UNION, N.J., Sept. 30,
2021 /PRNewswire/ -- Bed Bath & Beyond Inc. (NASDAQ: BBBY)
today reported financial results for the second quarter of fiscal
2021 ended August 28, 2021.
|
Reported
(GAAP)
|
|
Adjusted2
|
($ in millions,
except per share data)
|
Three months
ended
|
|
Three months
ended
|
|
August 28,
2021
|
August 29,
2020
|
Diff
|
|
August 28,
2021
|
August 29,
2020
|
Diff
|
Net
Sales
|
$1,985
|
$2,688
|
(26)%
|
|
$1,985
|
$2,688
|
(26)%
|
Core1
Sales
|
|
|
|
|
$1,985
|
$2,239
|
(11)%
|
Comparable3 Sales
|
|
|
|
|
|
|
(1)%
|
|
|
|
|
|
|
|
|
Gross
Margin
|
30.3%
|
36.7%
|
-640bps
|
|
34.0%
|
35.9%
|
-190bps
|
SG&A
Margin
|
32.9%
|
31.6%
|
130bps
|
|
33.0%
|
31.5%
|
150bps
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
($73)
|
$218
|
($291)
|
|
$4
|
$62
|
($58)
|
Adjusted2 EBITDA
|
|
|
|
|
$85
|
$199
|
($114)
|
Adjusted2 EBITDA Margin
|
|
|
|
|
4.3%
|
7.4%
|
-310bps
|
EPS -
Diluted
|
($0.72)
|
$1.75
|
($2.47)
|
|
$0.04
|
$0.50
|
($0.46)
|
Mark Tritton, Bed Bath &
Beyond's President and CEO said, "While our results this quarter
were below expectations, we remain confident in our multi-year
transformation. Following solid growth in June, we saw unexpected,
external disruptive forces towards the end of the quarter that
impacted our outcome. In August, the final and largest month
of our second fiscal period, traffic slowed significantly and,
therefore, sales did not materialize as we had anticipated. As
COVID-19 fears re-emerged amid the on-going Delta variant, we
experienced a challenging environment. This was particularly
evident in large, key states such as Florida, Texas and California, which represent a substantial
portion of our sales. Furthermore, unprecedented supply chain
challenges have been impacting the industry pervasively, and we saw
steeper cost inflation escalating by month, especially later in the
quarter, beyond the significant increases that we had already
anticipated. This outpaced our plans to offset these
headwinds. These factors impacted sales and gross margin."
Tritton added, "Encouragingly, we've continued to make progress
against the fundamentals of our three-year transformation
strategy. Our buybuy BABY banner continued to build on its
positive momentum from the past several quarters, growing
double digits due to strength in apparel and travel gear and
increasing market share for the period. We also celebrated the July
re-opening of our Bed Bath & Beyond banner's NYC flagship store in Chelsea as part of our
comprehensive store remodel program, which is exceeding our
expectations. Our higher margin Owned Brands are outperforming our
penetration goals across the overall chain, and even stronger in
remodeled stores. As a group, we continued to leverage our enhanced
digital channel, with significant growth above 2019 at nearly
double the proportion of sales. Operationally, we entered the next
phase of our supply chain modernization through our partnership
with Ryder which is instrumental to our strategy. We are committed
to executing over the short, mid and long term, especially during
these early stages of our multi-year plan."
"Our financial foundation is strong. We generated positive
operating cash flow during the quarter. Our cash balance, coupled
with our recently amended asset-based revolving credit facility,
provides us on-going capital and liquidity strength of $2.0 billion. We are well positioned to continue
our planned investments in our business and pave the way towards a
more profitable future. We have the plan, the team and the
resources to unlock our potential."
