Exhibit 99.1
JoS. A. Bank Clothiers Reports First Quarter Earnings Per Share;
Company Expects Double-Digit Earnings Increase for Full Year 2006
HAMPSTEAD, Md.--(BUSINESS WIRE)--June 8, 2006--JoS. A. Bank Clothiers, Inc.
(Nasdaq National Market:JOSB) announced today sales and earnings for the first
quarter of the fiscal year ending February 3, 2007 ("fiscal 2006"). In addition,
the Company has provided earnings guidance for fiscal 2006.
For the first quarter of fiscal 2006, net income was $5.9 million, or $0.32
per share, as compared with net income of $6.7 million, or $0.38 per share, in
the first quarter of the fiscal year ended January 29, 2006 ("fiscal 2005").
"While our sales of new transitional spring products remained consistent
with last year, gross profits declined primarily as a result of increased
customer demand for fall merchandise, resulting in less demand for the
year-round core merchandise," stated David E. Ullman, Chief Financial Officer of
JoS. A. Bank, Clothiers, Inc. "Our new spring products continue to show strong
sales in May and early June, so we expect our year-over-year profits to increase
at least 10% in the second quarter of fiscal 2006," continued Mr. Ullman.
In addition, based on recent positive sales and gross margin trends, the
Company expects to generate a double-digit percentage increase in earnings per
share for the full year of fiscal 2006, as compared with the earnings per share
of $1.95 in fiscal 2005.
Total sales for the first quarter of fiscal 2006 increased 17.7% to $113.7
million, as compared with $96.6 million in the comparable prior year period.
Comparable stores sales increased 4.7% in the first quarter of fiscal 2006, as
compared with the comparable prior year period, while combined catalog and
Internet sales increased 25.0%.
A conference call to discuss this earnings news release will be held today,
June 8, 2006 at 11:00 a.m. Eastern Time (EDT). To participate in the call today,
please dial (USA) 800-762-4519 or (International) 480-629-9025, 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 on June 8, 2006 until June 15, 2006 at 11:59 p.m. EDT by
dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for
the replay will be 830552. A webcast replay of the conference call will be
posted on the investor relations portion of our website: www.josbank.com (select
'Company Information' and 'Investor Relations').
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 334 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, fashion 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)
(Unaudited)
Three Months Ended
-----------------------------
April 30, 2005 April 29, 2006
-------------- --------------
Net sales $ 96,575 $ 113,665
Cost of goods sold 35,962 43,914
-------------- --------------
Gross profit 60,613 69,751
-------------- --------------
Operating expenses:
Sales and marketing 39,576 47,032
General and administrative 9,179 12,200
Store opening costs 76 84
-------------- --------------
Total operating expenses 48,831 59,316
-------------- --------------
Operating income 11,782 10,435
Interest expense, net 324 321
-------------- --------------
Income before provision for income taxes 11,458 10,114
Provision for income taxes 4,721 4,253
-------------- --------------
Net income $ 6,737 $ 5,861
============== ==============
Earnings per share:
Net income:
Basic $ 0.40 $ 0.33
Diluted $ 0.38 $ 0.32
Weighted average shares outstanding:
Basic 16,839 17,884
Diluted 17,901 18,347
Note: The foregoing unaudited, Condensed Consolidated Statements of
Income are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the three months ended April 30, 2005
and April 29, 2006) and do not include the Notes, which are
considered an integral part thereof. The Company filed the
Condensed Consolidated Unaudited Financial Statements in its
Quarterly Report on Form 10-Q on June 7, 2006. The foregoing
unaudited financial information should be read in conjunction with
the Company's Form 10-Q for the quarterly period ended April 29,
2006, as well as the Company's Annual Report on Form 10-K for the
fiscal year ended January 29, 2006.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands except per share data)
(Unaudited)
January 28, 2006 April 29, 2006
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 7,344 $ 852
