- 29th Consecutive Quarter of Record Earnings Since 1992 IPO
- Quarterly Net Sales Increase of 32.7%
- Quarterly Comparable Store Sales Increase by 9.7%
UNION, N.J., Sept. 22 /PRNewswire/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported that in the fiscal second quarter (thirteen weeks) ended August 28, 1999, as compared with the fiscal second quarter (thirteen weeks) ended August 29, 1998, net sales rose by 32.7%, net earnings increased by 30.4%, and net earnings per share grew to $.23 from $.18.
Net earnings for the fiscal second quarter of 1999 were $33.2 million, exceeding $25.5 million earned in the fiscal second quarter of the prior year. Net sales for the fiscal second quarter were $457.6 million compared to net sales of $344.9 million achieved in the corresponding quarter of the prior year. Comparable store sales for the fiscal second quarter increased by approximately 9.7%.
For the fiscal first half (twenty-six weeks) ended August 28, 1999, net earnings increased 32.8% to $51.1 million ($.35 per share) from $38.5 million ($.27 per share) earned in the comparable period (twenty-six weeks) of the prior year. Net sales for the fiscal six months rose 32.9% to $817.0 million from $614.5 million for the corresponding period of the prior year. Comparable store sales for the first fiscal half increased by approximately 9.8%.
Total store space as of the end of the fiscal second quarter, during which ten new superstores were opened, grew to approximately 8,286,000 square feet, an increase of approximately 26.7% over total store space of approximately 6,539,000 square feet at the end of the fiscal first half a year ago.
As of August 28, 1999, Bed Bath & Beyond Inc. operated 201 stores in 36 states. Since that date, the Company has opened 11 additional superstores, and expanded one existing unit, bringing the total number of stores to 212 now in operation. Including these stores, the Company has opened 26 new superstores, including its first units in Arkansas and Nevada since the beginning of its fiscal year.
The Company plans to open at least 24 additional superstores, in both new and existing markets, during the remainder of the current fiscal year which ends on February 26, 2000, and expects to be operating at least 236 stores in 39 states by year end. States to be entered for the first time during the remainder of fiscal 1999 are Iowa, Louisiana, and Rhode Island.
Bed Bath & Beyond Inc. is a nationwide chain of superstores selling better quality domestics merchandise and home furnishings. Its stock is traded on NASDAQ under the symbol ``BBBY'' and is included in the NASDAQ-100 Index and, as announced on September 20, 1999 by Standard & Poor's, is to be added shortly to the S&P 500 Index.
This press release may contain forward-looking statements. Important factors which may affect these statements are contained in the Company's Annual Report to Shareholders for the year ended February 27, 1999 and may be contained in any subsequent reports filed by the Company with the Securities and Exchange Commission.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 28, August 29,
1999 1998
Assets
Current assets:
Cash and cash equivalents $130,845 $58,908
Merchandise inventories 439,535 342,525
Prepaid expenses and other current assets 7,545 5,787
Total current assets 577,925 407,220
Property and equipment, net 160,457 126,070
Other assets 31,703 24,636
$770,085 $557,926
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $151,558 $109,506
Accrued expenses and other current
liabilities 109,991 83,110
Income taxes payable 21,124 7,979
Total current liabilities 282,673 200,595
Deferred rent 18,177 14,380
Total liabilities 300,850 214,975
Total shareholders' equity 469,235 342,951
$770,085 $557,926
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except share and per share data)
(unaudited)
Three Months Ended
August 28, % of August 29, % of
1999 Net Sales 1998 Net Sales
Net sales $457,586 100.0% $344,946 100.0%
Cost of sales,
including buying,
occupancy and indirect
costs 272,016 59.4% 203,003 58.9%
Gross profit 185,570 40.6% 141,943 41.1%
Selling, general and
administrative
expenses 131,990 28.8% 100,183 29.0%
Operating profit 53,580 11.7% 41,760 12.1%
Interest income 923 0.2% 571 0.2%
Earnings before
provision for income
taxes 54,503 11.9% 42,331 12.3%
Provision for income
taxes 21,256 4.6% 16,827 4.9%
Net earnings $33,247 7.3% $25,504 7.4%
Net earnings per share
- Basic $0.24 $0.18
Net earnings per share
- Diluted $0.23 $0.18
Weighted average shares
outstanding --
Basic 139,777,975 138,740,110
Weighted average shares
outstanding --
Diluted 144,166,940 142,934,866
Six Months Ended
August 28, % of August 29, % of
1999 Net Sales 1998 Net Sales
Net sales $816,958 100.0% $614,517 100.0%
Cost of sales,
including buying,
occupancy and indirect
costs 485,174 59.4% 362,395 58.9%
Gross profit 331,784 40.6% 252,122 41.1%
Selling, general and
administrative
expenses 250,189 30.6% 189,618 30.9%
Operating profit 81,595 10.0% 62,504 10.2%
Interest income 2,225 0.3% 1,388 0.2%
Earnings before provision
for income taxes 83,820 10.3% 63,892 10.4%
Provision for income
taxes 32,690 4.0% 25,397 4.1%
Net earnings $51,130 6.3% $38,495 6.3%
Net earnings per share
- Basic $0.37 $0.28
Net earnings per share
- Diluted $0.35 $0.27
Weighted average shares
outstanding -- Basic 139,652,739 138,530,307
Weighted average shares
outstanding -- Diluted144,101,941 142,842,389
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
August 28, August 29,
1999 1998
Cash Flows from Operating Activities:
Net earnings $51,130 $38,495
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 14,198 10,743
Deferred income taxes (2,507) (2,356)
Increase in assets:
Merchandise inventories (79,198) (72,168)
Prepaid expenses and other current assets (2,999) (3,464)
Other assets (1,765) (1,291)
Increase (decrease) in liabilities:
Accounts payable 52,188 44,788
Accrued expenses and other current liabilities20,266 9,500
Income taxes payable 4,514 (4,036)
Deferred rent 1,821 1,790
Net cash provided by operating activities 57,648 22,001
Cash Flows from Investing Activities:
Capital expenditures (24,217) (25,432)
Net cash used in investing activities (24,217) (25,432)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 7,018 9,059
Net cash provided by financing activities 7,018 9,059
Net increase in cash and cash equivalents 40,449 5,628
Cash and cash equivalents:
Beginning of period 90,396 53,280
End of period $130,845 $58,908
SOURCE: Bed Bath & Beyond Inc.