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

Wed Dec 19, 2012 4:15pm EST

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- Net Earnings per Diluted Share of $1.03


UNION, N.J.,  Dec. 19, 2012  /PRNewswire/ -- Bed Bath & Beyond Inc.  today
reported net earnings of  $1.03  per diluted share ($232.8 million) in the
fiscal third quarter ended  November 24, 2012, an increase of approximately 8.4%
versus net earnings of  $.95  per diluted share ($228.5 million) in the same
quarter a year ago.  Net sales for the fiscal third quarter of 2012 were
approximately  $2.702 billion, an increase of approximately 15.3% from net sales
of approximately  $2.344 billion  reported in the fiscal third quarter of 2011. 
Comparable store sales in the fiscal third quarter of 2012 increased by
approximately 1.7%, compared with an increase of approximately 4.1% in last
year's fiscal third quarter.  The Company estimates that the impact of Hurricane
Sandy reduced its comparable store sales percentage during the fiscal third
quarter by approximately 0.9%.

The Company is pleased to announce that its Board of Directors has authorized a
new  $2.5 billion  share repurchase program.  The Company is currently planning
that the new share repurchase program will commence after completion of the
existing share repurchase program.  During the fiscal third quarter of 2012, the
Company repurchased approximately  $191 million  of its common stock,
representing approximately 3.1 million shares, under its existing share
repurchase program authorized in December 2010.  As of  November 24, 2012, the
remaining balance of the existing share repurchase program was approximately 
$223 million.  Since 2004 through the fiscal third quarter of 2012, the Company
has returned approximately  $4.7 billion  to our shareholders through share
repurchases.

"Our Board authorized this new share repurchase program based upon its continued
confidence in our Company's long-term growth potential, financial outlook and
cash flow generation," said  Steven Temares, Chief Executive Officer and Member
of the Board of Directors.  "It is anticipated that this  $2.5 billion  share
repurchase program will be funded from current cash and future cash flows.  That
said, our Company's Board of Directors continues to review our capital structure
on an ongoing basis.  In addition to providing value to our shareholders through
share repurchase programs, our strong operations should allow us to continue to
invest in our infrastructure and maintain our flexibility to take advantage of
opportunities as they may arise."

For the fiscal nine months ended  November 24, 2012, the Company reported net
earnings of  $2.89  per diluted share ($663.9 million), an increase of
approximately 11.2% over net earnings of  $2.60  per diluted share ($638.5
million) in the corresponding period a year ago.  Net sales for the fiscal nine
months of 2012 were approximately  $7.513 billion, an increase of approximately
11.0% from net sales of approximately  $6.768 billion  in the corresponding
period a year ago.  Comparable store sales for the fiscal nine months of 2012
increased by approximately 2.7%, compared with an increase of approximately 5.5%
in last year's fiscal nine months.   

The Company is modeling net earnings per diluted share to be approximately 
$1.60 to $1.67  for the fiscal fourth quarter of 2012 and, consistent with prior
estimates, to be approximately  $4.48 to $4.54  for all of fiscal 2012, which
will be 53 weeks and includes World Market and Linen Holdings from the date of
each acquisition to the end of the fiscal year.  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 2012 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 includes the accounts of 
Linen Holdings  since the date of its acquisition on  June 1, 2012  and  Cost
Plus, Inc.  ("World Market") since the date of its acquisition on  June 29,
2012.   Linen Holdings, a business-to-business distributor, is excluded from the
comparable store sales calculations and will continue to be excluded on an
ongoing basis as long as it does not meet the Company's definition of comparable
store sales.   World Market  is excluded from the comparable store sales
calculations for the fiscal third quarter and nine months of 2012, and will
continue to be excluded from the comparable store sales calculations until after
the anniversary of the acquisition.

