GREENWICH, Conn., May 24, 2001 (PRIMEZONE) -- Blyth, Inc. (NYSE:BTH) reported today first quarter Net Sales of $261.2 million compared with $291.4 million a year earlier. Operating Profit was $27.3 million compared to $37.3 million in the prior year period. Net Earnings for the quarter were $15.7 million versus $19.7 million a year earlier. Diluted Net Earnings Per Share for the first quarter were $0.33 per share compared to $0.41 per share for the same period last year.
A decline in the Company's direct selling operations, which management believes is temporary, was cited as the primary factor for lower sales versus the first quarter of last year. In addition, the challenging retail environment resulted in lower-than-expected growth in the consumer wholesale businesses. Blyth's acquisition of Midwest of Cannon Falls, Inc. last month had a negligible effect on the parent Company's first quarter results.
Commenting on the first quarter sales and earnings results, Robert B. Goergen, Chairman of the Board and CEO, said, "We achieved our Earnings Per Share goals as outlined last quarter, despite the level of caution among our customers. We believe that PartyLite is getting back on track, following the formation of an enhanced New Product Development team late last year. The impact of their efforts will be evident in the Holiday 2001 product line, which is in the production pipeline and will be introduced to consultants later this summer."
Mr. Goergen continued to say, "The ongoing effect of rising energy costs on discretionary spending, coupled with economic uncertainty and depressed European currencies, has had a significant effect on Blyth's results and is expected to continue to impact sales and earnings over the near term."
On a segment basis, Net Sales in the Candles and Home Fragrance Products businesses were $237.9 million, compared to $270.2 million in the prior year period. Operating income for this segment, at $27.6 million, compared to $37.6 million in last year's first quarter. Net sales in the Creative Expressions and Foodservice businesses totaled $23.2 million vs. $21.2 million one year ago, as well as an operating loss of $0.4 million compared to an operating loss of $0.2 million in the prior year period. The sum of the segment amounts does not necessarily equal that reported for the quarter due to rounding.
Management will conduct a conference call today at 10 a.m. (eastern), which will be broadcast live over the Internet, at www.blythinc.com. The call will be archived on Blyth's website.
Blyth, Inc., headquartered in Greenwich, designs, manufactures and markets an extensive line of candles and home fragrance products including scented candles, potpourri and other fragranced products, and markets a broad range of related candle accessories. Its products are sold direct to the consumer under the PartyLite(r) brand, to retailers in the mid-tier and premium retail channels, under the Colonial Candle of Cape Cod(r), Kate's Original Recipe(tm) and Carolina Designs(r) brands and in the mass retail channel under the Ambria(tm), Florasense(r) and FilterMate(r) brands. In Europe, its products are also sold under the Gies, Colony and Wax Lyrical brands. Blyth also markets a broad range of creative expressions and Foodservice products, including decorative seasonal products under the Midwest of Cannon Falls(r) and Impact(tm) brand names, paper-related products under the Jeanmarie(r) brand and tabletop illumination products and portable heating fuel for the hotel, restaurant and catering trade, under the Ambria(tm), Sterno(r) and HandyFuel(r) brand names. Net Sales for the twelve months ended April 30, 2001 totaled $1,167 million.
Blyth, Inc. may be found on the Internet at www.blythinc.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. Actual results could differ materially due to various factors, including the risk of a continuing weakness of the retail environment, the effects of our restructuring, the risk of maintaining the Company's growth rate, the Company's ability to respond to increased product demand, the risks (including foreign currency fluctuations) associated with international sales and foreign products, the risks of being able to recruit new independent sales consultants, dependence on key management personnel, competition in terms of price and new product introductions, and other factors described in this press release, in the Company's Quarterly Report on Form 10-Q for the quarter ended October 31, 2000 and in the Company's Annual Report on Form 10-K for the year ended January 31, 2001.
BLYTH, INC.
Consolidated Statements of Earnings
(In thousands except per share data)
(Unaudited)
Three Months Three Months
Ended April 30, Ended April 30,
2001 2000
------------------- -------------------
Net sales $ 261,153 $ 291,368
Cost of goods sold 122,496 132,889
--------- ---------
Gross profit 138,657 158,479
Selling and shipping 85,441 96,465
Administrative 24,941 23,638
Amortization of goodwill 990 1,048
--------- ---------
111,372 121,151
--------- ---------
Operating profit 27,285 37,328
--------- ---------
Other expense (income)
Interest expense 4,026 4,153
Interest income
and other (2,184) (579)
Equity in earnings
of investee 485 851
--------- ---------
2,327 4,425
--------- ---------
Earnings before income
taxes, minority interest
and cumulative effect of
accounting change 24,958 32,903
Income tax expense 9,284 12,373
--------- ---------
Earnings before minority
interest and cumulative
effect of accounting change 15,674 20,530
Minority interest -- (352)
--------- ---------
Earnings before cumulative
effect of accounting change 15,674 20,882
Cumulative effect of
accounting change (SAB 101),
net of taxes -- (1,153)
--------- ---------
Net Earnings $ 15,674 $ 19,729
========= =========
Basic:
Net earnings per common
share before cumulative
effect of accounting change $ 0.33 $ 0.44
Cumulative effect of accounting
change (SAB 101) 0.00 (0.02)
--------- ---------
$ 0.33 $ 0.42
========= =========
Weighted average number of
shares outstanding 47,086 47,982
Diluted:
Net earnings per common share
before cumulative effect of
accounting change $ 0.33 $ 0.43
Cumulative effect of accounting
change (SAB 101) 0.00 (0.02)
--------- ---------
$ 0.33 $ 0.41
========= =========
Weighted average number of
shares outstanding 47,264 48,265
Consolidated Balance Sheets
(In thousands)
(Unaudited)
April 30, 2001 April 30, 2000
-------------- --------------
Assets
Cash and Cash Equivalents $ 36,734 $ 87,084
Accounts Receivable, Net 85,949 66,082
Inventories 225,482 206,359
Property, Plant & Equipment, Net 263,311 272,355
Other Assets 161,886 123,241
-------- --------
$773,362 $755,121
======== ========
Liabilities and Stockholders' Equity
Bank Debt $ 48,724 $ 49,875
Senior Notes 17,857 21,429
Bond Debt 150,000 150,000
Other Liabilities 128,901 144,941
Stockholders' Equity 427,880 388,876
-------- --------
$773,362 $755,121
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