Robust Sales and Profitability Expansion Highlight First Quarter Performance
First quarter net sales of $124.3 million up 7.6% year over year (up 16.9% organically1); gross profit of $26.2 million up 12.7% year over year with gross margins expanding 90 basis points ("bps") to 21.1%.First quarter net income of $4.4 million favorable $6.6 million year over year; first quarter adjusted EBITDA1 of $5.9 million up 32.4% year over year.Net debt1 of $74.9 million down $2.5 million and Gross Leverage Ratio1 of 2.2x down 0.2x versus last year's comparable quarter end. Net debt at
Scotts Miracle-Gro (SMG) records lower sales in the Hawthorne segment in Q2 partly resulting from the weakness in the hydroponic industry.