UNION, N.J., June 25 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc.
today reported net earnings of $.30 per diluted share ($76.8 million) in the
fiscal first quarter ended May 31, 2008, compared with net earnings of $.38
per diluted share ($104.6 million) in the same quarter a year ago. Net sales
for the fiscal first quarter of 2008 were approximately $1.648 billion, an
increase of approximately 6.1% from net sales of $1.553 billion reported in
the fiscal first quarter of 2007. Comparable store sales for the fiscal first
quarter of 2008 increased by approximately 0.8%, compared with an increase of
approximately 1.6% in last year's fiscal first quarter.
Steven H. Temares, Chief Executive Officer and a Member of the Board of
Directors of Bed Bath & Beyond Inc. stated, "We continue to take a long-term
approach to our business and work to continue to distance ourselves from our
competitors by striving to be our customers' first choice for the products we
offer domestically, interactively and over the long-term, internationally.
Consistent with this, following our successful entry into Canada in December
and the announcement of our expansion plans there, we were very pleased to
have announced in May the formation of a joint venture with Home & More, S.A.
de C.V., a privately-held home products retailer operating two stores in
Mexico. We are excited to be entering Mexico with the strong management team
of Home & More as our partners."
Also during the fiscal first quarter of 2008, the Company repurchased
approximately 0.4 million shares of its common stock for an aggregate cost of
approximately $14 million. As of May 31, 2008, the balance remaining of the
share repurchase program authorized in September 2007 was approximately $953
million.
As of May 31, 2008, the Company operated a total of 981 stores, including
890 Bed Bath & Beyond stores (9 of which were opened during the fiscal first
quarter), in 49 states, the District of Columbia, Puerto Rico and Canada. In
addition, as of May 31, 2008, Christmas Tree Shops operated 41 stores, buybuy
BABY operated 10 stores (1 of which was opened during the fiscal first
quarter) and 40 stores operated under the names of Harmon and Harmon Face
Values. Consolidated store space as of May 31, 2008 was approximately
30.4 million square feet. Since the beginning of the fiscal second quarter on
June 1, 2008, 2 additional Bed Bath & Beyond stores have opened.
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. The Company sells a wide
assortment of merchandise principally including domestics merchandise and home
furnishings as well as 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 and fuel costs; 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 the outcome of the
informal inquiry commenced by the SEC, the possibility that the SEC may not
agree with all of the special committee's findings and recommendations and may
require additional or different remediation, any other proceedings which may
be brought against the Company by the SEC or other governmental agencies, any
tax implications relating to the Company's stock option grants, the outcome of
a shareholder derivative action filed against certain of the Company's
officers and directors and related matters, and the possibility of other
private litigation relating to such stock option grants and related matters.
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 31, June 2,
2008 2007
Net sales $1,648,491 $1,553,293
Cost of sales 992,491 907,184
Gross profit 656,000 646,109
Selling, general and administrative expenses 537,181 491,718
Operating profit 118,819 154,391
Interest income 4,530 9,890
Earnings before provision for income taxes 123,349 164,281
Provision for income taxes 46,572 59,634
Net earnings $76,777 $104,647
Net earnings per share - Basic $0.30 $0.38
Net earnings per share - Diluted $0.30 $0.38
Weighted average shares outstanding - Basic 256,634 273,564
Weighted average shares outstanding - Diluted 259,263 278,249
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 31, June 2,
2008 2007
Assets
Current assets:
Cash and cash equivalents $240,255 $183,131
Short term investment securities 15,000 512,022
Merchandise inventories 1,726,148 1,558,478
Other current assets 259,917 274,795
Total current assets 2,241,320 2,528,426
Long term investment securities 307,734 74,937
Property and equipment, net 1,112,116 954,620
Other assets 325,004 310,657
$3,986,174 $3,868,640
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $597,011 $608,982
Accrued expenses and other
current liabilities 256,083 244,612
Merchandise credit and gift
card liabilities 172,816 151,547
Current income taxes payable 33,235 67,866
Total current liabilities 1,059,145 1,073,007
Deferred rent and other liabilities 198,503 170,274
Income taxes payable 74,753 124,465
Total liabilities 1,332,401 1,367,746
Total shareholders' equity 2,653,773 2,500,894
$3,986,174 $3,868,640
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
May 31, June 2,
2008 2007
Cash Flows from Operating Activities:
Net earnings $76,777 $104,647
Adjustments to reconcile net earnings
to net cash provided by
operating activities:
Depreciation 43,619 37,339
Amortization of bond premium - 671
Stock-based compensation 10,377 10,022
Tax benefit from stock-based compensation 2,672 545
Deferred income taxes (6,736) (15,551)
(Increase) decrease in assets,
net of effect of acquisition:
Merchandise inventories (109,167) (38,169)
Trading investment securities (1,555) (1,418)
Other current assets (17,803) (26,783)
Other assets (626) 13
Increase (decrease) in liabilities,
net of effect of acquisition:
Accounts payable 44,545 12,180
Accrued expenses and other
current liabilities (2,868) (2,736)
Merchandise credit and gift
card liabilities 1,564 4,270
Income taxes payable 19,347 28,913
Deferred rent and other liabilities 5,654 3,674
Net cash provided by operating activities 65,800 117,617
Cash Flows from Investing Activities:
Redemption of held-to-maturity
investment securities - 94,666
Purchase of available-for-sale
investment securities - (315,780)
Redemption of available-for-sale
investment securities 4,825 512,475
Capital expenditures (51,673) (76,523)
Investment in unconsolidated
joint venture, including fees (4,659) -
Payment for acquisition,
net of cash acquired - (85,893)
Net cash (used in) provided by
investing activities (51,507) 128,945
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 11,214 9,720
Excess tax benefit from
stock-based compensation 4,315 2,683
Repurchase of common stock, including fees (13,651) (289,215)
Net cash provided by (used in)
financing activities 1,878 (276,812)
Net increase (decrease) in cash and
cash equivalents 16,171 (30,250)
Cash and cash equivalents:
Beginning of period 224,084 213,381
End of period $240,255 $183,131
SOURCE Bed Bath & Beyond Inc.
