New York
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0-20214
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11-2250488
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits:
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99.1
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Press Release issued by Bed Bath & Beyond Inc. on September 23, 2014.
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BED BATH & BEYOND INC.
(Registrant)
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Date: September 23, 2014
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By: /s/ Susan E. Lattmann
Susan E. Lattmann
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
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Exhibit No.
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Description
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99.1
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Press Release issued by Bed Bath & Beyond Inc. on September 23, 2014.
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·
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Net Earnings per Diluted Share of $1.17
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·
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Quarterly Net Sales Increase by Approximately 4.3%
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·
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Quarterly Comparable Sales Increase by Approximately 3.4%
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·
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Modeling Fiscal Third Quarter 2014 Net Earnings per Diluted Share of Approximately $1.17 to $1.21
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·
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Modeling Fiscal Fourth Quarter 2014 Net Earnings per Diluted Share of Approximately $1.78 to $1.83
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·
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Modeling Fiscal Full Year 2014 Net Earnings per Diluted Share of Approximately $5.00 to $5.08
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Kenneth C. Frankel
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(908) 855-4554
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Susan E. Lattmann
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(908) 855-4120
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BED BATH & BEYOND INC. AND SUBSIDIARIES
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||||||||||||||||
Consolidated Statements of Earnings
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||||||||||||||||
(in thousands, except per share data)
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||||||||||||||||
(unaudited)
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||||||||||||||||
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||||||||||||||||
Three Months Ended
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Six Months Ended
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|||||||||||||||
August 30,
2014 |
August 31,
2013 |
August 30,
2014 |
August 31,
2013 |
|||||||||||||
Net sales
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$ | 2,944,905 | $ | 2,823,672 | $ | 5,601,603 | $ | 5,435,812 | ||||||||
Cost of sales
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1,810,860 | 1,710,188 | 3,436,673 | 3,289,357 | ||||||||||||
Gross profit
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1,134,045 | 1,113,484 | 2,164,930 | 2,146,455 | ||||||||||||
Selling, general and administrative expenses
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765,304 | 723,718 | 1,495,488 | 1,433,588 | ||||||||||||
Operating profit
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368,741 | 389,766 | 669,442 | 712,867 | ||||||||||||
Interest expense, net
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9,528 | 1,675 | 11,622 | 1,900 | ||||||||||||
Earnings before provision for income taxes
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359,213 | 388,091 | 657,820 | 710,967 | ||||||||||||
Provision for income taxes
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135,260 | 138,787 | 246,815 | 259,173 | ||||||||||||
Net earnings
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$ | 223,953 | $ | 249,304 | $ | 411,005 | $ | 451,794 | ||||||||
Net earnings per share - Basic
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$ | 1.18 | $ | 1.18 | $ | 2.11 | $ | 2.11 | ||||||||
Net earnings per share - Diluted
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$ | 1.17 | $ | 1.16 | $ | 2.09 | $ | 2.09 | ||||||||
Weighted average shares outstanding - Basic
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189,625 | 212,134 | 194,622 | 213,792 | ||||||||||||
Weighted average shares outstanding - Diluted
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191,496 | 214,697 | 196,796 | 216,516 |
BED BATH & BEYOND INC. AND SUBSIDIARIES
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||||||||
Consolidated Balance Sheets
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||||||||
(in thousands, unaudited)
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||||||||
August 30,
2014 |
August 31,
2013 |
|||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 1,226,627 | $ | 383,336 | ||||
Short term investment securities
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59,999 | 455,579 | ||||||
Merchandise inventories
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2,758,726 | 2,591,247 | ||||||
Other current assets
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434,416 | 434,299 | ||||||
Total current assets
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4,479,768 | 3,864,461 | ||||||
Long term investment securities
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92,383 | 81,552 | ||||||
Property and equipment, net
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1,576,912 | 1,477,336 | ||||||
