UNION, N.J., April 15, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today reported financial results for the
fourth quarter of fiscal 2019 ended February 29, 2020.
"Our fourth quarter performance was consistent with the market
update we provided on February 11,
2020," stated Mark Tritton,
Bed Bath & Beyond's President and CEO. "These results
strengthen our resolve to continue to make the necessary, bold and
broad-based changes needed to modernize our business, and give us
confidence about our ability to improve on this quarterly
performance."
Tritton continued, "We are executing a clear plan to manage our
business efficiently and effectively through the coronavirus
pandemic, prioritizing the health and safety of our customers and
teams. Our financial position and contingency plans will
allow us to retain the financial flexibility to make targeted
investments that will deepen our connection with our customers and
rebuild our authority in the Home space. In this time when
Home is even more central to our lives and being safe at home with
family is essential, Bed Bath & Beyond takes on an even more
important role supporting customers and their families by making it
easy to feel at home.
"I want to thank all our associates for their service to the
business and to our loyal customers. I am confident we will
emerge from this challenge even stronger, given the strength of our
brand, our people and our balance sheet."
Fiscal 2019 Fourth Quarter Results
For the fiscal 2019 fourth quarter, the Company reported a net
loss of $(0.53) per diluted share
($(65.4) million), which included
several special items such as severance costs, non-cash impairment
charges related to certain store level assets and tradenames, and a
loss on a sale-leaseback transaction. This compares to a net
loss of $(1.92) per diluted share
($(253.8) million) for the fiscal
2018 fourth quarter, which included special items such as a
non-cash goodwill and tradename impairment charge. Excluding
these special items from both quarters, the Company reported
adjusted net earnings of $0.38 per
diluted share ($46.9 million) for the
fiscal 2019 fourth quarter, and adjusted net earnings of
$1.20 per diluted share ($158.8 million) for the fiscal 2018 fourth
quarter. Net sales for the fiscal 2019 fourth quarter were
$3.1 billion, a decrease of 6.1%
compared to the prior year period. Comparable sales in the
fiscal 2019 fourth quarter declined 5.6%.
The Company's fiscal 2019 fourth quarter was favorably impacted
by the Cyber Monday holiday week, which occurred during the fourth
quarter this year, but occurred in the Company's third quarter in
the prior year period. Adjusting for the calendar shift to
exclude Cyber Monday week in both periods, comparable sales for the
fiscal 2019 fourth quarter declined 11.0%.
Fiscal 2019 Full Year Results
For the fiscal 2019 full year, the Company reported a net loss
of $(4.94) per diluted share
($(613.8) million), which included
several special items such as non-cash impairment charges related
to goodwill, tradenames, and certain store level assets, severance
costs, shareholder activity costs, an incremental charge for
markdowns associated with the Company's inventory reduction
initiative, and a loss on a sale-leaseback transaction, compared
with a net loss of $(1.02) per
diluted share ($(137.2) million) for
the fiscal 2018 full year, which included several special items
such as non-cash goodwill and tradename impairment charges,
severance costs, and a gain on the sale of a building.
Excluding these special items from both years, the Company reported
adjusted net earnings of $0.46 per
diluted share ($57.3 million) for the
fiscal 2019 full year, and adjusted net earnings of $1.97 per diluted share ($264.8 million) for the fiscal 2018 full
year. Net sales for the fiscal 2019 full year were
$11.2 billion, a decrease of 7.2%
compared to the prior year period. Comparable sales for the
fiscal 2019 full year declined 6.8% compared to the prior year
period.
Financial Position Update
During the fiscal 2019 fourth quarter, the Company did not
undertake any open market share repurchase activity.
The Company ended fiscal 2019 with approximately $1.4 billion in cash and investments, an increase
of approximately 39%, compared with approximately $1.0 billion in cash and investments at the end
of fiscal 2018.
