Exhibit 99.1
JoS. A. Bank Clothiers' Third Quarter
Earnings Per Share Increase 45%
HAMPSTEAD, Md.--(BUSINESS WIRE)--Dec. 5, 2005--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market: "JOSB") announced net income
of $4.7 million for the fiscal third quarter ended October 29, 2005,
as compared with net income of $3.2 million in the third quarter of
the previous fiscal year. Earnings per share increased 45% to $0.32 in
the third quarter of fiscal 2005, as compared with $0.22 in the third
quarter of fiscal 2004, representing another record quarter of
profitability.
For the first nine months of fiscal 2005, net income increased to
$16.7 million, as compared with $11.9 million in the first nine months
of fiscal 2004, and earnings per share rose 38% to $1.16 for the first
nine months of fiscal 2005, as compared with $0.84 in the
corresponding period of the previous fiscal year.
A conference call to discuss this earnings press release is
scheduled for today, December 5, 2005, at 11:00 a.m. Eastern Time
(EST). To participate in the call today, please dial (877) 209-0397 or
(International) (612) 332-0819, at least five minutes before 11:00
a.m. EST. A replay of the conference call will be available after 2:30
p.m. EST today until 11:59 p.m. on December 12, 2005, by dialing (USA)
(800) 475-6701 or (International) (302) 365-3844. The access code for
the replay will be 805365.
Total sales for the fiscal third quarter ended October 29, 2005
increased 27.8% to $105.6 million, as compared with $82.6 million in
the same period in fiscal 2004. For the third quarter of fiscal 2005,
comparable store sales increased 14.1%, while combined catalog and
Internet sales increased 22.6% as compared with the third quarter of
fiscal 2004. Total sales for the nine months ended October 29, 2005
increased 23.0% to $300.8 million, as compared with $244.6 million in
the same period in fiscal 2004. For the first nine months of fiscal
2005, comparable store sales increased 7.7%, while combined catalog
and Internet sales rose 24.1%, as compared with the prior year period.
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 316 stores in 39 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, the ability
to source product from its global supplier base, the effectiveness of
the Company's marketing programs, the availability of lease sites for
new stores and the Company's ability to negotiate favorable lease
terms, 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 Nine Months Ended
----------------------- -----------------------
October 30, October 29, October 30, October 29,
2004 2005 2004 2005
----------- ----------- ----------- -----------
(As (As
Restated) Restated)
Net sales $ 82,634 $ 105,639 $ 244,557 $ 300,802
Cost of goods sold 34,094 42,167 97,871 115,539
----------- ----------- ----------- -----------
Gross Profit 48,540 63,472 146,686 185,263
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 34,616 43,269 97,544 123,643
General and
administrative 8,436 11,468 27,273 31,487
Store opening costs 346 189 846 408
----------- ----------- ----------- -----------
Total operating
expenses 43,398 54,926 125,663 155,538
----------- ----------- ----------- -----------
Operating income 5,142 8,546 21,023 29,725
Interest expense, net 449 637 1,363 1,302
----------- ----------- ----------- -----------
Income before
provision for income
taxes 4,693 7,909 19,660 28,423
Provision for income
taxes 1,491 3,257 7,755 11,695
----------- ----------- ----------- -----------
Net income $ 3,202 $ 4,652 $ 11,905 $ 16,728
=========== =========== =========== ===========
Earnings per share:
Net income per share:
Basic $ 0.24 $ 0.34 $ 0.89 $ 1.23
Diluted $ 0.22 $ 0.32 $ 0.84 $ 1.16
Weighted average
shares outstanding:
Basic 13,395 13,681 13,324 13,573
Diluted 14,285 14,460 14,231 14,394
Note: The foregoing unaudited Condensed Consolidated Statements of
Income are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the three and nine months ended October 30,
2004 and October 29, 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 December 5, 2005. The foregoing
unaudited financial information should be read in conjunction with the
Company's Quarterly Report on Form 10-Q for the quarterly period ended
October 29, 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)
October 30, January 29, October 29,
2004 2005 2005
----------- ----------- -----------
(As
