Exhibit 99.1
JoS. A. Bank Clothiers Posts Record Second Quarter Earnings
Per Share, With Increase of 27%
HAMPSTEAD, Md.--(BUSINESS WIRE)--Sept. 7, 2006--JoS. A. Bank
Clothiers, Inc. (Nasdaq Global Select Market: "JOSB") announced net
income of $7.0 million in the second quarter ended July 29, 2006, as
compared with net income of $5.3 million in the second quarter of the
previous fiscal year. Earnings per share increased 27% to $0.38 in the
second quarter of fiscal 2006, as compared with $0.30 in the second
quarter of fiscal 2005, representing another quarter of record
profitability.
For the first six months of fiscal 2006, net income increased to
$12.8 million, as compared with $12.1 million in the first six months
of fiscal 2005, and earnings per share rose 4% to $0.70, as compared
with $0.67 in the corresponding period of the previous fiscal year.
The Company also reaffirmed that it expects to earn at least $2.15
per share in fiscal 2006, representing at least a 10% increase over
fiscal 2005 earnings of $1.95 per share.
A conference call to discuss this earnings press release is
scheduled for today, September 7, 2006, at 11:00 a.m. Eastern Time
(EDT). To participate in the call today, please dial (800) 230-1059,
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 14, 2006, by dialing
(USA) (800) 475-6701 or (International) (320) 365-3844. The access
code for the replay will be 837711. 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').
All earnings per share amounts in this news release represented
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.
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 346 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 Global
Select 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 anticipated 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, higher energy and security
costs, 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, litigations 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 or 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 Six Months Ended
------------------- -------------------
July 30, July 29, July 30, July 29,
2005 2006 2005 2006
--------- --------- --------- ---------
Net sales $ 98,588 $119,098 $195,163 $232,763
Cost of goods sold 37,410 44,799 73,372 88,713
--------- --------- --------- ---------
Gross Profit 61,178 74,299 121,791 144,050
--------- --------- --------- ---------
Operating expenses:
Sales and marketing 40,834 49,481 80,431 96,513
General and administrative 10,840 12,455 20,019 24,655
Store opening costs 107 64 162 148
--------- --------- --------- ---------
Total operating expenses 51,781 62,000 100,612 121,316
--------- --------- --------- ---------
Operating income 9,397 12,299 21,179 22,734
Interest expense, net 341 247 665 568
--------- --------- --------- ---------
Income before provision for
income taxes 9,056 12,052 20,514 22,166
Provision for income taxes 3,717 5,079 8,438 9,332
--------- --------- --------- ---------
Net income $ 5,339 $ 6,973 $ 12,076 $ 12,834
========= ========= ========= =========
Earnings per share:
Net income per share:
Basic $ 0.31 $ 0.39 $ 0.71 $ 0.72
Diluted $ 0.30 $ 0.38 $ 0.67 $ 0.70
Weighted average shares
outstanding:
Basic 16,960 18,001 16,900 17,942
Diluted 18,001 18,339 17,951 18,343
Note: The foregoing unaudited Condensed Consolidated Statements of
Income are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the three months and six months ended
July 30, 2005 and July 29, 2006) 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 7,
2006. The foregoing unaudited financial information should be read
in conjunction with the Company's Form 10-Q for the quarterly
period ended July 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)
(Unaudited)
January 28, July 29,
2006 2006
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 7,344 $ 1,325
Accounts receivable, net 6,455 7,372
Inventories:
Raw materials 7,574 11,059
Finished goods 169,068 181,412
----------- -----------
Total inventories 176,642 192,471
Prepaid expenses and other current assets 12,852 11,510
Prepaid income taxes - 1,716
----------- -----------
Total current assets 203,293 214,394
----------- -----------
NONCURRENT ASSETS:
Property, plant and equipment, net 100,973 106,536
Other noncurrent assets 566 615
----------- -----------
Total assets $ 304,832 $ 321,545
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 42,678 $ 40,165
Accrued expenses 52,480 44,165
Current portion of long-term debt 971 1,002
Deferred tax liability - current 10,954 10,960
----------- -----------
Total current liabilities 107,083 96,292
NONCURRENT LIABILITIES:
Long-term debt, net of current portion 4,826 5,679
Noncurrent lease obligations 35,007 36,284
Deferred tax liability - noncurrent 2,697 3,079
Other noncurrent liabilities 1,419 1,527
----------- -----------
Total liabilities 151,032 142,861
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 173 179
Additional paid-in capital 66,757 78,801
Retained earnings 86,870 99,704
----------- -----------
Total stockholders' equity 153,800 178,684
----------- -----------
Total liabilities and stockholders' equity $ 304,832 $ 321,545
=========== ===========
Note: The foregoing unaudited Condensed Consolidated Balance Sheets
are excerpts from our Condensed Consolidated Unaudited Financial
Statements (as of January 28, 2006 and as of July 29, 2006) 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 7, 2006. The foregoing unaudited
financial information should be read in conjunction with the
Company's Form 10-Q for the quarterly period ended July 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)
(Unaudited)
Six Months Ended
-----------------
July 30, July 29,
2005 2006
-------- --------
Cash flows from operating activities:
Net income $12,076 $12,834
Adjustments to reconcile net income to net cash
used in operating activities:
Increase in deferred income taxes 7,923 388
Depreciation and amortization 6,285 7,542
Loss on disposals of plant and equipment 24 14
Income tax benefit from exercise of stock
options 2,702 -
Net increase in operating working capital and
other components (30,629) (26,832)
-------- --------
Net cash used in operating activities (1,619) (6,054)
-------- --------
Cash flows from investing activities:
Capital expenditures (11,880) (12,899)
-------- --------
Net cash used in investing activities (11,880) (12,899)
-------- --------
Cash flows from financing activities:
Borrowings under long-term Credit Agreement 42,379 7,747
Repayments under long-term Credit Agreement (29,376) (6,785)
Income tax benefit from exercise of stock
options -- 4,964
Proceeds from issuance of long-term debt -- 400
Repayment of other long-term debt (457) (478)
Net proceeds from exercise of stock options 600 7,086
-------- --------
Net cash provided by financing activities 13,146 12,934
-------- --------
Net decrease in cash and cash equivalents (353) (6,019)
Cash and cash equivalents - beginning of period 1,425 7,344
-------- --------
Cash and cash equivalents - end of period $ 1,072 $ 1,325
======== ========
Note: The foregoing unaudited Condensed Consolidated Statements of
Cash Flows are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the six months ended July 30, 2005 and
July 29, 2006) 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 7, 2006. The
foregoing unaudited financial information should be read in
conjunction with the Company's Form 10-Q for the quarterly period
ended July 30, 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