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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) DECEMBER 3, 1998
BLYTH INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-13026 36-2984916
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
100 FIELD POINT ROAD, GREENWICH, CONNECTICUT 06830
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 661-1926
NOT APPLICABLE
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
See Exhibit 99.1 attached hereto.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BLYTH INDUSTRIES, INC.
Date: December 4, 1998 By: /s/ Bruce D. Kreiger
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Name: Bruce D. Kreiger
Title: Vice President & General Counsel
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BLYTH INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
October 31, October 31, October 31, October 31,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 240,766 $ 192,457 $ 622,807 $ 485,226
Cost of goods sold 106,392 85,852 265,234 215,424
Gross profit 134,374 106,605 357,573 269,802
Selling and shipping 74,149 58,784 209,281 156,369
Administrative 17,693 14,081 56,441 42,971
Amortization of goodwill 513 212 1,531 636
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92,355 73,077 267,253 199,976
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Operating profit 42,019 33,528 90,320 69,826
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Other expense (income)
Interest expense 1,853 1,578 5,221 3,577
Interest income (131) (184) (255) (486)
Equity in earnings of investee (308) (457) (106) (367)
Non-recurring transaction costs of acquired company 0 0 0 5,173
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1,414 937 4,860 7,897
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Earnings before income taxes and minority interest 40,605 32,591 85,460 61,929
Income tax expense 15,923 12,698 33,546 24,316
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Earnings before minority interest 24,682 19,893 51,914 37,613
Minority interest 150 267 (15) 254
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Net earnings $ 24,532 $ 19,626 $ 51,929 $ 37,359
Net earnings excluding the non-recurring transaction
costs of acquired company $ 24,532 $ 19,626 $ 51,929 $ 40,551
========== ========== ========== ==========
Basic:
Net earnings per common share(1) $ 0.50 $ 0.40 $ 1.06 $ 0.76
Net earnings per common share excluding
non-recurring transaction costs of
acquired company(1)(2) $ 0.50 $ 0.40 $ 1.06 $ 0.83
Weighted average number of shares outstanding(1) 49,186 49,074 49,158 49,054
Diluted:
Net earnings per common share(1) $ 0.49 $ 0.40 $ 1.05 $ 0.75
Net earnings per common share excluding
non-recurring transaction costs of
acquired company(1)(2) $ 0.49 $ 0.40 $ 1.05 $ 0.82
Weighted average number of shares outstanding(1) 49,610 49,590 49,652 49,544
</TABLE>
(1) Restated for June 1997 3 for 2 stock split effected as a stock dividend.
(2) Net earnings excluding the non-recurring costs of acquired company.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 1998 October 31, 1997
---------------- ----------------
Assets
Cash and Cash Equivalents $ 11,420 $ 16,244
Accounts Receivable, Net 86,327 73,179
Inventories 152,536 136,900
Property, Plant & Equipment, Net 187,118 154,947
Other Assets 73,201 35,802
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$ 510,602 $ 417,072
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Liabilities and Stockholders' Equity
Bank Debt $ 93,633 $ 83,530
Senior Notes 25,000 25,000
Other Liabilities 92,811 78,810
Stockholders' Equity 299,158 229,732
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$ 510,602 $ 417,072
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CONTACT: FOR IMMEDIATE RELEASE
Richard T. Browning
Chief Financial Officer
(203) 661-1926, ext. 6628
Jane F. Casey
Vice President
(203) 661-1926, ext. 6619
BLYTH INDUSTRIES THIRD QUARTER NET SALES UP 25 PERCENT
NET EARNINGS TRACK SALES GROWTH AT 25%
GREENWICH, CT, December 3, 1998: Blyth Industries, Inc. (NYSE:BTH) reported
today that third quarter Net Sales increased by 25.1% to $240,766,000 compared
to $192,457,000 a year earlier. Operating Profit rose 25.3% to $42,019,000
compared to $33,528,000 in the prior year period. Net Earnings increased 25.0%
to $24,532,000 from $19,626,000 in last year's third quarter. Diluted Net
Earnings Per Share for the third quarter were $0.49 compared to $0.40 per share
for the comparable prior year period.
As a result of the strong performance in the third quarter, Net Sales for the
nine months ended October 31, 1998 rose 28.4% to $622,807,000 compared to
$485,226,000 a year earlier. Operating Profit rose 29.4% to $90,320,000
compared to $69,826,000 for the first nine months a year ago. Net Earnings for
the nine months increased 39.0% to $51,929,000 from $37,359,000 during the same
period last year, which included a $3.2 million after-tax charge for
non-recurring transaction costs incurred by Endar Corp. prior to its acquisition
by Blyth. This transaction was accounted for as a pooling of interests.
Excluding last year's non-recurring transaction costs, Net Earnings rose 28.1%
from the prior nine month period's Net Earnings of $40,551,000. Diluted Net
Earnings Per Share were $1.05, compared to $0.75 for last year's first nine
months. Excluding the non-recurring transaction costs, the year to year
increase of $0.23 in Diluted Net Earnings Per Share represented a 28%
improvement.
Commenting on the strong third quarter performance, Robert B. Goergen, Chairman
of the Board and CEO, said "These results demonstrate the unique strength we
derive from the diversity of our distribution channels and geographic markets,
with double digit growth in both the institutional and consumer markets. Within
the consumer market, the direct selling of candles and accessories continues to
be a significant business for Blyth. Sales through retail outlets in the U.S.
continue to show double digit growth rates, with retail sales of mass channel
brands outpacing the overall corporate average during the third quarter." Mr.
Goergen went on to say, "International markets continue to offer significant
growth opportunities, contributing an increasing proportion of total sales."
Blyth Industries, Inc., headquartered in Greenwich, CT, designs, manufactures,
markets and
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distributes an extensive line of candles and home fragrance products including
scented candles, outdoor lighting products, potpourri and environmental
fragrance products, and markets a broad range of related candle accessories and
decorative gift bags and tags. Its products are sold under various brand names,
including Colonial Candle of Cape Cod -Registered Trademark-, PartyLite
Gifts-Registered Trademark-, Carolina Designs -TM-, Ambria -TM-, Canterbury
- -TM-, Florasense-Registered Trademark-, Jeanmarie-Registered Trademark- and
FilterMate-Registered Trademark-. It is also a leading producer of portable
heating fuel products sold under the Sterno-Registered Trademark- and Handy
Fuel-Registered Trademark- brand names.
Blyth Industries, Inc. can be found on the Internet at www.blythindustries.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 maintaining the
Company's growth rate, the Company's ability to respond to increased product
demand, the risks associated with international sales and foreign products,
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 Annual Report on Form 10-K for the year ended January 31, 1998 and in
subsequent filings on Form 10-Q.
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