Net Sales of $1,463M; Comparable Sales of (23)% Consistent
with Early Quarter Trends as Previously
Shared
GAAP Gross Margin of 23.9%; Adjusted Gross
Margin of 23.8% including 840bps Impact from Transient Costs
Related to Inventory Markdown Reserves and Port-Related Supply
Chain Fees
Excluding the Two Aforementioned
Impacts, Q1 Adjusted Gross Margin of
32.2%
Announcing Aggressive Actions on Inventory,
Cost and Capex
UNION,
N.J., June 29, 2022 /PRNewswire/ -- Bed Bath
& Beyond Inc. (Nasdaq: BBBY) today reported financial results
for the first quarter of Fiscal 2022 ended May 28,
2022.
|
Reported
(GAAP)
|
|
Adjusted2
|
($ in millions,
except per share data)
|
Three months
ended
|
|
Three months
ended
|
|
May 28,
2022
|
May 29,
2021
|
Diff
|
|
May 28,
2022
|
May 29,
2021
|
Diff
|
Net
Sales
|
$1,463
|
$1,954
|
(25) %
|
|
$1,463
|
$1,954
|
(25) %
|
Comparable1 Sales
|
|
|
|
|
|
|
(23) %
|
Gross
Margin
|
23.9 %
|
32.4 %
|
-850bps
|
|
23.8 %
|
34.9 %
|
-1,110bps
|
|
|
|
|
|
|
|
|
SG&A
Margin
|
43.6 %
|
33.7 %
|
990bps
|
|
43.6 %
|
33.7 %
|
990bps
|
Net (Loss)
Income
|
($358)
|
($51)
|
($307)
|
|
($225)
|
$5
|
($230)
|
Adjusted2
EBITDA
|
|
|
|
|
($224)
|
$86
|
($310)
|
Adjusted2
EBITDA Margin
|
|
|
|
|
(15.3) %
|
4.4 %
|
-1,970bps
|
EPS -
Diluted
|
($4.49)
|
($0.48)
|
($4.01)
|
|
($2.83)
|
$0.05
|
($2.88)
|
As announced earlier today in a separate press release,
Sue Gove has been named Interim
Chief Executive Officer, replacing Mark
Tritton, who will leave his role as President and Chief
Executive Officer and as a member of the Board.
Ms. Gove commented, "I step into this role keenly aware of the
macro-economic environment. In the quarter there was an acute shift
in customer sentiment and, since then, pressures have materially
escalated. This includes steep inflation and fluctuations in
purchasing patterns, leading to significant dislocation in our
sales and inventory that we will be working to actively resolve.
The simple reality though is that our first quarter's results are
not up to our expectations, nor are they reflective of the
Company's true potential. The initiatives we are instituting today
are just the first steps in putting our business on firm footing to
drive our future success. I look forward to working with the Board,
the management team, and our Associates to immediately address our
supply chain challenges, market share recapture, inventory and cash
optimization, and cost structure alignment."
Q1 Highlights
- Net Sales of $1,463M declined
(25)%, reflecting a Comparable1 Sales decline of (23)%
and (2)% related to the impact from fleet optimization
activity
-
- Bed Bath & Beyond banner Comparable1 Sales
decline of (27)% reflecting rapid shift in consumer spending
patterns and declining demand in Home sector
- buybuy BABY Comparable1 Sales of down mid-single
digits commensurate with current market decline; Market share
remains stable
- GAAP Gross Margin of 23.9%; Adjusted2 Gross Margin
of 23.8%
-
- Adjusted2 Gross Margin reflects 840bps of negative
transient costs vs. Q1 2021
- Transient costs reflect the impact of an inventory markdown
reserve of (620bps) and supply chain-related port fees of
(220bps)
- Excluding the aforementioned 840bps of transient costs, Q1
Adjusted2 Gross Margin of 32.2%
- Cash Flow from Operations of approximately $(0.4) billion, Cash Flow from Investing
Activities of $(0.1) billion and Cash
Flow from Financing Activities of $0.2
billion
Fiscal 2022 First Quarter Results (ending May 28,
2022)
Net sales of $1,463M declined
(25)%, reflecting a Comparable1 Sales decline of
(23)% and (2)% related to the impact from fleet optimization
activity.
- By channel, Comparable1 Sales declined (24)% in
Stores and (21)% in Digital versus the fiscal 2021 first
quarter.
