Exhibit 99.1
JoS. A. Bank Clothiers' Second Quarter Earnings Per
Share Increase 54%; Company Raises Full Year
Earnings Guidance Again
HAMPSTEAD, Md.--(BUSINESS WIRE)--Sept. 6, 2005--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market: "JOSB") announced net income
of $5.3 million for the second quarter ended July 30, 2005, compared
with net income of $3.4 million in the second quarter of the previous
fiscal year. Earnings per share increased 54% to $0.37 in the second
quarter, as compared with $0.24 in the second quarter of fiscal 2004,
representing another record quarter of profitability. For the first
half of fiscal 2005, net income increased to $12.1 million, as
compared with $8.7 million in the first six months of fiscal 2004, and
earnings per share rose 38% to $0.84, compared with $0.61 in the
corresponding period of the previous fiscal year.
"We are very pleased to report our Company's 16th consecutive
quarter of record earnings, when compared with prior year periods,"
observed Robert N. Wildrick, Chief Executive Officer of JoS. A. Bank
Clothiers, Inc. "Strong second quarter operating results were driven
by an increase in comparable store sales, continued gross profit
gains, strength in catalog and Internet sales, new product
innovations, and our new store opening program," continued Mr.
Wildrick. "Based on these strong results and the current business
outlook, we are raising our earnings guidance for the second time for
the year ending January 28, 2006 (fiscal 2005) to at least $2.15 to
$2.19 per share, compared with $1.72 per share in fiscal 2004."
"We opened 14 new stores during the six months ended July 30,
2005," continued Wildrick. "Our plans call for the opening of
approximately 46 additional stores in over 20 states across the U.S.
during the second half of fiscal 2005. We are optimistic about the
opportunities in the second half of fiscal 2005 and we have invested
in inventories of our core Fall products. Also, the Company's
brand-building media campaign, which is a key element in positioning
JoS. A. Bank as the premiere upscale menswear brand in the U.S., will
be continued this Fall with a series of television and selective
magazine advertisements."
As previously reported, total sales for the second quarter ended
July 30, 2005 increased 20.2% to $98.6 million, as compared with $82.0
million in the same prior year period. Comparable store sales
increased 4.9% in the second quarter ended July 30, 2005, while
combined catalog and Internet sales increased 23.4%. Total sales for
the six months ended July 30, 2005 increased 20.6% to $195.2 million,
as compared with $161.9 million in the comparable prior year period.
Comparable store sales increased 4.5% in the six months ended July 30,
2005, while combined catalog and internet sales rose 24.9%.
A conference call to discuss this earnings press release is
scheduled for today, September 6, 2005, at 11:00 a.m. Eastern Time
(EDT). To participate in the call today, please dial (877) 209-0397,
or (International) (612) 332-1025, at least five minutes before 11:00
a.m. EDT. A replay of the conference call will be available after 2:30
p.m. EDT today until 11:59 p.m. on September 12, 2005, by dialing
(USA) (800) 475-6701 or (International) (302) 365-3844. The access
code for the replay will be 791286.
All 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 fiscal 2004. The fiscal 2004
earnings per share amounts included in this news release give effect
to the restatement of the Company's financial statements to reflect
the revision of the Company's historical practices of accounting for
lease transactions as discussed in the Company's Annual Report on Form
10-K for the year ended January 29, 2005.
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 291 stores in 38 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.
Other factors and risks that may affect our business or future
financial results are detailed in our filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form
10-K for the year ended January 29, 2005. 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
Condensed Consolidated Statements of Income
(In thousands except per share data)
(Unaudited)
Three Months Ended Six Months Ended
----------------------- ------------------------
July 31, July 30, July 31, July 30,
2004 2005 2004 2005
------------- ----------------------- ----------
(As Restated) (As Restated)
Net sales $ 81,994 $ 98,588 $ 161,923 $ 195,163
Cost of goods sold 32,883 37,410 63,777 73,372
------------- --------- ------------- ----------
Gross Profit 49,111 61,178 98,146 121,791
------------- --------- ------------- ----------
Operating expenses:
Sales and marketing 32,171 40,834 62,928 80,374
General and
administrative 10,253 10,840 18,837 20,019
Store opening costs 269 107 500 219
------------- --------- ------------- ----------
Total operating
expenses 42,693 51,781 82,265 100,612
------------- --------- ------------- ----------
Operating income 6,418 9,397 15,881 21,179
Interest expense, net 433 341 914 665
------------- --------- ------------- ----------
Income before
provision for income
taxes 5,985 9,056 14,967 20,514
Provision for income
taxes 2,553 3,717 6,264 8,438
------------- --------- ------------- ----------
Net income $ 3,432 $ 5,339 $ 8,703 $ 12,076
============= ========= ============= ==========
Earnings per share:
Net income per share:
Basic $ 0.26 $ 0.39 $ 0.66 $ 0.89
Diluted $ 0.24 $ 0.37 $ 0.61 $ 0.84
Weighted average
shares outstanding:
