Fiscal Fourth Quarter, 37.6% for Fiscal Year
UNION, N.J., Apr 2, 2003 /PRNewswire-FirstCall via COMTEX/ -- Bed Bath & Beyond Inc. today reported net earnings of $105.3 million ($.35 per share) in the fiscal fourth quarter of 2002 ended March 1, 2003, an increase of approximately 27.4% from the $82.7 million ($.28 per share) earned in the fiscal fourth quarter of 2001. Net sales for the fiscal fourth quarter of 2002 were $1.05 billion, an increase of approximately 19.4% from the fiscal fourth quarter of 2001. Comparable store sales of the Bed Bath & Beyond stores for the fiscal fourth quarter of 2002 increased by approximately 4.1% compared with an increase of approximately 11.9% in last year's fiscal fourth quarter (which was the strongest fourth quarter comparable store sales increase in the Company's history).
Net earnings for fiscal 2002 totaled $302.2 million ($1.00 per share), exceeding fiscal 2001 net earnings of $219.6 million ($.74 per share) by approximately 37.6%. Fiscal 2002 was the 11th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2002 were $3.7 billion, an increase of approximately 25.2% from the prior fiscal year. Comparable store sales of the Bed Bath & Beyond stores for fiscal 2002 increased by approximately 7.9%, compared with an increase of approximately 7.1% in fiscal 2001.
Bed Bath & Beyond also announced today that Steven H. Temares, 44, President and Chief Operating Officer of the Company, will remain President and will also assume the additional title of Chief Executive Officer, and that Warren Eisenberg and Leonard Feinstein, who co-founded Bed Bath & Beyond in 1971, will continue in their capacity as full-time Co-Chairmen. These changes to the management structure are consistent with new standards for corporate governance, which endorse the separation of the positions of Chairman and Chief Executive Officer.
In announcing these actions, Messrs. Eisenberg and Feinstein stated "We are pleased to once again formally recognize Steven's outstanding performance in managing the Company's day-to-day activities dating back to his appointment, over six years ago, as Executive Vice President and Chief Operating Officer. We remain extremely confident that his leadership, combined with the efforts of the exceptional group of talented associates, managers and executives in our organization, will enable us to continue to achieve our objectives as one of the preeminent American retailers."
Mr. Temares, a member of the Board of Directors, was named Executive Vice President and Chief Operating Officer in January, 1997 and was promoted to President and Chief Operating Officer in June, 1999. Mr. Temares joined Bed Bath & Beyond in 1992, and has also previously served as Director of Real Estate and General Counsel.
During the fiscal fourth quarter of 2002, 3 new Bed Bath & Beyond stores were opened. In addition, the relocation of one store was completed and one small store was closed. At the end of fiscal 2002, Bed Bath & Beyond Inc. operated 490 Bed Bath & Beyond stores in 44 states, including 95 new Bed Bath & Beyond stores (several of which were expected to open in fiscal 2003) which began operations during the year. Total store space of the Bed Bath & Beyond stores grew to approximately 17,255,000 square feet, an increase of approximately 2,531,000 square feet (17.2%) over total store space of approximately 14,724,000 square feet occupied by 396 Bed Bath & Beyond stores in 44 states operating at the end of fiscal 2001.
Harmon Stores, a health and beauty care retailer acquired for cash on March 5, 2002, ended the year with 29 stores in 3 states, representing an aggregate of approximately 197,000 square feet of store space.
Since the beginning of the current fiscal year on March 2, 2003, 6 new Bed Bath & Beyond stores have been opened. These openings bring the total number of Bed Bath & Beyond stores now in operation to 496 in 44 states.
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. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are 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 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 March 1, March 2, March 1, March 2, 2003 2002 2003 2002 Net sales $1,049,292 $879,055 $3,665,164 $2,927,962 Cost of sales 605,666 508,820 2,146,617 1,720,396 Gross profit 443,626 370,235 1,518,547 1,207,566 Selling, general and administrative expenses 275,185 238,158 1,038,490 861,466 Operating profit 168,441 132,077 480,057 346,100 Interest income 2,794 2,353 11,291 10,972 Earnings before provision for income taxes 171,235 134,430 491,348 357,072 Provision for income taxes 65,926 51,756 189,169 137,473 Net earnings $105,309 $82,674 $302,179 $219,599 Net earnings per share - Basic $0.36 $0.28 $1.03 $0.76 Net earnings per share - Diluted $0.35 $0.28 $1.00 $0.74 Weighted average shares outstanding - Basic 294,236 291,061 292,927 289,877 Weighted average shares outstanding - Diluted 301,833 300,009 301,147 298,667 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) March 1, March 2, 2003 2002 Assets Current assets: Cash and cash equivalents $515,670 $429,496 Short term investment securities 100,927 -- Merchandise inventories 915,671 753,972 Other current assets 62,123 43,249 Total current assets 1,594,391 1,226,717 Long term investment securities 148,005 51,909 Property and equipment, net 423,907 361,741 Other assets 22,539 7,150 $2,188,842 $1,647,517 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $362,965 $270,917 Accrued expenses and other current liabilities 246,198 190,923 Income taxes payable 71,008 49,438 Total current liabilities 680,171 511,278 Deferred rent and other liabilities 56,750 41,889 Total liabilities 736,921 553,167 Total shareholders' equity 1,451,921 1,094,350 $2,188,842 $1,647,517 BED BATH & BEYOND INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Twelve Months Ended March 1, March 2, 2003 2002 Cash Flows from Operating Activities: Net earnings $302,179 $219,599 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 74,825 62,547 Amortization of bond premium 985 -- Tax benefit from exercise of stock options 31,176 31,980 Deferred income taxes (13,291) 1,733 (Increase) decrease in assets, net of effect of acquisition: Merchandise inventories (145,789) (147,268) Other current assets (7,927) 644 Other assets 190 206 Increase in liabilities, net of effect of acquisition: Accounts payable 86,144 78,516 Accrued expenses and other current liabilities 52,891 62,123 Income taxes payable 20,378 17,450 Deferred rent and other liabilities 17,556 10,426 Net cash provided by operating activities 419,317 337,956 Cash Flows from Investing Activities: Purchase of investment securities (368,008) (51,909) Redemption of investment securities 170,000 -- Acquisition, net of cash acquired (24,097) -- Capital expenditures (135,254) (121,632) Net cash used in investing activities (357,359) (173,541) Cash Flows from Financing Activities: Proceeds from exercise of stock options 24,216 25,753 Net cash provided by financing activities 24,216 25,753 Net increase in cash and cash equivalents 86,174 190,168 Cash and cash equivalents: Beginning of period 429,496 239,328 End of period $515,670 $429,496
SOURCE Bed Bath & Beyond Inc.
Ronald Curwin, Chief Financial Officer and Treasurer, +1-908-688-0888, ext. 4550, Kenneth C. Frankel, Director of Financial Planning, +1-908-688-0888, ext. 4554, or Paula J. Marbach, Investor Relations, +1-908-688-0888, ext. 4552, all of Bed Bath & Beyond, Inc., Fax: +1-908-810-8813