GREENWICH, Conn., March 18, 2003 (PRIMEZONE) -- Blyth, Inc. (NYSE:BTH), a leader in home fragrance and decorative accessories, today reviewed management's expectations for fiscal year 2004 financial performance. Earnings Per Share is expected to exceed $2.05. Cash flow from operations is anticipated to be approximately $135 million, and capital expenditures are expected to total $25 million. Free cash flow, defined as cash flow from operations less capital spending, is expected to be approximately $110 million. Management's expectations for fiscal year 2004 results exclude any effect from the acquisition of Miles Kimball Company, which the Company announced earlier this month and which is expected to close in several weeks.
Commenting on the earnings projections, Robert B. Goergen, Blyth's Chairman of the Board and CEO, said, "Blyth is among the growing number of companies that believes that a reliance on quarterly earnings estimates unduly focuses on short term results, whereas our goal is annual increases in sales and profitability which, in turn, drive long term shareholder value. Moreover, economic and geopolitical uncertainties exacerbate an already difficult task.
"We recognize the need of analysts and investors to make projections about our business based on independent assumptions of our growth prospects and are committed to the timely disclosure of information that will assist them in their efforts. Beginning in fiscal year 2004, however, we will cease providing quarterly earnings estimates for the reasons noted above."
Mr. Goergen continued, "At Blyth, we focus on three financial goals that help guide our decision making in our existing businesses and our acquisition strategy. We strive to increase sales and profits by 10% or more annually, to maintain our very healthy operating margins in the 12 - 14% range and to meet or exceed a 17% return on shareholder equity. These objectives impact our daily operations and represent an effective measurement of our performance."
Blyth, Inc., headquartered in Greenwich, CT, USA, designs, manufactures and markets an extensive line of candles and home fragrance products including scented candles, potpourri and other fragranced products, as well as tabletop illumination products and portable heating fuel, and markets a broad range of related candle accessories. Its products are sold direct to the consumer under the PartyLite(r) brand, to retailers in the premium and specialty retail channels under the Colonial Candle of Cape Cod(r), Colonial at HOME(r), Kate's(tm) and Carolina(r) brands, in the mass retail channel under the Florasense(r), Ambria(r), FilterMate(r) and Sterno(r) brands and to the Foodservice industry under the Sterno(r), Ambria(r) and HandyFuel(r) brand names. In Europe, its products are also sold under the Colonial, Gies, Ambria and Carolina brands. Blyth also markets a broad range of Creative Expressions products, including home decor and giftware products under the CBK(tm) brand, seasonal products under the Seasons of Cannon Falls(tm) and JMC Impact(tm) brands, and paper-related products under the Jeanmarie(r) brand.
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 that are other than statements of historical facts. Actual results could differ materially due to various factors, including the current slowing of the United States economy as a whole and the continuing weakness of the retail environment, the effects of our restructuring, the risk that we will be unable to maintain the Company's historic growth rate, the Company's ability to respond appropriately to changes in product demand, the risks (including foreign currency fluctuations, economic and political instability, transportation delays, difficulty in maintaining quality control, trade and foreign tax laws and others) associated with international sales and foreign products, risks associated with our ability to recruit new independent sales consultants, our dependence on key management personnel, risks associated with the sourcing of raw materials for our products, 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 October 31, 2002 and in the Company's Annual Report on Form 10-K for the year ended January 31, 2002.