UNION, N.J., April 14, 2021 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today reported financial results for the
fourth quarter of fiscal 2020 ended February 27, 2021.
|
Reported
|
|
|
Adjusted2
|
(in millions,
except per share data)
|
Three months
ended
|
|
|
Three months
ended
|
|
February
29, 2020
|
February
27, 2021
|
Diff
|
|
February
29, 2020
|
February
27, 2021
|
Diff
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$3,107
|
$2,619
|
(16%)
|
|
|
|
|
|
Total enterprise
comp sales growth
|
|
|
|
|
|
|
|
+4%
|
BBB
banner1comp sales growth
|
|
|
|
|
|
|
|
+6%
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
32.6%
|
31.5%
|
(110)bps
|
|
|
32.6%
|
32.8%
|
+20bps
|
SG&A
|
$1,027
|
$763
|
($264)
|
|
|
$953
|
$763
|
($190)
|
|
|
|
|
|
|
|
|
|
Net
Income
|
($65)
|
$9
|
+$74
|
|
|
$47
|
$47
|
$0
|
Adjusted
EBITDA
|
|
|
|
|
|
$148
|
$168
|
+13%
|
Adjusted EBITDA
Margin
|
|
|
|
|
|
4.8%
|
6.4%
|
+160bps
|
EPS -
Diluted
|
($0.53)
|
$0.08
|
+$0.61
|
|
|
$0.38
|
$0.40
|
+$0.02
|
Mark Tritton, Bed Bath &
Beyond's President and CEO said, "Fiscal 2020 was a year of
fast-paced transformation in which we reformed the past, overcame
extraordinary circumstances of the present, and established a firm
foundation for the future. Despite the challenges created by the
COVID-19 pandemic, we relentlessly focused on taking purposeful and
bold steps to transform our entire organization and remained true
to our plans to rebuild our authority in Home and restore this
iconic Company. Importantly, we prioritized the health and
wellbeing of our associate teams, customers and communities and I
am so proud of how our people have come together to deliver for one
another and the millions of people who count on us.
"We are excited to start fresh in 2021 with our sharpened size
and scale, a healthier portfolio of core banners and a stronger
financial position to execute the first phase of our 3-year
transformation journey. As our transformation continues to take
hold, we will show up differently for our customers with enhanced
omnichannel experiences and modern stores, new communications and
differentiated Owned Brands that will elevate the shopping
experience and make it even easier to shop with the new Bed Bath
& Beyond."
Q4 Highlights
- 3rd Consecutive Quarter of Comparable Sales
Growth
-
- +4% Comp Sales growth on Total Enterprise,
including digital comp growth of +86%
- +6% Comp Sales growth on Bed Bath & Beyond
banner, including digital comp growth of
+99%
- +12% Comp Sales growth in Bed Bath & Beyond's
Top 5 destination categories combined
- Consistent Execution of Transformation Strategy Drives
Earnings Growth
-
- 31.5% Gross Margin; Adjusted Gross Margin increases
20bps to 32.8%
- 13% increase in Adjusted EBITDA2 to
$168 million; 160bps expansion in Adjusted EBITDA
Margin2 to 6.4%
- $9 million of GAAP Net Income; Adjusted Net Income of
$47 million
- $0.08 of Reported Net
Earnings per Diluted Share; excluding special items, Adjusted Net
Earnings per Diluted Share2 of $0.40
Fiscal 2020 Highlights
- Demonstrated business agility and financial strength
during year of unprecedented challenges; Built robust foundation to
successfully execute 3-year growth plan
-
- 3 consecutive quarters of comparable sales growth
and adjusted gross margin improvement
- $3+ billion in digital sales
- +10.6 million new digital customers (+95% vs fiscal
2019), of which 5 million are new to brand
- 37% of digital revenue fulfilled by stores;
including 14% Buy Online Pickup In Store (BOPIS)
- $1 billion
approximate reduction in gross debt3
- $375 million in capital return to shareholders through
accelerated share repurchases of approximately 16 million
shares, representing approximately 13% of shares
outstanding, at an estimated average share price of $23 per share
- $2.1 billion in
liquidity4
- 144 Bed Bath & Beyond stores closed as part of
network optimization program, ahead of schedule
- 5th non-core banner divested (Cost Plus World
Market); portfolio transformation complete
Fiscal 2021 Outlook
- Year of Fast-Paced Transformation Expected to Enhance
Strategic Position for Sustained Success
-
- Reaffirming fiscal 2021 outlook for Net Sales and Adjusted
EBITDA of between $8.0 - $8.2 billion and between $500 - $525
million, respectively
- Expecting to launch at least 8 customer-inspired Owned Brands,
including first quarter launches of Nestwell™, Haven™ and Simply
Essential™
- Projecting faster improvement in gross debt-to-EBITDA ratio to
<3x in fiscal 2021
- Investing in growth and transformation with CAPEX spend of
approximately $400 million
- Strengthening capital return to shareholders by increasing
3-year share repurchase authorization program to $1 billion from $825
million; increasing fiscal 2021 share repurchases to
$325 million from $300 million
Fiscal 2020 Fourth Quarter Highlights
(December-January-February)
- Comparable sales increased for the third consecutive quarter,
with Total Enterprise comparable sales growth of 4%, led by strong
digital growth of approximately 86%. Comparable store sales
decreased 20%.
