FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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(Mark One) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended April 30, 2003 |
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or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission file number 1-13026 |
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BLYTH, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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36-2984916 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No.) |
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One East Weaver Street, Greenwich, Connecticut 06831 |
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(Address of principal executive offices) (Zip Code) |
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(203) 661-1926 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filed (as defined in Exchange Act Rule 12b-2).
Yes ý No o
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
45,946,727 Common Shares as of May 31, 2003
BLYTH, INC.
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Form 10-Q Cover Page |
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Form 10-Q Index |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
BLYTH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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(In thousands, except share and per share data) |
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April 30, |
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January
31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
122,391 |
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$ |
168,596 |
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Accounts receivable, less allowance for doubtful receivables of $3,731 and $4,093, respectively |
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83,972 |
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82,913 |
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Inventories |
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200,450 |
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187,935 |
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Prepaid and other |
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21,972 |
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15,226 |
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Deferred income taxes |
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20,628 |
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17,767 |
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Total current assets |
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449,413 |
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472,437 |
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Property, plant and equipment, at cost: |
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Less accumulated depreciation of $186,119 and $178,397, respectively |
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260,227 |
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244,798 |
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Other assets: |
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Investments |
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3,795 |
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3,564 |
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Excess of cost over fair value of assets acquired |
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196,141 |
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149,365 |
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Other intangible assets, net of accumulated amortization of $150 |
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24,950 |
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— |
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Deposits and other assets |
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18,118 |
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16,494 |
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242,999 |
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169,423 |
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Total assets |
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$ |
952,639 |
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$ |
886,658 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Bank lines of credit |
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$ |
15,372 |
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$ |
7,377 |
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Current maturities of long-term debt |
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4,411 |
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4,037 |
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Accounts payable |
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60,317 |
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58,571 |
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Accrued expenses |
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75,520 |
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80,953 |
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Dividend payable |
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5,979 |
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— |
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Income taxes |
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16,007 |
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2,685 |
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Total current liabilities |
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177,606 |
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153,623 |
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Deferred income taxes |
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36,700 |
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24,280 |
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Long-term debt, less current maturities |
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176,084 |
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165,079 |
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Minority interest and other |
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10,933 |
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4,212 |
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Commitments and contingencies |
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— |
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— |
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Stockholders’ equity: |
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Preferred stock - authorized 10,000,000 shares of $0.01 par value; no shares issued |
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— |
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— |
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Common stock - authorized 100,000,000 shares of $0.02 par value; issued 49,733,227 shares and 49,703,682 shares, respectively |
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995 |
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994 |
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Additional contributed capital |
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101,906 |
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101,567 |
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Retained earnings |
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537,513 |
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523,865 |
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Accumulated other comprehensive income (loss) |
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315 |
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(377 |
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Treasury stock, at cost, 3,755,900 shares and 3,644,100 shares, respectively |
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(89,413 |
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(86,585 |
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Total stockholders’ equity |
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551,316 |
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539,464 |
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Total liabilities and stockholders’ equity |
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$ |
952,639 |
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$ |
886,658 |
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The accompanying notes are an integral part of these financial statements.
3
BLYTH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
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Three months ended April 30, (Unaudited, in thousands, except per share data) |
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2003 |
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2002 |
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Net sales |
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$ |
311,991 |
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$ |
277,896 |
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Cost of goods sold |
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150,595 |
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132,888 |
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Gross profit |
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161,396 |
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145,008 |
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Selling |
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97,069 |
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88,407 |
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Administrative |
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30,069 |
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25,693 |
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127,138 |
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114,100 |
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Operating profit |
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34,258 |
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30,908 |
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Other expense (income): |
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Interest expense |
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3,590 |
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3,823 |
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Interest income and other |
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(591 |
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(441 |
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Equity in (earnings) loss of investee |
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135 |
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(28 |
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3,134 |
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3,354 |
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Earnings before income taxes, minority interest and cumulative effect of change in accounting principle |
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31,124 |
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27,554 |
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Income tax expense |
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11,453 |
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10,250 |
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Earnings before minority interest and cumulative effect of change in accounting principle |
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19,671 |
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