As of  November 24, 2012, the Company had a total of 1,466 stores, including
1,003  Bed Bath & Beyond  stores in all 50 states, the  District of Columbia, 
Puerto Rico  and  Canada, 264 stores under the names of  World Market,  Cost
Plus World Market, or  World Market Stores, 74 stores under the names of 
Christmas Tree Shops  or  andThat!, 78  buybuy BABY  stores and 47 stores under
the names of  Harmon  or  Harmon Face Values.  During the fiscal third quarter,
the Company opened four  Bed Bath & Beyond  stores, seven  buybuy BABY  stores,
six  World Market  stores and one  andThat!  store while closing one  Bed Bath &
Beyond  store. Consolidated store space as of  November 24, 2012  was
approximately 41.9 million square feet. Since the beginning of the fourth
quarter of fiscal 2012 on  November 25, 2012, one  Bed Bath & Beyond  store and
two  buybuyBABY  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."

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, World Market Stores, Christmas Tree Shops, 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 "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 the acts of third parties;
changes to statutory, regulatory and legal requirements; 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 24,               November 26,           November 24,               November 26,           
                                                                               2012                       2011                   2012                       2011                   
                                                                                                                                                                               
                                                                                                                                                                               
   Net sales                                                                     $        2,701,801        $        2,343,561    $        7,513,108        $        6,767,576    
                                                                                                                                                                               
   Cost of sales                                                                          1,627,791                 1,384,868             4,519,230                 4,000,312    
                                                                                                                                                                               
                               Gross profit                                             1,074,010                 958,693               2,993,878                 2,767,264    
                                                                                                                                                                               
   Selling, general and administrative expenses                                            712,361                   601,673               1,953,694                 1,749,660    
                                                                                                                                                                               
                               Operating profit                                         361,649                   357,020               1,040,184                 1,017,604    
                                                                                                                                                                               
   Interest expense, net                                                                  (3,122)                   (602)                 (3,909)                   (1,922)      
                                                                                                                                                                               
                               Earnings before provision for income taxes                358,527                   356,418               1,036,275                 1,015,682    
                                                                                                                                                                               
   Provision for income taxes                                                              125,777                   127,874               372,359                   377,188      
                                                                                                                                                                               
                               Net earnings                                    $        232,750          $        228,544      $        663,916          $        638,494      
                                                                                                                                                                               
   Net earnings per share - Basic                                                 $        1.04             $        0.96         $        2.93             $        2.64         
   Net earnings per share - Diluted                                               $        1.03             $        0.95         $        2.89             $        2.60         
                                                                                                                                                                               
   Weighted average shares outstanding - Basic                                             223,687                   237,802               226,362                   242,033      
   Weighted average shares outstanding - Diluted                                           226,661                   241,718               229,551                   246,019      


 BED BATH & BEYOND INC. AND SUBSIDIARIES                                                                                     
 Consolidated Balance Sheets                                                                                                 
 (in thousands, unaudited)                                                                                                   
                                                                                                                   
                                                                         November 24,           November 26,         
                                                                         2012                   2011                 
                                                                                                                   
   Assets                                                                                                           
                                                                                                                   
   Current assets:                                                                                                  
                 Cash and cash equivalents                                $        672,262      $        765,750    
                 Short term investment securities                                   112,450               761,930    
                 Merchandise inventories                                           2,763,907             2,357,254  
                 Other current assets                                              419,234               405,950    
                                                                                                                   
                 Total current assets                                              3,967,853             4,290,884  
                                                                                                                   
   Long term investment securities                                                  74,668                101,864    
   Property and equipment, net                                                      1,433,592             1,160,994  
   Other assets                                                                    910,723               301,374    
                                                                                                                   
                                                                         $        6,386,836    $        5,855,116  
                                                                                                                   
   Liabilities and Shareholders' Equity                                                                               
                                                                                                                   
   Current liabilities:                                                                                             
                 Accounts payable                                         $        1,088,651    $        954,281    
                 Accrued expenses and other current liabilities                     423,202               346,871    
                 Merchandise credit and gift card liabilities                       235,789               197,932    
                 Current income taxes payable                                       89,271                2,444      
                                                                                                                   