-
- The Bed Bath & Beyond banner had comparable sales growth of
6%, benefitting from strong digital growth of approximately 99%,
and was driven by key destination categories including Bedding,
Bath, Kitchen Food Prep, Indoor Décor and Home Organization. These
top 5 categories had strong comp sales growth of 12% (combined) and
represented almost two-thirds of total Bed Bath & Beyond banner
sales in the fourth quarter.
- The buybuy BABY banner returned to delivering comparable sales
growth in the quarter, led by strong digital growth of over 50%,
which represented almost two-thirds of BABY banner sales.
- Net sales of $2.6 billion
decreased 16% compared to the prior year period, driven by impacts
from previously planned non-core banner divestitures and permanent
store closures. Excluding these impacts of approximately 12%, Core
banner1 net sales decreased approximately 3%, primarily
due to store closing activity consistent with the Company's network
optimization program. Total store net sales decreased 27%, and
total digital net sales increased 86%.
- Gross margin of 31.5% decreased 110 basis points compared to
the prior year period. Excluding special items, adjusted gross
margin2 increased 20 basis points to 32.8%, primarily
driven by optimization of promotion and markdowns, favorable
product mix and leverage of distribution and fulfillment costs,
partially offset by higher digital channel mix, including
significant industrywide freight cost increases.
- SG&A expense of $763 million
decreased $264 million compared to
the prior year period. Adjusted SG&A2 expense
decreased $190 million compared to
the prior year period, driven primarily by reductions from the
non-core banner divestitures and lower occupancy expense on a
smaller base of stores.
- Net earnings per diluted share of $0.08 includes approximately $38 million from special items. Excluding
special items, adjusted net earnings per diluted share2
was $0.40. Special items include the
net loss on sale of businesses, non-cash impairment charges related
to certain store-level assets, charges recorded in connection with
the restructuring and transformation initiatives, which includes
markdowns and inventory reserves related to the planned assortment
transition to Owned Brands and the income tax impact of these
items.
- Adjusted EBITDA2 increased 13% to $168 million, primarily due to higher comparable
sales coupled with adjusted gross margin expansion and SG&A
expense reduction.
- Cash flow from operations of $76
million and $14 million used
in cash flow from investing, inclusive of $66 million of capital expenditures. Positive
free cash flow2 of $62
million.
- Cash, cash equivalents and restricted cash balance of
approximately $1.4 billion increased
$384 million compared to the prior
year period.
- Total Liquidity4 of approximately $2.1 billion, including the Company's asset based
revolving credit facility.
Fiscal 2021 Outlook
During the Company's fiscal fourth
quarter conference call with analysts and investors, it will
discuss its outlook for fiscal 2021 and its long-term financial
goals to strengthen and accelerate growth and unlock and drive
sustainable total shareholder return. With the non-core banner
divestitures now complete, the Company is reaffirming its
previously communicated fiscal 2021 Net Sales and Adjusted EBITDA
outlook of between $8.0 -
$8.2 billion and between $500 - $525
million, respectively. The Company also announced an
increase in its 3-year share repurchase program to $1 billion from $825
million.
