Exhibit 99.1
FOR IMMEDIATE RELEASE
BED BATH & BEYOND INC. REPORTS NET EARNINGS INCREASE OF 27.4% IN
FISCAL FOURTH QUARTER, 37.6% FOR FISCAL YEAR
STEVEN H. TEMARES, 44, PRESIDENT AND CHIEF OPERATING OFFICER, NAMED
CHIEF EXECUTIVE OFFICER; WARREN EISENBERG AND LEONARD FEINSTEIN,
CO-FOUNDERS, CONTINUE AS CO-CHAIRMEN
•11th Consecutive Year of Record Earnings Since 1992 IPO
•Comparable Store Sales Increase by 4.1% in Fiscal Fourth Quarter, 7.9% in Fiscal Year
UNION, New Jersey, April 2, 2003 -—Bed Bath & Beyond Inc.today reported net earnings of $105.3 million ($.35 per share) in the fiscal fourth quarter of 2002 ended March 1, 2003, an increase of approximately 27.4% from the $82.7 million ($.28 per share) earned in the fiscal fourth quarter of 2001. Net sales for the fiscal fourth quarter of 2002 were $1.05 billion, an increase of approximately 19.4% from the fiscal fourth quarter of 2001. Comparable store sales of theBed Bath & Beyondstores for the fiscal fourth quarter of 2002 increased by approximately 4.1% compared with an increase of approximately 11.9% in last year’s fiscal fourth quarter (which was the strongest fourth quarter comparable store sales increase in the Company’s history).
Net earnings for fiscal 2002 totaled $302.2 million ($1.00 per share), exceeding fiscal 2001 net earnings of $219.6 million ($.74 per share) by approximately 37.6%. Fiscal 2002 was the 11th consecutive year of record earnings since the Company’s 1992 IPO. Net sales for fiscal 2002 were $3.7 billion, an increase of approximately 25.2% from the prior fiscal year. Comparable store sales of theBed Bath & Beyondstores for fiscal 2002 increased by approximately 7.9%, compared with an increase of approximately 7.1% in fiscal 2001.
Bed Bath & Beyondalso announced today that Steven H. Temares, 44, President and Chief Operating Officer of the Company, will remain President and will also assume the additional title of Chief Executive Officer, and that Warren Eisenberg and Leonard Feinstein, who co-foundedBed Bath & Beyondin 1971, will continue in their capacity as full-time Co-Chairmen. These changes to the management structure are consistent with new standards for corporate governance, which endorse the separation of the positions of Chairman and Chief Executive Officer.
In announcing these actions, Messrs. Eisenberg and Feinstein stated “we are pleased to once again formally recognize Steven’s outstanding performance in managing the Company’s day-to-day activities dating back to his appointment, over six years ago, as Executive Vice President and Chief Operating Officer. We remain extremely confident that his leadership, combined with the efforts of the exceptional group of talented associates, managers and executives in our organization, will enable us to continue to achieve our objectives as one of the preeminent American retailers”.
Mr. Temares, a member of the Board of Directors, was named Executive Vice President and Chief Operating Officer in January, 1997 and was promoted to President and Chief Operating Officer in June, 1999. Mr. Temares joinedBed Bath & Beyondin 1992, and has also previously served as Director of Real Estate and General Counsel.
During the fiscal fourth quarter of 2002, 3 newBed Bath & Beyond stores were opened. In addition, the relocation of one store was completed and one small store was closed. At the end of fiscal 2002,Bed Bath & Beyond Inc.operated 490Bed Bath & Beyondstores in 44 states, including 95 newBed Bath & Beyondstores (several of which were expected to open in fiscal 2003) which began operations during the year. Total store space of theBed Bath & Beyondstores grew to approximately 17,255,000 square feet, an increase of approximately 2,531,000 square feet (17.2%) over total store space of approximately 14,724,000 square feet occupied by 396Bed Bath & Beyondstores in 44 states operating at the end of fiscal 2001.
Harmon Stores, a health and beauty care retailer acquired for cash on March 5, 2002, ended the year with 29 stores in 3 states, representing an aggregate of approximately 197,000 square feet of store space.
Since the beginning of the current fiscal year on March 2, 2003, 6 newBed Bath & Beyondstores have been opened. These openings bring the total number ofBed Bath & Beyondstores now in operation to 496 in 44 states.
* * * * * * * * *
Bed Bath & Beyond Inc.is a nationwide chain of retail stores. The Company’sBed Bath & Beyondstores sell better quality domestics merchandise and home furnishings. Shares ofBed Bath & Beyond Inc. are traded on NASDAQ under the symbol “BBBY” and are included in the Standard & Poor’s 500 Index, the NASDAQ-100 Index and the Forbes 500.
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, changes in the retailing environment and consumer 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 ability to find suitable locations at reasonable occupancy costs to support the Company’s expansion program; and the cost of labor, merchandise and other costs and expenses. The Company does not undertake any obligation to update its forward-looking statements.
