UNION, N.J., Sept. 25 /PRNewswire/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported that in the fiscal second quarter (thirteen weeks) ended September 1, 2001, as compared with the fiscal second quarter (thirteen weeks) ended August 26, 2000, net earnings increased by 23.8% and net earnings per share grew to $.18 from $.15, on an increase in net sales of 21.1%.
Net earnings for the fiscal second quarter of 2001 were $54.0 million, compared with $43.6 million earned in the fiscal second quarter of the prior year. Net sales for the second quarter were $713.6 million compared to net sales of $589.4 million achieved in the corresponding quarter of the prior year. Comparable store sales for the fiscal second quarter increased by approximately 4.8%.
For the fiscal first half (twenty-six weeks) ended September 1, 2001, net earnings increased 25.4% to $84.0 million ($.28 per share) from $66.9 million ($.23 per share) earned in the comparable period (twenty-six weeks) of the prior year. Net sales for the fiscal six months rose 23.0% to $1.3 billion from $1.0 billion for the corresponding period of the prior year. Comparable stores sales for the fiscal first half increased by approximately 4.6%.
Per share amounts have been adjusted to reflect the two-for-one stock split of the Company's common stock on August 11, 2000 (which was effected in the form of a 100% stock dividend).
Total store space as of the end of the fiscal second quarter, during which 22 new stores were opened, grew to approximately 13,159,000 square feet, an increase of approximately 21.8% over total store space of approximately 10,808,000 square feet at the end of the fiscal first half a year ago.
As of September 1, 2001, Bed Bath & Beyond Inc. operated 344 stores. Since that date, the Company has opened 15 additional stores bringing to 359 stores in 44 states the total number of stores now in operation. Including these stores, the Company has opened 48 new stores, including its first unit in New Hampshire, since the beginning of its fiscal year.
The Company plans to open approximately 32 additional stores, in both new and existing markets, during the remainder of the current fiscal year, and expects to be operating approximately 391 stores in 44 states and one U.S. territory at year end. This includes a store in Puerto Rico, the Company's first store outside the Continental U.S., expected to open after Thanksgiving.
Bed Bath & Beyond Inc. is a nationwide chain of superstores selling 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 and the NASDAQ-100 Index.
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 the 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
September 1, August 26, September 1, August 26,
2001 2000 2001 2000
Net sales $713,636 $589,381 $1,289,469 $1,048,544
Cost of sales,
including buying,
occupancy and
indirect costs 422,294 348,097 763,168 619,967
Gross profit 291,342 241,284 526,301 428,577
Selling, general
and administrative
expenses 206,670 171,275 396,027 322,229
Operating profit 84,672 70,009 130,274 106,348
Interest income 3,058 1,431 6,248 3,393
Earnings before
provision for
income taxes 87,730 71,440 136,522 109,741
Provision for
income taxes 33,776 27,862 52,561 42,799
Net earnings $53,954 $43,578 $83,961 $66,942
Net earnings
per share - Basic $0.19 $0.15 $0.29 $0.24
Net earnings
per share - Diluted $0.18 $0.15 $0.28 $0.23
Weighted average
shares outstanding
- Basic 289,791 282,872 289,129 282,298
Weighted average
shares outstanding
- Diluted 298,816 291,363 298,148 290,661
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
September 1, August 26,
2001 2000
Assets
Current assets:
Cash and cash equivalents $338,770 $147,700
Merchandise inventories 733,157 594,602
Prepaid expenses and other current assets 46,403 38,635
Total current assets 1,118,330 780,937
Property and equipment, net 322,706 245,686
Other assets 7,691 10,904
$1,448,727 $1,037,527
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $296,166 $214,250
Accrued expenses and other current liabilities 156,815 120,974
Income taxes payable 31,649 32,074
Total current liabilities 484,630 367,298
Deferred rent and other liabilities 30,415 21,616
Total liabilities 515,045 388,914
Total shareholders' equity 933,682 648,613
$1,448,727 $1,037,527
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
September 1, August 26,
2001 2000
Cash Flows from Operating Activities:
Net earnings $83,961 $66,942
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 29,729 20,691
Tax benefit from exercise of stock options 18,856 13,312
Deferred income taxes (363) (3,865)
Increase in assets:
Merchandise inventories (126,453) (124,169)
Prepaid expenses and other current assets (3,112) (2,360)
Other assets (335) (889)
Increase (decrease) in liabilities:
Accounts payable 103,765 69,136
Accrued expenses and other current liabilities 28,015 12,895
Income taxes payable (339) (1,516)
Deferred rent 1,650 1,644
Net cash provided by operating activities 135,374 51,821
Cash Flows from Investing Activities:
Capital expenditures (49,779) (57,466)
Net cash used in investing activities (49,779) (57,466)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 13,847 9,314
Net cash provided by financing activities 13,847 9,314
Net increase in cash and cash equivalents 99,442 3,669
Cash and cash equivalents:
Beginning of period 239,328 144,031
End of period $338,770 $147,700
SOURCE Bed Bath & Beyond Inc.
CONTACT: 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, fax, +1-908-810-8813, all of Bed Bath & Beyond Inc./