Q2 Highlights
- Comparable3 Sales decline of (1)% versus Q2 2020
primarily driven by slower than expected traffic trends in August
across stores and digital
- Bed Bath & Beyond banner Comparable3 Sales
decline of (4)%; buybuy BABY banner growth of high-teens
percentage
- Core1 Sales decline of (11)%, primarily due to the
impact of fleet optimization
- Gross Margin of 30.3% and Adjusted2 Gross Margin of
34.0%
- Adjusted2 Gross Margin reflects 170 bps of higher
merchandise margin versus last year, that was more than offset by
freight cost increases of 360 bps and which were greater than
anticipated, particularly at the end of the quarter
- SG&A expense in-line with expectations
- Adjusted2 EBITDA of $85
million as a result of Net Sales and Adjusted2
Gross Margin performance
- Guidance outlook for 2021 third quarter established
- Revised full fiscal year 2021 guidance outlook to reflect
year-to-date performance
Fiscal 2021 Second Quarter Results (June-July-August)
Comparable3 Sales decreased (1)% compared to the
prior year period. By channel, Comparable3 Sales grew
+3% in Stores and declined (9)% in Digital versus the fiscal 2020
second quarter.
- Comparable3 Sales reflects an estimated 10% impact
from fleet optimization activity when compared to the fiscal 2020
second quarter.
Net sales of $1.98 billion
declined (26)%, reflecting a Core1 banner sales decline
of (11)% compared to the fiscal 2020 second quarter.
Core1 sales performance versus last year were primarily
driven by a decrease in Bed Bath & Beyond banner sales.
- Net sales included a planned reduction of (15)% from non-core
banner divestitures.
Bed Bath & Beyond banner Comparable3 Sales
decreased (4)% compared to the prior year period, excluding the
Company's previously announced store network optimization program,
which began in the second half of the prior fiscal year.
- Comparable3 Sales in key destination categories,
which include Bedding, Bath, Kitchen Food Prep, Indoor Decor and
Home Organization, declined (6)% compared to the 2020 fiscal second
quarter. These categories represented approximately two-thirds of
total Bed Bath & Beyond banner sales in the second
quarter.
The buybuy BABY banner delivered its third consecutive quarter
of positive growth with Comparable Sales increasing in the
high-teens compared to the 2020 fiscal second quarter, driven by
double digit growth in both stores and digital.
Gross Margin was 30.3% for the quarter. Excluding special items
from both periods, Adjusted2 Gross Margin was
34.0%. Results versus last year were primarily impacted by
higher freight costs of 360 basis points due to global supply chain
challenges throughout the quarter, which were 120 basis points
higher than anticipated. These factors offset higher merchandise
margins of 170 basis points related to a more favorable product mix
from the Company's new Owned Brands and vendor negotiations, as
well as a more normalized mix of digital sales compared to last
year.
SG&A expense, on both a GAAP and adjusted basis, decreased
significantly compared to the prior year period, primarily due to
cost reductions including divestitures of non-core assets and lower
rent and occupancy expenses on a more efficient store
base.
Adjusted2 EBITDA for the period was $85 million reflecting lower Comparable Sales and
Adjusted2 Gross Margins.
Net loss per diluted share of ($0.72) includes approximately $0.76 from special items. Excluding special
items, adjusted2 net earnings per diluted share was
$0.04. Special items reflect charges
such as non-cash impairments related to certain store-level assets
and tradenames, loss on sale of businesses, loss on the
extinguishment of debt, charges recorded in connection with the
Company's restructuring and transformation initiatives, and the
income tax impact of these items. Restructuring and transformation
initiative charges include accelerated transitional markdowns
related primarily to the planned assortment transition to Owned
Brands as well as costs associated with the Company's
transformation initiatives, including store closures related to the
Company's fleet optimization, and the income tax impact of these
items.
The Company delivered positive operating cash flow of
$75 million. Free cash
flow5 was essentially neutral as a result of
$76 million of planned capital
expenditures in connection with store remodels, supply chain and
information technology systems.
Inventory was reduced by approximately $80 million compared to the end of fiscal 2020,
primarily related to product transitions associated with the growth
of the Company's Owned Brands, as well as store closures related to
the Company's fleet optimization activity.
The Company returned approximately $100
million in capital to shareholders through share repurchases
in the fiscal 2021 second quarter and $600
million since the program was announced in October 2020.
Cash, cash equivalents, restricted cash and investments totaled
approximately $1.1 billion.
