Exhibit 99.1
JoS. A. Bank Clothiers Reports 16% Increase in Second Quarter Earnings
Per Share; Management to Hold Conference Call Today
HAMPSTEAD, Md.--(BUSINESS WIRE)--Sept. 12, 2007--JoS. A. Bank
Clothiers, Inc. (Nasdaq Global Select Market: JOSB) announces that
earnings for the second quarter of fiscal 2007 increased 16% to $0.44
per share, as compared to $0.38 per share for the second quarter of
fiscal 2006. Net income in the second quarter of fiscal 2007 was $8.2
million, as compared to $7.0 million in the second quarter of fiscal
2006. The second quarter of fiscal 2007 ended August 4, 2007; the
second quarter of fiscal 2006 ended July 29, 2006.
Comparing the six fiscal months ended August 4, 2007 with the six
fiscal months ended July 29, 2006, earnings increased 29% to $0.90 per
share, as compared to $0.70 per share and net income increased to
$16.6 million, as compared to $12.8 million.
A conference call to discuss fiscal 2007 second quarter earnings
will be held today at 11:00 a.m. Eastern Time (ET). To join in the
call please dial (USA) 877-260-8899 or (International) 612-332-0819 at
least five minutes before 11:00 a.m. ET. A replay of the conference
call will be available after 2:30 p.m. ET on September 12, 2007 until
September 19, 2007 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
885715. 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").
Beginning in fiscal 2008, the Company will provide actual sales
results to the investing public each quarter in connection with the
release of its quarterly earnings. In addition, the Company may (but
undertakes no obligation to do so) provide updates on the business
during the quarter, typically in connection with its quarterly
conference calls which are open to the public, as well as in periodic
press releases and other communications. In connection with this
updated policy, David E. Ullman, Executive Vice-President and Chief
Financial Officer stated, "We manage our business, including the
merchandise trends and store results, with a long-term perspective,
and our merchandise assortments are typically set in two seasons each
year. As such, short-term fluctuations in sales do not necessarily
reflect the overall performance of the business and we have decided to
communicate our sales in a manner that is more aligned to our business
cycles. We have also made this change after much internal discussion
and after considering industry trends and comments from the investing
public, including our shareholders."
All earnings per share amounts in this news release represent
diluted earnings per share.
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 394 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 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, 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 the
Company's business or future financial results are detailed in the
Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended
February 3, 2007 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.
Condensed Consolidated Balance Sheets
(In Thousands)
(unaudited)
February 3, 2007 August 4, 2007
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 43,080 $ 43,307
Accounts receivable, net 5,193 6,458
Inventories:
Finished goods 175,690 186,343
Raw materials 7,781 9,214
---------------- ----------------
Total inventories 183,471 195,557
Prepaid expenses and other
current assets 18,560 17,136
---------------- ----------------
Total current assets 250,304 262,458
NONCURRENT ASSETS:
Property, plant and equipment,
net 117,553 117,818
Other noncurrent assets 535 518
---------------- ----------------
Total assets $ 368,392 $ 380,794
================ ================
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 41,683 $ 47,916
Accrued expenses 63,606 49,637
Deferred tax liability - current 8,453 8,465
---------------- ----------------
Total current liabilities 113,742 106,018
NONCURRENT LIABILITIES:
Long-term debt 412 418
Noncurrent lease obligations 42,053 43,795
Deferred tax liability -
noncurrent 2,595 1,990
Other noncurrent liabilities 1,356 1,690
---------------- ----------------
Total liabilities 160,158 153,911
---------------- ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock 180 181
Additional paid-in capital 78,101 80,185
Retained earnings 130,092 146,656
Accumulated other comprehensive
losses (139) (139)
---------------- ----------------
Total stockholders' equity 208,234 226,883
---------------- ----------------
Total liabilities and
stockholders' equity $ 368,392 $ 380,794
================ ================
Note: The foregoing audited and unaudited Condensed Consolidated
Balance Sheets are excerpts from our Condensed Consolidated Financial
Statements (as of February 3, 2007 and August 4, 2007) and do not
include the Notes, which are considered an integral part thereof. 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 August 4, 2007 and the Annual Report on Form
10-K for the fiscal year ended February 3, 2007, which were filed with
the Securities and Exchange Commission on September 12, 2007 and April
17, 2007, respectively.
