EX-99 3 a4525379ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 JoS. A. Bank Clothiers Posts 53% Increase in Third Quarter Net Income HAMPSTEAD, Md.--(BUSINESS WIRE)--Dec. 1, 2003--JoS. A. Bank Clothiers, Inc. (Nasdaq National Market: "JOSB") announces record sales and earnings for the third quarter and first nine months of FY2003. These results represent the ninth consecutive quarter of record earnings per share for the company. For the third quarter ended November 1, 2003 net income increased 53% to $2.9 million compared with $1.9 million in the same period of the prior year. The 53% increase in net income follows a 42% rise in net income in the third quarter of 2002. Earnings per share increased 46% in the third quarter of fiscal 2003, to $0.38 per share compared with $0.26 per share in the same period of the prior year. For the first nine months of FY2003, net income increased 56% to $7.0 million compared with $4.5 million in the same period of the prior year. Earnings per share increased 46% in the first nine months of FY2003 to $0.95 per share compared with $0.65 per share in the same period of the prior year. All per share amounts noted above represent diluted earnings per share. Total net sales for the third quarter ended November 1, 2003 increased 24.4% to $72.0 million compared with $57.9 million in the same period in 2002. Comparable store sales increased 8.7% while combined catalog and internet sales increased 25.6% for the third quarter ended November 1, 2003. Total net sales for the nine months ended November 1, 2003 increased 20.1% to $198.7 million, compared with $165.5 million in the comparable prior-year period. Comparable store sales increased 7.2%, while combined catalog and internet sales increased 17.5%, for the nine months ended November 1, 2003. A conference call to discuss this press release is scheduled for today, December 1, 2003 at 11:00a.m. Eastern Time. To participate in the call, please call 888-428-4480 a few minutes before 11:00 a.m. Eastern Time. A replay of the conference call will be available until December 9, 2003 by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 696818. 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 209 stores in 35 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 National 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 as risks associated with economic, weather, public health and other factors affecting consumer spending, the ability of the Company to finance its expansion plans, the mix and pricing of goods sold, the market price of key raw materials such as wool and cotton, availability of lease sites for new stores, the ability to source product from its global supplier base and other competitive factors. 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, and assumes no obligation to update any of the forward-looking statements. These risks should be carefully reviewed before making any investment decision. JoS. A. Bank Clothiers, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (in thousands, except earnings per share) Three Months Ended Nine Months Ended ------------------ ----------------- November 1, November 2, November 1, November 2, 2003 2002 2003 2002 ------------ ------------ ------------- --------------- Net sales $72,011 100%$57,866 100%$198,725 100%$ 165,494 100% ------- ------- -------- ---------- Cost of goods sold: 30,439 42.3% 25,391 43.9% 86,418 43.5% 76,219 46.1% ------- ------- -------- ---------- Gross profit 41,572 57.7% 32,475 56.1% 112,307 56.5% 89,275 53.9% General and administrative 7,946 11.0% 6,583 11.4% 21,865 11.0% 17,872 10.8% Sales and marketing 27,498 38.2% 22,187 38.3% 75,859 38.2% 62,516 37.8% Store opening cost 626 0.9% 201 0.3% 1,218 0.6% 401 0.2% ------- ------- -------- ---------- Operating income 5,502 7.5% 3,504 6.1% 13,365 6.7% 8,486 5.1% Interest expense, net 466 0.6% 290 0.5% 1,151 0.6% 835 0.5% ------- ------- -------- ---------- Income before provision for income taxes 5,036 7.0% 3,214 5.6% 12,214 6.1% 7,651 4.6% Provision for income taxes 2,173 