Exhibit 99.1
JoS. A. Bank Clothiers Posts Record
Third Quarter Earnings Per Share, with Increase of 15%
HAMPSTEAD, Md.--(BUSINESS WIRE)--Dec. 7, 2006--JoS. A. Bank
Clothiers, Inc. (Nasdaq Global Select Market: "JOSB") announces net
income of $5.5 million for the fiscal third quarter ended October 28,
2006, as compared with net income of $4.7 million in the third quarter
of the previous fiscal year. Diluted earnings per share increased 15%
to $0.30 in the third quarter of fiscal 2006, as compared with $0.26
in the third quarter of fiscal 2005.
Comparing the fiscal nine months ended October 28, 2006 with the
comparable prior year period, net income increased to $18.3 million
from $16.7 million; and diluted earnings per share rose 8% to $1.00
from $0.93.
A conference call to discuss this earnings press release is
scheduled for today, December 7, 2006, at 11:00 a.m. Eastern Time. To
participate in the call today, please dial (USA) 800-288-8976 or
(International) 612-332-0932, at least five minutes before 11:00 a.m.
Eastern Time. A replay of the conference call will be available after
2:30 p.m. Eastern Time today until 11:59 p.m. on December 14, 2006, by
dialing (USA) 800-475-6701 or (International) 320-365-3844. The access
code for the replay will be 850674. In addition, a webcast replay of
the conference call will be posted on the investor relations section
of our website: www.josbank.com (select 'Company Information' and
'Investor Relations').
Comparing the third fiscal quarter ended October 28, 2006 with the
comparable prior year period, total sales increased 13.1% to $119.5
million from $105.6 million; comparable store sales increased 2.3%;
and combined catalog and Internet sales increased 21.4%.
Comparing the fiscal nine months ended October 28, 2006 with the
comparable prior year period, total sales increased 17.1% to $352.3
million from $300.8 million; comparable store sales increased 5.6%;
and combined catalog and Internet sales increased 21.6%.
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.
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 371 stores in 42 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, 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, 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 and the
Company's subsequent Quarterly Reports on Form 10-Q filed through the
date hereof. 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 Nine Months Ended
----------------------- -----------------------
October 29, October 28, October 29, October 28,
2005 2006 2005 2006
----------- ----------- ----------- -----------
Net sales $ 105,639 $ 119,511 $ 300,802 $ 352,274
Cost of goods sold 42,167 47,057 115,539 135,770
----------- ----------- ----------- -----------
Gross Profit 63,472 72,454 185,263 216,504
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 43,294 50,620 123,728 147,133
General and
administrative 11,468 12,599 31,487 37,254
Store opening costs 164 176 323 324
----------- ----------- ----------- -----------
Total operating
expenses 54,926 63,395 155,538 184,711
----------- ----------- ----------- -----------
Operating income 8,546 9,059 29,725 31,793
Interest expense, net 637 418 1,302 986
----------- ----------- ----------- -----------
Income before
provision for income
taxes 7,909 8,641 28,423 30,807
Provision for income
taxes 3,257 3,133 11,695 12,465
----------- ----------- ----------- -----------
Net income $ 4,652 $ 5,508 $ 16,728 $ 18,342
=========== =========== =========== ===========
Earnings per share:
Net income per share:
Basic $ 0.27 $ 0.31 $ 0.99 $ 1.02
Diluted $ 0.26 $ 0.30 $ 0.93 $ 1.00
Weighted average
shares outstanding:
Basic 17,101 18,016 16,966 17,967
Diluted 18,075 18,330 17,993 18,339
Note: The foregoing unaudited Condensed Consolidated Statements of
Income are excerpts from our Condensed Consolidated Unaudited
Financial Statements (for the three months and nine months ended
October 29, 2005 and October 28, 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 December 7, 2006. The
foregoing unaudited financial information should be read in
conjunction with the Company's Form 10-Q for the quarterly period
ended October 28, 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, 2006 October 28, 2006
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 7,344 $ 1,554
Accounts receivable, net 6,455 9,056
Inventories:
Raw materials 7,574 8,012
Finished goods 169,068 194,625
---------------- ----------------
Total inventories 176,642 202,637
Prepaid expenses and other current
assets 12,852 14,955
Prepaid income taxes - 1,444
---------------- ----------------
Total current assets 203,293 229,646
---------------- ----------------
NONCURRENT ASSETS:
Property, plant and equipment, net 100,973 113,551
Other noncurrent assets 566 606
---------------- ----------------
Total assets $ 304,832 $ 343,803
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 42,678 $ 34,289
Accrued expenses 52,480 51,067
Current portion of long-term debt 971 1,020
Deferred tax liability - current 10,954 8,836
---------------- ----------------
Total current liabilities 107,083 95,212
NONCURRENT LIABILITIES:
Long-term debt, net of current
portion 4,826 21,117
Noncurrent lease obligations 35,007 39,386
Deferred tax liability -
noncurrent 2,697 3,285
Other noncurrent liabilities 1,419 1,204
---------------- ----------------
Total liabilities 151,032 160,204
---------------- ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 173 179
Additional paid-in capital 66,757 78,208
Retained earnings 86,870 105,212
---------------- ----------------
Total stockholders' equity 153,800 183,599
---------------- ----------------
Total liabilities and
stockholders' equity $ 304,832 $ 343,803
================ ================
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 October 28,
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 December 7, 2006. The foregoing unaudited financial
information should be read in conjunction with the Company's Form 10-Q
for the quarterly period ended October 28, 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)
Nine Months Ended
---------------------------------
October 29, 2005 October 28, 2006
---------------- ----------------
Cash flows from operating
activities:
Net income $ 16,728 $ 18,342
Adjustments to reconcile net
income to net cash used in
operating activities:
Increase (decrease) in deferred
income taxes 7,672 (1,530)
Depreciation and amortization 9,460 11,603
Loss on disposals of plant and
equipment 24 30
Income tax benefit from exercise
of stock options 3,749 -
Net increase in operating working
capital and other components (64,636) (41,710)
---------------- ----------------
Net cash used in operating
activities (27,003) (13,265)
---------------- ----------------
Cash flows from investing
activities:
Capital expenditures (18,056) (20,322)
---------------- ----------------
Net cash used in investing
activities (18,056) (20,322)
---------------- ----------------
Cash flows from financing
activities:
Borrowings under long-term Credit
Agreement 92,731 85,253
Repayments under long-term Credit
Agreement (48,186) (68,595)
Income tax benefit from exercise
of stock options -- 4,371
Proceeds from issuance of long-
term debt -- 400
Repayment of other long-term debt (678) (718)
Net proceeds from exercise of
stock options 1,299 7,086
---------------- ----------------
Net cash provided by financing
activities 45,166 27,797
---------------- ----------------
Net increase (decrease) in cash and
cash equivalents 107 (5,790)
Cash and cash equivalents -
beginning of period 1,425 7,344
---------------- ----------------
Cash and cash equivalents - end of
period $ 1,532 $ 1,554
================ ================
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 29, 2005 and
October 28, 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 December 7, 2006. The foregoing unaudited
financial information should be read in conjunction with the Company's
Form 10-Q for the quarterly period ended October 28, 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