- Net earnings per diluted share $.67 for quarter, $1.92 for year
- 14th Consecutive Year of Record Earnings Since 1992 IPO
- Comparable Quarterly Store Sales Increase by 6.3%, Quarterly Net Sales
by 14.8%
UNION, N.J., April 5 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.67 per diluted share ($197.9 million) in the fiscal fourth quarter of 2005 ended February 25, 2006, an increase in net earnings per diluted share of approximately 13.6% from the $.59 per diluted share ($181.0 million) earned in the fiscal fourth quarter of 2004. Net sales for the fiscal fourth quarter of 2005 were approximately $1.685 billion, an increase of approximately 14.8% from the fiscal fourth quarter of 2004. Comparable store sales for the fiscal fourth quarter of 2005 increased by approximately 6.3%, on top of an increase of approximately 5.1% in last year's fiscal fourth quarter.
Net earnings for fiscal 2005 were $1.92 per diluted share ($572.8 million), exceeding fiscal 2004 net earnings of $1.65 per diluted share ($505.0 million) by approximately 16.4%. Fiscal 2005 was the 14th consecutive year of record earnings since the Company's 1992 IPO. Net sales for fiscal 2005 were approximately $5.810 billion, an increase of approximately 12.9% from the prior fiscal year. Comparable store sales for fiscal 2005 increased by approximately 4.6%, on top of an increase of approximately 4.5% in fiscal 2004.
The fiscal fourth quarter and full year results included incremental stock-based compensation expense resulting from the early adoption, at the beginning of the fiscal third quarter, of Statement of Financial Accounting Standards 123(R).
As previously announced, during the fiscal fourth quarter of 2005, the Company substantially completed its $600 million share repurchase program. The number of shares repurchased under this program was approximately 16.4 million.
As of February 25, 2006, the Company operated a total of 809 stores including 742 Bed Bath & Beyond stores (17 of which were opened during the fiscal fourth quarter) in 46 states, the District of Columbia and Puerto Rico. In addition, as of that date, Christmas Tree Shops, Inc. operated 29 stores in 8 states, and Harmon Stores, Inc. operated 38 stores in 3 states (1 of which was opened during the fiscal fourth quarter). Consolidated store space as of February 25, 2006 was approximately 25.5 million square feet.
Since the beginning of the current fiscal year on February 26, 2006, 4 new Bed Bath & Beyond stores have been opened, bringing the total number of Bed Bath & Beyond stores now in operation to 746 in 46 states, the District of Columbia and Puerto Rico.
Bed Bath & Beyond Inc. is a nationwide chain of retail stores. The Company's stores sell a combination of better quality domestics merchandise, home furnishings, giftware, and health and beauty care items. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard & Poor's 500 and Global 1200 Indices and the NASDAQ-100 Index. The Company is counted among the Fortune 500 and the Forbes 2000.
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
February 25, February 26, February 25, February 26,
2006 2005 2006 2005
(unaudited) (unaudited) (unaudited)
Net sales $1,685,279 $1,467,646 $5,809,562 $5,147,678
Cost of sales 937,459 817,100 3,323,814 2,961,377
Gross profit 747,820 650,546 2,485,748 2,186,301
Selling, general
and administrative
expenses 442,903 366,925 1,606,577 1,393,887
Operating profit 304,917 283,621 879,171 792,414
Interest income 11,252 7,110 35,920 18,773
Earnings before
provision for
income taxes 316,169 290,731 915,091 811,187
Provision for income
taxes 118,247 109,751 342,244 306,223
Net earnings $197,922 $180,980 $572,847 $504,964
Net earnings per
share - Basic $0.68 $0.60 $1.95 $1.68
Net earnings per
share - Diluted $0.67 $0.59 $1.92 $1.65
Weighted average
shares outstanding
- Basic 289,683 300,366 293,899 300,743
Weighted average
shares outstanding
- Diluted 294,401 305,931 298,973 306,642
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
February 25, February 26,
2006 2005
(unaudited)
Assets
Current assets:
Cash and cash equivalents $247,697 $222,108
Short term investment securities 404,113 629,339
Merchandise inventories 1,301,720 1,152,028
Other current assets 118,415 93,527
Total current assets 2,071,945 2,097,002
Long term investment securities 393,862 324,209
Property and equipment, net 738,742 609,631
Other assets 177,591 169,137
$3,382,140 $3,199,979
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $534,910 $450,525
Accrued expenses and other current
liabilities 249,092 254,643
Merchandise credit and gift card liabilities 113,514 87,061
Income taxes payable 92,030 81,364
Total current liabilities 989,546 873,593
Deferred rent and other liabilities 130,144 122,624
Total liabilities 1,119,690 996,217
Total shareholders' equity 2,262,450 2,203,762
$3,382,140 $3,199,979
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
February 25, February 26,
2006 2005(1)
(unaudited)
Cash Flows from Operating Activities:
Net earnings $572,847 $504,964
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation 111,111 97,491
Amortization of bond premium 3,172 1,657
Stock-based compensation cost 26,439 -
Excess tax benefit from stock-based
compensation 20,011 27,049
Deferred income taxes (25,874) 4,056
Increase in assets:
Merchandise inventories (149,692) (139,694)
Trading investment securities (423) -
Other current assets (23,543) (7,350)
Other assets (307) (145)
Increase (decrease) in liabilities:
Accounts payable 64,892 42,517
Accrued expenses and other current
liabilities (5,742) (12,733)
Merchandise credit and gift card
liabilities 26,453 23,873
Income taxes payable 10,666 47,519
Deferred rent and other liabilities 30,425 17,827
Net cash provided by operating activities 660,435 607,031
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (442,356) (484,793)
Redemption of held-to-maturity investment
securities 331,565 122,349
Purchase of available-for-sale investment
securities (1,524,835) (2,414,778)
Redemption of available-for-sale investment
securities 1,788,450 2,604,900
Capital expenditures (220,394) (181,363)
Net cash used in investing activities (67,570) (353,685)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 34,953 31,080
Excess tax benefit from stock-based
compensation 2,682 -
Repurchase of common stock, including fees (598,244) (350,151)
Payment of deferred purchase price for
acquisition (6,667) (6,667)
Net cash used in financing activities (567,276) (325,738)
Net increase (decrease) in cash and cash
equivalents 25,589 (72,392)
Cash and cash equivalents:
Beginning of period 222,108 294,500
End of period $247,697 $222,108
(1) Reflects the accrual for purchases of capital expenditures as a
non-cash investing activity to conform with current presentation.
SOURCE Bed Bath & Beyond Inc.
CONTACT: INVESTOR CONTACTS, +1-908-688-0888, Ronald Curwin, Senior Vice
President of Investor Relations, Ext. 4550, or Kenneth C. Frankel, Director of
Financial Planning, Ext. 4554, or Paula J. Marbach, Investor Relations,
Ext. 4552, Fax: +1-908-810-8813, all of Bed Bath & Beyond Inc.