UNION, N.J., Oct. 1, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today reported financial results for the
second quarter of fiscal 2020 ended August 29, 2020.
(in millions,
except per share data)
|
|
Reported
GAAP
|
|
|
|
Adjusted
(1)
(Including Non-GAAP)
|
|
|
Three months
ended
|
|
|
|
Three months
ended
|
|
|
August 31,
2019
|
|
August 29,
2020
|
|
Diff.
|
|
|
|
August 31,
2019
|
|
August 29,
2020
|
|
Diff.
|
Comparable
Sales
|
|
|
|
|
|
|
|
|
|
(7)%
|
|
6%
|
|
|
Total Net
Sales
|
|
$
|
2,719
|
|
|
$
|
2,688
|
|
|
(1)%
|
|
|
|
$
|
2,719
|
|
|
$
|
2,688
|
|
|
(1)%
|
Gross
Margin
|
|
26.7%
|
|
36.7%
|
|
1,000 bps
|
|
|
|
33.9%
|
|
35.9%
|
|
200bps
|
SG&A
Margin
|
|
32.4%
|
|
31.6%
|
|
-80bps
|
|
|
|
31.6%
|
|
31.5%
|
|
-10bps
|
Adjusted
EBITDA
|
|
—
|
|
—
|
|
—
|
|
|
$
|
147
|
|
|
$
|
199
|
|
|
36%
|
EPS -
Diluted
|
|
$
|
(1.12)
|
|
|
$
|
1.75
|
|
|
256%
|
|
|
|
$
|
0.34
|
|
|
$
|
0.50
|
|
|
47%
|
|
|
(1)
|
Adjusted items refer
to comparable sales as well as to financial measures that are
derived from measures calculated in accordance with GAAP, but which
have been adjusted to exclude certain items. All of these
latter financial measures are non-GAAP financial
measures.
|
Fiscal 2020 Second Quarter Highlights
- Comparable sales increased approximately 6%, the Company's
first comparable sales growth since the fiscal 2016 fourth
quarter. Second quarter comparable sales benefited from
significantly strong growth in digital channels of approximately
89%, partially offset by an approximately 12% decline in comparable
store sales.
- Net sales were approximately $2.7
billion, a decrease of approximately 1% compared to the
prior year period, partially due to the divestiture of One Kings
Lane. Net sales from digital channels grew approximately 88%, while
net sales from stores declined approximately 18%, compared to the
prior year.
- Gross margin increased approximately 1,000 basis points to
36.7% compared to the prior year period, driven primarily by a
favorable adjustment to the incremental inventory reserve for
future markdowns in the fiscal 2020 second quarter and an inventory
writedown in the prior year period. Excluding these items
from both periods, adjusted gross margin increased approximately
200 basis points to 35.9% and was driven primarily by favorable
product mix, including lower coupon expense and better optimization
of promotion and markdowns; and leverage of distribution and
fulfillment costs; partially offset by higher digital channel mix,
including higher net-direct-to-customer shipping expense.
- SG&A expenses decreased approximately $31 million or 3.5% compared to the prior year
period, driven primarily by lower payroll and payroll-related
expenses and advertising, which were partially offset by an
increase in professional fees within other expenses, mainly
consulting costs related to the Company's transformation
initiatives. Excluding charges related to severance costs
from the prior year period, adjusted SG&A expenses decreased
approximately $12 million or 1.4%
compared to adjusted SG&A in the prior year period.
- Net earnings per diluted share of $1.75 includes approximately $156 million from special items including
favorable impacts from a gain on the sale of
PersonalizationMall.com and a gain on the extinguishment of debt,
partially offset by unfavorable impacts from special items
including non-cash charges related to impairments of tradenames,
and certain store-level assets, and the restructuring and
transformation initiative costs. This compares with a net
loss of $(1.12) per diluted share for
the fiscal 2019 second quarter.
-
- Excluding special items from both periods, the Company reported
adjusted net earnings per diluted share of $0.50 for the fiscal 2020 second quarter, and
adjusted net earnings per diluted share of $0.34 for the fiscal 2019 second
quarter.
