UNION, N.J., Sep 24, 2003 /PRNewswire-FirstCall via COMTEX/ -- Bed Bath & Beyond Inc. today reported net earnings of $97.2 million ($.32 per share) in the fiscal second quarter ended August 30, 2003, an increase of approximately 28.8% from the $75.5 million ($.25 per share) earned in the fiscal second quarter of 2002. Net sales for the fiscal second quarter of 2003 were $1.111 billion, an increase of approximately 23.1% from net sales of $903.0 million in the fiscal second quarter of 2002. Comparable store sales in the fiscal second quarter of 2003 grew by approximately 5.9%, compared with an increase of approximately 8.0% in last year's fiscal second quarter.
For the fiscal first half ended August 30, 2003, net earnings increased 27.1% to $154.7 million ($.51 per share) from $121.8 million ($.40 per share) earned in the comparable period of the prior year. Net sales for the fiscal first half of 2003 rose 19.4% to $2.005 billion from $1.680 billion in the corresponding period of the prior year. Comparable store sales for the fiscal first half of 2003 increased by approximately 5.2%, compared with an increase of approximately 10.4% in last year's fiscal first half.
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. since June 19, 2003 (date of acquisition).
As of August 30, 2003, there were 514 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 16 new stores opened during the current fiscal second quarter. During the first six months of fiscal 2003, 24 Bed Bath & Beyond stores were opened. Since the beginning of the fiscal third quarter, 9 additional Bed Bath & Beyond stores have been opened, bringing the total number of Bed Bath & Beyond stores now operating to 523 stores. As of August 30, 2003, Christmas Tree Shops, Inc. operated 24 stores in 6 states and Harmon Stores, Inc., operated 29 stores in 3 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. 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, 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 30, August 31, August 30, August 31,
2003 2002 2003 2002
Net sales $1,111,445 $903,044 $2,005,313 $1,679,842
Cost of sales 652,300 532,709 1,178,988 991,145
Gross profit 459,145 370,335 826,325 688,697
Selling, general and
administrative
expenses 303,278 250,648 580,008 496,309
Operating profit 155,867 119,687 246,317 192,388
Interest income 2,195 3,010 5,254 5,592
Earnings before
provision for income
taxes 158,062 122,697 251,571 197,980
Provision for income
taxes 60,854 47,238 96,855 76,222
Net earnings $97,208 $75,459 $154,716 $121,758
Net earnings per
share - Basic $0.33 $0.26 $0.52 $0.42
Net earnings per
share - Diluted $0.32 $0.25 $0.51 $0.40
Weighted average
shares outstanding
- Basic 295,811 292,441 295,387 292,083
Weighted average
shares outstanding
- Diluted 304,172 300,737 303,605 300,705
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 30, August 31,
2003 2002
Assets
Current assets:
Cash and cash equivalents $617,381 $333,626
Short term investment securities 65,269 100,000
Merchandise inventories 958,778 859,891
Other current assets 78,410 54,011
Total current assets 1,719,838 1,347,528
Long term investment securities 119,847 126,426
Property and equipment, net 477,213 381,761
Goodwill 145,932 16,771
Other assets 26,115 7,173
$2,488,945 $1,879,659
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $386,335 $311,604
Accrued expenses and other
current liabilities 324,984 233,065
Income taxes payable 55,049 49,791
Total current liabilities 766,368 594,460
Deferred rent and other liabilities 79,992 47,481
Total liabilities 846,360 641,941
Total shareholders' equity 1,642,585 1,237,718
$2,488,945 $1,879,659
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
August 30, August 31,
2003 2002
Cash Flows from Operating Activities:
Net earnings $154,716 $121,758
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 40,257 39,319
Amortization of bond premium 649 --
Tax benefit from exercise of stock options 18,634 11,973
Deferred income taxes 4,037 (6,355)
Decrease (increase) in assets, net of effect
of acquisition:
Merchandise inventories 26,498 (90,009)
Other current assets (10,002) (4,734)
Other assets (6,946) 6
Increase (decrease) in liabilities, net of
effect of acquisition:
Accounts payable 7,026 34,783
Accrued expenses and other current
liabilities 18,805 38,023
Income taxes payable (16,789) (1,397)
Deferred rent and other liabilities 10,545 7,342
Net cash provided by operating activities 247,430 150,709
Cash Flows from Investing Activities:
Purchase of investment securities (130,975) (244,517)
Redemption of investment securities 194,770 70,000
Acquisition, net of cash acquired (175,487) (24,097)
Capital expenditures (30,126) (57,602)
Net cash used in investing activities (141,818) (256,216)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 17,314 9,637
Prepayment of acquired debt (21,215) --
Net cash (used in) provided by financing
activities (3,901) 9,637
Net increase (decrease) in cash and
cash equivalents 101,711 (95,870)
Cash and cash equivalents:
Beginning of period 515,670 429,496
End of period $617,381 $333,626
SOURCE Bed Bath & Beyond Inc.
Investor - 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., phone, +1-908-688-0888, or fax, +1-908-810-8813