UNION,
N.J., Jan. 10, 2023 /PRNewswire/ -- Bed Bath
& Beyond Inc. (Nasdaq: BBBY) today reported financial results
for the third quarter of fiscal 2022 ended November 26,
2022.
Sue Gove, President & CEO of
Bed Bath & Beyond Inc. said, "At the beginning of the third
quarter, we initiated a turnaround plan anchored on serving our
loyal customers, following a period when our merchandise and
strategy had veered away from their preferences. Although we moved
quickly and effectively to change the assortment and other
merchandising and marketing strategies, inventory was constrained
and we did not achieve our goals. We will continue to rebalance our
assortment towards National Brands and refine our Owned Brands mix
to reflect the deep understanding of our customer, along with the
selection and value only we can offer in the Home and Baby
markets. We are actively pursuing higher in-stock levels to
meet proven demand."
Ms. Gove continued, "We are implementing our plan expeditiously
while managing our financial position in a changing
landscape. We are delivering on our aggressive second half
commitment of $250 million in
SG&A optimization, or $500
million in annualized savings. We are also on track to
achieve the 150 store closures that we previously outlined, which
will further enable us to allocate resources according to customer
demand. Our organization is more streamlined and we have
adopted a more focused infrastructure that reflects our current
business."
"For decades, Bed Bath & Beyond has set the pace across the
sector and we have commanded our position in retail through many
different economic cycles and alongside a continuously evolving
customer. We believe our concrete advantages in defining
categories, offering broad and curated selections, and delivering
for customers are compelling reasons why we will continue to
command a formidable presence in the Home and Baby categories into
the future."
"As we shared last week, we continue to work with advisors as we
consider all strategic alternatives to accomplish our near- and
long-term goals. We have a team, internally and externally,
with proven experience helping companies successfully navigate
complex situations and become stronger. Multiple paths are
being explored and we are determining our next steps thoroughly,
and in a timely manner. We are committed to updating all
stakeholders on our plans as they develop and finalize –
particularly our employees and partners, who are the essential
catalysts of our business and the cornerstones of our future."
Ms. Gove concluded, "We want our customers to know that we hear
them and are charging ahead every day to meet their needs.
Our entire organization is laser-focused on maximizing the value of
our company by reconnecting with our customers and positioning Bed
Bath & Beyond, buybuy BABY, and Harmon for long-term
success."
Q3 Highlights
- Net Sales of $1.259 billion
declined (33)%, predominantly driven by a Comparable1
Sales decline of (32)%
-
- Bed Bath & Beyond banner Comparable1 Sales
decline of (34)%; buybuy BABY Comparable1 Sales decline
in the low-twenties percent range
- Sales performance driven by lower in-stock position of
approximately 70% and decrease in customer traffic
- Welcome Rewards membership surpasses 16 million, increasing
from approximately 6 million in the second quarter of fiscal 2022,
reflecting predominantly new members
- GAAP Gross Margin of 22.1%; Adjusted2 Gross Margin
of 22.8% reflecting the continuation of incremental clearance
activity related to discontinued Owned Brands merchandise and
increased promotional activity
-
- Double-digit decrease in Owned Brands inventory penetration
versus peak levels during the first half of fiscal 2022
- SG&A Expense of $583.6
million significantly below $698.0
million last year, driven by successful execution of
aggressive cost reduction initiatives to right-size expense
structure as previously committed
-
- On track to deliver approximately $250
million of SG&A savings versus last year for the second
half of fiscal 2022, or $500 million
on an annualized basis
- On track to complete approximately 150 store closures by the
end of fiscal 2022
- Initiated incremental cost reductions of approximately
$80 million to $100 million across corporate, including overhead
expense and headcount, to align with current business
- Additional $80 million to
$100 million savings opportunity
identified across supply chain that will also improve cost to serve
and time to deliver for our customers
- Net Loss for the quarter included $100.7
million of non-cash impairment charges related to certain
store-level assets
- Cash Flow from Operations of approximately $(307.6) million, Liquidity of approximately
$0.5 billion, including the Company's
ABL facility and FILO loan less borrowings of $550.0 million
Fiscal 2022 Third Quarter Results (ending
November 26, 2022)
Net sales of $1.259 billion
declined (33)%, reflecting a Comparable1 Sales
decline of (32)%.
