Exhibit 99.1
BED BATH & BEYOND INC. REPORTS RESULTS
FOR FISCAL SECOND QUARTER
· Net Earnings per Diluted Share Increase 13.0% to $.52
· Net Sales Increase by 3.3%
· Comparable Store Sales Decrease by 0.6%
UNION, New Jersey, September 23, 2009 — Bed Bath & Beyond Inc. today reported net earnings of $.52 per diluted share ($135.5 million) in the fiscal second quarter ended August 29, 2009, an increase of approximately 13.0% over net earnings of $.46 per diluted share ($119.3 million) in the same quarter a year ago. Net sales for the fiscal second quarter of 2009 were approximately $1.915 billion, an increase of approximately 3.3% from net sales of approximately $1.854 billion reported in the fiscal second quarter of 2008. Comparable store sales in the fiscal second quarter of 2009 decreased by approximately 0.6%.
For the fiscal first half ended August 29, 2009, the Company reported net earnings of $.86 per diluted share ($222.7 million), an increase of approximately 13.2% over net earnings of $.76 per diluted share ($196.0 million) in the corresponding period a year ago. Net sales for the fiscal first half of 2009 were approximately $3.609 billion, an increase of approximately 3.1% from net sales of approximately $3.502 billion in the corresponding period a year ago. Comparable store sales for the fiscal first half of 2009 decreased by approximately 1.1%.
As of August 29, 2009, the Company had a total of 1,056 stores, including 943 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 53 Christmas Tree Shops stores, 19 buybuy BABY stores, and 41 stores under the names of Harmon or Harmon Face Values. During the fiscal second quarter, the Company opened nine Bed Bath & Beyond stores, three buybuy BABY stores and one Harmon Face Values store and closed one Bed Bath & Beyond store. Consolidated store space as of August 29, 2009 was approximately 32.5 million square feet. Since the beginning of the fiscal third quarter on August 30, 2009, three additional Bed Bath & Beyond stores and three additional buybuy BABY stores have been opened. In addition, through a joint venture, the Company 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. Through a joint venture, the Company also operates retail stores in Mexico under the name “Home & More.” 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, fuel costs and a declining overall macroeconomic environment; 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 any tax implications relating to the Company’s stock option grants. The Company does not undertake any obligation to update its forward-looking statements.
INVESTOR CONTACTS:
Kenneth C. Frankel (908) 855-4554
Lisa S. Kaplowitz (908) 855-4083
(Tables Follow)
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(in thousands, except per share data)
(unaudited)
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
|
| August 29, |
| August 30, |
| August 29, |
| August 30, |
| ||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 |
| ||||
|
|
|
|
|
|
|
|
|
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Net sales |
| $ | 1,914,909 |
| $ | 1,853,892 |
| $ | 3,609,249 |
| $ | 3,502,383 |
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of sales |
| 1,141,516 |
| 1,114,571 |
| 2,169,038 |
| 2,107,062 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| 773,393 |
| 739,321 |
| 1,440,211 |
| 1,395,321 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Selling, general and administrative expenses |
| 551,362 |
| 551,900 |
| 1,075,876 |
| 1,089,081 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating profit |
| 222,031 |
| 187,421 |
| 364,335 |
| 306,240 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest income |
| 1,476 |
| 2,946 |
| 3,243 |
| 7,476 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Earnings before provision for income taxes |
| 223,507 |
| 190,367 |
| 367,578 |
| 313,716 |
| ||||
|
|
|
|
|
|
|
|
|
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Provision for income taxes |
| 87,976 |
| 71,099 |
| 144,875 |
| 117,671 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net earnings |
| $ | 135,531 |
| $ | 119,268 |
| $ | 222,703 |
| $ | 196,045 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net earnings per share - Basic |
| $ | 0.53 |
| $ | 0.46 |
| $ | 0.87 |
| $ | 0.76 |
|
Net earnings per share - Diluted |
| $ | 0.52 |
