ViSalus Parent Company Reports 3rd Quarter Sales Increase of 40 Percent
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GREENWICH, Conn., Nov. 6, 2012 -- Blyth, Inc., a direct to consumer company and leading designer and marketer of candles, accessories for the home, and health and wellness products, today reported earnings for the third quarter. Net Sales for the three months ended September 30, 2012 increased 40% to $268.8 million versus $191.5 million for the comparable prior year period primarily due to the 132% year-over-year sales growth at ViSalus. International sales for Blyth represented 25% of third quarter sales this year compared to 34% last year, driven by ViSalus' strong domestic sales growth.
Commenting on the very strong third quarter sales growth, Robert B. Goergen, Chairman & CEO noted, "We are extremely gratified that ViSalus continues to grow well beyond our initial expectations for North America and fully expect growth to continue in that region going forward. Moreover, as ViSalus initiates its global expansion outside North America in the first half of 2013, we expect strong sales growth trends to prevail." Reflecting on last weekend's National Success Training, ViSalus' CEO Ryan Blair said, "The record Promoter turnout in St. Louis demonstrates the continued appeal that the Body by Vi(TM) 90 Day Challenge holds for our Promoters and customers and underscores our confidence in the continued growth potential of the North American market."
Operating Profit for the third quarter was $7.8 million this year versus a loss of $4.9 million last year and includes the following pre-tax items:
Fees of $4.7 million related to the ViSalus initial public offering, which was withdrawn on September 26th
A ViSalus equity incentive credit of $3.4 million this year and a charge of $7.3 million last year
Restructuring charges of $0.7 million for PartyLite this year, and
An intangible impairment charge of $0.8 million in the Catalog & Internet Segment.
Excluding the impact of these charges and credit, operating profit would have been $10.6 million this year versus $2.4 million last year. The increase in operating profit is due to the growth of ViSalus.