* Net Earnings Per Share of $.39 for Quarter
* Quarterly Net Sales Increase by 14.6%
* Comparable Quarterly Store Sales Increase by 4.8%
UNION, N.J., Sept. 22 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $120.0 million ($.39 per share) in the fiscal second quarter ended August 28, 2004, an increase of approximately 23.5% from the $97.2 million ($.32 per share) earned in the fiscal second quarter of 2003. Net sales for the fiscal second quarter of 2004 were approximately $1.3 billion, an increase of approximately 14.6% from net sales of approximately $1.1 billion in the fiscal second quarter of 2003. Comparable store sales in the fiscal second quarter of 2004 grew by approximately 4.8%, compared with an increase of approximately 5.9% in last year's fiscal second quarter.
For the fiscal first half ended August 28, 2004, net earnings increased 30.6% to $202.1 million ($.66 per share) from $154.7 million ($.51 per share) earned in the comparable period of the prior year. Net sales for the fiscal first half of 2004 rose 18.4% to approximately $2.4 billion from approximately $2.0 billion in the corresponding period of the prior year. Comparable store sales for the fiscal first half of 2004 increased by approximately 4.9%, compared with an increase of approximately 5.2% in the comparable period a year ago.
As of August 28, 2004, the Company operated a total of 661 stores, including 606 Bed Bath & Beyond stores (of which 14 were opened during the fiscal second quarter) in 44 states and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. (acquired in fiscal 2003) operated 24 stores in 6 states, and Harmon Stores, Inc. (acquired in fiscal 2002) operated 31 stores in 3 states. Consolidated total square feet of store space as of August 28, 2004 was approximately 21.3 million square feet.
During the remainder of fiscal 2004 (which ends on February 26, 2005) the Company plans to open approximately 54 Bed Bath & Beyond stores, in both new and existing markets, 2 Christmas Tree Shops and approximately 4 Harmon Stores.
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 and the NASDAQ-100 Index. The Company is counted among the Fortune 500, the Forbes 500 and the Business Week 50.
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 Six Months Ended
August 28, August 30, August 28, August 30,
2004 2003 2004 2003
Net sales $1,273,960 $1,111,445 $2,374,877 $2,005,313
Cost of sales 743,131 652,300 1,387,274 1,178,988
Gross profit 530,829 459,145 987,603 826,325
Selling, general and
administrative
expenses 341,721 303,278 669,788 580,008
Operating profit 189,108 155,867 317,815 246,317
Interest income 3,676 2,195 6,774 5,254
Earnings before
provision for
income taxes 192,784 158,062 324,589 251,571
Provision for income
taxes 72,776 60,854 122,532 96,855
Net earnings $120,008 $97,208 $202,057 $154,716
Net earnings per
share - Basic $0.40 $0.33 $0.67 $0.52
Net earnings per
share - Diluted $0.39 $0.32 $0.66 $0.51
Weighted average shares
outstanding - Basic 300,778 295,811 300,598 295,387
Weighted average shares
outstanding - Diluted 306,495 304,172 306,539 303,605
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 28, August 30,
2004 2003
Assets
Current assets:
Cash and cash equivalents $846,350 $617,381
Short term investment securities 105,498 65,269
Merchandise inventories 1,052,813 958,778
Other current assets 108,443 78,410
Total current assets 2,113,104 1,719,838
Long term investment securities 305,832 119,847
Property and equipment, net 534,795 477,213
Goodwill 147,559 145,932
Other assets 21,559 26,115
$3,122,849 $2,488,945
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $428,393 $386,335
Accrued expenses and other current
liabilities 256,482 274,786
Merchandise credit and gift card
liabilities 69,098 50,198
Income taxes payable 50,469 55,049
Total current liabilities 804,442 766,368
Deferred rent and other liabilities 110,877 79,992
Total liabilities 915,319 846,360
Total shareholders' equity 2,207,530 1,642,585
$3,122,849 $2,488,945
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
August 28, August 30,
2004 2003
Cash Flows from Operating Activities:
Net earnings $202,057 $154,716
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 46,168 40,257
Amortization of bond premium 585 649
Tax benefit from exercise of stock options 5,947 18,634
Deferred income taxes 1,070 4,037
(Increase) decrease in assets, net of effect
of acquisition:
Merchandise inventories (40,479) 26,498
Other current assets (14,842) (10,002)
Other assets (85) (6,946)
Increase (decrease) in liabilities, net of
effect of acquisition:
Accounts payable 29,743 7,026
Accrued expenses and other current
liabilities (10,798) 12,789
Merchandise credit and gift card
liabilities 5,910 6,016
Income taxes payable 16,624 (16,789)
Deferred rent and other liabilities 1,736 10,545
Net cash provided by operating activities 243,636 247,430
Cash Flows from Investing Activities:
Purchase of investment securities (247,355) (130,975)
Redemption of investment securities 87,808 194,770
Payment for acquisition, net of cash acquired -- (175,487)
Capital expenditures (64,793) (30,126)
Net cash used in investing activities (224,340) (141,818)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 8,706 17,314
Payment of deferred purchase price for
acquisition (6,667) --
Prepayment of acquired debt -- (21,215)
Net cash provided by (used in) financing
activities 2,039 (3,901)
Net increase in cash and cash equivalents 21,335 101,711
Cash and cash equivalents:
Beginning of period 825,015 515,670
End of period $846,350 $617,381
SOURCE Bed Bath & Beyond Inc.
CONTACT:
Investor Contacts: Ronald Curwin, Chief Financial Officer and Treasurer,
+1-908-688-0888, Ext. 4550, or
Kenneth C. Frankel, Director of Financial Planning,
+1-908-688-0888, Ext. 4554, or
Paula J. Marbach, Investor Relations,
+1-908-810-8813, Ext. 4552, all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com
(BBBY)