- Bed Bath & Beyond banner Comparable1 Sales
decreased (27)% compared to the prior year period. Results exclude
the impact from the Company's previously announced store fleet
optimization program, which began in the second half of fiscal
2020.
- The buybuy BABY banner Comparable1 Sales decreased
in the mid-single digits compared to the Fiscal 2021 first quarter
consistent with market trends.
GAAP Gross Margin was 23.9% for the quarter. Excluding special
items, Adjusted2 Gross Margin was 23.8%, inclusive of
transient costs associated with a 620 basis point negative impact
from markdown inventory reserves and 220 basis point negative
impact from supply chain-related port fees compared to last
year. Excluding the aforementioned 840 basis points of
transient costs, Q1 Adjusted2 Gross Margin was
32.2%. The Company is proactively working with suppliers to
adjust future inventory receipts and accelerating markdowns in
order to right-size inventory levels commensurate with the
declining sales trends.
SG&A expense on both a GAAP and Adjusted2 basis
remain at lower levels compared to the prior year period, primarily
due to cost reductions and lower rent and occupancy expenses on a
lower store base following the Company's fleet optimization
program. SG&A Margin for the quarter increased on a GAAP
and Adjusted2 basis versus last year due to lower Net
Sales. Bed Bath & Beyond is in the midst of further refining
its supply chain infrastructure and adjusting cost structure to
reflect lower sales levels. At the same time, the Company is
pausing its new store and remodel programs for the remainder of
fiscal 2022 which is expected to reduce its Fiscal 2022 planned
capital expenditures by a minimum of approximately $100 million to $300
million from a prior expectation of approximately
$400 million.
Adjusted2 EBITDA for the period was ($224) million reflecting lower Net Sales and
lower Adjusted2 Gross Margin.
Net Loss per diluted share of ($4.49) for the quarter reflected approximately
$1.66 of special items for the
quarter. Excluding special items, Adjusted2 Net Loss per
diluted share was ($2.83).
Special items during the first quarter included restructuring and
costs associated with the Company's transformation
initiatives. Adjusted2 Net Loss per diluted share
also reflects an income tax benefit on the Company's
Adjusted2 Pre-Tax Loss.
During the quarter, the Company reported operating cash flow of
approximately $(0.4) billion. Investing cash flow of
$(0.1) billion was primarily driven by planned capital
expenditures in connection with store remodels, supply chain and
information technology systems.
Cash, cash equivalents, restricted cash and investments totaled
approximately $0.2 billion in the
Fiscal 2022 first quarter. Total Liquidity3 was
approximately $0.9 billion as of the
Fiscal 2022 first quarter, including the Company's asset based
revolving credit facility less borrowings of $0.2 billion.
Fiscal 2022 Outlook Commentary
At this time, the Company is providing the following outlook
parameters for Fiscal 2022:
– Sequential Comparable1 Sales
recovery to occur in the second half of Fiscal 2022 versus the
first half of Fiscal 2022 driven by inventory optimization plans,
including incremental clearance activity
– Adjusted2 SG&A
expense for Fiscal 2022 below last year, reflecting aggressive
actions to align cost structure to sales
– Capital Expenditures of approximately
$300 million (from $400 million previously) for Fiscal 2022,
reflecting a minimum reduction of $100
million
The Company will provide further commentary and context for its
Fiscal 2022 outlook 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 2022 First Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s Fiscal 2022 first quarter
conference call with analysts and investors will be held today at
8:15am EDT and may be accessed by
dialing 1-404-400-0571, or if international, 1-866-374-5140, using
conference ID number 80961020#. 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.
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)
|
Comparable Sales
reflects the year-over-year change in sales from the Company's
retail channels, including stores and digital, that have been
operating for twelve full months following the opening period
(typically six to eight weeks). Comparable Sales excludes the
impact of the Company's store network optimization
program.
|
|
|
(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 EPS
- Diluted are non-GAAP financial measures. For more
information about non-GAAP financial measures, see "Non-GAAP
Information" below.
|
|
|
(3)
|
Total Liquidity
includes cash & investments and availability under the
Company's asset-based revolving credit facility.