Retail inventories of $2.0 billion
(at cost) reflected a reduction of approximately 20% or
$516 million (at cost), during the
fiscal 2019 fourth quarter, compared to the end of the prior year
period. Excluding the incremental charge for markdowns
associated with the Company's inventory reduction initiative,
adjusted retail inventories of $2.1
billion (at cost) reflected a reduction of approximately 16%
or over $400 million (at cost), at
the end of the fiscal 2019 fourth quarter, compared to the end of
the prior year period.
COVID-19 Response Update
On April 2, 2020, Bed Bath &
Beyond extended the temporary closure of all its retail banner
stores across the US and Canada,
other than buybuy BABY and Harmon Face Values stores, until
May 2, 2020. In conjunction
with this decision, the Company announced it would implement
additional cost reductions, including a furlough of the majority of
store associates and a portion of corporate associates until at
least May 2, 2020, a temporary
reduction in salaries of the Company's executive team by 30%, and a
temporary reduction in the quarterly cash compensation of the
independent directors of the Board by 30%.
The Company also modified its previously announced capital
allocation plans as a result of the significant uncertainty related
to the COVID-19 pandemic. The Company has taken or plans to
take the following further actions while managing this period of
business disruption:
- Elected to draw down the additional funds ($236 million) remaining from its revolving credit
agreement, in an abundance of caution and as a proactive
measure;
- Suspended prior plans to spend up to $600 million in fiscal 2020 for share
repurchases, future dividends, and debt reduction;
- Postponed approximately $150
million in planned capital expenditures out of fiscal 2020,
including some store remodels;
- Reduced discretionary spend such as business travel,
advertising and expense associated with the maintenance of stores
that are temporarily closed;
- Renegotiating extensions of payment terms for goods and
services, and rent;
- Managing to lower inventory levels;
- Implementing applicable benefits of the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act), such as deferring
employer payroll taxes and utilizing the ability to carry back and
deduct losses to offset prior income in previously filed tax
returns; and
- Prioritizing approximately $250
million in essential capital expenditures to drive strategic
growth plans, including investments in digital and Buy Online Pick
Up In Store (BOPIS).
Outlook
The Company's first quarter and full-year 2020 results will be
unfavorably impacted by the COVID-19 pandemic. The duration and
extent of the pandemic is highly uncertain, and Bed Bath &
Beyond's results could be impacted in ways that are difficult to
predict today. Due to the level of market uncertainty, the
Company will not provide further financial guidance for fiscal 2020
at this time.
Fiscal 2019 Fourth Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s fiscal 2019 fourth quarter
conference call with analysts and investors will be held today at
5:00pm ET and may be accessed by
dialing 1-888-424-8151, or if international, 1-847-585-4422, using
passcode ID number 6105417#. A replay of the call will be
available today at 8:00pm ET through
8:00pm ET on Friday, April 17th, and
can be accessed by dialing 1-888-843-7419, using passcode ID number
6105417#. The call and replay can also be accessed via audio
webcast on the investor relations section of the Company's website
at www.bedbathandbeyond.com.
The Company has also made available an Investor Presentation on
the investor relations section of the Company's website at
www.bedbathandbeyond.com.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for its customers to
feel at home. The Company sells a wide assortment of
domestics merchandise and home furnishings. The Company also
provides a variety of textile products, amenities and other goods
to institutional customers in the hospitality, cruise line,
healthcare and other industries. 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, worldmarket.com, buybuybaby.com,
buybuybaby.ca, christmastreeshops.com, andthat.com,
harmondiscount.com, facevalues.com, personalizationmall.com,
decorist.com, harborlinen.com, and t-ygroup.com. As of
February 29, 2020, the Company had a total of 1,500 stores,
including 976 Bed Bath & Beyond stores in all 50 states, the
District of Columbia, Puerto Rico and Canada, 261 stores under the names of World
Market, Cost Plus World Market or Cost Plus, 126 buybuy BABY
stores, 81 stores under the names Christmas Tree Shops, Christmas
Tree Shops andThat! or andThat!, 53 stores under the names Harmon,
Harmon Face Values or Face Values, and three stores under the name
One Kings Lane. During the
fiscal fourth quarter, the Company opened two buybuy BABY
stores. Also, during the fiscal fourth quarter, the Company
closed 26 stores including, 17 Cost Plus World Market stores, five
Bed Bath & Beyond stores, two buybuy BABY stores, and two
Harmon Face Values stores. The joint venture to which the
Company is a partner operates ten stores in Mexico under the name Bed Bath &
Beyond.
