UNION, N.J., June 30, 2021 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) today reported financial results for the
first quarter of fiscal 2021 ended May 29, 2021.
|
Reported
|
|
Adjusted2
|
($ in millions,
except per share data)
|
Three months
ended
|
|
Three months
ended
|
|
May 29,
2021
|
May 30,
2020
|
Diff
|
|
May 29,
2021
|
May 30,
2020
|
Diff
|
Net
Sales
|
$1,954
|
$1,307
|
49%
|
|
$1,954
|
$1,307
|
49%
|
Core1
Sales Growth
|
|
|
|
|
$1,954
|
$1,128
|
73%
|
Comparable3 Sales Growth
|
|
|
|
|
|
|
86%
|
|
|
|
|
|
|
|
|
Gross
Margin
|
32.4
|
%
|
26.7%
|
+570bps
|
|
34.9%
|
26.7%
|
+820bps
|
SG&A
Margin
|
33.7
|
%
|
55.4%
|
NM
|
|
33.7%
|
55.3%
|
NM
|
|
|
|
|
|
|
|
|
Net
Income
|
($51)
|
($302)
|
$251
|
|
$5
|
($243)
|
$248
|
Adjusted2 EBITDA
|
|
|
|
|
$86
|
($291)
|
$377
|
Adjusted2 EBITDA Margin
|
|
|
|
|
4.4%
|
(22.3)%
|
NM
|
EPS -
Diluted
|
($0.48)
|
($2.44)
|
$1.96
|
|
$0.05
|
($1.96)
|
$2.01
|
Mark Tritton, Bed Bath &
Beyond's President and CEO said, "We have started the year in a
position of strength and are clearly on track to accomplish our
goals. 2021 marks the first year of
our three-year transformation following the groundwork we laid in
2020 – a year of historic and necessary change for this
organization against the backdrop of unprecedented challenges due
to COVID-19. For the first quarter, we delivered our fourth
consecutive quarter of comparable sales growth with gross margin
expansion exceeding our expectations. These results
demonstrate continued momentum with our strategies as we progress
towards the goals we outlined at year-end and at our Investor
Day."
Tritton added, "During the quarter, we successfully launched our
margin-accretive, customer-inspired Owned Brands and accelerated
growth with our Digital First, Omni-Always focus. We are
re-establishing our authority in home, recapturing market share and
unlocking our full potential. We continue to execute quarter after
quarter, and we are pleased to be raising our full year guidance
outlook today.
We have made meaningful progress against our transformational
pillars during this early stage of our multi-year plan. We have
confidently achieved each milestone along our transformation thus
far and I would like to thank our team of incredible associates for
their work in defining and driving these results. We are a
stronger, more agile company than ever before and well on our way
to building long-term growth and unlocking greater shareholder
value."
Q1 Highlights
- Core1 Sales growth of +73%; Comparable3
Sales growth of +86% versus Q1 2020
- Comparable Sales growth for Total Enterprise +3% compared to Q1
2019
- Gross Margin of 32.4% and Adjusted2 Gross Margin of
34.9%, primarily driven by Owned Brand launches and channel mix
shift due to normalized digital penetration versus the COVID-19
period last year
- Q1 Adjusted2 EBITDA of $86
million inclusive of incremental marketing investments
during the quarter
- Establishes guidance outlook for 2021 second quarter
- Raises full fiscal year 2021 guidance outlook on Sales and
Adjusted2 EBITDA; Re-establishes Adjusted EPS
guidance
Fiscal 2021 First Quarter Results (March-April-May)
- Net sales were $1.95 billion,
reflecting Core1 banner sales growth of 73% compared to
the prior year period. Net sales growth versus last year was
primarily driven by an increase in Bed Bath & Beyond banner
sales.
-
- Net sales included planned reductions of 24% from non-core
banner divestitures.
