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8-K - FORM 8-K - TAILORED BRANDS INC | h80479e8vk.htm |
Exhibit 99.1
News Release | ||
Contacts: | ||
For Immediate Release |
||
Neill Davis, Mens Wearhouse (281) 776-7000 Ken Dennard, DRG&L (713) 529-6600 |
MENS WEARHOUSE REPORTS
FISCAL 2010 FOURTH QUARTER RESULTS
FISCAL 2010 FOURTH QUARTER RESULTS
| Q4 2010 GAAP diluted loss per share was $0.27 and adjusted diluted loss per share was $0.19. | |
| Fiscal 2010 GAAP diluted earnings per share were $1.27 and adjusted diluted earnings per share were $1.47. | |
| Company provides guidance for first quarter and full year of fiscal 2011 | |
| Conference call at 5:00 pm Eastern today |
HOUSTON March 9, 2011 The Mens Wearhouse (NYSE: MW) today announced its consolidated
financial results for the fourth quarter ended January 29, 2011.
Fourth Quarter Sales Summary Fiscal 2010
Comparable Store Sales | ||||||||||||||||||||
U.S. dollars, in millions | Total Sales | Change % | ||||||||||||||||||
Current Year | Prior Year | Change % | Current Year | Prior Year | ||||||||||||||||
Total Company |
$ | 542.1 | (a) | $ | 457.2 | (a) | 18.6 | % | ||||||||||||
Total Retail Segment |
$ | 479.7 | $ | 454.2 | 5.6 | % | ||||||||||||||
MW |
$ | 311.1 | $ | 294.3 | 5.7 | % | 4.3 | %(c) | -7.1 | %(c) | ||||||||||
K&G |
$ | 96.4 | $ | 92.7 | 4.0 | % | 4.5 | % | -5.0 | % | ||||||||||
Moores Canada |
$ | 66.3 | $ | 61.7 | 7.3 | % | 2.3 | %(b) | 1.9 | %(b) | ||||||||||
Corporate Apparel Segment |
$ | 62.5 | $ | 3.1 | 1,943.7 | % |
Year-To-Date Sales Summary Fiscal 2010
Comparable Store Sales | ||||||||||||||||||||
U.S. dollars, in millions | Total Sales | Change % | ||||||||||||||||||
Current Year | Prior Year | Change % | Current Year | Prior Year | ||||||||||||||||
Total Company |
$ | 2,102.7 | (a) | $ | 1,909.6 | (a) | 10.1 | % | ||||||||||||
Total Retail Segment |
$ | 1,976.4 | $ | 1,896.1 | 4.2 | % | ||||||||||||||
MW |
$ | 1,345.9 | $ | 1,281.8 | 5.0 | % | 4.7 | %(c) | -4.0 | %(c) | ||||||||||
K&G |
$ | 360.3 | $ | 370.1 | -2.7 | % | -1.5 | % | -1.9 | % | ||||||||||
Moores Canada |
$ | 246.7 | $ | 222.1 | 11.1 | % | 2.2 | %(b) | -0.9 | %(b) | ||||||||||
Corporate Apparel Segment |
$ | 126.3 | $ | 13.5 | 837.4 | % |
(a) | Due to rounded numbers, total Company may not sum. | |
(b) | Comparable store sales change is based on the Canadian dollar. | |
(c) | Does not include ecommerce sales. |
Page 1
GAAP diluted loss per share was $0.27 for the fourth quarter ended January 29, 2011. Adjusted
diluted loss per share was $0.19 after excluding $2.3 million ($1.6 million after tax or $0.03 per
diluted share outstanding) in acquisition transaction and integration expenses, $1.1 million ($0.7
million after tax or $0.01 per diluted share outstanding) in tuxedo distribution closure costs and
$2.5 million ($1.7 million after tax or $0.03 per diluted share outstanding) for a non-cash fixed
asset impairment charge. Due to rounded numbers, the adjusted loss per share may not sum. This
compares to adjusted diluted loss per share guidance given December 7, 2010 of $0.19 to $0.22. In
Q4 2009, revised GAAP diluted loss per share was $0.36 and adjusted diluted loss per share was
$0.11.
