EX-99 3 a4605086ex991.txt JOS A BANK CLOTHIERS INC EX99.1 JoS. A. Bank Clothiers Income Increases 52% in FY2003; Company Expects Net Income to Rise at Least 27% in FY2004 HAMPSTEAD, Md.--(BUSINESS WIRE)--March 29, 2004--JoS. A. Bank Clothiers, Inc. (Nasdaq National Market:JOSB) announced that its net income for the year ended January 31, 2004 ("FY2003") increased 52% to $16.6 million compared with FY2002 net income of $10.9 million, representing another year of record earnings for the Company. The Company also reported that earnings per share for FY2003 increased 45% to a record $1.49 per share compared with FY2002 earnings per share of $1.03. All current and historical earnings per share amounts noted in this news release represent diluted earnings per share adjusted for a 50% stock dividend that was distributed to stockholders on February 18, 2004. The Company also announced that it expects net income for the year ending January 29, 2005 (FY2004) to increase to at least $21 million, representing at least a 27% increase over the net income in FY2003. To help support the profit growth, the Company expects to open 55 to 65 stores in FY2004, with at least 20 stores opening in the first half of FY2004 and the remainder opening in the second half. "Our increased emphasis on our upscale Signature and Signature Gold products and our unwavering commitment to quality, service and product innovation have positioned JoS. A. Bank to become the dominant upscale menswear brand in the market," said Robert N. Wildrick, Chief Executive Officer of JoS. A. Bank. "In addition, the decisions we made to invest in inventory last year have paid off better than anticipated," continued Mr. Wildrick. The Company also noted that FY2004 has started very well. As such, the Company expects first quarter FY2004 earnings per share, at a minimum, to meet the consensus analyst estimate of $0.27 per share, which would represent a minimum of a 35% increase compared with earnings per share of $0.20 in the first quarter of FY2003. The Company previously reported record sales for the fourth quarter and fiscal year ended January 31, 2004. Total sales for the fourth quarter ended January 31, 2004 increased 30% to $100.9 million compared with sales of $77.9 million in the comparable prior year period. Total sales for the year ended January 31, 2004 (FY2003) increased 23% to $299.7 million compared with sales of $243.4 million in FY2002. Comparable store sales increased 10.7% in the fourth quarter and 8.2% in FY2003, while combined catalog and internet sales increased 15.6% and 16.8%, respectively, in the fourth quarter and fiscal year. A conference call to discuss this earnings press release will be held today, Monday, March 29, 2004 at 11:00 a.m. Eastern Time (EST). To participate in the call today please dial 888-428-4479 at least five minutes before 11:00 a.m. EST. A replay of the conference call will be available until April 6, 2004 at 11:59 p.m. EST by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 719729. 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 214 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. Consolidated Statements of Income Fourth Quarters and Years Ended February 1, 2003 and January 31, 2004 (in thousands, except earnings per share amounts) Fourth Quarter Fiscal Year ------------------ ------------------- 2002 2003 2002 2003 -------- --------- --------- --------- Net sales $77,942 $100,938 $243,436 $299,663 -------- --------- --------- --------- Gross profit 44,325 59,992 133,600 172,299 Operating expenses: General and administrative 6,438 8,689 24,310 30,554 Sales and marketing 26,499 33,840 89,015 109,699 Store opening costs 127 321 528 1,539 -------- --------- --------- --------- Operating income 11,261 17,142 19,747 30,507 Interest expense, net 263 472 1,098 1,623 -------- --------- --------- --------- Income before provision for income taxes 10,998 16,670 18,649 28,884 Provision for income taxes 4,588 7,090 7,702 12,281 -------- --------- --------- --------- Net income $6,410 $9,580 $10,947 $16,603 ======== ========= ========= ========= Earnings per share (1) Net income Basic $0.69 $0.91 $1.19 $1.69 Diluted $0.59 $0.85 $1.03 $1.49 Weighted average number of shares outstanding Basic 9,297 10,500 9,225 9,798 Diluted 10,814 11,256 10,587 11,106 (1) On January 13, 2004, the