Total Liquidity4 was approximately $2.0 billion, including the Company's asset based
revolving credit facility.
Guidance Outlook
As a reminder, Net Sales throughout fiscal 2021 include the
Company's Core1 businesses and reflects planned
reductions related to the Company's store fleet optimization
activity.
Fiscal 2021 Third Quarter Outlook
The Company expects fiscal 2021 third quarter Net Sales of
between $1.96 billion to $2.0 billion, which only reflects sales from the
Company's Core1 businesses. Net Sales also
includes planned sales reductions from divestitures and the
Company's store fleet optimization program. On a Comparable Sales
basis, the Company expects to be approximately flat compared to the
prior year period.
The Company expects to achieve Adjusted2 Gross Margin
in the range of 34% to 35%. This guidance reflects the impact of
anticipated greater global supply chain challenges.
The Company expects Adjusted2 EBITDA between
$80 million to $85 million and Adjusted2 EPS in the
range of $0.00 to $0.05 per diluted share for the fiscal 2021 third
quarter.
Fiscal Year 2021 Outlook
Based on its year-to-date performance in the fiscal first half
of the year, as well as current expectations for the fiscal third
quarter, the Company is revising its fiscal year 2021 guidance
outlook.
The Company now expects higher fiscal year 2021 Net Sales of
$8.1 billion to $8.3 billion. The Company expects comparable
sales of flat to up slightly for the second through fourth quarters
of fiscal 2021.
Adjusted2 Gross Margin is now anticipated to be in a
range of 34.0% to 35.0% and Adjusted2 SG&A is
expected to be approximately 32%.
The Company now expects Adjusted2 EBITDA to be in the
range of $425 million to $465 million and Adjusted2 EPS range
of $0.70 to $1.10 per diluted share.
Additional details on the Company's fiscal 2021 outlook and
visibility on the third 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.
Fiscal 2021 Second Quarter Conference Call and Investor
Presentation
Bed Bath & Beyond Inc.'s fiscal 2021 second quarter
conference call with analysts and investors will be held today at
8:15am EDT and may be accessed by
dialing 1-888-424-8151, or if international, 1-847-585-4422, using
conference ID number 9063334#. 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 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)
|
The Company notes
that, similar to the first quarter of fiscal 2021, second quarter
growth rates in fiscal 2021 are not fully comparable due to both
last year's extended store closures related to the COVID-19
pandemic in the month of June 2020 and the Company's ongoing fleet
optimization program. Therefore, Comparable Sales Growth for the
three months ended August 28, 2021 has been calculated by
estimating the negative impact on June 2021 sales of the store
closures in 2020 in connection with the Company's fleet
optimization program. The Company estimates that the stores closed
in 2020 as part of this fleet optimization program would have
contributed approximately 2% to 3% growth to the Bed Bath banner
and total company, in the second quarter of fiscal 2021. The
Company believes this calculation of comparable sales is a more
meaningful reference for the current quarter.
|
(4)
|
Total Liquidity
includes cash & investments and availability under the
Company's asset-based revolving credit facility.
|
(5)
|
Free Cash Flow is
defined as operating cash flow less capital
expenditures.