Non-GAAP Information
This press release contains certain non-GAAP information, such
as adjusted net earnings per diluted share, which is intended to
provide visibility into the Company's core operations by excluding
the effects of the goodwill and other impairments, severance costs,
shareholder activity costs, an incremental charge for markdowns
associated with the Company's inventory reduction initiative, a
loss on a sale-leaseback transaction, and a gain on the sale of a
building. 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.
Forward-Looking Statements
This press release contains forward-looking statements,
including, but not limited to, the Company's plans in response to
the novel coronavirus (COVID-19). 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, 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
COVID-19 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; 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, such as
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 its
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. 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
|
|
Twelve months
ended
|
|
February 29,
2020
|
|
March 2,
2019
|
|
February 29,
2020
|
|
March 2,
2019
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
3,106,822
|
|
|
$
|
3,307,881
|
|
|
$
|
11,158,580
|
|
|
$
|
12,028,797
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
2,093,166
|
|
|
2,161,020
|
|
|
7,616,920
|
|
|
7,924,817
|
|
|
|
|
|
|
|
|
|
Gross profit
|
1,013,656
|
|
|
1,146,861
|
|
|
3,541,660
|
|
|
4,103,980
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
1,027,041
|
|
|
933,691
|
|
|
3,732,498
|
|
|
3,681,210
|
|
|
|
|
|
|
|
|
|
Goodwill and other
impairments
|
67,821
|
|
|
509,905
|
|
|
509,226
|
|
|
509,905
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(81,206)
|
|
|
(296,735)
|
|
|
(700,064)
|
|
|
(87,135)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
15,370
|
|
|
15,440
|
|
|
64,789
|
|
|
69,474
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes
|
(96,576)
|
|
|
(312,175)
|
|
|
(764,853)
|
|
|
(156,609)
|
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
(31,162)
|
|
|
(58,382)
|
|
|
(151,037)
|
|
|
(19,385)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(65,414)
|
|
|
$
|
(253,793)
|
|
|
$
|
(613,816)
|
|
|
$
|
(137,224)
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Basic
|
$
|
(0.53)
|
|
|
$
|
(1.92)
|
|
|
$
|
(4.94)
|
|
|
$
|
(1.02)
|
|
Net loss per share -
Diluted
|
$
|
(0.53)
|
|
|
$
|
(1.92)
|
|
|
$
|
(4.94)
|
|
|
$
|
(1.02)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
123,347
|
|
|
131,958
|
|
|
124,352
|
|
|
134,292
|
|
Weighted average
shares outstanding - Diluted
|
123,347
|
|
|
131,958
|
|
|
124,352
|
|
|
134,292
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
February 29,
2020
|
|
March 2,
2019
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$
|
1,000,340
|
|
|
$
|
508,971
|
|
Short term investment securities
|
385,642
|
|
|
485,799
|
|
Merchandise inventories
|
2,093,869
|
|
|
2,618,922
|
|
Prepaid expenses and other current assets
|
248,342
|
|
|
296,280
|
|
Assets held-for-sale
|
98,092
|
|
|
—
|
|
|
|
|
|
Total
current assets
|
3,826,285
|
|
|
3,909,972
|
|
|
|
|
|
Long term investment
securities
|
20,380
|
|
|
20,010
|
|
Property and
equipment, net
|
1,430,604
|
|
|
1,853,091
