BLYTH INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended October 31, 2003

or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-13026

BLYTH, INC.
(Exact name of registrant as specified in its charter)

DELAWARE		36-2984916
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

One East Weaver Street, Greenwich, Connecticut 06831
(Address of principal executive offices) (Zip Code)

(203) 661-1926
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

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 filer (as defined in Exchange Act Rule 12b-2).

Yes ý No o

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

45,442,077 Common Shares as of November 30, 2003

BLYTH, INC.

INDEX

Form 10-Q Cover Page

Form 10-Q Index

Part I.			Financial Information:

	Item 1.			Financial Statements (Unaudited):
					Consolidated Balance Sheets

					Consolidated Statements of Earnings

					Consolidated Statements of Stockholders’ Equity

					Consolidated Statements of Cash Flows

					Notes to Consolidated Financial Statements

	Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Item 3.			Quantitative and Qualitative Disclosures About Market Risk

	Item 4.			Controls and Procedures

Part II.		Other Information

	Item 1.			Legal Proceedings

	Item 2.			Changes in Securities

	Item 3.			Defaults upon Senior Securities

	Item 4.			Submission of Matters to a Vote of Security Holders

	Item 5.			Other Information

	Item 6.			Exhibits and Reports on Form 8-K

Signatures

Part I. FINANCIAL INFORMATION

Item I. FINANCIAL STATEMENTS

BLYTH, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)	October 31, 2003			January 31, 2003
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	165,851		$	168,596
Accounts receivable, less allowance for doubtful receivables of $4,587 and $4,093, respectively	194,108			82,913
Inventories	246,078			187,935
Prepaid and other	23,218			15,226
Deferred income taxes	21,061			17,767
Total current assets	650,316			472,437
Property, plant and equipment, at cost:
Less accumulated depreciation of $219,869 and $178,397, respectively	270,905			244,798

Other assets:
Investment	3,440			3,564
Excess of cost over fair value of assets acquired	216,736			149,365
Other intangible assets, net of accumulated amortization of $1,050	24,050			—
Deposits and other assets	12,674			16,494
	256,900			169,423
Total assets	$	1,178,121		$	886,658
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank lines of credit	$	45,826		$	7,377
Current maturities of long-term debt	4,533			4,037
Accounts payable	67,681			58,571
Accrued expenses	96,320			80,953
Dividend payable	6,828			—
Income taxes	4,250			2,685
Total current liabilities	225,438			153,623
Deferred income taxes	40,828			24,280
Long-term debt, less current maturities	311,047			165,079
Minority interest and other	11,850			4,212
Commitments and contingencies	—			—
Stockholders’ equity:
Preferred stock - authorized 10,000,000 shares of $0.01 par value; no shares issued and outstanding	—			—
Common stock - authorized 100,000,000 shares of $0.02 par value; issued 49,787,177 shares and 49,703,682 shares, respectively	996			994
Additional contributed capital	103,367			101,567
Retained earnings	576,704			523,865
Accumulated other comprehensive income (loss)	10,626			(377		)
Treasury stock, at cost, 4,255,300 shares and 3,644,100 shares, respectively	(102,735		)	(86,585		)
Total stockholders’ equity	588,958			539,464
Total liabilities and stockholders’ equity	$	1,178,121		$	886,658

The accompanying notes are an integral part of these financial statements.

BLYTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

Nine months ended October 31 (In thousands, except per share data)

	2003		2002

Net sales	$	1,019,160	$	908,098
Cost of goods sold	526,274		453,271
Gross profit	492,886		454,827
Selling	283,698		252,958
Administrative	93,676		85,330

For the quarterly period ended October 31, 2003

One East Weaver Street, Greenwich, Connecticut 06831

(Address of principal executive offices) (Zip Code)

Not Applicable

INDEX