- Comparable3 sales increased 86% compared to the
prior year period, which excludes the impact of the Company's fleet
optimization activity. Compared to 2019 fiscal first quarter, total
enterprise comparable sales increased 3%, driven by digital sales
growth of 84%.
-
- Comparable3 sales included an estimated 13% impact
from fleet optimization activity when compared to the fiscal 2020
first quarter.
- Bed Bath & Beyond banner sales increased 96% compared to
the prior year period as the Company had a significant number of
stores closed during the 2020 fiscal first quarter at the onset of
the COVID-19 pandemic.
-
- Bed Bath & Beyond banner sales were driven by growth in its
key destination categories, which includes Bedding, Bath, Kitchen
Food Prep, Indoor Decor and Home Organization. In total, these
categories delivered strong sales growth of more than 100% compared
to the 2020 fiscal first quarter and growth of 7% on a comparable
sales basis versus the 2019 fiscal first quarter. These categories
represented approximately two-thirds of total Bed Bath & Beyond
banner sales in the first quarter.
- The buybuy BABY banner continued to deliver positive sales
growth with net sales increasing more than 20% compared to the 2020
fiscal first quarter, and an increase of low-single digits on a
comparable sales basis versus the 2019 fiscal first quarter.
Comparable sales were driven by more than 50% growth in
digital.
- Gross margin was 32.4% for the quarter. Excluding special items
from both periods, adjusted2 gross margin increased 820
basis points to 34.9%, primarily driven by a favorable product mix
from Owned Brand launches as well as a more normalized mix of
digital sales coupled with a strong recovery in store sales
growth.
- SG&A expense, on both a GAAP and adjusted basis, decreased
significantly compared to the prior year period, primarily due to
cost reductions including divestitures of non-core assets and lower
rent and occupancy expenses on more efficient stores. This was
partially offset by incremental marketing investments to support
the Company's "Home, Happier" campaign as well as the initial
launches of the Company's Owned Brands.
- Adjusted2 EBITDA for the period improved to
$86 million compared to last year,
primarily due to higher sales and adjusted2 gross margin
expansion, which were partially offset by incremental marketing
investments to support the Company's "Home, Happier" campaign as
well as the initial launches of the Company's Owned Brands.
- Net loss per diluted share of $0.48 includes approximately $56 million from special items. Excluding special
items, adjusted2 net earnings per diluted share was
$0.05. Special items reflect charges
such as non-cash impairments related to certain store-level assets
and tradenames, loss on sale of businesses, loss on the
extinguishment of debt, and charges recorded in connection with the
Company's restructuring and transformation initiatives.
Restructuring and transformation initiatives includes accelerated
markdowns and inventory reserves related to the planned assortment
transition to Owned Brands and costs associated with store closures
related to the Company's fleet optimization, and the income tax
impact of these items.
- As expected, operating cash flow usage of $28 million was in-line with historical first
quarter seasonality and working capital needs. Accordingly, free
cash flow5 was an investment of $102 million as a result of $74 million of planned capital expenditures in
connection with store remodels, supply chain and IT systems.
- Inventory reduced by approximately $110
million compared to the end of fiscal 2020, was primarily
related to seasonal selling and product transitions in preparation
for the introduction of the Company's Owned Brands, as well as
store closures related to the Company's fleet optimization
activity.
- $130 million in capital return to
shareholders through share repurchases.
- Cash, cash equivalents, restricted cash and investments balance
were approximately $1.2 billion.
- Total Liquidity4 was approximately $1.9 billion, including the Company's asset based
revolving credit facility.
Guidance Outlook
As a reminder, Net Sales throughout fiscal 2021 include the
Company's Core1 businesses and reflects planned
reductions related to the Company's store fleet optimization
activity.
Fiscal 2021 Second Quarter Outlook
The Company expects fiscal 2021 second quarter Net Sales of
between $2.04 billion to $2.08 billion, which only reflects sales from the
Company's Core1 businesses. Net Sales also
includes planned sales reductions from the Company's store fleet
optimization program of approximately 9% to 10%. On a Comparable
Sales basis, the Company expects to achieve growth in the
low-single digit range compared to the prior year period.