|
|
Operating lease
assets
|
2,006,966
|
|
|
—
|
|
Goodwill
|
—
|
|
|
391,052
|
|
Other
assets
|
506,280
|
|
|
396,416
|
|
|
|
|
|
|
$
|
7,790,515
|
|
|
$
|
6,570,541
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
|
944,194
|
|
|
$
|
1,094,078
|
|
Accrued expenses and other current liabilities
|
675,776
|
|
|
623,734
|
|
Merchandise credit and gift card liabilities
|
340,407
|
|
|
339,322
|
|
Current operating lease liabilities
|
463,005
|
|
|
—
|
|
Liabilities related to assets held-for-sale
|
43,144
|
|
|
—
|
|
Current income taxes payable
|
—
|
|
|
20,498
|
|
|
|
|
|
Total
current liabilities
|
2,466,526
|
|
|
2,077,632
|
|
|
|
|
|
Other
liabilities
|
204,926
|
|
|
395,409
|
|
Income taxes
payable
|
46,945
|
|
|
49,235
|
|
Operating lease
liabilities
|
1,818,783
|
|
|
—
|
|
Long term
debt
|
1,488,400
|
|
|
1,487,934
|
|
|
|
|
|
Total
liabilities
|
6,025,580
|
|
|
4,010,210
|
|
|
|
|
|
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 343,683 and 342,582
shares, respectively; outstanding 126,528 and 132,233 shares,
respectively
|
3,436
|
|
|
3,426
|
|
Additional paid-in
capital
|
2,167,337
|
|
|
2,118,673
|
|
Retained
earnings
|
10,374,826
|
|
|
11,112,887
|
|
Treasury stock, at
cost; 217,155 and 210,349 shares, respectively
|
(10,715,755)
|
|
|
(10,616,045)
|
|
Accumulated other
comprehensive loss
|
(64,909)
|
|
|
(58,610)
|
|
|
|
|
|
Total shareholders'
equity
|
1,764,935
|
|
|
2,560,331
|
|
|
|
|
|
|
$
|
7,790,515
|
|
|
$
|
6,570,541
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(in thousands,
unaudited)
|
|
|
Twelve months
ended
|
|
February 29,
2020
|
|
March 2,
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(613,816)
|
|
|
$
|
(137,224)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and amortization
|
342,511
|
|
|
338,825
|
|
Gain on
sale of a building
|
—
|
|
|
(29,690)
|
|
Loss on
sale-leaseback transaction
|
27,357
|
|
|
—
|
|
Goodwill
and other impairments
|
509,226
|
|
|
509,905
|
|
Gain on
debt extinguishment
|
—
|
|
|
(412)
|
|
Stock-based compensation
|
45,676
|
|
|
58,514
|
|
Deferred
income taxes
|
(145,543)
|
|
|
(104,089)
|
|
Other
|
(3,446)
|
|
|
(814)
|
|
Decrease
(increase) in assets:
|
|
|
|
Merchandise inventories
|
506,334
|
|
|
106,928
|
|
Trading investment securities
|
21
|
|
|
86,277
|
|
Other current assets
|
(4,781)
|
|
|
269,186
|
|
Other assets
|
218
|
|
|
218
|
|
(Decrease)
increase in liabilities:
|
|
|
|
Accounts payable
|
(124,206)
|
|
|
(90,657)
|
|
Accrued expenses and other current liabilities
|
61,864
|
|
|
(77,147)
|
|
Merchandise credit and gift card liabilities
|
1,154
|
|
|
16,016
|
|
Income taxes payable
|
(22,783)
|
|
|
8,360
|
|
Operating lease assets and liabilities, net
|
(2,899)
|
|
|
—
|
|
Other liabilities
|
14,054
|
|
|
(35,918)
|
|
|
|
|
|
Net cash provided by operating activities
|
590,941
|
|
|
918,278
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchase of held-to-maturity investment securities
|
(443,500)
|
|
|
(734,424)
|
|
Redemption of held-to-maturity investment securities
|
545,000
|
|
|
538,925
|
|
Capital expenditures
|
(277,401)
|
|
|
(325,366)
|
|
Proceeds from sale-leaseback transaction
|
267,277
|
|
|
—
|
|
Proceeds from sale of land and building
|
—
|
|
|
11,183
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
91,376
|
|
|
(509,682)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Payment of dividends
