* Net Earnings Increase 39.9% to $75.5 million ($.25 per share) * Net Sales Increase by 26.5% * Comparable Store Sales Grow by 8.0%
UNION, N.J., Sep 25, 2002 /PRNewswire-FirstCall via COMTEX/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $75.5 million ($.25 per share) in the fiscal second quarter ended August 31, 2002, an increase of approximately 39.9% from the $54.0 million ($.18 per share) earned in the fiscal second quarter of 2001. Net sales for the fiscal second quarter of 2002 were $903.0 million, an increase of approximately 26.5% from net sales of $713.6 million in the fiscal second quarter of 2001. Comparable store sales of the Bed Bath & Beyond stores in the fiscal second quarter of 2002 grew by approximately 8.0%, compared with an increase of approximately 4.8% in last year's fiscal second quarter.
For the fiscal first half ended August 31, 2002, net earnings increased 45.0% to $121.8 million ($.40 per share) from $84.0 million ($.28 per share) earned in the comparable period of the prior year. Net sales for the fiscal six months of 2002 rose 30.3% to $1.7 billion from $1.3 billion for the corresponding period of the prior year. Comparable store sales of the Bed Bath & Beyond stores for the fiscal first half increased by approximately 10.4%, compared with an increase of approximately 4.6% in last year's fiscal first half.
As of August 31, 2002, there were 433 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 24 new stores opened during the fiscal second quarter. Including approximately 690,000 square feet added by the new Bed Bath & Beyond units, total store space of the Bed Bath & Beyond stores at the end of the fiscal first half was approximately 15,771,000 square feet, an increase of approximately 19.8% over total store space of approximately 13,159,000 square feet occupied by the 344 Bed Bath & Beyond stores operating at the end of the corresponding period last year. During the first six months of fiscal 2002, the Company opened 37 Bed Bath & Beyond stores occupying approximately 1,047,000 square feet.
Since the beginning of the fiscal third quarter on September 1, 2002, 10 new Bed Bath & Beyond stores have been opened, bringing the total number of stores now operating to 443 stores. The Company plans to open approximately 41 additional Bed Bath & Beyond stores, in both new and existing markets, during the balance of fiscal 2002, primarily in the fiscal third quarter. This would bring the number of new Bed Bath & Beyond stores to approximately 88 for all of fiscal 2002.
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)
(unaudited)
Three Months Ended Six Months Ended
August 31, September 1, August 31, September 1,
2002 2001 2002 2001
Net sales $903,044 $713,636 $1,679,842 $1,289,469
Cost of sales 532,709 422,294 991,145 763,168
Gross profit 370,335 291,342 688,697 526,301
Selling, general and
administrative
expenses 250,648 206,670 496,309 396,027
Operating profit 119,687 84,672 192,388 130,274
Interest income 3,010 3,058 5,592 6,248
Earnings before
provision for
income taxes 122,697 87,730 197,980 136,522
Provision for
income taxes 47,238 33,776 76,222 52,561
Net earnings $75,459 $53,954 $121,758 $83,961
Net earnings
per share - Basic $0.26 $0.19 $0.42 $0.29
Net earnings
per share - Diluted $0.25 $0.18 $0.40 $0.28
Weighted average
shares outstanding
- Basic 292,441 289,791 292,083 289,129
Weighted average
shares outstanding
- Diluted 300,737 298,816 300,705 298,148
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 31, September 1,
2002 2001
Assets
Current assets:
Cash and cash equivalents $333,626 $338,770
Short term investment securities 100,000 --
Merchandise inventories 859,891 733,157
Other current assets 54,011 46,403
Total current assets 1,347,528 1,118,330
Long term investment securities 126,426 --
Property and equipment, net 381,761 322,706
Other assets 23,944 7,691
$1,879,659 $1,448,727
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $311,604 $296,166
Accrued expenses and
other current liabilities 233,065 156,815
Income taxes payable 49,791 31,649
Total current liabilities 594,460 484,630
Deferred rent and other liabilities 47,481 30,415
Total liabilities 641,941 515,045
Total shareholders' equity 1,237,718 933,682
$1,879,659 $1,448,727
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
August 31, September 1,
2002 2001
Cash Flows from Operating Activities:
Net earnings $121,758 $83,961
Adjustments to reconcile net
earnings to net cash
provided by operating activities:
Depreciation and amortization 39,319 29,729
Tax benefit from exercise of stock options 11,973 18,856
Deferred income taxes (6,355) (363)
(Increase) decrease in assets,
net of effect of acquisition:
Merchandise inventories (90,009) (126,453)
Other current assets (4,734) (3,112)
Other assets 6 (335)
Increase (decrease) in liabilities,
net of effect of acquisition:
Accounts payable 34,783 103,765
Accrued expenses and other
current liabilities 38,023 28,015
Income taxes payable (1,397) (339)
Deferred rent and other liabilities 7,342 1,650
Net cash provided by operating activities 150,709 135,374
Cash Flows from Investing Activities:
Purchase of short term
investment securities (100,000) --
Purchase of long term investment securities (74,517) --
Acquisition, net of cash acquired (24,097) --
Capital expenditures (57,602) (49,779)
Net cash used in investing activities (256,216) (49,779)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 9,637 13,847
Net cash provided by financing activities 9,637 13,847
Net (decrease) increase in cash
and cash equivalents (95,870) 99,442
Cash and cash equivalents:
Beginning of period 429,496 239,328
End of period $333,626 $338,770
SOURCE Bed Bath & Beyond Inc.
CONTACT:
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, Fax, +1-908-810-8813, all of
Bed Bath & Beyond Inc., +1-908-688-0888