BED BATH & BEYOND
Investor Relations
News Release
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Bed Bath & Beyond Inc. Reports Results For Fiscal First Quarter
- Net Earnings per Diluted Share of $.89
- Quarterly Net Sales Increase by Approximately 5.1%
- Quarterly Comparable Store Sales Increase by Approximately 3.0%
- Modeling Fiscal Second Quarter 2012 Net Earnings per Diluted Share of Approximately $.97 to $1.03
- Continues to Model Fiscal 2012 Net Earnings per Diluted Share to Increase by a High Single to a Low Double Digit Percentage Range

UNION, N.J., June 20, 2012 /PRNewswire/ -- Bed Bath & Beyond Inc. today reported net earnings of $.89 per diluted share ($206.8 million) in the fiscal quarter ended May 26, 2012, an increase of approximately 24% versus net earnings of $.72 per diluted share ($180.6 million) in the same quarter a year ago.  Net sales for the fiscal first quarter of 2012 were approximately $2.218 billion, an increase of approximately 5.1% from net sales of approximately $2.110 billion reported in the fiscal first quarter of 2011.  Comparable store sales in the fiscal first quarter of 2012 increased by approximately 3.0%, compared with an increase of approximately 7.0% in last year's fiscal first quarter.

During the fiscal first quarter of 2012, the Company repurchased approximately $306 million of its common stock representing approximately 4.6 million shares.  As of May 26, 2012, the remaining balance of the current share repurchase program authorized in December 2010 was approximately $613 million.

The Company is modeling net earnings per diluted share to be approximately $.97 to $1.03 for the fiscal second quarter and continues to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012, which will be 53 weeks.  The modeling of net earnings per diluted share is based upon a number of planning assumptions which will be described in the Company's first quarter of fiscal 2012 conference call. Information regarding access to the call is available in the Investor Relations section of the Company's website, www.bedbathandbeyond.com.

As announced on May 9, 2012, the Company entered into a definitive agreement to acquire all of the outstanding shares of Cost Plus, Inc., a retailer selling a wide range of home decorating items, furniture, gifts, holiday and other seasonal items, and gourmet food and beverages.  While the Company expects the tender offer for Cost Plus, Inc.'s outstanding shares to be completed during the fiscal second quarter, the Company's planning assumptions and modeled net earnings per diluted share for the fiscal second quarter and full year 2012 exclude Cost Plus, Inc. as the transaction has not yet been completed. 

Assuming the tender offer is completed as anticipated during the fiscal second quarter of 2012, the Company's modeling of net earnings per diluted share, including transaction and integration costs, would decrease by several cents for the fiscal second quarter.  For the fiscal second half, net earnings per diluted share, including integration costs, would increase and be slightly accretive.  For fiscal 2012, the Company would continue to model net earnings per diluted share to increase by a high single to a low double digit percentage range over fiscal 2011.

Additionally, on June 1, 2012, the Company announced the acquisition of Linen Holdings, LLC, a business-to-business distributor of a variety of textile products, amenities and other goods to customers in the hospitality, cruise line, food service, healthcare and other industries.  The benefit from Linen Holdings, LLC's results of operations is included in the Company's modeled net earnings per diluted share and will not have a material effect for the fiscal second quarter or for all of fiscal 2012.

As of May 26, 2012, the Company had a total of 1,180 stores, including 995 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 72 Christmas Tree Shops stores, 68 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, four buybuy BABY stores and one Christmas Tree Shops store. Consolidated store space as of May 26, 2012 was approximately 36.3 million square feet.  Since the beginning of the second quarter of fiscal 2012 on May 27, 2012, the Company has opened two Bed Bath & Beyond stores and three buybuy BABY stores.  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") operates a chain of retail stores under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon, Harmon Face Values and buybuy BABY.  The Company is also a partner in a joint venture which operates retail stores in Mexico under the name "Home & More."  Through its retail stores, the Company sells a wide assortment of domestics merchandise and home furnishings.  Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles.  Home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables and certain juvenile products.  Additionally, the Company includes Linen Holdings, a business-to-business distributor of a variety of textile products, amenities and other goods to customers in the hospitality, cruise line, food service, healthcare and other industries.  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, approximate, estimate, assume, continue, model, 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. 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; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors; competition from other channels of distribution; pricing pressures; the ability to attract and retain associates in all areas of the organization; the cost of labor, merchandise and other costs and expenses; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's expansion program; the impact of failed auctions for auction rate securities held by the Company; uncertainty in financial markets; disruptions to the Company's information technology systems including but not limited to security breaches of the Company's systems protecting consumer and employee information; reputational risk arising from acts of third parties; changes to statutory, regulatory and legal requirements; changes to, or new, tax laws or interpretation of existing tax laws; and changes to, or new, accounting standards including, without limitation, changes to lease accounting standards.  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 26, 