                 Total current liabilities                                         1,836,913             1,501,528  
                                                                                                                   
   Deferred rent and other liabilities                                              479,164               318,814    
   Income taxes payable                                                             93,637                124,262    
                                                                                                                   
                 Total liabilities                                                 2,409,714             1,944,604  
                                                                                                                   
   Total shareholders' equity                                                       3,977,122             3,910,512  
                                                                                                                   
                                                                         $        6,386,836    $        5,855,116  


 BED BATH & BEYOND INC. AND SUBSIDIARIES                                                                                                                              
 Consolidated Statements of Cash Flows                                                                                                                                
 (in thousands, unaudited)                                                                                                                                            
                                                                                                                                                          
                                                                                                          Nine Months Ended                                   
                                                                                                                                                          
                                                                                                          November 24,               November 26,           
                                                                                                          2012                       2011                   
                                                                                                                                                          
                                                                                                                                                          
   Cash Flows from Operating Activities:                                                                                                                      
                                                                                                                                                          
             Net earnings                                                                                  $        663,916          $        638,494      
             Adjustments to reconcile net earnings to net cash                                                                                                
                          provided by operating activities:                                                                                                  
                          Depreciation                                                                              139,411                   131,989      
                          Stock-based compensation                                                                   34,591                    34,682       
                          Tax benefit from stock-based compensation                                                   13,056                    (430)        
                          Deferred income taxes                                                                     (13,897)                  13,596       
                          Other                                                                                    826                       (1,262)      
                          (Increase) decrease in assets, net of effect of acquisitions:                                                                       
                          Merchandise inventories                                                                    (496,100)                 (388,347)    
                          Trading investment securities                                                               (3,508)                   (882)        
                          Other current assets                                                                       (86,975)                  (55,697)     
                          Other assets                                                                              (10,655)                  903          
                          Increase (decrease) in liabilities, net of effect of acquisitions:                                                                  
                          Accounts payable                                                                          292,305                   238,495      
                          Accrued expenses and other current liabilities                                              8,398                     33,663       
                          Merchandise credit and gift card liabilities                                                21,196                    4,871        
                          Income taxes payable                                                                       32,110                    (97,435)     
                          Deferred rent and other liabilities                                                         12,742                    15,850       
                                                                                                                                                          
             Net cash provided by operating activities                                                                 607,416                   568,490      
                                                                                                                                                          
   Cash Flows from Investing Activities:                                                                                                                      
                                                                                                                                                          
             Purchase of held-to-maturity investment securities                                                        (393,578)                 (1,277,815)  
             Redemption of held-to-maturity investment securities                                                      1,031,249                 1,128,125    
             Redemption of available-for-sale investment securities                                                    31,715                    15,550       
             Capital expenditures                                                                                    (238,405)                 (159,244)    
             Payment for acquisitions, net of cash acquired                                                            (668,609)                 -            
             Payment for acquisition of trademarks                                                                     (40,000)                  -            
                                                                                                                                                          
             Net cash used in investing activities                                                                    (277,628)                 (293,384)    
                                                                                                                                                          
   Cash Flows from Financing Activities:                                                                                                                      
                                                                                                                                                          
             Proceeds from exercise of stock options                                                                   31,660                    161,705      
             Excess tax benefit from stock-based compensation                                                          3,885                     4,638        
             Repurchase of common stock, including fees                                                                (696,237)                 (859,286)    
                                                                                                                                                          
             Net cash used in financing activities                                                                    (660,692)                 (692,943)    
                                                                                                                                                          
             Net decrease in cash and cash equivalents                                                                 (330,904)                 (417,837)    
                                                                                                                                                          
   Cash and cash equivalents:                                                                                                                                
             Beginning of period                                                                                     1,003,166                 1,183,587    
             End of period                                                                                 $        672,262          $        765,750      


SOURCE  Bed Bath & Beyond Inc.


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