GREENWICH, Conn., Jan. 8, 2002 (PRIMEZONE) -- Blyth, Inc. (NYSE:BTH), a leader in the candles and home fragrance industry, today at its investor meeting discussed improved performance in its direct selling company, PartyLite, as well as improvement in its U.S. consumer wholesale channel during the fourth quarter of fiscal year 2002.
Management currently expects fourth quarter, fiscal year 2002 consolidated net sales to increase 3-4%; whereas net sales for the first nine months of the fiscal year had decreased 4% as compared to a year earlier. Fourth quarter earnings per share are anticipated to range from $.28 to $.32, which includes previously announced one-time pre-tax charges of approximately $12-$15 million, resulting in earnings per share charges of $.16-$.20. These charges relate primarily to the closure of the Company's 62nd Street facility in Chicago, as well as other rationalization steps within Blyth's businesses. Expected earnings per share of $.28 to $.32 for the fourth quarter compares to earnings per share of $.24 for the prior year period, which reflected $.28 of one-time and other unusual items.
For the full year, fiscal 2002, net sales are expected to decrease 2-3% as compared to fiscal year 2001. Expected earnings per share of $1.43-$1.47 include fourth quarter one-time charges of $.16-$.20, as well as an inventory charge of $.08, which was recorded during the second quarter of fiscal year 2002. This compares to full year, fiscal 2001 earnings per share of $1.66, which reflects $.28 in one-time and unusual charges. Cash flow from operations for fiscal year 2002 is expected to be $80-90 million. Capital expenditures will be approximately $16 million.
For the full year, fiscal 2003, net sales are expected to increase 4-5%, excluding acquisitions. This assumes improvement in the U.S. and European economies, continued positive momentum at PartyLite and an improved retail environment. Low double digit earnings per share growth versus prior year is also expected, excluding unusual and one-time charges, reflecting improved operational results. Fiscal year 2003 cash flow from operations is expected to be $100-$110 million, and capital expenditures of approximately $20 million are anticipated.
Today's investor meeting is archived on Blyth's Website, at www.blythinc.com under Investor Relations.
Blyth, Inc., headquartered in Greenwich, CT, USA, 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(tm) and Carolina(r) brands, and in the mass retail channel under the Florasense(r), Ambria(tm) 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 seasonal and home decor products under the Midwest of Cannon Falls(r) brand, decorative seasonal products under the Impact(tm) brand, 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 October 31, 2001 totaled $ 1,163.0 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, 2001 and in the Company's Annual report on Form 10-K for the year ended January 31, 2001.