Exhibit 99.1
JoS. A. Bank Clothiers Reports Preliminary 2004 Results;
Net Income Increases 50% in FY2004;
Company Expects Record Earnings in FY2005
HAMPSTEAD, Md.--(BUSINESS WIRE)--April 4, 2005--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market:JOSB) announces today
preliminary results for its year ended January 29, 2005 (FY2004).
The Company's preliminary results reflect a) net income for FY2004
increased 50% to $24.5 million, compared with FY2003 net income of
$16.3 million; and b) earnings per share for FY2004 increased 47% to
$1.72, compared with FY2003 earnings per share of $1.17, representing
another year of record earnings.
The Company also announces that it expects earnings per share for
the year ending January 28, 2006 (FY2005) to increase to at least
$2.00 to $2.05. To help support the continued profit growth, the
Company expects to open 60 to 75 stores in FY2005, with 18 to 20
stores opening in the first half of FY2005 and the remainder opening
in the second half.
All current and historical earnings per share amounts noted in
this news release represent diluted earnings per share adjusted for
two stock dividends that were distributed to stockholders in FY2004.
Attached hereto are the preliminary restatements of the Company's
FY2003 financial statements and the preliminary presentation of the
Company's FY2004 financial statements. As more fully set forth in the
Company's Current Report on Form 8-K filed with the Securities and
Exchange Commission (the "SEC") on February 25, 2005, and like many
other companies in the retail industry, the Company has determined to
restate certain of its financial statements in light of the views
expressed on February 7, 2005 by the Office of the Chief Accountant of
the SEC concerning certain operating lease accounting issues and their
application under generally accepted accounting principles. Because
the Company's review has not been completed and audited by its
registered public accounting firms, all results presented in this
press release are preliminary and unaudited.
The Company previously reported record sales for the fourth
quarter and FY2004. Total sales for the fourth quarter of FY2004
increased 26.8% to $127.9 million, compared with sales of $100.9
million in the prior year period. Total sales for FY2004 increased
24.3% to $372.5 million, compared with sales of $299.7 million in the
prior fiscal year. Comparable store sales rose 9.4% in the fourth
quarter and 8.4% in FY2004, while combined catalog and internet sales
increased 31.0% and 22.7%, in the fourth quarter and FY2004,
respectively.
A conference call to discuss this earnings press release will be
held today, Monday, April 4, 2005 at 11:00 a.m. Eastern Time (ET). To
participate in the call today please dial (USA) 877-209-0397 or
(International) 612-332-1025 at least five minutes before 11:00 a.m.
ET. A replay of the conference call will be available until April 11,
2005 at 11:59 p.m. ET by dialing (USA) 800-475-6701 or (International)
320-365-3844. The access code for the replay will be 768874.
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 273 stores in 37 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 factors
include 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
Quarters and Years Ended January 31, 2004 (FY2003)
and January 29, 2005 (FY2004)
(in thousands, except earnings per share amounts)
PRELIMINARY
Fourth Quarter Fiscal Year
----------------------- -----------------------
2003 2004 2003 2004
----------- ----------- ----------- -----------
(as restated) (as restated)
Net sales $ 100,938 $ 127,943 $ 299,663 $ 372,500
Cost of goods sold 40,946 49,803 127,364 147,674
----------- ----------- ----------- -----------
Gross profit 59,992 78,140 172,299 224,826
Operating expenses:
Sales and marketing 33,878 46,042 110,230 143,586
General and
administrative 8,689 10,730 30,554 38,003
Store opening costs 321 338 1,539 1,184
----------- ----------- ----------- -----------
Operating income 17,104 21,030 29,976 42,053
Interest expense, net 472 333 1,623 1,696
----------- ----------- ----------- -----------
Income before
provision for income
taxes 16,632 20,697 28,353 40,357
