-- Net Earnings per Share for Quarter Increase to $.55
-- Quarterly Net Sales Increase by 10.0%
-- Quarterly Comparable Store Sales Increase by 2.2%
-- Board of Directors Authorizes a New $1 Billion Share Repurchase Program
UNION, N.J.,
For the fiscal first half ended
During the fiscal second quarter of 2007, the Company repurchased approximately 6.7 million shares of its common stock for an aggregate cost of approximately
Bed Bath & Beyond Inc. also announced that its Board of Directors has authorized a new
'Our Board took this action based upon its continued confidence in our Company's long-term growth potential, financial outlook and excess cash flow generation,' said Steven Temares, Chief Executive Officer and Member of the Board of Directors. 'It is currently anticipated that this new
As of
Bed Bath & Beyond Inc. and subsidiaries (the 'Company') is a nationwide chain of retail stores, operating under the names of Bed Bath & Beyond, Christmas Tree Shops, Harmon 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 & 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: changes in the retailing environment and consumer preferences and spending habits; demographics and other macro-economic factors that may impact the level of spending for the types of merchandise sold by the Company; general economic conditions; 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; 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 matters arising out of the inquiry commenced by the US Attorney for the District of New Jersey relating to the Company's stock option grants, any tax implications relating to the Company's stock option grants, the outcome of the shareholder derivative actions filed against certain of the Company's officers and directors, 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 Six Months Ended
September 1, August 26, September 1, August 26,
2007 2006 2007 2006
Net sales $1,767,716 $1,607,239 $3,321,009 $3,003,202
Cost of sales 1,035,558 928,990 1,942,742 1,734,855
Gross profit 732,158 678,249 1,378,267 1,268,347
Selling, general
and administrative
expenses 511,121 458,627 1,002,839 899,975
Operating profit 221,037 219,622 375,428 368,372
Interest income 6,717 9,928 16,607 19,587
Earnings before
provision for
income taxes 227,754 229,550 392,035 387,959
Provision for
income taxes 80,746 84,015 140,380 141,993
Net earnings $147,008 $145,535 $251,655 $245,966
Net earnings per
share - Basic $0.55 $0.52 $0.93 $0.88
Net earnings per
share - Diluted $0.55 $0.51 $0.92 $0.86
Weighted average
shares
outstanding - Basic 266,069 280,567 269,817 280,385
Weighted average
shares
outstanding - Diluted 269,531 284,654 273,890 284,903
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
September 1, August 26,
2007 2006 (1)
Assets
Current assets:
Cash and cash equivalents $ 122,963 $ 167,994
Short term investment securities 460,771 649,253
Merchandise inventories 1,602,677 1,421,922
Other current assets 288,621 143,854
Total current assets 2,475,032 2,383,023
Long term investment securities 32,152 332,980
Property and equipment, net 994,344 801,438
Other assets 316,203 209,339
$3,817,731 $3,726,780
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 649,052 $ 592,210
Accrued expenses and
other current liabilities 255,904 242,487
Merchandise credit and
gift card liabilities 151,557 123,510
Current income taxes payable 49,518 92,670
Total current liabilities 1,106,031 1,050,877
Deferred rent and other liabilities 175,107 161,007
Income taxes payable 115,926 -
Total liabilities 1,397,064 1,211,884
Total shareholders' equity 2,420,667 2,514,896
$ 3,817,731 $ 3,726,780
(1) Restated for the implementation of Staff Accounting Bulletin No. 108.
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended
September 1, August 26,
2007 2006
Cash Flows from Operating Activities:
Net earnings $ 251,655 $ 245,966
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Depreciation 75,177 62,603
Amortization of bond premium 1,123 2,007
Stock-based compensation 20,562 24,287
Excess tax benefit from
stock-based compensation 470 1,775
Deferred income taxes (30,227) (20,135)
Increase in assets, net of
effect of acquisition:
Merchandise inventories (82,369) (120,202)
Trading investment securities (2,117) (1,392)
Other current assets (31,180) (20,792)
Other assets (312) (291)
Increase (decrease) in liabilities,
net of effect of acquisition:
Accounts payable 51,824 68,734
Accrued expenses and
other current liabilities 8,556 (1)
Merchandise credit and
gift card liabilities 4,280 9,996
Income taxes payable 2,027 (34,107)
Deferred rent and other liabilities 8,437 15,275
Net cash provided by operating activities 277,906 233,723
Cash Flows from Investing Activities:
Purchase of held-to-maturity
investment securities - (124,124)
Redemption of held-to-maturity
investment securities 188,669 138,011
Purchase of available-for-sale
investment securities (644,330) (670,425)
Redemption of available-for-sale
investment securities 841,305 471,665
Capital expenditures (153,296) (135,760)
Payment for acquisition,
net of cash acquired (85,893) -
Net cash provided by (used in)
investing activities 146,455 (320,633)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 10,576 10,225
Excess tax benefit from
stock-based compensation 2,971 4,504
Repurchase of common stock, including fees (528,326) (855)
Payment of deferred purchase
price for acquisition - (6,667)
Net cash (used in) provided by
financing activities (514,779) 7,207
Net decrease in cash and cash equivalents (90,418) (79,703)
Cash and cash equivalents:
Beginning of period 213,381 247,697
End of period $ 122,963 $ 167,994
SOURCE Bed Bath & Beyond Inc.