- By channel, Comparable1 Sales declined (31)% in
Stores and (33)% in Digital versus the fiscal 2021 third
quarter.
- By banner, Comparable1 Sales decreased (34)% at Bed
Bath & Beyond and declined in the low-twenties at BABY compared
to the prior year period.
GAAP Gross Margin of 22.1% and Adjusted2 Gross Margin
of 22.8% included the negative impact of Owned Brands clearance
activity related to the rebalancing of the Company's merchandise
assortment towards National Brands, as well as incremental
promotional activity.
SG&A Expense remain at lower levels compared to the prior
year period, primarily due to the implementation of cost
optimization plans to align with business performance. The
Company expects to deliver its previously announced SG&A
Expense reduction target of approximately $250.0 million versus last year for the second
half of fiscal 2022, or approximately $500
million on an annualized basis.
Adjusted2 EBITDA for the period was ($225.0) million reflecting lower Net Sales and
lower Adjusted2 Gross Margin.
Net Loss per diluted share of $(4.33) for the quarter
reflected $0.68 of special items
for the quarter including $100.7 million of non-cash impairment
charges primarily related to certain store-level assets. Excluding
special items, Adjusted2 Net Loss per diluted
share was $(3.65).
For the fiscal 2022 third quarter, the Company reported
operating cash flow of approximately $(307.6) million.
Cash, cash equivalents, restricted cash and investments totaled
approximately $0.2 billion and Total
Liquidity3 was approximately $0.5 billion as
of the fiscal 2022 third quarter, including the Company's
$1.130 billion asset-backed
revolving credit facility and FILO facility less borrowings of
$550.0 million and approximately
$186.2 million in letters of
credit.
Fiscal 2022 Third Quarter Conference Call
Bed Bath & Beyond Inc.'s fiscal 2022 third quarter
conference call will be held today at 8:15am
EDT and may be accessed by dialing 1-404-400-0571, or if
international, 1-866-374-5140, using conference ID number
32641301#. An audio webcast of the conference call, along with the
earnings press release 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.
(1) Comparable Sales reflects the year-over-year
change in sales from the Company's retail channels, including
stores and digital, that have been operating for twelve full months
following the opening period (typically six to eight weeks).
Comparable Sales excludes the impact of the Company's store network
optimization program.
(2) Adjusted items refer to comparable sales as
well as financial measures that are derived from measures
calculated in accordance with GAAP, which have been adjusted to
exclude certain items. Adjusted Gross Margin, Adjusted SG&A,
Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EPS - Diluted
are non-GAAP financial measures. For more information about
non-GAAP financial measures, see "Non-GAAP Information" below.
(3) Total Liquidity includes cash & investments
and availability under the Company's asset-based revolving credit
facility.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of merchandise in
the Home, Baby, Beauty and Wellness markets. Additionally,
the Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
The Company operates websites at bedbathandbeyond.com,
bedbathandbeyond.ca, buybuybaby.com, buybuybaby.ca,
harmondiscount.com, and facevalues.com. As of November 26, 2022, the Company had a total of 949
stores, including 762 Bed Bath & Beyond stores in all 50
states, the District of Columbia,
Puerto Rico and Canada, 137 buybuy BABY stores and 50 stores
under the names Harmon, Harmon Face Values or Face Values. During
the fiscal 2022 third quarter, the Company closed 6 Bed Bath &
Beyond stores. The joint venture to which the Company is a partner
operates 12 stores in Mexico under
the name Bed Bath & Beyond.