GAAP diluted earnings per share was $1.27 for the fiscal year ended January 29, 2011. Adjusted
diluted earnings per share was $1.47 after excluding $6.4 million ($4.3 million after tax or $0.08
per diluted share outstanding) in acquisition transaction and integration expenses, $3.1 million
($2.1 million after tax or $0.04 per diluted share outstanding) in tuxedo distribution closure
costs and $5.9 million ($3.9 million after tax or $0.07 per diluted share outstanding) for a
non-cash asset impairment charge. Due to rounded numbers, the adjusted earnings per share may not
sum. In fiscal 2009, revised GAAP diluted earnings per share was $0.88 and adjusted diluted
earnings per share was $1.12.
During the third quarter of 2010, the Company changed the inventory valuation method used by its
K&G brand from lower of cost or market, as determined by the retail inventory method, to lower of
cost or market using the average cost method. This change was done to bring all retail operations
of the Company to a common valuation methodology platform. All financial statements in this press
release have been revised to reflect this change and are therefore comparable. Prior year fourth
quarter revised GAAP diluted loss per share was $0.36, unchanged from the previously reported GAAP
diluted loss per share, and prior fiscal year revised GAAP diluted earnings per share was $0.88, an
increase of $0.02 per share.
FOURTH QUARTER REVIEW
Dimensions and Alexandra Acquisitions
On August 6, 2010, the Company acquired Dimensions and certain assets of Alexandra, two leading
providers of corporate clothing uniforms and workwear in the United Kingdom, for a total cash
consideration of approximately £61 million (US$97.8 million). The combined businesses are
organized under a UK-based holding company of which Mens Wearhouse controls 86% and previous
Dimensions shareholders control 14%.
The financial results of the combined UK operations, excluding transaction and integration costs,
were $0.03 accretive to the Companys fourth quarter diluted earnings per share. Transaction and
integration costs were $2.3 million ($1.6 million after tax or $0.03 per diluted share
outstanding). Total sales of the combined UK operations were US$54.2 million.
The financial results of the combined UK operations, excluding transaction and integration costs,
were $0.06 accretive to the Companys fiscal 2010 diluted earnings per share. Transaction and
integration costs were $6.4 million ($4.3 million after tax or $0.08 per diluted share
outstanding). Total sales of the combined UK operations were US$104.8 million for fiscal 2010.
Page 2
Tuxedo Distribution Closures
In late August 2010, a decision was made by the Company to cease tuxedo distribution operations in
November 2010 at four of the then eleven facilities that we used for tuxedo distribution. The
operations at these four facilities were assumed by other tuxedo distribution facilities in our
system allowing us to more effectively manage our tuxedo rental operations. In the fourth quarter,
a charge of $1.1 million ($0.7 million after tax or $0.01 per diluted share outstanding) was
incurred consisting primarily of labor costs associated with transferring and processing the tuxedo
rental inventory from the closed facilities, severance payments and fixed asset write-offs.
The expected ongoing annual benefit, beginning in fiscal 2011, as a result of these closures will
be a reduction in operating costs of approximately $4.0 million.
Review of Fourth Quarter Results
Total Company net sales increased 18.6% for the quarter.
At Mens Wearhouse/Mens Wearhouse and Tux, the increase of 4.3% in comparable store sales was due
to increased units per transaction, higher store traffic levels and an 11.1% comparable store
increase in tuxedo rental services revenues.
At Moores, the increase of 2.3% in comparable store sales was due to increased units per
transaction and higher net sales price per unit which offset a decline in store traffic.
At K&G, the increase of 4.5% in comparable store sales was due mainly to an increase in units per
transaction and higher store traffic levels.
Corporate apparel segment net sales increased $59.4 million to $62.5 million for the quarter
compared to the same prior year quarter. The increase was primarily due to our acquisitions of
Dimensions and Alexandra in the UK on August 6, 2010.
Gross margin, as a percentage of total net sales, increased 21 basis points from 37.1% to 37.3% due
to an increase in tuxedo rental margins and a decrease in occupancy costs as a percent of sales
offset by a decrease in retail merchandise margins and the increased mix of the lower margin
corporate apparel business.
