JoS. A. Bank Clothiers Income Increases 52% in FY2003; Company
Expects Net Income to Rise at Least 27% in FY2004
HAMPSTEAD, Md.--(BUSINESS WIRE)--March 29, 2004--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market:JOSB) announced that its net
income for the year ended January 31, 2004 ("FY2003") increased 52% to
$16.6 million compared with FY2002 net income of $10.9 million,
representing another year of record earnings for the Company. The
Company also reported that earnings per share for FY2003 increased 45%
to a record $1.49 per share compared with FY2002 earnings per share of
$1.03.
All current and historical earnings per share amounts noted in
this news release represent diluted earnings per share adjusted for a
50% stock dividend that was distributed to stockholders on February
18, 2004.
The Company also announced that it expects net income for the year
ending January 29, 2005 (FY2004) to increase to at least $21 million,
representing at least a 27% increase over the net income in FY2003. To
help support the profit growth, the Company expects to open 55 to 65
stores in FY2004, with at least 20 stores opening in the first half of
FY2004 and the remainder opening in the second half.
"Our increased emphasis on our upscale Signature and Signature
Gold products and our unwavering commitment to quality, service and
product innovation have positioned JoS. A. Bank to become the dominant
upscale menswear brand in the market," said Robert N. Wildrick, Chief
Executive Officer of JoS. A. Bank. "In addition, the decisions we made
to invest in inventory last year have paid off better than
anticipated," continued Mr. Wildrick.
The Company also noted that FY2004 has started very well. As such,
the Company expects first quarter FY2004 earnings per share, at a
minimum, to meet the consensus analyst estimate of $0.27 per share,
which would represent a minimum of a 35% increase compared with
earnings per share of $0.20 in the first quarter of FY2003.
The Company previously reported record sales for the fourth
quarter and fiscal year ended January 31, 2004. Total sales for the
fourth quarter ended January 31, 2004 increased 30% to $100.9 million
compared with sales of $77.9 million in the comparable prior year
period. Total sales for the year ended January 31, 2004 (FY2003)
increased 23% to $299.7 million compared with sales of $243.4 million
in FY2002. Comparable store sales increased 10.7% in the fourth
quarter and 8.2% in FY2003, while combined catalog and internet
sales increased 15.6% and 16.8%, respectively, in the fourth quarter
and fiscal year.
A conference call to discuss this earnings press release will be
held today, Monday, March 29, 2004 at 11:00 a.m. Eastern Time (EST).
To participate in the call today please dial 888-428-4479 at least
five minutes before 11:00 a.m. EST. A replay of the conference call
will be available until April 6, 2004 at 11:59 p.m. EST by dialing
(USA) 800-475-6701 or (International) 320-365-3844. The access code
for the replay will be 719729.
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 214 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.
Consolidated Statements of Income
Fourth Quarters and Years Ended February 1, 2003 and January 31, 2004
(in thousands, except earnings per share amounts)
Fourth Quarter Fiscal Year
------------------ -------------------
2002 2003 2002 2003
-------- --------- --------- ---------
Net sales $77,942 $100,938 $243,436 $299,663
-------- --------- --------- ---------
Gross profit 44,325 59,992 133,600 172,299
Operating expenses:
General and administrative 6,438 8,689 24,310 30,554
Sales and marketing 26,499 33,840 89,015 109,699
Store opening costs 127 321 528 1,539
-------- --------- --------- ---------
Operating income 11,261 17,142 19,747 30,507
Interest expense, net 263 472 1,098 1,623
-------- --------- --------- ---------
Income before provision for
income taxes 10,998 16,670 18,649 28,884
Provision for income taxes 4,588 7,090 7,702 12,281
-------- --------- --------- ---------
Net income $6,410 $9,580 $10,947 $16,603
======== ========= ========= =========
Earnings per share (1)
Net income
Basic $0.69 $0.91 $1.19 $1.69
Diluted $0.59 $0.85 $1.03 $1.49
Weighted average number of
shares outstanding
Basic 9,297 10,500 9,225 9,798
Diluted 10,814 11,256 10,587 11,106
(1) On January 13, 2004, the Company's Board of Directors declared
a 50% common stock dividend payable, on February 18, 2004 to
stockholders of record as of January 30, 2004. All weighted average
share and per share amounts have been adjusted to reflect the stock
dividend.