|
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 28, 2022, the Company had a total
of 955 stores, including 769 Bed Bath & Beyond stores in all 50
states, the District of Columbia,
Puerto Rico and Canada, 135 buybuy BABY stores and 51 stores
under the names Harmon, Harmon Face Values or Face Values. During
the Fiscal 2022 first quarter, the Company opened 5 buybuy BABY
stores. Additionally during the fiscal 2022 first quarter, the
Company closed 3 stores including 2 Bed Bath & Beyond stores
and 1 Harmon store. The joint venture to which the Company is a
partner operates 12 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, our progress and anticipated
progress towards our long-term objectives, as well as more
generally the status of our future liquidity and financial
condition and our outlook for our 2022 Fiscal second quarter and
2022 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. Our 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 recent supply chain disruptions, labor shortages,
wage pressures, rising inflation and the ongoing military conflict
between Russia and Ukraine; a challenging overall macroeconomic
environment and a highly competitive retailing environment; risks
associated with the ongoing COVID-19 pandemic and the governmental
responses to it, including its impacts across our businesses on
demand and operations, as well as on the operations of our
suppliers and other business partners, and the effectiveness of our
and governmental actions taken in response to these risks; changing
consumer preferences, spending habits and demographics;
demographics and other macroeconomic factors that may impact the
level of spending for the types of merchandise sold by us;
challenges in executing our omni-channel and transformation
strategy, including our ability to establish and profitably
maintain the appropriate mix of digital and physical presence in
the markets we serve; our ability to successfully execute our store
fleet optimization strategies, including our ability to achieve
anticipated cost savings and to not exceed anticipated costs; our
ability to execute on any additional strategic transactions and
realize the benefits of any acquisitions, partnerships, investments
or divestitures; disruptions to our 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; damage to our reputation in
any aspect of our operations; the cost of labor, merchandise,
logistical costs and other costs and expenses; potential supply
chain disruption due to trade restrictions or otherwise, 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; inflation and the related increases
in costs of materials, labor and other costs; inefficient
management of relationships and dependencies on third-party service
providers; our ability to attract and retain qualified employees in
all areas of the organization; unusual weather patterns and natural
disasters, including the impact of climate change; uncertainty and
disruptions in financial markets; volatility in the price of our
common stock and its effect, and the effect of other factors,
including the COVID-19 pandemic, on our capital allocation
strategy; changes to statutory, regulatory and other legal
requirements or deemed noncompliance with such requirements;
changes to accounting rules, regulations and tax laws, or new
interpretations of existing accounting standards or tax laws; new,
or developments in existing, litigation, claims or assessments; and
a failure of our business partners to adhere to appropriate laws,
regulations or standards. Except as required by law, we do not
undertake any obligation to update our forward-looking
statements.
Contacts
INVESTOR CONTACT: Susie Kim, IR@bedbath.com
MEDIA CONTACT: Eric Mangan,
media@bedbath.com
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Statements of Operations
(in thousands,
except per share data)
(unaudited)
|
|
|
Three Months
Ended
|
|
May 28,
2022
|
|
May 29,
2021
|
|
|
|
|
Net sales
|
$
1,463,418
|
|
$ 1,953,812
|
|
|
|
|
Cost of
sales
|
1,114,106
|
|
1,320,118
|
|
|
|
|
Gross profit
|
349,312
|
|
633,694
|
|
|
|
|
Selling, general and
administrative expenses
|
637,508
|
|
658,762
|
|
|
|
|
Impairments
|
26,699
|
|
9,129
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
24,263
|
|
33,686
|
|
|
|
|
Loss on sale of
businesses
|
—
|
|
3,989
|
|
|
|
|
Operating loss
|
(339,158)
|
|
(71,872)
|