Basic 13,330 13,568 13,288 13,520
Diluted 14,196 14,401 14,204 14,361
Note: The foregoing unaudited Condensed Consolidated Statements of
Income are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the six month and quarterly periods ended
July 31, 2004 and July 30, 2005) and do not include the Notes, which
are considered an integral part thereof. The Company expects to file
the Condensed Consolidated Unaudited Financial Statements in its
Quarterly Report on Form 10-Q, on or about September 6, 2005. The
foregoing unaudited financial information should be read in
conjunction with the Company's Form 10-Q for the quarterly period
ended July 30, 2005, as well as the Company's Annual Report on Form
10-K for the fiscal year ended January 29, 2005.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)
January 29, 2005 July 30, 2005
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,425 $ 1,072
Accounts receivable, net 4,798 5,453
Inventories:
Raw materials 8,550 11,646
Finished goods 119,143 160,608
---------------- ----------------
Total inventories 127,693 172,254
Prepaid expenses and other
current assets 11,892 11,746
Deferred income taxes 893 --
---------------- ----------------
Total current assets 146,701 190,525
---------------- ----------------
NONCURRENT ASSETS:
Property, plant and equipment, net 83,621 88,479
Other noncurrent assets 1,508 601
---------------- ----------------
Total assets $ 231,830 $ 279,605
================ ================
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 40,133 $ 57,694
Accrued expenses 37,505 32,181
Current portion of long-term
debt 917 938
Deferred tax liability - current -- 6,963
---------------- ----------------
Total current liabilities 78,555 97,776
NONCURRENT LIABILITIES:
Long-term debt, net of current
portion 5,942 18,467
Noncurrent lease obligations 30,318 30,902
Deferred tax liability - noncurrent 1,753 1,820
Other noncurrent liabilities 938 939
---------------- ----------------
Total liabilities 117,506 149,904
---------------- ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 124 126
Additional paid-in capital 67,594 70,893
Retained earnings 51,664 63,740
---------------- ----------------
119,382 134,759
Treasury stock (5,058) (5,058 )
---------------- ----------------
Total stockholders' equity 114,324 129,701
---------------- ----------------
Total liabilities and
stockholders' equity $ 231,830 $ 279,605
================ ================
Note: The foregoing unaudited Condensed Consolidated Balance Sheets
are excerpts from our Condensed Consolidated Unaudited Financial
Statements (for the six month and quarterly periods ended July 31,
2004 and July 30, 2005) and do not include the Notes, which are
considered an integral part thereof. The Company expects to file the
Condensed Consolidated Unaudited Financial Statements in its Quarterly
Report on Form 10-Q, on or about September 6, 2005. The foregoing
unaudited financial information should be read in conjunction with the
Company's Form 10-Q for the quarterly period ended July 30, 2005, as
well as the Company's Annual Report on Form 10-K for the fiscal year
ended January 29, 2005.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Six Months Ended
----------------------
July 31, July 30,
2004 2005
------------- --------
(As Restated)
Cash flows from operating activities:
Net income $ 8,703 $12,076
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Increase (decrease) in deferred income taxes (771) 7,923
Depreciation and amortization 4,904 6,285
Loss on disposals of plant and equipment -- 24
Income tax benefit from exercise of stock
options -- 2,702
Net increase in operating working capital (5,588) (30,629)
------------- --------
Net cash provided by (used in) operating
activities 7,248 (1,619 )
------------- --------
Cash flows from investing activities:
Capital expenditures (9,404) (11,880)
Proceeds from disposal of assets 851 --
------------- --------
Net cash used in investing activities (8,553) (11,880)
------------- --------
Cash flows from financing activities:
Borrowings under long-term Credit Agreement 44,173 42,379
Repayments under long-term Credit Agreement (41,760) (29,376)
Repayment of other long-term debt (1,906) (457)
Net proceeds from issuance of common stock 707 600
------------- --------
Net cash provided by financing activities 1,214 13,146
------------- --------
Net decrease in cash and cash equivalents (91) (353)
Cash and cash equivalents - beginning of
period 875 1,425
------------- --------
Cash and cash equivalents - end of period $ 784 $ 1,072
============= ========
Note: The foregoing unaudited Condensed Consolidated Statements of
Cash Flows are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the six month and quarterly periods ended
July 31, 2004 and July 30, 2005) and do not include the Notes, which
are considered an integral part thereof. The Company expects to file
the Condensed Consolidated Unaudited Financial Statements in its
Quarterly Report on Form 10-Q, on or about September 6, 2005. The
foregoing unaudited financial information should be read in
conjunction with the Company's Form 10-Q for the quarterly period
ended July 30, 2005, as well as the Company's Annual Report on Form
10-K for the fiscal year ended January 29, 2005.
CONTACT: JoS. A. Bank Clothiers, Inc.
David E. Ullman, 410-239-5715
or
Investor Relations Counsel:
RJ Falkner and Company, Inc.
R. Jerry Falkner, 800-377-9893
or
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com