News Release

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Bed Bath & Beyond Inc. Reports Results for Fiscal Third Quarter
Dec 21 2011
-- Net Earnings per Diluted Share of $.95
-- Quarterly Net Sales Increase by Approximately 6.8%
-- Quarterly Comparable Store Sales Increase by Approximately 4.1%
-- Full Year Net Earnings per Diluted Share Modeled to Increase Approximately 26% to 28%; Previously Modeled at Approximately 22% to 25%

UNION, N.J., Dec. 21, 2011 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported net earnings of $.95 per diluted share ($228.5 million) in the fiscal third quarter ended November 26, 2011, an increase of approximately 28% versus net earnings of $.74 per diluted share ($188.6 million) in the same quarter a year ago.  Net sales for the fiscal third quarter of 2011 were approximately $2.344 billion, an increase of approximately 6.8% from net sales of approximately $2.194 billion reported in the fiscal third quarter of 2010.  Comparable store sales in the fiscal third quarter of 2011 increased by approximately 4.1%, compared with an increase of approximately 7.0% in last year's fiscal third quarter.

During the fiscal third quarter of 2011, the Company repurchased approximately $328 million of its common stock representing approximately 5.6 million shares.  As of November 26, 2011, the remaining balance of the current share repurchase program authorized in December 2010 was approximately $1.3 billion.

For the fiscal nine months ended November 26, 2011, the Company reported net earnings of $2.60 per diluted share ($638.5 million), an increase of approximately 33% over net earnings of $1.95 per diluted share ($507.9 million) in the corresponding period a year ago.  Net sales for the fiscal nine months of 2011 were approximately $6.768 billion, an increase of approximately 8.2% from net sales of approximately $6.254 billion in the corresponding period a year ago.  Comparable store sales for the fiscal nine months of 2011 increased by approximately 5.5%, compared with an increase of approximately 7.6% in last year's fiscal nine months.

The Company is now modeling net earnings per diluted share to be approximately $1.28 to $1.33 for the fiscal fourth quarter of 2011 and approximately $3.86 to $3.92 for all of fiscal 2011. 

As of November 26, 2011, the Company had a total of 1,171 stores, including 993 Bed Bath & Beyondstores in all 50 states, the District of Columbia, Puerto Rico and Canada, 71 Christmas Tree Shops stores, 61 buybuy BABY stores and 46 stores under the names of Harmon or Harmon Face Values.  During the fiscal third quarter, the Company opened seven Bed Bath & Beyond stores, seven buybuy BABY stores, one Christmas Tree Shops store and one Harmon Face Values store. Consolidated store space as of November 26, 2011 was approximately 36.0 million square feet.  Since the beginning of the fourth quarter of fiscal 2011 on November 27, 2011, the Company has opened one buybuy BABY store and closed one Harmon store.  In addition, the Company is a partner in a joint venture which operates two stores in the Mexico City market under the name "Home & More."

*   *   *    *    *    *    *    *

Bed Bath & Beyond Inc. and subsidiaries (the "Company") is a chain of retail stores, operating under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY.  In addition, the Company is a partner in a joint venture which operates retail stores in Mexico under the name "Home & More."  The Company sells a wide assortment of domestics merchandise and home furnishings.  Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles.  Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.  Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol "BBBY" and are included in the Standard and 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, 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

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,

 

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

Consolidated Balance Sheets

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

November 26,

November 27,

 

2011

2010

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

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

 

 

 

November 26,

November 27,

 

2011

2010

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 Bed Bath & Beyond Inc.

INVESTOR CONTACTS: Kenneth C. Frankel, +1-908-855-4554; Eugene A. Castagna, +1-908-855-4110