3.0% 1,350 2.3% 5,191 2.6% 3,114 1.9% ------- ------- -------- ---------- Net income $ 2,863 4.0%$ 1,864 3.2%$ 7,023 3.5%$ 4,537 2.7% ======= ======= ======== ========== Earnings per share: Net income: Basic $ 0.43 $ 0.30 $ 1.10 $ 0.74 Diluted $ 0.38 $ 0.26 $ 0.95 $ 0.65 Weighted average shares outstanding: Basic 6,702 6,188 6,376 6,134 Diluted 7,510 7,122 7,370 7,007 JoS. A. Bank Clothiers, Inc. and Subsidiaries Consolidated Balance Sheets (In Thousands) November 1, February 2, November 2, 2003 2003 2002 -------- ------- ---------- (unaudited) (audited) (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 582 $ 8,389 $ 906 Accounts receivable, net 6,374 2,830 4,871 Inventories: Raw materials 11,926 8,945 4,791 Finished goods 117,652 69,311 72,375 -------- -------- -------- Total inventories (Note 1) 129,578 78,256 77,166 -------- -------- -------- Prepaid expenses and other current assets 8,825 7,071 7,732 -------- -------- -------- Total current assets 145,359 96,546 90,675 -------- -------- -------- NONCURRENT ASSETS: Property, plant and equipment at cost 85,925 74,196 71,539 Accumulated depreciation and amortization (41,780) (37,623) (36,077) -------- -------- -------- Net property, plant and equipment 44,145 36,573 35,462 Other noncurrent assets, net 821 874 955 -------- -------- -------- Total assets $190,325 $133,993 $127,092 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 35,319 $ 29,373 $ 27,012 Accrued expenses 25,899 24,569 20,556 Current portion of long- term debt 1,255 1,195 1,204 -------- -------- -------- Total current liabilities 62,473 55,137 48,772 -------- -------- -------- NONCURRENT LIABILITIES: Long-term debt, net of current portion 48,138 9,324 16,044 Deferred rent and other noncurrent liabilities 3,387 3,884 3,034 -------- -------- -------- Total liabilities 113,998 68,345 67,850 -------- -------- -------- STOCKHOLDERS' EQUITY: Common stock 81 73 73 Additional paid-in capital 62,653 59,005 59,009 Retained earnings 18,651 11,628 5,218 -------- -------- -------- 81,385 70,706 64,300 Treasury stock (5,058) (5,058) (5,058) -------- -------- -------- Total stockholders' equity 76,327 65,648 59,242 -------- -------- -------- Total liabilities and stockholders' equity $190,325 $133,993 $127,092 ======== ======== ======== Note 1: Total quarter-end inventories at the end of the third quarter of 2003 increased approximately $52.4 million compared with the third quarter of 2002. The following are the major components (in millions): -- The Company opened and stocked 47 new stores since the end of the third quarter of fiscal 2002 $20.7 -- Net increase in inventories purchased for new stores to be opened after the end of the third quarter of fiscal 2003 1.7 -- Raw material (wool) added as part of the Company's increasing efforts to cut out the middleman (agent and brokers) in its inventory sourcing process to improve gross profit margin 7.1 -- Inventory purchases as part of the Company's plan to increase comparable store inventories which the Company believed were too low at the end of the third quarter of 2002; comparable store inventories were increased by approximately 8% compared with the desired levels of 2001 which the Company believes is the more appropriate operating levels - these levels are consistent with the comparable store sales increase of approximately 6% over the same time frame 10.6 -- Inventory purchases as part of the Company's plan to increase the safety stock of certain basic products to develop flexibility in growing the chain by ensuring that inventory is readily available to support higher sales. 5.1 -- Assortment expansion, seasonal clearance merchandise and other 7.2 ------------ Total inventory increase $52.4 ============ CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD Robert N. Wildrick, CEO, 410-239-5711 or David E. Ullman, EVP/CFO, 410-239-5715 or RJ Falkner and Company, Inc. Investor Relations Counsel R. Jerry Falkner, CFA, 800-377-9893 info@rjfalkner.com or E-commerce Address for JoS. A. Bank Clothiers, Inc.: www.josbank.com