Non-GAAP Information
This press release contains certain non-GAAP information,
including adjusted earnings before interest, income taxes,
depreciation and amortization ("EBITDA"), adjusted EBITDA margin,
adjusted gross margin, adjusted SG&A, and adjusted net earnings
per diluted share. Non-GAAP information is intended to provide
visibility into the Company's core operations and excludes special
items, including non-cash impairment charges related to certain
store-level assets and tradenames, loss on sale of businesses, gain
on the extinguishment of debt, charges recorded in connection with
the restructuring and transformation initiatives, which includes
accelerated markdowns and inventory reserves related to the planned
assortment transition to Owned Brands and costs associated with
store closures related to the Company's fleet optimization and the
income tax impact of these items. The Company's definition and
calculation of non-GAAP measures may differ from that of other
companies. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the Company's reported GAAP
financial results. For a reconciliation to the most directly
comparable US GAAP measures and certain information relating to the
Company's use of non-GAAP financial measures, see "Non-GAAP
Financial Measures" below.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21 E of the Securities Exchange Act of 1934,
as amended, including, but not limited to, our progress and
anticipated progress towards our long-term objectives and our
turnaround plan, as well as more generally the status of our future
liquidity and financial condition and our outlook for our 2022
fiscal fourth quarter and 2022 fiscal year. Many of these
forward-looking statements can be identified by use of words such
as "may," "will," "expect," "anticipate," "approximate,"
"estimate," "assume," "continue," "model," "project," "plan,"
"goal," "preliminary," and similar words and phrases, although the
absence of those words does not necessarily mean that statements
are not forward-looking. Our actual results and future financial
condition may differ materially from those expressed in any such
forward-looking statements as a result of many factors. Such
factors include, without limitation: our ability to deliver and
execute on our turnaround plan; the result of the evaluation of
strategic alternatives, including restructuring or refinancing of
our debt, seeking additional debt or equity capital, reducing or
delaying our business activities and strategic initiatives, or
selling assets, other strategic transactions and/or other measures,
including obtaining relief under the U.S. Bankruptcy Code, and the
terms, value and timing of any transaction resulting from that
process; our ability to finalize or fully execute actions and steps
that would be probable of mitigating the existence of "substantial
doubt" regarding our ability to continue as a going concern; our
ability to increase cash flow to support our operating activities
and fund our obligations and working capital needs; general
economic conditions including supply chain disruptions, labor
shortages, wage pressures, rising inflation and the ongoing
military conflict between Russia
and Ukraine; challenges related to
our relationships with our suppliers, the failure of our suppliers
to supply us with the necessary volume and types of products; the
impact of cost-savings measures; our inability to generate
sufficient cash to service all of our indebtedness or our ability
to access additional capital; changes to our credit rating or the
terms on which vendors or others will provide us credit; the impact
of strategic changes, including the reaction of customers to such
changes; a challenging overall macroeconomic environment and a
highly competitive retailing environment; changing consumer
preferences, spending habits and demographics; demographics and
other macroeconomic factors that may impact the level of spending
for the types of merchandise sold by us; challenges in executing
our omni-channel and transformation strategy, including our ability
to establish and profitably maintain the appropriate mix of digital
and physical presence in the markets we serve; our ability to
successfully execute our store fleet optimization strategies,
including our ability to achieve anticipated cost savings and to
not exceed anticipated costs; our ability to execute on any
strategic transactions and realize the benefits of any,
partnerships, investments or divestitures; disruptions to our
information technology systems, including but not limited to
security breaches of systems protecting consumer and employee
information or other types of cybercrimes or cybersecurity attacks;
damage to our reputation in any aspect of our operations; the cost
of labor, merchandise, logistical costs and other costs and
expenses; potential supply chain disruption due to trade
restrictions or otherwise, and other factors such as natural
disasters, pandemics, including the COVID-19 pandemic, political
instability, labor disturbances, product recalls, financial or
operational instability of suppliers or carriers, and other items;
inflation and the related increases in costs of materials, labor
and other costs; inefficient management of relationships and
dependencies on third-party service providers; our ability to
attract and retain qualified employees in all areas of the
organization; unusual weather patterns and natural disasters,
including the impact of climate change; uncertainty and disruptions
in financial markets; volatility in the price of our common stock
and its effect, and the effect of other factors, on our capital
allocation strategy; changes to statutory, regulatory and other
legal requirements or deemed noncompliance with such requirements;
changes to accounting rules, regulations and tax laws, or new
interpretations of existing accounting standards or tax laws; new,
or developments in existing, litigation, claims or assessments; and
a failure of our business partners to adhere to appropriate laws,
regulations or standards. Except as required by law, we do not
undertake any obligation to update our forward-looking
statements.
