1.53 billion
Net income: $109.4 million
EPS: $1.94 per diluted share
Guidance: lowered
Result: reported results

Exact text from the filing

For the quarter ended April 1, 2023, company-wide sales decreased 9 percent to $1.53 billion. U.S. Consumer segment sales decreased 2 percent to $1.36 billion, from a record $1.38 billion last year. Hawthorne segment sales decreased 54 percent to $93 million, compared with $203 million during the same period a year ago, reflecting the continued challenges in the hydroponic industry. January - March 2023 Net Sales Drivers (1) Volume & Mix Foreign Exchange Price Other (2) Net Sales U.S. Consumer (11)% 0% 9% 0% (2)% Hawthorne (60)% 0% 6% 0% (54)% Other (11)% (6)% 2% 0% (15)% Total SMG (17)% 0% 8% 0% (9)% (1) Net Sales percentage changes are approximations based on quantitative formulas that are consistently applied (2) Other includes the impact of acquisitions and divestitures GAAP and non-GAAP adjusted gross margin rates for the quarter were 26.9 percent and 34.7 percent, respectively. The GAAP and non-GAAP gross margin rates were 35.1 percent and 35.4 percent, respectively, in the secon

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