Goodwill
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486,279 | 486,279 | ||||||
Other assets
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398,918 | 398,345 | ||||||
$ | 7,034,260 | $ | 6,307,973 | |||||
Liabilities and Shareholders' Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 1,258,568 | $ | 1,033,709 | ||||
Accrued expenses and other current liabilities
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407,178 | 389,689 | ||||||
Merchandise credit and gift card liabilities
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294,658 | 264,281 | ||||||
Current income taxes payable
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46,494 | 11,653 | ||||||
Total current liabilities
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2,006,898 | 1,699,332 | ||||||
Deferred rent and other liabilities
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487,425 | 493,199 | ||||||
Income taxes payable
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100,758 | 88,730 | ||||||
Long term debt
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1,500,000 | - | ||||||
Total liabilities
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4,095,081 | 2,281,261 | ||||||
Total shareholders' equity
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2,939,179 | 4,026,712 | ||||||
$ | 7,034,260 | $ | 6,307,973 |
BED BATH & BEYOND INC. AND SUBSIDIARIES
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||||||||
Consolidated Statements of Cash Flows
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||||||||
(in thousands, unaudited)
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||||||||
Six Months Ended
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||||||||
August 30,
2014 |
August 31,
2013 |
|||||||
Cash Flows from Operating Activities:
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||||||||
Net earnings
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$ | 411,005 | $ | 451,794 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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117,795 | 105,160 | ||||||
Stock-based compensation
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33,760 | 28,439 | ||||||
Tax benefit from stock-based compensation
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6,460 | 12,036 | ||||||
Deferred income taxes
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(26,113 | ) | (13,722 | ) | ||||
Other
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(756 | ) | (666 | ) | ||||
Increase in assets, net of effect of acquisitions:
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||||||||
Merchandise inventories
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(179,770 | ) | (125,033 | ) | ||||
Trading investment securities
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(5,209 | ) | (5,696 | ) | ||||
Other current assets
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(28,918 | ) | (46,977 | ) | ||||
Other assets
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(2,179 | ) | (3,624 | ) | ||||
Increase (decrease) in liabilities, net of effect of acquisitions:
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||||||||
Accounts payable
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195,651 | 135,589 | ||||||
Accrued expenses and other current liabilities
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24,136 | (1,886 | ) | |||||
Merchandise credit and gift card liabilities
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10,442 | 12,800 | ||||||
Income taxes payable
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(5,660 | ) | (57,031 | ) | ||||
Deferred rent and other liabilities
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3,846 | 4,412 | ||||||
Net cash provided by operating activities
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554,490 | 495,595 | ||||||
Cash Flows from Investing Activities:
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||||||||
Purchase of held-to-maturity investment securities
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(84,367 | ) | (652,342 | ) | ||||
Redemption of held-to-maturity investment securities
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513,750 | 646,875 | ||||||
Capital expenditures
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(156,136 | ) | (130,322 | ) | ||||
Net cash provided by (used in) investing activities
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273,247 | (135,789 | ) | |||||
Cash Flows from Financing Activities:
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||||||||
Proceeds from exercise of stock options
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9,704 | 36,230 | ||||||
Proceeds from issuance of senior unsecured notes
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1,500,000 | - | ||||||
Payment of deferred financing costs
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(10,157 | ) | - | |||||
Prepayment under share repurchase agreement
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(165,000 | ) | - | |||||
Excess tax benefit from stock-based compensation
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1,087 | 3,590 | ||||||
Repurchase of common stock, including fees
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(1,303,260 | ) | (581,261 | ) | ||||
Net cash provided by (used in) financing activities
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32,374 | (541,441 | ) | |||||
Net increase (decrease) in cash and cash equivalents
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860,111 | (181,635 | ) | |||||
Cash and cash equivalents:
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||||||||
Beginning of period
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366,516 | 564,971 | ||||||
End of period
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$ | 1,226,627 | $ | 383,336 |