For the fiscal first half ended
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, 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 including the housing market, fuel costs and a declining overall macroeconomic environment; changes in the retailing environment and 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 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; and matters arising out of or related to the Company's stock option grants and procedures and related matters, including any tax implications relating to the Company's stock option grants. 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 Six Months Ended
August 29, August 30, August 29, August 30,
2009 2008 2009 2008
Net sales $1,914,909 $1,853,892 $3,609,249 $3,502,383
Cost of sales 1,141,516 1,114,571 2,169,038 2,107,062
Gross profit 773,393 739,321 1,440,211 1,395,321
Selling, general and
administrative
expenses 551,362 551,900 1,075,876 1,089,081
Operating profit 222,031 187,421 364,335 306,240
Interest income 1,476 2,946 3,243 7,476
Earnings before
provision for
income taxes 223,507 190,367 367,578 313,716
Provision for income
taxes 87,976 71,099 144,875 117,671
Net earnings $135,531 $119,268 $222,703 $196,045
Net earnings per share
- Basic $0.53 $0.46 $0.87 $0.76
Net earnings per share
- Diluted $0.52 $0.46 $0.86 $0.76
Weighted average shares
outstanding - Basic 257,814 256,726 257,378 256,680
Weighted average shares
outstanding - Diluted 259,940 258,979 259,352 259,121
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
August 29, August 30,
2009 2008
Assets
Current assets:
Cash and cash equivalents $1,035,601 $288,556
Short term investment securities 43,125 10,000
Merchandise inventories 1,755,377 1,810,313
Other current assets 289,101 282,771
Total current assets 3,123,204 2,391,640
Long term investment securities 157,193 286,946
Property and equipment, net 1,111,971 1,123,651
Other assets 343,070 330,104
$4,735,438 $4,132,341
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $682,936 $654,626
Accrued expenses and other current
liabilities 264,066 255,422
Merchandise credit and gift card
liabilities 163,338 170,331
Current income taxes payable 29,159 11,131
Total current liabilities 1,139,499 1,091,510
Deferred rent and other liabilities 236,107 205,644
Income taxes payable 98,928 77,449
Total liabilities 1,474,534 1,374,603
Total shareholders' equity 3,260,904 2,757,738
$4,735,438 $4,132,341
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
August 29, August 30,
2009 2008
Cash Flows from Operating Activities:
Net earnings $222,703 $196,045
Adjustments to reconcile net
earnings to net cash
provided by operating activities:
Depreciation 89,746 87,138
Stock-based compensation 22,137 21,604
Tax benefit from stock-based
compensation (964) 266
Deferred income taxes (13,943) (17,565)
Other (12) 155
(Increase) decrease in assets:
Merchandise inventories (113,038) (193,332)
Trading investment securities (4,071) (1,740)
Other current assets (32,756) (34,906)
Other assets 302 (928)
Increase (decrease) in liabilities:
Accounts payable 183,176 102,476
Accrued expenses and other current
liabilities 19,123 (2,907)
Merchandise credit and gift card
liabilities (2,283) (921)
Income taxes payable 11,318 (61)
Deferred rent and other liabilities 10,968 12,725
Net cash provided by operating
activities 392,406 168,049
Cash Flows from Investing Activities:
Redemption of available-for-sale
investment securities 27,245 31,350
Capital expenditures (67,631) (106,711)
Investment in unconsolidated joint
venture, including fees - (4,764)
Net cash used in investing activities (40,386) (80,125)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 45,663 12,779
Excess tax benefit from stock-based
compensation 2,778 4,394
Repurchase of common stock,
including fees (33,069) (40,625)
Net cash provided by (used in)
financing activities 15,372 (23,452)
Net increase in cash and cash
equivalents 367,392 64,472
Cash and cash equivalents:
Beginning of period 668,209 224,084
End of period $1,035,601 $288,556
SOURCE
Kenneth C. Frankel, +1-908-855-4554 or Lisa S. Kaplowitz, +1-908-855-4083