Exhibit 99.1
S & K FAMOUS BRANDS REPORTS THIRD QUARTER AND NINE MONTH RESULTS
Richmond, VA, November 25, 2003--S&K Famous Brands, Inc. (NASDAQ:SKFB,
www.skmenswear.com) today announced results for the third quarter and nine
months ended November 1, 2003.
Net income for the third quarter ended November 1, 2003 was $186,000 or $0.07
per diluted share compared to a loss of ($202,000), or ($0.08) per diluted
share, in the same period last year. Total sales for the quarter were $38.4
million compared to $36.1 million for the same quarter of last year. Same-store
sales for the third quarter increased 6%.
For the nine months ended November 1, 2003 net income was $2,048,000, or $0.82
per diluted share, compared to $1,326,000, or $0.44 per diluted share, for the
same period last year. Total sales for the nine months ended November 1, 2003
were $120.1 million compared to $114.0 million for the first nine months of last
year. Same-store sales for the nine months increased approximately 5% over last
year.
Stewart M. Kasen, President and Chief Executive Officer, said, "We are pleased
with the Company's third quarter earnings representing improved performance
compared with last year. On a year-to-date basis net income is up 54% and book
value now exceeds $18.90 per share. We look forward to the upcoming holiday
season."
The Company also announced that it has granted performance awards to better tie
long-term employee incentive compensation to Company performance. Approximately
331,000 performance awards were granted to officers of the company, and are
earned at the end of a four-year period ending January 2007. At that time,
between 166,000 and 331,000 of these awards will be earned at a value equal to a
share of the Company's common stock dependent upon the Company's achievement of
annual compounded earnings growth between 10% and 20%. If the Company meets
earnings objectives there will be corresponding charges to earnings. If there is
a charge for the fiscal year ending January 2004, it would be recognized in the
fourth quarter. None of the awards will be earned if annual compound earnings
growth is below 10%. Mr. Kasen said, "We believe this incentive better aligns
shareholder and employee interests rather than the previous practice of granting
stock options."
The Company recently completed its store expansion for the year. During the year
the Company opened seven new stores in North Carolina, South Carolina, Tennessee
and Virginia. Four stores were relocated in Georgia and New York. During the
year the Company closed four stores which had not met the Company's sales and
profitability expectations in New York, Texas and Virginia.
S&K Famous Brands, Inc. is a retailer of value-priced menswear operating 239
stores in 27 states reaching from the East Coast to Texas and from Maine to
Florida. S&K offers a complete line of men's apparel generally priced 20-40%
below department store and specialty store regular prices. For more information,
go to our Web site at www.skmenswear.com.
(Financial Tables to Follow)
Except for historical information contained herein, the statements in this
release may be forward-looking and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause the Company's actual results in future periods to differ
materially from forecasted or expected results. Those risks include, among other
things, the competitive environment in the value-priced men's apparel industry
in general and in the Company's specific market area, inflation, changes in
costs of goods and services and economic conditions in general and in the
Company's specific market area. Those and other risks are more fully described
in the Company's filings with the Securities and Exchange Commission.
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S & K FAMOUS BRANDS REPORTS THIRD QUARTER AND NINE MONTH RESULTS
S & K FAMOUS BRANDS, INC.
STATEMENTS OF INCOME
(unaudited)
($ and shares in 000s, except per share data) Three Months Ended Nine Months Ended
------------------------------ ----------------------------
November 1, November 2, November 1, November 2,
2003 2002 2003 2002
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Net sales $38,445 $36,108 $120,060 $113,993
Cost of sales....................................... 20,134 18,621 62,482 59,020
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Gross profit........................................ 18,311 17,487 57,578 54,973
Other costs and expenses:
Selling, general and administrative.............. 17,020 16,893 51,544 50,341
Interest......................................... 140 144 357 311
Depreciation and amortization.................... 789 812 2,366 2,399
Other, net....................................... 62 (36) 8 (217)
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Income (loss) before income taxes................... 300 (326) 3,303 2,139
Provision for income taxes.......................... 114 (124) 1,255 813
------------------------------ ----------------------------
Net income (loss)................................... $ 186 $ (202) $2,048 $1,326
============================== ============================
Diluted net earnings per share...................... $ 0.07 $ (0.08) $ 0.82 $ 0.44
============================== ============================
Weighted average common shares outstanding plus
dilutive potential common shares................. 2,527 2,524 2,504 3,004
============================== ============================
Effective income tax rate........................... 38.0% 38.0% 38.0% 38.0%
============================== ============================
CONDENSED BALANCE SHEETS
(unaudited)
($ in 000s) November 1, November 2,
2003 2002
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Assets:
Inventory.............................................. $59,778 $56,663
Other current assets................................... 4,556 4,738
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Total current assets............................... 64,334 61,401
Property and equipment, net............................ 15,575 16,335
Other assets........................................... 7,383 7,075
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$87,292 $84,811
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Liabilities and Shareholders' Equity:
Accounts payable....................................... $18,478 $20,107
Other current liabilities.............................. 5,401 4,178
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Total current liabilities.......................... 23,879 24,285
Long-term debt......................................... 13,209 13,456
Other long-term liabilities............................ 1,731 1,664
Deferred income taxes.................................. 1,502 1,485
Shareholders' equity................................... 46,971 43,921
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$87,292 $84,811
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