On February 8th, 2018, The Scotts Miracle-Gro Company (NYSE:SMG) filed its quarterly report with the SEC for its quarter that ended December 30, 2017. Download the full 10-Q filing in .pdf here.
For the quarter ended December 30, 2017, GAAP loss from continuing operations was $0.35 per share compared with $0.97 per share in the prior year as the Company recognized a net deferred tax benefit of $46 million as a result of the revaluation and reduction of deferred tax liabilities due to the recent tax law changes. The non-GAAP adjusted loss was $1.08 per share, compared with a loss of $0.88 per share for the same period a year ago largely due to the unfavorable impact of lower tax rate and share count in a loss-making quarter. Due to the seasonal nature of the lawn and garden category, the Company reports a loss each year during its first quarter.
"As we prepare for the start of the lawn and garden season, our core business is on pace with our internal expectations and we continue to expect solid consumer and retailer engagement once the weather breaks," said Jim Hagedorn, chairman and chief executive officer. "In our Hawthorne segment, growth was driven by acquisitions. Excluding acquisitions, sales declined roughly $12 million from the prior year, which we attribute to the slower-than-expected pace of regulatory changes in California."
"While we view the recent slow down within Hawthorne as temporary, it has continued into the second quarter. We now expect full-year organic sales growth at Hawthorne will be flat assuming a return to normal market conditions in the second half of the year. Our long-term prospects for this business remain unchanged and we continue to see Hawthorne having strong long-term growth."
Hawthorne is Scotts' ancillary cannabis-related division.
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