JOS. A. BANK CLOTHIERS, INC.
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Information)
(Unaudited)
Three Months Ended Six Months Ended
--------------------- ---------------------
July 29, August 4, July 29, August 4,
2006 2007 2006 2007
---------- ---------- ---------- ----------
Net sales $ 119,098 $ 134,278 $ 232,763 $ 263,811
Cost of goods sold 44,799 50,531 88,713 98,984
---------- ---------- ---------- ----------
Gross profit 74,299 83,747 144,050 164,827
---------- ---------- ---------- ----------
Operating expenses:
Sales and marketing 49,545 57,140 96,661 110,921
General and
administrative 12,455 13,091 24,655 26,588
---------- ---------- ---------- ----------
Total operating expenses 62,000 70,231 121,316 137,509
---------- ---------- ---------- ----------
Operating income 12,299 13,516 22,734 27,318
Other income (expense):
Interest income 29 540 52 978
Interest expense (276) (92) (620) (193)
---------- ---------- ---------- ----------
Total other income
(expense) (247) 448 (568) 785
---------- ---------- ---------- ----------
Income before provision
for income taxes 12,052 13,964 22,166 28,103
Provision for income taxes 5,079 5,758 9,332 11,539
---------- ---------- ---------- ----------
Net income $ 6,973 $ 8,206 $ 12,834 $ 16,564
========== ========== ========== ==========
Earnings per share:
Net income per share:
Basic $ 0.39 $ 0.45 $ 0.72 $ 0.92
Diluted $ 0.38 $ 0.44 $ 0.70 $ 0.90
Weighted average shares
outstanding:
Basic 18,001 18,127 17,942 18,085
Diluted 18,339 18,444 18,343 18,410
Note: The foregoing unaudited Condensed Consolidated Statements of
Income are excerpts from our unaudited Condensed Consolidated
Financial Statements for the three and six months ended July 29, 2006
and August 4, 2007 and do not include the Notes, which are considered
an integral part thereof. 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 August 4, 2007,
which was filed with the Securities and Exchange Commission on
September 12, 2007.
JOS. A. BANK CLOTHIERS, INC.
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Six Months Ended
----------------------------------
July 29, 2006 August 4, 2007
---------------- ----------------
Cash flows from operating
activities:
Net income $ 12,834 $ 16,564
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 7,542 9,043
Loss on disposition of property,
plant and equipment 14 107
Increase (decrease) in deferred
taxes 388 (593)
Net increase in operating
working capital and other
components (26,832) (15,453)
---------------- ----------------
Net cash provided by (used
in) operating activities (6,054) 9,668
---------------- ----------------
Cash flows from investing
activities:
Capital expenditures (12,899) (11,526)
---------------- ----------------
Net cash used in investing
activities (12,899) (11,526)
---------------- ----------------
Cash flows from financing
activities:
Borrowings under long-term
Credit Agreement 7,747 -
Repayment under long-term Credit
Agreement (6,785) -
Proceeds from issuance of long-
term debt 400 -
Repayment of other long-term
debt (478) -
Income tax benefit from exercise
of stock options 4,964 625
Net proceeds from exercise of
stock options 7,086 1,460
---------------- ----------------
Net cash provided by
financing activities 12,934 2,085
---------------- ----------------
Net increase (decrease) in cash and
cash equivalents (6,019) 227
Cash and cash equivalents -
beginning of year 7,344 43,080
---------------- ----------------
Cash and cash equivalents - end of
year $ 1,325 $ 43,307
================ ================
Note: The foregoing unaudited Condensed Consolidated Statements of
Cash Flows are excerpts from our unaudited Condensed Consolidated
Financial Statements for six months ended July 29, 2006 and August 4,
2007 and do not include the Notes, which are considered an integral
part thereof. 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 August 4, 2007, which was filed with
the Securities and Exchange Commission on September 12, 2007.
CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD
David E. Ullman,
EVP/CFO,
410-239-5715
or
Investor Relations Information Request Website
(http://phx.corporate-ir.net/phoenix.zhtml?c=113815&p=
irol-inforeq),
or Voicemail, 410-239-5900
E-commerce Address for JoS. A. Bank Clothiers, Inc.:
www.josbank.com