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 April 30, 2005
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)
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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
(Registrant’s telephone number, including area code)
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 Rule 12b-2 of the Exchange Act).
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.
40,963,744 Common Shares as of May 31, 2005
BLYTH, INC.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
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Part II. |
Other Information |
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2
BLYTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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April 30, |
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January 31, |
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(In thousands, except share and per share data) |
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2005 |
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2005 |
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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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$ |
92,726 |
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$ |
91,695 |
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Accounts receivable, less allowance for doubtful receivables of $3,515 and $4,028, respectively |
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111,536 |
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124,603 |
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Inventories |
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230,675 |
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234,984 |
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Prepaid and other |
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52,621 |
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43,832 |
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Assets held for sale |
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4,060 |
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3,949 |
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Deferred income taxes |
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15,081 |
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15,068 |
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Total current assets |
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506,699 |
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514,131 |
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Property, plant and equipment, at cost: |
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Less accumulated depreciation of $271,805 and $262,685, respectively |
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249,073 |
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258,896 |
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Other assets: |
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Investments |
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3,243 |
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3,446 |
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Goodwill |
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243,461 |
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246,182 |
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Other intangible assets, net of accumulated amortization of $4,417 and $3,867, respectively |
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38,683 |
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39,233 |
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Deposits and other assets |
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13,729 |
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13,932 |
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299,116 |
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302,793 |
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Total assets |
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$ |
1,054,888 |
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$ |
1,075,820 |
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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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$ |
9,369 |
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$ |
11,813 |
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Current maturities of long-term debt |
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4,452 |
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4,489 |
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Accounts payable |
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61,052 |
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81,333 |
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Accrued expenses |
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97,202 |
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94,847 |
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Dividends payable |
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8,601 |
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— |
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Income taxes |
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11,178 |
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9,477 |
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Total current liabilities |
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191,854 |
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201,959 |
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Deferred income taxes |
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46,211 |
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47,740 |
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Long-term debt, less current maturities |
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271,062 |
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271,573 |
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Other long-term liabilities |
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32,388 |
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33,199 |
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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 and outstanding |
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— |
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Common stock - authorized 100,000,000 shares of $0.02 par value; issued 50,492,660 shares and 50,367,827 shares, respectively |
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1,010 |
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1,007 |
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Additional contributed capital |
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126,208 |
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118,148 |
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Retained earnings |
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652,515 |
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651,156 |
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Accumulated other comprehensive income |
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24,811 |
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36,102 |
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Unearned compensation on restricted stock |
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(4,036 |
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Treasury stock, at cost, 9,533,416 shares and 9,468,416 shares, respectively |
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(287,135 |
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(285,064 |
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Total stockholders’ equity |
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513,373 |
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521,349 |
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Total liabilities and stockholders’ equity |
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$ |
1,054,888 |
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$ |
1,075,820 |
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The accompanying notes are an integral part of these financial statements.
3
BLYTH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
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Three months ended April 30 (In thousands, except per share data) |
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2005 |
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2004 |
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Net sales |
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$ |
355,768 |
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$ |
358,980 |
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Cost of goods sold |
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187,423 |
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175,969 |
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Gross profit |
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168,345 |
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