|
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
August 28, 2021, the Company had a total of 999 stores,
including 813 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 2021 second quarter, the Company did not open any
additional stores while closing 5 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 SG&A, 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 non-cash impairment charges
related to certain store-level assets and tradenames, loss on sale
of businesses, loss 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
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 third
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,
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; 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
|
|
Six Months
Ended
|
|
August 28,
2021
|
|
August 29,
2020
|
|
August 28,
2021
|
|
August 29,
2020
|
Net sales
|
$
|
1,984,696
|
|
|
$
|
2,687,968
|
|
|
$
|
3,938,508
|
|
$
|
3,995,415
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,383,627
|
|
|
1,700,431
|
|
|
2,703,745
|
|
|
2,659,389
|
|
|
|
|
|
|
|
|
|
Gross profit
|
601,069
|
|
|
987,537
|
|
|
1,234,763
|
|
|
1,336,026
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
652,972
|
|
|
850,218
|
|
|
1,311,734
|
|
|
1,574,375
|
|
|
|
|
|
|
|
|
|
Impairments
|
7,584
|
|
|
29,176
|
|
|
16,713
|
|
|
114,437
|
|
|
|
|
|
|
|
|
|
Restructuring and
transformation initiative expenses
|
24,495
|
|
|
27,128
|
|
|
58,181
|
|
|
27,128
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale
of businesses
|
132
|
|
|
(189,528)
|
|
|
4,121
|
|
|
(189,528)
|
|
|
|
|
|
|
|
|
|
Operating (loss) profit
|
(84,114)
|
|
|
270,543
|
|
|
(155,986)
|
|
|
(190,386)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
16,121
|
|
|
23,371
|
|
|
32,121
|
|
|
40,542
|
|
|
|
|
|
|
|
|
|
Loss (gain) on
extinguishment of debt
|
111
|
|
|
(77,038)
|
|
|
376
|
|
|
(77,038)
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before benefit for income taxes
|
(100,346)
|
|
|
324,210
|
|
|
(188,483)
|
|
|
(153,890)
|
|
|
|
|
|
|
|
|
|
(Benefit) provision
for income taxes
|
(27,131)
|
|
|
106,310
|
|
|
(64,394)
|
|
|
(69,499)
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
|
$
|
(73,215)
|
|
|
$
|
217,900
|
|
|
$
|
(124,089)
|
|
|
$
|
(84,391)
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per share - Basic
|
$
|
(0.72)
|
|
|
$
|
1.76
|
|
|
$
|
(1.19)
|
|
|
$
|
(0.68)
|
|
Net (loss) earnings
per share - Diluted
|
$
|
(0.72)
|
|
|
$
|
1.75
|
|
|
$
|
(1.19)
|
|
|
$
|
(0.68)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
101,951
|
|
|
124,146
|
|
|
104,361
|
|
|
123,922
|
|
Weighted average
shares outstanding - Diluted
|
101,951
|
|
|
124,211
|
|
|
104,361
|
|
|
123,922
|
|
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 first 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 2021 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 2020 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
August 28, 2021
|
|
|
|
Excluding
|
|
|
|
Reported
|
|
(Gain)
loss
on sale of
Businesses
|
|
(Gain) loss on
Extinguishment of debt
|
|
Restructuring and
Transformation Expenses
|
|
Impairments
|
|
(Gain) loss on
sale of
property
|
|
Total
income
tax
impact
|
|
Total
Impact
|
|
Adjusted
|
Gross
profit
|
601,069
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(73,679)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,679
|
|
|
674,748
|
|
Gross
margin
|
30.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.7
|
%
|
|
34.0
|
%
|
Restructuring and
transformation initiative expenses
|
24,495
|
|
|
—
|
|
|
—
|
|
|
