EX-99.1 2 a5032670ex99_1.txt EXHIBIT 99.1 - PRESS RELEASE Exhibit 99.1 JoS. A. Bank Clothiers' Third Quarter Earnings Per Share Increase 45% HAMPSTEAD, Md.--(BUSINESS WIRE)--Dec. 5, 2005--JoS. A. Bank Clothiers, Inc. (Nasdaq National Market: "JOSB") announced net income of $4.7 million for the fiscal third quarter ended October 29, 2005, as compared with net income of $3.2 million in the third quarter of the previous fiscal year. Earnings per share increased 45% to $0.32 in the third quarter of fiscal 2005, as compared with $0.22 in the third quarter of fiscal 2004, representing another record quarter of profitability. For the first nine months of fiscal 2005, net income increased to $16.7 million, as compared with $11.9 million in the first nine months of fiscal 2004, and earnings per share rose 38% to $1.16 for the first nine months of fiscal 2005, as compared with $0.84 in the corresponding period of the previous fiscal year. A conference call to discuss this earnings press release is scheduled for today, December 5, 2005, at 11:00 a.m. Eastern Time (EST). To participate in the call today, please dial (877) 209-0397 or (International) (612) 332-0819, at least five minutes before 11:00 a.m. EST. A replay of the conference call will be available after 2:30 p.m. EST today until 11:59 p.m. on December 12, 2005, by dialing (USA) (800) 475-6701 or (International) (302) 365-3844. The access code for the replay will be 805365. Total sales for the fiscal third quarter ended October 29, 2005 increased 27.8% to $105.6 million, as compared with $82.6 million in the same period in fiscal 2004. For the third quarter of fiscal 2005, comparable store sales increased 14.1%, while combined catalog and Internet sales increased 22.6% as compared with the third quarter of fiscal 2004. Total sales for the nine months ended October 29, 2005 increased 23.0% to $300.8 million, as compared with $244.6 million in the same period in fiscal 2004. For the first nine months of fiscal 2005, comparable store sales increased 7.7%, while combined catalog and Internet sales rose 24.1%, as compared with the prior year period. All earnings per share amounts noted in this news release represent diluted earnings per share adjusted for two stock dividends that were distributed to stockholders in fiscal 2004. The fiscal 2004 earnings per share amounts included in this news release give effect to the restatement of the Company's financial statements to reflect the revision of the Company's historical practices of accounting for lease transactions as discussed in the Company's Annual Report on Form 10-K for the year ended January 29, 2005. 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 316 stores in 39 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 factors include 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, the ability to source product from its global supplier base, the effectiveness of the Company's marketing programs, the availability of lease sites for new stores and the Company's ability to negotiate favorable lease terms, and other competitive factors. Other factors and risks that may affect our business or future financial results are detailed in our filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended January 29, 2005. 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 Condensed Consolidated Statements of Income (In thousands except per share data) (Unaudited) Three Months Ended Nine Months Ended ----------------------- ----------------------- October 30, October 29, October 30, October 29, 2004 2005 2004 2005 ----------- ----------- ----------- ----------- (As (As Restated) Restated) Net sales $ 82,634 $ 105,639 $ 244,557 $ 300,802 Cost of goods sold 34,094 42,167 97,871 115,539 ----------- ----------- ----------- ----------- Gross Profit 48,540 63,472 146,686 185,263 ----------- ----------- ----------- ----------- Operating expenses: Sales and marketing 34,616 43,269 97,544 123,643 General and administrative 8,436 11,468 27,273 31,487 Store opening costs 346 189 846 408 ----------- ----------- ----------- ----------- Total operating expenses 43,398 54,926 125,663 155,538 ----------- ----------- ----------- ----------- Operating income 5,142 8,546 21,023 29,725 Interest expense, net 449 637 1,363 1,302 ----------- ----------- ----------- ----------- Income before provision for income taxes 4,693 7,909 19,660 28,423 Provision for income taxes 1,491 3,257 7,755 11,695 ----------- ----------- ----------- ----------- Net income $ 3,202 $ 4,652 $ 11,905 $ 16,728 =========== =========== =========== =========== Earnings per share: Net income per share: Basic $ 0.24 $ 0.34 $ 0.89 $ 1.23 Diluted $ 0.22 $ 0.32 $ 0.84 $ 1.16 Weighted average shares outstanding: Basic 13,395 13,681 13,324 13,573 Diluted 14,285 14,460 14,231 14,394 Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the three and nine months ended October 30, 2004 and October 29, 2005) and do not include the Notes, which are considered an integral part thereof. The Company expects to file the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q, on or about December 5, 2005. 