 May 28, 







2012


2011














Net sales


$

2,218,292


$

2,109,951














Cost of sales



1,331,093



1,252,379
















Gross profit



887,199



857,572














Selling, general and administrative expenses


573,801



568,624
















Operating profit


313,398



288,948














Interest (expense) income, net


(1,056)



552
















Earnings before provision for income taxes


312,342



289,500














Provision for income taxes 


105,506



108,922
















Net earnings


$

206,836


$

180,578














Net earnings per share - Basic

$

0.90


$

0.74



Net earnings per share - Diluted

$

0.89


$

0.72














Weighted average shares outstanding - Basic


229,086



245,546



Weighted average shares outstanding - Diluted


232,683



249,799













BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, unaudited)



















May 26, 


May 28, 








2012


2011















Assets























Current assets:












 Cash and cash equivalents



$

1,075,184


$

1,228,973




 Short term investment securities



611,325



603,901




 Merchandise inventories




2,202,846



2,083,008




 Other current assets




310,478



363,665
















        Total current assets




4,199,833



4,279,547















Long term investment securities




94,761



118,343



Property and equipment, net




1,220,245



1,108,621



Other assets





309,493



311,022




















$

5,824,332


$

5,817,533















Liabilities and Shareholders' Equity





















Current liabilities:












Accounts payable



$

866,253


$

844,247




Accrued expenses and other current liabilities



319,851



301,477




Merchandise credit and gift card liabilities



223,328



192,250




Current income taxes payable



103,042



111,418
















       Total current liabilities




1,512,474



1,449,392















Deferred rent and other liabilities




341,073



304,465



Income taxes payable




96,216



127,899
















       Total liabilities




1,949,763



1,881,756















Total shareholders' equity




3,874,569



3,935,777




















$

5,824,332


$

5,817,533


























BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands, unaudited)
























 Three Months Ended 

























May 26, 


May 28, 











2012


2011


































Cash Flows from Operating Activities:



























Net earnings





$

206,836


$

180,578





Adjustments to reconcile net earnings to net cash












provided by operating activities:












Depreciation





43,410



44,221






Stock-based compensation




12,829



13,717






Tax benefit from stock-based compensation



11,445



(3,897)






Deferred income taxes





(10,558)



(14,042)






Other






(277)



(454)






(Increase) decrease in assets:













     Merchandise inventories




(130,956)



(114,101)






     Trading investment securities



(366)



(1,670)






     Other current assets




(8,268)



(10,726)






     Other assets





(2,190)



399






Increase (decrease) in liabilities:













     Accounts payable





119,886



139,926






     Accrued expenses and other current liabilities



(12,346)



(5,558)






     Merchandise credit and gift card liabilities



13,682



(811)






     Income taxes payable




27,390



26,605






     Deferred rent and other liabilities



1,845



4,147




















Net cash provided by operating activities



272,362



258,334



















Cash Flows from Investing Activities:



























Purchase of held-to-maturity investment securities



(281,130)



(365,491)





Redemption of held-to-maturity investment securities



421,875



365,625





Redemption of available-for-sale investment securities



6,475



7,050





Capital expenditures 





(70,788)



(33,142)




















Net cash provided by (used in) investing activities



76,432



(25,958)



















Cash Flows from Financing Activities:



























Proceeds from exercise of stock options



26,140



57,629





Excess tax benefit from stock-based compensation



3,360



249





Repurchase of common stock, including fees



(306,276)



(244,868)




















Net cash used in financing activities




(276,776)



(186,990)




















Net increase in cash and cash equivalents



72,018



45,386



















Cash and cash equivalents:




























Beginning of period 





1,003,166



1,183,587





End of period





$

1,075,184


$

1,228,973

































 

 

SOURCE Bed Bath & Beyond Inc.

Investor Contacts: Kenneth C. Frankel, +1-908-855-4554, or Eugene A. Castagna, +1-908-855-4110