(24,495)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,495)
|
|
|
—
|
|
(Loss) earnings
before (benefit) provision for income taxes
|
(100,346)
|
|
|
132
|
|
|
111
|
|
|
98,174
|
|
|
7,584
|
|
|
(1,339)
|
|
|
—
|
|
|
104,662
|
|
|
4,316
|
|
Tax (benefit)
provision
|
(27,131)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,751
|
|
|
27,751
|
|
|
620
|
|
Effective tax
rate
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(12.6)
|
%
|
|
(12.6)
|
%
|
|
14.4
|
%
|
Net (loss)
income
|
$
|
(73,215)
|
|
|
$
|
132
|
|
|
$
|
111
|
|
|
$
|
98,174
|
|
|
$
|
7,584
|
|
$
|
(1,339)
|
|
|
$
|
(27,751)
|
|
|
$
|
76,911
|
|
|
$
|
3,696
|
|
Net (loss) earnings
per share - Diluted
|
$
|
(0.72)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.04
|
|
Weighted average
shares outstanding- Basic
|
101,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,951
|
|
Weighted average
shares outstanding- Diluted
|
101,951
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net (Loss) Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(73,215)
|
|
|
$
|
132
|
|
|
$
|
111
|
|
|
$
|
98,174
|
|
|
$
|
7,584
|
|
|
$
|
(1,339)
|
|
|
$
|
(27,751)
|
|
|
$
|
76,911
|
|
|
$
|
3,696
|
|
Depreciation and
amortization
|
70,112
|
|
|
—
|
|
|
—
|
|
|
(5,924)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,924)
|
|
|
64,188
|
|
Loss on extinguishment
of debt
|
111
|
|
|
—
|
|
|
(111)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(111)
|
|
|
—
|
|
Interest
expense
|
16,121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,121
|
|
Tax (benefit)
provision
|
(27,131)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,751
|
|
|
27,751
|
|
|
620
|
|
EBITDA
|
$
|
(14,002)
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
92,250
|
|
|
$
|
7,584
|
|
|
$
|
(1,339)
|
|
|
$
|
—
|
|
|
$
|
98,627
|
|
|
$
|
84,625
|
|
EBITDA as % of net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Non-GAAP
Reconciliation
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
Three Months Ended
August 29, 2020
|
|
|
|
Excluding
|
|
|
|
Reported
|
|
(Gain) loss on
sale of Businesses
|
|
(Gain) loss on
extinguishment of debt
|
|
Restructuring
and
Transformation
Expenses
|
|
Impairments
|
|
Benefit from
reduction of incremental markdown reserves
|
|
Total
income
tax
impact
|
|
Total
impact
|
|
Adjusted
|
Gross
profit
|
987,537
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,000)
|
|
|
—
|
|
|
(23,000)
|
|
|
964,537
|
|
Gross
margin
|
36.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
35.9
|
%
|
Restructuring and
transformation initiative expenses
|
27,128
|
|
|
—
|
|
|
—
|
|
|
(27,128)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,128)
|
|
|
—
|
|
(Loss) earnings
before (benefit) provision for income taxes
|
324,210
|
|
|
(189,528)
|
|
|
(77,038)
|
|
|
30,878
|
|
|
29,176
|
|
|
(23,000)
|
|
|
—
|
|
|
(229,512)
|
|
|
94,698
|
|
Tax (benefit)
provision
|
106,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,863)
|
|
|
(73,863)
|
|
|
32,447
|
|
Effective tax
rate
|
32.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
1.5
|
%
|
|
1.5
|
%
|
|
34.3
|
%
|
Net earnings
(loss)
|
$
|
217,900
|
|
|
$
|
(189,528)
|
|
|
$
|
(77,038)
|
|
|
$
|
30,878
|
|
|
$
|
29,176
|
|
|
$
|
(23,000)
|
|
|
$
|
73,863
|
|
|
$
|
(155,649)
|
|
|
$
|
62,251
|
|
Net earnings per
share - Diluted
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.50
|
|
Weighted average
shares outstanding- Basic
|
124,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
124,146
|
|
Weighted average
shares outstanding- Diluted
|
124,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
