The Scotts Miracle-Gro Company (NYSE:SMG) Q1 2020 Earnings Conference Call - Final Transcript

Jan 29, 2020 • 12:00 pm ET


The Scotts Miracle-Gro Company (NYSE:SMG) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the 2020 Q1 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jim King. Please go ahead.

Jim King

Good day as well. Thank you, John. Good morning everyone and welcome to The Scotts Miracle-Gro First Quarter Conference Call. With me this morning in Marysville, Ohio is our Chairman and CEO, Jim Hagedorn and our CFO, Randy Coleman. Also present is Mike Lukemire, our President and Chief Operating Officer; Chris Hagedorn, the General Manager of our Hawthorne Gardening subsidiary and several other members of the management team. In a moment, Jim and Randy will share some brief prepared remarks regarding our Q1 performance as well as other matters. Afterwards, we'll open the call up to your questions. In the interest of time, we ask that you try to keep the one question and one follow-up. If you have any questions that we don't get to in the call, please call me directly at 937-578-5622 and we'll set up some time to get together as quickly as possible.

Before we move on, I'd like to take care of a couple of pieces of housekeeping on the IR front. On March 2nd and 3rd, Randy and I will be attending the Raymond James 41st Annual Institutional Investors Conference at the Grande Lakes Resort in Orlando. We'll conduct one-on-one meetings on both days and conduct a webcast presentation at 2:50 PM on Monday the 2nd. We'll be issuing a press release closer to the event. Two weeks later, the week of March 16th, we'll hold one-on-one and small group meetings in several European markets including London. Those meetings will be coordinated by William Blair & Company. Investors interested in meeting with us at either of these occasions should contact the respective firms directly.

With that, let's move on to today's call. As always, we expect to make forward-looking statements this morning. So I want to caution that our actual results could differ materially from what we say. Investors should familiarize themselves with the full range of risk factors that could impact our results and those that are filed with our Form 10-K with the SEC. I want to remind everyone that today's call is being recorded and an archived version of the call will be available on our website. So, let's get started and to do so, I'll turn things over to Jim Hagedorn.

Jim Hagedorn

Thanks, Jim. Good morning, everyone. If you've had a chance to review the first quarter results we announced this morning, it's evident the momentum we enjoyed in fiscal 2019 carried into the early months of fiscal 2020 as well. Not only did we see strong performance in Q1, but the early weeks of Q2. Because of strong cash flow, we've re-initiated our share repurchase activity. So, we're feeling good about the strong start to the year and have a high degree of confidence in our full year guidance. It's easy to look at the results though and get carried