The Company expects to achieve Adjusted2 Gross Margin
in the range of 35% to 36%. This represents a sequential
improvement versus the 2021 fiscal first quarter primarily driven
by continued assortment curation and a higher penetration of the
Company's Owned Brands. Additionally, this guidance reflects
the on-going, year-over-year impact of higher, industry-wide
freight costs.
The Company expects Adjusted2 EBITDA between
$150 million to $160 million and Adjusted2 EPS in the
range of $0.48 to $0.55 for the fiscal 2021 second quarter.
Fiscal Year 2021 Outlook
Based on strong performance in the fiscal first quarter and
current expectations for the fiscal second quarter, the Company is
raising its fiscal year 2021 guidance outlook.
The Company now expects higher fiscal year 2021 Net Sales of
$8.2 billion to $8.4 billion from $8.0
billion to $8.2 billion. The
Company is raising comparable sales expectations for the second
through fourth quarters of fiscal 2021 to the Low-Single Digit
growth range versus its previously communicated guidance outlook
for Flat comparable sales growth. This compares to the
Company's robust sales performance during the second through fourth
quarters of fiscal 2020.
The Company is also increasing its Adjusted2 EBITDA
guidance to a range of $520 million
to $540 million from $500 million to $525
million and re-introduces a full fiscal year 2021
Adjusted2 EPS range of $1.40 to $1.55.
The Company is reaffirming its previously issued guidance for
Adjusted2 Gross Margin of approximately 35% and
Adjusted2 SG&A of approximately 31%.
Additional details on the Company's fiscal 2021 outlook and
visibility on the second quarter will be provided during its
conference call as well as in its investor presentation available
on the investor relations section of the Company's website at
http://bedbathandbeyond.gcs-web.com/investor-relations.
Fiscal 2021 First Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s fiscal 2021 first quarter
conference call with analysts and investors will be held today at
8:15am EDT and may be accessed by
dialing 1-888-424-8151, or if international, 1-847-585-4422, using
conference ID number 7912336#. A live audio webcast of the
conference call, along with the earnings press release, investor
presentation and supplemental financial disclosures, will also be
available on the investor relations section of the Company's
website at http://bedbathandbeyond.gcs-web.com/investor-relations.
The webcast will be available for replay after the call for a
period of at least one year.
The Company has also made available an Investor Presentation on
the investor relations section of the Company's website at
http://bedbathandbeyond.gcs-web.com/events-and-presentations.
|
(1)
|
The Company's four
Core banners include Bed Bath & Beyond, buybuy BABY, Harmon
Face Values and Decorist.
|
(2)
|
Adjusted items refer
to comparable sales as well as financial measures that are derived
from measures calculated in accordance with GAAP, which have been
adjusted to exclude certain items. Adjusted Gross Margin, Adjusted
SG&A, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted
Diluted EPS are non-GAAP financial measures. For more
information about non-GAAP financial measures, see "Non-GAAP
Information" below.
|
(3)
|
The Company notes
that first quarter growth rates in fiscal 2021 are not fully
comparable due to last year's extended store closures related to
the COVID-19 pandemic. Therefore, Comparable Sales Growth for
the three months ended May 29, 2021 has been calculated by
adjusting Core Sales for the estimated negative impact on 2021
sales of the store closures in fiscal 2020 as part of the Company's
fleet optimization program. The Company estimates that the
stores closed in 2020 as part of this fleet optimization program
would have contributed approximately 13% to Core Sales in the first
quarter of fiscal 2021. The Company believes this calculation
of comparable sales is a more meaningful reference for the current
quarter.
|
(4)
|
Total Liquidity
includes cash & investments and availability under the
Company's asset-based revolving credit facility.
|
(5)
|
Free Cash Flow is
defined as operating cash flow less capital
expenditures.