Mark Tritton, Bed Bath &
Beyond's President and CEO said, "Our growth strategy is unlocking
improved financial performance, and the marked improvement in our
second quarter financial results reflects the potential of our
digital-first, omni-always transformation and our efforts to build
a modern, durable platform for success. We've taken direct
action to stabilize our business, including reducing our cost
structure, enhancing our financial flexibility, and investing where
it matters most to our customers. At the same time, we
have assembled a world-class and experienced leadership team to
rebuild our authority in Home and modernize our operations to
deliver a truly customer-inspired and omni-always shopping
experience.
"During this unprecedented time when our homes have become the
center of our lives, our Company continues to respond with agility
to the changing needs of our customers. We are delighted by
the continued strong response to our BOPIS and contactless Curbside
Pickup service offerings, and we believe the recent launch of our
new Same Day Delivery service will make it even easier to shop with
us, as we help families across North
America unlock the magic of holidays at home."
Financial Position Update
During the fiscal 2020 second quarter, the Company generated
cash flow of over $750 million
including operational earnings and working capital, net of capital
investments; reduced its gross debt by approximately $500 million or 30% through a bond tender offer
and repayment of a bank loan; and further enhanced its liquidity
position by approximately $400
million to approximately $2.2
billion through strong cash generation and a new
$850 million secured asset-based
lending facility.
Outlook
Given the ongoing uncertainty related to the impact of the
COVID-19 pandemic, including around consumer behavior especially
during the upcoming holiday season, the Company maintains its
position of not providing fiscal 2020 financial guidance. It
is closely managing operational costs, including working capital to
ensure it can remain agile and adjust to any unexpected changes in
the market. The Company continues to believe it has a strong
financial position to manage through these uncertain times.
As previously disclosed on July 14,
2020 in an Investor FAQ Document, Bed Bath & Beyond
plans to accelerate its comprehensive restructuring program to
drive profit improvement over the next two-to-three years. It
expects to achieve significant annualized improvement in Earnings
before Interest, Income Taxes, Depreciation and Amortization
(EBITDA) of between approximately $250
million to $350 million,
excluding one-time costs. This is in addition to the expected
$85 million in SG&A savings
associated with the strategic restructuring program announced in
February 2020. Importantly, the
Company has assumed reinvestment of between approximately
$150 to $200
million of the expected cost savings into future growth
initiatives.
Key components of the additional expected profit improvement
include:
- Approximately $100 million in
annual savings from its previously described Store Network
Optimization project which includes the closure of approximately
200 mostly Bed Bath & Beyond stores over the next two
years. These stores collectively generated about $1 billion in annual net sales in fiscal 2019,
and many of them were EBITDA negative by the end of fiscal
2019. The Company expects to be able to transition at least
15% to 20% of these sales to its digital channels or other store
locations.
-
- The Company continues to believe that its physical store
channel is an asset for its transformation into a digital-first
company, especially with new omni-fulfillment capabilities in
Buy-Online-Pick-Up-In-Store, Curbside Pickup and Same Day
Delivery.
- Approximately $200 million in
annual savings from product sourcing, through renegotiations with
existing vendors.
- Approximately $150 million in
annual SG&A savings from continued optimization of its
corporate overhead cost structure and reductions in other
discretionary expense.
-
- As previously disclosed on August 25,
2020, the Company announced that it had executed a workforce
reduction of approximately 2,800 roles from across its corporate
headquarters and retail banner stores and expects this action to
generate future annual pre-tax cost savings of approximately
$150 million, which is at the upper
end of the Company's initially stated range of $100 to $150 million
dollars in annual SG&A savings described above.
This action was designed to further reduce layers at the corporate
level, significantly reposition field operations to better serve
customers in a digital-first shopping environment, as well as
realign technology, supply chain and merchandising teams to support
strategic growth initiatives.
In addition to these cost savings, the Company expects to
generate deeper assortment, sourcing and supply chain opportunities
as it pursues growth in owned brands.
On a preliminary basis, monthly sales for September show
positive comparable sales growth, with similar store and
digital sales as in the second quarter and accelerated BOPIS
trends.
Fiscal 2020 Second Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s fiscal 2020 second quarter
conference call with analysts and investors will be held today at
8:00am EDT and may be accessed by
dialing 1-888-424-8151, or if international, 1-847-585-4422, using
conference ID number 5579585#. 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 www.bedbathandbeyond.com. 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
www.bedbathandbeyond.com.
