Exhibit 99.1
JoS. A. Bank Clothiers Reports 2005 Results; Net Income Increases 44%
in Fiscal 2005
HAMPSTEAD, Md.--(BUSINESS WIRE)--April 12, 2006--JoS. A. Bank
Clothiers, Inc. (Nasdaq National Market:JOSB) announces today results
for its fiscal year ended January 28, 2006 (fiscal 2005).
The Company's results reflect: a) net income for fiscal 2005
increased 44% to $35.3 million, as compared with net income of $24.5
million for the fiscal year ended January 29, 2005 (fiscal 2004); and
b) earnings per share for fiscal 2005 increased 41% to $1.95 (adjusted
for stock dividend), as compared with fiscal 2004 earnings per share
of $1.38 (adjusted for stock dividend), representing another year of
record earnings.
All earnings per share amounts in this news release represent
diluted earnings per share adjusted for the 25% stock dividend that
the Company announced on December 14, 2005, under which shareholders
of record as of January 27, 2006 received one additional share of
common stock for each four shares then owned. The stock dividend was
distributed on February 15, 2006.
The Company previously reported record sales for the fiscal fourth
quarter and fiscal 2005. Total sales for the fiscal fourth quarter of
2005 increased 28.1% to $163.8 million, as compared with sales of
$127.9 million in the same prior year period. Total sales for fiscal
2005 increased 24.7% to $464.6 million, as compared with sales of
$372.5 million in the prior fiscal year. Comparable store sales rose
15.9% in the fiscal fourth quarter and 10.6% in fiscal 2005, while
combined catalog and internet sales increased 18.9% and 21.7% in the
fiscal fourth quarter and fiscal 2005, respectively.
A conference call to discuss this earnings press release will be
held tomorrow, Thursday, April 13, 2006 at 11:00 a.m. Eastern Time
(ET). To participate in the call please dial (USA) 877-209-0397 or
(International) 612-332-0530 at least five minutes before 11:00 a.m.
ET. A replay of the conference call will be available until April 20,
2006 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 825372.
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 328 stores in 40 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 successful
implementation of the Company's growth strategy including the ability
of the Company to finance its expansion plans, the mix and pricing of
goods sold, the effectiveness and profitability of new concepts, the
market price of key raw materials such as wool and cotton,
seasonality, merchandise trends and changing consumer preferences, the
effectiveness of the Company's marketing programs, the 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 28, 2006. 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. The Company does not undertake an
obligation to update or revise any forward-looking statements to
reflect actual results or changes in the Company's assumptions,
estimates and projections. 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)
Fiscal Fourth Quarter Fiscal Year
--------------------- -------------------
2004 2005 2004 2005
---------- ---------- --------- ---------
NET SALES $ 127,943 $ 163,831 $372,500 $464,633
Cost of goods sold 49,803 61,467 147,674 177,006
---------- ---------- --------- ---------
GROSS PROFIT 78,140 102,364 224,826 287,627
---------- ---------- --------- ---------
OPERATING EXPENSES:
Sales and marketing 46,042 55,558 143,586 179,201
General and administrative 10,730 14,443 38,003 45,930
Store opening costs 338 293 1,184 701
---------- ---------- --------- ---------
Total operating expenses 57,110 70,294 182,773 225,832
---------- ---------- --------- ---------
OPERATING INCOME 21,030 32,070 42,053 61,795
Interest expense, net 333 492 1,696 1,794
---------- ---------- --------- ---------
Income before provision for
income taxes 20,697 31,578 40,357 60,001
Provision for income taxes 8,121 13,056 15,876 24,751
---------- ---------- --------- ---------
NET INCOME $ 12,576 $ 18,522 $ 24,481 $ 35,250
========== ========== ========= =========
EARNINGS PER SHARE:
Net income:
Basic $ 0.75 $ 1.08 $ 1.47 $ 2.07
Diluted $ 0.71 $ 1.02 $ 1.38 $ 1.95
Weighted average shares
outstanding:
Basic 16,756 17,182 16,680 17,021
Diluted 17,789 18,147 17,789 18,031
Note: The foregoing Condensed Consolidated Statements of Income are
excerpts from our Consolidated Financial Statements and do not include
the Notes, which are considered an integral part thereof. The Company
filed the Consolidated Financial Statements in its Annual Report on
Form 10-K, on April 12, 2006. The foregoing financial information
should be read in conjunction with the Company's Form 10-K for the