Selling, general and administrative expenses were $225.4 million in the current year and increased
10.6% from the prior years SG&A of $203.8 million. The prior year quarter included $19.5 million
in non-cash fixed asset impairment charges. Excluding these charges, prior year SG&A expense was
$184.3 million. During the current quarter, the Company incurred $2.3 million in acquisition
transaction and integration costs, $1.1 million in tuxedo distribution closure costs and $2.5
million for non-cash fixed asset impairment charges related primarily to K&G and Mens Wearhouse
and Tux stores. Excluding these costs, fourth quarter SG&A expenses were $219.4 million or an
increase of 19.0% to the adjusted prior year quarter. SG&A related to the acquired UK operations
resulted in a 7.5% increase. The remaining 11.5% increase is primarily due to increased payroll
related costs and increased marketing costs. As a percentage of total net sales, adjusted SG&A
increased 16 basis points from 40.3% to 40.5%.
Page 3
Operating loss was $23.2 million. Excluding $2.3 million in acquisition and integration costs,
$1.1 million in tuxedo distribution closure costs and the $2.5 million non-cash fixed asset
impairment charge; operating loss was $17.3 million or negative 3.2% of total net sales. This
compares with the adjusted prior year operating loss of $14.8 million or negative 3.2% of total net
sales, which exclude $19.5 million in pretax non-cash fixed asset impairment charges.
Total inventories of $486.5 million increased 11.9% from the prior year fourth quarter of $434.9
million. Excluding the inventory related to the acquisitions of Dimensions and Alexandra in the
UK, inventories decreased 5.7%.
The Company had no bank debt at the end of the fourth quarter of 2010 as all debt was paid off
during the quarter.
2011 GUIDANCE
For the fiscal year, GAAP diluted earnings per share is expected to be in a range of $1.71 to
$1.81. Adjusted diluted earnings per share are expected to be in a range of $1.75 to $1.85.
Adjusted earnings per share exclude acquisition integration expenses of $3.3 million ($2.2 million
after tax or $0.04 per diluted share outstanding).
For the first quarter of the fiscal year, GAAP diluted earnings per share is expected to be in a
range of $0.26 to $0.29. Adjusted diluted earnings per share are expected to be in a range of
$0.27 to $0.30. Adjusted earnings per share exclude acquisition integration expenses of $0.6
million ($0.4 million after tax or $0.01 per diluted share outstanding).
The financial results of the combined UK acquisitions, excluding acquisition integration expenses,
are expected to be accretive to the Companys full year and first quarter diluted earnings per
share.
Page 4
Guidance | Guidance | |||||||
FY 2011 | 1Q FY 2011 | |||||||
Total Sales Increase |
8% to 9% (1) | 14% to 15% (1) | ||||||
Comparable Store Sales Growth (2) |
||||||||
MW |
+2% to +4% | +4% to +5% | ||||||
K&G |
(1%) to (2%) | (1%) to (2%) | ||||||
Moores |
Flat to +1% | (2%) to (3%) | ||||||
Gross Profit Margin |
42.25% to 42.45% (3) | 40.60% to 40.75% (3) | ||||||
S G & A (as % of Sales) |
35.75% to 35.95% (4) | 36.15% to 36.30% (4) | ||||||
Effective Tax Rate |
35.25 | % | 37.00 | % | ||||
Weighted Average Shares
Outstanding (millions) |
52.6 | 52.6 | ||||||
GAAP EPS |
$ | 1.71 to $1.81 | $ | 0.26 to $0.29 | ||||
Adjusted EPS |
$ | 1.75 to $1.85 | (4) | $ | 0.27 to $0.30 | (4) | ||
Foreign Exchange Conversion (avg.) |
||||||||
US Dollar to GBP |
1.59 | 1.59 | ||||||
US Dollar to Canadian Dollar |
1.00 | 1.00 |
Footnotes to Guidance:
1. | Includes US$220 million for full year FY 2011 and US$55 million for 1Q FY 2011 of sales from acquired operations of Dimensions and Alexandra. | |
2. | Includes an assumed comparable store increase in tuxedo rental revenues of 7% to 8% for the full year FY 2011 and a 1% to 2% increase in 1Q FY 2011. | |
3. | Occupancy costs are expected to be flat for full year FY 2011 and decrease low single digit for 1Q FY 2011. | |
4. | Excludes acquisition integration costs. |
CONFERENCE CALL AND WEBCAST INFORMATION
At 5:00 p.m. Eastern time on Wednesday, March 9, 2011, Company management will host a conference
call and real time webcast to review the fourth quarter of fiscal 2010 and its outlook for the
first quarter and full year of fiscal 2011.