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Statements of Operations
(in thousands,
except per share data)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
November 26,
2022
|
|
November 27,
2021
|
|
November 26,
2022
|
|
November 27,
2021
|
Net sales
|
$
1,259,112
|
|
$ 1,877,874
|
|
$
4,159,548
|
|
$ 5,816,382
|
|
|
|
|
|
|
|
|
Cost of
sales
|
980,249
|
|
1,208,954
|
|
3,133,111
|
|
3,912,699
|
|
|
|
|
|
|
|
|
Gross profit
|
278,863
|
|
668,920
|
|
1,026,437
|
|
1,903,683
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
583,588
|
|
697,953
|
|
1,855,973
|
|
2,009,687
|
|
|
|
|
|
|
|
|
Impairments
|
100,724
|
|
1,759
|
|
182,941
|
|
18,472
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
45,484
|
|
41,219
|
|
123,816
|
|
99,400
|
|
|
|
|
|
|
|
|
Loss on sale of
businesses
|
—
|
|
14,100
|
|
—
|
|
18,221
|
|
|
|
|
|
|
|
|
Operating loss
|
(450,933)
|
|
(86,111)
|
|
(1,136,293)
|
|
(242,097)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
33,527
|
|
15,772
|
|
68,578
|
|
47,893
|
|
|
|
|
|
|
|
|
(Gain) loss on
extinguishment of debt
|
(94,380)
|
|
—
|
|
(94,380)
|
|
376
|
|
|
|
|
|
|
|
|
Loss
before provision for income taxes
|
(390,080)
|
|
(101,883)
|
|
(1,110,491)
|
|
(290,366)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
2,886
|
|
174,546
|
|
6,300
|
|
110,152
|
|
|
|
|
|
|
|
|
Net loss
|
$
(392,966)
|
|
$
(276,429)
|
|
$
(1,116,791)
|
|
$
(400,518)
|
|
|
|
|
|
|
|
|
Net loss per share -
Basic
|
$
(4.33)
|
|
$
(2.78)
|
|
$
(13.40)
|
|
$
(3.90)
|
Net loss per share -
Diluted
|
$
(4.33)
|
|
$
(2.78)
|
|
$
(13.40)
|
|
$
(3.90)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - Basic
|
90,708
|
|
99,591
|
|
83,342
|
|
102,772
|
Weighted average shares
outstanding - Diluted
|
90,708
|
|
99,591
|
|
83,342
|
|
102,772
|
Non-GAAP Financial Measures
The following table reconciles non-GAAP financial measures
presented in this press release or that may be presented on the
Company's third quarter conference call with analysts and
investors. The Company believes that these non-GAAP financial
measures provide management, analysts, investors and other users of
the Company's financial information with meaningful supplemental
information regarding the performance of the Company's business.