2020 Virtual Investor Day
The Company invites financial analysts and institutional
investors to save the date for a Bed Bath & Beyond Virtual
Investor Day on Wednesday, October 28, 2020, starting at
9:00am EDT. The event will be
hosted by President and CEO Mark Tritton and other
members of the Company's Leadership Team. Further details will be
included in a formal invitation to be sent out in advance of the
event.
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
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, decorist.com, harborlinen.com,
and t-ygroup.com. As of August 29, 2020, the Company had
a total of 1,476 stores, including 955 Bed Bath & Beyond stores
in all 50 states, the District of
Columbia, Puerto Rico and
Canada, 259 stores under the names
of World Market, Cost Plus World Market or Cost Plus, 128 buybuy
BABY stores, 81 stores under the names Christmas Tree Shops,
Christmas Tree Shops andThat! or andThat!, and 53 stores under the
names Harmon, Harmon Face Values or Face Values. During the
fiscal 2020 second quarter, the Company opened 2 stores including
one Bed Bath & Beyond store and one buybuy BABY store.
Also during the fiscal second quarter, the Company closed 4 stores
including 3 Cost Plus World Market stores and one Bed Bath &
Beyond store. 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,
including adjusted earnings before interest, income taxes,
depreciation and amortization ("EBITDA"), adjusted gross margin,
adjusted SG&A and 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, tradenames,
and other impairments, severance costs, incremental inventory
reserve for future markdowns, favorable impacts from an adjustment
to the incremental inventory reserve for future markdowns, a gain
on the extinguishment of debt, a gain on the sale of
PersonalizationMall.com, and the restructuring and transformation
initiative costs. 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 progress and
anticipated progress towards its long-term objectives, the future
impact of the novel coronavirus (COVID-19), the potential impact
and success of its strategic restructuring program, and its current
estimates and expectations for financial performance for future
periods. 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 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, including the Company's strategic
restructuring program; 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. 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
|
|
August 29,
2020
|
|
August 31,
2019
|
|
|
|
|
Net sales
|
$
|
2,687,968
|
|
|
$
|
2,719,447
|
|
|
|
|
|
Cost of
sales
|
1,700,431
|
|
|
1,992,459
|
|
|
|
|
|
Gross profit
|
987,537
|
|
|
726,988
|
|
|
|
|
|
Selling, general and
administrative expenses
|
850,218
|
|
|
880,889
|
|
|
|
|
|
Impairment
charges
|
29,176
|
|
|
28,357
|
|
|
|
|
|
Restructuring and
transformation initiative costs
|
27,128
|
|
|
—
|
|
|
|
|
|
Gain on sale of
business
|
(189,528)
|
|
|
—
|
|
|
|
|
|
Operating profit (loss)
|
270,543
|
|
|
(182,258)
|
|
|
|
|
|
Interest expense,
net
|
23,371
|
|
|
16,342
|
|
|
|
|
|
Gain on
extinguishment of debt
|
(77,038)
|
|
|
—
|
|
|
|
|
|
Earnings (loss) before provision for income taxes
|
324,210
|
|
|
(198,600)
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
106,310
|
|
|
(59,835)
|
|
|
|
|
|
Net earnings (loss)
|
$
|
217,900
|
|
|
$
|
(138,765)
|
|
|
|
|
|
Net earnings
(loss) per share - Basic
|
$
|
1.76
|
|
|
$
|
(1.12)
|