To access the conference call, dial 480-629-9772. To access the live webcast presentation, visit
the Investor Relations section of the Companys website at www.menswearhouse.com. A
telephonic replay will be available through March 16, 2011 by calling 303-590-3030 and entering
the access code of 4418605#, or a webcast archive will be available free on the website for
approximately 90 days.
Page 5
STORE INFORMATION
January 29, 2011 | January 30, 2010 | |||||||||||||||
Number | Sq. Ft. | Number | Sq. Ft. | |||||||||||||
of Stores | (000s) | of Stores | (000s) | |||||||||||||
Mens Wearhouse |
585 | 3,319.0 | 581 | 3,284.4 | ||||||||||||
Mens Wearhouse and Tux |
388 | 535.7 | 454 | 623.4 | ||||||||||||
Moores, Clothing for Men |
117 | 737.8 | 117 | 734.6 | ||||||||||||
K&G (a) |
102 | 2,394.1 | 107 | 2,475.6 | ||||||||||||
Total |
1,192 | 6,986.6 | 1,259 | 7,118.0 |
(a) | 91 and 94 stores, respectively, offering womens apparel. |
Founded in 1973, Mens Wearhouse is one of North Americas largest specialty retailers of
mens apparel with 1,192 stores. The Mens Wearhouse, Moores and K&G stores carry a full selection
of designer, brand name and private label suits, sport coats, furnishings and accessories and Mens
Wearhouse and Tux stores carry a limited selection. Tuxedo rentals are available in the Mens
Wearhouse, Moores and Mens Wearhouse and Tux stores. Additionally, Mens Wearhouse operates a
global corporate apparel and workwear group consisting of TwinHill in the United States and
Dimensions and Alexandra in the United Kingdom.
This press release contains forward-looking information. The forward-looking statements are made
pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may be significantly impacted by various factors, including
sensitivity to economic conditions and consumer confidence, possibility of limited ability to
expand Mens Wearhouse stores, possibility that certain of our expansion strategies may present
greater risks, changes in foreign currency rates and other factors described in the Companys
annual report on Form 10-K for the fiscal year ended January 30, 2010 and subsequent Forms 10-Q.
For additional information on Mens Wearhouse, please visit the Companys website at
www.menswearhouse.com. The website for Dimensions is www.dimensions.co.uk and the website
for Alexandra is www.alexandra.co.uk.
###
Page 6
THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS In thousands, except per share data (Unaudited) |
FOR THE THREE MONTHS ENDED
January 29, 2011 AND January 30, 2010
(In thousands, except per share data)
January 29, 2011 AND January 30, 2010
(In thousands, except per share data)
Three Months Ended | Variance | |||||||||||||||||||||||||||
% of | % of | Basis | ||||||||||||||||||||||||||
2010 | Sales | 2009 | Sales | Dollar | % | Points | ||||||||||||||||||||||
(as adjusted) (a) | ||||||||||||||||||||||||||||
Net sales: |
||||||||||||||||||||||||||||
Clothing product |
$ | 407,953 | 75.25 | % | $ | 387,084 | 84.66 | % | $ | 20,869 | 5.39 | % | (9.41 | ) | ||||||||||||||
Tuxedo rental services |
38,356 | 7.08 | % | 35,380 | 7.74 | % | 2,976 | 8.41 | % | (0.66 | ) | |||||||||||||||||
Alteration and other services |
33,343 | 6.15 | % | 31,698 | 6.93 | % | 1,645 | 5.19 | % | (0.78 | ) | |||||||||||||||||
Retail segment sales |
479,652 | 88.48 | % | 454,162 | 99.33 | % | 25,490 | 5.61 | % | (10.85 | ) | |||||||||||||||||
