Exhibit 99.1
BED BATH & BEYOND INC. REPORTS NET EARNINGS INCREASE OF 42.7% IN FISCAL FIRST QUARTER
• Net Earnings per share of $.27 for quarter
• Quarterly Net Sales Increase by 23.2%; Comparable Quarterly Store Sales Increase by 5.1%
UNION, New Jersey, June 23, 2004 --- Bed Bath & Beyond Inc. today reported net earnings of $82.0 million ($.27 per share) in the fiscal first quarter ended May 29, 2004, an increase of approximately 42.7% from the $57.5 million ($.19 per share) earned in the fiscal first quarter of 2003. Net sales for the fiscal first quarter of 2004 were approximately $1.1 billion, an increase of approximately 23.2% from net sales of $893.9 million in the fiscal first quarter of 2003. Comparable store sales in the fiscal first quarter of 2004 grew by approximately 5.1%, compared with an increase of approximately 4.4% in last year’s fiscal first quarter.
As of May 29, 2004, there were 592 Bed Bath & Beyond stores operating in 44 states and Puerto Rico, including 17 new stores opened during the fiscal first quarter. Total store space of the Bed Bath & Beyond stores at the end of the fiscal first quarter was approximately 19.8 million square feet, compared with approximately 17.4 million square feet occupied by the 498 Bed Bath & Beyond stores operating at the end of the corresponding period last year. Including those already opened year-to-date, the Company plans to open 80 to 90 Bed Bath & Beyond stores, in both new and existing markets, during fiscal 2004 (which ends on February 26, 2005).
The accompanying consolidated financial information includes the accounts of Christmas Tree Shops, Inc. (acquired in 2003) and Harmon Stores, Inc. (acquired in 2002). As of May 29, 2004, Christmas Tree Shops, Inc. operated 24 stores in 6 states, and Harmon Stores, Inc. operated 31 stores in 3 states. Total store space of the Christmas Tree Shops and Harmon Stores as of May 29, 2004, approximated 915,000 and 212,000 square feet, respectively.
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Bed Bath & Beyond Inc. is a nationwide chain of retail stores. The Company’s Bed Bath & Beyond stores sell better quality domestics merchandise and home furnishings. The Company’s Christmas Tree Shops and Harmon Stores sell giftware and household items and health and beauty care items, respectively. Shares of Bed Bath & Beyond Inc. are traded on NASDAQ under the symbol “BBBY” and are included in the Standard & Poor’s 500 Index and the NASDAQ-100 Index. The Company is counted among the Fortune 500, the Forbes 500 and the Business Week 50.
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): | ||||
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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)
(unaudited)
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| Three Months Ended |
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| May 29, 2004 |
| May 31, 2003 |
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Net sales |
| $ | 1,100,917 |
| $ | 893,868 |
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Cost of sales |
| 644,143 |
| 526,688 |
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Gross profit |
| 456,774 |
| 367,180 |
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Selling, general and administrative expenses |
| 328,067 |
| 276,730 |
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Operating profit |
| 128,707 |
| 90,450 |
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Interest income |
| 3,098 |
| 3,059 |
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Earnings before provision for income taxes |
| 131,805 |
| 93,509 |
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Provision for income taxes |
| 49,756 |
| 36,001 |
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Net earnings |
| $ | 82,049 |
| $ | 57,508 |
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Net earnings per share - Basic |
| $ | 0.27 |
| $ | 0.19 |
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Net earnings per share - Diluted |
| $ | 0.27 |
| $ | 0.19 |
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Weighted average shares outstanding - Basic |
| 300,417 |
| 294,963 |
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Weighted average shares outstanding - Diluted |
| 306,584 |
| 303,038 |
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BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
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| May 29, 2004 |
| May 31, 2003 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 758,101 |
| $ | 683,745 |
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Short term investment securities |
| 56,681 |
| 50,682 |
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Merchandise inventories |
| 1,065,519 |
| 926,906 |
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Other current assets |
| 106,492 |
| 72,477 |
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Total current assets |
| 1,986,793 |
| 1,733,810 |
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Long term investment securities |
| 303,833 |
| 140,756 |
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Property and equipment, net |
| 516,583 |
| 412,883 |
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Goodwill |
| 147,269 |
| 15,556 |
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Other assets |
| 21,462 |
| 6,966 |
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| $ | 2,975,940 |
| $ | 2,309,971 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
| $ | 428,294 |
| $ | 379,240 |
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Accrued expenses and other current liabilities |
| 256,253 |
| 221,075 |
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Merchandise credit and gift card liabilities |
| 67,815 |
| 46,718 |
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Income taxes payable |
| 32,422 |
| 68,010 |
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Total current liabilities |
| 784,784 |
| 715,043 |
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Deferred rent and other liabilities |
| 111,562 |
| 60,395 |
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Total liabilities |
| 896,346 |
| 775,438 |
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Total shareholders’ equity |
| 2,079,594 |
| 1,534,533 |
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| $ | 2,975,940 |
| $ | 2,309,971 |
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BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
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| Three Months Ended |
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| May 29, 2004 |
| May 31, 2003 |
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Cash Flows from Operating Activities: |
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Net earnings |
| $ | 82,049 |
| $ | 57,508 |
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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Depreciation and amortization |
| 22,427 |
| 19,781 |
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Amortization of bond premium |
| 270 |
| 306 |
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Tax benefit from exercise of stock options |
| 2,707 |
| 13,129 |
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Deferred income taxes |
| 535 |
| (1,462 | ) | ||
(Increase) decrease in assets: |
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Merchandise inventories |
| (53,185 | ) | (11,235 | ) | ||
Other current assets |
| (14,513 | ) | (8,736 | ) | ||
Other assets |
| (30 | ) | 17 |
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Increase (decrease) in liabilities: |
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Accounts payable |
| 29,644 |
| 16,275 |
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Accrued expenses and other current liabilities |
| (17,646 | ) | 19,059 |
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Merchandise credit and gift card liabilities |
| 4,627 |
| 2,536 |
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Income taxes payable |
| (1,423 | ) | (2,998 | ) | ||
Deferred rent and other liabilities |
| 4,640 |
| 3,489 |
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Net cash provided by operating activities |
| 60,102 |
| 107,669 |
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Cash Flows from Investing Activities: |
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Purchase of investment securities |
| (158,416 | ) | (67,812 | ) | ||
Redemption of investment securities |
| 50,000 |
| 125,000 |
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Capital expenditures |
| (22,618 | ) | (8,757 | ) | ||
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Net cash (used in) provided by investing activities |
| (131,034 | ) | 48,431 |
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Cash Flows from Financing Activities: |
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Proceeds from exercise of stock options |
| 4,018 |
| 11,975 |
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Net cash provided by financing activities |
| 4,018 |
| 11,975 |
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Net (decrease) increase in cash and cash equivalents |
| (66,914 | ) | 168,075 |
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Cash and cash equivalents: |
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Beginning of period |
| 825,015 |
| 515,670 |
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End of period |
| $ | 758,101 |
| $ | 683,745 |
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