Fiscal 2021 Full-Year Outlook:
|
|
FISCAL
2021
|
REAFFIRM
|
P&L
|
Sales
|
$8.0bn-$8.2bn
|
√
|
Comp
Sales
|
"Recapture and
Sustain"6
|
√
|
|
|
|
Adj. Gross
Margin
|
approx.
35%
|
√
|
|
|
|
Adj. SG&A
(% of sales)
|
approx.
31%
|
√
|
|
|
|
Adj.
EBITDA
|
$500mn-$525mn
|
√
|
|
CAPITAL
ALLOCATION
|
CAPEX
|
approx.
$400mn
|
√
|
|
|
|
Gross
Debt-to-EBITDA Ratio4
|
Faster improvement to
<3x
|
improved
|
|
|
|
Share
Repurchase
|
$325mn from
$300mn
|
improved
|
Fiscal 2021 First Quarter Outlook:
The Company's fiscal 2021 first quarter net sales will be
impacted by comparisons to last year when the majority of its
stores were closed due to the COVID-19 pandemic, as well as by
non-core banner divestitures and its ongoing fleet optimization
program. To provide further perspective on its portfolio
transformation and the quarterly comparisons of Core Go-Forward
banners, the Company has provided below a quarterly summary of
fiscal 2019 and 2020 net sales, on both a reported basis and on a
Core Go-Forward basis. The Core Go-Forward banners include Bed Bath
& Beyond, buybuy BABY, Harmon Face Values and Decorist.
Directionally, the Company expects its fiscal 2021 first quarter
net sales, on a reported basis, to increase by over 40% versus the
prior year period when the vast majority of its stores were closed
due to the COVID-19 pandemic and in spite of non-core banner
divestitures. Excluding the impact from divested businesses in both
periods, the Company expects first quarter net sales growth of its
Core Go-Forward banners to be much higher by approximately +65 to
+70%.
The Company expects to show sequential improvement in gross
margin as the fiscal year progresses. Directionally, it expects
adjusted gross margin in the fiscal 2021 first quarter to be in the
34% range and expects to deliver between $80 and $90 million
in adjusted EBITDA.
Additional details on the Company's fiscal 2021 outlook and
visibility on the first 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.
Additional Information – Quarterly Summary of Fiscal 2019 and
Fiscal 2020 Net Sales
The following table shows a quarterly summary of the Company's
fiscal 2019 and 2020 net sales on both a reported basis and on a
Core Go-Forward basis, which excludes sales from divested
banners.
The Company is providing this additional transparency to help
analysts and investors gain further perspective on the Company's
recent portfolio transformation and the quarterly comparisons of
the Core Go-Forward banners which include Bed Bath & Beyond,
buybuy BABY, Harmon Face Values and Decorist.
|
(in
millions)
|
|
FY19
|
|
FY20
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Yr
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Full
Yr
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
$2,573
|
$2,719
|
$2,759
|
$3,107
|
$11,159
|
|
$1,307
|
$2,688
|
$2,618
|
$2,619
|
$9,233
|
Core
Go-Forward
|
|
2,080
|
2,263
|
2,191
|
2,471
|
9,006
|
|
1,128
|
2,239
|
2,186
|
2,390
|
7,943
|
|
|
Note: numbers may not
add due to rounding.
|
Fiscal 2020 Fourth Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s fiscal 2020 fourth 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
passcode number 9775756#. 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 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)
|
Gross debt includes
bonds, borrowings under the Company's asset-based revolving credit
facility and operating and finance lease liabilities.
|
(4)
|
Total Liquidity
includes cash & investments and availability under the
Company's asset-based revolving credit facility.
|
(5)
|
Leverage ratio
calculated using Moody's gross debt/EBITDA ratios.
|
(6)
|
The Company expects
to "Recapture" sales in the fiscal 2021 first quarter that were
lost in the prior year period due to temporary store closures. In
the subsequent quarters of fiscal 2021, the Company expects to
"Sustain" comparable sales levels relative to the solid comparable
sales base it experienced in these same quarters during fiscal
2020. For financial planning purposes, the Company
expects total enterprise comparable sales in its fiscal 2021 second
quarter through fourth quarter to be flat versus a strong fiscal
2020 base during the prior year periods of fiscal 2020.
