SCHEDULE A (Dollars in Thousands, except per share data and ratios)
For the Nine Months
THE SCOTTS COMPANY ------------------- For the Years Ended September 30,------------------- Ended July 4, Sep 21
1992 1993 1994 1995 1996 1997 1997 1998 1998
------------------------------------------------------------------------ -------------------- --------
SELECTED BALANCE SHEET ITEMS (Unaudited)
Accounts Receivable $176,500 $110,400 $104,300 $164,600
Inventory 144,000 148,800 146,100 165,300
Current Assets 350,900 291,900 285,800 389,400
Current Liabilities 123,900 110,800 139,300 215,800
Working Capital 54,800 88,500 140,600 227,000 181,100 146,500 173,600
Short Term Debt 97 2,000 1,500 3,400
Current Maturities LTD 421 200 0 0
L T Debt and Preferred Stk 449,300 400,400 397,100 504,900
Com Stckhldrs' Equity 176,000 143,000 168,200 203,500 187,000 211,900 252,800
Total Capitalization 652,800 587,400 609,000 757,700
Total Assets 268,000 321,600 528,600 809,000 731,700 787,600 1,019,100
SELECTED INCOME STATEMENT ITEMS
Sales 413,600 466,000 606,300 732,800 751,900 900,800 745,400 923,200
Cost of Goods Sold 274,200 311,600 404,100 498,800 512,400 573,600 463,700 578,800
Gross Profit 139,400 154,400 202,200 234,000 239,500 327,200 281,700 344,400
Other Income 800 1,000 1,400 4,500 0 0 0 0
Interest Expense 15,900 8,500 17,500 26,300 26,500 26,700 21,500 27,000
Deprec and Amor Exp 18,100 21,900 25,700 29,300 30,400 24,000 27,600
Sell, Gen & Admin Exp 91,100 102,300 130,300 109,400 116,600 130,500 95,900 121,900
Other Operating Expenses 7,000 9,300 14,000 66,500 78,000 94,100 85,500 103,600
Other Expenses 0 0 0 0 17,100 6,300 2,800 2,700
Pre-Tax Income 26,200 35,300 41,800 36,300 1,300 69,600 76,000 89,200
Taxes 11,100 14,300 17,900 13,900 3,800 30,100 33,000 36,900
N I From Continuing Ops 15,100 21,000 23,900 22,400 (2,500) 39,500 43,000 52,300
Dis Ops Extrao 500 (13,100) (1,000) 0 0 0 0 (700)
Net Income 15,600 7,900 22,900 22,400 (2,500) 39,500 43,000 51,600
Preferred Stock Dividends 0 0 0 3,600 9,800 9,800 7,300 7,300
N I from ConOps ava ComSh 15,100 21,000 23,900 18,800 (12,300) 29,700 35,700 45,000
N I ava Com Sh 15,600 7,900 22,900 18,800 (12,300) 29,700 35,700 44,300
EBITDA 61,900 81,200 88,300 57,100 126,700 121,500 143,800
SELECTED LIQUIDITY, COVERAGE, & LEVERAGE RATIOS
Current ratio 2.83 2.63 2.05 1.80
Collection period (days) 87.91 69.64 43.50 * 45.50 *
Turnover 3.46 3.50 3.89 * 4.42 *
Sales/Assets (Avg) 1.54 1.58 1.43 1.10 0.98 1.19 * 1.19 *
EBIT/Interest+Pref Div 2.65 5.15 3.39 2.09 0.77 2.64 * 2.74 *
EBITDA/CMLTD+Interest+PreDiv 7.28 4.64 2.91 1.56 3.47 3.55 *
Equity / Assets (Avg) 0.66 0.54 0.37 0.28 0.25 0.26 0.26
Equity / Ttl Capitaliz(avg) 0.31 0.31 0.33 0.34
SELECTED PROFITABILITY RATIOS
N I ConOps ava Com / Sal 3.65% 4.51% 3.94% 2.57% -1.64% 3.30% * 3.62%*
N I ConOps ava Com / Avg Eq 8.58% 13.17% 15.36% 10.12% -6.30% 14.89% * 16.79%*
N I ConOps ava Com / Avg Ass 5.63% 7.12% 5.62% 2.81% -1.60% 3.91% * 4.32%*
Gross profit / Sales 33.70% 33.13% 33.35% 31.93% 31.85% 36.32% 37.79% 37.31%
Operating Exp / Sales 23.72% 23.95% 23.80% 24.00% 25.88% 24.93% 24.34% 24.43%
Taxes / Pretax incom 42.37% 40.51% 42.82% 38.29% 292.31% 43.25% 43.42% 41.37%
SELECTED EARNINGS AND PRICING RATIOS
LTM EPS from ConOps $0.84 $1.07 $1.27 $0.99 ($0.65) $1.35 $1.60 $1.60 **
Wtd Avg EPS ConOps(5yr) $0.89 $0.89 ***
Forecast Next Yr EPS (9/99) $1.92
F D EPS as reported $0.87 $0.40 $1.22 $0.99 ($0.65) $1.35 $1.47 $1.70
Dividend per share $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00****
Dividend yield 0.00% 0.00%
Percentage payout 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
LTM Sales / Share $22.98 $23.65 $32.25 $32.42 $39.99 $30.74 $35.60 $35.60 **
LTM EBITDA / Share $3.14 $4.32 $3.91 $3.04 $4.32 $4.92 $4.92 **
Book value per share $7.66 $9.01 $11.92 $11.44 $12.19 $13.52 $13.52 **
Price per share $26.25 $28.50
Invested Cap / Share $47.57 $55.68
Price / Share - LTM EPS ConOps 19.44 x 17.81 x
Price / Share - Wtd Avg EPS CO5yr 29.54 x 32.07 x
Price / Share - Forecast EPS 14.84 x
Price / Share - Book Val per Sh 2.15 x 2.11 x
Price / Share - Sales / Sh LTM 0.85 x 0.80 x
Price / Share - EBITDA / Sh LTM 6.07 x 5.80 x
Invested Cap/Sh / Sales/Sh LTM 1.55 x 1.56 x
Invested Cap/Sh / EBITDA/Sh LTM 11.00 x 11.32 x
End of Per Shares O/S 18,694,000 18,600,000 18,700,000 18,700,000
Wtd Avg Shares O/S 18,000,000 19,700,000 18,800,000 22,600,000 18,800,000 29,300,000 29,300,000 30,300,000
SELECTED GROWTH RATE CALCUALTIONS
CAGR in assets 12345yrs 20.00% 40.44% 44.52% 28.54% 24.06%
CAGR in sales 12345yrs 12.67% 21.07% 21.00% 16.12% 16.84%
CAGR in FD EPS ConOps12345yr 27.38% 22.96% 5.63% nmf 9.95%
EPS ConOps 5 yr avg $0.81
EPS ConOps 5 Year Std Dev $0.74
CAGR in FD EPS 12345 yrs -54.02% 18.42% 4.40% nmf 9.18%
EPS (5 Year Average) $0.66
EPS (5 Year Standard Deviation) $0.73
EPS Cont. Ops. - Earnings per share before discontinued
operations and/or extraordinary and nonrecurring items
nmf - Not meaningful
n/a - Not available
* Annualized
** As of 7/4/98
*** As of 9/30/97
**** Indicated dividend rate