UNION, N.J., Sept 21, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Bed Bath & Beyond Inc. today reported net earnings of $141.4 million ($.47 per share) in the fiscal second quarter ended August 27, 2005, an increase of approximately 17.8% from the $120.0 million ($.39 per share) earned in the fiscal second quarter of 2004. Net sales for the fiscal second quarter of 2005 were approximately $1.431 billion, an increase of approximately 12.3% from net sales of approximately $1.274 billion in the fiscal second quarter of 2004. Comparable store sales in the fiscal second quarter of 2005 grew by approximately 4.5%.
For the fiscal first half ended August 27, 2005, net earnings increased 18.9% to $240.3 million ($.80 per share) from $202.1 million ($.66 per share) earned in the comparable period of the prior year. Net sales for the fiscal first half of 2005 rose 12.7% to approximately $2.676 billion from approximately $2.375 billion in the corresponding period of the prior year. Comparable store sales for the fiscal first half of 2005 increased by approximately 4.4%.
As of August 27, 2005, the Company operated a total of 749 stores, including 686 Bed Bath & Beyond stores (of which 15 were opened during the fiscal second quarter) in 44 states and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 27 stores in 7 states and Harmon Stores, Inc. operated 36 stores in 3 states. Consolidated store space as of August 27, 2005 was approximately 23.7 million square feet. As a result of Hurricane Katrina, which occurred at the beginning of the fiscal third quarter, and its aftermath, 2 Bed Bath & Beyond stores located in the Gulf Coast region have had to suspend operations. Several other Bed Bath & Beyond stores in the region, which were affected by the hurricane for several days, have since resumed operations.
Since the beginning of the fiscal third quarter on August 28, 2005, 6 new Bed Bath & Beyond stores have been opened, bringing the total number of Bed Bath & Beyond stores to 692 in 44 states and Puerto Rico.
Bed Bath & Beyond Inc. is a nationwide chain of retail stores. The Company's Bed Bath & Beyond stores sell better quality domestics merchandise and home furnishings. The Company's Christmas Tree Shops and Harmon Stores sell giftware and household items and health and beauty care items, respectively. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard & Poor's 500 and Global 1200 Indices and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes 2000.
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 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 Six Months Ended August 27, August 28, August 27, August 28, 2005 2004 2005 2004 Net sales $1,431,182 $1,273,960 $2,675,603 $2,374,877 Cost of sales 829,398 743,131 1,553,038 1,387,274 Gross profit 601,784 530,829 1,122,565 987,603 Selling, general and administrative expenses 383,907 341,721 753,804 669,788 Operating profit 217,877 189,108 368,761 317,815 Interest income 8,005 3,676 15,113 6,774 Earnings before provision for income taxes 225,882 192,784 383,874 324,589 Provision for income taxes 84,480 72,776 143,569 122,532 Net earnings $141,402 $120,008 $240,305 $202,057 Net earnings per share - Basic $0.48 $0.40 $0.81 $0.67 Net earnings per share - Diluted $0.47 $0.39 $0.80 $0.66 Weighted average shares outstanding - Basic 295,458 300,778 294,936 300,598 Weighted average shares outstanding - Diluted 301,362 306,495 300,208 306,539 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, unaudited) August 27, August 28, 2005 2004 (1) Assets Current assets: Cash and cash equivalents $296,477 $295,075 Short term investment securities 703,395 656,773 Merchandise inventories 1,238,875 1,052,813 Other current assets 114,173 108,443 Total current assets 2,352,920 2,113,104 Long term investment securities 353,516 305,832 Property and equipment, net 645,574 534,795 Goodwill 147,559 147,559 Other assets 21,709 21,559 $3,521,278 $3,122,849 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $503,056 $428,393 Accrued expenses and other current liabilities 249,368 256,482 Merchandise credit and gift card liabilities 93,907 69,098 Income taxes payable 50,255 50,469 Total current liabilities 896,586 804,442 Deferred rent and other liabilities 131,701 110,877 Total liabilities 1,028,287 915,319 Total shareholders' equity 2,492,991 2,207,530 $3,521,278 $3,122,849 (1) Reflects the classification of investments in auction rate securities as investments rather than as cash and cash equivalents to conform with current presentation. BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands, unaudited) Six Months Ended August 27, August 28, 2005 2004 (1) Cash Flows from Operating Activities: Net earnings $240,305 $202,057 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 52,303 46,168 Amortization 4,458 585 Tax benefit from exercise of stock options 18,523 5,947 Deferred income taxes (650) 1,070 Increase in assets: Merchandise inventories (86,847) (40,479) Other current assets (17,507) (14,842) Other assets (173) (85) Increase (decrease) in liabilities: Accounts payable 52,531 29,743 Accrued expenses and other current liabilities (5,372) (10,798) Merchandise credit and gift card liabilities 6,846 5,910 Income taxes payable (31,109) 16,624 Deferred rent and other liabilities 13,194 1,736 Net cash provided by operating activities 246,502 243,636 Cash Flows from Investing Activities: Purchase of held-to-maturity investment securities (179,771) (216,286) Redemption of held-to-maturity investment securities 107,147 84,333 Purchase of available-for-sale investment securities (955,075) (1,187,144) Redemption of available-for-sale investment securities 922,875 1,138,790 Capital expenditures (88,046) (64,793) Net cash used in investing activities (192,870) (245,100) Cash Flows from Financing Activities: Proceeds from exercise of stock options 27,404 8,706 Payment of deferred purchase price for acquisition (6,667) (6,667) Net cash provided by financing activities 20,737 2,039 Net increase in cash and cash equivalents 74,369 575 Cash and cash equivalents: Beginning of period 222,108 294,500 End of period $296,477 $295,075 (1) Reflects the classification of investments in auction rate securities as investments rather than as cash and cash equivalents to conform with current presentation.
SOURCE Bed Bath & Beyond Inc.
Investor Contacts, Ronald Curwin, Chief Financial Officer, Ext. 4550, or Kenneth C.
Frankel, Director of Financial Planning, Ext. 4554,
or Paula J. Marbach, Investor Relations and Treasurer, Ext. 4552, all of Bed Bath & Beyond Inc., +1-908-688-0888 or Fax: +1-908-810-8813