UNION, N.J., April 7, 2010 /PRNewswire via COMTEX/ --Bed Bath & Beyond Inc. today reported net earnings of $.86 per diluted share ($226.0 million) in the fiscal fourth quarter ended February 27, 2010, an increase of approximately 56% versus net earnings of $.55 per diluted share ($141.4 million) in the same quarter a year ago. Net sales for the fiscal fourth quarter of 2009 were approximately $2.244 billion, an increase of approximately 16.7% from net sales of approximately $1.923 billion reported in the fiscal fourth quarter of 2008. Comparable store sales in the fiscal fourth quarter of 2009 increased by approximately 11.5%, compared with a decrease of approximately 4.3% in last year's fiscal fourth quarter.
Net earnings for the fiscal year ended February 27, 2010 were $2.30 per diluted share ($600.0 million), compared with net earnings per diluted share of $1.64 ($425.1 million) a year ago. Net sales for fiscal 2009 were approximately $7.829 billion, an increase of approximately 8.6% from the prior fiscal year. Comparable store sales for fiscal 2009 increased by approximately 4.4%, compared with a decrease of approximately 2.4% last year.
For fiscal 2010, the Company is modeling net earnings per diluted share to be approximately $.44 to $.48 for the first quarter and to increase by approximately 10% to 15% for the full year.
As of February 27, 2010, the Company had a total of 1,100 stores, including 965 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 29 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal fourth quarter, the Company opened eight Bed Bath & Beyond stores, four Christmas Tree Shops stores, three buybuy BABY stores and three Harmon Face Values stores and closed one Bed Bath & Beyond store. Consolidated store space as of February 27, 2010 was approximately 33.7 million square feet. Since the beginning of the first quarter of fiscal 2010 on February 28, 2010, one additional Bed Bath & Beyond store and one additional buybuy BABY store have been opened. 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, which includes food, giftware, health and beauty care items and infant and toddler merchandise. 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, 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, 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 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)
Three Months Ended Twelve Months Ended
------------------ -------------------
February February February February
27, 28, 27, 28,
2010 2009 2010 2009
---- ---- ---- ----
(unaudited) (unaudited) (unaudited)
Net sales $2,244,079 $1,923,274 $7,828,793 $7,208,340
Cost of sales 1,288,583 1,138,216 4,620,674 4,335,104
--------- --------- --------- ---------
Gross profit 955,496 785,058 3,208,119 2,873,236
Selling, general and
administrative
expenses 584,755 553,776 2,227,432 2,199,340
------- ------- --------- ---------
Operating profit 370,741 231,282 980,687 673,896
Interest income 588 540 4,568 9,412
--- --- ----- -----
Earnings before
provision for
income taxes 371,329 231,822 985,255 683,308
Provision for income
taxes 145,287 90,444 385,222 258,185
------- ------ ------- -------
Net earnings $226,042 $141,378 $600,033 $425,123
======== ======== ======== ========
Net earnings per
share -Basic $0.88 $0.55 $2.33 $1.66
Net earnings per
share -Diluted $0.86 $0.55 $2.30 $1.64
Weighted average
shares outstanding
-Basic 258,191 256,130 257,755 256,410
Weighted average
shares outstanding
-Diluted 261,885 258,062 260,375 258,619
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
February February
27, 28,
2010 2009
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $1,096,100 $668,209
Short term investment securities 431,476 2,000
Merchandise inventories 1,759,703 1,642,339
Other current assets 276,066 250,251
------- -------
Total current assets 3,563,345 2,562,799
--------- ---------
Long term investment securities 132,860 221,134
Property and equipment, net 1,119,292 1,148,435
Other assets 336,633 336,475
------- -------
$5,152,130 $4,268,843
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $611,163 $514,734
Accrued expenses and other current
liabilities 281,730 247,508
Merchandise credit and gift card
liabilities 172,804 165,621
Current income taxes payable 83,857 25,105
------ ------
Total current liabilities 1,149,554 952,968
--------- -------
Deferred rent and other liabilities 246,273 227,209
Income taxes payable 103,399 88,212
------- ------
Total liabilities 1,499,226 1,268,389
--------- ---------
Total shareholders' equity 3,652,904 3,000,454
--------- ---------
$5,152,130 $4,268,843
========== ==========
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
-------------------
February February
27, 28,
2010 2009
---- ----
(unaudited)
Cash Flows from Operating Activities:
Net earnings $600,033 $425,123
Adjustments to reconcile net earnings
to net cash
provided by operating activities:
Depreciation 184,232 175,601
Stock-based compensation 44,235 43,708
Tax benefit from stock-based
compensation (5,986) (1,183)
Deferred income taxes (22,811) (22,325)
Other (405) 476
(Increase) decrease in assets:
Merchandise inventories (117,364) (25,358)
Trading investment securities (5,610) (17)
Other current assets (4,397) (3,065)
Other assets 526 (954)
Increase (decrease) in liabilities:
Accounts payable 96,279 (40,863)
Accrued expenses and other current
liabilities 37,905 (13,301)
Merchandise credit and gift card
liabilities 7,183 (5,631)
Income taxes payable 70,487 24,676
Deferred rent and other liabilities 21,100 27,083
------ ------
Net cash provided by operating
activities 905,407 583,970
------- -------
Cash Flows from Investing Activities:
Purchase of held-to-maturity
investment securities (403,582) -
Redemption of held-to-maturity
investment securities 30,025 -
Redemption of available-for-sale
investment securities 38,545 107,550
Capital expenditures (153,680) (215,859)
Investment in unconsolidated joint
venture, including fees - (4,786)
--- ------
Net cash used in investing activities (488,692) (113,095)
-------- --------
Cash Flows from Financing Activities:
Proceeds from exercise of stock
options 99,727 17,650
Excess tax benefit from stock-based
compensation 6,306 3,652
Repurchase of common stock, including
fees (94,857) (48,052)
------- -------
Net cash provided by (used in)
financing activities 11,176 (26,750)
------ -------
Net increase in cash and cash
equivalents 427,891 444,125
Cash and cash equivalents:
Beginning of period 668,209 224,084
End of period $1,096,100 $668,209
========== ========
SOURCE Bed Bath & Beyond Inc.