These non-GAAP financial measures should not be considered superior
to, but in addition to other financial measures prepared by the
Company in accordance with GAAP, including comparisons of
year-to-year results. The Company's method of determining these
non-GAAP financial measures may be different from other companies'
methods and, therefore, may not be comparable to those used by
other companies. As such, the Company does not recommend the sole
use of these non-GAAP measure to assess its financial and earnings
performance. For reasons noted above, the Company is presenting
certain non-GAAP financial measures for its fiscal 2022
third quarter. In order for investors to be able to more
readily compare the Company's performance across periods, the
Company has included comparable reconciliations for the 2021 period
in the reconciliation tables below. The Company is not providing a
reconciliation of its guidance with respect to Adjusted EBITDA and
Adjusted SG&A 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
November 26, 2022
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale of
Businesses
|
|
Gain on
extinguishment
of debt
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairments
charges
|
|
Total income
tax impact
|
|
Total
Impact
|
|
Adjusted
|
Gross Profit
|
|
$ 278,863
|
|
$
—
|
|
$
—
|
|
$
8,558
|
|
$
—
|
|
$
—
|
|
$
8,558
|
|
$
287,421
|
Gross
margin
|
|
22.1 %
|
|
— %
|
|
— %
|
|
0.7 %
|
|
— %
|
|
— %
|
|
0.7 %
|
|
22.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
|
45,484
|
|
—
|
|
—
|
|
(45,484)
|
|
—
|
|
—
|
|
(45,484)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before
provision (benefit) for income taxes
|
|
(390,080)
|
|
—
|
|
(94,380)
|
|
54,042
|
|
100,724
|
|
—
|
|
60,386
|
|
(329,694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
2,886
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,352)
|
|
(1,352)
|
|
1,534
|
Effective tax
rate
|
|
(0.7) %
|
|
|
|
|
|
|
|
|
|
0.2 %
|
|
0.2 %
|
|
(0.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(392,966)
|
|
$
—
|
|
$
(94,380)
|
|
$
54,042
|
|
$
100,724
|
|
$
1,352
|
|
$
61,738
|
|
$
(331,228)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted
|
|
$
(4.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(3.65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding- Basic
|
|
90,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,708
|
Weighted average shares
outstanding- Diluted
|
|
90,708
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
90,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income (loss) to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(392,966)
|
|
$
—
|
|
$
(94,380)
|
|
$
54,042
|
|
$
100,724
|
|
$
1,352
|
|
$
61,738
|
|
$
(331,228)
|
Depreciation and
amortization
|
|
88,925
|
|
—
|
|
—
|
|
(17,747)
|
|
—
|
|
—
|
|
(17,747)
|
|
71,178
|
Gain on extinguishment
of debt
|
|
(94,380)
|
|
—
|
|
94,380
|
|
—
|
|
—
|
|
—
|
|
94,380
|
|
—
|
Interest
expense
|
|
33,527
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
33,527
|
Provision for income
taxes
|
|
2,886
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,352)
|
|
(1,352)
|
|
1,534
|
EBITDA
|
|
$
(362,008)
|
|
$
—
|
|
$
—
|
|
$
36,295
|
|
$
100,724
|
|
$
—
|
|
$
137,019
|
|
$
(224,989)
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
November 27, 2021
|
|
|
|
|
Excluding
|
|
|
|
|
Reported
|
|
Loss on Sale of
Businesses
|
|
Gain on
extinguishment
of debt
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairment
charges
|
|
Total income
tax impact
|
|
Total
Impact
|
|
Adjusted
|
Gross Profit
|
|
$ 668,920
|
|
$
—
|
|
$
—
|
|
$
6,111
|
|
$
—
|
|
$
—
|
|
$
6,111
|
|
$
675,031
|
Gross
margin
|
|
35.6 %
|
|
— %
|
|
— %
|
|
0.3 %
|
|
— %
|
|
— %
|
|
0.3 %