JoS. A. Bank Clothiers, Inc
Consolidated Balance Sheets
February 1, 2003 and January 31, 2004
(in thousands)
As of
-------------------------
February 1, January 31,
2003 2004
------------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $8,389 $875
Accounts receivable 2,830 4,201
Inventories:
Finished goods 69,311 109,136
Raw materials 8,945 11,652
------------- -----------
Total inventories 78,256 120,788
Prepaid expenses and other current assets 7,071 10,323
Deferred income taxes 54 --
------------- -----------
Total current assets 96,600 136,187
NONCURRENT ASSETS:
Property, plant and equipment, net 37,238 47,401
Deferred financing and other non-current
assets 874 1,235
Deferred income taxes 1,420 1,688
------------- -----------
Total assets $136,132 $186,511
============= ===========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $29,373 $28,748
Accrued expenses 24,143 32,677
Current portion of long-term debt 1,195 1,245
Deferred income taxes -- 1,308
------------- -----------
Total current liabilities 54,711 63,978
NONCURRENT LIABILITIES:
Long term debt, excluding current portion 9,324 28,618
Non-current lease obligations 3,684 5,213
Other non-current liabilities 2,765 1,200
------------- -----------
Total liabilities 70,484 99,009
------------- -----------
STOCKHOLDERS' EQUITY:
Common stock 110 121
Additional paid-in capital 58,968 64,208
Retained earnings 11,628 28,231
Treasury stock (5,058) (5,058)
------------- -----------
Total stockholders' equity 65,648 87,502
------------- -----------
Total liabilities and stockholders'
equity $136,132 $186,511
============= ===========
JoS. A. Bank Clothiers, Inc
Consolidated Statements of Cash Flows
Fourth Quarters and Years Ended February 1, 2003 (2002) and
January 31, 2004 (2003)
(in thousands)
Fourth Quarter Fiscal Year
-------------------- -------------------
2002 2003 2002 2003
----------- -------- --------- ---------
Cash flows from operating
activities:
Net income $6,410 $9,580 $10,947 $16,603
Adjustments to reconcile
net income to net cash
provided by (used in)
operating activities:
Deferred income taxes 2,313 1,094 2,313 1,094
Depreciation and
amortization 1,498 2,433 5,642 7,575
Loss on disposals of
property 50 29 50 29
Income tax benefit from
exercise of non-qualified
stock options 667 1,281 667 1,528
Changes in assets and
liabilities:
(Increase) decrease in
accounts receivable 2,041 2,173 (466) (1,371)
(Increase) decrease in
inventories (1,090) 8,790 (13,614) (42,532)
Increase in prepaid
expenses and other assets (692) (1,952) (1,296) (3,653)
Increase (decrease) in
accounts payable 2,361 (6,571) 12,845 (625)
Increase in accrued
expenses 1,563 7,948 2,114 8,534
(Decrease) increase in
other non-current
liabilities 987 (36) 987 (36)
----------- -------- --------- ---------
Net cash provided by
(used in) operating
activities 16,108 24,769 20,189 (12,854)
----------- -------- --------- ---------
Cash flows from investing
activities:
Capital expenditures (1,225) (5,013) (8,290) (17,727)
----------- -------- --------- ---------
Net cash used in
investing activities (1,225) (5,013) (8,290) (17,727)
----------- -------- --------- ---------
Cash flows from financing
activities:
Borrowings under long-term
credit facility 3,208 15,702 40,412 87,165
Repayment under long-term
credit facility (9,621) (34,983) (50,190) (66,688)
Borrowings of other long-
term debt -- -- 4,675 --
Repayment of other long-
term debt (316) (249) (1,016) (1,133)
Net proceeds from issuance
of common stock (671) 67 1,782 3,723
----------- -------- --------- ---------
Net cash (used in)
provided by financing
activities (7,400) (19,463) (4,337) 23,067
----------- -------- --------- ---------
Net increase (decrease)
in cash and cash
equivalents 7,483 293 7,562 (7,514)
Cash and cash equivalents,
beginning of period 906 582 827 8,389
----------- -------- --------- ---------
Cash and cash equivalents,
end of period $8,389 $875 $8,389 $875
=========== ======== ========= =========
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead
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
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com