News Release

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Bed Bath & Beyond Inc. Reports Net Earnings Increase of 37.0% in Fiscal Fourth Quarter, 32.2% For Fiscal Year
Mar 31 2004
  • 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/