124,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net (Loss) Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
217,900
|
|
|
$
|
(189,528)
|
|
|
$
|
(77,038)
|
|
|
$
|
30,878
|
|
|
$
|
29,176
|
|
|
$
|
(23,000)
|
|
|
$
|
73,863
|
|
|
$
|
(155,649)
|
|
|
$
|
62,251
|
|
Depreciation and
amortization
|
85,277
|
|
|
—
|
|
|
—
|
|
|
(4,000)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,000)
|
|
|
81,277
|
|
Loss on extinguishment
of debt
|
(77,038)
|
|
|
—
|
|
|
77,038
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,038
|
|
|
—
|
|
Interest
expense
|
23,371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,371
|
|
Tax (benefit)
provision
|
106,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,863)
|
|
|
(73,863)
|
|
|
32,447
|
|
EBITDA
|
$
|
355,820
|
|
|
$
|
(189,528)
|
|
|
$
|
—
|
|
|
$
|
26,878
|
|
|
$
|
29,176
|
|
|
$
|
(23,000)
|
|
|
$
|
—
|
|
$
|
(156,474)
|
|
|
$
|
199,346
|
|
EBITDA as % of net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
August 28,
2021
|
|
May 29,
2021
|
|
February 27,
2021
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
970,592
|
|
|
1,097,267
|
|
|
1,352,984
|
|
Short term investment securities
|
29,999
|
|
|
29,997
|
|
|
—
|
|
Merchandise inventories
|
1,590,669
|
|
|
1,563,602
|
|
|
1,671,909
|
|
Prepaid expenses and other current assets
|
510,109
|
|
|
515,993
|
|
|
595,152
|
|
Total
current assets
|
3,101,369
|
|
|
3,206,859
|
|
|
3,620,045
|
|
Long term investment
securities
|
19,459
|
|
|
19,458
|
|
|
19,545
|
|
Property and
equipment, net
|
918,462
|
|
|
929,335
|
|
|
918,418
|
|
Operating lease
assets
|
1,668,621
|
|
|
1,584,144
|
|
|
1,587,101
|
|
Other
assets
|
359,612
|
|
|
313,493
|
|
|
311,821
|
|
Total
assets
|
$
|
6,067,523
|
|
|
$
|
6,053,289
|
|
|
$
|
6,456,930
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
991,502
|
|
|
889,883
|
|
|
$
|
986,045
|
|
Accrued expenses and other current liabilities
|
514,404
|
|
|
506,674
|
|
|
636,329
|
|
Merchandise credit and gift card liabilities
|
311,013
|
|
|
309,576
|
|
|
312,486
|
|
Current operating lease liabilities
|
349,847
|
|
|
347,365
|
|
|
360,061
|
|
Total
current liabilities
|
2,166,766
|
|
|
2,053,498
|
|
|
2,294,921
|
|
Other
liabilities
|
74,831
|
|
|
78,353
|
|
|
82,279
|
|
Operating lease
liabilities
|
1,609,912
|
|
|
1,529,173
|
|
|
1,509,767
|
|
Income taxes
payable
|
102,192
|
|
|
102,905
|
|
|
102,664
|
|
Long term
debt
|
1,179,588
|
|
|
1,182,566
|
|
|
1,190,363
|
|
Total
liabilities
|
5,133,289
|
|
|
4,946,495
|
|
|
5,179,994
|
|
|
|
|
|
|
|
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 343,596, 343,570 and
343,241, respectively; outstanding 101,060, 104,513 and 109,621
shares, respectively
|
3,436
|
|
|
3,435
|
|
|
3,432
|
|
Additional paid-in
capital
|
2,218,400
|
|
|
2,208,052
|
|
|
2,152,135
|
|
Retained
earnings
|
10,101,522
|
|
|
10,174,656
|
|
|
10,225,253
|
|
Treasury stock, at
cost; 242,536, 239,057 and 233,620 shares, respectively
|
(11,335,845)
|
|
|
(11,234,529)
|
|
|
(11,048,284)
|
|
Accumulated other
comprehensive loss
|
(53,279)
|
|
|
(44,820)
|
|
|
(55,600)
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
934,234
|
|
|
1,106,794
|
|
|
1,276,936
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
6,067,523
|
|
|
$
|
6,053,289
|
|
|
$
|
6,456,930
|
|
BED BATH &
BEYOND INC. AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(in thousands,
unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
August 28,
2021
|
|
August 29,
2020
|
|
August 28,
2021
|
|
August 29,
2020
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
$
|
(73,215)
|
|
|
$
|
217,900
