- Net Earnings for quarter increase to $.35 per diluted share;
- Quarterly Net Sales Increase by 12.2%; Quarterly Comparable Store Sales Increase by 4.9%
UNION, N.J., June 21 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.35 per diluted share ($100.4 million) in the fiscal first quarter ended May 27, 2006. In the fiscal first quarter of 2005, the Company reported net earnings of $.33 per diluted share ($98.9 million). Net sales for the fiscal first quarter of 2006 were $1.396 billion, an increase of approximately 12.2% from net sales of $1.244 billion reported in the fiscal first quarter of 2005. Comparable store sales in the fiscal first quarter of 2006 increased by approximately 4.9%, compared with an increase of approximately 4.4% in last year's fiscal first quarter.
The fiscal first quarter of 2006 results included incremental stock-based compensation expense resulting from the early adoption, at the beginning of the fiscal third quarter of 2005, of Statement of Financial Accounting Standards 123(R).
As of May 27, 2006, the Company operated a total of 819 stores including 751 Bed Bath & Beyond stores (10 of which were opened during the fiscal first quarter) in 46 states, the District of Columbia and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 30 stores (one of which opened during the fiscal first quarter) in 8 states, and Harmon Stores, Inc. operated 38 stores in 3 states. Consolidated store space as of May 27, 2006 was approximately 25.8 million square feet. Since the beginning of the fiscal second quarter on May 28, 2006, 3 new Bed Bath & Beyond stores and one Christmas Tree Shops store have been opened.
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a nationwide chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops and Harmon. The Company sells a wide assortment of merchandise principally including domestics merchandise and home furnishings as well as food, giftware and health and beauty care items. 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: changes in the retailing environment and consumer preferences and spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; general economic conditions; unusual weather patterns; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the cost of labor, merchandise and other costs and expenses; and the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program. 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 May 27, May 28, 2006 2005 Net sales $1,395,963 $1,244,421 Cost of sales 805,865 723,640 Gross profit 590,098 520,781 Selling, general and administrative expenses 441,348 369,897 Operating profit 148,750 150,884 Interest income 9,659 7,108 Earnings before provision for income taxes 158,409 157,992 Provision for income taxes 57,978 59,089 Net earnings $100,431 $98,903 Net earnings per share - Basic $0.36 $0.34 Net earnings per share - Diluted $0.35 $0.33 Weighted average shares outstanding - Basic 280,202 294,413 Weighted average shares outstanding - Diluted 285,153 299,055 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, unaudited) May 27, May 28, 2006 2005 Assets Current assets: Cash and cash equivalents $87,795 $224,528 Short term investment securities 554,472 651,983 Merchandise inventories 1,391,048 1,238,976 Other current assets 135,302 108,943 Total current assets 2,168,617 2,224,430 Long term investment securities 413,424 362,436 Property and equipment, net 765,101 616,315 Other assets 185,617 169,161 $3,532,759 $3,372,342 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $551,244 $481,949 Accrued expenses and other current liabilities 240,584 255,429 Merchandise credit and gift card liabilities 120,043 92,660 Income taxes payable 98,690 89,955 Total current liabilities 1,010,561 919,993 Deferred rent and other liabilities 137,727 132,046 Total liabilities 1,148,288 1,052,039 Total shareholders' equity 2,384,471 2,320,303 $3,532,759 $3,372,342 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands, unaudited) Three Months Ended May 27, May 28, 2006 2005(1) Cash Flows from Operating Activities: Net earnings $100,431 $98,903 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 30,775 25,760 Amortization of bond premium 1,037 1,787 Stock-based compensation 12,977 - Excess tax benefit from stock-based compensation 1,204 7,873 Deferred income taxes (10,425) (325) Increase in assets: Merchandise inventories (89,328) (86,948) Trading investment securities (754) - Other current assets (14,503) (13,847) Other assets (6) (45) Increase (decrease) in liabilities: Accounts payable 38,419 41,495 Accrued expenses and other current liabilities (8,555) 738 Merchandise credit and gift card liabilities 6,529 5,599 Income taxes payable 6,660 8,591 Deferred rent and other liabilities 7,583 8,130 Net cash provided by operating activities 82,044 97,711 Cash Flows from Investing Activities: Purchase of held-to-maturity investment securities (97,194) (102,736) Redemption of held-to-maturity investment securities 55,715 10,715 Purchase of available-for-sale investment securities (396,175) (515,975) Redemption of available-for-sale investment securities 267,450 546,300 Capital expenditures (78,722) (42,398) Net cash used in investing activities (248,926) (104,094) Cash Flows from Financing Activities: Proceeds from exercise of stock options 6,229 8,803 Excess tax benefit from stock-based compensation 1,508 - Repurchase of common stock (757) - Net cash provided by financing activities 6,980 8,803 Net (decrease) increase in cash and cash equivalents (159,902) 2,420 Cash and cash equivalents: Beginning of period 247,697 222,108 End of period $87,795 $224,528 (1) Reflects the accrual for purchases of capital expenditures as a non- cash investing activity to conform with current presentation.
SOURCE Bed Bath & Beyond Inc.
CONTACT: Investor Relations, +1-908-688-0888, or Fax, +1-908-810-8813,
Ronald Curwin, Ext. 4550, or Kenneth C. Frankel, Ext. 4554, or Paula J.
Marbach, Ext. 4552, all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com