- Net Earnings for Quarter of
- Quarterly Net Sales Decrease by 0.7%
- Quarterly Comparable Store Sales Decrease by 5.6%
- Estimates Earnings Per Diluted Share of
UNION, N.J.,
For the fiscal nine months ended
Based on the current and prospective macroeconomic and retail
environments, the Company now estimates it will earn approximately
As of
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 including the housing market, fuel costs, and a declining overall macroeconomic environment; 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; 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; the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program; the impact of failed auctions for auction rate securities held by the Company; and matters arising out of or related to the Company's stock option grants and procedures and related matters, including the outcome of the informal inquiry commenced by the SEC, the possibility that the SEC may not agree with all of the special committee's findings and recommendations and may require additional or different remediation, any other proceedings which may be brought against the Company by the SEC or other governmental agencies, any tax implications relating to the Company's stock option grants, the outcome of a shareholder derivative action filed against certain of the Company's officers and directors and related matters, and the possibility of other private litigation relating to such stock option grants and related matters. 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, December 1, November 29, December 1,
2008 2007 2008 2007
Net sales $1,782,683 $1,794,747 $5,285,066 $5,115,756
Cost of sales 1,089,826 1,046,881 3,196,888 2,989,623
Gross profit 692,857 747,866 2,088,178 2,126,133
Selling, general and
administrative expenses 556,483 544,714 1,645,564 1,547,553
Operating profit 136,374 203,152 442,614 578,580
Interest income 1,396 4,968 8,872 21,575
Earnings before
provision for income
taxes 137,770 208,120 451,486 600,155
Provision for income taxes 50,070 69,888 167,741 210,268
Net earnings $87,700 $138,232 $283,745 $389,887
Net earnings per share
- Basic $0.34 $0.53 $1.11 $1.46
Net earnings per share
- Diluted $0.34 $0.52 $1.10 $1.44
Weighted average shares
outstanding - Basic 256,150 261,588 256,503 267,074
Weighted average shares
outstanding - Diluted 258,174 265,006 258,805 270,929
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 29, December 1,
2008 2007
Assets
Current assets:
Cash and cash equivalents $233,356 $190,433
Short term investment securities 4,000 186,797
Merchandise inventories 1,920,481 1,797,784
Other current assets 332,321 314,800
Total current assets 2,490,158 2,489,814
Long term investment securities 230,910 128
Property and equipment, net 1,134,802 1,064,081
Other assets 339,520 309,869
$4,195,390 $3,863,892
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $613,217 $680,716
Accrued expenses and other
current liabilities 267,882 263,231
Merchandise credit and
gift card liabilities 165,837 156,789
Current income taxes payable 7,753 15,668
Total current liabilities 1,054,689 1,116,404
Deferred rent and other liabilities 206,465 187,588
Income taxes payable 80,637 86,365
Total liabilities 1,341,791 1,390,357
Total shareholders' equity 2,853,599 2,473,535
$4,195,390 $3,863,892
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
November 29, December 1,
2008 2007
Cash Flows from Operating Activities:
Net earnings $283,745 $389,887
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation 130,744 116,284
Amortization of bond premium - 1,446
Stock-based compensation 32,352 31,233
Tax benefit from stock-based compensation (890) 1,363
Deferred income taxes (23,709) (6,936)
Other 311 -
(Increase) decrease in assets, net
of effect of acquisition:
Merchandise inventories (303,500) (277,476)
Trading investment securities (62) (2,705)
Other current assets (69,322) (85,067)
Other assets (869) 435
Increase (decrease) in liabilities, net
of effect of acquisition:
Accounts payable 62,914 76,197
Accrued expenses and other
current liabilities 7,462 26,301
Merchandise credit and
gift card liabilities (5,415) 9,512
Income taxes payable (20,208) (61,384)
Deferred rent and other liabilities 13,476 20,847
Net cash provided by operating activities 107,029 239,937
Cash Flows from Investing Activities:
Redemption of held-to-maturity
investment securities - 366,232
Purchase of available-for-sale
investment securities - (841,805)
Redemption of available-for-sale
investment securities 95,250 1,167,480
Capital expenditures (162,986) (257,054)
Investment in unconsolidated
joint venture, including fees (4,782) -
Payment for acquisition, net of cash acquired - (85,893)
Net cash (used in) provided
by investing activities (72,518) 348,960
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 16,172 15,741
Excess tax benefit from
stock-based compensation 3,622 4,109
Repurchase of common stock, including fees (45,033) (631,695)
Net cash used in financing activities (25,239) (611,845)
Net increase (decrease) in cash
and cash equivalents 9,272 (22,948)
Cash and cash equivalents:
Beginning of period 224,084 213,381
End of period $233,356 $190,433
SOURCE
CONTACT:
or
Web Site: http://www.bedbath.com