Exhibit 99.1
JoS. A. Bank Clothiers Posts 53% Increase in Third Quarter Net Income
HAMPSTEAD, Md.--(BUSINESS WIRE)--Dec. 1, 2003--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market: "JOSB") announces record
sales and earnings for the third quarter and first nine months of
FY2003. These results represent the ninth consecutive quarter of
record earnings per share for the company.
For the third quarter ended November 1, 2003 net income increased
53% to $2.9 million compared with $1.9 million in the same period of
the prior year. The 53% increase in net income follows a 42% rise in
net income in the third quarter of 2002. Earnings per share increased
46% in the third quarter of fiscal 2003, to $0.38 per share compared
with $0.26 per share in the same period of the prior year.
For the first nine months of FY2003, net income increased 56% to
$7.0 million compared with $4.5 million in the same period of the
prior year. Earnings per share increased 46% in the first nine months
of FY2003 to $0.95 per share compared with $0.65 per share in the same
period of the prior year.
All per share amounts noted above represent diluted earnings per
share.
Total net sales for the third quarter ended November 1, 2003
increased 24.4% to $72.0 million compared with $57.9 million in the
same period in 2002. Comparable store sales increased 8.7% while
combined catalog and internet sales increased 25.6% for the third
quarter ended November 1, 2003. Total net sales for the nine months
ended November 1, 2003 increased 20.1% to $198.7 million, compared
with $165.5 million in the comparable prior-year period. Comparable
store sales increased 7.2%, while combined catalog and internet sales
increased 17.5%, for the nine months ended November 1, 2003.
A conference call to discuss this press release is scheduled for
today, December 1, 2003 at 11:00a.m. Eastern Time. To participate in
the call, please call 888-428-4480 a few minutes before 11:00 a.m.
Eastern Time. A replay of the conference call will be available until
December 9, 2003 by dialing (USA) 800-475-6701 or (International)
320-365-3844. The access code for the replay will be 696818.
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the
nation's leading retailers of men's classically-styled tailored and
casual clothing, sportswear, footwear and accessories. The Company
sells its full product line through 209 stores in 35 states and the
District of Columbia, a nationwide catalog, and an e-commerce website
that can be accessed at www.josbank.com. The Company is headquartered
in Hampstead, MD, and its common stock is listed on the Nasdaq
National Market under the symbol "JOSB".
The Company's statements concerning future operations contained
herein are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those forecast due to a variety of factors
outside of the Company's control that can affect the Company's
operating results, liquidity and financial condition such as risks
associated with economic, weather, public health and other factors
affecting consumer spending, the ability of the Company to finance its
expansion plans, the mix and pricing of goods sold, the market price
of key raw materials such as wool and cotton, availability of lease
sites for new stores, the ability to source product from its global
supplier base and other competitive factors. These cautionary
statements qualify all of the forward-looking statements the Company
makes herein. The Company cannot assure you that the results or
developments anticipated by the Company will be realized or, even if
substantially realized, that those results or developments will result
in the expected consequences for the Company or affect the Company,
its business or its operations in the way the Company expects. The
Company cautions you not to place undue reliance on these
forward-looking statements, which speak only as of their respective
dates, and assumes no obligation to update any of the forward-looking
statements. These risks should be carefully reviewed before making any
investment decision.
