First Quarter Results
For the first quarter of fiscal 2016, the Company reported net earnings of
Capital Allocation
The Company's Board of Directors has declared a quarterly dividend of
During the first quarter of fiscal 2016, the Company repurchased approximately
Fiscal 2016 Outlook
Based on these planning assumptions, which reflect actual first quarter results, current business trends and include the slight dilution anticipated from the purchase during the Company's second quarter of
The Company's fiscal 2016 first quarter conference call may be accessed by dialing 1-888-771-4371, or if international, 847-585-4405, using conference ID number 42747608. The replay of the call can be accessed by dialing 1-888-843-7419, using conference ID number 42747608. The call and replay can also be accessed via audio webcast on the investor relations section of our website at www.bedbathandbeyond.com.
About the Company
The Company operates websites at bedbathandbeyond.com, bedbathandbeyond.ca, worldmarket.com, buybuybaby.com, buybuybaby.ca, christmastreeshops.com, harmondiscount.com, ofakind.com, onekingslane.com, harborlinen.com and t-ygroup.com. As of
Forward-Looking Statements
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, approximate, estimate, assume, continue, model, 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. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment; consumer preferences, spending habits and adoption of new technologies; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; liquidity; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; potential supply chain disruption due to political instability, labor disturbances, product recalls, financial or operational instability of suppliers or carriers, and other items; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's plans for new stores; the ability to assess and implement technologies in support of the Company's development of its omnichannel capabilities; the ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets it serves; uncertainty in financial markets; disruptions to the Company's information technology systems including but not limited to security breaches of systems protecting consumer and employee information; reputational risk arising from challenges to the Company's or a third party supplier's compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; reputational risk arising from third-party merchandise or service vendor performance in direct home delivery or assembly of product for customers; changes to statutory, regulatory and legal requirements; new, or developments in existing, litigation, claims or assessments; changes to, or new, tax laws or interpretation of existing tax laws; changes to, or new, accounting standards; foreign currency exchange rate fluctuations; and the integration of acquired businesses. The Company does not undertake any obligation to update its forward-looking statements.
BED BATH & BEYOND INC. AND SUBSIDIARIES |
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Consolidated Statements of Earnings |
||||||||||
(in thousands, except per share data) |
||||||||||
(unaudited) |
||||||||||
Three Months Ended |
||||||||||
May 28, |
May 30, |
|||||||||
2016 |
2015 |
|||||||||
Net sales |
$ |
2,738,084 |
$ |
2,738,495 |
||||||
Cost of sales |
1,714,492 |
1,694,362 |
||||||||
Gross profit |
1,023,592 |
1,044,133 |
||||||||
Selling, general and administrative expenses |
810,566 |
770,864 |
||||||||
Operating profit |
213,026 |
273,269 |
||||||||
Interest expense, net |
16,315 |
19,901 |
||||||||
Earnings before provision for income taxes |
196,711 |
253,368 |
||||||||
Provision for income taxes |
74,092 |
94,917 |
||||||||
Net earnings |
$ |
122,619 |
$ |
158,451 |
||||||
Net earnings per share - Basic |
$ |
0.81 |
$ |
0.94 |
||||||
Net earnings per share - Diluted |
$ |
0.80 |
$ |
0.93 |
||||||
Weighted average shares outstanding - Basic |
152,157 |
168,772 |
||||||||
Weighted average shares outstanding - Diluted |
153,752 |
171,133 |
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BED BATH & BEYOND INC. AND SUBSIDIARIES |
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Consolidated Balance Sheets |
|||||||||||
(in thousands, unaudited) |
|||||||||||
May 28, |
May 30, |
||||||||||
2016 |
2015 |
||||||||||
Assets |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ |
544,269 |
$ |
615,230 |
|||||||
Short term investment securities |
22,495 |
76,872 |
|||||||||
Merchandise inventories |
2,923,043 |
2,844,361 |
|||||||||
Other current assets |
408,224 |
394,238 |
|||||||||
Total current assets |
3,898,031 |
3,930,701 |
|||||||||
Long term investment securities |
78,349 |
100,463 |
|||||||||
Property and equipment, net |