|
|
|
$
|
(124,089)
|
|
|
$
|
(84,391)
|
|
Adjustments to
reconcile net (loss) earnings to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
70,112
|
|
|
85,277
|
|
|
138,390
|
|
|
168,878
|
|
Impairments
|
7,584
|
|
|
29,176
|
|
|
16,713
|
|
|
114,437
|
|
Stock-based compensation
|
10,075
|
|
|
8,178
|
|
|
17,993
|
|
|
15,880
|
|
Deferred income taxes
|
(26,803)
|
|
|
105,089
|
|
|
(48,938)
|
|
|
22,732
|
|
Loss (gain) on sale of businesses
|
132
|
|
|
(189,528)
|
|
|
4,121
|
|
|
(189,528)
|
|
Loss (gain) on debt extinguishment
|
111
|
|
|
(77,038)
|
|
|
376
|
|
|
(77,038)
|
|
Other
|
(3,176)
|
|
|
1,275
|
|
|
(5,373)
|
|
|
(98)
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
|
|
Merchandise inventories
|
(31,070)
|
|
|
184,525
|
|
|
82,296
|
|
|
46,022
|
|
Other
current assets
|
3,659
|
|
|
105,806
|
|
|
82,203
|
|
|
613
|
|
Other
assets
|
(293)
|
|
|
(551)
|
|
|
(225)
|
|
|
277
|
|
(Decrease) increase in liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
111,691
|
|
|
92,496
|
|
|
9,490
|
|
|
113,370
|
|
Accrued
expenses and other current liabilities
|
12,667
|
|
|
72,684
|
|
|
(116,660)
|
|
|
25,609
|
|
Merchandise credit and gift card liabilities
|
1,878
|
|
|
(5,082)
|
|
|
(1,543)
|
|
|
(14,876)
|
|
Income
taxes payable
|
(767)
|
|
|
(4,458)
|
|
|
(490)
|
|
|
(3,313)
|
|
Operating
lease assets and liabilities, net
|
(4,869)
|
|
|
(85,076)
|
|
|
(1,744)
|
|
|
9,051
|
|
Other
liabilities
|
(2,937)
|
|
|
2,809
|
|
|
(6,482)
|
|
|
1,233
|
|
Net cash
provided by operating activities
|
74,779
|
|
|
543,482
|
|
|
46,038
|
|
|
148,858
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of held-to-maturity investment securities
|
—
|
|
|
—
|
|
|
(29,997)
|
|
|
—
|
|
Redemption of held-to-maturity investment securities
|
—
|
|
|
29,500
|
|
|
—
|
|
|
386,500
|
|
Net proceeds from sale of business
|
—
|
|
|
244,782
|
|
|
—
|
|
|
244,782
|
|
Net proceeds from sale of property
|
5,000
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
Capital expenditures
|
(75,954)
|
|
|
(36,970)
|
|
|
(149,475)
|
|
|
(79,321)
|
|
Net cash (used
in) provided by investing activities
|
(70,954)
|
|
|
237,312
|
|
|
(174,472)
|
|
|
551,961
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Borrowing of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
236,400
|
|
Repayments of long-term debt
|
(3,182)
|
|
|
(457,827)
|
|
|
(11,355)
|
|
|
(457,827)
|
|
Repurchase of common stock, including fees
|
(101,316)
|
|
|
(497)
|
|
|
(240,011)
|
|
|
(3,034)
|
|
Payment of dividends
|
(80)
|
|
|
(1,778)
|
|
|
(640)
|
|
|
(22,970)
|
|
Payment of deferred financing fees
|
(3,443)
|
|
|
(7,690)
|
|
|
(3,443)
|
|
|
(7,690)
|
|
Net cash used
in financing activities
|
(108,021)
|
|
|
(467,792)
|
|
|
(255,449)
|
|
|
(255,121)
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
(4,628)
|
|
|
5,386
|
|
|
1,489
|
|
|
1,924
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(108,824)
|
|
|
318,388
|
|
|
(382,394)
|
|
|
447,622
|
|
Change in cash
balances classified as held-for-sale
|
—
|
|
|
2,545
|
|
|
—
|
|
|
4,815
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(108,824)
|
|
|
320,933
|
|
|
(382,394)
|
|
|
452,437
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
Beginning of
period
|
1,133,654
|
|
|
1,155,154
|
|
|
1,407,224
|
|
|
1,023,650
|
|
End of
period
|
$
|
1,024,830
|
|
|
$
|
1,476,087
|
|
|
$
|
1,024,830
|
|
|
$
|
1,476,087
|
|
View original
content:https://www.prnewswire.com/news-releases/bed-bath--beyond-inc-reports-second-quarter-results-delivering-positive-operating-cash-flow-301388571.html
SOURCE Bed Bath & Beyond Inc.