Corporate apparel segment sales |
62,454 | 11.52 | % | 3,056 | 0.67 | % | 59,398 | 1,943.65 | % | 10.85 | ||||||||||||||||||
Total net sales |
542,106 | 100.00 | % | 457,218 | 100.00 | % | 84,888 | 18.57 | % | 0.00 | ||||||||||||||||||
Total cost of sales |
339,947 | 62.71 | % | 287,688 | 62.92 | % | 52,259 | 18.17 | % | (0.21 | ) | |||||||||||||||||
Gross margin (b): |
||||||||||||||||||||||||||||
Clothing margin |
211,049 | 51.73 | % | 204,995 | 52.96 | % | 6,054 | 2.95 | % | (1.23 | ) | |||||||||||||||||
Tuxedo margin |
33,135 | 86.39 | % | 27,967 | 79.05 | % | 5,168 | 18.48 | % | 7.34 | ||||||||||||||||||
Alteration and other services margin |
8,325 | 24.97 | % | 7,985 | 25.19 | % | 340 | 4.26 | % | (0.22 | ) | |||||||||||||||||
Occupancy costs |
(68,216 | ) | (14.22 | %) | (71,644 | ) | (15.77 | %) | 3,428 | 4.78 | % | 1.55 | ||||||||||||||||
Retail segment margin |
184,293 | 38.42 | % | 169,303 | 37.28 | % | 14,990 | 8.85 | % | 1.14 | ||||||||||||||||||
Corporate apparel segment margin |
17,866 | 28.61 | % | 227 | 7.43 | % | 17,639 | 7,770.48 | % | 21.18 | ||||||||||||||||||
Gross margin |
202,159 | 37.29 | % | 169,530 | 37.08 | % | 32,629 | 19.25 | % | 0.21 | ||||||||||||||||||
Selling, general and administrative expenses |
225,356 | 41.57 | % | 203,818 | 44.58 | % | 21,538 | 10.57 | % | (3.01 | ) | |||||||||||||||||
Operating loss |
(23,197 | ) | (4.28 | %) | (34,288 | ) | (7.50 | %) | 11,091 | 32.35 | % | 3.22 | ||||||||||||||||
Net interest |
(367 | ) | (0.07 | %) | (153 | ) | (0.03 | %) | (214 | ) | (139.87 | %) | 0.03 | |||||||||||||||
Loss before income taxes |
(23,564 | ) | (4.35 | %) | (34,441 | ) | (7.53 | %) | 10,877 | 31.58 | % | 3.19 | ||||||||||||||||
Benefit from income taxes |
(9,370 | ) | (1.73 | %) | (15,688 | ) | (3.43 | %) | 6,318 | 40.27 | % | 1.70 | ||||||||||||||||
Net loss including noncontrolling interest |
(14,194 | ) | (2.62 | %) | (18,753 | ) | (4.10 | %) | 4,559 | 24.31 | % | 1.48 | ||||||||||||||||
Less: Net loss attributable to noncontrolling interest |
(108 | ) | (0.02 | %) | | 0.00 | % | (108 | ) | 100.00 | % | (0.02 | ) | |||||||||||||||
Net loss attributable to common shareholders |
$ | (14,086 | ) | (2.60 | %) | $ | (18,753 | ) | (4.10 | %) | $ | 4,667 | 24.89 | % | 1.50 | |||||||||||||
Net loss per diluted common share attributable to
common shareholders |
$ | (0.27 | ) | $ | (0.36 | ) | ||||||||||||||||||||||
Weighted average diluted common shares outstanding: |
52,819 | 52,297 | ||||||||||||||||||||||||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. | |
(b) | Gross margin percent of sales is calculated as a percentage of related sales. |
Page 7
THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) |
FOR THE TWELVE MONTHS ENDED
January 29, 2011 AND January 30, 2010
(In thousands, except per share data)
January 29, 2011 AND January 30, 2010
(In thousands, except per share data)
Twelve Months Ended | Variance | |||||||||||||||||||||||||||
% of | % of | Basis | ||||||||||||||||||||||||||
2010 | Sales | 2009 | Sales | Dollar | % | Points | ||||||||||||||||||||||
(as adjusted) (a) | ||||||||||||||||||||||||||||
Net sales: |
||||||||||||||||||||||||||||
Clothing product |
$ | 1,480,492 | 70.41 | % | $ | 1,433,913 | 75.09 | % | $ | 46,579 | 3.25 | % | (4.68 | ) | ||||||||||||||
Tuxedo rental services |
364,269 | 17.32 | % | 334,068 | 17.49 | % | 30,201 | 9.04 | % | (0.17 | ) | |||||||||||||||||
