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

JoS. A. Bank Clothiers, Inc. (Nasdaq Global Select Market: JOSB) announces that net income for the second quarter of fiscal year 2009 as compared to the second quarter of fiscal year 2008 increased 41% to over $12.5 million. Earnings per share for the second quarter of fiscal year 2009 increased 42% to $0.68 per share, as compared to $0.48 per share for the second quarter of fiscal year 2008. Total sales for the second quarter of fiscal year 2009 increased 9.8% to $167.7 million from $152.7 million in the second quarter of fiscal year 2008, while comparable store sales increased 6.2% and Direct Marketing sales decreased 6.7%. The second quarter of fiscal year 2009 ended August 1, 2009; the second quarter of fiscal year 2008 ended August 2, 2008.

“We are pleased to report another quarter of earnings growth for the Company,” commented R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. “With this quarter’s results, we have achieved earnings growth in 31 of the past 32 quarters when compared to the respective prior year periods, including 13 quarters in a row,” continued Mr. Black.

Comparing the first six months of fiscal year 2009 with the first six months of fiscal year 2008, net income increased 28% to $24.0 million, as compared to $18.7 million and earnings per share increased 26% to $1.29 per share, as compared to $1.02 per share. Total sales for the first six months of fiscal year 2009 increased 10.6% to $329.7 million from $298.1 million for the first six months of fiscal year 2008 while comparable store sales increased 5.2% and Direct Marketing sales increased 2.3%.

A conference call to discuss the second quarter of fiscal year 2009 earnings will be held Thursday, September 3, 2009 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 800-230-1059 or (International) 612-332-0335 at least five minutes before 11:00 a.m. ET. A replay of the conference call will be available after 1:00 p.m. ET on September 3, 2009 until September 10, 2009 at 11:59 p.m. ET by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 113855. In addition, a webcast replay of the conference call will be posted on the investor relations section of our website: www.josbank.com (select “Company Information” and “Investor Relations”).

All earnings per share amounts in this news release represent diluted earnings per share.

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 467 stores in 42 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 Global Select 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, including negative changes to consumer confidence and other recessionary pressures, higher energy and security costs, the successful implementation of the Company's growth strategy, including the ability of the Company to finance its expansion plans, the mix and pricing of goods sold, the effectiveness and profitability of new concepts, the market price of key raw materials such as wool and cotton, seasonality, merchandise trends and changing consumer preferences, the effectiveness of the Company's marketing programs, the availability of suitable lease sites for new stores, doing business on an international basis, the ability to source product from its global supplier base, legal matters and other competitive factors. The identified risk factors and other factors and risks that may affect the Company's business or future financial results are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended January 31, 2009 and the Company's subsequent Quarterly Reports on Form 10-Q filed through the date hereof. 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. The Company does not undertake an obligation to update or revise any forward-looking statements to reflect actual results or changes in the Company's assumptions, estimates or projections. These risks should be carefully reviewed before making any investment decision.

 

JOS. A. BANK CLOTHIERS, INC.

Condensed Consolidated Balance Sheets

 (In Thousands)

(unaudited)

        January 31, 2009 August 1, 2009   ASSETS CURRENT ASSETS: Cash and cash equivalents $ 122,875 $ 60,964 Short-term investments - 64,879 Accounts receivable, net 7,404 7,020 Inventories: Finished goods 199,886 212,357 Raw materials   9,356   13,689 Total inventories 209,242 226,046 Prepaid expenses and other current assets   17,776   14,486  

