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þ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware (State or other jurisdiction of incorporation or organization) | 36-3189198 (I.R.S. Employer Identification Number) | |
500 Hanover Pike, Hampstead, MD (Address of Principal Executive Offices) | 21074-2095 (Zip Code) |
(Registrant’s telephone number including area code)
(Former name or former address, if changed since last report)
Large accelerated filero | Accelerated filerþ | Non-accelerated filero(Do not check if smaller reporting company) | Smaller reporting companyo |
Class | Outstanding as of May 26, 2010 | |
Common Stock, $.01 par value | 18,351,162 |
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EXPLANATORY NOTE
This Amendment No. 1 to our Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2010, as originally filed with the Securities and Exchange Commission on June 2, 2010 (the “Form 10-Q”), is being filedsolely to amend the Signatures pageby adding the signature of the Principal Financial and Accounting Officer.
This Amendment No. 1, which includes the full text of our original filing, does not reflect events occurring after the original date of filing of the Form 10-Q, or modify or update in any way the information contained in the Form 10-Q.
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Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 |
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Item 1. | Unaudited Condensed Consolidated Financial Statements |
(In thousands except per share data)
(Unaudited)
Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Net sales | $ | 161,925 | $ | 178,125 | ||||
Cost of goods sold | 63,471 | 64,809 | ||||||
Gross profit | 98,454 | 113,316 | ||||||
Operating expenses: | ||||||||
Sales and marketing, including occupancy costs | 64,945 | 70,519 | ||||||
General and administrative | 14,660 | 16,736 | ||||||
Total operating expenses | 79,605 | 87,255 | ||||||
Operating income | 18,849 | 26,061 | ||||||
Other income (expense): | ||||||||
Interest income | 69 | 115 | ||||||
Interest expense | (98 | ) | (90 | ) | ||||
Total other income (expense) | (29 | ) | 25 | |||||
Income before provision for income taxes | 18,820 | 26,086 | ||||||
Provision for income taxes | 7,365 | 10,278 | ||||||
Net income | $ | 11,455 | $ | 15,808 | ||||
Per share information: | ||||||||
Earnings per share: | ||||||||
Basic | $ | 0.63 | $ | 0.86 | ||||
Diluted | $ | 0.62 | $ | 0.85 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 18,291 | 18,351 | ||||||
Diluted | 18,504 | 18,545 |
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(In Thousands)
January 30, 2010 | May 1, 2010 | |||||||
(Audited) | (Unaudited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 21,853 | $ | 46,649 | ||||
Short-term investments | 169,736 | 139,689 | ||||||
Accounts receivable, net | 5,860 | 15,481 | ||||||
Inventories: | ||||||||
Finished goods | 209,443 | 213,364 | ||||||
Raw materials | 8,878 | 8,838 | ||||||
Total inventories | 218,321 | 222,202 | ||||||
Prepaid expenses and other current assets | 16,035 | 16,303 | ||||||
Total current assets | 431,805 | 440,324 | ||||||
NONCURRENT ASSETS: | ||||||||
Property, plant and equipment, net | 124,139 | 126,259 | ||||||
Other noncurrent assets | 420 | 524 | ||||||
Total assets | $ | 556,364 | $ | 567,107 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 18,225 | $ | 30,701 | ||||
Accrued expenses | 85,256 | 69,665 | ||||||
Deferred tax liability — current | 5,064 | 5,064 | ||||||
Total current liabilities | 108,545 | 105,430 | ||||||
NONCURRENT LIABILITIES: | ||||||||
Deferred rent | 51,853 | 50,582 | ||||||
Deferred tax liability — noncurrent | 1,608 | 795 | ||||||
Other noncurrent liabilities | 1,048 | 1,182 | ||||||
Total liabilities | 163,054 | 157,989 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock | 183 | 183 | ||||||
Additional paid-in capital | 83,249 | 83,249 | ||||||
Retained earnings | 309,823 | 325,631 | ||||||
Accumulated other comprehensive income | 55 | 55 | ||||||
Total stockholders’ equity | 393,310 | 409,118 | ||||||
Total liabilities and stockholders’ equity | $ | 556,364 | $ | 567,107 | ||||
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(In Thousands)
(Unaudited)
Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 11,455 | $ | 15,808 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation and amortization | 5,433 | 5,856 | ||||||
Loss on disposals of property, plant and equipment | 36 | 23 | ||||||
Increase (decrease) in deferred taxes | 192 | (813 | ) | |||||
Net increase in operating working capital and other components | (23,066 | ) | (22,147 | ) | ||||