|
(6)
|
Leverage ratio
calculated using Moody's gross debt/EBITDA ratios.
|
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of merchandise in
the Home, Baby, Beauty and Wellness markets. Additionally,
the Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
The Company operates websites at bedbathandbeyond.com,
bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca,
harmondiscount.com, facevalues.com, and decorist.com. As of
May 29, 2021, the Company had a total of 1,004 stores,
including 818 Bed Bath & Beyond stores in all 50 states, the
District of Columbia, Puerto Rico and Canada, 132 buybuy BABY stores and 54 stores
under the names Harmon, Harmon Face Values or Face Values. During
the fiscal 2021 first quarter, the Company did not open any
additional stores while closing 16 Bed Bath & Beyond stores.
The joint venture to which the Company is a partner operates 10
stores in Mexico under the name
Bed Bath & Beyond.
Non-GAAP Information
This press release contains certain non-GAAP information,
including adjusted earnings before interest, income taxes,
depreciation and amortization ("EBITDA"), adjusted EBITDA margin,
adjusted gross margin, adjusted SG&A, adjusted net earnings per
diluted share, and free cash flow. Non-GAAP information is intended
to provide visibility into the Company's core operations and
excludes special items, including non-cash impairment charges
related to certain store-level assets and tradenames, loss on sale
of businesses, loss on the extinguishment of debt, charges recorded
in connection with the restructuring and transformation
initiatives, which includes accelerated markdowns and inventory
reserves related to the planned assortment transition to Owned
Brands and costs associated with store closures related to the
Company's fleet optimization and the income tax impact of these
items. The Company's definition and calculation of non-GAAP
measures may differ from that of other companies. Non-GAAP
financial measures should be viewed in addition to, and not as an
alternative for, the Company's reported GAAP financial results. For
a reconciliation to the most directly comparable US GAAP measures
and certain information relating to the Company's use of Non-GAAP
financial measures, see "Non-GAAP Financial Measures" below.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21 E of the Securities Exchange Act of 1934
including, but not limited to, the Company's progress and
anticipated progress towards its long-term objectives, as well as
more generally the status of its future liquidity and financial
condition and its outlook for the Company's fiscal 2021 second
quarter and for its 2021 fiscal year. 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, goal, preliminary, and similar words and phrases,
although the absence of those words does not necessarily mean that
statements are not forward-looking. 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; risks associated with the COVID-19 pandemic
and the governmental responses to it, including its impacts across
the Company's businesses on demand and operations, as well as on
the operations of the Company's suppliers and other business
partners, and the effectiveness of the Company's actions taken in
response to these risks; consumer preferences, spending habits and
adoption of new technologies; 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 across all channels;
pricing pressures; liquidity; the ability to achieve anticipated
cost savings, and to not exceed anticipated costs, associated with
organizational changes and investments, including the Company's
strategic restructuring program and store network optimization
strategies; the ability to attract and retain qualified employees
in all areas of the organization; the cost of labor, merchandise
and other costs and expenses; potential supply chain disruption due
to trade restrictions, and other factors such as natural disasters,
pandemics, including the COVID-19 pandemic, political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; the ability to
effectively and timely adjust the Company's plans in the face of
the rapidly changing retail and economic environment, including in
response to the COVID-19 pandemic; uncertainty in financial
markets; volatility in the price of the Company's common stock and
its effect, and the effect of other factors, including the COVID-19
pandemic, on the Company's capital allocation strategy; risks
associated with the ability to achieve a successful outcome for the
Company's business concepts and to otherwise achieve its business
strategies; the impact of intangible asset and other impairments;
disruptions to the Company's information technology systems,
including but not limited to security breaches of systems
protecting consumer and employee information or other types of
cybercrimes or cybersecurity attacks; reputational risk arising
from challenges to the Company's or a third party product or
service supplier's compliance with various laws, regulations or
standards, including those related to labor, health, safety,
privacy or the environment; reputational risk arising from
third-party merchandise or service vendor performance in direct
home delivery or assembly of product for customers; changes to
statutory, regulatory and legal requirements, including without
limitation proposed changes affecting international trade; changes
to, or new, tax laws or interpretation of existing tax laws; new,
or developments in existing, litigation, claims or assessments;
changes to, or new, accounting standards; and foreign currency
exchange rate fluctuations. Except as required by law, the Company
does not undertake any obligation to update its forward-looking
statements.