|
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
February 27, 2021, the Company had a
total of 1,020 stores, including 834 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 2020 fourth quarter, the Company
opened 3 buybuy BABY stores, 1 Bed Bath & Beyond store, and 1
Harmon Face Values store and closed 118 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 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 the effects
of the net loss on the sale of businesses, charges recorded in
connection with the restructuring and transformation initiatives,
which includes markdowns and inventory reserves related to the
planned assortment transition to Owned Brands, non-cash impairment
charges related to tradenames and certain long-lived assets 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 first 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
|
|
Twelve Months
Ended
|
|
February 27,
2021
|
|
February 29,
2020
|
|
February 27,
2021
|
|
February 29,
2020
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,619,141
|
|
|
$
|
3,106,822
|
|
|
$
|
9,233,028
|
|
|
$
|
11,158,580
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,793,653
|
|
|
2,093,166
|
|
|
6,114,947
|
|
|
7,616,920
|
|
|
|
|
|
|
|
|
|
Gross profit
|
825,488
|
|
|
1,013,656
|
|
|
3,118,081
|
|
|
3,541,660
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
762,998
|
|
|
1,027,041
|
|
|
3,224,363
|
|
|
3,732,498
|
|
|
|
|
|
|
|
|
|
Goodwill and other
impairments
|
8,883
|
|
|
67,821
|
|
|
127,341
|
|
|
509,226
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
54,554
|
|
|
—
|
|
|
102,202
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Loss on sale of
businesses, including impairment of assets held for sale
|
22,705
|
|
|
—
|
|
|
1,062
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(23,652)
|
|
|
(81,206)
|
|
|
(336,887)
|
|
|
(700,064)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
18,566
|
|
|
15,370
|
|
|
76,913
|
|
|
64,789
|
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(77,038)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Loss before benefit for income taxes
|
(42,218)
|
|
|
(96,576)
|
|
|
(336,762)
|
|
|
(764,853)
|
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
(51,277)
|
|
|
(31,162)
|
|
|
(185,989)
|
|
|
(151,037)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
9,059
|
|
|
$
|
(65,414)
|
|
|
$
|
(150,773)
|
|
|
$
|
(613,816)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Basic
|
$
|
0.08
|
|
|
$
|
(0.53)
|
|
|
$
|
(1.24)
|
|
|
$
|
(4.94)
|
|
Net income (loss) per
share - Diluted
|
$
|
0.08
|
|
|
$
|
(0.53)
|
|
|
$
|
(1.24)
|
|
|
$
|
(4.94)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
115,055
|
|
|
123,347
|
|
|
121,446
|
|
|
124,352
|
|
Weighted average
shares outstanding - Diluted
|
117,286
|
|
|
123,347
|
|
|
121,446
|
|
|
124,352
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
—
|
|
|
$
|
0.17
|
|
|
$
|
—
|
|
|
$
|
0.68
|
|
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 2020 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 2019 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
February 27, 2021
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale
of
Businesses
|
|
Loss on sale-
leaseback,
including
transaction
fees
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairment
charges
|
|
Total income
tax impact
|
|
Total
Impact
|
|
Adjusted
|
Gross
Profit
|
|
$
|
825,488
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,198
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,198
