Bed, Bath and Beyond 2002 Annual Report Download - page 18

BED BATH & BEYOND ANNUAL REPORT 2002
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Independent Auditors’ Report
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BED BATH & BEYOND INC.:
We have audited the accompanying consolidated balance sheets of Bed Bath & Beyond Inc. and subsidiaries as of March 1, 2003 and
March 2, 2002, and the related consolidated statements of earnings, shareholders’ equity and cash flows for each of the fiscal years in the
three-year period ended March 1, 2003. These consolidated financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of Bed Bath & Beyond Inc. and subsidiaries as of March 1, 2003 and March 2, 2002, and the results of their operations and their cash
flows for each of the fiscal years in the three-year period ended March 1, 2003 in conformity with accounting principles generally
accepted in the United States of America.
New York, New York
March 27, 2003
Notes to Consolidated Financial Statements
(Continued)
12. SUMMARY OF QUARTERLY RESULTS (UNAUDITED)
(in thousands, except per share data) FISCAL 2002 QUARTER ENDED FISCAL 2001 QUARTER ENDED
June 1, August 31, November 30, March 1, June 2, September 1, December 1, March 2,
2002 2002 2002 2003 2001 2001 2001 2002
Net sales $776,798 $903,044 $936,030 $1,049,292 $575,833 $713,636 $759,438 $879,055
Gross profit 318,362 370,335 386,224 443,626 234,959 291,342 311,030 370,235
Operating profit 72,701 119,687 119,228 168,441 45,602 84,672 83,749 132,077
Earnings before provision
for income taxes 75,283 122,697 122,133 171,235 48,792 87,730 86,120 134,430
Provision for
income taxes 28,984 47,238 47,021 65,926 18,785 33,776 33,156 51,756
Net earnings $ 46,299 $ 75,459 $ 75,112 $ 105,309 $ 30,007 $ 53,954 $ 52,964 $ 82,674
EPS – Basic (1) $ 0.16 $ 0.26 $ 0.26 $ 0.36 $ 0.10 $ 0.19 $ 0.18 $ 0.28
EPS – Diluted (1) $ 0.15 $ 0.25 $ 0.25 $ 0.35 $ 0.10 $ 0.18 $ 0.18 $ 0.28
(1) Net earnings per share (“EPS”) amounts for each quarter are required to be computed independently and may not equal
the amount computed for the total year.
13. ACQUISITION
On March 5, 2002, the Company acquired Harmon, a health and beauty care retailer, which did not have a material effect on its
consolidated results of operations or financial condition in fiscal 2002.