Bed Bath & Beyond Inc. Announces Results for the First Quarter of Fiscal Year 2019



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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First quarter diluted net loss per share ($ 2.91); Adjusted net income per diluted share of $ 0.12, At the top of the guidance range"data-reactid =" 11 ">First quarter diluted net loss per share ($ 2.91); Adjusted net income per diluted share of $ 0.12, At the top of the guidance range

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Income slightly below indicative range"data-reactid =" 12 ">Income slightly below indicative range

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Establishes key short-term priorities to accelerate transformation"data-reactid =" 13 ">Establishes key short-term priorities to accelerate transformation

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "UNION, N.J., July 10, 2019 / PRNewswire / – & & nbsp; Bath bed & amp; Beyond Inc. (BBBY) today released financial results for the first quarter of fiscal year 2019 closed the June 1, 2019. & nbsp; & nbsp; "data-reactid =" 14 ">UNION, N.J., July 10, 2019 / PRNewswire / – Bed Bath & Beyond Inc. (BBBY) today announced its financial results for the first quarter of fiscal year ended 2019 June 1, 2019.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mary A. WinstonActing CEO, "Bed Bath & Beyond is an iconic brand offering a tremendous opportunity and we are aware that our approach to transforming society needs to be radically altered.We have identified four key strategies in the short term. stabilization and revenue growth, changing the cost structure, reviewing and optimizing the company's assets, including our distribution banner portfolio, and refining our organizational structure. & nbsp and we are committed to conducting a thorough review of the business to set priorities and move forward the most significant initiatives to improve performance. & nbsp; In light of these In the short term, we will continue to focus on satisfying our customers and delivering long-term results. s. "" data-reactid = "15">Mary A. WinstonActing CEO, "Bed Bath & Beyond is an iconic brand with a tremendous opportunity, and we recognize that our approach to business transformation needs to change fundamentally.We have identified four key short-term priorities, including: to stabilize and drive revenue growth, redefine the cost structure, review and optimize the company's assets, including our retail portfolio, and refine our organizational structure. management team have aligned themselves with these priorities, we are conducting an in-depth review of the business to prioritize and implement the most significant initiatives to improve performance, and in light of these short-term priorities, we will continue to satisfy our customers and provide long-term value to our shareholders. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First quarter results of fiscal year 2019"data-reactid =" 16 ">First quarter results of fiscal year 2019

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For the first quarter of fiscal 2019, the Company has announced a net loss of ($ 2.91) by diluted action ((371.1) million dollars), which included an adverse impact of approximately $ 3.03 per diluted share is a non-cash impairment of goodwill and other intangible assets, as well as severance and shareholder costs incurred during the quarter, compared to net income of $ 32 by diluted action ($ 43.6 million) for the first quarter of fiscal year 2018, which included a negative impact of approximately $ 0.06 severance pay. & nbsp; Excluding goodwill and other impairment losses, severance and shareholder costs, the Company reported adjusted net income from & nbsp; $ 12 per diluted share ($ 15.5 million) for the first quarter of fiscal year 2019. & nbsp; Net sales for the first quarter of fiscal 2019 were about $ 2.6 billion, a decrease of about 6.6% compared to the same period of the previous year. & nbsp; Comparable sales in the first quarter of fiscal 2019 decreased by approximately 6.6%. "Data-reactid =" 17 "> For the first quarter of fiscal 2019, the Company recorded a net loss of ($ 2.91) by diluted action ((371.1) million dollars), which included an adverse impact of approximately $ 3.03 per diluted share is a non-cash impairment of goodwill and other intangible assets, as well as severance and shareholder costs incurred during the quarter, compared to net income of $ 32 by diluted action ($ 43.6 million) for the first quarter of fiscal year 2018, which included a negative impact of approximately $ 0.06 severance pay. Excluding goodwill and other impairment losses, severance benefits and shareholder costs, the Company reported adjusted net income of $ 0.12 per diluted share ($ 15.5 million) for the first quarter of fiscal 2019. Net sales for the first quarter of fiscal 2019 were about $ 2.6 billion, a decrease of about 6.6% compared to the same period of the previous year. Comparable sales in the first quarter of fiscal 2019 decreased by approximately 6.6%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The allocation of capital"data-reactid =" 18 ">The allocation of capital