|
|
|
$
|
858,686
|
Gross
margin
|
|
31.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.3
|
%
|
|
32.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
|
54,554
|
|
|
—
|
|
|
—
|
|
|
(54,554)
|
|
|
—
|
|
|
—
|
|
|
(54,554)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
before (benefit) provision for income taxes
|
|
(42,218)
|
|
|
22,705
|
|
|
—
|
|
|
87,752
|
|
|
8,883
|
|
|
—
|
|
|
119,340
|
|
|
77,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax (benefit)
provision
|
|
(51,277)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,297
|
|
|
81,297
|
|
|
30,020
|
Effective tax
rate
|
|
121.5
|
%
|
|
|
|
|
|
|
|
|
|
(82.6)
|
%
|
|
(82.6)
|
%
|
|
38.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
9,059
|
|
|
$
|
22,705
|
|
$
|
—
|
|
$
|
87,752
|
|
$
|
8,883
|
|
$
|
(81,297)
|
|
$
|
38,043
|
|
$
|
47,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share - Diluted
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding- Basic
|
|
115,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115,055
|
Weighted average
shares outstanding- Diluted
|
|
117,286
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income (loss) to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
9,059
|
|
$
|
22,705
|
|
$
|
—
|
|
$
|
87,752
|
|
$
|
8,883
|
|
$
|
(81,297)
|
|
$
|
38,043
|
|
$
|
47,102
|
Depreciation and
amortization
|
|
78,328
|
|
—
|
|
—
|
|
(6,141)
|
|
—
|
|
—
|
|
(6,141)
|
|
72,187
|
Interest
expense
|
|
18,566
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,566
|
Tax (benefit)
provision
|
|
(51,277)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
81,297
|
|
81,297
|
|
30,020
|
EBITDA
|
|
$
|
54,676
|
|
$
|
22,705
|
|
$
|
—
|
|
$
|
81,611
|
|
$
|
8,883
|
|
$
|
—
|
|
$
|
113,199
|
|
$
|
167,875
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
Three Months Ended
February 29, 2020
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale of
Businesses
|
|
Loss on
sale-leaseback, including transaction fees
|
|
Restructuring and
Transformation Expenses
|
|
Impairment
Charges
|
|
Total income tax
impact
|
|
Total
Impact
|
|
Adjusted
|
Gross
Profit
|
|
$
|
1,013,656
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,013,656
|
Gross
margin
|
|
32.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
32.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
before (benefit) provision for income taxes
|
|
(96,576)
|
|
|
—
|
|
|
32,840
|
|
|
41,308
|
|
|
67,821
|
|
|
—
|
|
|
141,969
|
|
|
45,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax (benefit)
provision
|
|
(31,162)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,666
|
|
|
29,666
|
|
|
(1,496)
|
Effective tax
rate
|
|
32.3
|
%
|
|
|
|
|
|
|
|
|
|
(35.6)
|
%
|
|
(35.6)
|
%
|
|
(3.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(65,414)
|
|
|
$
|
—
|
|
$
|
32,840
|
|
$
|
41,308
|
|
$
|
67,821
|
|
$
|
(29,666)
|
|
$
|
112,303
|
|
$
|
46,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per share - Diluted
|
|
$
|
(0.53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding- Basic
|
|
123,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,347
|
Weighted average
shares outstanding- Diluted
|
|
123,347
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net (Loss) Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(65,414)
|
|
$
|
—
|
|
$
|
32,840
|
|
$
|
41,308
|
|
$
|
67,821
|
|
$
|
(29,666)
|
|
$
|
112,303
|
|
$
|
46,889
|
Depreciation and
amortization
|
|
87,390
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
