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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) September 3, 1999,
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BLYTH INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-13026 36-2984916
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(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
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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: September 3, 1999 By: /s/ Bruce D. Kreiger
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Name: Bruce D. Kreiger
Title: Vice President & General Counsel
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Exhibit 99.1
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 REPORTS SECOND QUARTER NET SALES UP 27%
EPS, AT $0.34, INCREASES 31% YEAR-TO-YEAR
GREENWICH, CT, September 1, 1999: Blyth Industries, Inc. (NYSE:BTH) reported
today that second quarter Net Sales increased by 27% to $229,863,000 compared
with $181,011,000 a year earlier. Operating Profit rose 33% to $30,086,000 when
compared to $22,591,000 in the prior year period. Net Earnings for the quarter
increased 29% to $16,430,000 from $12,725,000 a year earlier. Diluted Net
Earnings Per Share for the first quarter were $0.34, up 31% from $0.26 per share
during the same period last year.
Net sales for the six months ended July 31, 1999 totaled $474,136,000, a 24%
increase over the $382,041,000 reported a year ago. Operating profit for the six
months increased 30% from $48,301,000 to $62,681,000. Net earnings of
$34,967,000 increased 28% compared to $27,397,000 for the prior year period.
Diluted Net Earnings Per Share were $0.71, up 29% compared to $0.55 for last
year's first half.
Commenting on the strong second quarter results, Robert B. Goergen, Chairman of
the Board and CEO, said "Most of the 27% increase in net sales was driven by
double digit growth in each of our major consumer brands. This was complemented
by an approximately 8 percentage point contribution from Liljeholmens and Colony
which were not included in the prior year period." Regarding operating results,
Mr. Goergen added, "The company's overall product mix and continued efficiencies
in product sourcing, manufacturing and distribution more than offset the
reduction in operating margins which resulted from the inclusion of Liljeholmens
in this year's second quarter. Over time, we expect improved operating margins
in our European retail business as we introduce the higher margin fragranced
products on the Continent."
Blyth Industries, Inc., headquartered in Greenwich, CT, designs, manufactures,
markets and distributes an extensive line of candles and home fragrance products
including scented candles, outdoor lighting products, potpourri and
environmental fragrance products, and
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markets a broad range of related candle accessories and decorative gift bags and
tags. Its products are sold in the United States under various brand names,
including Colonial Candle of Cape Cod-REGISTRATION MARK-, PartyLite
Gifts-REGISTRATION MARK-, Carolina Designs-REGISTRATION MARK-, Ambria-TM-,
Canterbury-REGISTRATION MARK-, Florasense-REGISTRATION MARK-,
Jeanmarie-REGISTRATION MARK- and FilterMate-REGISTRATION MARK- and in Europe
under Gies-TM-, Liljeholmens-REGISTRATION MARK-, Eclipse Candles-TM- and
Colony-REGISTRATION MARK-. It is also a leading producer of portable heating
fuel products sold under the Sterno-REGISTRATION MARK- and Handy
Fuel-REGISTRATION MARK- brand names. Net Sales for the twelve months ended July
31, 1999 totaled $967,160,000.
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, 1999. The
COLONY-REGISTRATION MARK- and ECLIPSE CANDLES-TM- trademarks are registered in
the United Kingdom and other countries outside of the United States. Blyth's
products Under the COLONY-REGISTRATION MARK- and ECLIPSE CANDLES-TM- marks are
offered and sold only outside of the United States, and are not available in the
United States. COLONY-REGISTRATION MARK- and ECLIPSE CANDLES-TM- brand products
sold in the United States are in no way associated with Blyth, and are made and
sold by another company.
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BLYTH INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(IN THOUSANDS EXCEPT PER SHARE DATA)
(Unaudited)
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<CAPTION>
Three Months Three Months Six Months Six Months
Ended July 31, Ended July 31, Ended July 31, Ended July 31,
1999 (1), (2) 1998 1999 (1), (2) 1998
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<S> <C> <C> <C> <C>
Net sales $ 229,863 $ 181,011 $ 474,136 $ 382,041
Cost of goods sold 98,198 76,235 201,991 158,842
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Gross profit 131,665 104,776 272,145 223,199
Selling and shipping 78,405 62,768 163,790 135,132
Administrative 22,535 18,906 44,399 38,748
Amortization of goodwill 639 511 1,275 1,018
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101,579 82,185 209,464 174,898
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Operating profit 30,086 22,591 62,681 48,301
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Other expense (income)
Interest expense 2,492 1,645 4,376 3,368
Interest income/other (64) (68) (184) (124)
Equity in earnings of investee 863 162 1,276 202
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3,291 1,739 5,468 3,446
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Earnings before income taxes
and minority interest 26,795 20,852 57,213 44,855
Income tax expense 10,287 8,195 21,970 17,623
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Earnings before minority interest 16,508 12,657 35,243 27,232
Minority interest 78 (68) 276 (165)
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Net earnings $ 16,430 $ 12,725 $ 34,967 $ 27,397
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Basic:
Net earnings per common share $ 0.34 $ 0.26 $ 0.72 $ 0.56
Weighted average number of 48,488 49,173 48,714 49,144
shares outstanding
Diluted:
Net earnings per common share $ 0.34 $ 0.26 $ 0.71 $ 0.55
Weighted average number of 48,893 49,653 49,076 49,643
shares outstanding
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CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
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<CAPTION>
July 31, 1999 (3) July 31, 1998
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<S> <C> <C>
Assets
Cash and Cash Equivalents $ 20,172 $ 12,199
Accounts Receivable, Net 75,081 48,460
Inventories 234,093 161,559
Property, Plant & Equipment, Net 252,317 176,736
Other Assets 109,422 66,413
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$691,085 $465,367
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Liabilities and Stockholders' Equity
Bank Debt $215,813 $ 87,223
Senior Notes 21,429 25,000
Other Liabilities 118,719 78,338
Stockholders' Equity 335,124 274,806
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$691,085 $465,367
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(1) As a result of the Company's December 1998 purchase of approximately 79% of
Liljeholmens Stearinfabriks AB voting common stock, the results of
operations of Liljeholmens are included in the Consolidated Statement of
Earnings of the Company. The minority shareholders' approximately 61%
economic interest is reflected within minority interest.
(2) In May 1999, the Company purchased the remaining 50% interest in Colony
Gift Corporation Ltd. from its shareholders. The results of operations of
Colony Gift are included in the Consolidated Statement of Earnings of the
Company as of June 1999.
(3) The balance sheets of Liljeholmens (adjusted for the June 1999 increase in
ownership to 99%) and Colony Gift are included in the July 31, 1999
Consolidated Balance Sheet of the Company. Before including Liljeholmens
and Colony Gift, key balance sheet amounts would be: Accounts Receivable
$59,172; Inventory $193,082; Fixed Assets $196,947; Bank Debt $159,059.
