From Bed Bath & Beyond’s Earnings Call

The transcript is courtesy of Seeking Alpha. Here are some important points:

Before concluding this afternoon’s call, a few additional comments relative to our recently concluded fiscal fourth quarter. Our balance sheet and cash flows remain strong. We ended the fiscal fourth quarter with cash and cash equivalents and investment securities of approximately $1.9 billion. This includes approximately $83.9 million of investments related to auction rate securities.

These securities have an estimated temporary valuation adjustment of approximately $3.7 million to reflect their current lack of liquidity. Since this valuation adjustment is deemed temporary, it did not affect the company’s earnings. As we have said in the past and as we have experienced to date, we believe that given the high credit quality of these investments, we will ultimately recover, at par, all amounts invested in these securities.

Inventories continue to be tailored by store to meet the anticipated demands of our customers and are in good condition. As of February 25, 2012, inventories at cost were approximately $2.1 billion or $57.35 per square foot, an increase of approximately 2.1% on a per square foot basis over last year.

Consolidated shareholders equity at February 25, 2012, was approximately $3.9 billion, which is net of share repurchases, including the approximately $359 million, representing approximately 5.9 million shares repurchased during the fiscal fourth quarter of 2011. As of February 25, 2012, the remaining balance of the current share repurchase program authorized in December 2010 was approximately $919 million.

Cash of $1.9 billion comes to $8 per share. The company may want to consider paying a dividend sometime soon. If Apple can do it, so can BBBY.

Posted by on April 4th, 2012 at 10:04 pm


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