UNION,
N.J., June 23 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc.(Nasdaq:
BBBY)
today reported net earnings of $.52 per diluted share ($137.6 million) in the
fiscal first quarter ended May 29, 2010, an increase of approximately 53% versus
net earnings of $.34 per diluted share ($87.2 million) in the same quarter a year
ago. Net sales for the fiscal first quarter of 2010 were approximately $1.923
billion, an increase of approximately 13.5% from net sales of approximately $1.694
billion reported in the fiscal first quarter of 2009.
Comparable store sales
in the fiscal first quarter of 2010 increased by approximately 8.4%, compared
with a decrease of approximately 1.6% in last year's fiscal first quarter.For
the fiscal second quarter of 2010, the Company is modeling net earnings per diluted
share to be approximately $.59 to $.63. For fiscal 2010, the Company is modeling
net earnings per diluted share to increase by approximately 15%. As
of May 29, 2010, the Company had a total of 1,104 stores, including 967 Bed Bath
& Beyondstores in 49 states, the District of Columbia, Puerto Rico and Canada,
61 Christmas Tree Shops stores, 31 buybuy BABY stores and 45 stores under the
names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company
opened two Bed Bath & Beyond stores and two buybuy BABY stores. Consolidated
store space as of May 29, 2010 was approximately 33.9 million square feet. Since
the beginning of the second quarter of fiscal 2010 on May 30, 2010, one additional
Bed Bath & Beyondstore has 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 Valuesandbuybuy 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 include 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)
(unaudited)
Three Months Ended
------------------
May 29, May 30,
2010 2009
---- ----
Net sales $1,923,051 $1,694,340
Cost of sales 1,148,015 1,027,522
---------
---------
Gross profit 775,036 666,818
Selling, general and administrative
expenses 549,642 524,514
------- -------
Operating profit 225,394 142,304
Interest income 516 1,767
--- -----
Earnings before provision for income
taxes 225,910 144,071
Provision for income taxes 88,357 56,899
------
------
Net earnings $137,553 $87,172
======== =======
Net earnings per share - Basic $0.53 $0.34
Net earnings per share - Diluted
$0.52 $0.34 Weighted
average shares outstanding -
Basic 259,400 256,942
Weighted average shares
outstanding -
Diluted 263,638 258,764
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 29, May 30,
2010 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $1,083,985 $855,434
Short term
investment securities 560,174 2,000
Merchandise inventories 1,846,140 1,703,819
Other current assets 292,054 272,681
------- -------
Total current assets 3,782,353 2,833,934
--------- ---------
Long term investment securities 133,835 216,196
Property and equipment, net
1,103,367 1,120,393
Other assets 341,471 335,531
------- -------
$5,361,026 $4,506,054
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $678,685 $603,402
Accrued expenses
and other current
liabilities 271,193 247,256
Merchandise credit and gift
card
liabilities 175,404 160,629
Current income taxes payable 89,400 55,361
------ ------
Total current liabilities 1,214,682 1,066,648
--------- ---------
Deferred rent and other liabilities 257,312 232,790
Income taxes payable 105,813
96,264
------- ------
Total liabilities 1,577,807 1,395,702
--------- ---------
Total shareholders' equity 3,783,219 3,110,352
--------- ---------
$5,361,026 $4,506,054
========== ==========
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash
Flows
(in thousands, unaudited)
Three Months Ended
------------------
May 29, May 30,
2010 2009
---- ----
Cash Flows from Operating Activities:
Net earnings $137,553 $87,172
Adjustments to reconcile net earnings to
net cash
provided by operating activities:
Depreciation 45,013 44,779
Stock-based compensation 11,836 11,010
Tax benefit from stock-based compensation
(2,679) (55)
Deferred income taxes (1,303) (5,081)
Other (304) 54
(Increase) decrease in assets:
Merchandise inventories (86,437) (61,480)
Trading investment securities (1,139) (2,439)
Other current assets (19,122)
(16,998)
Other assets 128 170
Increase (decrease) in liabilities:
Accounts payable 77,767 98,819
Accrued expenses and other current
liabilities
(10,681) 2,220
Merchandise credit and gift card
liabilities 2,600 (4,992)
Income taxes payable 7,957 34,856
Deferred rent and other liabilities 11,094
6,274
------ -----
Net cash provided by operating activities 172,283 194,309
------- -------
Cash Flows from Investing Activities:
Purchase of held-to-maturity investment
securities (377,860) -
Redemption
of held-to-maturity
investment securities 217,520 -
Redemption of available-for-sale
investment securities 30,850 7,600
Capital expenditures (39,032) (26,588)
------- -------
Net cash used in investing activities (168,522) (18,988)
-------- -------
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 68,364 23,303
Excess tax benefit from
stock-based
compensation 962 1,712
Repurchase of common stock, including
fees (85,202) (13,111)
------- -------
Net cash (used in) provided by financing
activities (15,876) 11,904
-------
------ Net (decrease)
increase in cash and cash
equivalents (12,115) 187,225
Cash and cash equivalents:
Beginning of period 1,096,100 668,209
---------
-------
End of period $1,083,985 $855,434
========== ========
SOURCE
Bed Bath & Beyond Inc.
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