BED BATH &
BEYOND INC. AND SUBSIDIARIES Consolidated Statements
of Operations (in thousands, except per share
data) (unaudited)
|
|
|
Three Months
Ended
|
|
May 29,
2021
|
|
May 30,
2020
|
Net sales
|
$
|
1,953,812
|
|
$
|
1,307,447
|
|
|
|
|
Cost of
sales
|
1,320,118
|
|
958,958
|
|
|
|
|
Gross profit
|
633,694
|
|
348,489
|
|
|
|
|
Selling, general and
administrative expenses
|
658,762
|
|
|
724,157
|
|
|
|
|
|
Impairments
|
9,129
|
|
|
85,261
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
33,686
|
|
|
—
|
|
|
|
|
|
Loss on sale of
businesses
|
3,989
|
|
|
—
|
|
|
|
|
|
Operating loss
|
(71,872)
|
|
|
(460,929)
|
|
|
|
|
|
Interest expense,
net
|
16,000
|
|
|
17,171
|
|
|
|
|
|
Loss on
extinguishment of debt
|
265
|
|
|
—
|
|
|
|
|
|
Loss before benefit for income taxes
|
(88,137)
|
|
|
(478,100)
|
|
|
|
|
|
Benefit for income
taxes
|
(37,263)
|
|
|
(175,809)
|
|
|
|
|
|
Net loss
|
$
|
(50,874)
|
|
|
$
|
(302,291)
|
|
|
|
|
|
Net loss per share -
Basic
|
$
|
(0.48)
|
|
|
$
|
(2.44)
|
|
Net loss per share -
Diluted
|
$
|
(0.48)
|
|
|
$
|
(2.44)
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
106,772
|
|
|
123,697
|
|
Weighted average
shares outstanding - Diluted
|
106,772
|
|
|
123,697
|
|
Non-GAAP Financial Measures
The following table reconciles non-GAAP financial measures
presented in this press release or that may be presented on the
Company's first quarter conference call with analysts and
investors. The Company believes that these non-GAAP financial
measures provide management, analysts, investors and other users of
the Company's financial information with meaningful supplemental
information regarding the performance of the Company's business.
These non-GAAP financial measures should not be considered superior
to, but in addition to other financial measures prepared by the
Company in accordance with GAAP, including the year-to-year
results. The Company's method of determining these non-GAAP
financial measures may be different from other companies' methods
and, therefore, may not be comparable to those used by other
companies and the Company does not recommend the sole use of this
non-GAAP measure to assess its financial and earnings performance.
For reasons noted above, the Company is presenting certain non-GAAP
financial measures for its fiscal 2021 first quarter. In order for
investors to be able to more easily compare the Company's
performance across periods, the Company has included comparable
reconciliations for the 2020 period in the reconciliation tables
below. The Company is not providing a reconciliation of its
guidance with respect to Adjusted EBITDA because the Company is
unable to provide this reconciliation without unreasonable effort
due to the uncertainty and inherent difficulty of predicting the
occurrence, the financial impact, and the periods in which the
adjustments may be recognized. For the same reasons, the Company is
unable to address the probable significance of the unavailable
information, which could be material to future results.