Accounts receivable, net 6,455 7,918
Inventories:
Raw materials 7,574 10,337
Finished goods 169,068 173,668
---------------- ----------------
Total inventories 176,642 184,005
Prepaid expenses and other current
assets 12,852 16,028
Prepaid income taxes - 6,020
---------------- ----------------
Total current assets 203,293 214,823
NONCURRENT ASSETS:
Property, plant and equipment, net 100,973 102,023
Other noncurrent assets 566 566
---------------- ----------------
Total assets $ 304,832 $ 317,412
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 42,678 $ 35,168
Accrued expenses 52,480 41,432
Current portion of long-term debt 971 987
Deferred tax liability - current 10,954 10,954
---------------- ----------------
Total current liabilities 107,083 88,541
NONCURRENT LIABILITIES:
Long-term debt, net of current
portion 4,826 17,410
Noncurrent lease obligations 35,007 35,183
Deferred tax liability -
noncurrent 2,697 2,910
Other noncurrent liabilities 1,419 1,527
---------------- ----------------
Total liabilities 151,032 145,571
---------------- ----------------
STOCKHOLDERS' EQUITY:
Common Stock 173 179
Additional paid-in capital 66,757 78,931
Retained earnings 86,870 92,731
---------------- ----------------
Total stockholders' equity 153,800 171,841
---------------- ----------------
Total liabilities and
stockholders' equity $ 304,832 $ 317,412
================ ================
Note: The foregoing unaudited, Condensed Consolidated Balance Sheets
are excerpts from our Condensed Consolidated Unaudited Financial
Statements (for the year ended January 28, 2006 and the three
months ended April 29, 2006) and do not include the Notes, which
are considered an integral part thereof. The Company filed the
Condensed Consolidated Unaudited Financial Statements in its
Quarterly Report on Form 10-Q on June 7, 2006. The foregoing
unaudited financial information should be read in conjunction with
the Company's Form 10-Q for the quarterly period ended April 29,
2006, as well as the Company's Annual Report on Form 10-K for the
fiscal year ended January 29, 2006.
JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands except per share data)
(Unaudited)
Three Months Ended
-----------------------------
April 30, 2005 April 29, 2006
-------------- --------------
Cash flows from operating activities:
Net income $ 6,737 $ 5,861
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 3,079 3,686
Loss on disposals of plant and
equipment 3 3
Increase in deferred tax liability 8,269 213
Income tax benefit from exercise of
stock options 952 -
Net increase in operating working
capital (23,194) (35,099)
-------------- --------------
Net cash used in operating
activities (4,154) (25,336)
-------------- --------------
Cash flows from investing activities:
Capital expenditures (5,133) (5,936)
-------------- --------------
Net cash used in investing
activities (5,133) (5,936)
-------------- --------------
Cash flows from financing activities:
Borrowings under long-term Credit
Agreement 24,719 25,978
Repayments under long-term Credit
Agreement (14,719) (13,542)
Proceeds from long-term debt - 400
Repayment of other long-term debt (217) (236)
Income tax benefit from exercise of
stock options - 5,134
Net proceeds from issuance of common
stock 216 7,046
-------------- --------------
Net cash provided by financing
activities 9,999 24,780
-------------- --------------
Net increase (decrease) in cash and cash
equivalents 712 (6,492)
Cash and cash equivalents - beginning of
period 1,425 7,344
-------------- --------------
Cash and cash equivalents - end of
period $ 2,137 $ 852
============== ==============
Note: The foregoing unaudited, Condensed Consolidated Statements of
Cash Flows are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the three months ended April 30, 2005
and April 29, 2006) and do not include the Notes, which are
considered an integral part thereof. The Company filed the
Condensed Consolidated Unaudited Financial Statements in its
Quarterly Report on Form 10-Q on June 7, 2006. The foregoing
unaudited financial information should be read in conjunction with
the Company's Form 10-Q for the quarterly period ended April 29,
2006, as well as the Company's Annual Report on Form 10-K for the
fiscal year ended January 29, 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