|
Net earnings (loss)
per share - Diluted
|
$
|
1.75
|
|
|
$
|
(1.12)
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
124,146
|
|
|
123,349
|
|
Weighted average
shares outstanding - Diluted
|
124,211
|
|
|
123,349
|
|
|
|
|
|
Dividends declared
per share
|
$
|
—
|
|
|
$
|
0.17
|
|
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 second 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 2020
second 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 2019 period
in the reconciliation tables below. The Company is not
providing a reconciliation of its estimate of improved EBITDA as a
result of the ongoing restructuring program to the most directly
comparable measure prepared in accordance with GAAP, 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
|
|
August 29,
2020
|
|
August 31,
2019
|
Reconciliation of
Adjusted Net Earnings (Loss) per Diluted Share
|
Reported net earnings
(loss) per diluted share
|
$
|
1.75
|
|
|
$
|
(1.12)
|
|
Impairments,
severance, incremental inventory reserve for future markdowns,
costs associated with portfolio optimization strategy,
restructuring and transformation initiative costs, gain on sale of
business and gain on extinguishment of debt
|
(1.25)
|
|
|
1.46
|
|
Adjusted net earnings
per diluted share
|
$
|
0.50
|
|
|
$
|
0.34
|
|
|
|
|
|
Reconciliation of
Adjusted Gross Profit
|
Reported gross
profit
|
$
|
987,537
|
|
|
$
|
726,988
|
|
|
|
|
|
Adjustments:
|
|
|
|
Incremental inventory
reserve for future markdowns
|
(23,000)
|
|
|
193,735
|
|
Total
adjustments
|
(23,000)
|
|
|
193,735
|
|
|
|
|
|
Adjusted gross
profit
|
$
|
964,537
|
|
|
$
|
920,723
|
|
|
|
|
|
Reconciliation of
Adjusted Gross Margin
|
Reported gross
margin
|
36.7
|
%
|
|
26.7
|
%
|
|
|
|
|
Adjustments:
|
|
|
|
Incremental inventory
reserve for future markdowns
|
(0.8)
|
%
|
|
7.2
|
%
|
Total
adjustments
|
(0.8)
|
%
|
|
7.2
|
%
|
|
|
|
|
Adjusted gross
margin
|
35.9
|
%
|
|
33.9
|
%
|
|
|
|
|
|
Three Months
Ended
|
|
August 29,
2020
|
|
August 31,
2019
|
Reconciliation of
Adjusted Selling, General and Administrative
Expenses
|
Reported selling,
general and administrative expenses
|
$
|
850,218
|
|
|
$
|
880,889
|
|
|
|
|
|
Adjustments:
|
|
|
|
Severance
costs
|
—
|
|
|
(22,537)
|
|
Costs associated with
portfolio optimization strategy
|
(3,750)
|
|
|
—
|
|
Total
adjustments
|
(3,750)
|
|
|
(22,537)
|
|
|
|
|
|
Adjusted selling,
general and administrative expenses
|
$
|
846,468
|
|
|
$
|
858,352
|
|
|
|
|
|
Reconciliation of
Adjusted Selling, General and Administrative Expenses (SG&A) as
a Percent of Net Sales
|
Reported SG&A as
a percent of net sales
|
31.6
|
%
|
|
32.4
|
%
|
|
|
|
|
Adjustments:
|
|
|
|
Severance
costs
|
—
|
%
|
|
(0.8)
|
%
|
Costs associated with
portfolio optimization strategy
|
(0.1)
|
%
|
|
—
|
%
|
Total
adjustments
|
(0.1)
|
%
|
|
(0.8)
|
%
|
|
|
|
|
Adjusted SG&A as
a percent of net sales
|
31.5
|
%
|
|
31.6
|
%
|
|
|
|
|
Reconciliation of
Net Income (Loss) to EBITDA and Adjusted EBITDA
|
Reported net earnings
(loss)
|
$
|
217,900
|
|
|
$
|
(138,765)
|
|
Depreciation and
amortization
|
85,277
|
|
|
84,430
|
|
Interest expense,
net
|
23,371
|
|
|
16,342
|
|
Gain on
extinguishment of debt
|
(77,038)
|
|
|
—
|
|
Provision (benefit)
for income taxes
|
106,310
|
|
|
(59,835)
|
|
EBITDA
|
$
|
355,820
|
|
|
$
|
(97,828)
|
|
|
|
|
|
Pre-tax
Adjustments:
|
|
|
|
Incremental inventory
reserve for future markdowns
|
(23,000)
|
|
|
193,735
|
|
Impairments
(a)
|
29,176
|
|