INVESTOR CONTACTS (at 908/688-0888):
Ronald Curwin | Kenneth C. Frankel | Paula J. Marbach | ||
Chief Financial Officer | Director of Financial | Investor Relations | ||
and Treasurer | Planning | Ext. 4552 | ||
Ext. 4550 | Ext. 4554 | Fax: 908-810-8813 |
(Tables Follow)
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||||
March 1, | March 2, | March 1, | March 2, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||||
Net sales | $ | 1,049,292 | $ | 879,055 | $ | 3,665,164 | $ | 2,927,962 | ||||||||||
Cost of sales | 605,666 | 508,820 | 2,146,617 | 1,720,396 | ||||||||||||||
Gross profit | 443,626 | 370,235 | 1,518,547 | 1,207,566 | ||||||||||||||
Selling, general and administrative expenses | 275,185 | 238,158 | 1,038,490 | 861,466 | ||||||||||||||
Operating profit | 168,441 | 132,077 | 480,057 | 346,100 | ||||||||||||||
Interest income | 2,794 | 2,353 | 11,291 | 10,972 | ||||||||||||||
Earnings before provision for income taxes | 171,235 | 134,430 | 491,348 | 357,072 | ||||||||||||||
Provision for income taxes | 65,926 | 51,756 | 189,169 | 137,473 | ||||||||||||||
Net earnings | $ | 105,309 | $ | 82,674 | $ | 302,179 | $ | 219,599 | ||||||||||
Net earnings per share — Basic | $ | 0.36 | $ | 0.28 | $ | 1.03 | $ | 0.76 | ||||||||||
Net earnings per share — Diluted | $ | 0.35 | $ | 0.28 | $ | 1.00 | $ | 0.74 | ||||||||||
Weighted average shares outstanding — Basic | 294,236 | 291,061 | 292,927 | 289,877 | ||||||||||||||
Weighted average shares outstanding — Diluted | 301,833 | 300,009 | 301,147 | 298,667 |
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
March 1, | March 2, | |||||||||
2003 | 2002 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 515,670 | $ | 429,496 | ||||||
Short term investment securities | 100,927 | — | ||||||||
Merchandise inventories | 915,671 | 753,972 | ||||||||
Other current assets | 62,123 | 43,249 | ||||||||
Total current assets | 1,594,391 | 1,226,717 | ||||||||
Long term investment securities | 148,005 | 51,909 | ||||||||
Property and equipment, net | 423,907 | 361,741 | ||||||||
Other assets | 22,539 | 7,150 | ||||||||
$ | 2,188,842 | $ | 1,647,517 | |||||||
Liabilities and Shareholders’ Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 362,965 | $ | 270,917 | ||||||
Accrued expenses and other current liabilities | 246,198 | 190,923 | ||||||||
Income taxes payable | 71,008 | 49,438 | ||||||||
Total current liabilities | 680,171 | 511,278 | ||||||||
Deferred rent and other liabilities | 56,750 | 41,889 | ||||||||
Total liabilities | 736,921 | 553,167 | ||||||||
Total shareholders’ equity | 1,451,921 | 1,094,350 | ||||||||
$ | 2,188,842 | $ | 1,647,517 | |||||||
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended | |||||||||||
March 1, | March 2, | ||||||||||
2003 | 2002 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net earnings | $ | 302,179 | $ | 219,599 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 74,825 | 62,547 | |||||||||
Amortization of bond premium | 985 | — | |||||||||
Tax benefit from exercise of stock options | 31,176 | 31,980 | |||||||||
Deferred income taxes | (13,291 | ) | 1,733 | ||||||||
(Increase) decrease in assets, net of effect of acquisition: | |||||||||||
Merchandise inventories | (145,789 | ) | (147,268 | ) | |||||||
Other current assets | (7,927 | ) | 644 | ||||||||
Other assets | 190 | 206 | |||||||||
Increase in liabilities, net of effect of acquisition: | |||||||||||
Accounts payable | 86,144 | 78,516 | |||||||||
Accrued expenses and other current liabilities | 52,891 | 62,123 | |||||||||
Income taxes payable | 20,378 | 17,450 | |||||||||
Deferred rent and other liabilities | 17,556 | 10,426 | |||||||||
Net cash provided by operating activities | 419,317 | 337,956 | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchase of investment securities | (368,008 | ) | (51,909 | ) | |||||||
Redemption of investment securities | 170,000 | — | |||||||||
Acquisition, net of cash acquired | (24,097 | ) | — | ||||||||
Capital expenditures | (135,254 | ) | (121,632 | ) | |||||||
Net cash used in investing activities | (357,359 | ) | (173,541 | ) | |||||||
Cash Flows from Financing Activities: | |||||||||||
Proceeds from exercise of stock options | 24,216 | 25,753 | |||||||||
Net cash provided by financing activities | 24,216 | 25,753 | |||||||||
Net increase in cash and cash equivalents | 86,174 | 190,168 | |||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | 429,496 | 239,328 | |||||||||
End of period | $ | 515,670 | $ | 429,496 | |||||||