UNION, N.J., Dec 17, 2003 /PRNewswire-FirstCall via Comtex/ -- Bed Bath & Beyond Inc. today reported net earnings of $100.5 million ($.33 per share) in the fiscal third quarter ended November 29, 2003, an increase of approximately 33.8% from the $75.1 million ($.25 per share) earned in the fiscal third quarter of 2002. Net sales for the fiscal third quarter of 2003 were $1.175 billion, an increase of approximately 25.5% from net sales of $936.0 million in the fiscal third quarter of 2002. Comparable store sales in the fiscal third quarter of 2003 grew by approximately 6.4%.
For the fiscal nine months ended November 29, 2003, net earnings increased 29.6% to $255.2 million ($.84 per share) from $196.9 million ($.65 per share) earned in the comparable period of the prior year. Net sales for the fiscal nine months of 2003 rose 21.6% to $3.180 billion from $2.616 billion in the corresponding period of the prior year. Comparable store sales for the fiscal nine months of 2003 increased by approximately 5.6%.
As of November 29, 2003, there were 569 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 55 new Bed Bath & Beyond stores opened during the fiscal third quarter. Total store space of the Bed Bath & Beyond stores at the end of the fiscal third quarter was approximately 19,196,000 square feet, representing an increase of approximately 1,941,000 square feet (11.2%) since the end of fiscal 2002. During the first nine months of fiscal 2003, the Company opened 79 Bed Bath & Beyond stores and expects to open approximately 7 additional Bed Bath & Beyond stores before the end of its fiscal year on February 28, 2004. Harmon Stores, Inc. also opened one new store during the fiscal third quarter.
The additional openings will bring to approximately 86 the total number of new Bed Bath & Beyond stores opened in fiscal 2003 and to approximately 576 the number of Bed Bath & Beyond stores expected to be in operation at fiscal year-end. During fiscal 2002, the Company opened 95 new Bed Bath & Beyond stores, several of which had been expected to open in fiscal 2003.
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. since June 19, 2003 (date of acquisition). As of November 29, 2003, Christmas Tree Shops, Inc. operated 24 stores in 6 states. Also as of that date, Harmon Stores, Inc. operated 30 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 Nine Months Ended
November 29, November 30, November 29, November 30,
2003 2002 2003 2002
Net sales $1,174,740 $936,030 $3,180,053 $2,615,872
Cost of sales 687,753 549,806 1,866,741 1,540,951
Gross profit 486,987 386,224 1,313,312 1,074,921
Selling, general and
administrative expenses 325,528 266,996 905,536 763,305
Operating profit 161,459 119,228 407,776 311,616
Interest income 1,965 2,905 7,219 8,497
Earnings before
provision for
income taxes 163,424 122,133 414,995 320,113
Provision for
income taxes 62,918 47,021 159,773 123,243
Net earnings $100,506 $75,112 $255,222 $196,870
Net earnings per share
- Basic $0.34 $0.26 $0.86 $0.67
Net earnings per share
- Diluted $0.33 $0.25 $0.84 $0.65
Weighted average shares
outstanding - Basic 297,279 293,307 296,018 292,491
Weighted average shares
outstanding - Diluted 305,156 301,345 304,122 300,918
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 29, November 30,
2003 2002
Assets
Current assets:
Cash and cash equivalents $620,331 $293,031
Short term investment securities 84,059 150,000
Merchandise inventories 1,167,808 989,074
Other current assets 94,825 73,621
Total current assets 1,967,023 1,505,726
Long term investment securities 133,876 149,180
Property and equipment, net 506,064 428,876
Goodwill 145,932 16,771
Other assets 26,166 6,984
$2,779,061 $2,107,537
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $529,440 $427,324
Accrued expenses and other
current liabilities 340,047 249,393
Income taxes payable 27,315 42,329
Total current liabilities 896,802 719,046
Deferred rent and other liabilities 82,316 48,999
Total liabilities 979,118 768,045
Total shareholders' equity 1,799,943 1,339,492
$2,779,061 $2,107,537
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
November 29, November 30,
2003 2002
Cash Flows from Operating Activities:
Net earnings $255,222 $196,870
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 60,686 57,066
Amortization of bond premium 1,079 --
Tax benefit from exercise of stock options 43,691 26,945
Deferred income taxes 2,575 (9,533)
(Increase) decrease in assets,
net of effects of acquisitions:
Merchandise inventories (182,532) (219,192)
Other current assets (24,799) (22,041)
Other assets (6,998) 195
Increase (decrease) in liabilities,
net of effects of acquisitions:
Accounts payable 150,131 150,503
Accrued expenses and other
current liabilities 33,789 54,351
Income taxes payable (44,523) (8,859)
Deferred rent and other liabilities 12,555 9,735
Net cash provided by operating activities 300,876 236,040
Cash Flows from Investing Activities:
Purchase of investment securities (222,224) (317,271)
Redemption of investment securities 252,770 70,000
Payment for acquisitions,
net of cash acquired (175,487) (24,097)
Capital expenditures (79,168) (122,464)
Net cash used in investing activities (224,109) (393,832)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 49,109 21,327
Prepayment of acquired debt (21,215) --
Net cash provided by financing activities 27,894 21,327
Net increase (decrease) in
cash and cash equivalents 104,661 (136,465)
Cash and cash equivalents:
Beginning of period 515,670 429,496
End of period $620,331 $293,031
SOURCE Bed Bath & Beyond Inc.
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, all of Bed Bath & Beyond Inc., Fax: +1-908-810-8813