87,390
|
Interest
expense
|
|
15,370
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,370
|
Tax (benefit)
provision
|
|
(31,162)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29,666
|
|
29,666
|
|
(1,496)
|
EBITDA
|
|
$
|
6,184
|
|
$
|
—
|
|
$
|
32,840
|
|
$
|
41,308
|
|
$
|
67,821
|
|
$
|
—
|
|
$
|
141,969
|
|
$
|
148,153
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
(unaudited)
|
|
|
February 27,
2021
|
|
November 28,
2020
|
|
February 29,
2020
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,352,984
|
|
|
$
|
1,462,612
|
|
|
$
|
1,000,340
|
|
Short term investment securities
|
—
|
|
|
—
|
|
|
385,642
|
|
Merchandise inventories
|
1,671,909
|
|
|
1,780,891
|
|
|
2,093,869
|
|
Prepaid expenses and other current assets
|
595,152
|
|
|
196,487
|
|
|
248,342
|
|
Assets held-for-sale
|
—
|
|
|
524,551
|
|
|
98,092
|
|
Total
current assets
|
3,620,045
|
|
|
3,964,541
|
|
|
3,826,285
|
|
Long term investment
securities
|
19,545
|
|
|
19,847
|
|
|
20,380
|
|
Property and
equipment, net
|
918,418
|
|
|
905,251
|
|
|
1,430,604
|
|
Operating lease
assets
|
1,587,101
|
|
|
1,615,969
|
|
|
2,006,966
|
|
Other
assets
|
311,821
|
|
|
486,002
|
|
|
506,280
|
|
Total
Assets
|
$
|
6,456,930
|
|
|
$
|
6,991,610
|
|
|
$
|
7,790,515
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
986,045
|
|
|
$
|
865,418
|
|
|
$
|
944,194
|
|
Accrued expenses and other current liabilities
|
636,329
|
|
|
698,827
|
|
|
675,776
|
|
Merchandise credit and gift card liabilities
|
312,486
|
|
|
304,530
|
|
|
340,407
|
|
Current operating lease liabilities
|
360,061
|
|
|
390,875
|
|
|
463,005
|
|
Liabilities related to assets held-for-sale
|
—
|
|
|
448,805
|
|
|
43,144
|
|
Total
current liabilities
|
2,294,921
|
|
|
2,708,455
|
|
|
2,466,526
|
|
|
|
|
|
|
|
Other
liabilities
|
82,279
|
|
|
123,067
|
|
|
204,926
|
|
Operating lease
liabilities
|
1,509,767
|
|
|
1,531,830
|
|
|
1,818,783
|
|
Income taxes
payable
|
102,664
|
|
|
38,034
|
|
|
46,945
|
|
Long term
debt
|
1,190,363
|
|
|
1,190,265
|
|
|
1,488,400
|
|
Total
liabilities
|
5,179,994
|
|
|
5,591,651
|
|
|
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 343,241, 343,484 and
343,683 shares, respectively; outstanding 109,621, 121,215 and
126,528 shares, respectively
|
3,432
|
|
|
3,434
|
|
|
3,436
|
|
Additional paid-in
capital
|
2,152,135
|
|
|
2,058,358
|
|
|
2,167,337
|
|
Retained
earnings
|
10,225,253
|
|
|
10,215,743
|
|
|
10,374,826
|
|
Treasury stock, at
cost; 233,620, 222,269 and 217,155 shares, respectively
|
(11,048,284)
|
|
|
(10,812,841)
|
|
|
(10,715,755)
|
|
Accumulated other
comprehensive loss
|
(55,600)
|
|
|
(64,735)
|
|
|
(64,909)
|
|
Total shareholders'
equity
|
1,276,936
|
|
|
1,399,959
|
|
|
1,764,935
|
|
Total liabilities and
shareholders' equity
|
$
|
6,456,930
|
|
|
$
|
6,991,610
|
|
|
$
|
7,790,515
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
February 27,
2021
|
|
February 29,
2020
|
|
February 27,
2021
|
|
February 29,
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
9,059
|
|
|
$
|
(65,414)
|
|
|
$
|
(150,773)
|
|
|
$
|
(613,816)
|
|
Adjustments to reconcile net earnings (loss) to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
78,328
|
|
|
87,390
|
|
|
340,912
|
|
|
342,511
|
|
Loss on
sale-leaseback transaction
|
—
|
|
|
27,357
|
|
|
—
|
|
|
27,357
|
|
Goodwill
and other impairments
|
8,883
|
|
|
67,821
|
|
|
127,341
|
|
|
509,226
|
|
Gain on
debt extinguishment
|
—
|
|
|
—
|
|
|
(77,038)
|
|
|
—
|
|
Loss on