|
|
|
|
Interest expense,
net
|
16,448
|
|
16,000
|
|
|
|
|
Loss on extinguishment
of debt
|
—
|
|
265
|
|
|
|
|
Loss
before provision (benefit) for income taxes
|
(355,606)
|
|
(88,137)
|
|
|
|
|
Provision (benefit) for
income taxes
|
2,060
|
|
(37,263)
|
|
|
|
|
Net
loss
|
$
(357,666)
|
|
$
(50,874)
|
|
|
|
|
Net loss per share -
Basic
|
$
(4.49)
|
|
$
(0.48)
|
Net loss per share -
Diluted
|
$
(4.49)
|
|
$
(0.48)
|
|
|
|
|
Weighted average shares
outstanding - Basic
|
79,611
|
|
106,772
|
Weighted average shares
outstanding - Diluted
|
79,611
|
|
106,772
|
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 comparisons of
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. As such, the Company does not recommend the sole
use of these 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 2022
first quarter. In order for investors to be able to more
readily compare the Company's performance across periods, the
Company has included comparable reconciliations for the 2021 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 28, 2022
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale
of Businesses
|
|
Loss on
extinguishment
of debt
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairments
charges
|
|
Total income
tax impact
|
|
Total
Impact
|
|
Adjusted
|
Gross Profit
|
|
$ 349,312
|
|
$
—
|
|
$
—
|
|
$
(1,167)
|
|
$
—
|
|
$
—
|
|
$
(1,167)
|
|
$
348,145
|
Gross
margin
|
|
23.9 %
|
|
— %
|
|
— %
|
|
(0.1) %
|
|
— %
|
|
— %
|
|
(0.1) %
|
|
23.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
|
24,263
|
|
—
|
|
—
|
|
(24,263)
|
|
—
|
|
—
|
|
(24,263)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before
provision (benefit) for income taxes
|
|
(355,606)
|
|
—
|
|
—
|
|
23,096
|
|
26,699
|
|
—
|
|
49,795
|
|
(305,811)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
|
2,060
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(82,636)
|
|
(82,636)
|
|
(80,576)
|
Effective tax
rate
|
|
(0.6) %
|
|
|
|
|
|
|
|
|
|
26.9 %
|
|
26.9 %
|
|
26.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(357,666)
|
|
$
—
|
|
$
—
|
|
$
23,096
|
|
$
26,699
|
|
$
82,636
|
|
$
132,431
|
|
$
(225,235)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted
|
|
$
(4.49)
|
|
|
|
|
|
|
|
|
|
|
|
$
1.66
|
|
$
(2.83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding- Basic
|
|
79,611
|
|
|
|
|
|
|
|
|
|
|
|
79,611
|
|
79,611
|
Weighted average shares
outstanding- Diluted
|
|
79,611
|
(1)
|
|
|
|
|
|
|
|
|
|
|
79,611
|
|
79,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income (loss) to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$ (357,666)
|
|
$
—
|
|
$
—
|
|
$
23,096
|
|
$
26,699
|
|
$
82,636
|
|
$
132,431
|
|
$
(225,235)
|
Depreciation and
amortization
|
|
71,103
|
|
—
|
|
—
|
|
(5,275)
|
|
—
|
|
—
|
|
(5,275)
|
|
65,828
|
Interest
expense
|
|
16,448
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,448
|
Provision (benefit) for
income taxes
|
|
2,060
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(82,636)
|
|
(82,636)
|
|
(80,576)
|
EBITDA
|
|
$ (268,055)
|
|
$
—
|
|
$
—
|
|
$
17,821
|
|
$
26,699
|
|
$
—
|
|
$
44,520
|
|
$ (223,535)
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
Three Months Ended
May 29, 2021
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale
of Businesses
|
|
Loss on
extinguishment
of debt
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairment
charges
|
|
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
|
|
265
|
|
81,030
|
|
9,129
|
|
—
|
|
94,413
|
|
6,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for
income taxes
|
|
(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
|
|
$
265
|
|
$
81,030
|
|
$
9,129
|
|
$
(38,614)
|
|
$
55,799
|
|
$
4,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings per
share - Diluted
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
$
0.53
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding- Basic
|
|
106,772
|
|
|
|
|
|
|
|
|
|
|
|
106,772
|
|
106,772
|
Weighted average shares
outstanding- Diluted
|
|
106,772
|
(1)
|
|
|
|
|
|
|
|
|
|
|
106,772
|
|
109,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net (Loss) Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(50,874)
|
|
$
3,989
|
|
$
265
|
|
$
81,030
|
|
$
9,129
|
|
$
(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
|
(Benefit) provision for
income taxes
|
|
(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.
