Cancellation or forgiveness of debt is, of course, considered as income. According to page 15 of a prospectus issued in November, BBBY has been using those assets to repurchase and retire some of its unsecured debt:īBBY Private Bond Exchanges (BBBY (SEC filings))įor our purpose, the important point of this disclosure is that various holders of BBBY's unsecured debt (the " Notes" they refer to) surrendered $$154.5 million which BBBY then cancelled. This posting is a follow-up to my recent article " Bed Bath & Beyond: Approximately 600 Million More Shares Available" wherein I pointed out that significant BBBY assets wholly were BBBY's treasury stock holdings (approximately 250 million shares) and BBBY's ability to issue, without shareholder consent, a further approximately 350 million shares. However the net-of-impairment loss of $292.2 million, while bad, looks less terrible, particularly when compared (as the company did in the 1/05 Update) to the Q3 '21 loss of $276.4 million. So was liquidity of $500 million (down from $850 million on 9/24 according to management on the Q2 conference call). Non-Cash IncomeĪn initial perusal of the Announcement shows one interesting anomaly. The (not very palatable) icing on the cake was the comparable sales decline for the company's buybuy BABY brand (considered by some to be the company's crown jewel) "in the low-twenties percent range". This comparable sales number excludes the effect on sales of the on-going store closure program, emphasizing the problems with retaining customers and maintaining inventory referred to in the 1/05 Update. In my opinion, the comparable sales number was worse news than the bottom line loss. Analysts were expecting a $2.81 loss per share, but the results were much worse: Their idiosyncratic fiscal year means the it includes Black Friday and half of the Thanksgiving weekend, but the rest of the holiday season is in Q4, of which more later. Third quarter is not traditionally BBBY's best quarter, but nor is it the worst. However, as I write, (around 11 pm NY time on Jan 12), the 10-Q has still not been filed. ![]() On January 10, pre-market, the company did release earnings, in a press release (the " Announcement"), followed by a brief conference call (the " Call"). The earnings were announced late - they were due on January 5, and so on January 5 the company announced that the earnings and the associated 10-Q would be delayed until January 10 and also gave a brief business update (the " 1/05 Update "). ![]() Bed, Bath and Beyond ( BBBY) announced earnings for their fiscal third quarter, which ended 11/26/22 on January 10.
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