- Net Earnings Increase to $.45 Per Share
- Net Sales Grow to $1.449 Billion; Up 11.0%
- Comp Store Sales Increase by 3.1%
UNION, N.J., Dec. 21 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $134.6 million ($.45 per share) in the fiscal third quarter ended November 26, 2005, an increase of approximately 10.4% from the $121.9 million ($.40 per share) earned in the fiscal third quarter of 2004. The fiscal third quarter results for 2005 included incremental stock- based compensation expense due to the early adoption of Statement of Financial Accounting Standards 123(R). Net sales for the fiscal third quarter of 2005 were approximately $1.449 billion, an increase of approximately 11.0% from net sales of approximately $1.305 billion in the fiscal third quarter of 2004. Comparable store sales for the fiscal third quarter of 2005 grew by approximately 3.1%.
For the fiscal nine months ended November 26, 2005, net earnings increased approximately 15.7% to $374.9 million ($1.25 per share) from $324.0 million ($1.06 per share) earned in the comparable period of the prior year. Net sales for the fiscal nine months of 2005 rose approximately 12.1% to approximately $4.124 billion from approximately $3.680 billion in the corresponding period of the prior year. Comparable store sales for the fiscal nine months increased by approximately 4.0%.
As of November 26, 2005, the Company operated a total of 793 stores, including 726 Bed Bath & Beyond stores (of which 40 were opened during the fiscal third quarter) in 46 states 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. Two Christmas Tree Shops and two Harmon Stores were opened during the fiscal third quarter. Consolidated store space as of November 26, 2005 was approximately 25.0 million square feet.
During the fiscal fourth quarter of 2005 the Company plans to open approximately 17 Bed Bath & Beyond stores (including 5 that have already opened) in both new and existing markets. The additional openings will bring to approximately 83 the total number of new Bed Bath & Beyond stores opened in fiscal 2005 and to approximately 743 the number of Bed Bath & Beyond stores expected to be in operation at fiscal year-end.
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 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.
(Tables Follow)
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
November 26, November 27, November 26, November 27,
2005 2004 2005 2004
Net sales $1,448,680 $1,305,155 $4,124,283 $3,680,032
Cost of sales 833,317 757,003 2,386,355 2,144,277
Gross profit 615,363 548,152 1,737,928 1,535,755
Selling, general and
administrative
expenses 409,870 357,174 1,163,674 1,026,962
Operating profit 205,493 190,978 574,254 508,793
Interest income 9,555 4,889 24,668 11,663
Earnings before
provision for
income taxes 215,048 195,867 598,922 520,456
Provision for income
taxes 80,428 73,940 223,997 196,472
Net earnings $134,620 $121,927 $374,925 $323,984
Net earnings per
share - Basic $0.45 $0.40 $1.27 $1.08
Net earnings per
share - Diluted $0.45 $0.40 $1.25 $1.06
Weighted average
shares outstanding
- Basic 296,041 301,409 295,304 300,868
Weighted average
shares outstanding
- Diluted 301,075 307,557 300,497 306,878
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 26, November 27,
2005 2004(1)
Assets
Current assets:
Cash and cash equivalents $368,612 $345,157
Short term investment securities 572,420 623,619
Merchandise inventories 1,424,730 1,213,785
Other current assets 147,577 125,639
Total current assets 2,513,339 2,308,200
Long term investment securities 405,518 331,556
Property and equipment, net 696,683 558,496
Goodwill 147,559 147,559
Other assets 21,675 21,148
$3,784,774 $3,366,959
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $604,716 $518,817
Accrued expenses and other current liabilities 267,261 265,505
Merchandise credit and gift card liabilities 97,133 73,442
Income taxes payable 33,511 27,259
Total current liabilities 1,002,621 885,023
Deferred rent and other liabilities 134,576 114,756
Total liabilities 1,137,197 999,779
Total shareholders' equity 2,647,577 2,367,180
$3,784,774 $3,366,959
(1) Reflects the classification of investments in auction rate securities
as investments rather than as cash and cash equivalents to conform
with current presentation.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
November 26, November 27,
2005 2004 (1)
Cash Flows from Operating Activities:
Net earnings $374,925 $323,984
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation 80,440 69,957
Amortization of bond premium 2,265 988
Stock-based compensation cost 14,595 -
Excess tax benefit from stock-based compensation 19,653 24,898
Deferred income taxes (3,815) 1,607
(Increase) decrease in assets:
Merchandise inventories (272,702) (201,451)
Other current assets (52,128) (30,417)
Other assets (159) 305
Increase (decrease) in liabilities:
Accounts payable 154,191 120,167
Accrued expenses and other current
liabilities 12,474 (1,823)
Merchandise credit and gift card liabilities 10,072 10,254
Income taxes payable (47,853) (6,586)
Deferred rent and other liabilities 20,450 3,410
Net cash provided by operating activities 312,408 315,293
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (348,149) (366,710)
Redemption of held-to-maturity investment
securities 206,729 116,473
Purchase of available-for-sale investment
securities (1,167,210) (1,606,993)
Redemption of available-for-sale investment
securities 1,281,975 1,683,950
Capital expenditures (167,224) (112,167)
Net cash used in investing activities (193,879) (285,447)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 33,037 27,478
Excess tax benefit from stock-based compensation 2,225 -
Repurchase of common stock, including fees (620) -
Payment of deferred purchase price for
acquisition (6,667) (6,667)
Net cash provided by financing activities 27,975 20,811
Net increase in cash and cash equivalents 146,504 50,657
Cash and cash equivalents:
Beginning of period 222,108 294,500
End of period $368,612 $345,157
(1) Reflects the classification of investments in auction rate securities
as investments rather than as cash and cash equivalents to conform
with current presentation.
SOURCE Bed Bath & Beyond Inc.
CONTACT: INVESTOR CONTACTS at +1-908-688-0888: Ronald Curwin, Chief
Financial Officer and Treasurer, Ext. 4550,
or Kenneth C. Frankel, Director of
Financial Planning, Ext. 4554, Paula J. Marbach, Investor Relations, Ext.
4552, Fax: +1-908-810-8813,
all of Bed Bath & Beyond Inc.
Web site: http://www.bedbath.com
(BBBY)