Alteration and other services |
131,605 | 6.26 | % | 128,121 | 6.71 | % | 3,484 | 2.72 | % | (0.45 | ) | |||||||||||||||||
Retail segment sales |
1,976,366 | 93.99 | % | 1,896,102 | 99.29 | % | 80,264 | 4.23 | % | (5.30 | ) | |||||||||||||||||
Corporate apparel segment sales |
126,298 | 6.01 | % | 13,473 | 0.71 | % | 112,825 | 837.42 | % | 5.30 | ||||||||||||||||||
Total net sales |
2,102,664 | 100.00 | % | 1,909,575 | 100.00 | % | 193,089 | 10.11 | % | 0.00 | ||||||||||||||||||
Total cost of sales |
1,204,231 | 57.27 | % | 1,110,677 | 58.16 | % | 93,554 | 8.42 | % | (0.89 | ) | |||||||||||||||||
Gross margin (b): |
||||||||||||||||||||||||||||
Clothing margin |
798,675 | 53.95 | % | 775,882 | 54.11 | % | 22,793 | 2.94 | % | (0.16 | ) | |||||||||||||||||
Tuxedo margin |
308,202 | 84.61 | % | 276,651 | 82.81 | % | 31,551 | 11.40 | % | 1.80 | ||||||||||||||||||
Alteration and other services margin |
33,479 | 25.44 | % | 33,532 | 26.17 | % | (53 | ) | (0.16 | %) | (0.73 | ) | ||||||||||||||||
Occupancy costs |
(276,688 | ) | (14.00 | %) | (289,672 | ) | (15.28 | %) | 12,984 | 4.48 | % | 1.28 | ||||||||||||||||
Retail segment margin |
863,668 | 43.70 | % | 796,393 | 42.00 | % | 67,275 | 8.45 | % | 1.70 | ||||||||||||||||||
Corporate apparel segment margin |
34,765 | 27.53 | % | 2,505 | 18.59 | % | 32,260 | 1,287.82 | % | 8.93 | ||||||||||||||||||
Gross margin |
898,433 | 42.73 | % | 798,898 | 41.84 | % | 99,535 | 12.46 | % | 0.89 | ||||||||||||||||||
Selling, general and administrative expenses |
796,762 | 37.89 | % | 729,522 | 38.20 | % | 67,240 | 9.22 | % | (0.31 | ) | |||||||||||||||||
Operating income |
101,671 | 4.84 | % | 69,376 | 3.63 | % | 32,295 | 46.55 | % | 1.20 | ||||||||||||||||||
Net interest |
(1,141 | ) | (0.05 | %) | (332 | ) | (0.02 | %) | (809 | ) | (243.67 | %) | 0.04 | |||||||||||||||
Earnings before income taxes |
100,530 | 4.78 | % | 69,044 | 3.62 | % | 31,486 | 45.60 | % | 1.17 | ||||||||||||||||||
Provision for income taxes |
32,852 | 1.56 | % | 22,829 | 1.20 | % | 10,023 | 43.90 | % | 0.37 | ||||||||||||||||||
Net earnings including noncontrolling interest |
67,678 | 3.22 | % | 46,215 | 2.42 | % | 21,463 | 46.44 | % | 0.80 | ||||||||||||||||||
Less: Net loss attributable to
noncontrolling interest |
(19 | ) | 0.00 | % | | 0.00 | % | (19 | ) | 100.00 | % | 0.00 | ||||||||||||||||
Net earnings attributable to common
shareholders |
$ | 67,697 | 3.22 | % | $ | 46,215 | 2.42 | % | $ | 21,482 | 46.48 | % | 0.80 | |||||||||||||||
Net earnings per diluted common share
attributable to common shareholders (c) |
$ | 1.27 | $ | 0.88 | ||||||||||||||||||||||||
Weighted average diluted common shares
outstanding: |
52,853 | 52,280 | ||||||||||||||||||||||||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. | |
(b) | Gross margin percent of sales is calculated as a percentage of related sales. | |
(c) | Calculated based on net earnings less net earnings allocated to participating securities. |
Page 8
THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
January 29, | January 30, | |||||||
2011 | 2010 | |||||||
(as adjusted) (a) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 136,371 | $ | 186,018 | ||||
Accounts receivable, net |
60,607 | 16,745 | ||||||
Inventories |
486,499 | 434,881 | ||||||
Other current assets |
80,531 | 72,732 | ||||||
Total current assets |
764,008 | 710,376 | ||||||