Total current assets

357,297 373,395   NONCURRENT ASSETS: Property, plant and equipment, net 133,588 128,646 Other noncurrent assets   481   448 Total assets $ 491,366 $ 502,489   LIABILITIES AND STOCKHOLDERS’ EQUITY   CURRENT LIABILITIES: Accounts payable $ 29,774 $ 34,291 Accrued expenses 74,792 58,082 Deferred tax liability – current   6,604   6,752 Total current liabilities 111,170 99,125   NONCURRENT LIABILITIES: Deferred rent 54,743 53,647 Deferred tax liability – noncurrent 2,605 2,682 Other noncurrent liabilities   1,035   1,255 Total liabilities   169,553   156,709   COMMITMENTS AND CONTINGENCIES   STOCKHOLDERS’ EQUITY: Common stock 182 182 Additional paid-in capital 82,951 82,951 Retained earnings 238,668 262,635 Accumulated other comprehensive income   12   12 Total stockholders’ equity   321,813   345,780 Total liabilities and stockholders’ equity $ 491,366 $ 502,489   Note: The foregoing audited and unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Financial Statements (as of January 31, 2009 and August 1, 2009) and do not include the Notes, which are considered an integral part thereof. 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 August 1, 2009 and the Annual Report on Form 10-K for the fiscal year ended January 31, 2009, which were filed with the Securities and Exchange Commission on September 2, 2009 and April 8, 2009, respectively.    

JOS. A. BANK CLOTHIERS, INC.

Condensed Consolidated Statements of Income

(In Thousands, Except Per Share Information)

(unaudited)

        Three Months Ended Six Months Ended August 2, 2008   August 1, 2009 August 2, 2008   August 1, 2009   Net sales $ 152,734 $ 167,735 $ 298,138 $ 329,660   Cost of goods sold   57,496     64,558     111,920     128,029     Gross profit   95,238     103,177     186,218     201,631     Operating expenses: Sales and marketing, including occupancy costs 66,629 67,684 127,564 132,629 General and administrative   13,831     14,811     27,038     29,471   Total operating expenses   80,460     82,495     154,602     162,100     Operating income 14,778 20,682 31,616 39,531   Other income (expense): Interest income 321 92 624 161 Interest expense   (92 )   (110 )   (186 )   (208 ) Total other income (expense)   229     (18 )   438     (47 )   Income before provision for income taxes 15,007 20,664 32,054 39,484 Provision for income taxes   6,138     8,152     13,354     15,517     Net income $ 8,869   $ 12,512   $ 18,700   $ 23,967     Per share information: Earnings per share: Basic $ 0.49 $ 0.68 $ 1.03 $ 1.31 Diluted $ 0.48 $ 0.68 $ 1.02 $ 1.29 Weighted average shares outstanding: Basic 18,184 18,291 18,184 18,291 Diluted 18,427 18,520 18,420 18,512   Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our unaudited Condensed Consolidated Financial Statements for the three and six months ended August 2, 2008 and August 1, 2009 and do not include the Notes, which are considered an integral part thereof. 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 August 1, 2009, which was filed with the Securities and Exchange Commission on September 2, 2009.    

JOS. A. BANK CLOTHIERS, INC.

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

    Six Months Ended August 2, 2008     August 1, 2009   Cash flows from operating activities: Net income $ 18,700 $ 23,967

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 10,049 10,896 Loss on disposals of property, plant and equipment 201 66 Increase in deferred taxes 282 225 Net increase in operating working capital and other components   (28,940 )   (24,773 )   Net cash provided by operating activities   292     10,381     Cash flows from investing activities: Capital expenditures (18,136 ) (7,413 ) Proceeds from disposal of fixed assets - - Purchases of short-term investments   -     (64,879 )   Net cash used in investing activities   (18,136 )   (72,292 )   Cash flows from financing activities: Net proceeds from exercise of stock options   119     -     Net cash provided by financing activities   119     -     Net decrease in cash and cash equivalents   (17,725 )   (61,911 )   Cash and cash equivalents – beginning of period   82,082     122,875     Cash and cash equivalents – end of period $ 64,357   $ 60,964     Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our unaudited Condensed Consolidated Financial Statements for six months ended August 2, 2008 and August 1, 2009 and do not include the Notes, which are considered an integral part thereof. 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 August 1, 2009, which was filed with the Securities and Exchange Commission on September 2, 2009.