|
28,357
|
|
Restructuring and
transformation initiative costs
|
23,128
|
|
|
—
|
|
Severance
costs
|
—
|
|
|
22,537
|
|
Gain on sale of
business
|
(189,528)
|
|
|
—
|
|
Costs associated with
portfolio optimization strategy
|
3,750
|
|
|
—
|
|
Total pre-tax
adjustments
|
(156,474)
|
|
|
244,629
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
199,346
|
|
|
$
|
146,801
|
|
|
|
|
|
Reconciliation of
Adjusted Effective Income Tax Rate
|
Reported effective
income tax rate
|
32.8
|
%
|
|
30.1
|
%
|
Impairments,
severance, incremental inventory reserve for future markdowns,
costs associated with portfolio optimization strategy,
restructuring and transformation initiative costs, gain on sale of
business and gain on extinguishment of debt
|
1.5
|
%
|
|
(21.1)
|
%
|
Adjusted effective
income tax rate
|
34.3
|
%
|
|
9.0
|
%
|
|
|
|
|
|
Three Months
Ended
|
|
August 29,
2020
|
|
August 31,
2019
|
Reconciliation of
Adjusted Net Earnings (Loss)
|
|
|
|
Reported net earnings
(loss)
|
$
|
217,900
|
|
|
$
|
(138,765)
|
|
|
|
|
|
Pre-tax
Adjustments:
|
|
|
|
Incremental inventory
reserve for future markdowns
|
(23,000)
|
|
|
193,735
|
|
Impairments
(a)
|
29,176
|
|
|
28,357
|
|
Restructuring and
transformation initiative costs
|
27,128
|
|
|
—
|
|
Severance
costs
|
—
|
|
|
22,537
|
|
Gain on sale of
business
|
(189,528)
|
|
|
—
|
|
Gain on
extinguishment of debt
|
(77,038)
|
|
|
—
|
|
Costs associated with
portfolio optimization strategy
|
3,750
|
|
|
—
|
|
Total pre-tax
adjustments
|
(229,512)
|
|
|
244,629
|
|
Tax impact of
adjustments
|
73,863
|
|
|
(63,964)
|
|
Total adjustments,
after tax
|
(155,649)
|
|
|
180,665
|
|
|
|
|
|
Adjusted net
earnings
|
$
|
62,251
|
|
|
$
|
41,900
|
|
|
|
|
|
|
|
(a)
|
Impairments include
tradename and store asset impairments related to the North American
Retail reporting unit.
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Balance Sheets
(in thousands,
except per share data)
(unaudited)
|
|
|
August 29,
2020
|
|
May 30,
2020
|
|
February 29,
2020
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,441,845
|
|
|
1,120,974
|
|
|
1,000,340
|
|
Short term investment securities
|
—
|
|
|
29,485
|
|
|
385,642
|
|
Merchandise inventories
|
2,052,041
|
|
|
2,240,449
|
|
|
2,093,869
|
|
Prepaid expenses and other current assets
|
249,672
|
|
|
354,796
|
|
|
248,342
|
|
Assets held-for-sale
|
—
|
|
|
70,530
|
|
|
98,092
|
|
Total
current assets
|
3,743,558
|
|
|
3,816,234
|
|
|
3,826,285
|
|
Long term investment
securities
|
19,893
|
|
|
19,928
|
|
|
20,380
|
|
Property and
equipment, net
|
1,295,967
|
|
|
1,362,110
|
|
|
1,430,604
|
|
Operating lease
assets
|
1,913,719
|
|
|
1,903,380
|
|
|
2,006,966
|
|
Other
assets
|
465,963
|
|
|
592,695
|
|
|
506,280
|
|
Total
assets
|
$
|
7,439,100
|
|
|
$
|
7,694,347
|
|
|
$
|
7,790,515
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
1,028,730
|
|
|
$
|
954,745
|
|
|
944,194
|
|
Accrued expenses and other current liabilities
|
686,004
|
|
|
609,930
|
|
|
675,776
|
|
Merchandise credit and gift card liabilities
|
322,859
|
|
|
327,512
|
|
|
340,407
|
|
Current operating lease liabilities
|
464,946
|
|
|
545,547
|
|
|
463,005
|
|
Liabilities related to assets held-for-sale
|
—
|
|
|
26,303
|
|
|
43,144
|
|
Total
current liabilities
|
2,502,539
|
|
|
2,464,037
|
|
|
2,466,526
|
|
Other
liabilities
|
206,221
|
|
|
203,998
|
|
|
204,926
|
|
Operating lease
liabilities
|
1,799,504
|
|
|
1,792,187
|
|
|
1,818,783
|
|
Income taxes
payable