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
(in thousands,
except per share data)
|
|
|
May 28,
2022
|
|
February 26,
2022
|
|
May 29,
2021
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
$
107,543
|
|
$
439,496
|
|
$
1,097,267
|
Short term investment securities
|
—
|
|
—
|
|
29,997
|
Merchandise inventories
|
1,759,586
|
|
1,725,410
|
|
1,563,602
|
Prepaid expenses and other current assets
|
190,179
|
|
198,248
|
|
515,993
|
Total
current assets
|
2,057,308
|
|
2,363,154
|
|
3,206,859
|
Long term investment
securities
|
18,983
|
|
19,212
|
|
19,458
|
Property and equipment,
net
|
1,119,247
|
|
1,027,387
|
|
929,335
|
Operating lease
assets
|
1,597,461
|
|
1,562,857
|
|
1,584,144
|
Other assets
|
156,103
|
|
157,962
|
|
313,493
|
Total
Assets
|
$
4,949,102
|
|
$
5,130,572
|
|
$
6,053,289
|
Liabilities and
Shareholders' (Deficit) Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
816,578
|
|
$
872,445
|
|
$
889,883
|
Accrued expenses and other current liabilities
|
549,754
|
|
529,371
|
|
506,674
|
Merchandise credit and gift card liabilities
|
325,232
|
|
326,465
|
|
309,576
|
Current operating lease liabilities
|
334,891
|
|
346,506
|
|
347,365
|
Total
current liabilities
|
2,026,455
|
|
2,074,787
|
|
2,053,498
|
Other
liabilities
|
111,085
|
|
102,438
|
|
78,353
|
Operating lease
liabilities
|
1,561,870
|
|
1,508,002
|
|
1,529,173
|
Income taxes
payable
|
90,120
|
|
91,424
|
|
102,905
|
Long term
debt
|
1,379,870
|
|
1,179,776
|
|
1,182,566
|
Total
liabilities
|
5,169,400
|
|
4,956,427
|
|
4,946,495
|
Shareholders' (deficit)
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 344,621, 344,146 and
343,570, respectively; outstanding 79,958, 81,979 and 104,513
shares, respectively
|
3,446
|
|
3,441
|
|
3,435
|
Additional paid-in
capital
|
2,243,378
|
|
2,235,894
|
|
2,208,052
|
Retained
earnings
|
9,308,530
|
|
9,666,091
|
|
10,174,656
|
Treasury stock, at
cost; 264,663, 262,167 and 239,057 shares, respectively
|
(11,728,295)
|
|
(11,685,267)
|
|
(11,234,529)
|
Accumulated other
comprehensive loss
|
(47,357)
|
|
(46,014)
|
|
(44,820)
|
Total shareholders'
(deficit) equity
|
(220,298)
|
|
174,145
|
|
1,106,794
|
Total liabilities and
shareholders' (deficit) equity
|
$
4,949,102
|
|
$
5,130,572
|
|
$
6,053,289
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Three Months
Ended
|
|
May 28,
2022
|
|
May 29,
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
loss
|
$
(357,666)
|
|
$
(50,874)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and amortization
|
71,103
|
|
68,278
|
Impairments
|
26,699
|
|
9,129
|
Stock-based compensation
|
7,123
|
|
7,918
|
Deferred income taxes
|
(2,299)
|
|
(22,135)
|
Loss
on sale of businesses
|
—
|
|
3,989
|
Loss
on debt extinguishment
|
—
|
|
265
|
Other
|
590
|
|
(2,197)
|
(Increase) decrease in assets:
|
|
|
|
Merchandise inventories
|
(34,757)
|
|
113,366
|
Other
current assets
|
7,971
|
|
78,544
|
Other
assets
|
(106)
|
|
68
|
(Decrease) increase in liabilities:
|
|
|
|
Accounts
payable
|
(47,597)
|
|
(102,201)
|
Accrued
expenses and other current liabilities
|
(38,038)
|
|
(129,327)
|
Merchandise credit and gift card liabilities
|
(1,176)
|
|
(3,421)
|
Income
taxes payable
|
(1,304)
|
|
277
|
Operating
lease assets and liabilities, net
|
(13,096)
|
|
3,125
|
Other
liabilities
|
(998)
|
|
(3,545)
|
Net cash used in
operating activities
|
(383,551)
|
|
(28,741)
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Purchases of held-to-maturity investment securities
|
—
|
|
(29,997)
|
Capital expenditures
|
(104,852)
|
|
(73,521)
|
Net cash used
in investing activities
|
(104,852)
|
|
(103,518)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Borrowing of long-term debt
|
200,000
|
|
—
|
Repayments of long-term debt
|
—
|
|
(8,173)
|
Repurchase of common stock, including fees
|
(43,028)
|
|
(138,695)
|
Payment of dividends
|
(271)
|
|
(560)
|
Net cash
provided by (used in) financing activities
|
156,701
|
|
(147,428)
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
(251)
|
|
6,117
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(331,953)
|
|
(273,570)
|
|
|
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
Beginning of
period
|
470,884
|
|
1,407,224
|
End of
period
|
$
138,931
|
|
$
1,133,654
|
View original
content:https://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-fiscal-2022-first-quarter-results-ending-may-28th-2022-301577609.html
SOURCE Bed Bath & Beyond Inc.