Bed, Bath and Beyond 2015 Annual Report Download - page 71

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Columbia, Puerto Rico and Canada, including: 1,020 BBB stores, 276 Cost Plus World Market stores, 105 Baby
stores, 78 CTS stores and 51 Harmon stores. During fiscal 2015, the Company opened a total of 29 new stores,
closed 12 stores and opened a new customer contact center in Layton, Utah and a new distribution facility in Las
Vegas, Nevada. At the end of fiscal 2015, Company-wide total store square footage, net of openings and
closings, for all of its concepts, was approximately 43.3 million square feet. The Company has distribution
facilities totaling 6.1 million square feet. In addition, the Company has entered into a lease for a new distribution
facility in Lewisville, Texas, which is planned to open in the fall of 2016, which will be approximately 800,000
square feet. The Company will continue to assess sites throughout the country in order to gain greater distribution
efficiencies. The Company also operates websites at bedbathandbeyond.com, bedbathandbeyond.ca,
christmastreeshops.com, harmondiscount.com, buybuybaby.com, buybuybaby.ca, worldmarket.com and
ofakind.com. Additionally, the Company is a partner in a joint venture which operated a total of seven stores as
of February 27, 2016 in Mexico under the name Bed Bath & Beyond.
The Company plans to continue to expand its operations and invest in its infrastructure to reach its long-term
objectives. In fiscal 2016, the Company expects company-wide to open approximately 30 new stores, most of
which are planned for new markets, close approximately 15 stores and open a new distribution facility.
Additionally, in connection with leveraging its merchandise offerings and optimizing its operations, the
Company continues to expand, across selected stores, the number of specialty departments such as health and
beauty care, baby, specialty food, and beverage. Also, the Company is committed to the continued growth of its
merchandise categories and channels and is growing the number of items it is able to have shipped directly to
customers from a vendor. The continued growth of the Company is dependent, in part, upon the Company’s
ability to execute these and other key initiatives successfully.
LIQUIDITY AND CAPITAL RESOURCES
The Company has been able to finance its operations, including its growth, through internally generated funds.
For fiscal 2016, the Company believes that it can continue to finance its operations, including its growth, share
repurchases, cash dividends, planned capital expenditures and debt service obligations, through existing and
internally generated funds. In addition, if necessary, the Company could borrow under its revolving credit
facility. Capital expenditures for fiscal 2016 are planned to be approximately $400 million to $425 million, with
a significant portion for information technology enhancements, which includes enhancements to the Company’s
digital, web and mobile capabilities, the continued deployment of new systems and equipment to the stores and
other projects, and the remainder of the spend would be for the new distribution facility, new stores, existing
store improvements, and other projects. These planned capital expenditures are subject to the timing and
composition of the projects. In addition, the Company reviews its alternatives with respect to its capital structure
on an ongoing basis.
Fiscal 2015 compared to Fiscal 2014
Net cash provided by operating activities in fiscal 2015 was $1.012 billion, compared with $1.178 billion in
fiscal 2014. Year over year, the Company experienced an increase in cash used by the net components of
working capital (primarily accounts payable and other current assets, partially offset by merchandise inventories)
offset by a slight increase in net earnings, as adjusted for non-cash expenses (primarily deferred income taxes and
depreciation).
Retail inventory, which includes inventory in the Company’s distribution facilities for direct to customer
shipments, was approximately $2.8 billion, an increase of approximately 3.6% compared to retail inventory at
February 28, 2015. The Company’s distribution facilities include the Company’s newest Las Vegas, Nevada
distribution facility which opened during fiscal 2015.
Net cash used in investing activities in fiscal 2015 was $275.6 million, compared to net cash provided by
investing activities of $48.8 million in fiscal 2014. In fiscal 2015, net cash used in investing activities was
59