|
(85,482)
|
|
|
(86,287)
|
|
Repurchase of common stock, including fees
|
(99,710)
|
|
|
(148,073)
|
|
Payment of senior notes
|
—
|
|
|
(4,224)
|
|
Proceeds from exercise of stock options
|
2,346
|
|
|
—
|
|
|
|
|
|
Net cash used in financing activities
|
(182,846)
|
|
|
(238,584)
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
|
(977)
|
|
|
(7,181)
|
|
|
|
|
|
Net increase in cash, cash equivalents and restricted cash,
including cash balances classified as assets
held-for-sale
|
498,494
|
|
|
162,831
|
|
Less: Cash balances classified as assets-held-for-sale
|
(4,815)
|
|
|
—
|
|
Net increase in cash, cash equivalents and restricted
cash
|
493,679
|
|
|
162,831
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
Beginning of period
|
529,971
|
|
|
367,140
|
|
End of period
|
$
|
1,023,650
|
|
|
$
|
529,971
|
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 fourth 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 2019
fourth 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 2018 period
in the reconciliation tables below.
Non-GAAP
Reconciliation
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
February 29,
2020
|
|
March 2,
2019
|
|
February 29,
2020
|
|
March 2,
2019
|
Reconciliation of
Adjusted Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported gross
profit
|
|
$
|
1,013,656
|
|
|
$
|
1,146,861
|
|
|
$
|
3,541,660
|
|
|
$
|
4,103,980
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Incremental charge
for markdowns
|
|
—
|
|
|
—
|
|
|
169,820
|
|
|
—
|
|
Total
adjustments
|
|
—
|
|
|
—
|
|
|
169,820
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$
|
1,013,656
|
|
|
$
|
1,146,861
|
|
|
$
|
3,711,480
|
|
|
$
|
4,103,980
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported gross
margin
|
|
32.6
|
%
|
|
34.7
|
%
|
|
31.7
|
%
|
|
34.1
|
%
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Incremental charge
for markdowns
|
|
—
|
%
|
|
—
|
%
|
|
1.6
|
%
|
|
—
|
%
|
Total
adjustments
|
|
—
|
%
|
|
—
|
%
|
|
1.6
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
32.6
|
%
|
|
34.7
|
%
|
|
33.3
|
%
|
|
34.1
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Selling, General and Administrative
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported selling,
general and administrative expenses
|
|
$
|
1,027,041
|
|
|
$
|
933,691
|
|
|
$
|
3,732,498
|
|
|
$
|
3,681,210
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Severance
costs
|
|
(41,308)
|
|
|
—
|
|
|
(102,507)
|
|
|
(13,892)
|
|
Shareholder activity
costs
|
|
—
|
|
|
—
|
|
|
(8,000)
|
|
|
—
|
|
Loss from
sale-leaseback transaction, including transaction fees
|
|
(32,840)
|
|
|
—
|
|
|
(32,840)
|
|
|
—
|
|
Gain on sale of a
building
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,281
|
|
Total
adjustments
|
|
(74,148)
|
|
|
—
|
|
|
(143,347)
|
|
|
14,389
|
|
|
|
|
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
952,893
|
|
|
$
|
933,691
|
|
|
$
|
3,589,151
|
|
|
$
|
3,695,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
February 29,
2020
|
|
March 2,
2019
|
|
February 29,
2020
|
|
March 2,
2019
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Selling, General and Administrative Expenses as a Percent
of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
Reported selling,
general and administrative expenses as a percent of net