|
|
35.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
|
41,219
|
|
—
|
|
—
|
|
(41,219)
|
|
—
|
|
—
|
|
(41,219)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before
(benefit) provision for income taxes
|
|
(101,883)
|
|
14,100
|
|
—
|
|
47,330
|
|
1,759
|
|
—
|
|
63,189
|
|
(38,694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for
income taxes
|
|
174,546
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(188,674)
|
|
(188,674)
|
|
(14,128)
|
Effective tax
rate
|
|
(171.3) %
|
|
|
|
|
|
|
|
|
|
207.8 %
|
|
207.8 %
|
|
36.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(276,429)
|
|
$
14,100
|
|
$
—
|
|
$
47,330
|
|
$
1,759
|
|
$
188,674
|
|
$
251,863
|
|
$ (24,566)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted
|
|
$
(2.78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
(0.25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding- Basic
|
|
99,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99,591
|
Weighted average shares
outstanding- Diluted
|
|
99,591
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
99,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net (Loss) Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
(276,429)
|
|
$
14,100
|
|
$
—
|
|
$
47,330
|
|
$
1,759
|
|
$
188,674
|
|
$
251,863
|
|
$ (24,566)
|
Depreciation and
amortization
|
|
76,352
|
|
—
|
|
—
|
|
(12,792)
|
|
—
|
|
—
|
|
(12,792)
|
|
63,560
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Interest
expense
|
|
15,772
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,772
|
(Benefit) provision for
income taxes
|
|
174,546
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(188,674)
|
|
(188,674)
|
|
(14,128)
|
EBITDA
|
|
$
(9,759)
|
|
$
14,100
|
|
$
—
|
|
$
34,538
|
|
$
1,759
|
|
$
—
|
|
$
50,397
|
|
$
40,638
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
November 26,
2022
|
|
February 26,
2022
|
|
November 27,
2021
|
|
(unaudited)
|
|
|
|
(unaudited)
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
$
153,521
|
|
$
439,496
|
|
$
509,054
|
Merchandise inventories
|
1,436,150
|
|
1,725,410
|
|
1,911,859
|
Prepaid expenses and other current assets
|
288,503
|
|
198,248
|
|
526,540
|
Total
current assets
|
1,878,174
|
|
2,363,154
|
|
2,947,453
|
Long-term investment
securities
|
21,451
|
|
19,212
|
|
19,237
|
Property and equipment,
net
|
1,050,526
|
|
1,027,387
|
|
923,977
|
Operating lease
assets
|
1,321,665
|
|
1,562,857
|
|
1,603,536
|
Other assets
|
129,610
|
|
157,962
|
|
162,435
|
Total
assets
|
$
4,401,426
|
|
$
5,130,572
|
|
$
5,656,638
|
|
|
|
|
|
|
Liabilities and
Shareholders' (Deficit) Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
697,889
|
|
$
872,445
|
|
$
908,070
|
Accrued expenses and other current liabilities
|
356,482
|
|
529,371
|
|
649,204
|
Merchandise credit and gift card liabilities
|
295,197
|
|
326,465
|
|
313,968
|
Current operating lease liabilities
|
313,368
|
|
346,506
|
|
347,721
|
Total
current liabilities
|
1,662,936
|
|
2,074,787
|
|
2,218,963
|
Other
liabilities
|
119,907
|
|
102,438
|
|
69,972
|
Operating lease
liabilities
|
1,388,484
|
|
1,508,002
|
|
1,532,873
|
Income taxes
payable
|
93,386
|
|
91,424
|
|
101,535
|
Long-term
debt
|
1,935,356
|
|
1,179,776
|
|
1,179,682
|
Total
liabilities
|
5,200,069
|
|
4,956,427
|
|
5,103,025
|
|
|
|
|
|
|
Shareholders' (deficit)
equity:
|
|
|
|
|
|
Preferred stock -
$0.01 par value; authorized - 1,000 shares; no shares issued or
outstanding
|
—
|
|
—
|
|
—
|
Common stock - $0.01
par value; authorized - 900,000 shares; issued 382,339, 344,146 and
344,140, respectively; outstanding 117,322, 81,979 and 96,338
shares, respectively
|
3,823
|
|
3,441
|
|
3,441
|
Additional paid-in
capital
|
2,427,739
|
|
2,235,894
|
|
2,227,469