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On July 8, 2019, the Board of Directors of the Company declared a quarterly dividend of $ 0.17 per share payable on October 15, 2019 shareholders of record at the close of business on September 13, 2019"data-reactid =" 19 "> On July 8, 2019, the Board of Directors of the Company declared a quarterly dividend of $ 0.17 per share payable on October 15, 2019 shareholders of record at the close of business on September 13, 2019.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "During the first quarter of fiscal year 2019 , the Company has repurchased approximately $ 81.5 million of its ordinary shares, representing approximately 5.3 million shares. & nbsp; "data-reactid =" 20 "> During the first quarter of fiscal year 2019, the Company repurchased approximately $ 81.5 million of its ordinary shares, representing approximately 5.3 million shares.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The company closed the first quarter of the year. fiscal year 2019 with approximately $ 923 million in cash and investments, up approximately 9.0%, compared to approximately $ 847 million in cash and investments at the end of the first quarter of fiscal 2018. "data-reactid =" 21 "> The company closed the first quarter of fiscal 2019 with approximately $ 923 million in cash and investments, up approximately 9.0%, compared to approximately $ 847 million in cash and investments at the end of the first quarter of fiscal year 2018.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Financial Outlook for the 2019 Fiscal Year"data-reactid =" 22 ">Financial Outlook for the 2019 Fiscal Year

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For the year 2019, at l-39 Excluding the acquisition gap and other write-downs, severance pay and share ownership costs, the company is modeling its performance to be at the lower end of its product ranges. $ 11.4 billion at $ 11.7 billion for net sales and $ 2.11 at $ 2.20 for diluted net earnings per share. "data-reactid =" 23 "> For the 2019 fiscal year, excluding goodwill and other impairment losses, severance benefits and costs related to the activity of shareholders, the company is positioned at the bottom of the range previously provided. $ 11.4 billion at $ 11.7 billion for net sales and $ 2.11 at $ 2.20 for diluted net earnings per share.

Due to the inherent difficulty of predicting the timing or amount of items that have not yet occurred and that are beyond the control of the Company and that would have an impact on its net sales, diluted earnings per share and forward-looking financial measures to the most directly comparable measures, the Company has not provided a reconciliation to these measures for its 2019 guidance based on GAAP. For the same reasons, the Company is not able to take into account the likely significance of the unavailable information. Non-GAAP forward-looking financial measures provided without the most directly comparable GAAP financial measures may differ materially from the financial measures defined by GAAP.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Adoption of the lease accounting standard"data-reactid =" 25 ">Adoption of the lease accounting standard

<p class = "canvas-canvas-text canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The company adopted the ASU 2016-02 , Leases (subject 842), related to the recognition of leases at the beginning of the first quarter of fiscal year 2019. & nbsp; The adoption of this standard has led to the inclusion in the consolidated balance sheet of approximately $ 2.0 billion operating leases and approximately $ 2.2 billion Operating lease liabilities, with no significant change in the consolidated statements of earnings or cash flows. & nbsp; The standard does not affect the fulfillment of the company's commitments under its trust or revolving credit agreement. "Data-reactid =" 26 "> The company has adopted the ASU 2016-02, Leases (subject 842), related to the recognition of leases at the beginning of the first quarter of fiscal 2019. The adoption of this standard resulted in the inclusion in the consolidated balance sheet of approximately $ 2.0 billion operating leases and approximately $ 2.2 billion Operating lease liabilities, with no significant change in the consolidated statements of earnings or cash flows. The standard does not affect the fulfillment of the company's commitments under its trust or revolving credit agreement.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Conference call and investor presentation for the first quarter of fiscal year 2019"data-reactid =" 31 ">Conference call and investor presentation for the first quarter of fiscal year 2019

