- Net Earnings for quarter increase to $.35 per diluted share;
- Quarterly Net Sales Increase by 12.2%; Quarterly Comparable Store Sales Increase by 4.9%
UNION, N.J., June 21 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.35 per diluted share ($100.4 million) in the fiscal first quarter ended May 27, 2006. In the fiscal first quarter of 2005, the Company reported net earnings of $.33 per diluted share ($98.9 million). Net sales for the fiscal first quarter of 2006 were $1.396 billion, an increase of approximately 12.2% from net sales of $1.244 billion reported in the fiscal first quarter of 2005. Comparable store sales in the fiscal first quarter of 2006 increased by approximately 4.9%, compared with an increase of approximately 4.4% in last year's fiscal first quarter.
The fiscal first quarter of 2006 results included incremental stock-based compensation expense resulting from the early adoption, at the beginning of the fiscal third quarter of 2005, of Statement of Financial Accounting Standards 123(R).
As of May 27, 2006, the Company operated a total of 819 stores including 751 Bed Bath & Beyond stores (10 of which were opened during the fiscal first quarter) in 46 states, the District of Columbia and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 30 stores (one of which opened during the fiscal first quarter) in 8 states, and Harmon Stores, Inc. operated 38 stores in 3 states. Consolidated store space as of May 27, 2006 was approximately 25.8 million square feet. Since the beginning of the fiscal second quarter on May 28, 2006, 3 new Bed Bath & Beyond stores and one Christmas Tree Shops store have been opened.
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a nationwide chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops and Harmon. The Company sells a wide assortment of merchandise principally including domestics merchandise and home furnishings as well as food, giftware and health and beauty care items. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard & Poor's 500 and Global 1200 Indices and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes 2000.
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: changes in the retailing environment and consumer preferences and spending habits; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; general economic conditions; unusual weather patterns; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the cost of labor, merchandise and other costs and expenses; and the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program. 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
May 27, May 28,
2006 2005
Net sales $1,395,963 $1,244,421
Cost of sales 805,865 723,640
Gross profit 590,098 520,781
Selling, general and administrative expenses 441,348 369,897
Operating profit 148,750 150,884
Interest income 9,659 7,108
Earnings before provision for income taxes 158,409 157,992
Provision for income taxes 57,978 59,089
Net earnings $100,431 $98,903
Net earnings per share - Basic $0.36 $0.34
Net earnings per share - Diluted $0.35 $0.33
Weighted average shares outstanding - Basic 280,202 294,413
Weighted average shares outstanding - Diluted 285,153 299,055
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 27, May 28,
2006 2005
Assets
Current assets:
Cash and cash equivalents $87,795 $224,528
Short term investment securities 554,472 651,983
Merchandise inventories 1,391,048 1,238,976
Other current assets 135,302 108,943
Total current assets 2,168,617 2,224,430
Long term investment securities 413,424 362,436
Property and equipment, net 765,101 616,315
Other assets 185,617 169,161
$3,532,759 $3,372,342
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $551,244 $481,949
Accrued expenses and other current
liabilities 240,584 255,429
Merchandise credit and gift card
liabilities 120,043 92,660
Income taxes payable 98,690 89,955
Total current liabilities 1,010,561 919,993
Deferred rent and other liabilities 137,727 132,046
Total liabilities 1,148,288 1,052,039
Total shareholders' equity 2,384,471 2,320,303
$3,532,759 $3,372,342
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
May 27, May 28,
2006 2005(1)
Cash Flows from Operating Activities:
Net earnings $100,431 $98,903
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 30,775 25,760
Amortization of bond premium 1,037 1,787
Stock-based compensation 12,977 -
Excess tax benefit from stock-based
compensation 1,204 7,873
Deferred income taxes (10,425) (325)
Increase in assets:
Merchandise inventories (89,328) (86,948)
Trading investment securities (754) -
Other current assets (14,503) (13,847)
Other assets (6) (45)
Increase (decrease) in liabilities:
Accounts payable 38,419 41,495
Accrued expenses and other current
liabilities (8,555) 738
Merchandise credit and gift card
liabilities 6,529 5,599
Income taxes payable 6,660 8,591
Deferred rent and other liabilities 7,583 8,130
Net cash provided by operating activities 82,044 97,711
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (97,194) (102,736)
Redemption of held-to-maturity investment
securities 55,715 10,715
Purchase of available-for-sale investment
securities (396,175) (515,975)
Redemption of available-for-sale investment
securities 267,450 546,300
Capital expenditures (78,722) (42,398)
Net cash used in investing activities (248,926) (104,094)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 6,229 8,803
Excess tax benefit from stock-based
compensation 1,508 -
Repurchase of common stock (757) -
Net cash provided by financing activities 6,980 8,803
Net (decrease) increase in cash and cash
equivalents (159,902) 2,420
Cash and cash equivalents:
Beginning of period 247,697 222,108
End of period $87,795 $224,528
(1) Reflects the accrual for purchases of capital expenditures as a non-
cash investing activity to conform with current presentation.
SOURCE Bed Bath & Beyond Inc.
CONTACT: Investor Relations, +1-908-688-0888, or Fax, +1-908-810-8813,
Ronald Curwin, Ext. 4550, or Kenneth C. Frankel, Ext. 4554, or Paula J.
Marbach, Ext. 4552, all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com
(BBBY)