News Release

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Bed Bath & Beyond Inc. Announces Fiscal First Quarter Results
Jun 20 2002
UNION, N.J., Jun 20, 2002 /PRNewswire-FirstCall via COMTEX/ --

* Net Earnings Increase 54.3% to $46.3 million ($.15 per share) * Net Sales Rise 34.9%; Comparable Store Sales Grow by 13.2%

Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $46.3 million ($.15 per share) in the fiscal first quarter ended June 1, 2002, an increase of approximately 54.3% from the $30.0 million ($.10 per share) earned in the fiscal first quarter of 2001. Net sales for the fiscal first quarter of 2002 were $776.8 million, an increase of approximately 34.9% from net sales of $575.8 million in the fiscal first quarter of 2001. Comparable store sales of the Bed Bath & Beyond stores in the fiscal first quarter of 2002 grew by approximately 13.2%, compared with an increase of approximately 4.4% in last year's fiscal first quarter.

As of June 1, 2002, there were 409 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 13 new stores opened during the fiscal first quarter. Including approximately 357,000 square feet added by the new units, total store space of the Bed Bath & Beyond stores at the end of the fiscal first quarter was approximately 15,081,000 square feet, an increase of approximately 20.3% over total store space of the Bed Bath & Beyond stores of approximately 12,533,000 square feet at the end of the corresponding period last year. Since the beginning of the fiscal second quarter on June 2, 2002, 6 new Bed Bath & Beyond stores have been opened, bringing the total number of stores now operating to 415 stores in 44 states and Puerto Rico. Including those already opened year-to-date, the Company plans to open approximately 88 stores, in both new and existing markets, during fiscal 2002, (which ends on March 1, 2003).

In addition, during the fiscal first quarter the Company acquired Harmon Stores, Inc., a health and beauty care retailer.

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. Its stock is traded on NASDAQ under the symbol "BBBY" and is 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.

The accompanying consolidated tables include the accounts of the Company and its subsidiaries, all of which are wholly owned. The accounts of Harmon Stores, Inc. are included from the date of acquisition (March 5, 2002).

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

                                                       Three Months Ended

                                                     June 1,       June 2,
                                                      2002          2001

    Net sales                                       $776,798       $575,833

    Cost of sales                                    458,436        340,874

      Gross profit                                   318,362        234,959

    Selling, general and administrative expenses     245,661        189,357

      Operating profit                                72,701         45,602

    Interest income                                    2,582          3,190

      Earnings before provision for income taxes      75,283         48,792

    Provision for income taxes                        28,984         18,785

      Net earnings                                   $46,299        $30,007

    Net earnings per share - Basic                   $  0.16        $  0.10
    Net earnings per share - Diluted                 $  0.15        $  0.10

    Weighted average shares outstanding - Basic      291,726        288,467
    Weighted average shares outstanding - Diluted    300,674        297,479

                         Consolidated Balance Sheets
                          (in thousands, unaudited)

                                                    June 1,         June 2,
                                                     2002            2001

    Current assets:
      Cash and cash equivalents                     $380,435       $275,966
      Merchandise inventories                        850,041        696,896
      Other current assets                            50,935         44,960

        Total current assets                       1,281,411      1,017,822

    Investment securities                            146,673             --
    Property and equipment, net                      357,914        312,659
    Other assets                                      23,951          7,309

                                                  $1,809,949     $1,337,790

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable                              $329,317       $260,121
      Accrued expenses and other
       current liabilities                           225,813        145,432
      Income taxes payable                            58,327         35,252

        Total current liabilities                    613,457        440,805

    Deferred rent and other liabilities               45,232         27,992

        Total liabilities                            658,689        468,797

    Total shareholders' equity                     1,151,260        868,993

                                                  $1,809,949     $1,337,790

                    Consolidated Statements of Cash Flows
                          (in thousands, unaudited)

                                                       Three Months Ended

                                                     June 1,        June 2,
                                                       2002           2001

    Cash Flows from Operating Activities:

    Net earnings                                     $46,299        $30,007
    Adjustments to reconcile
     net earnings to net cash
      provided by operating activities:
      Depreciation and amortization                   17,195         14,418
      Tax benefit from exercise of stock options       6,947         13,113
      Deferred income taxes                           (3,177)          (288)
    (Increase) decrease in assets,
     net of effect of acquisition:
        Merchandise inventories                      (80,159)       (90,192)
        Other current assets                          (3,961)        (3,360)
        Other assets                                      (1)            47
    Increase in liabilities,
     net of effect of acquisition:
        Accounts payable                              52,496         67,720
        Accrued expenses and other
         current liabilities                          30,771         16,632
        Income taxes payable                           7,139          3,264
        Deferred rent and other liabilities            4,218            843

    Net cash provided by operating activities         77,767         52,204

    Cash Flows from Investing Activities:

    Purchase of investment securities                (94,764)            --
    Acquisition, net of cash acquired                (24,097)            --
    Capital expenditures                             (11,631)       (24,421)

    Net cash used in investing activities           (130,492)       (24,421)

    Cash Flows from Financing Activities:

    Proceeds from exercise of stock options            3,664          8,855

    Net cash provided by financing activities          3,664          8,855

    Net (decrease) increase in cash
     and cash equivalents                            (49,061)        36,638

    Cash and cash equivalents:
     Beginning of period                             429,496        239,328
     End of period                                  $380,435       $275,966

SOURCE Bed Bath & Beyond Inc.

Investors - Ronald Curwin, Chief Financial Officer and Treasurer, ext. 4550, Kenneth C. Frankel, Director of Financial Planning, ext. 4554, or
Paula J. Marbach, Investor Relations, ext. 4552, all of Bed Bath & Beyond Inc., +1-908-688-0888, fax, +1-908-810-8813