| $ | 0.46 |
| $ | 0.86 |
| $ | 0.76 |
|
|
|
|
|
|
|
|
|
|
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Weighted average shares outstanding - Basic |
| 257,814 |
| 256,726 |
| 257,378 |
| 256,680 |
| ||||
Weighted average shares outstanding - Diluted |
| 259,940 |
| 258,979 |
| 259,352 |
| 259,121 |
| ||||
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
|
| August 29, |
| August 30, |
| ||
|
| 2009 |
| 2008 |
| ||
|
|
|
|
|
| ||
Assets |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 1,035,601 |
| $ | 288,556 |
|
Short term investment securities |
| 43,125 |
| 10,000 |
| ||
Merchandise inventories |
| 1,755,377 |
| 1,810,313 |
| ||
Other current assets |
| 289,101 |
| 282,771 |
| ||
|
|
|
|
|
| ||
Total current assets |
| 3,123,204 |
| 2,391,640 |
| ||
|
|
|
|
|
| ||
Long term investment securities |
| 157,193 |
| 286,946 |
| ||
Property and equipment, net |
| 1,111,971 |
| 1,123,651 |
| ||
Other assets |
| 343,070 |
| 330,104 |
| ||
|
|
|
|
|
| ||
|
| $ | 4,735,438 |
| $ | 4,132,341 |
|
|
|
|
|
|
| ||
Liabilities and Shareholders’ Equity |
|
|
|
|
| ||
|
|
|
|
|
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Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 682,936 |
| $ | 654,626 |
|
Accrued expenses and other current liabilities |
| 264,066 |
| 255,422 |
| ||
Merchandise credit and gift card liabilities |
| 163,338 |
| 170,331 |
| ||
Current income taxes payable |
| 29,159 |
| 11,131 |
| ||
|
|
|
|
|
| ||
Total current liabilities |
| 1,139,499 |
| 1,091,510 |
| ||
|
|
|
|
|
| ||
Deferred rent and other liabilities |
| 236,107 |
| 205,644 |
| ||
Income taxes payable |
| 98,928 |
| 77,449 |
| ||
|
|
|
|
|
| ||
Total liabilities |
| 1,474,534 |
| 1,374,603 |
| ||
|
|
|
|
|
| ||
Total shareholders’ equity |
| 3,260,904 |
| 2,757,738 |
| ||
|
|
|
|
|
| ||
|
| $ | 4,735,438 |
| $ | 4,132,341 |
|
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
|
| Six Months Ended |
| ||||
|
| August 29, |
| August 30, |
| ||
|
| 2009 |
| 2008 |
| ||
|
|
|
|
|
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Cash Flows from Operating Activities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Net earnings |
| $ | 222,703 |
| $ | 196,045 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation |
| 89,746 |
| 87,138 |
| ||
Stock-based compensation |
| 22,137 |
| 21,604 |
| ||
Tax benefit from stock-based compensation |
| (964 | ) | 266 |
| ||
Deferred income taxes |
| (13,943 | ) | (17,565 | ) | ||
Other |
| (12 | ) | 155 |
| ||
(Increase) decrease in assets: |
|
|
|
|
| ||
Merchandise inventories |
| (113,038 | ) | (193,332 | ) | ||
Trading investment securities |
| (4,071 | ) | (1,740 | ) | ||
Other current assets |
| (32,756 | ) | (34,906 | ) | ||
Other assets |
| 302 |
| (928 | ) | ||
Increase (decrease) in liabilities: |
|
|
|
|
| ||
Accounts payable |
| 183,176 |
| 102,476 |
| ||
Accrued expenses and other current liabilities |
| 19,123 |
| (2,907 | ) | ||
Merchandise credit and gift card liabilities |
| (2,283 | ) | (921 | ) | ||
Income taxes payable |
| 11,318 |
| (61 | ) | ||
Deferred rent and other liabilities |
| 10,968 |
| 12,725 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
| 392,406 |
| 168,049 |
| ||
|
|
|
|
|
| ||
Cash Flows from Investing Activities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Redemption of available-for-sale investment securities |
| 27,245 |
| 31,350 |
| ||
Capital expenditures |
| (67,631 | ) | (106,711 | ) | ||
Investment in unconsolidated joint venture, including fees |
| — |
| (4,764 | ) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
| (40,386 | ) | (80,125 | ) | ||
|
|
|
|
|
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Cash Flows from Financing Activities: |
|
|
|
|
| ||
|
|
|
|
|
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Proceeds from exercise of stock options |
| 45,663 |
| 12,779 |
| ||
Excess tax benefit from stock-based compensation |
| 2,778 |
| 4,394 |
| ||
Repurchase of common stock, including fees |
| (33,069 | ) | (40,625 | ) | ||
|
|
|
|
|
| ||
Net cash provided by (used in) financing activities |
| 15,372 |
| (23,452 | ) | ||
|
|
|
|
|
| ||
Net increase in cash and cash equivalents |
| 367,392 |
| 64,472 |
| ||
|
|
|
|
|
| ||
Cash and cash equivalents: |
|
|
|
|
| ||
Beginning of period |
| 668,209 |
| 224,084 |
| ||
End of period |
| $ | 1,035,601 |
| $ | 288,556 |
|