JoS. A. Bank Clothiers, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
(in thousands, except earnings per share)
Three Months Ended Nine Months Ended
------------------ -----------------
November 1, November 2, November 1, November 2,
2003 2002 2003 2002
------------ ------------ ------------- ---------------
Net sales $72,011 100%$57,866 100%$198,725 100%$ 165,494 100%
------- ------- -------- ----------
Cost of goods
sold: 30,439 42.3% 25,391 43.9% 86,418 43.5% 76,219 46.1%
------- ------- -------- ----------
Gross profit 41,572 57.7% 32,475 56.1% 112,307 56.5% 89,275 53.9%
General and
administrative 7,946 11.0% 6,583 11.4% 21,865 11.0% 17,872 10.8%
Sales and
marketing 27,498 38.2% 22,187 38.3% 75,859 38.2% 62,516 37.8%
Store opening
cost 626 0.9% 201 0.3% 1,218 0.6% 401 0.2%
------- ------- -------- ----------
Operating
income 5,502 7.5% 3,504 6.1% 13,365 6.7% 8,486 5.1%
Interest
expense, net 466 0.6% 290 0.5% 1,151 0.6% 835 0.5%
------- ------- -------- ----------
Income before
provision for
income taxes 5,036 7.0% 3,214 5.6% 12,214 6.1% 7,651 4.6%
Provision for
income taxes 2,173 3.0% 1,350 2.3% 5,191 2.6% 3,114 1.9%
------- ------- -------- ----------
Net
income $ 2,863 4.0%$ 1,864 3.2%$ 7,023 3.5%$ 4,537 2.7%
======= ======= ======== ==========
Earnings per
share:
Net income:
Basic $ 0.43 $ 0.30 $ 1.10 $ 0.74
Diluted $ 0.38 $ 0.26 $ 0.95 $ 0.65
Weighted
average shares
outstanding:
Basic 6,702 6,188 6,376 6,134
Diluted 7,510 7,122 7,370 7,007
JoS. A. Bank Clothiers, Inc. and Subsidiaries
Consolidated Balance Sheets
(In Thousands)
November 1, February 2, November 2,
2003 2003 2002
-------- ------- ----------
(unaudited) (audited) (unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 582 $ 8,389 $ 906
Accounts receivable, net 6,374 2,830 4,871
Inventories:
Raw materials 11,926 8,945 4,791
Finished goods 117,652 69,311 72,375
-------- -------- --------
Total inventories
(Note 1) 129,578 78,256 77,166
-------- -------- --------
Prepaid expenses and other
current assets 8,825 7,071 7,732
-------- -------- --------
Total current assets 145,359 96,546 90,675
-------- -------- --------
NONCURRENT ASSETS:
Property, plant and
equipment at cost 85,925 74,196 71,539
Accumulated depreciation
and amortization (41,780) (37,623) (36,077)
-------- -------- --------
Net property, plant and
equipment 44,145 36,573 35,462
Other noncurrent assets,
net 821 874 955
-------- -------- --------
Total assets $190,325 $133,993 $127,092
======== ======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 35,319 $ 29,373 $ 27,012
Accrued expenses 25,899 24,569 20,556
Current portion of long-
term debt 1,255 1,195 1,204
-------- -------- --------
Total current
liabilities 62,473 55,137 48,772
-------- -------- --------
NONCURRENT LIABILITIES:
Long-term debt, net of
current portion 48,138 9,324 16,044
Deferred rent and other
noncurrent liabilities 3,387 3,884 3,034
-------- -------- --------
Total liabilities 113,998 68,345 67,850
-------- -------- --------
STOCKHOLDERS' EQUITY:
Common stock 81 73 73
Additional paid-in capital 62,653 59,005 59,009
Retained earnings 18,651 11,628 5,218
-------- -------- --------
81,385 70,706 64,300
Treasury stock (5,058) (5,058) (5,058)
-------- -------- --------
Total stockholders'
equity 76,327 65,648 59,242
-------- -------- --------
Total liabilities and
stockholders' equity $190,325 $133,993 $127,092
======== ======== ========
Note 1: Total quarter-end inventories at the end of the third
quarter of 2003 increased approximately $52.4 million compared
with the third quarter of 2002. The following are the major
components (in millions):
-- The Company opened and stocked 47 new stores
since the end of the third quarter of fiscal 2002 $20.7
-- Net increase in inventories purchased for new
stores to be opened after the end of the third
quarter of fiscal 2003 1.7
-- Raw material (wool) added as part of the
Company's increasing efforts to cut out the
middleman (agent and brokers) in its inventory
sourcing process to improve gross profit margin 7.1
-- Inventory purchases as part of the Company's
plan to increase comparable store inventories
which the Company believed were too low at the end
of the third quarter of 2002; comparable store
inventories were increased by approximately 8%
compared with the desired levels of 2001 which the
Company believes is the more appropriate operating
levels - these levels are consistent with the
comparable store sales increase of approximately
6% over the same time frame 10.6
-- Inventory purchases as part of the Company's
plan to increase the safety stock of certain
basic products to develop flexibility in
growing the chain by ensuring that inventory is
readily available to support higher sales. 5.1
-- Assortment expansion, seasonal clearance
merchandise and other 7.2
------------
Total inventory increase $52.4
============
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD
Robert N. Wildrick, CEO, 410-239-5711
or
David E. Ullman, EVP/CFO, 410-239-5715
or
RJ Falkner and Company, Inc.
Investor Relations Counsel
R. Jerry Falkner, CFA, 800-377-9893
info@rjfalkner.com
or
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com