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Press release from PR Newswire

Bed Bath & Beyond Inc. Reports Results For Fiscal Year Ended February 27, 2010

Wednesday, April 07, 2010

Bed Bath & Beyond Inc. Reports Results For Fiscal Year Ended February 27, 201016:15 EDT Wednesday, April 07, 2010- Net Earnings per Diluted Share of $.86 for Q4; $2.30 for Full Year - Quarterly Comparable Store Sales Increase by 11.5% - Quarterly Net Sales Increase by 16.7% - Modeling Fiscal First Quarter 2010 Net Earnings per Diluted Share of Approximately $.44 to $.48 - Modeling Fiscal 2010 Net Earnings per Diluted Share to Increase by Approximately 10% to 15%UNION, N.J., April 7 /PRNewswire-FirstCall/ -- Bed Bath & Beyond Inc. today reported net earnings of $.86 per diluted share ($226.0 million) in the fiscal fourth quarter ended February 27, 2010, an increase of approximately 56% versus net earnings of $.55 per diluted share ($141.4 million) in the same quarter a year ago. �Net sales for the fiscal fourth quarter of 2009 were approximately $2.244 billion, an increase of approximately 16.7% from net sales of approximately $1.923 billion reported in the fiscal fourth quarter of 2008. �Comparable store sales in the fiscal fourth quarter of 2009 increased by approximately 11.5%, compared with a decrease of approximately 4.3% in last year's fiscal fourth quarter. Net earnings for the fiscal year ended February 27, 2010 were $2.30 per diluted share ($600.0 million), compared with net earnings per diluted share of $1.64 ($425.1 million) a year ago. �Net sales for fiscal 2009 were approximately $7.829 billion, an increase of approximately 8.6% from the prior fiscal year. �Comparable store sales for fiscal 2009 increased by approximately 4.4%, compared with a decrease of approximately 2.4% last year. For fiscal 2010, the Company is modeling net earnings per diluted share to be approximately $.44 to $.48 for the first quarter and to increase by approximately 10% to 15% for the full year.As of February 27, 2010, the Company had a total of 1,100 stores, including 965 Bed Bath & Beyond stores in 49 states, the District of Columbia, Puerto Rico and Canada, 61 Christmas Tree Shops stores, 29 buybuy BABY stores and 45 stores under the names of Harmon or Harmon Face Values. �During the fiscal fourth quarter, the Company opened eight Bed Bath & Beyond stores, four Christmas Tree Shops stores, three buybuy BABY stores and three Harmon Face Values stores and closed one Bed Bath & Beyond store. �Consolidated store space as of February 27, 2010 was approximately 33.7 million square feet. Since the beginning of the first quarter of fiscal 2010 on February 28, 2010, one additional Bed Bath & Beyond store and one additional buybuy BABY store 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."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, which includes 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, 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; 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. �BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Statements of Earnings(in thousands, except per share data)Three Months EndedTwelve Months EndedFebruary 27,February 28,February 27,February 28,2010200920102009(unaudited)(unaudited)(unaudited)Net sales$2,244,079$1,923,274$7,828,793$7,208,340Cost of sales1,288,5831,138,2164,620,6744,335,104Gross profit955,496785,0583,208,1192,873,236Selling, general and administrative expenses584,755553,7762,227,4322,199,340Operating profit370,741231,282980,687673,896Interest income5885404,5689,412Earnings before provision for income taxes371,329231,822985,255683,308Provision for income taxes145,28790,444385,222258,185Net earnings$226,042$141,378$600,033$425,123Net earnings per share - Basic$0.88$0.55$2.33$1.66Net earnings per share - Diluted$0.86$0.55$2.30$1.64Weighted average shares outstanding - Basic258,191256,130257,755256,410Weighted average shares outstanding - Diluted261,885258,062260,375258,619BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Balance Sheets(in thousands)February 27,February 28,20102009(unaudited)AssetsCurrent assets:Cash and cash equivalents$1,096,100$668,209Short term investment securities431,4762,000Merchandise inventories1,759,7031,642,339Other current assets276,066250,251Total current assets3,563,3452,562,799Long term investment securities132,860221,134Property and equipment, net1,119,2921,148,435Other assets336,633336,475$5,152,130$4,268,843Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable$611,163$514,734Accrued expenses and other current liabilities281,730247,508Merchandise credit and gift card liabilities172,804165,621Current income taxes payable83,85725,105Total current liabilities1,149,554952,968Deferred rent and other liabilities246,273227,209Income taxes payable103,39988,212Total liabilities1,499,2261,268,389Total shareholders' equity3,652,9043,000,454$5,152,130$4,268,843BED BATH & BEYOND INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands)Twelve Months EndedFebruary 27,February 28,20102009(unaudited)Cash Flows from Operating Activities:Net earnings$600,033$425,123Adjustments to reconcile net earnings to net cashprovided by operating activities:Depreciation184,232175,601Stock-based compensation44,23543,708Tax benefit from stock-based compensation(5,986)(1,183)Deferred income taxes(22,811)(22,325)Other(405)476(Increase) decrease in assets:Merchandise inventories(117,364)(25,358)Trading investment securities(5,610)(17)Other current assets(4,397)(3,065)Other assets526(954)Increase (decrease) in liabilities:Accounts payable96,279(40,863)Accrued expenses and other current liabilities37,905(13,301)Merchandise credit and gift card liabilities7,183(5,631)Income taxes payable70,48724,676Deferred rent and other liabilities21,10027,083Net cash provided by operating activities905,407583,970Cash Flows from Investing Activities:Purchase of held-to-maturity investment securities(403,582)-Redemption of held-to-maturity investment securities30,025-Redemption of available-for-sale investment securities38,545107,550Capital expenditures(153,680)(215,859)Investment in unconsolidated joint venture, including fees-(4,786)Net cash used in investing activities(488,692)(113,095)Cash Flows from Financing Activities:Proceeds from exercise of stock options99,72717,650Excess tax benefit from stock-based compensation6,3063,652Repurchase of common stock, including fees(94,857)(48,052)Net cash provided by (used in) financing activities11,176(26,750)Net increase in cash and cash equivalents427,891444,125Cash and cash equivalents:Beginning of period668,209224,084End of period$1,096,100$668,209SOURCE Bed Bath & Beyond Inc.For further information: Investors, Kenneth C. Frankel, +1-908-855-4554 or Lisa S. Kaplowitz, +1-908-855-4083