|
Retained
earnings
|
8,549,536
|
|
9,666,091
|
|
9,825,156
|
Treasury stock, at
cost; 265,017, 262,167 and 247,802 shares, respectively
|
(11,731,194)
|
|
(11,685,267)
|
|
(11,454,757)
|
Accumulated other
comprehensive loss
|
(48,547)
|
|
(46,014)
|
|
(47,696)
|
|
|
|
|
|
|
Total
shareholders' (deficit) equity
|
(798,643)
|
|
174,145
|
|
553,613
|
|
|
|
|
|
|
Total
liabilities and shareholders' (deficit) equity
|
$
4,401,426
|
|
$
5,130,572
|
|
$
5,656,638
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
November 26,
2022
|
|
November 27,
2021
|
|
November 26,
2022
|
|
November 27,
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net
loss
|
$
(392,966)
|
|
$
(276,429)
|
|
$
(1,116,791)
|
|
$
(400,518)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
88,925
|
|
76,352
|
|
231,019
|
|
214,742
|
Impairments
|
100,724
|
|
1,759
|
|
182,941
|
|
18,472
|
Stock-based compensation
|
2,312
|
|
8,882
|
|
18,746
|
|
26,875
|
Deferred income taxes
|
—
|
|
175,375
|
|
—
|
|
126,437
|
Loss
on sale of businesses
|
—
|
|
14,100
|
|
—
|
|
18,221
|
(Gain) loss on debt extinguishment
|
(94,380)
|
|
—
|
|
(94,380)
|
|
376
|
Other
|
2,544
|
|
(2,143)
|
|
3,511
|
|
(7,516)
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
Merchandise inventories
|
138,255
|
|
(322,818)
|
|
284,984
|
|
(240,522)
|
Other
current assets
|
(34,923)
|
|
(21,621)
|
|
(34,512)
|
|
60,582
|
Other
assets
|
6,141
|
|
143
|
|
6,059
|
|
(82)
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
(47,391)
|
|
(81,898)
|
|
(128,792)
|
|
(72,408)
|
Accrued
expenses and other current liabilities
|
(19,183)
|
|
137,045
|
|
(156,075)
|
|
20,385
|
Merchandise credit and gift card liabilities
|
(32,651)
|
|
3,094
|
|
(30,724)
|
|
1,551
|
Income
taxes payable
|
1,507
|
|
(670)
|
|
2,300
|
|
(1,160)
|
Operating
lease assets and liabilities, net
|
(24,898)
|
|
(14,963)
|
|
(52,657)
|
|
(16,707)
|
Other
liabilities
|
(1,604)
|
|
(6,986)
|
|
(5,642)
|
|
(13,468)
|
Net cash used in
operating activities
|
(307,588)
|
|
(310,778)
|
|
(890,013)
|
|
(264,740)
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of held-to-maturity investment securities
|
—
|
|
—
|
|
—
|
|
(29,997)
|
Redemption of held-to-maturity investment securities
|
—
|
|
30,000
|
|
—
|
|
30,000
|
Net
proceeds from sale of property
|
—
|
|
—
|
|
—
|
|
5,000
|
Capital expenditures
|
(95,594)
|
|
(82,995)
|
|
(322,094)
|
|
(232,470)
|
Net cash used in
investing activities
|
(95,594)
|
|
(52,995)
|
|
(322,094)
|
|
(227,467)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Borrowing of long-term debt
|
375,000
|
|
—
|
|
925,000
|
|
—
|
Repayments of long-term debt
|
—
|
|
—
|
|
—
|
|
(11,355)
|
Repayments of finance leases
|
(1,040)
|
|
—
|
|
(1,849)
|
|
—
|
Repurchase of common stock, including fees
|
(2,680)
|
|
(118,912)
|
|
(45,927)
|
|
(358,923)
|
Issuance of common stock and At-the-Market offering, net of
offering costs
|
118,975
|
|
—
|
|
118,975
|
|
—
|
Payment of dividends
|
(13)
|
|
(127)
|
|
(329)
|
|
(767)
|
Payment of Exchange Offer costs
|
(7,992)
|
|
—
|
|
(7,992)
|
|
—
|
Payment of deferred financing fees
|
(19,479)
|
|
—
|
|
(19,479)
|
|
(3,443)
|
Net cash
provided by (used in) financing activities
|
462,771
|
|
(119,039)
|
|
968,399
|
|
(374,488)
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
(646)
|
|
(1,577)
|
|
(1,517)
|
|
(88)
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
58,943
|
|
(484,389)
|
|
(245,225)
|
|
(866,783)
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
Beginning of
period
|
166,716
|
|
1,024,830
|
|
470,884
|
|
1,407,224
|
End of
period
|
$
225,659
|
|
$
540,441
|
|
$
225,659
|
|
$
540,441
|
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SOURCE Bed Bath & Beyond