fiscal year ended January 28, 2006.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In Thousands)
January 29, 2005 January 28, 2006
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,425 $ 7,344
Accounts receivable, net 4,798 6,455
Inventories, net 127,693 176,642
Prepaid expenses and other current
assets 11,892 12,852
Deferred income taxes 2,367 --
---------------- ----------------
Total current assets 148,175 203,293
---------------- ----------------
NONCURRENT ASSETS:
Property, plant and equipment, net 83,621 100,973
Other noncurrent assets 1,508 566
---------------- ----------------
Total assets $ 233,304 $ 304,832
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 40,133 $ 42,678
Accrued expenses 37,505 52,480
Current portion of long-term debt 917 971
Deferred tax liability - current -- 10,954
---------------- ----------------
Total current liabilities 78,555 107,083
NONCURRENT LIABILITIES:
Long-term debt, net of current
portion 5,942 4,826
Noncurrent lease obligations 30,318 35,007
Noncurrent deferred tax liability 3,227 2,697
Other noncurrent liabilities 938 1,419
---------------- ----------------
Total liabilities 118,980 151,032
---------------- ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par,
500,000 shares authorized, none
issued or outstanding - -
Common stock, $.01 par, 20,000,000
shares authorized, 19,417,125
issued and 16,825,370 outstanding
at January 29, 2005 and
17,283,804 issued and outstanding
at January 28, 2006 124 173
Additional paid-in capital 67,594 66,757
Retained earnings 51,664 86,870
---------------- ----------------
119,382 153,800
Treasury stock (5,058) --
---------------- ----------------
Total stockholders' equity 114,324 153,800
---------------- ----------------
Total liabilities and
stockholders' equity $ 233,304 $ 304,832
================ ================
Note: The foregoing Condensed Consolidated Statements of Income are
excerpts from our Consolidated Financial Statements and do not include
the Notes, which are considered an integral part thereof. The Company
filed the Consolidated Financial Statements in its Annual Report on
Form 10-K, on April 12, 2006. The foregoing financial information
should be read in conjunction with the Company's Form 10-K for the
fiscal year ended January 28, 2006.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In Thousands)
-----------------------
Fiscal 2004 Fiscal 2005
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,481 $ 35,250
Adjustments to reconcile net income to net
cash provided by operating activities:
Deferred tax expense 1,906 12,791
Depreciation and amortization 10,498 13,020
Loss on disposition of assets 4 31
Income tax benefit from exercise of non-
qualified stock options 2,256 2,694
Changes in assets and liabilities:
Increase in accounts receivable (597) (1,657)
Increase in inventories (6,905) (48,949)
Increase in prepaid expenses and other
assets (1,569) (960)
(Increase) decrease in non-current assets (273) 942
Increase in accounts payable 11,385 2,545
Increase in accrued expenses 263 16,149
Increase in noncurrent lease obligations 10,266 4,689
Increase (decrease) in other noncurrent
liabilities (262) 481
----------- -----------
Net cash provided by operating activities 51,453 37,026
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for capital expenditures (29,939) (31,577)
Proceeds from disposal of assets 907 --
----------- -----------
Net cash used for investing activities (29,032) (31,577)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving loan agreement 80,360 106,185
Repayment of borrowings under revolving loan
agreement (100,947) (106,185)
Repayment of other long-term debt (2,417) (1,062)
Proceeds from issuance of common stock, net
of fractional share repurchase 1,133 1,532
----------- -----------
Net cash provided by (used in) financing
activities (21,871) 470
----------- -----------
Net increase (decrease) in cash and cash
equivalents 550 5,919
CASH AND CASH EQUIVALENTS, beginning of year 875 1,425
----------- -----------
CASH AND CASH EQUIVALENTS, end of year $ 1,425 $ 7,344
=========== ===========
Note: The foregoing Condensed Consolidated Statements of Income are
excerpts from our Consolidated Financial Statements and do not include
the Notes, which are considered an integral part thereof. The Company
filed the Consolidated Financial Statements in its Annual Report on
Form 10-K, on April 12, 2006. The foregoing financial information
should be read in conjunction with the Company's Form 10-K for the
fiscal year ended January 28, 2006.
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD
David E. Ullman, EVP/CFO, 410-239-5715
or
Investor Relations Voicemail, 410-239-5900
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com