* Net Earnings Per Share of $.39 for Quarter * Quarterly Net Sales Increase by 14.6% * Comparable Quarterly Store Sales Increase by 4.8%
UNION, N.J., Sept. 22 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $120.0 million ($.39 per share) in the fiscal second quarter ended August 28, 2004, an increase of approximately 23.5% from the $97.2 million ($.32 per share) earned in the fiscal second quarter of 2003. Net sales for the fiscal second quarter of 2004 were approximately $1.3 billion, an increase of approximately 14.6% from net sales of approximately $1.1 billion in the fiscal second quarter of 2003. Comparable store sales in the fiscal second quarter of 2004 grew by approximately 4.8%, compared with an increase of approximately 5.9% in last year's fiscal second quarter.
For the fiscal first half ended August 28, 2004, net earnings increased 30.6% to $202.1 million ($.66 per share) from $154.7 million ($.51 per share) earned in the comparable period of the prior year. Net sales for the fiscal first half of 2004 rose 18.4% to approximately $2.4 billion from approximately $2.0 billion in the corresponding period of the prior year. Comparable store sales for the fiscal first half of 2004 increased by approximately 4.9%, compared with an increase of approximately 5.2% in the comparable period a year ago.
As of August 28, 2004, the Company operated a total of 661 stores, including 606 Bed Bath & Beyond stores (of which 14 were opened during the fiscal second quarter) in 44 states and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. (acquired in fiscal 2003) operated 24 stores in 6 states, and Harmon Stores, Inc. (acquired in fiscal 2002) operated 31 stores in 3 states. Consolidated total square feet of store space as of August 28, 2004 was approximately 21.3 million square feet.
During the remainder of fiscal 2004 (which ends on February 26, 2005) the Company plans to open approximately 54 Bed Bath & Beyond stores, in both new and existing markets, 2 Christmas Tree Shops and approximately 4 Harmon Stores.
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 Index and the NASDAQ-100 Index. The Company is counted among the Fortune 500, the Forbes 500 and the Business Week 50.
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 28, August 30, August 28, August 30, 2004 2003 2004 2003 Net sales $1,273,960 $1,111,445 $2,374,877 $2,005,313 Cost of sales 743,131 652,300 1,387,274 1,178,988 Gross profit 530,829 459,145 987,603 826,325 Selling, general and administrative expenses 341,721 303,278 669,788 580,008 Operating profit 189,108 155,867 317,815 246,317 Interest income 3,676 2,195 6,774 5,254 Earnings before provision for income taxes 192,784 158,062 324,589 251,571 Provision for income taxes 72,776 60,854 122,532 96,855 Net earnings $120,008 $97,208 $202,057 $154,716 Net earnings per share - Basic $0.40 $0.33 $0.67 $0.52 Net earnings per share - Diluted $0.39 $0.32 $0.66 $0.51 Weighted average shares outstanding - Basic 300,778 295,811 300,598 295,387 Weighted average shares outstanding - Diluted 306,495 304,172 306,539 303,605 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, unaudited) August 28, August 30, 2004 2003 Assets Current assets: Cash and cash equivalents $846,350 $617,381 Short term investment securities 105,498 65,269 Merchandise inventories 1,052,813 958,778 Other current assets 108,443 78,410 Total current assets 2,113,104 1,719,838 Long term investment securities 305,832 119,847 Property and equipment, net 534,795 477,213 Goodwill 147,559 145,932 Other assets 21,559 26,115 $3,122,849 $2,488,945 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $428,393 $386,335 Accrued expenses and other current liabilities 256,482 274,786 Merchandise credit and gift card liabilities 69,098 50,198 Income taxes payable 50,469 55,049 Total current liabilities 804,442 766,368 Deferred rent and other liabilities 110,877 79,992 Total liabilities 915,319 846,360 Total shareholders' equity 2,207,530 1,642,585 $3,122,849 $2,488,945 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands, unaudited) Six Months Ended August 28, August 30, 2004 2003 Cash Flows from Operating Activities: Net earnings $202,057 $154,716 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 46,168 40,257 Amortization of bond premium 585 649 Tax benefit from exercise of stock options 5,947 18,634 Deferred income taxes 1,070 4,037 (Increase) decrease in assets, net of effect of acquisition: Merchandise inventories (40,479) 26,498 Other current assets (14,842) (10,002) Other assets (85) (6,946) Increase (decrease) in liabilities, net of effect of acquisition: Accounts payable 29,743 7,026 Accrued expenses and other current liabilities (10,798) 12,789 Merchandise credit and gift card liabilities 5,910 6,016 Income taxes payable 16,624 (16,789) Deferred rent and other liabilities 1,736 10,545 Net cash provided by operating activities 243,636 247,430 Cash Flows from Investing Activities: Purchase of investment securities (247,355) (130,975) Redemption of investment securities 87,808 194,770 Payment for acquisition, net of cash acquired -- (175,487) Capital expenditures (64,793) (30,126) Net cash used in investing activities (224,340) (141,818) Cash Flows from Financing Activities: Proceeds from exercise of stock options 8,706 17,314 Payment of deferred purchase price for acquisition (6,667) -- Prepayment of acquired debt -- (21,215) Net cash provided by (used in) financing activities 2,039 (3,901) Net increase in cash and cash equivalents 21,335 101,711 Cash and cash equivalents: Beginning of period 825,015 515,670 End of period $846,350 $617,381
SOURCE Bed Bath & Beyond Inc.
Investor Contacts: Ronald Curwin, Chief Financial Officer and Treasurer,
+1-908-688-0888, Ext. 4550, or
Kenneth C. Frankel, Director of Financial Planning,
+1-908-688-0888, Ext. 4554, or
Paula J. Marbach, Investor Relations,
+1-908-810-8813, Ext. 4552, all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com