Company's Board of Directors declared a 50% common stock dividend payable, on February 18, 2004 to stockholders of record as of January 30, 2004. All weighted average share and per share amounts have been adjusted to reflect the stock dividend. JoS. A. Bank Clothiers, Inc Consolidated Balance Sheets February 1, 2003 and January 31, 2004 (in thousands) As of ------------------------- February 1, January 31, 2003 2004 ------------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $8,389 $875 Accounts receivable 2,830 4,201 Inventories: Finished goods 69,311 109,136 Raw materials 8,945 11,652 ------------- ----------- Total inventories 78,256 120,788 Prepaid expenses and other current assets 7,071 10,323 Deferred income taxes 54 -- ------------- ----------- Total current assets 96,600 136,187 NONCURRENT ASSETS: Property, plant and equipment, net 37,238 47,401 Deferred financing and other non-current assets 874 1,235 Deferred income taxes 1,420 1,688 ------------- ----------- Total assets $136,132 $186,511 ============= =========== LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $29,373 $28,748 Accrued expenses 24,143 32,677 Current portion of long-term debt 1,195 1,245 Deferred income taxes -- 1,308 ------------- ----------- Total current liabilities 54,711 63,978 NONCURRENT LIABILITIES: Long term debt, excluding current portion 9,324 28,618 Non-current lease obligations 3,684 5,213 Other non-current liabilities 2,765 1,200 ------------- ----------- Total liabilities 70,484 99,009 ------------- ----------- STOCKHOLDERS' EQUITY: Common stock 110 121 Additional paid-in capital 58,968 64,208 Retained earnings 11,628 28,231 Treasury stock (5,058) (5,058) ------------- ----------- Total stockholders' equity 65,648 87,502 ------------- ----------- Total liabilities and stockholders' equity $136,132 $186,511 ============= =========== JoS. A. Bank Clothiers, Inc Consolidated Statements of Cash Flows Fourth Quarters and Years Ended February 1, 2003 (2002) and January 31, 2004 (2003) (in thousands) Fourth Quarter Fiscal Year -------------------- ------------------- 2002 2003 2002 2003 ----------- -------- --------- --------- Cash flows from operating activities: Net income $6,410 $9,580 $10,947 $16,603 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Deferred income taxes 2,313 1,094 2,313 1,094 Depreciation and amortization 1,498 2,433 5,642 7,575 Loss on disposals of property 50 29 50 29 Income tax benefit from exercise of non-qualified stock options 667 1,281 667 1,528 Changes in assets and liabilities: (Increase) decrease in accounts receivable 2,041 2,173 (466) (1,371) (Increase) decrease in inventories (1,090) 8,790 (13,614) (42,532) Increase in prepaid expenses and other assets (692) (1,952) (1,296) (3,653) Increase (decrease) in accounts payable 2,361 (6,571) 12,845 (625) Increase in accrued expenses 1,563 7,948 2,114 8,534 (Decrease) increase in other non-current liabilities 987 (36) 987 (36) ----------- -------- --------- --------- Net cash provided by (used in) operating activities 16,108 24,769 20,189 (12,854) ----------- -------- --------- --------- Cash flows from investing activities: Capital expenditures (1,225) (5,013) (8,290) (17,727) ----------- -------- --------- --------- Net cash used in investing activities (1,225) (5,013) (8,290) (17,727) ----------- -------- --------- --------- Cash flows from financing activities: Borrowings under long-term credit facility 3,208 15,702 40,412 87,165 Repayment under long-term credit facility (9,621) (34,983) (50,190) (66,688) Borrowings of other long- term debt -- -- 4,675 -- Repayment of other long- term debt (316) (249) (1,016) (1,133) Net proceeds from issuance of common stock (671) 67 1,782 3,723 ----------- -------- --------- --------- Net cash (used in) provided by financing activities (7,400) (19,463) (4,337) 23,067 ----------- -------- --------- --------- Net increase (decrease) in cash and cash equivalents 7,483 293 7,562 (7,514) Cash and cash equivalents, beginning of period 906 582 827 8,389 ----------- -------- --------- --------- Cash and cash equivalents, end of period $8,389 $875 $8,389 $875 =========== ======== ========= ========= CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead 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 E-commerce Address for JoS. A. Bank Clothiers, Inc.: www.josbank.com