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Bath & Beyond Tax Inc. lecture The first conference call quarter 2019 with analysts and investors will take place today at 17:00 EDT You can access it by calling 1-888-771-4371 or, if international, 1-847-585-4405, using conference number 48713230. Retransmission of the call will be available from 'today at 8:00 pm EDT until 8:00 pm EDT on Friday, July 12, 2019and you can access it by calling 1-888-843-7419, conference number 48713230. & nbsp; You can also access the call and webcast via audio streaming in the Investor Relations section of the company's website at the address www.bedbathandbeyond.com. "Data-reactid =" 32 "> The conference call with analysts and investors on the first quarter of fiscal year 2019 from Bed Bath & Beyond Inc. will be held today at 17:00 EDT You can access it by calling 1-888-771-4371 or, if international, 1-847-585-4405, using conference number 48713230. Retransmission of the call will be available from 'today at 8:00 pm EDT until 8:00 pm EDT on Friday, July 12, 2019and can be accessed by calling 1-888-843-7419, using conference ID 48713230. You can also access and replay the conference via audio webcast in the Relationships section. with investors of the Company's website at www.bedbathandbeyond.com.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Company has also made available a presentation to investors on the investor relations section of the company's website at www.bedbathandbeyond.com. "data-reactid =" 33 "> The Company has also made a presentation to investors in the Investor Relations section of the Company's website at www.bedbathandbeyond.com.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "About the company"data-reactid =" 34 ">About the company

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Reads Bath & Beyond Inc. and its subsidiaries (" Company ") is an omnichannel retailer, a trusted expert in the field of home and life events.The company sells a wide assortment of housewares and home furnishings.It provides also a variety of textile products, amenities and others to institutional clients in the hospitality and catering, health care, healthcare and other sectors. Mexico under the name of Bed Bath & amp; Beyond. Bed Bath & Beyond Inc. and its affiliates (the "Company") are an omni-channel retailer, a trusted expert for home and living events .The company sells a wide assortment The company also supplies a variety of textile products, amenities and other products to institutional clients in the hospitality, cruise lines, healthcare and other sectors. In addition, it is a partner in a joint venture which operates retail stores stores in Mexico under the name of Bed Bath & Beyond.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The company operates websites on bedbathandbeyond.com, bedbathandbeyond .ca, worldmarket.com, buybuybaby.com, buybuybaby.com, christmastreeshops.com, andthat.com, harmondiscount.com, facevalues.com, ofakind.com, onekingslane.com, personalizationmall.com, decorist.com, harbourlinen.com and t-ygroup.com. & nbsp; As of June 1, 2019, the Company had 1,536 stores, of which 995 Bed Bath & amp; Beyond the stores in the 50 states, the District of Colombia, Porto Rico and Canada, 277 stores under the names World Market, Cost Plus World Market or Cost Plus, 126 BABY stores to buy, 81 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat !, 55 stores under the names Harmon, Harmon Face Values ​​or Face Values ​​and two retail stores under the name One & nbsp; Kings & nbsp; Lane. & Nbsp; During the first quarter of the year, the Company opened three stores, including a Bed Bath & amp; Beyond the store and two baby shopping stores. & Nbsp; The joint venture, to which the company is a partner, operates ten Mexico under the name of Bed Bath & amp; Beyond. "Data-reactid =" 36 "> The company operates websites at the following address: bedbathandbeyond.com, bedbathandbeyond.ca, worldmarket.com, buybuybaby.com, buybuybaby.ca, christmastreeshops.com, andthat.com , harmondiscount.com, facevalues.com, ofakind.com, onekingslane.com, personalizationmall.com, decorist.com, harbourlinen.com and t-ygroup.com. June 1, 2019, the company had 1,536 stores, including 995 Bed Bath & Beyond stores in all 50 US states, District of Colombia, Porto Rico and Canada, 277 stores under the names World Market, Cost Plus World Market or Cost Plus, 126 BABY stores to buy, 81 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat !, 55 stores under the names Harmon, Harmon Face Values ​​or Face Values ​​and two retail stores under the name One Kings Lane. During the first quarter of the year, the Company opened three stores, including a Bed Bath & Beyond store and two baby shopping stores. The joint venture, to which the company is a partner, operates ten Mexico under the name of Bed Bath & Beyond.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP Information"data-reactid =" 37 ">Non-GAAP Information

This news release contains certain non-GAAP information, such as adjusted net earnings per diluted share, which is intended to provide visibility into the Company's core businesses by excluding the effects of goodwill and other impairment losses, severance pay and shareholder activity costs. The company's definition and calculation of non-GAAP measures may differ from those of other companies. Non-GAAP financial measures should be considered in addition to the Company's GAAP financial results and not as an alternative to these results.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Forward-looking statements"data-reactid =" 39 ">Forward-looking statements