Non-GAAP
Reconciliation (in thousands, except per share
data) (unaudited)
|
|
|
Three Months Ended
May 29, 2021
|
|
|
|
Excluding
|
|
|
|
Reported
|
|
Loss on sale
of Businesses
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairments
|
|
Loss on
extinguishment
of debt
|
|
Total income
tax impact
|
|
Total
Impact
|
|
Adjusted
|
Gross
profit
|
633,694
|
|
|
$
|
—
|
|
|
$
|
(47,344)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,344
|
|
|
681,038
|
|
Gross
margin
|
32.4
|
%
|
|
—
|
%
|
|
2.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.4
|
%
|
|
34.9
|
%
|
Restructuring and
transformation initiative
expenses
|
33,686
|
|
|
—
|
|
|
(33,686)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,686)
|
|
|
—
|
|
(Loss) earnings
before (benefit) provision
for income taxes
|
(88,137)
|
|
|
3,989
|
|
|
81,030
|
|
|
9,129
|
|
|
265
|
|
|
—
|
|
|
94,413
|
|
|
6,276
|
|
Tax (benefit)
provision
|
(37,263)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,614
|
|
|
38,614
|
|
|
1,351
|
|
Effective tax
rate
|
42.3
|
%
|
|
|
|
|
|
|
|
|
|
(20.8)
|
%
|
|
(20.8)
|
%
|
|
21.5
|
%
|
Net (loss)
income
|
$
|
(50,874)
|
|
|
$
|
3,989
|
|
|
$
|
81,030
|
|
|
$
|
9,129
|
|
|
$
|
265
|
|
|
$
|
(38,614)
|
|
|
$
|
55,799
|
|
|
$
|
4,925
|
|
Net (loss) earnings
per share - Diluted
|
$
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.05
|
|
Weighted average
shares outstanding- Basic
|
106,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,772
|
|
Weighted average
shares outstanding- Diluted
|
106,772
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
109,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net (Loss) Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(50,874)
|
|
|
$
|
3,989
|
|
|
$
|
81,030
|
|
|
$
|
9,129
|
|
|
$
|
265
|
|
|
$
|
(38,614)
|
|
|
$
|
55,799
|
|
|
$
|
4,925
|
|
Depreciation and
amortization
|
68,278
|
|
|
—
|
|
|
(4,484)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,484)
|
|
|
63,794
|
|
Loss on extinguishment
of debt
|
265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(265)
|
|
|
—
|
|
|
(265)
|
|
|
—
|
|
Interest
expense
|
16,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,000
|
|
Tax (benefit)
provision
|
(37,263)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,614
|
|
|
38,614
|
|
|
1,351
|
|
EBITDA
|
$
|
(3,594)
|
|
|
$
|
3,989
|
|
|
$
|
76,546
|
|
|
$
|
9,129
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89,664
|
|
|
$
|
86,070
|
|
EBITDA as % of net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) If a company is in a net loss
position, then for earnings per share purposes, diluted weighted
average shares outstanding are equivalent to basic weighted average
shares outstanding.
|
Non-GAAP
Reconciliation (in thousands, except per share
data) (unaudited)
|
|
|
Three Months Ended
May 30, 2020
|
|
|
|
Excluding
|
|
|
|
Reported
|
|
Loss on sale
of Businesses
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairments
|
|
Loss on
extinguishment
of debt
|
|
Total income
tax impact
|
|
Total
impact
|
|
Adjusted
|
Gross
profit
|
348,489
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
348,489
|
|
Gross
margin
|
26.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
26.7
|
%
|
Restructuring and
transformation initiative
expenses
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
(Loss) earnings
before (benefit) provision
for income taxes
|
(478,100)
|
|
|
—
|
|
|
939
|
|
|
85,261
|
|
|
—
|
|
|
—
|
|
|
86,200
|
|
|
(391,900)