1,723,429 |
1,657,119 |
|||||||||
Goodwill |
487,169 |
486,279 |
|||||||||
Other assets |
391,999 |
415,303 |
|||||||||
$ |
6,578,977 |
$ |
6,589,865 |
||||||||
Liabilities and Shareholders' Equity |
|||||||||||
Current liabilities: |
|||||||||||
Accounts payable |
$ |
1,145,055 |
$ |
1,133,673 |
|||||||
Accrued expenses and other current liabilities |
471,728 |
431,216 |
|||||||||
Merchandise credit and gift card liabilities |
306,431 |
317,899 |
|||||||||
Current income taxes payable |
53,933 |
90,365 |
|||||||||
Total current liabilities |
1,977,147 |
1,973,153 |
|||||||||
Deferred rent and other liabilities |
505,512 |
491,095 |
|||||||||
Income taxes payable |
75,977 |
82,633 |
|||||||||
Long term debt |
1,491,254 |
1,490,788 |
|||||||||
Total liabilities |
4,049,890 |
4,037,669 |
|||||||||
Shareholders' equity: |
|||||||||||
Preferred stock - $0.01 par value; authorized - 1,000 |
|||||||||||
shares; no shares issued or outstanding |
- |
- |
|||||||||
Common stock - $0.01 par value; authorized - 900,000 shares; |
|||||||||||
issued 339,150 and 337,389 shares, respectively; |
|||||||||||
outstanding 154,462 and 169,596 shares, respectively |
3,392 |
3,374 |
|||||||||
Additional paid-in capital |
1,921,970 |
1,831,657 |
|||||||||
Retained earnings |
10,498,036 |
9,711,827 |
|||||||||
Treasury stock, at cost; 184,688 and 167,793 shares, respectively |
(9,846,641) |
(8,953,281) |
|||||||||
Accumulated other comprehensive loss |
(47,670) |
(41,381) |
|||||||||
Total shareholders' equity |
2,529,087 |
2,552,196 |
|||||||||
$ |
6,578,977 |
$ |
6,589,865 |
||||||||
Certain reclassifications have been made to the Fiscal Year 2015 balance sheet to conform to the Fiscal Year 2016 consolidated balance sheet presentation. |
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BED BATH & BEYOND INC. AND SUBSIDIARIES |
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Consolidated Statements of Cash Flows |
||||||||||||||
(in thousands, unaudited) |
||||||||||||||
Three Months Ended |
||||||||||||||
May 28, |
May 30, |
|||||||||||||
2016 |
2015 |
|||||||||||||
Cash Flows from Operating Activities: |
||||||||||||||
Net earnings |
$ |
122,619 |
$ |
158,451 |
||||||||||
Adjustments to reconcile net earnings to net cash |
||||||||||||||
provided by operating activities: |
||||||||||||||
Depreciation and amortization |
70,445 |
62,617 |
||||||||||||
Stock-based compensation |
20,748 |
17,740 |
||||||||||||
Excess tax benefit from stock-based compensation |
(1,325) |
(9,335) |
||||||||||||
Deferred income taxes |
4,153 |
(4,234) |
||||||||||||
Other |
(479) |
(403) |
||||||||||||
Increase in assets: |
||||||||||||||
Merchandise inventories |
(71,933) |
(112,188) |
||||||||||||
Trading investment securities |
(7,515) |
(3,363) |
||||||||||||
Other current assets |
(32,502) |
(26,846) |
||||||||||||
Other assets |
(11,946) |
(6,909) |
||||||||||||
Increase (decrease) in liabilities: |
||||||||||||||
Accounts payable |
66,260 |
7,307 |
||||||||||||
Accrued expenses and other current liabilities |
42,631 |
27,779 |
||||||||||||
Merchandise credit and gift card liabilities |
8,319 |
11,718 |
||||||||||||
Income taxes payable |
(4,932) |
25,591 |
||||||||||||
Deferred rent and other liabilities |
3,300 |
(1,017) |
||||||||||||
Net cash provided by operating activities |
207,843 |
146,908 |
||||||||||||
Cash Flows from Investing Activities: |
||||||||||||||
Purchase of held-to-maturity investment securities |
- |
(16,873) |
||||||||||||
Redemption of held-to-maturity investment securities |
63,742 |
50,000 |
||||||||||||
Capital expenditures |
(89,455) |
(72,364) |
||||||||||||
Net cash used in investing activities |
(25,713) |
(39,237) |
||||||||||||
Cash Flows from Financing Activities: |
||||||||||||||
Proceeds from exercise of stock options |
19,246 |
7,536 |
||||||||||||
Excess tax benefit from stock-based compensation |
1,325 |
9,335 |
||||||||||||
Repurchase of common stock, including fees |
(178,124) |
(385,349) |
||||||||||||
Net cash used in financing activities |
(157,553) |
(368,478) |
||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
4,119 |
463 |
||||||||||||
Net increase (decrease) in cash and cash equivalents |
28,696 |
(260,344) |
||||||||||||
Cash and cash equivalents: |
||||||||||||||
Beginning of period |
515,573 |
875,574 |
||||||||||||
End of period |
$ |
544,269 |
$ |
615,230 |
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Certain reclassifications have been made to the Fiscal Year 2015 Statement of Cash Flows to conform to the Fiscal Year 2016 cash flow presentation. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2016-first-quarter-300288916.html
SOURCE
INVESTOR CONTACT: Janet M. Barth, (908) 613-5820