This press release contains forward-looking statements, including anticipated net earnings per diluted share and operating margin. Many of these forward-looking statements can be identified using terms such as "anticipate, anticipate, approximate, estimate, presume, continue, model, plan, plan, achieve goal, etc." The actual results and future financial position of the Company may differ materially from those expressed in these forward-looking statements because of numerous factors. These factors include, but are not limited to: general economic conditions, including the housing market, a difficult general macroeconomic environment and related changes in the retail environment; consumer preferences, consumer habits and adoption of new technologies; demographics and other macroeconomic factors that may affect the level of expenditures for the types of goods sold by the Company; civil unrest and terrorist acts; unusual weather and natural disasters; competition from existing and potential competitors on all channels; price pressures; liquidity; the ability to achieve planned cost savings and not to exceed expected costs associated with organizational changes and investments; the ability to attract and retain qualified employees in all areas of the organization, including a permanent CEO; the cost of labor, goods and other costs and expenses; potential disruption of the supply chain due to trade restrictions, political instability, labor disruption, product recalls, financial or operational instability of suppliers or carriers, and other elements; the ability to find suitable locations at acceptable occupancy costs and other conditions 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 evaluate and implement technologies to support the company's development of its omnichannel capabilities; uncertainty in the financial markets; the volatility of the price of the common shares of the Company and its impact, as well as the impact of other factors, on the Company's capital allocation strategy; the impact of the impairment of goodwill and intangible assets; disruption of the company's computer systems, including security breaches of systems protecting consumer and employee information, as well as other types of cybersecurity cybercrime or attack; reputational risk resulting from contestation of the compliance of the company or a third-party product or service provider with different laws, regulations or standards, including work, health, safety, confidentiality and privacy. # 39; environment; reputational risk resulting from the performance of suppliers of third party products or services in the course of direct delivery to the home or assembly of products for customers; changes to legal, regulatory and legal requirements including, without limitation, proposed changes affecting international trade; changes or new tax laws or an interpretation of existing tax laws; new or developments in existing litigation, claims or assessments; changes or new accounting standards; foreign exchange rate fluctuations; and the integration of acquired businesses. The company assumes no obligation to update its forward-looking statements.

BED BATH & BEYOND INC. AND ITS SUBSIDIARIES

Consolidated statements of income

(in thousands, except per share data)

(not verified)

Three months have ended

June 1,

June 2

2019

2018

Net sales

$

2,572,989

$

2,753,667

Cost of sales

1,685,810

1,788,819

Gross profit

887179

964,848

Selling, general and administrative expenses

892,754

883.619

Goodwill and other impairment losses

401.267

Operating result

(406.842)

81,229

Interest expense, net

15,898

16,732

(Loss) earnings before provision for income taxes

(422.740)

64,497

Provision for income taxes

(51.655)

20,921

Net profit (loss)

$

(371.085)

$

43,576

Net earnings (loss) per share – basic

$

(2.91)

$

0.32

Net earnings (loss) per share – Diluted

$

(2.91)

$

0.32

Weighted average number of outstanding shares – basic

127,614

135,987

Weighted average number of outstanding shares – Diluted

127,614

136,601

Dividends declared per share

$

0.17

$

0.16

BED BATH & BEYOND INC. AND ITS SUBSIDIARIES

Consolidated balance sheets

(in thousands, unaudited)

June 1,

June 2

2019

2018

Assets

Active in the short term:

Cash and cash equivalents

$

700.389

$

678.646

Short-term investment securities

201,664

148,313

Stocks of goods

2,540,852

2,646,263

Expenses paid in advance and other current assets

254,187

483159

Total current assets

3697092

3956381

Long-term investment securities

20,677

19,957

Property and equipment, net

1,822,679

1,893,230

Assets of operating leases

1,990,963

Good will

716.283

other assets

456,784

427.895

$

7,988,195

$

7,013,746

Liabilities and equity

Current liabilities:

Accounts payable

$

1 066 282

$

1,082,943

Accrued expenses and other current liabilities

590,087

716,069

Passive credit cards and gift cards

343,087

329.055

Current lease liabilities outstanding

410 417

Current taxes payable

21,209

Total current liabilities

2,431,082

2,128,067

Other liabilities

184,242

431 799

Taxes payable on income

47,745

57,507

Liabilities of operating leases

1,775,081

Long-term debt

1,488,051

1,492,194

Total responsibilities

5,926,201

4,109,567

Equity capital:

Preferred Shares – par value $ 0.01; allowed – 1,000

actions; no shares issued or outstanding

Common Shares – par value $ 0.01; authorized – 900,000 shares;

issued 343,419 and 342,642 shares, respectively;

127,774 and 140,131 shares outstanding, respectively

3,344

3,426

Issue premium

2,138,362

2082238

Retained earnings

10,679,515

11360572

Treasury shares, at cost price; 215,645 and 202,511 shares, respectively

(10,697,540)

(10,490,082)

Accumulated other comprehensive income

(61,777)

(51.975)

Total equity

2061994

2,904,179

$

7,988,195

$

7,013,746

BED BATH & BEYOND INC. AND ITS SUBSIDIARIES

Consolidated statements of cash flows

(in thousands, unaudited)

Three months have ended

June 1,

June 2

2019

2018

Cash flow from operating activities:

Net profit (loss)

$

(371.085)

$

43,576

Adjustments to reconcile net income to net cash

provided by the activities of exploitation:

Depreciation and amortization

83,542

79,578

Goodwill and other impairment losses

401.267

Stock-based compensation

19,348

23,572

Deferred taxes

(54,514)

(3.548)

Other

(2.301)

(1,109)

Decrease (increase) in assets:

Stocks of goods

76,455

82,252

Investment securities trading

21

(2.069)

Other current assets

137

104,954

other assets

88

(482)

(Decrease) increase in liabilities:

Accounts payable

(10,996)

(78,717)

Accrued expenses and other current liabilities

(30,580)

(5,401)

Passive credit cards and gift cards

3,896

5,553

Taxes payable on income

(880)

(3.767)

Assets and liabilities of operating leases, net

(23,922)

Other liabilities

(389)

602

Net cash provided by operating activities

90,087

244,994

Cash flow from investing activities:

Purchase of investment securities held until the end of the term

(57,000)

(5,625)

Redemption of investment securities held until the end of the term

343,000

238.125

Investment Expenses

(68.375)

(97.813)

Net cash generated by investing activities

217.625

134,687

Cash flow from financing activities:

Payment of dividends

(21,894)

(21,414)

Redemption of ordinary shares, including expenses

(81.495)

(22,110)

Net cash used in financing activities

(103.389)

(43,524)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

(2.095)

(3.651)

Net increase in cash, cash equivalents and restricted cash

202,228

332.506

Cash, cash equivalents and restricted cash:

Start of period

529 971

367.140

End of period

$

732.199

$

699.646

The consolidated cash flow statement for fiscal year 2018 has been revised to include the cash allocated as a result of

adoption of the 2016-18 accounting standards update Statement of Cash Flows (Topic 230)during the year 2018.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP financial measures"data-reactid =" 49 ">Non-GAAP financial measures

The following table reconciles the non-GAAP financial measures presented in this press release. The Company believes that these non-GAAP financial measures provide useful additional information on the performance of its operations. These non-GAAP financial measures should not be considered superior, but should be added to other financial measures prepared in accordance with GAAP, including annual results. The method used by the Company to determine these non-GAAP financial measures may be different from those used by other companies and, therefore, may not be comparable to those used by other companies. The Company does not recommend the exclusive use of this non-GAAP measure to assess its financial performance and results.

Non-GAAP Reconciliation

(in thousands, except per share data)

(not verified)

Three months have ended

June 1,

June 2

2019

2018

Reconciliation of Adjusted Net Earnings

Net profit (loss) reported

$

(371.085)

$

43,576

Pre-tax adjustments:

Goodwill and other impairment losses (a)

401.267

Severance benefits

38,662

9,333

Shareholder activity costs

8,000

Total pre-tax adjustments

447.929

9,333

Tax impact of adjustments

(61.387)

(1,618)

Total adjustments, after taxes

386.542

7,715

Adjusted net income

$

15,457

$

51,291

Reconciliation of Adjusted Net Earnings per diluted share

Net earnings (loss) per diluted share

$

(2.91)

$

0.32

Goodwill and other impairment losses, severance pay and shareholder

activity costs

3.03

0.06

Adjusted earnings per diluted share

$

0.12

$

0.38

(a) Goodwill and other impairment losses include: (1) impairment losses on goodwill and trade names related to the presentation of business information in North America;

unit; and (2) impairment of business names related to the Institutional Sales reporting unit.

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