Core Insights - The Scotts Miracle-Gro Company is transferring its wholly-owned subsidiary, The Hawthorne Collective, to an independent strategic partner to focus on its core lawn and garden business and reduce the impact of cannabis sector volatility on its stock [1][3]. Company Strategy - The Hawthorne Collective was created in 2021 to invest in areas of the cannabis industry not pursued by the Hawthorne Gardening Company, which specializes in cultivation supplies [2]. - The transaction is part of a broader strategy to separate cannabis-adjacent subsidiaries from Scotts Miracle-Gro, with plans to separate The Hawthorne Gardening Company by the end of fiscal 2025 [3]. Market Context - The cannabis sector has faced challenges due to a lack of federal action and unfulfilled promises over the past four years, impacting growth potential [4]. - The company believes that an independent cannabis-focused entity could better capitalize on the market, especially if federal reforms are enacted [4]. Financial Terms - Under the terms of the deal, Scotts Miracle-Gro received an interest-bearing promissory note in exchange for The Hawthorne Collective, with an option to reacquire it if federal cannabis legalization occurs [4]. Company Overview - Scotts Miracle-Gro has approximately $3.6 billion in sales and is the largest marketer of branded consumer products for lawn and garden care, with well-known brands like Scotts®, Miracle-Gro®, and Ortho® [5].

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

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

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

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

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

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

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

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

Scotts Miracle-Gro (SMG) came out with a quarterly loss of $0.89 per share versus the Zacks Consensus Estimate of a loss of $1.28. This compares to loss of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.47%. A quarter ago, it was expected that this lawn and garden products company would post a loss of $1.94 per share when it actually produced a loss of $2.31, delivering a surprise of -19.07%.Over the last four quarte ...