|
|
Tax (benefit)
provision
|
(175,809)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,738
|
|
|
26,738
|
|
|
(149,071)
|
|
Effective tax
rate
|
36.8
|
%
|
|
|
|
|
|
|
|
|
|
1.2
|
%
|
|
1.2
|
%
|
|
38.0
|
%
|
Net loss
(income)
|
(302,291)
|
|
|
$
|
—
|
|
|
$
|
939
|
|
|
$
|
85,261
|
|
|
$
|
—
|
|
|
$
|
(26,738)
|
|
|
$
|
59,462
|
|
|
$
|
(242,829)
|
|
Net loss per share -
Diluted
|
$
|
(2.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(1.96)
|
|
Weighted average
shares outstanding- Basic
|
123,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,697
|
|
Weighted average
shares outstanding- Diluted
|
123,697
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
123,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net (Loss) Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(302,291)
|
|
|
$
|
—
|
|
|
$
|
939
|
|
|
$
|
85,261
|
|
|
$
|
—
|
|
|
$
|
(26,738)
|
|
|
$
|
59,462
|
|
|
$
|
(242,829)
|
|
Depreciation and
amortization
|
83,601
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83,601
|
|
Loss on extinguishment
of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest
expense
|
17,171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,171
|
|
Tax (benefit)
provision
|
(175,809)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,738
|
|
|
26,738
|
|
|
(149,071)
|
|
EBITDA
|
$
|
(377,328)
|
|
|
$
|
—
|
|
|
$
|
939
|
|
|
$
|
85,261
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86,200
|
|
|
$
|
(291,128)
|
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) If a company is in a net loss
position, then for earnings per share purposes, diluted weighted
average shares outstanding are equivalent to basic weighted average
shares outstanding.
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES Consolidated Balance
Sheets (in thousands, except per share
data) (unaudited)
|
|
|
May 29,
2021
|
|
February 27,
2021
|
|
May 30,
2020
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,097,267
|
|
|
1,352,984
|
|
|
1,120,974
|
|
Short term investment securities
|
29,997
|
|
|
—
|
|
|
29,485
|
|
Merchandise inventories
|
1,563,602
|
|
|
1,671,909
|
|
|
2,240,449
|
|
Prepaid expenses and other current assets
|
515,993
|
|
|
595,152
|
|
|
354,796
|
|
Assets held-for-sale
|
—
|
|
|
—
|
|
|
70,530
|
|
Total
current assets
|
3,206,859
|
|
|
3,620,045
|
|
|
3,816,234
|
|
Long term investment
securities
|
19,458
|
|
|
19,545
|
|
|
19,928
|
|
Property and
equipment, net
|
929,335
|
|
|
918,418
|
|
|
1,362,110
|
|
Operating lease
assets
|
1,584,144
|
|
|
1,587,101
|
|
|
1,903,380
|
|
Other
assets
|
313,493
|
|
|
311,821
|
|
|
592,695
|
|
Total
assets
|
$
|
6,053,289
|
|
|
$
|
6,456,930
|
|
|
$
|
7,694,347
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
889,883
|
|
|
$
|
986,045
|
|
|
954,745
|
|
Accrued expenses and other current liabilities
|
506,674
|
|
|
636,329
|
|
|
609,930
|
|
Merchandise credit and gift card liabilities
|
309,576
|
|
|
312,486
|
|
|
327,512
|
|
Current operating lease liabilities
|
347,365
|
|
|
360,061
|
|
|
545,547
|
|
Liabilities related to assets held-for-sale
|
—
|
|
|
—
|
|
|
26,303
|
|
Total
current liabilities
|
2,053,498
|
|
|
2,294,921
|
|
|
2,464,037
|
|
Other
liabilities
|
78,353
|
|
|
82,279
|
|
|
203,998
|
|
Operating lease
liabilities
|
1,529,173
|
|
|
1,509,767
|
|
|
1,792,187
|
|
Income taxes
payable
|
102,905
|
|
|
102,664
|
|
|
48,119
|
|
Long term
debt
|
1,182,566
|
|
|
1,190,363
|
|
|
1,724,916
|
|
Total
liabilities
|
4,946,495
|