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 29, 2005, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2005. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) October 30, January 29, October 29, 2004 2005 2005 ----------- ----------- ----------- (As Restated) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,252 $ 1,425 $ 1,532 Accounts receivable, net 6,059 4,798 8,047 Inventories: Raw materials 7,727 8,550 8,490 Finished goods 123,764 119,143 182,142 ----------- ----------- ----------- Total inventories 131,491 127,693 190,632 Prepaid expenses and other current assets 15,837 11,892 11,534 Deferred income taxes -- 893 -- ----------- ----------- ----------- Total current assets 154,639 146,701 211,745 ----------- ----------- ----------- NONCURRENT ASSETS: Property, plant and equipment, net 76,356 83,621 97,728 Other noncurrent assets 1,043 1,508 572 Deferred income taxes 2,700 -- -- ----------- ----------- ----------- Total assets $ 234,738 $ 231,830 $ 310,045 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 29,687 $ 40,133 $ 37,631 Accrued expenses 32,447 37,505 43,176 Current portion of long-term debt 912 917 948 Deferred tax liability - current 2,332 -- 6,893 ----------- ----------- ----------- Total current liabilities 65,378 78,555 88,648 NONCURRENT LIABILITIES: Long-term debt, net of current portion 39,773 5,942 49,778 Noncurrent lease obligations 28,655 30,318 32,768 Deferred tax liability - noncurrent -- 1,753 1,639 Other noncurrent liabilities -- 938 1,112 ----------- ----------- ----------- Total liabilities 133,806 117,506 173,945 ----------- ----------- ----------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock 124 124 127 Additional paid-in capital 66,778 67,594 72,639 Retained earnings 39,088 51,664 68,392 ----------- ----------- ----------- 105,990 119,382 141,158 Treasury stock (5,058) (5,058) (5,058) ----------- ----------- ----------- Total stockholders' equity 100,932 114,324 136,100 ----------- ----------- ----------- Total liabilities and stockholders' equity $ 234,738 $ 231,830 $ 310,045 =========== =========== =========== Note: The foregoing unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the nine months ended October 30, 2004 and October 29, 2005 and the year ended January 29, 2005) and do not include the Notes, which are considered an integral part thereof. The Company expects to file the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q, on or about December 5, 2005. 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 29, 2005, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2005. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited) Nine Months Ended ------------------------ October 30, October 29, 2004 2005 ------------ ----------- (As Restated) Cash flows from operating activities: Net income $ 11,905 $ 16,728 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Increase (decrease) in deferred income taxes 678 7,672 Depreciation and amortization 7,497 9,460 Loss on disposals of plant and equipment -- 24 Income tax benefit from exercise of stock options -- 3,749 Net increase in operating working capital (12,168) (64,636) ------------ ----------- Net cash provided by (used in) operating activities 7,912 (27,003) ------------ ----------- Cash flows from investing activities: Capital expenditures (21,781) (18,056) Proceeds from disposal of assets 851 -- ------------ ----------- Net cash used in investing activities (20,930) (18,056) ------------ ----------- Cash flows from financing activities: Borrowings under long-term Credit Agreement 75,377 92,731 Repayments under long-term Credit Agreement (62,374) (48,186) Repayment of other long-term debt (2,181) (678) Net proceeds from issuance of common stock 2,573 1,299 ------------ ----------- Net cash provided by financing activities 13,395 45,166 ------------ ----------- Net decrease in cash and cash equivalents 377 107 Cash and cash equivalents - beginning of period 875 1,425 ------------ ----------- Cash and cash equivalents - end of period $ 1,252 $ 1,532 ============ =========== Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the nine months ended October 30, 2004 and October 29, 2005) and do not include the Notes, which are considered an integral part thereof. The Company expects to file the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q, on or about December 5, 2005. 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 29, 2005, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2005. CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, MD David E. Ullman, EVP/CFO, 410-239-5715 or RJ Falkner and Company, Inc. Investor Relations Counsel R. Jerry Falkner, CFA 800-377-9893 E-commerce Address for JoS. A. Bank Clothiers, Inc.: www.josbank.com