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| 8-K - JOS. A. BANK CLOTHIERS, INC. 8-K - BANK JOS A CLOTHIERS INC /DE/ | a6529145.htm |
Exhibit 99.1
JoS. A. Bank Clothiers Reports 7% Increase in Profits for Third Quarter of Fiscal Year 2010
HAMPSTEAD, Md.--(BUSINESS WIRE)--December 1, 2010--JoS. A. Bank Clothiers, Inc. (Nasdaq Global Select Market: JOSB) announces that net income for the third quarter of fiscal year 2010 increased 7.1% to $12.6 million, as compared to $11.7 million for the third quarter of fiscal year 2009. Earnings per share for the third quarter of fiscal year 2010 increased 7.1% to $0.45 per share, as compared to $0.42 per share for the third quarter of fiscal year 2009. The third quarter of fiscal year 2010 ended October 30, 2010; the third quarter of fiscal year 2009 ended October 31, 2009.
Total sales for the third quarter of fiscal year 2010 increased 7.4% to $173.3 million from $161.3 million in the third quarter of fiscal year 2009, while comparable store sales increased 3.0% and Direct Marketing sales increased 14.9%.
Comparing the first nine months of fiscal year 2010 with the first nine months of fiscal year 2009, net income increased 25.6% to $44.9 million, as compared to $35.7 million and earnings per share increased 24.8% to $1.61 per share, as compared to $1.29 per share. Total sales for the first nine months of fiscal year 2010 increased 9.9% to $539.8 million from $491.0 million for the first nine months of fiscal year 2009, while comparable store sales increased 7.6% and Direct Marketing sales increased 8.4%.
“Sales for the quarter were positive but started out below plan in August and then picked up in September and October with each month getting progressively better, and then were even stronger in November and early December,” commented R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. "The hot weather in August was hard on us and it was tough to stage a big rebound after that due to the election; however, with these third quarter results, we have achieved record earnings growth in 36 of the past 37 quarters when compared to the respective prior year periods, including 18 quarters in a row. Right now, to date, the fourth quarter has started out strong. November suit sales and total sales were up substantially compared to last year and were ahead of our plans. Our fourth quarter results last year were very strong. Therefore we remain cautious, but our merchandising and marketing plans are in place for the most important selling period of the quarter and the year and we have confidence in those plans,” continued Mr. Black.
All earnings per share amounts in this news release represent diluted earnings per share. All share and per share amounts of common shares included in this release have been adjusted to reflect the stock split in the form of a 50% stock dividend distributed on August 18, 2010.
A conference call to discuss the third quarter of fiscal year 2010 earnings will be held Thursday, December 2, 2010 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 800-230-1074 or (International) 612-234-9959 at least five minutes before 11:00 a.m. ET. A replay of the conference call will be available after 1:00 p.m. ET on December 2, 2010 until December 9, 2010 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 182157. 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”).
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the nation’s leading designers, manufacturers and retailers of men’s classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 502 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, including negative changes to consumer confidence and other recessionary pressures, 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 suitable lease sites for new stores, doing business on an international basis, the ability to source product from its global supplier base, legal matters and other competitive factors. The identified risk factors and 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 January 30, 2010 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 31, 2009 | October 30, 2010 | October 31, 2009 | October 30, 2010 | |||||||||||||
| Net sales | $ | 161,309 | $ | 173,268 | $ | 490,969 | $ | 539,805 | ||||||||
| Cost of goods sold | 60,502 | 62,429 | 188,531 | 197,320 | ||||||||||||
| Gross profit | 100,807 | 110,839 | 302,438 | 342,485 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing, including occupancy costs | 67,450 | 73,961 | 200,079 | 218,228 | ||||||||||||
| General and administrative | 14,043 | 16,421 | 43,514 | 50,332 | ||||||||||||
| Total operating expenses | 81,493 | 90,382 | 243,593 | 268,560 | ||||||||||||
| Operating income | 19,314 | 20,457 | 58,845 | 73,925 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 101 | 148 | 262 | 422 | ||||||||||||
| Interest expense | (93 | ) | (33 | ) | (301 | ) | (128 | ) | ||||||||
| Total other income (expense) | 8 | 115 | (39 | ) | 294 | |||||||||||
| Income before provision for income taxes | 19,322 | 20,572 | 58,806 | 74,219 | ||||||||||||
| Provision for income taxes | 7,594 | 8,009 | 23,111 | 29,369 | ||||||||||||
| Net income | $ | 11,728 | $ | 12,563 | $ | 35,695 | $ | 44,850 | ||||||||
| Per share information: | ||||||||||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.43 | $ | 0.46 | $ | 1.30 | $ | 1.63 | ||||||||
| Diluted | $ | 0.42 | $ | 0.45 | $ | 1.29 | $ | 1.61 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 27,438 | 27,534 | 27,437 | 27,529 | ||||||||||||
| Diluted | 27,798 | 27,849 | 27,778 | 27,831 | ||||||||||||
Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our unaudited Condensed Consolidated Financial Statements for the three and nine months ended October 31, 2009 and October 30, 2010 and do not include the Notes, which are 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 October 30, 2010, which was filed with the Securities and Exchange Commission on December 1, 2010.
| JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In Thousands) | ||||||
| January 30, 2010 | October 30, 2010 | |||||
| (Audited) | (Unaudited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 21,853 | $ | 98,507 | ||
| Short-term investments | 169,736 | 79,746 | ||||
| Accounts receivable, net | 5,860 | 11,950 | ||||
| Inventories: | ||||||
| Finished goods | 209,443 | 258,328 | ||||
| Raw materials | 8,878 | 10,373 | ||||
| Total inventories | 218,321 | 268,701 | ||||
| Prepaid expenses and other current assets | 16,035 | 27,949 | ||||
| Total current assets | 431,805 | 486,853 | ||||
| NONCURRENT ASSETS: | ||||||
| Property, plant and equipment, net | 124,139 | 133,742 | ||||
| Other noncurrent assets | 420 | 533 | ||||
| Total assets | $ | 556,364 | $ | 621,128 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 18,225 | $ | 44,991 | ||
| Accrued expenses | 85,256 | 76,726 | ||||
| Deferred tax liability – current | 5,064 | 4,595 | ||||
| Total current liabilities | 108,545 | 126,312 | ||||
| NONCURRENT LIABILITIES: | ||||||
| Deferred rent | 51,853 | 50,205 | ||||
| Deferred tax liability – noncurrent | 1,608 | 2,532 | ||||
| Other noncurrent liabilities | 1,048 | 878 | ||||
| Total liabilities | 163,054 | 179,927 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||
| Common stock | 183 | 275 | ||||
| Additional paid-in capital | 83,249 | 86,289 | ||||
| Retained earnings | 309,823 | 354,582 | ||||
| Accumulated other comprehensive income | 55 | 55 | ||||
| Total stockholders’ equity | 393,310 | 441,201 | ||||
| Total liabilities and stockholders’ equity | $ | 556,364 | $ | 621,128 | ||
Note: The foregoing audited and unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Financial Statements (as of January 30, 2010 and October 30, 2010) and do not include the Notes, which are an integral part thereof. The foregoing financial information should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 30, 2010 and the Annual Report on Form 10-K for the fiscal year ended January 30, 2010, which were filed with the Securities and Exchange Commission on December 1, 2010 and March 31, 2010, respectively.
| JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In Thousands) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| October 31, 2009 | October 30, 2010 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 35,695 | $ | 44,850 | ||||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization | 16,533 | 18,107 | ||||||
| Loss on disposals of property, plant and equipment | 120 | 150 | ||||||
| Non-cash equity compensation | - | 701 | ||||||
| Increase (decrease) in deferred taxes | (200 | ) | 455 | |||||
| Net (increase) in operating working capital and other components | (57,730 | ) | (59,194 | ) | ||||
| Net cash provided by (used in) operating activities | (5,582 | ) | 5,069 | |||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (10,595 | ) | (20,696 | ) | ||||
| Net maturities (purchases) of short-term investments | (64,879 | ) | 89,990 | |||||
| Net cash provided by (used in) investing activities | (75,474 | ) | 69,294 | |||||
| Cash flows from financing activities: | ||||||||
| Income tax benefit from exercise of stock options | 57 | 1,300 | ||||||
| Net proceeds from exercise of stock options | 38 | 1,012 | ||||||
| Fractional share payments | - | (21 | ) | |||||
| Net cash provided by financing activities | 95 | 2,291 | ||||||
| Net increase (decrease) in cash and cash equivalents | (80,961 | ) | 76,654 | |||||
| Cash and cash equivalents – beginning of period | 122,875 | 21,853 | ||||||
| Cash and cash equivalents – end of period | $ | 41,914 | $ | 98,507 | ||||
Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our unaudited Condensed Consolidated Financial Statements for the nine months ended October 31, 2009 and October 30, 2010 and do not include the Notes, which are 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 October 30, 2010, which was filed with the Securities and Exchange Commission on December 1, 2010.
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
Investor Relations Voicemail, 410-239-5900
E-commerce Address for
JoS. A. Bank Clothiers, Inc.:
www.josbank.com