|
43,660
|
|
|
48,119
|
|
|
46,945
|
|
Long term
debt
|
1,190,168
|
|
|
1,724,916
|
|
|
1,488,400
|
|
Total
liabilities
|
5,742,092
|
|
|
6,233,257
|
|
|
6,025,580
|
|
|
|
|
|
|
|
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 343,676, 343,918 and
343,683, respectively; outstanding 126,008, 126,307 and 126,528
shares, respectively
|
3,436
|
|
|
3,439
|
|
|
3,436
|
|
Additional paid-in
capital
|
2,183,564
|
|
|
2,175,225
|
|
|
2,167,337
|
|
Retained
earnings
|
10,290,896
|
|
|
10,072,535
|
|
|
10,374,826
|
|
Treasury stock, at
cost; 217,668, 217,611 and 217,155 shares, respectively
|
(10,718,789)
|
|
|
(10,718,292)
|
|
|
(10,715,755)
|
|
Accumulated other
comprehensive loss
|
(62,099)
|
|
|
(71,817)
|
|
|
(64,909)
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
1,697,008
|
|
|
1,461,090
|
|
|
1,764,935
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
7,439,100
|
|
|
$
|
7,694,347
|
|
|
$
|
7,790,515
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands, unaudited)
|
|
|
Three Months
Ended
|
|
August 29,
2020
|
|
August 31,
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
(loss)
|
217,900
|
|
|
(138,765)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and amortization
|
85,277
|
|
|
84,430
|
|
Goodwill and other impairments
|
29,176
|
|
|
28,357
|
|
Stock-based compensation
|
8,178
|
|
|
12,062
|
|
Deferred income taxes
|
105,089
|
|
|
(32,687)
|
|
Gain on sale of business
|
(189,528)
|
|
|
—
|
|
Gain on debt extinguishment
|
(77,038)
|
|
|
—
|
|
Other
|
1,275
|
|
|
(834)
|
|
Decrease (increase) in assets:
|
|
|
|
Merchandise inventories
|
184,525
|
|
|
207,429
|
|
Other
current assets
|
105,806
|
|
|
(54,383)
|
|
Other
assets
|
(551)
|
|
|
(1,350)
|
|
Increase (decrease) in liabilities:
|
|
|
|
Accounts
payable
|
92,496
|
|
|
23,246
|
|
Accrued
expenses and other current liabilities
|
72,684
|
|
|
27,122
|
|
Merchandise credit and gift card liabilities
|
(5,082)
|
|
|
(2,067)
|
|
Income
taxes payable
|
(4,458)
|
|
|
(27,176)
|
|
Operating
lease assets and liabilities, net
|
(85,076)
|
|
|
41,011
|
|
Other
liabilities
|
2,809
|
|
|
(579)
|
|
Net cash
provided by operating activities
|
543,482
|
|
|
165,816
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Redemption of held-to-maturity investment securities
|
29,500
|
|
|
202,000
|
|
Net proceeds from sale of business
|
244,782
|
|
|
—
|
|
Capital expenditures
|
(36,970)
|
|
|
(56,835)
|
|
Net cash
provided by investing activities
|
237,312
|
|
|
145,165
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Payment of dividends
|
(1,778)
|
|
|
(21,479)
|
|
Repurchase of common stock, including fees
|
(497)
|
|
|
(16,472)
|
|
Repayments of long-term debt
|
(457,827)
|
|
|
—
|
|
Payment of deferred financing fees
|
(7,690)
|
|
|
—
|
|
Net cash used
in financing activities
|
(467,792)
|
|
|
(37,951)
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
5,386
|
|
|
1,928
|
|
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash, including cash balances
classified as assets held-for-sale
|
$
|
318,388
|
|
|
274,958
|
|
Change in cash
balances classified as held-for-sale
|
2,545
|
|
|
—
|
|
Net increase in cash,
cash equivalents and restricted cash
|
$
|
320,933
|
|
|
274,958
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
Beginning of
period
|
$
|
1,155,154
|
|
|
$
|
732,199
|
|
End of
period
|
$
|
1,476,087
|
|
|
$
|
1,007,157
|
|
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SOURCE Bed Bath & Beyond Inc.