Net cash used in operating activities | (5,950 | ) | (1,273 | ) | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (4,942 | ) | (3,978 | ) | ||||
Proceeds from disposal of fixed assets | — | — | ||||||
Net proceeds from short-term investments | — | 30,047 | ||||||
Net cash provided by (used in) investing activities | (4,942 | ) | 26,069 | |||||
Cash flows from financing activities: | ||||||||
Income tax benefit from exercise of stock options | — | — | ||||||
Net proceeds from exercise of stock options | — | — | ||||||
Net cash provided by financing activities | — | — | ||||||
Net increase (decrease) in cash and cash equivalents | (10,892 | ) | 24,796 | |||||
Cash and cash equivalents — beginning of period | 122,875 | 21,853 | ||||||
Cash and cash equivalents — end of period | $ | 111,983 | $ | 46,649 | ||||
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(Unaudited)
Fiscal year 2005 | January 28, 2006 | |||
Fiscal year 2006 | February 3, 2007 | |||
Fiscal year 2007 | February 2, 2008 | |||
Fiscal year 2008 | January 31, 2009 | |||
Fiscal year 2009 | January 30, 2010 | |||
Fiscal year 2010 | January 29, 2011 |
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Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Increase in accounts receivable | $ | (2,163 | ) | $ | (9,621 | ) | ||
Increase in inventories | (826 | ) | (3,881 | ) | ||||
(Increase) decrease in prepaids and other assets | 937 | (372 | ) | |||||
Increase (decrease) in accounts payable | (3,815 | ) | 12,476 | |||||
Decrease in accrued expenses | (16,558 | ) | (19,612 | ) | ||||
Decrease in deferred rent and other noncurrent liabilities | (641 | ) | (1,137 | ) | ||||
Net increase in operating working capital and other components | $ | (23,066 | ) | $ | (22,147 | ) | ||
Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Interest paid | $ | 92 | $ | 86 | ||||
Income taxes paid | $ | 19,490 | $ | 26,585 |
Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Weighted average shares outstanding for basic EPS | 18,291 | 18,351 | ||||||
Dilutive effect of common stock equivalents | 213 | 194 | ||||||
Weighted average shares outstanding for diluted EPS | 18,504 | 18,545 | ||||||
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Corporate and | ||||||||||||||||
Stores | Direct Marketing | Other | Total | |||||||||||||
Net sales(a) | $ | 159,812 | $ | 15,336 | $ | 2,977 | $ | 178,125 | ||||||||
Depreciation and amortization | 5,069 | 115 | 672 | 5,856 | ||||||||||||
Operating income (loss) (b) | 37,855 | 6,321 | (18,115 | ) | 26,061 | |||||||||||
Capital expenditures(c) | 2,404 | 47 | 1,527 | 3,978 |
Corporate and | ||||||||||||||||
Stores | Direct Marketing | Other | Total | |||||||||||||
Net sales(a) | $ | 143,771 | $ | 15,426 | $ | 2,728 | $ | 161,925 | ||||||||
Depreciation and amortization | 4,780 | 11 | 642 | 5,433 | ||||||||||||
Operating income (loss)(b) | 27,496 | 6,452 | (15,099 | ) | 18,849 | |||||||||||
Capital expenditures(c) | 3,978 | 664 | 300 | 4,942 |
(a) | Stores net sales represent all Full-line Store sales. Direct Marketing net sales represent catalog call center and Internet sales. Net sales from segments below the GAAP quantitative thresholds are attributable primarily to three operating segments of the Company. Those segments are outlet stores, franchise stores and regional tailor shops. None of these segments have ever met any of the quantitative thresholds for determining reportable segments and are included in “Corporate and Other.” | |
(b) | Operating income (loss) for the Stores and Direct Marketing segments represents profit before allocations of overhead from the corporate office and the distribution centers, interest and income taxes (“four wall” contribution). Total Company shipping costs to customers of approximately $1.8 million and $2.3 million for the first quarter of fiscal years 2009 and 2010, respectively, which primarily related to the Direct Marketing segment, were recorded to “Sales and marketing, including occupancy costs” in the Consolidated Statements of Income. Operating income (loss) for “Corporate and Other” consists primarily of costs included in general and administrative costs. Total operating income represents profit before interest and income taxes. | |
(c) | Capital expenditures include payments for property, plant and equipment made for the reportable segment. |
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Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | 10.0% increase in net sales, driven by a 11.2% increase in the Stores segment partially offset by a 0.6% decrease in the Direct Marketing segment; | ||