Restated)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,252 $ 1,425 $ 1,532
Accounts receivable, net 6,059 4,798 8,047
Inventories:
Raw materials 7,727 8,550 8,490
Finished goods 123,764 119,143 182,142
----------- ----------- -----------
Total inventories 131,491 127,693 190,632
Prepaid expenses and other
current assets 15,837 11,892 11,534
Deferred income taxes -- 893 --
----------- ----------- -----------
Total current assets 154,639 146,701 211,745
----------- ----------- -----------
NONCURRENT ASSETS:
Property, plant and equipment,
net 76,356 83,621 97,728
Other noncurrent assets 1,043 1,508 572
Deferred income taxes 2,700 -- --
----------- ----------- -----------
Total assets $ 234,738 $ 231,830 $ 310,045
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 29,687 $ 40,133 $ 37,631
Accrued expenses 32,447 37,505 43,176
Current portion of long-term
debt 912 917 948
Deferred tax liability -
current 2,332 -- 6,893
----------- ----------- -----------
Total current liabilities 65,378 78,555 88,648
NONCURRENT LIABILITIES:
Long-term debt, net of current
portion 39,773 5,942 49,778
Noncurrent lease obligations 28,655 30,318 32,768
Deferred tax liability -
noncurrent -- 1,753 1,639
Other noncurrent liabilities -- 938 1,112
----------- ----------- -----------
Total liabilities 133,806 117,506 173,945
----------- ----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 124 124 127
Additional paid-in capital 66,778 67,594 72,639
Retained earnings 39,088 51,664 68,392
----------- ----------- -----------
105,990 119,382 141,158
Treasury stock (5,058) (5,058) (5,058)
----------- ----------- -----------
Total stockholders' equity 100,932 114,324 136,100
----------- ----------- -----------
Total liabilities and
stockholders' equity $ 234,738 $ 231,830 $ 310,045
=========== =========== ===========
Note: The foregoing unaudited Condensed Consolidated Balance Sheets
are excerpts from our Condensed Consolidated Unaudited Financial
Statements (for the nine months ended October 30, 2004 and October
29, 2005 and the year ended January 29, 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 December
5, 2005. The foregoing unaudited financial information should be read
in conjunction with the Company's Quarterly Report on Form 10-Q for
the quarterly period ended October 29, 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)
Nine Months Ended
------------------------
October 30, October 29,
2004 2005
------------ -----------
(As
Restated)
Cash flows from operating activities:
Net income $ 11,905 $ 16,728
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Increase (decrease) in deferred income
taxes 678 7,672
Depreciation and amortization 7,497 9,460
Loss on disposals of plant and equipment -- 24
Income tax benefit from exercise of stock
options -- 3,749
Net increase in operating working capital (12,168) (64,636)
------------ -----------
Net cash provided by (used in) operating
activities 7,912 (27,003)
------------ -----------
Cash flows from investing activities:
Capital expenditures (21,781) (18,056)
Proceeds from disposal of assets 851 --
------------ -----------
Net cash used in investing activities (20,930) (18,056)
------------ -----------
Cash flows from financing activities:
Borrowings under long-term Credit
Agreement 75,377 92,731
Repayments under long-term Credit
Agreement (62,374) (48,186)
Repayment of other long-term debt (2,181) (678)
Net proceeds from issuance of common stock 2,573 1,299
------------ -----------
Net cash provided by financing
activities 13,395 45,166
------------ -----------
Net decrease in cash and cash equivalents 377 107
Cash and cash equivalents - beginning of
period 875 1,425
------------ -----------
Cash and cash equivalents - end of period $ 1,252 $ 1,532
============ ===========
Note: The foregoing unaudited Condensed Consolidated Statements of
Cash Flows are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the nine months ended October 30, 2004 and
October 29, 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 December 5, 2005. The foregoing unaudited
financial information should be read in conjunction with the Company's
Quarterly Report on Form 10-Q for the quarterly period ended October
29, 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., Hampstead, MD
David E. Ullman, EVP/CFO, 410-239-5715
or
RJ Falkner and Company, Inc.
Investor Relations Counsel
R. Jerry Falkner, CFA
800-377-9893
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com