Property and equipment, net |
332,611 | 344,746 | ||||||
Tuxedo rental product, net |
89,465 | 102,479 | ||||||
Goodwill |
87,994 | 59,414 | ||||||
Intangible assets, net |
37,348 | 4,287 | ||||||
Other assets |
8,892 | 12,850 | ||||||
Total assets |
$ | 1,320,318 | $ | 1,234,152 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 123,881 | $ | 83,052 | ||||
Accrued expenses and other current liabilities |
139,640 | 117,047 | ||||||
Income taxes payable |
3,135 | 23,936 | ||||||
Total current liabilities |
266,656 | 224,035 | ||||||
Long-term debt |
| 43,491 | ||||||
Deferred taxes and other liabilities |
69,809 | 62,236 | ||||||
Total liabilities |
336,465 | 329,762 | ||||||
Equity: |
||||||||
Preferred stock |
| | ||||||
Common stock |
710 | 705 | ||||||
Capital in excess of par |
341,663 | 327,742 | ||||||
Retained earnings |
1,002,975 | 956,032 | ||||||
Accumulated other comprehensive income |
38,366 | 32,537 | ||||||
Treasury stock, at cost |
(412,761 | ) | (412,626 | ) | ||||
Total equity attributable to common shareholders |
970,953 | 904,390 | ||||||
Noncontrolling interest |
12,900 | | ||||||
Total equity |
983,853 | 904,390 | ||||||
Total liabilities and equity |
$ | 1,320,318 | $ | 1,234,152 | ||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. |
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THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
FOR THE TWELVE MONTHS ENDED
January 29, 2011 AND January 30, 2010
(In thousands)
January 29, 2011 AND January 30, 2010
(In thousands)
Twelve Months Ended | ||||||||
2010 | 2009 | |||||||
(as adjusted) (a) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings including noncontrolling interest |
$ | 67,678 | $ | 46,215 | ||||
Non-cash adjustments to net earnings: |
||||||||
Depreciation and amortization |
75,998 | 86,090 | ||||||
Tuxedo rental product amortization |
33,485 | 37,184 | ||||||
Other |
28,074 | 3,167 | ||||||
Changes in assets and liabilities |
(35,288 | ) | (9,501 | ) | ||||
Net cash provided by operating activities |
169,947 | 163,155 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Capital expenditures |
(58,868 | ) | (56,912 | ) | ||||
Acquisition of businesses, net of cash |
(97,786 | ) | | |||||
Proceeds from sales of available-for-sale investments |
| 19,410 | ||||||
Proceeds from sales of property and equipment |
76 | 797 | ||||||
Net cash used in investing activities |
(156,578 | ) | (36,705 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from issuance of common stock |
3,900 | 4,106 | ||||||
Payments on revolving credit facility |
| (25,000 | ) | |||||
Payments on Canadian term loan |
(46,738 | ) | | |||||
Cash dividends paid |
(19,111 | ) | (14,722 | ) | ||||
Deferred financing costs |
(1,577 | ) | | |||||
Tax payments related to vested deferred stock units |
(2,748 | ) | (1,634 | ) | ||||
Excess tax benefits from share-based plans |
1,107 | 392 | ||||||
Purchase of treasury stock |
(144 | ) | (90 | ) | ||||
Net cash used in financing activities |
(65,311 | ) | (36,948 | ) | ||||
Effect of exchange rate changes |
2,295 | 9,104 | ||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(49,647 | ) | 98,606 | |||||
Balance at beginning of period |
186,018 | 87,412 | ||||||
Balance at end of period |
$ | 136,371 | $ | 186,018 | ||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. |
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