Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q1 2019 Earnings Conference Call - Final Transcript

Jul 10, 2019 • 05:00 pm ET

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Bed Bath & Beyond Inc. (NASDAQ:BBBY) Q1 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Bobby Griffin from Raymond James. Your line is open.

Analyst
Budd Bugatch

Good afternoon. It's actually Budd Bugatch for Bobby. He's traveling today. So I have something for him. Congratulations Mary. Good luck to you on the -- your interim role and we wish you the best on that. I have a few questions, if I could. The first question is, can you talk a little bit about the NGS stores? There are now how many of them? And what is the performance of those? And is the plan still to roll those out?

Executive
Mary Winston

Thank you for the kind comments. So in terms of the NGS stores, yes, that is still priority. We have 34 stores right now. We're still seeing good results. We are refining what we see in the stores and continuing to update and continuing to roll that out, so that program is continuing to be one of our top priorities.

And again, as...

Analyst
Budd Bugatch

By the end, you're...

Executive
Mary Winston

As I said in my prepared remarks, we are taking a look though at all of the initiatives. We'll be looking at that one as well. And again, as you know, it's still early days, but the performance on that looks good and we're getting good information and we can help -- that will help us transform our store experience.

Analyst
Budd Bugatch

Okay. And Robyn, on the charge of the goodwill and the other intangibles, is that just related to the market cap fall? Is it attached to any of the particular items or items of goodwill on the balance sheet?

Executive
Robyn D'Elia

The most significant component of the charge is related to goodwill. And just as a point of reference, goodwill is now down to zero on the balance sheet. But there was some residual impact related to the trade names for some of the acquisitions that we've had throughout the years.

Analyst
Budd Bugatch

Okay. And when you look at the cash flow for the -- cash flow from operations or free cash, that was significantly below last year. I suspect that includes some of the unusual items -- the severance and the shareholder activity cost. What was the net impact of those unusual items on cash in the quarter?

Executive
Robyn D'Elia

I don't have that component piece broken out right in front of me, but we can certainly give you a call with that information.

Analyst
Budd Bugatch

Okay. And the guidance, forward guidance, does not include any more one-time charges or called-out items? Or are you unable to predict those at this point in time?

Executive
Robyn D'Elia

No, the guidance that we're providing would be excluding what's happened to date and any other one-time items. It's really guidance from an operational perspective.

Analyst
Budd Bugatch

Right. And are there any other one-time items that you can see at this point in time?

Executive
Robyn D'Elia

Nothing built into the plan.

Operator
Operator

Our next question comes from Jamie Katz from Morningstar. Jamie, your line is open.

Analyst
Jaime M. Katz

Hi. Thanks for taking my questions. I'm curious, I