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Net Earnings Increase 41.8% to $75.1 million ($.25 per share)
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Net Sales Increase by 23.3%
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Comparable Store Sales Grow by 8.0%
UNION, N.J., Dec. 18 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $75.1 million ($.25 per share) in the fiscal third quarter ended November 30, 2002, an increase of approximately 41.8% from the $53.0 million ($.18 per share) earned in the fiscal third quarter of 2001. Net sales for the fiscal third quarter of 2002 were $936.0 million, an increase of approximately 23.3% from net sales of $759.4 million in the fiscal third quarter of 2001. Comparable store sales of the Bed Bath & Beyond stores in the fiscal third quarter of 2002 grew by approximately 8.0%, compared with an increase of approximately 5.8% in last year's fiscal third quarter.
For the fiscal nine months ended November 30, 2002, net earnings increased 43.8% to $196.9 million ($.65 per share) from $136.9 million ($.46 per share) earned in the corresponding fiscal nine months of the prior year. Net sales for the fiscal nine months of 2002 rose 27.7% to $2.6 billion from $2.0 billion for the corresponding period of the prior year. Comparable store sales of the Bed Bath & Beyond stores for the fiscal nine months increased by approximately 9.5%, compared with an increase of approximately 5.0% in the corresponding period a year ago.
As of November 30, 2002, there were 489 Bed Bath & Beyond stores operating in 44 states and Puerto Rico. During the fiscal third quarter, 55 new Bed Bath & Beyond stores were opened and two existing stores were relocated. One of the relocated stores will discontinue operations at its prior location during the fiscal fourth quarter. Total store space at the end of the quarter was approximately 17,246,000 square feet, representing an increase of approximately 17.1% over total store space of approximately 14,724,000 square feet occupied by the 396 Bed Bath & Beyond stores operating at the end of fiscal 2001. During the first nine months of fiscal 2002, the Company opened 92 Bed Bath & Beyond stores occupying total store space of approximately 2,522,000 square feet, and one Harmon store.
During the fiscal fourth quarter, the Company expects to open three additional Bed Bath & Beyond stores (one of which has already been opened). This would bring to 95 the total number of new Bed Bath & Beyond stores opened in fiscal 2002, and to 491 the number of Bed Bath & Beyond stores in operation at fiscal year end.
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 Nine Months Ended
Nov. 30, Dec. 1, Nov. 30, Dec. 1,
2002 2001 2002 2001
Net sales $936,030 $759,438 $2,615,872 $2,048,907
Cost of sales 549,806 448,408 1,540,951 1,211,576
Gross profit 386,224 311,030 1,074,921 837,331
Selling, general and
administrative
expenses 266,996 227,281 763,305 623,308
Operating profit 119,228 83,749 311,616 214,023
Interest income 2,905 2,371 8,497 8,619
Earnings before
provision for
income taxes 122,133 86,120 320,113 222,642
Provision for income
taxes 47,021 33,156 123,243 85,717
Net earnings $75,112 $52,964 $196,870 $136,925
Net earnings
per share - Basic $0.26 $0.18 $0.67 $0.47
Net earnings
per share - Diluted $0.25 $0.18 $0.65 $0.46
Weighted average
shares outstanding -
Basic 293,307 290,188 292,491 289,482
Weighted average
shares outstanding -
Diluted 301,345 298,365 300,918 298,219
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 30, December 1,
2002 2001
Assets
Current assets:
Cash and cash equivalents $293,031 $321,332
Short term investment securities 150,000 --
Merchandise inventories 989,074 849,238
Other current assets 73,621 53,239
Total current assets 1,505,726 1,223,809
Long term investment securities 149,180 --
Property and equipment, net 428,876 353,514
Other assets 23,755 7,882
$2,107,537 $1,585,205
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $427,324 $346,264
Accrued expenses and other
current liabilities 249,393 184,159
Income taxes payable 42,329 29,143
Total current liabilities 719,046 559,566
Deferred rent and other liabilities 48,999 32,834
Total liabilities 768,045 592,400
Total shareholders' equity 1,339,492 992,805
$2,107,537 $1,585,205
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
November 30, December 1,
2002 2001
Cash Flows from Operating Activities:
Net earnings $196,870 $136,925
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 57,066 45,687
Tax benefit from exercise of stock options 26,945 22,156
Deferred income taxes (9,533) (760)
(Increase) decrease in assets, net of effect
of acquisition:
Merchandise inventories (219,192) (242,534)
Other current assets (22,041) (7,915)
Other assets 195 (526)
Increase (decrease) in liabilities,
net of effect of acquisition:
Accounts payable 150,503 153,863
Accrued expenses and other current liabilities 54,351 55,359
Income taxes payable (8,859) (2,845)
Deferred rent and other liabilities 9,735 2,433
Net cash provided by operating activities 236,040 161,843
Cash Flows from Investing Activities:
Purchase of short term investment securities (150,000) --
Purchase of long term investment securities (167,271) --
Redemption of long term investment securities 70,000 --
Acquisition, net of cash acquired (24,097) --
Capital expenditures (122,464) (96,545)
Net cash used in investing activities (393,832) (96,545)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 21,327 16,706
Net cash provided by financing activities 21,327 16,706
Net (decrease) increase in cash and
cash equivalents (136,465) 82,004
Cash and cash equivalents:
Beginning of period 429,496 239,328
End of period $293,031 $321,332
SOURCE Bed Bath & Beyond Inc.
CONTACT:
Ronald Curwin, Chief Financial Officer and Treasurer,
+1-908-688-0888, ext. 4550, Kenneth C. Frankel, Director of Financial
Planning, +1-908-688-0888, ext. 4554, or Paula J. Marbach, Investor Relations,
+1-908-688-0888, ext. 4552, fax - +1-908-810-8813/