Sales Still Growing at Scotts: Fool by Numbers

On May 1, lawn and garden care firm Scotts Miracle-Gro (NYSE: SMG  ) released results for the second quarter ended March 31. Here are the quick and dirty details.

• Net sales grew 9.5% as North American revenue increased 8% and international revenue improved 17%.
• Margins fell across the board because higher commodity costs, interest expense, and a refinancing charge reduced earnings.
• Management expects sales growth of 8% to 10% and continues to be "optimistic about another year of strong cash flow and working capital improvements."
• Scotts carries a four-star rating in Motley Fool's CAPS community. Rival agricultural product firms Monsanto (NYSE: MON  ) and Archer Daniels Midland (NYSE: ADM  ) carry three stars, while Syngenta (NYSE: SYT  ) has the highest rating possible -- five stars.       

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q2 2007	Q2 2006	Change
Sales	$973	$993	$908	9.5%
Net Profit	--	$83	$95	(12.0%)
EPS	$1.38	$1.23	$1.36	(9.6%)
Diluted Shares	--	68	70	(2.6%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q2 2007	Q2 2006	Change*
	37.09%	38.18%	(1.09)
	16.76%	17.96%	(1.20)
	8.40%	10.45%	(2.05)

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Cash + ST Invest.	$44	$27	59.3%
Accounts Rec.	$1,001	$916	9.3%
Inventory	$572	$538	6.3%

Liabilities	Q2 2007	Q2 2006	Change
Accounts Payable	$342	$267	28.1%
Long-Term Debt	$1,783	$1,064	67.6%

The balance sheet reflects the company's health.

Cash Flow Highlights
Fools will have to wait until Scotts files its 10-Q with the Securities and Exchange Commission for juicy cash flow details. Find out why free cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.