* Net earnings per share $.59 for quarter, $1.65 for year
* 13th Consecutive Year of Record Earnings Since 1992 IPO
* Quarterly Net Sales Increase by 13.1%, Comparable Quarterly Store Sales by 5.1%
UNION, N.J., April 6 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $181.0 million ($.59 per share) in the fiscal fourth quarter of 2004 ended February 26, 2005, an increase of approximately 25.5% from the $144.2 million ($.47 per share) earned in the fiscal fourth quarter of 2003. Net sales for the fiscal fourth quarter of 2004 were approximately $1.5 billion, an increase of approximately 13.1% from the fiscal fourth quarter of 2003. Comparable store sales for the fiscal fourth quarter of 2004 increased by approximately 5.1%, on top of an increase of approximately 8.1% in last year's fiscal fourth quarter.
Net earnings for fiscal 2004 totaled $505.0 million ($1.65 per share), exceeding fiscal 2003 net earnings of $399.5 million ($1.31 per share) by approximately 26.4%. Fiscal 2004 was the 13th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2004 were approximately $5.1 billion, an increase of approximately 15.0% from the prior fiscal year. Comparable store sales for fiscal 2004 increased by approximately 4.5% on top of an increase of approximately 6.3% in fiscal 2003.
As previously announced, during the fiscal fourth quarter of 2004, the Company completed its $350 million share repurchase program, announced on December 15, 2004. The number of shares repurchased under this program was approximately 8.8 million.
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. since June 19, 2003 (date of acquisition) and those of Harmon Stores, Inc. (acquired in 2002).
As of February 26, 2005, the Company operated a total of 721 stores including 660 Bed Bath & Beyond stores (20 of which were opened during the fiscal fourth quarter) in 44 states and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 26 stores in 7 states, and Harmon Stores, Inc. operated 35 stores in 3 states (3 of which were opened during the fiscal fourth quarter). Consolidated store space as of February 26, 2005 was approximately 22.9 million square feet.
Since the beginning of the current fiscal year on February 27, 2005, 3 new Bed Bath & Beyond stores have been opened, bringing the total number of Bed Bath & Beyond stores now in operation to 663 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 Index 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) Three Months Ended Twelve Months Ended February 26, February 28, February 26, February 28, 2005 2004 2005 2004 (unaudited) (unaudited) (unaudited) Net sales $1,467,646 $1,297,928 $5,147,678 $4,477,981 Cost of sales 817,100 734,576 2,961,377 2,601,317 Gross profit 650,546 563,352 2,186,301 1,876,664 Selling, general and administrative expenses 366,925 331,785 1,393,887 1,237,321 Operating profit 283,621 231,567 792,414 639,343 Interest income 7,110 2,983 18,773 10,202 Earnings before provision for income taxes 290,731 234,550 811,187 649,545 Provision for income taxes 109,751 90,302 306,223 250,075 Net earnings $180,980 $144,248 $504,964 $399,470 Net earnings per share - Basic $0.60 $0.48 $1.68 $1.35 Net earnings per share - Diluted $0.59 $0.47 $1.65 $1.31 Weighted average shares outstanding - Basic 300,366 299,363 300,743 296,854 Weighted average shares outstanding - Diluted 305,931 306,394 306,642 304,690 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) February 26, February 28, 2005 2004(1) (unaudited) Assets Current assets: Cash and cash equivalents $222,108 $294,500 Short term investment securities 629,339 572,095 Merchandise inventories 1,152,028 1,012,334 Other current assets 93,527 90,357 Total current assets 2,097,002 1,969,286 Long term investment securities 324,209 210,788 Property and equipment, net 609,631 516,164 Goodwill 147,559 147,269 Other assets 21,578 21,516 $3,199,979 $2,865,023 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $450,525 $398,650 Accrued expenses and other current liabilities 254,643 273,851 Merchandise credit and gift card liabilities 87,061 63,188 Income taxes payable 81,364 33,845 Total current liabilities 873,593 769,534 Deferred rent and other liabilities 122,624 104,669 Total liabilities 996,217 874,203 Total shareholders' equity 2,203,762 1,990,820 $3,199,979 $2,865,023 (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) Twelve Months Ended February 26, February 28, 2005 2004(1) (unaudited) Cash Flows from Operating Activities: Net earnings $504,964 $399,470 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 97,491 84,645 Amortization of bond premium 1,657 1,185 Tax benefit from exercise of stock options 27,049 64,832 Deferred income taxes 4,056 (3,061) (Increase) decrease in assets, net of effect of acquisition: Merchandise inventories (139,694) (27,058) Other current assets (7,350) (2,055) Other assets (145) 5,466 Increase (decrease) in liabilities, net of effect of acquisition: Accounts payable 51,875 19,341 Accrued expenses and other current liabilities (12,733) 17,622 Merchandise credit and gift card liabilities 23,873 19,006 Income taxes payable 47,519 (37,993) Deferred rent and other liabilities 17,827 7,042 Net cash provided by operating activities 616,389 548,442 Cash Flows from Investing Activities: Purchase of held-to-maturity investment securities (484,793) (325,663) Redemption of held-to-maturity investment securities 122,349 357,020 Purchase of available-for-sale investment securities (2,414,778) (1,997,804) Redemption of available-for-sale investment securities 2,604,900 1,567,700 Payment for acquisition, net of cash acquired - (175,487) Capital expenditures (190,721) (112,999) Net cash used in investing activities (363,043) (687,233) Cash Flows from Financing Activities: Proceeds from exercise of stock options 31,080 74,597 Repurchase of common stock, including fees (350,151) - Payment of deferred purchase price for acquisition (6,667) - Prepayment of acquired debt - (21,215) Net cash (used in) provided by financing activities (325,738) 53,382 Net decrease in cash and cash equivalents (72,392) (85,409) Cash and cash equivalents: Beginning of period 294,500 379,909 End of period $222,108 $294,500 (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.
+1-908-688-0888, Ronald Curwin, Chief Financial Officer and Treasurer, Ext. 4550, or
Kenneth C. Frankel, Director of Financial, Planning, Ext. 4554, or
Paula J. Marbach, Investor Relations, Ext. 4552,
All of Bed Bath & Beyond Inc.