- Nine Months Net Earnings Increase by 31.2%
- Quarterly Net Sales Increase by 33.9%; Nine Months by 33.3%
- Quarterly Comparable Store Sales Increase by 7.8%; Nine Months by 9.0%
- First Phase of Internet Website Launched (www.bedbathandbeyond.com)
UNION, N.J., Dec. 15 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported that in the fiscal third quarter (thirteen weeks) ended November 27, 1999, as compared with the fiscal third quarter (thirteen weeks) ended November 28, 1998, net sales rose by 33.9%, net earnings increased by 28.6%, and net earnings per share grew to $.22 from $.17.
Net earnings for the fiscal third quarter ended November 27, 1999 were $31.7 million, compared with $24.7 million earned in the fiscal third quarter of the prior year. Net sales for the fiscal third quarter were $486.5 million compared to net sales of $363.4 million in the corresponding quarter of the prior year. Comparable store sales for the fiscal third quarter increased by approximately 7.8%. In the corresponding fiscal quarter of 1998, comparable store sales increased by approximately 8.8%.
For the fiscal nine months (thirty-nine weeks) ended November 27, 1999, net earnings increased 31.2% to $82.8 million ($.57 per share) from $63.1 million ($.44 per share) earned in the comparable period (thirty-nine weeks) of the prior year. Net sales for the fiscal nine months rose 33.3% to $1,303.4 million from $977.9 million in the corresponding period (thirty-nine weeks) of the prior year.
Comparable store sales for the fiscal nine months increased by approximately 9.0%. In the first fiscal nine months in 1998, comparable store sales grew by approximately 6.2%.
Bed Bath & Beyond Inc. opened 51 new superstores and expanded 4 existing stores from the beginning of the current fiscal year through the end of the fiscal third quarter. The Company expects to open 5 additional superstores during the fiscal fourth quarter. As of November 27, 1999 there were 237 stores operating in 38 states, including a record 36 superstores opened during the fiscal third quarter. The prior record was 26 superstores opened in the corresponding quarter a year ago. Of these 36 new superstores, 15 opened during fiscal November, including 5 in the final week of the month.
Total store space grew to approximately 9,696,000 square feet at the end of the fiscal third quarter, an increase of approximately 2,043,000 square feet (26.7%) over total store space of 7,653,000 square feet occupied by 185 stores in 34 states operating as of November 28, 1998. States entered for the first time during fiscal 1999 were Arkansas, Nevada, Iowa and Louisiana. Thus far in December, Bed Bath & Beyond Inc. has opened 2 additional superstores, bringing the total to 239 stores in 38 states the number presently in operation. During fiscal 2000, which ends on March 3, 2001, Bed Bath & Beyond Inc. plans to open approximately 60 new superstores, and plans to enter the states of North Dakota and Idaho for the first time.
On November 28, 1999, Bed Bath & Beyond Inc. launched its electronic service site (http://www.bedbathandbeyond.com). The site currently features approximately 3,400 products as the initial phase of its on-line shopping experience.
Bed Bath & Beyond Inc. is a nationwide chain of superstores selling better quality domestics merchandise and home furnishings. Its stock is traded on Nasdaq under the symbol "BBBY" and is included in the Standard & Poor's 500 Index and the Nasdaq-100 Index.
This press release may contain forward-looking statements. Important factors which may affect these statements are contained in the Company's Annual Report to Shareholders for the fiscal year ended February 27, 1999 and may be contained in any subsequent reports filed by the Company with the Securities and Exchange Commission.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
November 27, November 28,
1999 1998
Assets
Current assets:
Cash and cash equivalents $107,635 $74,550
Merchandise inventories 522,433 401,749
Prepaid expenses and
other current assets 9,749 7,517
Total current assets 639,817 483,816
Property and equipment, net 202,362 137,251
Other assets 33,186 25,801
$875,365 $646,868
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $201,997 $163,354
Accrued expenses and
other current liabilities 124,205 85,197
Income taxes payable 20,783 9,820
Total current liabilities 346,985 258,371
Deferred rent 19,067 15,367
Total liabilities 366,052 273,738
Total shareholders' equity 509,313 373,130
$875,365 $646,868
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except share and per share data)
(unaudited)
Three Months Ended Nine Months Ended
November 27, November 28, November 27,November 28,
1999 1998 1999 1998
Net sales $486,457 $363,431 $ 1,303,415 $977,948
Cost of sales,
including buying,
occupancy and
indirect costs 289,673 214,958 774,847 577,353
Gross profit 196,784 148,473 528,568 400,595
Selling, general
and administrative
expenses 146,177 108,319 396,366 297,937
Operating profit 50,607 40,154 132,202 102,658
Interest income 1,371 761 3,596 2,149
Earnings before
provision for
income taxes 51,978 40,915 135,798 104,807
Provision for
income taxes 20,271 16,264 52,961 41,661
Net earnings $31,707 $24,651 $82,837 $63,146
Net earnings per
share - Basic $0.23 $0.18 $0.59 $0.46
Net earnings per
share - Diluted $0.22 $0.17 $0.57 $0.44
Weighted average
shares outstanding
- Basic 140,179,414 138,971,762 139,828,298 138,667,458
Weighted average
shares outstanding
- Diluted 144,172,597 143,079,852 144,125,462 142,921,542
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended
November 27, November 28,
1999 1998
Cash Flows from Operating Activities:
Net earnings $82,837 $63,146
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Depreciation and amortization 22,367 16,642
Deferred income taxes (3,761) (3,533)
Increase in assets:
Merchandise inventories (162,096) (131,392)
Prepaid expenses and
other current assets (5,203) (5,194)
Other assets (1,994) (1,279)
Increase (decrease) in liabilities:
Accounts payable 102,627 98,636
Accrued expenses and other
current liabilities 34,480 11,587
Income taxes payable 4,173 (2,195)
Deferred rent 2,711 2,777
Net cash provided by
operating activities 76,141 49,195
Cash Flows from Investing Activities:
Capital expenditures (74,291) (42,512)
Net cash used in investing activities (74,291) (42,512)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 15,389 14,587
Net cash provided by financing activities 15,389 14,587
Net increase in cash and cash equivalents 17,239 21,270
Cash and cash equivalents:
Beginning of period 90,396 53,280
End of period $107,635 $74,550
SOURCE Bed Bath & Beyond Inc.