During the fiscal third quarter of 2011, the Company repurchased approximately
For the fiscal nine months ended
The Company is now modeling net earnings per diluted share to be approximately
As of
* * * * * * * *
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 that may be outside the Company's control. 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 and 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 attract and retain associates in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs to support the Company's expansion program; the impact of failed auctions for auction rate securities held by the Company; disruptions to the Company's information technology systems including but not limited to security breaches of the Company's systems protecting consumer and employee information; changes to statutory, regulatory and legal requirements; changes to, or new, tax laws or interpretation of existing tax laws; and changes to, or new, accounting standards including, without limitation, changes to lease accounting standards. 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 |
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(in thousands, except per share data) |
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(unaudited) |
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Three Months Ended |
Nine Months Ended |
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November 26, |
November 27, |
November 26, |
November 27, |
||||
|
2011 |
2010 |
2011 |
2010 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
2,343,561 |
$ |
2,193,755 |
$ |
6,767,576 |
$ |
6,253,536 |
Cost of sales |
|
1,384,868 |
|
1,297,247 |
|
4,000,312 |
|
3,707,074 |
Gross profit |
|
958,693 |
|
896,508 |
|
2,767,264 |
|
2,546,462 |
Selling, general and administrative expenses |
|
601,673 |
|
591,398 |
|
1,749,660 |
|
1,719,056 |
Operating profit |
|
357,020 |
|
305,110 |
|
1,017,604 |
|
827,406 |
Interest (expense) income, net |
|
(602) |
|
1,996 |
|
(1,922) |
|
2,839 |
Earnings before provision for income taxes |
|
356,418 |
|
307,106 |
|
1,015,682 |
|
830,245 |
Provision for income taxes |
|
127,874 |
|
118,532 |
|
377,188 |
|
322,363 |
Net earnings |
$ |
228,544 |
$ |
188,574 |
$ |
638,494 |
$ |
507,882 |
Net earnings per share - Basic |
$ |
0.96 |
$ |
0.75 |
$ |
2.64 |
$ |
1.98 |
Net earnings per share - Diluted |
$ |
0.95 |
$ |
0.74 |
$ |
2.60 |
$ |
1.95 |
Weighted average shares outstanding - Basic |
|
237,802 |
|
252,233 |
|
242,033 |
|
256,216 |
Weighted average shares outstanding - Diluted |
|
241,718 |
|
255,936 |
|
246,019 |
|
259,834 |
BED BATH & BEYOND INC. AND SUBSIDIARIES |
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Consolidated Balance Sheets |
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(in thousands, unaudited) |
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November 26, |
November 27, |
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|
2011 |
2010 |
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Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
765,750 |
$ |
840,333 |
|
Short term investment securities |
|
761,930 |
|
599,805 |
|
Merchandise inventories |
|
2,357,254 |
|
2,171,783 |
|
Other current assets |
|
405,950 |
|
337,094 |
|
|
|
|
|
|
|
Total current assets |
|
4,290,884 |
|
3,949,015 |
|
|
|
|
|
|
|
Long term investment securities |
|
101,864 |
|
134,663 |
|
Property and equipment, net |
|
1,160,994 |
|
1,124,704 |
|
Other assets |
|
301,374 |
|
351,765 |
|
|
|
|
|
|
|
|
$ |
5,855,116 |
$ |
5,560,147 |
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
954,281 |
$ |
856,646 |
|
Accrued expenses and other current liabilities |
|
346,871 |
|
319,969 |
|
Merchandise credit and gift card liabilities |
|
197,932 |
|
182,617 |
|
Current income taxes payable |
|
2,444 |
|
10,742 |
|
|
|
|
|
|
|
Total current liabilities |
|
1,501,528 |
|
1,369,974 |
|
|
|
|
|
|
|
Deferred rent and other liabilities |
|
318,814 |
|
277,078 |
|
Income taxes payable |
|
124,262 |
|
114,183 |
|
|
|
|
|
|
|
Total liabilities |
|
1,944,604 |
|
1,761,235 |
|
|
|
|
|
|
|
Total shareholders' equity |
|
3,910,512 |
|
3,798,912 |
|
|
|
|
|
|
|
|
$ |
5,855,116 |
$ |
5,560,147 |
|
|
|
|
|
|
|
BED BATH & BEYOND INC. AND SUBSIDIARIES |
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Consolidated Statements of Cash Flows |
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(in thousands, unaudited) |
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Nine Months Ended |
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|
|
|
|
|
|
November 26, |
November 27, |
||
|
2011 |
2010 |
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Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
638,494 |
$ |
507,882 |
Adjustments to reconcile net earnings to net cash |
|
|
|
|
provided by operating activities: |
|
|
|
|
Depreciation |
|
131,989 |
|
135,217 |
Stock-based compensation |
|
34,682 |
|
33,316 |
Tax benefit from stock-based compensation |
|
(430) |
|
(2,589) |
Deferred income taxes |
|
13,596 |
|
(10,708) |
Other |
|
(1,262) |
|
(1,247) |
(Increase) decrease in assets: |
|
|
|
|
Merchandise inventories |
|
(388,347) |
|
(412,080) |
Trading investment securities |
|
(882) |
|
(4,161) |
Other current assets |
|
(55,697) |
|
(62,524) |
Other assets |
|
903 |
|
(2,562) |
Increase (decrease) in liabilities: |
|
|
|
|
Accounts payable |
|
238,495 |
|
247,991 |
Accrued expenses and other current liabilities |
|
33,663 |
|
39,932 |
Merchandise credit and gift card liabilities |
|
4,871 |
|
9,813 |
Income taxes payable |
|
(97,435) |
|
(62,331) |
Deferred rent and other liabilities |
|
15,850 |
|
32,118 |
|
|
|
|
|
Net cash provided by operating activities |
|
568,490 |
|
448,067 |
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
Purchase of held-to-maturity investment securities |
|
(1,277,815) |
|
(1,146,153) |
Redemption of held-to-maturity investment securities |
|
1,128,125 |
|
920,645 |
Redemption of available-for-sale investment securities |
|
15,550 |
|
16,525 |
Redemption of trading investment securities |
|
- |
|
42,825 |
Capital expenditures |
|
(159,244) |
|
(142,186) |
|
|
|
|
|
Net cash used in investing activities |
|
(293,384) |
|
(308,344) |
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
161,705 |
|
91,083 |
Excess tax benefit from stock-based compensation |
|
4,638 |
|
2,495 |
Repurchase of common stock, including fees |
|
(859,286) |
|
(489,068) |
|
|
|
|
|
Net cash used in financing activities |
|
(692,943) |
|
(395,490) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(417,837) |
|
(255,767) |
|
|
|
|
|
Cash and cash equivalents: |
|
|
|
|
Beginning of period |
|
1,183,587 |
|
1,096,100 |
End of period |
$ |
765,750 |
$ |
840,333 |
SOURCE
INVESTOR CONTACTS: Kenneth C. Frankel, +1-908-855-4554; Eugene A. Castagna, +1-908-855-4110