News Release

View printer-friendly version << Back
Bed Bath & Beyond Inc. Announces First Quarter Results * Net Earnings Increase 24.2% to $57.5 million ($.19 per share) * Comparable Store Sales Grow by 4.4%
Jun 18 2003

UNION, N.J., Jun 18, 2003 /PRNewswire-FirstCall via COMTEX/ -- Bed Bath & Beyond Inc. today reported net earnings of $57.5 million ($.19 per share) in the fiscal first quarter ended May 31, 2003, an increase of approximately 24.2% from the $46.3 million ($.15 per share) earned in the fiscal first quarter of 2002. Net sales for the fiscal first quarter of 2003 were $893.9 million, an increase of approximately 15.1% from net sales of $776.8 million in the fiscal first quarter of 2002. Comparable store sales in the fiscal first quarter of 2003 grew by approximately 4.4%, compared with an increase of approximately 13.2% in last year's fiscal first quarter (the largest quarterly increase in comparable store sales in eight years).

As of May 31, 2003, there were 498 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 8 new stores opened during the fiscal first quarter. Total store space of the Bed Bath & Beyond stores at the end of the fiscal first quarter was approximately 17,423,000 square feet, an increase of approximately 15.5% over total store space of approximately 15,081,000 square feet of the 409 Bed Bath & Beyond stores operating at the end of the corresponding period last year. Since the beginning of the fiscal second quarter on June 1, 2003, 5 new Bed Bath & Beyond stores have been opened, bringing the total number of stores now operating to 503 stores in 44 states and Puerto Rico. Including those already opened year-to-date, the Company plans to open 80 to 90 stores, in both new and existing markets, during fiscal 2003 (which ends on February 28, 2004).

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 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.

                     Consolidated Statements of Earnings
                    (in thousands, except per share data)

                                                       Three Months Ended

                                                     May 31,        June 1,
                                                      2003           2002

    Net sales                                       $893,868       $776,798

    Cost of sales                                    526,688        458,436

       Gross profit                                  367,180        318,362

    Selling, general and administrative expenses     276,730        245,661

       Operating profit                               90,450         72,701

    Interest income                                    3,059          2,582

        Earnings before provision for income taxes    93,509         75,283

    Provision for income taxes                        36,001         28,984

        Net earnings                                 $57,508        $46,299

    Net earnings per share - Basic                     $0.19          $0.16
    Net earnings per share - Diluted                   $0.19          $0.15

    Weighted average shares outstanding - Basic      294,963        291,726
    Weighted average shares outstanding - Diluted    303,038        300,674

                           Consolidated Balance Sheets
                            (in thousands, unaudited)

                                                     May 31,        June 1,
                                                      2003          2002

    Current assets:
        Cash and cash equivalents                   $683,745       $380,435
        Short term investment securities              50,682              -
        Merchandise inventories                      926,906        850,041
        Other current assets                          72,477         50,935

              Total current assets                 1,733,810      1,281,411

    Long term investment securities                  140,756        146,673
    Property and equipment, net                      412,883        357,914
    Other assets                                      22,522         23,951

                                                  $2,309,971     $1,809,949

    Liabilities and Shareholders' Equity

    Current liabilities:
        Accounts payable                            $379,240       $329,317
        Accrued expenses and other current
         liabilities                                 267,793        225,813
        Income taxes payable                          68,010         58,327

              Total current liabilities              715,043        613,457

    Deferred rent and other liabilities               60,395         45,232

              Total liabilities                      775,438        658,689

    Total shareholders' equity                     1,534,533      1,151,260

                                                  $2,309,971     $1,809,949

                      Consolidated Statements of Cash Flows
                            (in thousands, unaudited)

                                                       Three Months Ended

                                                     May 31,        June 1,
                                                      2003           2002

    Cash Flows from Operating Activities:

    Net earnings                                     $57,508        $46,299
    Adjustments to reconcile net earnings
     to net cash
        provided by operating activities:
        Depreciation and amortization                 19,781         17,195
        Amortization of bond premium                     306              -
        Tax benefit from exercise of stock options    13,129          6,947
        Deferred income taxes                         (1,462)        (3,177)
        (Increase) decrease in assets,
         net of effect of acquisition:
            Merchandise inventories                  (11,235)       (80,159)
            Other current assets                      (8,736)        (3,961)
            Other assets                                  17             (1)
        Increase (decrease) in liabilities,
         net of effect of acquisition:
            Accounts payable                          16,275         52,496
            Accrued expenses and other
             current liabilities                      21,595         30,771
            Income taxes payable                      (2,998)         7,139
            Deferred rent and other liabilities        3,489          4,218

      Net cash provided by operating activities      107,669         77,767

    Cash Flows from Investing Activities:

      Purchase of investment securities              (67,812)       (94,764)
      Redemption of investment securities            125,000              -
      Acquisition, net of cash acquired                    -        (24,097)
      Capital expenditures                            (8,757)       (11,631)

      Net cash provided by (used in)
       investing activities                           48,431       (130,492)

    Cash Flows from Financing Activities:

      Proceeds from exercise of stock options         11,975          3,664

      Net cash provided by financing activities       11,975          3,664

      Net increase (decrease) in cash
       and cash equivalents                          168,075        (49,061)

    Cash and cash equivalents:
      Beginning of period                            515,670        429,496
      End of period                                 $683,745       $380,435

SOURCE Bed Bath & Beyond Inc.

Investors - 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, Fax,
+1-908-810-8813, all of Bed Bath & Beyond Inc., +1-908-688-0888