GlobeNewswire Inc | Sep 14, 2020 04:05PM EDT

September 14, 2020

MARYSVILLE, Ohio, Sept. 14, 2020 (GLOBE NEWSWIRE) -- TheScotts Miracle-Gro Company(NYSE: SMG), the worlds leading marketer of branded consumer lawn and garden as well as indoor and hydroponic growing products, announced today it expects fiscal 2020 sales and non-GAAP adjusted earnings per share to exceed the revised guidance the Company provided in late July.

The momentum of our business continues to exceed our expectations in both the U.S. Consumer and Hawthorne segments, said Randy Coleman, executive vice president and chief financial officer. For fiscal 2020, which ends September 30, we now expect non-GAAP adjusted earnings will be approximately $7.25 per share driven by company-wide sales growth of more than 30 percent.

The drivers of our business over the past six months strong consumer demand and highly engaged retailer support are expected to carry into the first quarter of fiscal 2021 and give us a solid start to the year. We continue to expect lower expenses next year will provide tailwinds of roughly a dollar per share. We will provide more details when we provide fiscal 2021 guidance in November.

ScottsMiracle-Gro management is participating tomorrow, September 15, in the Raymond James North American Equities Conference. Interested parties can listen to a live webcast on the Companys investor relations website at http://investor.scotts.com.

About ScottsMiracle-Gro With approximately$3.2 billionin sales, the Company is one of the world's largest marketers of branded consumer products for lawn and garden care. The Company's brands are among the most recognized in the industry. The Company's Scotts, Miracle-Gro and Ortho brands are market-leading in their categories. The Companys wholly-owned subsidiary,The Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment. For additional information, visit us atwww.scottsmiraclegro.com.

Forward Looking Non-GAAP MeasuresIn this release, the Company presents its updated outlook for fiscal 2020 non-GAAP adjusted EPS. The Company does not provide a GAAP EPS outlook, which is the most directly comparable GAAP measure to non-GAAP adjusted EPS, because changes in the items that the Company excludes from GAAP EPS to calculate non-GAAP adjusted EPS, described above, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Companys routine operating activities. Additionally, due to their unpredictability, management does not forecast the excluded items for internal use and therefore cannot create or rely on a GAAP EPS outlook without unreasonable efforts. The timing and amount of any of the excluded items could significantly impact the Companys GAAP EPS. As a result, the Company does not provide a reconciliation of guidance for non-GAAP adjusted EPS to GAAP EPS, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.

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 Companys management, and the Companys assumptions regarding such performance and plans are forward-looking statements within the meaning of theU.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:

-- The ongoing COVID-19 pandemic could have a material adverse effect on the Companys business, results of operation, financial condition and/or cash flows; -- Compliance with environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Companys costs of doing business or limit the Companys ability to market all of its products; -- Damage to the Companys reputation or the reputation of its products or products it markets on behalf of third parties could have an adverse effect on its business; -- The highly competitive nature of the Companys markets could adversely affect its ability to maintain or grow revenues; -- If the Company is unable to effectively execute its e-commerce business, its reputation and operating results may be harmed; -- Because of the concentration of the Companys 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 Companys financial results; -- Climate change and unfavorable weather conditions could adversely impact financial results; -- Certain of the Companys products may be purchased for use in new or emerging industries or segments and/or be subject to varying, inconsistent, and rapidly changing laws, regulations, administrative practices, enforcement approaches, judicial interpretations and consumer perceptions; -- The Companys operations may be impaired if its information technology systems fail to perform adequately or if it is the subject of a data breach or cyber-attack; -- The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Companys business; -- In the event the Third Restated Marketing Agreement for consumer Roundup products terminates, or Monsantos consumer Roundup business materially declines the Company would lose a substantial source of future earnings and overhead expense absorption; -- Hagedorn Partnership, L.P.beneficially owns approximately 26% of the Companys common shares and can significantly influence decisions that require the approval of shareholders; -- Acquisitions, other strategic alliances and investments could result in operating difficulties, dilution and other harmful consequences that may adversely impact the Companys business and results of operations.

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 Companys 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.

Contact: Jim King Executive Vice President Investor Relations & Corporate Affairs (937) 578-5622