- 10th Consecutive Year of Record Earnings Since 1992 IPO - Comparable Store Sales Increase by 11.9% in Fourth Quarter, 7.1% in Fiscal Year
Bed Bath & Beyond Inc. today reported net earnings of $82.7 million ($.28 per share) in the fiscal fourth quarter of 2001 ended March 2, 2002, an increase of approximately 28.5% from the $64.3 million ($.22 per share) earned in the fiscal fourth quarter of 2000. Net sales for the fiscal fourth quarter were $879.1 million, an increase of approximately 17.8% from the fiscal fourth quarter of 2000. The fiscal fourth quarter of 2001 consisted of thirteen weeks, one week less than the fourteen weeks in the fiscal fourth quarter of 2000. Comparable store sales for the fiscal fourth quarter of 2001 (thirteen weeks vs. thirteen weeks) increased by approximately 11.9%, compared with an increase of approximately 4.9% in last year's fiscal fourth quarter.Net earnings for fiscal 2001 totaled $219.6 million ($.74 per share), exceeding fiscal 2000 net earnings of $171.9 million ($.59 per share) by approximately 27.7%. Fiscal 2001 was the 10th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2001 were $2.9 billion, an increase of approximately 22.2% from the prior fiscal year. Fiscal 2001 consisted of fifty-two weeks, one week less than the fifty-three weeks in fiscal 2000. Comparable store sales for fiscal 2001 (fifty-two weeks vs. fifty-two weeks) increased by approximately 7.1%, compared with an increase of approximately 5.0% in fiscal 2000.
During the fiscal fourth quarter of 2001, six new stores were opened. At the end of fiscal 2001, Bed Bath & Beyond Inc. operated 396 stores in 44 states, including 85 new stores opened during the year. Included in the fiscal 2001 openings were the Company's first store in New Hampshire, as well as a store in Bayamon, Puerto Rico, its first store outside the Continental U.S. Total store space grew to approximately 14,724,000 square feet, an increase of approximately 2,520,000 square feet (20.6%) over total store space of approximately 12,204,000 square feet occupied by 311 stores in 43 states operating at the end of fiscal 2000.
On March 5, 2002, subsequent to the end of fiscal 2001, Bed Bath & Beyond Inc. completed and announced the acquisition of Harmon Stores, Inc., a health and beauty aid retailer. Since this acquisition occurred after the conclusion of fiscal 2001, it had no effect on Bed Bath & Beyond's fiscal 2001 results, and is not reflected in this press release or in the tables that follow.
Since the beginning of the current fiscal year on March 3, 2002, five new Bed Bath & Beyond stores have been opened. These openings bring the total Bed Bath & Beyond stores now in operation to 401 in 44 states. Including the five stores already opened, the Company plans to open approximately 88 new Bed Bath & Beyond stores, in both new and existing markets, during fiscal 2002.
Bed Bath & Beyond Inc. is a nationwide chain of stores selling better quality domestics merchandise and home furnishings. Its stock is traded on NASDAQ under the symbol "BBBY" and is 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)
Three Months Ended Twelve Months Ended
March 2, March 3, March 2, March 3,
2002 2001 2002 2001
(13 Weeks) (14 Weeks) (52 Weeks) (53 Weeks)
Net sales $879,055 $746,107 $2,927,962 $2,396,655
Cost of sales,
including buying,
occupancy and
indirect costs 508,820 434,305 1,720,396 1,410,196
Gross profit 370,235 311,802 1,207,566 986,459
Selling, general
and administrative
expenses 238,158 209,904 861,466 713,621
Operating
profit 132,077 101,898 346,100 272,838
Interest income 2,353 3,536 10,972 9,001
Earnings before
provision for
income taxes 134,430 105,434 357,072 281,839
Provision for
income taxes 51,756 41,119 137,473 109,917
Net earnings $82,674 $64,315 $219,599 $171,922
Net earnings
per share - Basic $0.28 $0.22 $0.76 $0.61
Net earnings
per share - Diluted $0.28 $0.22 $0.74 $0.59
Weighted average
shares outstanding
- Basic 291,061 286,658 289,877 283,925
Weighted average
shares outstanding
- Diluted 300,009 295,808 298,667 292,876
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
March 2, March 3,
2002 2001
Assets
Current assets:
Cash and cash equivalents $429,496 $239,328
Merchandise inventories 753,972 606,704
Other current assets 43,249 39,681
Total current assets 1,226,717 885,713
Long term investment 51,909 0
Property and equipment, net 361,741 302,656
Other assets 7,150 7,356
$1,647,517 $1,195,725
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $270,917 $192,401
Accrued expenses and other
current liabilities 190,923 128,800
Income taxes payable 49,438 31,988
Total current liabilities 511,278 353,189
Deferred rent and other liabilities 41,889 25,518
Total liabilities 553,167 378,707
Total shareholders' equity 1,094,350 817,018
$1,647,517 $1,195,725
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
March 2, March 3,
2002 2001
(52 Weeks) (53 Weeks)
Cash Flows from Operating Activities:
Net earnings $219,599 $171,922
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Depreciation and amortization 62,547 46,650
Tax benefit from exercise
of stock options 31,980 48,295
Deferred income taxes 1,733 (3,939)
(Increase) decrease in assets:
Merchandise inventories (147,268) (136,271)
Other current assets 644 2,627
Other assets 206 (1,124)
Increase (decrease) in liabilities:
Accounts payable 78,516 47,287
Accrued expenses and other
current liabilities 62,123 20,721
Income taxes payable 17,450 (1,602)
Deferred rent and other
liabilities 10,426 3,370
Net cash provided by operating activities 337,956 197,936
Cash Flows from Investing Activities:
Purchase of long term investment (51,909) 0
Capital expenditures (121,632) (140,395)
Net cash used in investing activities (173,541) (140,395)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 25,753 37,756
Net cash provided by financing activities 25,753 37,756
Net increase in cash and cash equivalents 190,168 95,297
Cash and cash equivalents:
Beginning of period 239,328 144,031
End of period $429,496 $239,328
SOURCE Bed Bath & Beyond Inc.
CONTACT: Investor - Ronald Curwin, Chief Financial Officer and Treasurer, ext. 4550, Kenneth C. Frankel, Director of Financial Planning, ext. 4554, or Paula J. Marbach, Investor Relations, ext. 4552, all of Bed Bath & Beyond Inc., +1-908-688-0888, fax +1-908-810-8813
URL: http://www.bedbath.com