* Net earnings per share $.59 for quarter, $1.65 for year
* 13th Consecutive Year of Record Earnings Since 1992 IPO
* Quarterly Net Sales Increase by 13.1%, Comparable Quarterly Store Sales
by 5.1%
UNION, N.J., April 6 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $181.0 million ($.59 per share) in the fiscal fourth quarter of 2004 ended February 26, 2005, an increase of approximately 25.5% from the $144.2 million ($.47 per share) earned in the fiscal fourth quarter of 2003. Net sales for the fiscal fourth quarter of 2004 were approximately $1.5 billion, an increase of approximately 13.1% from the fiscal fourth quarter of 2003. Comparable store sales for the fiscal fourth quarter of 2004 increased by approximately 5.1%, on top of an increase of approximately 8.1% in last year's fiscal fourth quarter.
Net earnings for fiscal 2004 totaled $505.0 million ($1.65 per share), exceeding fiscal 2003 net earnings of $399.5 million ($1.31 per share) by approximately 26.4%. Fiscal 2004 was the 13th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2004 were approximately $5.1 billion, an increase of approximately 15.0% from the prior fiscal year. Comparable store sales for fiscal 2004 increased by approximately 4.5% on top of an increase of approximately 6.3% in fiscal 2003.
As previously announced, during the fiscal fourth quarter of 2004, the Company completed its $350 million share repurchase program, announced on December 15, 2004. The number of shares repurchased under this program was approximately 8.8 million.
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. since June 19, 2003 (date of acquisition) and those of Harmon Stores, Inc. (acquired in 2002).
As of February 26, 2005, the Company operated a total of 721 stores including 660 Bed Bath & Beyond stores (20 of which were opened during the fiscal fourth quarter) in 44 states and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 26 stores in 7 states, and Harmon Stores, Inc. operated 35 stores in 3 states (3 of which were opened during the fiscal fourth quarter). Consolidated store space as of February 26, 2005 was approximately 22.9 million square feet.
Since the beginning of the current fiscal year on February 27, 2005, 3 new Bed Bath & Beyond stores have been opened, bringing the total number of Bed Bath & Beyond stores now in operation to 663 in 44 states and Puerto Rico.
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 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: 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)
Three Months Ended Twelve Months Ended
February 26, February 28, February 26, February 28,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited)
Net sales $1,467,646 $1,297,928 $5,147,678 $4,477,981
Cost of sales 817,100 734,576 2,961,377 2,601,317
Gross profit 650,546 563,352 2,186,301 1,876,664
Selling, general
and administrative
expenses 366,925 331,785 1,393,887 1,237,321
Operating profit 283,621 231,567 792,414 639,343
Interest income 7,110 2,983 18,773 10,202
Earnings before
provision for
income taxes 290,731 234,550 811,187 649,545
Provision for income
taxes 109,751 90,302 306,223 250,075
Net earnings $180,980 $144,248 $504,964 $399,470
Net earnings per
share - Basic $0.60 $0.48 $1.68 $1.35
Net earnings per share
- Diluted $0.59 $0.47 $1.65 $1.31
Weighted average
shares outstanding
- Basic 300,366 299,363 300,743 296,854
Weighted average
shares outstanding
- Diluted 305,931 306,394 306,642 304,690
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
February 26, February 28,
2005 2004(1)
(unaudited)
Assets
Current assets:
Cash and cash equivalents $222,108 $294,500
Short term investment securities 629,339 572,095
Merchandise inventories 1,152,028 1,012,334
Other current assets 93,527 90,357
Total current assets 2,097,002 1,969,286
Long term investment securities 324,209 210,788
Property and equipment, net 609,631 516,164
Goodwill 147,559 147,269
Other assets 21,578 21,516
$3,199,979 $2,865,023
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $450,525 $398,650
Accrued expenses and other
current liabilities 254,643 273,851
Merchandise credit and gift card
liabilities 87,061 63,188
Income taxes payable 81,364 33,845
Total current liabilities 873,593 769,534
Deferred rent and other liabilities 122,624 104,669
Total liabilities 996,217 874,203
Total shareholders' equity 2,203,762 1,990,820
$3,199,979 $2,865,023
(1) Reflects the classification of investments in auction rate securities
as investments rather than as cash and cash equivalents to conform
with current presentation.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
February 26, February 28,
2005 2004(1)
(unaudited)
Cash Flows from Operating Activities:
Net earnings $504,964 $399,470
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 97,491 84,645
Amortization of bond premium 1,657 1,185
Tax benefit from exercise of stock options 27,049 64,832
Deferred income taxes 4,056 (3,061)
(Increase) decrease in assets, net of effect
of acquisition:
Merchandise inventories (139,694) (27,058)
Other current assets (7,350) (2,055)
Other assets (145) 5,466
Increase (decrease) in liabilities, net of
effect of acquisition:
Accounts payable 51,875 19,341
Accrued expenses and other current
liabilities (12,733) 17,622
Merchandise credit and gift card
liabilities 23,873 19,006
Income taxes payable 47,519 (37,993)
Deferred rent and other liabilities 17,827 7,042
Net cash provided by operating activities 616,389 548,442
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (484,793) (325,663)
Redemption of held-to-maturity investment
securities 122,349 357,020
Purchase of available-for-sale investment
securities (2,414,778) (1,997,804)
Redemption of available-for-sale investment
securities 2,604,900 1,567,700
Payment for acquisition, net of cash acquired - (175,487)
Capital expenditures (190,721) (112,999)
Net cash used in investing activities (363,043) (687,233)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 31,080 74,597
Repurchase of common stock, including fees (350,151) -
Payment of deferred purchase price for
acquisition (6,667) -
Prepayment of acquired debt - (21,215)
Net cash (used in) provided by financing
activities (325,738) 53,382
Net decrease in cash and cash equivalents (72,392) (85,409)
Cash and cash equivalents:
Beginning of period 294,500 379,909
End of period $222,108 $294,500
(1) Reflects the classification of investments in auction rate securities
as investments rather than as cash and cash equivalents to conform
with current presentation.
SOURCE Bed Bath & Beyond Inc.
CONTACT:
Investor Contacts:
+1-908-688-0888, Ronald Curwin, Chief Financial Officer and Treasurer, Ext. 4550, or
Kenneth C. Frankel, Director of Financial, Planning, Ext. 4554, or
Paula J. Marbach, Investor Relations, Ext. 4552,
Fax: +1-908-810-8813,
All of Bed Bath & Beyond Inc.
(BBBY)