JOSB Jos. A. Bank Clothiers, Inc. (MM)

JoS. A. Bank Clothiers, Inc. (Nasdaq National Market:JOSB) announced today record sales and earnings for the first quarter of FY2005. In addition, the Company has raised its earnings guidance for the fiscal year ending January 28, 2006 (FY2005). For the three months ended April 30, 2005, net income rose to $6.7 million, or $0.47 per share, compared with net income of $5.3 million, or $0.37 per share, in the first quarter of FY2004 - representing a 27% increase in earnings per share. "We are very pleased to report our Company's 15th consecutive quarter of record earnings, when compared with prior-year periods," observed Robert N. Wildrick, Chief Executive Officer of JoS. A. Bank Clothiers, Inc. "Earnings per share rose 27% to a first quarter record of $0.47. This is particularly satisfying in light of the fact that earnings per share in the first quarter of fiscal 2004 were exceptionally strong and 131% above the results for the first quarter of fiscal 2003. Based on these strong results, we are raising our earnings guidance for FY2005 to at least $2.07 to $2.12 per share, compared with $1.72 per share in FY2004." "First quarter results benefited from continued improvement in gross margins, a 4.1% increase in comparable store sales, 57 new stores opened during the previous twelve months, and strong demand for our spring/summer products. All of our major product categories posted year-over-year sales gains, particularly Signature Gold suits and ties, sportcoats, trousers, dress shirts and knits," continued Mr. Wildrick. "We opened six new stores during the first quarter and are on target to achieve our goal of opening 60 to 75 new stores for the fiscal year." A conference call to discuss this earnings news release will be held today, June 6, 2005 at 11:00 a.m. Eastern Time (EDT). To participate in the call today please dial (USA) 877-209-0397 or (International) 612-332-1025 at least five minutes before 11:00 a.m. EDT. A replay of the conference call will be available after 2:30 p.m. EDT on June 6, 2005 until June 13, 2005 at 11:59 p.m. EDT by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 781252. Total sales for the first quarter ended April 30, 2005 increased 20.8% to $96.6 million compared with $79.9 million in the comparable prior year period. Comparable store sales increased 4.1% in the first quarter ended April 30, 2005, while combined catalog and Internet sales increased 26.4%. All current and historical 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 FY2004. The financial statements included in this news release give effect to the restatement 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 281 stores in 38 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. -0- *T JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands except per share data) (Unaudited) Three Months Ended -------------------------------------------- May 1, 2004 April 30, 2005 (as restated) --------------------- --------------------- Net sales $ 79,929 100.0% $ 96,575 100.0% Cost of goods sold 30,894 38.7% 35,962 37.2% ---------- ---------- Gross profit 49,035 61.3% 60,613 62.8% Operating expenses: Sales and marketing 30,757 38.5% 39,540 40.9% General and administrative 8,584 10.7% 9,179 9.5% Store opening costs 231 .3% 112 .1% ---------- ---------- Total operating expenses 39,572 49.5% 48,831 50.6% ---------- ---------- Operating income 9,463 11.8% 11,782 12.2% Interest expense, net 481 .6% 324 .3% ---------- ---------- Income before provision for income taxes 8,982 11.2% 11,458 11.9% Provision for income taxes 3,711 4.6% 4,721 4.9% ---------- ---------- Net income $ 5,271 6.6% $ 6,737 7.0% ========== ========== Earnings per share: Net income: Basic $ 0.40 $ 0.50 Diluted $ 0.37 $ 0.47 Weighted average shares outstanding: Basic 13,246 13,471 Diluted 14,213 14,321 JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) January April 29, 2005 30, 2005 ---------- ---------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,425 $ 2,137 Accounts receivable, net 4,798 9,080 Inventories: Raw materials 8,550 12,444 Finished goods 119,143 132,170 ---------- ---------- Total inventories 127,693 144,614 Prepaid expenses and other current assets 11,892 12,688 Deferred income taxes 893 - ---------- ---------- Total current assets 146,701 168,519 NONCURRENT ASSETS: Property, plant and equipment, net 83,621 85,672 Other noncurrent assets 1,508 1,478 ---------- ---------- Total assets $ 231,830 $ 255,669 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 40,133 $ 42,724 Accrued expenses 37,505 33,652 Current portion of long-term debt 917 933 Deferred tax liability - current - 6,169 ---------- ---------- Total current liabilities 78,555 83,478 NONCURRENT LIABILITIES: Long-term debt, net of current portion 5,942 15,709 Noncurrent lease obligations 30,318 30,354 Deferred tax liability - noncurrent 1,753 2,960 Other noncurrent liabilities 938 939 ---------- ---------- Total liabilities 117,506 133,440 ---------- ---------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common Stock 124 125 Additional paid-in capital 67,594 68,761 Retained earnings 51,664 58,401 ---------- ---------- 119,382 127,287 Treasury stock (5,058) (5,058) ---------- ---------- Total stockholders' equity 114,324 122,229 ---------- ---------- Total liabilities and stockholders' equity $ 231,830 $ 255,669 ========== ========== JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited) Three Months Ended ----------------------- May April 1, 2004 30, 2005 (as stated) ----------- ---------- Cash flows from operating activities: Net income $ 5,271 $ 6,737 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 2,497 3,079 Loss on disposals of plant and equipment - 3 Income tax benefit from exercise of stock options - 952 Net increase in operating working capital (10,120) (14,925) ----------- ---------- Net cash used in operating activities (2,352) (4,154) ----------- ---------- Cash flows from investing activities: Capital expenditures (4,890) (5,133) Proceeds from disposal of assets 850 - ----------- ---------- Net cash used in investing activities (4,040) (5,133) ----------- ---------- Cash flows from financing activities: Borrowings under long-term Credit Agreement 27,520 24,719 Repayments under long-term Credit Agreement (19,869) (14,719) Repayment of other long-term debt (1,652) (217) Net proceeds from issuance of common stock 422 216 ----------- ---------- Net cash provided by financing activities 6,421 9,999 ----------- ---------- Net increase in cash and cash equivalents 29 712 Cash and cash equivalents - beginning of period 875 1,425 ----------- ---------- Cash and cash equivalents - end of period $ 904 $ 2,137 =========== ========== *T