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Bed Bath & Beyond Inc. Reports Results For Fiscal Third Quarter

       Bed Bath & Beyond Inc. Reports Results For Fiscal Third Quarter

- Net Earnings per Diluted Share of $1.12

- Quarterly Comparable Store Sales Increase by Approximately 1.3%

- Quarterly Net Sales Increase by Approximately 6.0%

- Now Modeling Fiscal Fourth Quarter 2013 Net Earnings per Diluted Share of
Approximately $1.60 to $1.67

- Now Modeling Full Year Net Earnings per Diluted Share to be Approximately
$4.79 to $4.86

PR Newswire

UNION, N.J., Jan. 8, 2014

UNION, N.J., Jan. 8, 2014 /PRNewswire/ --Bed Bath & Beyond Inc. today
reported net earnings of $1.12 per diluted share ($237.2 million) in the
fiscal third quarter ended November 30, 2013, an increase of approximately
8.7% versus net earnings of $1.03 per diluted share ($232.8 million) in the
same quarter a year ago. Net sales for the fiscal third quarter of 2013 were
approximately $2.865 billion, an increase of approximately 6.0% from net sales
of approximately $2.702 billion reported in the fiscal third quarter of 2012.
Comparable store sales in the fiscal third quarter of 2013 increased by
approximately 1.3%, compared with an increase of approximately 1.7% in last
year's fiscal third quarter. 

During the fiscal third quarter of 2013, the Company repurchased approximately
$171 million of its common stock, representing approximately 2.3 million
shares. As of November 30, 2013, the remaining balance of the existing share
repurchase program authorized in December 2012 was approximately $1.7
billion.

For the fiscal nine months ended November 30, 2013, the Company reported net
earnings of $3.20 per diluted share ($689.0 million), an increase of
approximately 10.7% over net earnings of $2.89 per diluted share ($663.9
million) in the corresponding period a year ago. Net sales for the fiscal
nine months of 2013 were approximately $8.301 billion, an increase of
approximately 10.5% from net sales of approximately $7.513 billion in the
corresponding period a year ago. Comparable store sales for both the fiscal
nine months of 2013 and the fiscal nine months of 2012 increased by
approximately 2.7%.

The Company is now modeling net earnings per diluted share to be approximately
$1.60 to $1.67 for the fiscal fourth quarter of 2013, as compared to our
previous model of $1.70 to $1.77, and to be approximately $4.79 to $4.86 for
the full year, which will include Cost Plus, Inc. ("World Market") and Linen
Holdings for all of fiscal 2013, as compared to our previous model of $4.88 to
$5.01. The modeling of net earnings per diluted share is based upon a number
of planning assumptions which will be described in the Company's third quarter
of fiscal 2013 conference call. Information regarding access to the call is
available in the Investor Relations section of the Company's website,
www.bedbathandbeyond.com.

The accompanying consolidated financial information for fiscal 2013 includes
the accounts of Linen Holdings and World Market from the beginning of the
fiscal year and for fiscal 2012, includes the accounts of Linen Holdings since
the date of its acquisition on June 1, 2012 and World Market since the date of
its acquisition on June 29, 2012. Linen Holdings is excluded from the
comparable store sales calculations and will continue to be excluded on an
ongoing basis because it represents non-retail activity. World Market was
excluded from the comparable store sales calculations through the end of the
fiscal first half of 2013 and is included beginning with the fiscal third
quarter of 2013.

As of November 30, 2013, the Company had a total of 1,491 stores, including
1,011 Bed Bath & Beyond stores in all 50 states, the District of Columbia,
Puerto Rico and Canada, 269 stores under the names of World Market, Cost Plus
World Market or Cost Plus, 86 buybuy BABY stores, 76 stores under a
combination of the names of Christmas Tree Shops or andThat!, and 49 stores
under the names of Harmon or Harmon Face Values. During the fiscal third
quarter, the Company opened five Bed Bath & Beyond stores, two stores under a
combination of the names Christmas Tree Shops or andThat! and three World
Market stores as well as closed three Bed Bath & Beyond stores. Consolidated
store space, net of openings and closings for all our concepts, as of November
30, 2013 was approximately 42.5 million square feet. In addition, the Company
is a partner in a joint venture which operates four stores in the Mexico City
market under the name Bed Bath & Beyond which includes one store opened since
the beginning of the fiscal fourth quarter of 2013.

