- Net Earnings Per Share $.47 for Quarter, $1.31 for Year
- 12th Consecutive Year of Record Earnings Since 1992 IPO
- Quarterly Net Sales Increase by 23.7%, Comparable Quarterly Store Sales by 8.1%
UNION, N.J., March 31 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $144.2 million ($.47 per share) in the fiscal fourth quarter of 2003 ended February 28, 2004, an increase of approximately 37.0% from the $105.3 million ($.35 per share) earned in the fiscal fourth quarter of 2002. Net sales for the fiscal fourth quarter of 2003 were $1.298 billion, an increase of approximately 23.7% from the fiscal fourth quarter of 2002. Comparable store sales for the fiscal fourth quarter of 2003 increased by approximately 8.1%, compared with an increase of approximately 4.1% in last year's fiscal fourth quarter.
Net earnings for fiscal 2003 totaled $399.5 million ($1.31 per share), exceeding fiscal 2002 net earnings of $302.2 million ($1.00 per share) by approximately 32.2%. Fiscal 2003 was the 12th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2003 were $4.478 billion, an increase of approximately 22.2% from the prior fiscal year. Comparable store sales for fiscal 2003 increased by approximately 6.3%, compared with an increase of approximately 7.9% in fiscal 2002.
During the fiscal fourth quarter of 2003, 6 new Bed Bath & Beyond stores were opened and one existing store was relocated. At the end of fiscal 2003, Bed Bath & Beyond Inc. operated 575 Bed Bath & Beyond stores in 44 states and Puerto Rico, including 85 new Bed Bath & Beyond stores which began operations during the year. Total store space of the Bed Bath & Beyond stores grew to approximately 19,353,000 square feet, an increase of approximately 2,098,000 square feet over total store space of approximately 17,255,000 square feet occupied by 490 Bed Bath & Beyond stores in 44 states and Puerto Rico operating at the end of fiscal 2002.
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 28, 2004, Christmas Tree Shops, Inc. operated 24 stores in 6 states, and Harmon Stores, Inc. operated 30 stores in 3 states.
Since the beginning of the current fiscal year on February 29, 2004, 6 new Bed Bath & Beyond stores have been opened. These openings bring the total number of Bed Bath & Beyond stores now in operation to 581 in 44 states and Puerto Rico.
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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, the NASDAQ-100 Index, 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)
Three Months Ended Twelve Months Ended
(unaudited)
February 28, March 1, February 28, March 1,
2004 2003 2004 2003
Net sales $1,297,928 $1,049,292 $4,477,981 $3,665,164
Cost of sales 734,576 605,666 2,601,317 2,146,617
Gross profit 563,352 443,626 1,876,664 1,518,547
Selling, general
and administrative
expenses 331,785 275,185 1,237,321 1,038,490
Operating profit 231,567 168,441 639,343 480,057
Interest income 2,983 2,794 10,202 11,291
Earnings before
provision for
income taxes 234,550 171,235 649,545 491,348
Provision for income
taxes 90,302 65,926 250,075 189,169
Net earnings $144,248 $105,309 $399,470 $302,179
Net earnings
per share - Basic $0.48 $0.36 $1.35 $1.03
Net earnings
per share - Diluted $0.47 $0.35 $1.31 $1.00
Weighted average shares
outstanding - Basic 299,363 294,236 296,854 292,927
Weighted average shares
outstanding - Diluted 306,394 301,833 304,690 301,147
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
February 28, March 1,
2004 2003
Assets
Current assets:
Cash and cash equivalents $825,015 $515,670
Short term investment securities 41,580 100,927
Merchandise inventories 1,012,334 915,671
Other current assets 90,357 62,123
Total current assets 1,969,286 1,594,391
Long term investment securities 210,788 148,005
Property and equipment, net 516,164 423,907
Goodwill 147,269 15,556
Other assets 21,516 6,983
$2,865,023 $2,188,842
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $398,650 $362,965
Accrued expenses and other current
liabilities 337,039 246,198
Income taxes payable 33,845 71,008
Total current liabilities 769,534 680,171
Deferred rent and other liabilities 104,669 56,750
Total liabilities 874,203 736,921
Total shareholders' equity 1,990,820 1,451,921
$2,865,023 $2,188,842
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
February 28, March 1,
2004 2003
Cash Flows from Operating Activities:
Net earnings $399,470 $302,179
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 84,645 74,825
Amortization of bond premium 1,185 985
Tax benefit from exercise of stock options 64,832 31,176
Deferred income taxes (3,061) (13,291)
(Increase) decrease in assets, net of effects
of acquisitions:
Merchandise inventories (27,058) (145,789)
Other current assets (2,055) (7,927)
Other assets 5,466 190
Increase (decrease) in liabilities, net of
effects of acquisitions:
Accounts payable 19,341 86,144
Accrued expenses and other current liabilities 36,628 52,891
Income taxes payable (37,993) 20,378
Deferred rent and other liabilities 7,042 17,556
Net cash provided by operating activities 548,442 419,317
Cash Flows from Investing Activities:
Purchase of investment securities (361,013) (368,008)
Redemption of investment securities 357,020 170,000
Payments for acquisitions, net of cash acquired (175,487) (24,097)
Capital expenditures (112,999) (135,254)
Net cash used in investing activities (292,479) (357,359)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 74,597 24,216
Prepayment of acquired debt (21,215) -
Net cash provided by financing activities 53,382 24,216
Net increase in cash and cash equivalents 309,345 86,174
Cash and cash equivalents:
Beginning of period 515,670 429,496
End of period $825,015 $515,670
SOURCE Bed Bath & Beyond Inc.
/CONTACT: 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, or fax, +1-908-810-8813/