sales
|
|
33.1
|
%
|
|
28.2
|
%
|
|
33.4
|
%
|
|
30.6
|
%
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Severance
costs
|
|
(1.3)
|
%
|
|
—
|
%
|
|
(0.9)
|
%
|
|
(0.1)
|
%
|
Shareholder activity
costs
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Loss from
sale-leaseback transaction, including transaction fees
|
|
(1.1)
|
%
|
|
—
|
%
|
|
(0.3)
|
%
|
|
—
|
%
|
Gain on sale of a
building
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.2
|
%
|
Total
adjustments
|
|
(2.4)
|
%
|
|
—
|
%
|
|
(1.2)
|
%
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses as a percent of net
sales
|
|
30.7
|
%
|
|
28.2
|
%
|
|
32.2
|
%
|
|
30.7
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Effective Income Tax Rate
|
|
|
|
|
|
|
|
|
|
|
|
Reported effective
income tax rate
|
|
32.3
|
%
|
|
18.7
|
%
|
|
|
|
|
Impact on operating
loss and benefit for income taxes of goodwill and other
impairments, severance costs, and loss from sale-leaseback
transaction, including transaction fees
|
|
(35.6)
|
%
|
|
1.0
|
%
|
|
|
|
|
Adjusted effective
income tax rate
|
|
(3.3)
|
%
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net (Loss) Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net (loss)
earnings
|
|
$
|
(65,414)
|
|
|
$
|
(253,793)
|
|
|
$
|
(613,816)
|
|
|
$
|
(137,224)
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
Adjustments:
|
|
|
|
|
|
|
|
|
Incremental charge
for markdowns
|
|
—
|
|
|
—
|
|
|
169,820
|
|
|
—
|
|
Severance
costs
|
|
41,308
|
|
|
—
|
|
|
102,507
|
|
|
13,892
|
|
Goodwill and other
impairments (a)
|
|
67,821
|
|
|
509,905
|
|
|
509,226
|
|
|
509,905
|
|
Shareholder activity
costs
|
|
—
|
|
|
—
|
|
|
8,000
|
|
|
—
|
|
Loss from
sale-leaseback transaction, including transaction fees
|
|
32,840
|
|
|
—
|
|
|
32,840
|
|
|
—
|
|
Gain on sale of a
building
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,281)
|
|
Total pre-tax
adjustments
|
|
141,969
|
|
|
509,905
|
|
|
822,393
|
|
|
495,516
|
|
|
|
|
|
|
|
|
|
|
Tax impact of
adjustments
|
|
(29,666)
|
|
|
(97,286)
|
|
|
(151,231)
|
|
|
(93,456)
|
|
|
|
|
|
|
|
|
|
|
Total adjustments,
after tax
|
|
112,303
|
|
|
412,619
|
|
|
671,162
|
|
|
402,060
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
earnings
|
|
$
|
46,889
|
|
|
$
|
158,826
|
|
|
$
|
57,346
|
|
|
$
|
264,836
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net (Loss) Earnings per Diluted Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net (loss)
earnings per diluted share
|
|
$
|
(0.53)
|
|
|
$
|
(1.92)
|
|
|
$
|
(4.94)
|
|
|
$
|
(1.02)
|
|
Goodwill and other
impairments, severance costs, shareholder activity costs,
incremental charge for markdowns, loss on sale-leaseback
transaction, including transaction fees and gain on sale of a
building
|
|
0.91
|
|
|
3.12
|
|
|
5.40
|
|
|
2.99
|
|
Adjusted net (loss)
earnings per diluted share
|
|
$
|
0.38
|
|
|
$
|
1.20
|
|
|
$
|
0.46
|
|
|
$
|
1.97
|
|
|
|
(a)
|
Goodwill and other
impairments include: (1) goodwill, tradename, store asset and other
impairments related to the North American Retail reporting unit;
and (2) tradename impairments related
to the Institutional Sales reporting unit.
|
View original
content:http://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-results-for-fiscal-2019-fourth-quarter-and-full-year-301041378.html
SOURCE Bed Bath & Beyond Inc.