* Net Earnings Per Share of $.27 for Quarter
* Quarterly Net Sales Increase by 23.2%;
Comparable Quarterly Store Sales Increase by 5.1%
UNION, N.J., June 23 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $82.0 million ($.27 per share) in the fiscal first quarter ended May 29, 2004, an increase of approximately 42.7% from the $57.5 million ($.19 per share) earned in the fiscal first quarter of 2003. Net sales for the fiscal first quarter of 2004 were approximately $1.1 billion, an increase of approximately 23.2% from net sales of $893.9 million in the fiscal first quarter of 2003. Comparable store sales in the fiscal first quarter of 2004 grew by approximately 5.1%, compared with an increase of approximately 4.4% in last year's fiscal first quarter.
As of May 29, 2004, there were 592 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 17 new stores opened during the fiscal first quarter. Total store space of the Bed Bath & Beyond stores at the end of the fiscal first quarter was approximately 19.8 million square feet, compared with approximately 17.4 million square feet occupied by the 498 Bed Bath & Beyond stores operating at the end of the corresponding period last year. Including those already opened year-to-date, the Company plans to open 80 to 90 Bed Bath & Beyond stores, in both new and existing markets, during fiscal 2004 (which ends on February 26, 2005).
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. (acquired in 2003) and Harmon Stores, Inc. (acquired in 2002). As of May 29, 2004, Christmas Tree Shops, Inc. operated 24 stores in 6 states, and Harmon Stores, Inc. operated 31 stores in 3 states. Total store space of the Christmas Tree Shops and Harmon Stores as of May 29, 2004, approximated 915,000 and 212,000 square feet, respectively.
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, 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)
(unaudited)
Three Months Ended
May 29, May 31,
2004 2003
Net sales $1,100,917 $893,868
Cost of sales 644,143 526,688
Gross profit 456,774 367,180
Selling, general and administrative expenses 328,067 276,730
Operating profit 128,707 90,450
Interest income 3,098 3,059
Earnings before provision for income taxes 131,805 93,509
Provision for income taxes 49,756 36,001
Net earnings $82,049 $57,508
Net earnings per share - Basic $0.27 $0.19
Net earnings per share - Diluted $0.27 $0.19
Weighted average shares outstanding - Basic 300,417 294,963
Weighted average shares outstanding - Diluted 306,584 303,038
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 29, May 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents $758,101 $683,745
Short term investment securities 56,681 50,682
Merchandise inventories 1,065,519 926,906
Other current assets 106,492 72,477
Total current assets 1,986,793 1,733,810
Long term investment securities 303,833 140,756
Property and equipment, net 516,583 412,883
Goodwill 147,269 15,556
Other assets 21,462 6,966
$2,975,940 $2,309,971
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $428,294 $379,240
Accrued expenses and other current
liabilities 256,253 221,075
Merchandise credit and gift card
liabilities 67,815 46,718
Income taxes payable 32,422 68,010
Total current liabilities 784,784 715,043
Deferred rent and other liabilities 111,562 60,395
Total liabilities 896,346 775,438
Total shareholders' equity 2,079,594 1,534,533
$2,975,940 $2,309,971
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
May 29, May 31,
2004 2003
Cash Flows from Operating Activities:
Net earnings $82,049 $57,508
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 22,427 19,781
Amortization of bond premium 270 306
Tax benefit from exercise of stock options 2,707 13,129
Deferred income taxes 535 (1,462)
(Increase) decrease in assets:
Merchandise inventories (53,185) (11,235)
Other current assets (14,513) (8,736)
Other assets (30) 17
Increase (decrease) in liabilities:
Accounts payable 29,644 16,275
Accrued expenses and other current
liabilities (17,646) 19,059
Merchandise credit and gift card
liabilities 4,627 2,536
Income taxes payable (1,423) (2,998)
Deferred rent and other liabilities 4,640 3,489
Net cash provided by operating activities 60,102 107,669
Cash Flows from Investing Activities:
Purchase of investment securities (158,416) (67,812)
Redemption of investment securities 50,000 125,000
Capital expenditures (22,618) (8,757)
Net cash (used in) provided by investing
activities (131,034) 48,431
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 4,018 11,975
Net cash provided by financing activities 4,018 11,975
Net (decrease) increase in cash and cash
equivalents (66,914) 168,075
Cash and cash equivalents:
Beginning of period 825,015 515,670
End of period $758,101 $683,745
SOURCE Bed Bath & Beyond Inc.
CONTACT:
Ronald Curwin, Chief Financial Officer and Treasurer,
+1-908-688-0888, Ext. 4550, or
Kenneth C. Frankel, Director of Financial
Planning,
+1-908-688-0888, Ext. 4554, or
Paula J. Marbach, Investor Relations,
+1-908-688-0888, Ext. 4552, or
fax, +1-908-810-8813,
all of Bed Bath & Beyond
Inc./