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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 2, 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: December 2, 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 THIRD QUARTER NET SALES UP 22%
EPS, AT $0.61, INCREASES 24% YEAR-TO-YEAR
GREENWICH, CT, December 2, 1999: Blyth Industries, Inc. (NYSE:BTH) reported
today that third quarter Net Sales increased by 22% to $294,441,000 compared
with $240,766,000 a year earlier. Operating Profit rose 24% to $52,162,000 when
compared to $42,019,000 in the prior year period. Net Earnings for the quarter
were $29,888,000, an increase of 22% over the $24,532,000 reported in the prior
year. Diluted Net Earnings Per Share for the third quarter were $0.61, up 24%
from $0.49 per share during the same period last year.
Net sales for the nine months ended October 31, 1999 totaled $768,577,000, a 23%
increase over the $622,807,000 reported a year ago. Operating profit for the
nine months increased 27% from $90,320,000 to $114,843,000. Net earnings of
$64,855,000 increased 25% compared to $51,929,000 for the prior year period.
Diluted Net Earnings Per Share were $1.33, up 27% compared to $1.05 for the
prior year-to-date period.
Commenting on the strong third quarter results, Robert B. Goergen, Chairman of
the Board and CEO, said "We are very proud that our continued strong growth
pattern has resulted in net sales for the twelve month period ended October 31,
1999 in excess of $1 billion for the first time. Innovative new product
introductions, customer expansion, geographic diversification and selective
acquisitions have all contributed to this growth."
International sales for the third quarter were up 90% versus a year ago, and
international operating profit was up even more. For the nine months,
international sales and operating profit were both up approximately 70%. Mr.
Goergen further commented that, "following the acquisition of Liljeholmens and
the 50% remaining interest in Colony Gift Corp., Blyth European businesses have
become an increased proportion of total sales. Today, Blyth Industries is a
world leader in home fragrance products, with approximately 30% of our ongoing
sales from markets outside of the U.S."
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Turning to operating performance, Mr. Goergen added, "in addition to the strong
pattern of sales growth in excess of 20% in each quarter, we have achieved
improved operating margins in each of this year's first three quarters as
compared to the year-earlier periods. This reflects the relatively higher sales
growth of premium products in the U.S., product sourcing benefits in raw
materials and accessories across our businesses, and cost efficiencies in
manufacturing and distribution."
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 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(R), PartyLite Gifts(R), Carolina Designs(R), Ambria(TM), Canterbury(R),
Florasense(R), Jeanmarie(R) and FilterMate(R) and in Europe under Gies,
Liljeholmens, Eclipse Candles and Colony. It is also a leading producer of
portable heating fuel products sold under the Sterno(R) and Handy Fuel(R) brand
names. Net Sales for the twelve months ended October 31, 1999 totaled
$1,020,835,000.
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 Quarterly Report on Form 10-Q for the quarter ended July 31, 1999, and
in the Company's Annual Report on Form 10-K for the year ended January 31, 1999.
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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 October 31, Ended October 31, Ended October 31, Ended October 31,
1999 (1) 1998 1999 (1) 1998
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<S> <C> <C> <C> <C>
Net sales $ 294,441 $ 240,766 $ 768,577 $ 622,807
Cost of goods sold 131,003 106,392 332,994 265,234
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Gross profit 163,438 134,374 435,583 357,573
Selling and shipping 88,991 74,149 252,781 209,281
Administrative 21,470 17,693 65,869 56,441
Amortization of goodwill 815 513 2,090 1,531
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111,276 92,355 320,740 267,253
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Operating profit 52,162 42,019 114,843 90,320
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Other expense(income)
Interest expense 3,679 1,853 8,055 5,221
Interest income/other (256) (131) (440) (255)
Equity in earnings of investee 273 (308) 1,549 (106)
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3,696 1,414 9,164 4,860
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Earnings before income taxes
and minority interest 48,466 40,605 105,679 85,460
Income tax expense 18,426 15,923 40,396 33,546
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Earnings before minority interest 30,040 24,682 65,283 51,914
Minority interest 152 150 428 (15)
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Net earnings $ 29,888 $ 24,532 $ 64,855 $ 51,929
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Basic:
Net earnings per common share $ 0.62 $ 0.50 $ 1.34 $ 1.06
Weighted average number of shares outstanding 48,365 49,186 48,558 49,158
Diluted:
Net earnings per common share $ 0.61 $ 0.49 $ 1.33 $ 1.05
Weighted average number of shares outstanding 48,748 49,610 48,925 49,652
</TABLE>
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(Unaudited)
<TABLE>
<CAPTION>
October 31, October 31,
1999(2) 1998
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<S> <C> <C>
Assets
Cash and Cash Equivalents $ 13,533 $ 11,420
Accounts Receivable, Net 122,623 86,327
Inventories 231,333 152,536
Property, Plant & Equipment, Net 270,129 187,118
Other Assets 110,195 73,201
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$ 747,813 $ 510,602
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Liabilities and Stockholders' Equity
Bank Debt $ 75,615 $ 93,633
Senior Notes 21,429 25,000
Bond Debt 150,000 --
Other Liabilities 144,170 92,811
Stockholders' Equity 356,599 299,158
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$ 747,813 $ 510,602
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</TABLE>
(1) As a result of the Company's purchases of Liljeholmens Stearinfabriks AB
and Colony Gift Corporation Ltd., the results of operations of
Liljeholmens and Colony Gift are included in the Consolidated Statement of
Earnings of the Company since their dates of acquisition.
(2) The balance sheets of Liljeholmens and Colony Gift are included in the
October 31, 1999 Consolidated Balance Sheet of the Company and were not
included in the Consolidated Balance Sheet of the Company at October 31,
1998. Before including Liljeholmens and Colony Gift, key balance sheet
amounts would be: Accounts Receivable $89,738; Inventory $180,362;
Property, Plant & Equipment $210,907; Bank Debt $3,288; Other Liabilities
$104,632.