sale of businesses, including impairment of assets held
for
sale
|
22,705
|
|
|
—
|
|
|
1,062
|
|
|
—
|
|
Stock-based compensation
|
8,530
|
|
|
9,564
|
|
|
31,594
|
|
|
45,676
|
|
Deferred
income taxes
|
192,095
|
|
|
(59,917)
|
|
|
148,741
|
|
|
(145,543)
|
|
Other
|
(524)
|
|
|
225
|
|
|
(396)
|
|
|
(3,446)
|
|
Decrease
(increase) in assets:
|
|
|
|
|
|
|
|
Merchandise inventories
|
156,182
|
|
|
430,547
|
|
|
64,947
|
|
|
506,334
|
|
Trading investment securities
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
Other current assets
|
(385,492)
|
|
|
108,674
|
|
|
(387,172)
|
|
|
(4,781)
|
|
Other assets
|
1,196
|
|
|
4,247
|
|
|
1,519
|
|
|
218
|
|
Increase
(decrease) increase in liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
70,843
|
|
|
(270,194)
|
|
|
168,556
|
|
|
(124,206)
|
|
Accrued expenses and other current liabilities
|
(82,217)
|
|
|
(7,967)
|
|
|
15,538
|
|
|
61,864
|
|
Merchandise credit and gift card liabilities
|
9,089
|
|
|
2,971
|
|
|
(12,110)
|
|
|
1,154
|
|
Income taxes payable
|
63,834
|
|
|
5,089
|
|
|
54,958
|
|
|
(22,783)
|
|
Operating lease assets and liabilities, net
|
(43,621)
|
|
|
(17,139)
|
|
|
(32,813)
|
|
|
(2,899)
|
|
Other liabilities
|
(33,184)
|
|
|
10,539
|
|
|
(26,758)
|
|
|
14,054
|
|
Net cash provided by operating activities
|
75,706
|
|
|
333,814
|
|
|
268,108
|
|
|
590,941
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchase of held-to-maturity investment securities
|
—
|
|
|
(386,500)
|
|
|
—
|
|
|
(443,500)
|
|
Redemption of held-to-maturity investment securities
|
—
|
|
|
—
|
|
|
386,500
|
|
|
545,000
|
|
Capital expenditures
|
(65,761)
|
|
|
(89,049)
|
|
|
(183,077)
|
|
|
(277,401)
|
|
Proceeds from sale-leaseback transaction
|
—
|
|
|
267,277
|
|
|
—
|
|
|
267,277
|
|
Net proceeds from sale of businesses
|
51,748
|
|
|
—
|
|
|
534,457
|
|
|
—
|
|
Net cash (used in) provided by investing activities
|
(14,013)
|
|
|
(208,272)
|
|
|
737,880
|
|
|
91,376
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Borrowing of long-term
debt
|
—
|
|
|
—
|
|
|
236,400
|
|
|
—
|
|
Repayments of
long-term debt
|
—
|
|
|
—
|
|
|
(457,827)
|
|
|
—
|
|
Repurchase of common
stock, including fees
|
(102,828)
|
|
|
(578)
|
|
|
(332,529)
|
|
|
(99,710)
|
|
Prepayment under share
repurchase agreement
|
(47,550)
|
|
|
—
|
|
|
(47,550)
|
|
|
—
|
|
Payment of
dividends
|
(45)
|
|
|
(21,142)
|
|
|
(23,108)
|
|
|
(85,482)
|
|
Payment of deferred
financing fees
|
—
|
|
|
—
|
|
|
(7,690)
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
—
|
|
|
2,346
|
|
|
—
|
|
|
2,346
|
|
Net cash used in financing activities
|
(150,423)
|
|
|
(19,374)
|
|
|
(632,304)
|
|
|
(182,846)
|
|
Effect of exchange rate changes on cash, cash equivalents
and
restricted
cash
|
1,747
|
|
|
(1,090)
|
|
|
5,075
|
|
|
(977)
|
|
Net (decrease) increase in cash, cash equivalents and restricted
cash,
including cash
balances classified as assets held-for-sale
|
(86,983)
|
|
|
105,078
|
|
|
378,759
|
|
|
498,494
|
|
Change in cash
balances classified as held-for-sale
|
—
|
|
|
(4,815)
|
|
|
4,815
|
|
|
(4,815)
|
|
Net (decrease) increase in cash, cash equivalents and restricted
cash
|
(86,983)
|
|
|
100,263
|
|
|
383,574
|
|
|
493,679
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
Beginning of period
|
1,494,207
|
|
|
923,387
|
|
|
1,023,650
|
|
|
529,971
|
|
End of period
|
$
|
1,407,224
|
|
|
$
|
1,023,650
|
|
|
$
|
1,407,224
|
|
|
$
|
1,023,650
|
|
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SOURCE Bed Bath & Beyond Inc.