Net earnings for the fiscal third quarter of 2001 were $53.0 million, compared with $40.7 million earned in the fiscal third quarter of the prior year. Net sales for the fiscal third quarter were approximately $759.4 million compared to net sales of $602.0 million achieved in the corresponding quarter of the prior year. Comparable store sales for the fiscal third quarter increased by approximately 5.8%.
For the fiscal nine months (thirty-nine weeks) ended December 1, 2001, net earnings increased 27.2% to $136.9 million ($.46 per share) from $107.6 million ($.37 per share) earned in the comparable period (thirty-nine weeks) of the prior year. Net sales for the fiscal nine months rose 24.1% to approximately $2.0 billion from approximately $1.7 billion in the corresponding period of the prior year. Comparable stores sales for the fiscal nine months increased by approximately 5.0%.
During the fiscal third quarter, the Company opened 46 new stores adding approximately 1,374,000 square feet, or 10.4%, to total store space. Total store space as of the end of the fiscal third quarter was approximately 14,533,000 square feet. In the fiscal third quarter of 2000, 37 new stores were opened and two existing stores were expanded, adding approximately 1,292,000 square feet, or 12.0%, to total store space.
From the beginning of the current fiscal year through December 1, 2001, Bed Bath & Beyond Inc. opened 79 new stores, adding approximately 2,329,000 square feet, or 19.1%, to total store space. In the first fiscal nine months of 2000, the Company opened 68 new stores and expanded two existing stores, adding approximately 2,285,000 or 23.3%, to total store space.
As of December 1, 2001, Bed Bath & Beyond Inc. operated 390 stores in 44 states. Since that date, four additional stores have been opened, including a store in Bayamon, Puerto Rico, the Company's first store outside the Continental U.S. Two additional stores are expected to open during this fiscal year, which would bring to 396 the total number of stores expected to be in operation at the end of the fiscal year.
The Company plans to open approximately 88 stores in both new and existing markets, in the fiscal year (fifty-two weeks) beginning March 3, 2002. It is estimated that total store space to be added in fiscal 2002 will be approximately 2,500,000 square feet, an increase in total store space of approximately 17%.
Bed Bath & Beyond Inc. is a nationwide chain of superstores selling better quality domestics merchandise and home furnishings. Its stock is traded on NASDAQ under the symbol "BBBY" and is included in the Standard & Poor's 500 Index, the NASDAQ-100 Index and the Forbes 500.
This press release may contain forward-looking statements. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, estimate, assume, continue, project, plan, and similar words and phrases. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors that may be outside the Company's control. Such factors include, without limitation: general economic conditions, changes in the retailing environment and consumer spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; unusual weather patterns; competition from the existing and potential competitors; competition from other channels of distribution; pricing pressures; the ability to find suitable locations at reasonable occupancy costs to support the Company's expansion program; and the cost of labor, merchandise and other costs and expenses. The Company does not undertake any obligation to update its forward-looking statements.
BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Earnings (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended Dec. 1, Nov. 25, Dec. 1, Nov. 25, 2001 2000 2001 2000 Net sales $759,438 $602,004 $2,048,907 $1,650,548 Cost of sales, including buying, occupancy and indirect costs 448,408 355,924 1,211,576 975,891 Gross profit 311,030 246,080 837,331 674,657 Selling, general and administrative expenses 227,281 181,488 623,308 503,717 Operating profit 83,749 64,592 214,023 170,940 Interest income 2,371 2,072 8,619 5,465 Earnings before provision for income taxes 86,120 66,664 222,642 176,405 Provision for income taxes 33,156 25,999 85,717 68,798 Net earnings $52,964 $40,665 $136,925 $107,607 Net earnings per share - Basic $0.18 $0.14 $0.47 $0.38 Net earnings per share - Diluted $0.18 $0.14 $0.46 0.37 Weighted average shares outstanding - Basic 290,188 284,237 289,482 282,944 Weighted average shares outstanding - Diluted 298,365 294,164 298,219 291,828 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, unaudited) Dec. 1, Nov. 25, 2001 2000 Assets Current assets: Cash and cash equivalents $321,332 $140,861 Merchandise inventories 849,238 687,143 Prepaid expenses and other current assets 53,239 38,886 Total current assets 1,223,809 866,890 Property and equipment, net 353,514 288,150 Other assets 7,882 11,440 $1,585,205 $1,166,480 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $346,264 $270,045 Accrued expenses and other current liabilities 184,159 131,398 Income taxes payable 29,143 17,509 Total current liabilities 559,566 418,952 Deferred rent and other liabilities 32,834 22,450 Total liabilities 592,400 441,402 Total shareholders' equity 992,805 725,078 $1,585,205 $1,166,480 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands, unaudited) Nine Months Ended Dec. 1, Nov. 25, 2001 2000 Cash Flows from Operating Activities: Net earnings $136,925 $107,607 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 45,687 32,796 Tax benefit from exercise of stock options 22,156 31,947 Deferred income taxes (760) (5,798) Increase in assets: Merchandise inventories (242,534) (216,710) Prepaid expenses and other current assets (7,915) (925) Other assets (526) (1,178) Increase (decrease) in liabilities: Accounts payable 153,863 124,931 Accrued expenses and other current liabilities 55,359 23,319 Income taxes payable (2,845) (16,081) Deferred rent 2,433 2,478 Net cash provided by operating activities 161,843 82,386 Cash Flows from Investing Activities: Capital expenditures (96,545) (112,035) Net cash used in investing activities (96,545) (112,035) Cash Flows from Financing Activities: Proceeds from exercise of stock options 16,706 26,479 Net cash provided by financing activities 16,706 26,479 Net increase (decrease) in cash and cash equivalents 82,004 (3,170) Cash and cash equivalents: Beginning of period 239,328 144,031 End of period $321,332 $140,861
SOURCE Bed Bath & Beyond Inc.
Chief Financial Officer and Treasurer, Bed Bath & Beyond Inc.
Kenneth C. Frankel,
Director of Financial Planning, Bed Bath & Beyond Inc.
Paula J. Marbach,
Investor Relations, Bed Bath & Beyond Inc.
+1-908-688-0888, fax +1-908-810-8813