UNION, N.J., Oct. 28, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (NASDAQ: BBBY) announced today a share repurchase
program totaling up to $675 million
over the next three years. As part of the program, the
Company has entered into an accelerated share repurchase agreement
(ASR) to repurchase an aggregate of $225
million of Bed Bath & Beyond's common stock.
"We're focused on maximizing value for our shareholders and the
ASR reflects our commitment to returning capital as part of a
balanced approach to drive shareholder value creation and
sustainable growth for the business. Our decision to resume
our share buyback program coupled with our actions to date to pay
down debt, sell non-core assets and increase liquidity, reflect the
strength of our business and financial position, capacity for
strategic investments, disciplined approach to capital allocation
and our confidence in our growth plan," said President and Chief
Executive Officer Mark Tritton.
Under the terms of the ASR, the purchase price per share will be
determined based on the daily volume-weighted average stock price
over the term of the ASR, less an agreed discount and subject to
adjustments. The final number of shares repurchased under the
ASR will be determined based on such purchase price. The
final settlement of the transaction is expected to occur no later
than the end of the Company's fiscal 2020 fourth quarter ending on
February 27, 2021. JPMorgan
Chase Bank, National Association acted as sole counterparty to the
ASR agreement.
Bed Bath & Beyond is funding the share repurchases under the
ASR with existing cash resources primarily generated from the
monetization of some non-core assets. In addition to the
accelerated share buyback that will occur in fiscal 2020, the
Company expects to return up to $150
million per year in share repurchases over the next three
years for a total share repurchase program of up to $675 million. In March of 2020, the Company
suspended its previously authorized share repurchase program as
part of the decisive actions taken to proactively manage the
unprecedented financial and operational impacts of COVID-19.
Since that time, the Company has continued to prioritize
investments that would allow it to rebuild and grow, while reducing
its cost structure and enhancing its financial flexibility.
2020 Virtual Investor Day
Today, Bed Bath & Beyond Inc. will host a Virtual Investor
Day during which, among other things, it will discuss the ASR
within the context of its capital allocation priorities that
include investing for growth and transformation, ensuring financial
resilience and returning cash to shareholders.
The live webcast of the Company's Investor Day presentation is
scheduled to begin at 9:00am EDT
today, October 28, 2020, and can be
accessed at
https://2020virtualinvestorday.bedbathandbeyond.com/investor-day-2020.
A replay of the Investor Day presentation will be available
on the Company's investor relations website after the meeting.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that makes it easy for our customers to
feel at home. The Company sells a wide assortment of merchandise in
the Home, Baby, Beauty and Wellness markets. Additionally, the
Company is a partner in a joint venture which operates retail
stores in Mexico under the name
Bed Bath & Beyond.
Forward Looking Statements
This press release contains forward-looking statements,
including, but not limited to, the Company's progress and
anticipated progress towards its long-term objectives, plans with
respect to potential asset sales, as well as more generally the
status of its future liquidity and financial condition. Many of
these forward-looking statements can be identified by use of words
such as may, will, expect, anticipate, approximate, estimate,
assume, continue, model, project, plan, goal, and similar words and
phrases, although the absence of those words does not necessarily
mean that statements are not forward-looking. The Company's actual
results and future financial condition may differ materially from
those expressed in any such forward-looking statements as a result
of many factors. Such factors include, without limitation: general
economic conditions including the housing market, a challenging
overall macroeconomic environment and related changes in the
retailing environment; risks associated with COVID-19 and the
governmental responses to it, including its impacts across the
Company's businesses on demand and operations, as well as on the
operations of the Company's suppliers and other business partners,
and the effectiveness of the Company's actions taken in response to
these risks; consumer preferences, spending habits and adoption of
new technologies; demographics and other macroeconomic factors that
may impact the level of spending for the types of merchandise sold
by the Company; civil disturbances and terrorist acts; unusual
weather patterns and natural disasters; competition from existing
and potential competitors across all channels; pricing pressures;
liquidity; the ability to achieve anticipated cost savings, and to
not exceed anticipated costs, associated with organizational
changes and investments, including the Company's strategic
restructuring program; the ability to attract and retain qualified
employees in all areas of the organization; the cost of labor,
merchandise and other costs and expenses; potential supply chain
disruption due to trade restrictions, and other factors such as
natural disasters, pandemics, including the COVID-19 pandemic,
political instability, labor disturbances, product recalls,
financial or operational instability of suppliers or carriers, and
other items; the ability to find suitable locations at acceptable
occupancy costs and other terms 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 assess and implement technologies in support
of the Company's development of its omnichannel capabilities; the
ability to effectively and timely adjust the Company's plans in the
face of the rapidly changing retail and economic environment,
including in response to the COVID-19 pandemic; uncertainty in
financial markets; volatility in the price of the Company's common
stock and its effect, and the effect of other factors, including
the COVID-19 pandemic, on the Company's capital allocation
strategy; risks associated with the ability to achieve a successful
outcome for its business concepts and to otherwise achieve its
business strategies; the impact of intangible asset and other
impairments; disruptions to the Company's information technology
systems including but not limited to security breaches of systems
protecting consumer and employee information or other types of
cybercrimes or cybersecurity attacks; reputational risk arising
from challenges to the Company's or a third party product or
service supplier's compliance with various laws, regulations or
standards, including those related to labor, health, safety,
privacy or the environment; reputational risk arising from
third-party merchandise or service vendor performance in direct
home delivery or assembly of product for customers; changes to
statutory, regulatory and legal requirements, including without
limitation proposed changes affecting international trade; changes
to, or new, tax laws or interpretation of existing tax laws; new,
or developments in existing, litigation, claims or assessments;
changes to, or new, accounting standards; foreign currency exchange
rate fluctuations; and the other factors summarized in the
Company's reports filed with the U.S. Securities and Exchange
Commission. The Company does not undertake any obligation to update
its forward-looking statements.
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SOURCE Bed Bath & Beyond Inc.