• | 10.4% increase in comparable store sales; | ||
• | 280 basis point increase in gross profit margins, with the Direct Marketing Segment increasing more than the overall Company; | ||
• | 50 basis point decrease in sales and marketing costs as a percentage of sales driven primarily by the leveraging of occupancy and payroll costs, partially offset by higher advertising and marketing costs and other variable selling costs as a percentage of sales; and | ||
• | 30 basis point increase in general and administrative costs as a percentage of sales. |
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Percentage of Net Sales | ||||||||
Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Net sales | 100.0 | % | 100.0 | % | ||||
Cost of goods sold | 39.2 | 36.4 | ||||||
Gross profit | 60.8 | 63.6 | ||||||
Sales and marketing expenses | 40.1 | 39.6 | ||||||
General and administrative expenses | 9.1 | 9.4 | ||||||
Total operating expenses | 49.2 | 49.0 | ||||||
Operating income | 11.6 | 14.6 | ||||||
Total other income | — | — | ||||||
Income before provision for income taxes | 11.6 | 14.6 | ||||||
Provision for income taxes | 4.5 | 5.8 | ||||||
Net income | 7.1 | % | 8.9 | % | ||||
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Three Months Ended | ||||||||||||||||
May 2, 2009 | May 1, 2010 | |||||||||||||||
Square | Square | |||||||||||||||
Stores | Feet* | Stores | Feet* | |||||||||||||
Stores open at the beginning of the period | 460 | 2,091 | 473 | 2,131 | ||||||||||||
Stores opened | 3 | 13 | 3 | 11 | ||||||||||||
Stores closed | — | — | — | — | ||||||||||||
Stores open at the end of the period | 463 | 2,104 | 476 | 2,142 | ||||||||||||
* | Square feet is presented in thousands and excludes the square footage of the Company’s franchise stores. |
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Three Months Ended | ||||||||
May 2, 2009 | May 1, 2010 | |||||||
Cash provided by (used in): | ||||||||
Operating activities | $ | (5,950 | ) | $ | (1,273 | ) | ||
Investing activities | (4,942 | ) | 26,069 | |||||
Financing activities | — | — | ||||||
Net increase (decrease) in cash and cash equivalents | $ | (10,892 | ) | $ | 24,796 | |||
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Amounts | ||||||||||||||||
Amounts | Collected | |||||||||||||||
Collected in | YTD in | Amounts | ||||||||||||||
Negotiated | Fiscal Year | Fiscal Year | Outstanding | |||||||||||||
Amounts | 2009 | 2010 | May 1, 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Full Fiscal Year 2009 Store Openings (14 Stores) | $ | 2,829 | $ | 2,170 | $ | 572 | $ | 87 | ||||||||
First Quarter Fiscal Year 2010 Store Openings (3 Stores) | 338 | — | 30 | 308 | ||||||||||||
$ | 3,167 | $ | 2,170 | $ | 602 | $ | 395 | |||||||||
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Payments Due by Fiscal Year | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beyond | ||||||||||||||||||||
2010 | 2011-2013 | 2014-2015 | 2015 | Total(d) | ||||||||||||||||
Operating leases(a) (b) | $ | 58,224 | $ | 165,396 | $ | 74,619 | $ | 65,827 | $ | 364,066 | ||||||||||
Related Party Agreement(c) | 825 | 825 | — | — | 1,650 | |||||||||||||||
License agreement (e) | 165 | 495 | 330 | — | 990 |
(a) | Includes various lease agreements for stores to be opened and equipment placed in service subsequent to May 1, 2010. | |
(b) | Excludes contingent rent and other lease costs. | |
(c) | Relates to consulting agreement with the Company’s current Chairman of the Board to consult on matters of strategic planning and initiatives. | |
(d) | Obligations related to unrecognized tax benefits and related penalties and interest of $0.8 million have been excluded from the above table as the amount to be settled in cash and the specific payment dates are not known. | |
(e) | Related to an agreement with David Leadbetter, a golf professional, which allows the Company to produce golf and other apparel under his name. |
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31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
32.2 | Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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Jos. A. Bank Clothiers, Inc. (Registrant) | ||||
Dated: June 9, 2010 | /s/ R. NEAL BLACK | |||
R. Neal Black | ||||
President and Chief Executive Officer | ||||
Dated: June 9, 2010 | /s/ DAVID E. ULLMAN | |||
David E. Ullman | ||||
Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) | ||||
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31.1 | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
32.2 | Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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