Provision for income
taxes 7,075 8,121 12,073 15,876
----------- ----------- ----------- -----------
Net income $ 9,557 $ 12,576 $ 16,280 $ 24,481
=========== =========== =========== ===========
Earnings per share:
Net income
Basic $ 0.73 $ 0.94 $ 1.33 $ 1.83
Diluted $ 0.68 $ 0.88 $ 1.17 $ 1.72
Weighted average
number of shares
outstanding
Basic 13,125 13,405 12,248 13,344
Diluted 14,070 14,231 13,883 14,231
JoS. A. Bank Clothiers, Inc
Consolidated Balance Sheets
January 31, 2004 and January 29,2005
(in thousands)
PRELIMINARY
-----------------------
As of
-----------------------
January 31, January 29,
2004 2005
----------- -----------
(as restated)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 875 $ 1,425
Accounts receivable 4,201 4,798
Inventories:
Finished goods 109,136 117,104
Raw materials 11,652 8,550
----------- -----------
Total inventories 120,788 125,654
Prepaid expenses and other
current assets 10,323 11,892
Deferred income taxes -- 893
----------- -----------
Total current assets 136,187 144,662
NONCURRENT ASSETS:
Property, plant and
equipment, net 61,961 85,056
Deferred financing and other
non-current assets 1,235 1,508
Deferred income taxes 2,354 --
----------- -----------
Total assets $ 201,737 $ 231,226
=========== ===========
LIABILITIES & STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 28,748 $ 38,094
Accrued expenses 32,677 37,505
Current portion of long-term
debt 1,245 917
Deferred income taxes 1,308 --
----------- -----------
Total current
liabilities 63,978 76,516
NONCURRENT LIABILITIES:
Long term debt, excluding
current portion 28,618 5,942
Non-current lease obligations 21,487 31,753
Non-current deferred tax
liabilities -- 1,753
Other non-current liabilities 1,200 938
----------- -----------
Total liabilities 115,283 116,902
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 122 124
Additional paid-in capital 64,207 67,594
Retained earnings 27,183 51,664
Treasury stock (5,058) (5,058)
----------- -----------
Total stockholders'
equity 86,454 114,324
----------- -----------
Total liabilities and
stockholders' equity $ 201,737 $ 231,226
=========== ===========
JoS. A. Bank Clothiers, Inc
Consolidated Statements of Cash Flows
Years Ended January 31, 2004 (FY2003) and January 29, 2005 (FY2004)
(in thousands)
PRELIMINARY
Fiscal Year
-----------------------
2003 2004
----------- -----------
(as restated)
Cash flows from operating activities:
Net income $ 16,280 $ 24,481
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Deferred income taxes 886 1,906
Depreciation and amortization 9,382 10,498
Loss on disposals of property 29 4
Income tax benefit from exercise of non-
qualified stock options 1,528 2,256
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable (1,371) (597)
(Increase) decrease in inventories (42,532) (4,866)
Increase in prepaid expenses and
other assets (3,653) (1,569)
Decrease in non-current assets -- (273)
Increase (decrease) in accounts
payable (625) 9,346
Increase in accrued expenses and
other liabilities 8,534 263
Increase in noncurrent lease
obligations 7,206 10,266
(Decrease) increase in other non-
current liabilities (1,565) (262)
----------- -----------
Net cash provided by (used in)
operating activities (5,901) 51,453
----------- -----------
Cash flows from investing activities:
Payments for Capital expenditures (24,680) (29,939)
Proceeds from disposal of assets -- 907
----------- -----------
Net cash (used for) investing
activities (24,680) (29,032)
----------- -----------
Cash flows from financing activities:
Borrowings under revolving loan agreement 87,165 80,360
Repayment of borrowings under revolving
loan agreement (66,688) (100,947)
Repayment of other long-term debt (1,133) (2,417)
Net proceeds from issuance of common stock 3,723 1,133
----------- -----------
Net cash provided by (used in)
financing activities 23,067 (21,871)
----------- -----------
Net increase (decrease) in cash
and cash equivalents (7,514) 550
Cash and cash equivalents, beginning of year 8,389 875
----------- -----------
Cash and cash equivalents, end of year $ 875 $ 1,425
=========== ===========
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: www.josbank.com