* * * * * * * *

Bed Bath & Beyond Inc. and subsidiaries (the "Company") operates a chain of
retail stores under the names of Bed Bath & Beyond, World Market, Cost Plus
World Market, Cost Plus, a combination of the names Christmas Tree Shops or
andThat!, 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 Bed Bath & Beyond. 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 provider of a variety of textile products,
amenities and other goods to institutional 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
qualified employees 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; 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 the acts of third parties; changes
to statutory, regulatory and legal requirements; new, or developments in
existing, litigation, claims or assessments; changes to, or new, tax laws or
interpretation of existing tax laws; changes to, or new, accounting standards
including, without limitation, changes to lease accounting standards; and the
integration of acquired businesses. 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         Nine Months Ended
                         November 30,  November    November    November
                                         24,         30,         24,
                         2013            2012         2013         2012
Net sales                $   2,864,837   $ 2,701,801  $ 8,300,649  $ 7,513,108
Cost of sales                1,743,147     1,627,791    5,032,504    4,519,230
    Gross profit             1,121,690     1,074,010    3,268,145    2,993,878
Selling, general and         747,043       712,361      2,180,631    1,953,694
administrative expenses
    Operating profit         374,647       361,649      1,087,514    1,040,184
Interest income              1,314         (3,122)      (586)        (3,909)
(expense), net
    Earnings before
    provision for income     375,961       358,527      1,086,928    1,036,275
    taxes
Provision for income         138,764       125,777      397,937      372,359
taxes
    Net earnings         $   237,197     $ 232,750    $ 688,991    $ 663,916
Net earnings per share - $   1.13        $ 1.04       $ 3.24       $ 2.93
Basic
Net earnings per share - $   1.12        $ 1.03       $ 3.20       $ 2.89
Diluted
Weighted average shares      209,704       223,687      212,430      226,362
outstanding - Basic
Weighted average shares      212,315       226,661      215,116      229,551
outstanding - Diluted



BED BATH & BEYOND INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, unaudited)
                                                  November 30,  November 24,
                                                  2013           2012
Assets
Current assets:
            Cash and cash equivalents            $  471,064     $  672,262
            Short term investment securities        223,114        112,450
            Merchandise inventories                 2,881,561      2,763,907
            Other current assets                    478,865        419,234
             Total current assets             4,054,604      3,967,853
Long term investment securities                      87,021         74,668
Property and equipment, net                          1,523,253      1,433,592
Goodwill                                             486,279        492,217
Other assets                                         393,332        418,506
                                                  $  6,544,489   $  6,386,836
Liabilities and Shareholders' Equity
Current liabilities:
            Accounts payable                      $  1,145,281   $  1,088,651
            Accrued expenses and other current       417,073        423,202
            liabilities
            Merchandise credit and gift card         267,332        235,789
            liabilities
            Current income taxes payable             3,674          89,271
             Total current liabilities         1,833,360      1,836,913
Deferred rent and other liabilities                  493,845        479,164
Income taxes payable                                 87,456         93,637
             Total liabilities                 2,414,661      2,409,714
Total shareholders' equity                           4,129,828      3,977,122
                                                  $  6,544,489   $  6,386,836



BED BATH & BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
                                                  Nine Months Ended
                                                  November 30,  November 24,
                                                  2013           2012
Cash Flows from Operating Activities:
 Net earnings                                     $  688,991     $  663,916
 Adjustments to reconcile net earnings to net
 cash
       provided by operating activities:
       Depreciation                                  160,672        139,411
       Stock-based compensation                      42,078         34,591
       Tax benefit from stock-based compensation     12,676         13,056
       Deferred income taxes                         6,275          (13,897)
       Other                                         (1,007)        826
       Increase in assets, net of effect of
       acquisitions:
        Merchandise inventories                  (415,347)      (496,100)
        Trading investment securities            (10,702)       (3,508)
        Other current assets                     (101,907)      (86,975)
        Other assets                             (5,478)        (10,655)
       Increase (decrease) in liabilities, net of
       effect of acquisitions:
        Accounts payable                         244,761        292,305
        Accrued expenses and other current       24,301         8,398
       liabilities
        Merchandise credit and gift card         15,851         21,196
       liabilities
        Income taxes payable                     (66,284)       32,110
        Deferred rent and other liabilities      7,056          12,742
 Net cash provided by operating activities           601,936        607,416
Cash Flows from Investing Activities:
 Purchase of held-to-maturity investment             (682,339)      (393,578)
 securities
 Redemption of held-to-maturity investment           909,375        1,031,249
 securities
 Redemption of available-for-sale investment         -              31,715
 securities
 Capital expenditures                               (228,928)      (238,405)
 Investment in unconsolidated joint venture          (3,436)        -
 Payment for acquisitions, net of cash acquired      -              (643,098)
 Payment for acquisition of trademarks               -              (40,000)
 Net cash used in investing activities               (5,328)        (252,117)
Cash Flows from Financing Activities:
 Proceeds from exercise of stock options             54,431         31,660
 Excess tax benefit from stock-based                 7,293          3,885
 compensation
 Payment for credit facility assumed in              -              (25,511)
 acquisition
 Repurchase of common stock, including fees          (752,239)      (696,237)
 Net cash used in financing activities               (690,515)      (686,203)
 Net decrease in cash and cash equivalents           (93,907)       (330,904)
Cash and cash equivalents:
 Beginning of period                                564,971        1,003,166
 End of period                                    $  471,064     $  672,262



SOURCE Bed Bath & Beyond Inc.

Website: http://www.bedbathandbeyond.com
Contact: Kenneth C. Frankel, (908) 855-4554; Eugene A. Castagna, (908)
855-4110
 
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