BED BATH & BEYOND INC. 
By UNION, N.J., June 22, 2011 /PRNewswire/ -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) today reported net earnings of $.72 per diluted share ($180.6 million) in the fiscal first quarter ended May 28, 2011, an increase of approximately 38% versus net earnings of $.52 per diluted share ($137.6 million) in the same quarter a year ago. Net sales for the fiscal first quarter of 2011 were approximately $2.110 billion, an increase of approximately 9.7% from net sales of approximately $1.923 billion reported in the fiscal first quarter of 2010. Comparable store sales in the fiscal first quarter of 2011 increased by approximately 7.0%, compared with an increase of approximately 8.4% in last year's fiscal first quarter.
During the fiscal first quarter of 2011, the Company repurchased approximately $245 million of its common stock representing approximately 4.8 million shares. This included the completion of the $1 billion share repurchase program authorized in 2007. As of May 28, 2011, the balance remaining of the share repurchase program authorized in December 2010 was approximately $1.892 billion dollars.
The Company is now modeling net earnings per diluted share to be approximately $.77 to $.82 for the fiscal second quarter of 2011 and to increase by approximately 15% to 20% for all of fiscal 2011.
As of May 28, 2011, the Company had a total of 1,142 stores, including 984 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 66 Christmas Tree Shops stores, 47 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. During the fiscal first quarter, the Company opened three Bed Bath & Beyond stores and two buybuy BABY stores and closed one Bed Bath & Beyond store and one Harmon store. Consolidated store space as of May 28, 2011 was approximately 35.2 million square feet. Since the beginning of the second quarter of fiscal 2011 on May 29, 2011, one additional Bed Bath & Beyond store, one Christmas Tree Shops store and five buybuy BABY stores have been opened. 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."
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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. In addition, the Company is a partner in a joint venture which operates retail stores in Mexico under the name "Home & More." 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. 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 that may be outside the Company's control. 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; 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; 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; 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 28, May 29,
2011 2010
---- ----
Net sales $2,109,951 $1,923,051
Cost of sales 1,252,379 1,148,015
--------- ---------
Gross profit 857,572 775,036
Selling, general and
administrative expenses 568,624 549,642
------- -------
Operating profit 288,948 225,394
Interest income 552 516
--- ---
Earnings before provision for
income taxes 289,500 225,910
Provision for income taxes 108,922 88,357
------- ------
Net earnings $180,578 $137,553
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Net earnings per share - Basic $0.74 $0.53
Net earnings per share -
Diluted $0.72 $0.52
Weighted average shares
outstanding -Basic 245,546 259,400
Weighted average shares
outstanding -Diluted 249,799 263,638
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, unaudited)
May 28, May 29,
2011 2010
---- ----
Assets
Current assets:
Cash and cash equivalents $1,228,973 $1,083,985
Short term investment
securities 603,901 560,174
Merchandise inventories 2,083,008 1,846,140
Other current assets 363,665 292,054
------- -------
Total current assets 4,279,547 3,782,353
--------- ---------
Long term investment securities 118,343 133,835
Property and equipment, net 1,108,621 1,103,367
Other assets 311,022 341,471
------- -------
$5,817,533 $5,361,026
========== ==========
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable $844,247 $678,685
Accrued expenses and other
current liabilities 301,477 271,193
Merchandise credit and gift
card liabilities 192,250 175,404
Current income taxes payable 111,418 89,400
------- ------
Total current liabilities 1,449,392 1,214,682
--------- ---------
Deferred rent and other
liabilities 304,465 257,312
Income taxes payable 127,899 105,813
------- -------
Total liabilities 1,881,756 1,577,807
--------- ---------
Total shareholders' equity 3,935,777 3,783,219
--------- ---------
$5,817,533 $5,361,026
========== ==========
BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended
------------------
May 28, May 29,
2011 2010
---- ----
Cash Flows from
Operating Activities:
Net earnings $180,578 $137,553
Adjustments to
reconcile net earnings
to net cash
provided by operating
activities:
Depreciation 44,221 45,013
Stock-based
compensation 13,717 11,836
Tax benefit from stock-
based compensation (3,897) (2,679)
Deferred income taxes (14,042) (1,303)
Other (454) (304)
(Increase) decrease in
assets:
Merchandise inventories (114,101) (86,437)
Trading investment
securities (1,670) (1,139)
Other current assets (10,726) (19,122)
Other assets 399 128
Increase (decrease) in
liabilities:
Accounts payable 139,926 77,767
Accrued expenses and
other current
liabilities (5,558) (10,681)
Merchandise credit and
gift card liabilities (811) 2,600
Income taxes payable 26,605 7,957
Deferred rent and other
liabilities 4,147 11,094
----- ------
Net cash provided by
operating activities 258,334 172,283
------- -------
Cash Flows from
Investing Activities:
Purchase of held-to-
maturity investment
securities (365,491) (377,860)
Redemption of held-to-
maturity investment
securities 365,625 217,520
Redemption of
available-for-sale
investment securities 7,050 30,850
Capital expenditures (33,142) (39,032)
------- -------
Net cash used in
investing activities (25,958) (168,522)
------- --------
Cash Flows from
Financing Activities:
Proceeds from exercise
of stock options 57,629 68,364
Excess tax benefit from
stock-based
compensation 249 962
Repurchase of common
stock, including fees (244,868) (85,202)
-------- -------
Net cash used in
financing activities (186,990) (15,876)
-------- -------
Net increase (decrease)
in cash and cash
equivalents 45,386 (12,115)
Cash and cash
equivalents:
Beginning of period 1,183,587 1,096,100
--------- ---------
End of period $1,228,973 $1,083,985
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SOURCE Bed Bath & Beyond Inc.