|
|
5,179,994
|
|
|
6,233,257
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Preferred stock -
$0.01 par value; authorized - 1,000 shares; no shares
issued or outstanding
|
—
|
|
|
—
|
|
|
—
|
|
Common stock - $0.01
par value; authorized - 900,000 shares; issued
343,570, 343,241 and 343,918, respectively; outstanding
104,513,
109,621 and 126,307 shares, respectively
|
3,435
|
|
|
3,432
|
|
|
3,439
|
|
Additional paid-in
capital
|
2,208,052
|
|
|
2,152,135
|
|
|
2,175,225
|
|
Retained
earnings
|
10,174,656
|
|
|
10,225,253
|
|
|
10,072,535
|
|
Treasury stock, at
cost; 239,057, 233,620 and 217,611 shares,
respectively
|
(11,234,529)
|
|
|
(11,048,284)
|
|
|
(10,718,292)
|
|
Accumulated other
comprehensive loss
|
(44,820)
|
|
|
(55,600)
|
|
|
(71,817)
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
1,106,794
|
|
|
1,276,936
|
|
|
1,461,090
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
6,053,289
|
|
|
$
|
6,456,930
|
|
|
$
|
7,694,347
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES Consolidated Statements
of Cash Flows (in thousands,
unaudited)
|
|
|
Three Months
Ended
|
|
May 29,
2021
|
|
May 30,
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
loss
|
(50,874)
|
|
|
(302,291)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and amortization
|
68,278
|
|
|
83,601
|
|
Impairments
|
9,129
|
|
|
85,261
|
|
Stock-based compensation
|
7,918
|
|
|
7,702
|
|
Deferred income taxes
|
(22,135)
|
|
|
(82,357)
|
|
Loss on sale of businesses
|
3,989
|
|
|
—
|
|
Loss on debt extinguishment
|
265
|
|
|
—
|
|
Other
|
(2,197)
|
|
|
(1,373)
|
|
Decrease (increase) in assets:
|
|
|
|
Merchandise inventories
|
113,366
|
|
|
(138,503)
|
|
Other
current assets
|
78,544
|
|
|
(105,193)
|
|
Other
assets
|
68
|
|
|
828
|
|
(Decrease) increase in liabilities:
|
|
|
|
Accounts
payable
|
(102,201)
|
|
|
20,874
|
|
Accrued
expenses and other current liabilities
|
(129,327)
|
|
|
(47,075)
|
|
Merchandise credit and gift card liabilities
|
(3,421)
|
|
|
(9,794)
|
|
Income
taxes payable
|
277
|
|
|
1,145
|
|
Operating
lease assets and liabilities, net
|
3,125
|
|
|
94,127
|
|
Other
liabilities
|
(3,545)
|
|
|
(1,576)
|
|
Net cash used
in operating activities
|
(28,741)
|
|
|
(394,624)
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Purchases of held-to-maturity investment securities
|
(29,997)
|
|
|
—
|
|
Redemption of held-to-maturity investment securities
|
—
|
|
|
357,000
|
|
Capital expenditures
|
(73,521)
|
|
|
(42,351)
|
|
Net cash (used
in) provided by investing activities
|
(103,518)
|
|
|
314,649
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Borrowing of long-term debt
|
—
|
|
|
236,400
|
|
Repayments of long-term debt
|
(8,173)
|
|
|
—
|
|
Repurchase of common stock, including fees
|
(138,695)
|
|
|
(2,537)
|
|
Payment of dividends
|
(560)
|
|
|
(21,192)
|
|
Net cash (used
in) provided by financing activities
|
(147,428)
|
|
|
212,671
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
6,117
|
|
|
(3,462)
|
|
|
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(273,570)
|
|
|
129,234
|
|
Change in cash
balances classified as held-for-sale
|
—
|
|
|
2,270
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(273,570)
|
|
|
131,504
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
Beginning of
period
|
$
|
1,407,224
|
|
|
$
|
1,023,650
|
|
End of
period
|
$
|
1,133,654
|
|
|
$
|
1,155,154
|
|
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SOURCE Bed Bath & Beyond Inc.