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

JoS. A. Bank Clothiers, Inc. (Nasdaq National Market:JOSB) announced today sales and earnings for the first quarter of the fiscal year ending February 3, 2007 ("fiscal 2006"). In addition, the Company has provided earnings guidance for fiscal 2006. For the first quarter of fiscal 2006, net income was $5.9 million, or $0.32 per share, as compared with net income of $6.7 million, or $0.38 per share, in the first quarter of the fiscal year ended January 29, 2006 ("fiscal 2005"). "While our sales of new transitional spring products remained consistent with last year, gross profits declined primarily as a result of increased customer demand for fall merchandise, resulting in less demand for the year-round core merchandise," stated David E. Ullman, Chief Financial Officer of JoS. A. Bank, Clothiers, Inc. "Our new spring products continue to show strong sales in May and early June, so we expect our year-over-year profits to increase at least 10% in the second quarter of fiscal 2006," continued Mr. Ullman. In addition, based on recent positive sales and gross margin trends, the Company expects to generate a double-digit percentage increase in earnings per share for the full year of fiscal 2006, as compared with the earnings per share of $1.95 in fiscal 2005. Total sales for the first quarter of fiscal 2006 increased 17.7% to $113.7 million, as compared with $96.6 million in the comparable prior year period. Comparable stores sales increased 4.7% in the first quarter of fiscal 2006, as compared with the comparable prior year period, while combined catalog and Internet sales increased 25.0%. A conference call to discuss this earnings news release will be held today, June 8, 2006 at 11:00 a.m. Eastern Time (EDT). To participate in the call today, please dial (USA) 800-762-4519 or (International) 480-629-9025, 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 8, 2006 until June 15, 2006 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 830552. A webcast replay of the conference call will be posted on the investor relations portion of our website: www.josbank.com (select 'Company Information' and 'Investor Relations'). 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 334 stores in 40 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 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, fashion trends and changing consumer preferences, the effectiveness of the Company's marketing programs, the availability of lease sites for new stores, the ability to source product from its global supplier base 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 28, 2006. 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 and projections. 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 ----------------------------- April 30, 2005 April 29, 2006 -------------- -------------- Net sales $ 96,575 $ 113,665 Cost of goods sold 35,962 43,914 -------------- -------------- Gross profit 60,613 69,751 -------------- -------------- Operating expenses: Sales and marketing 39,576 47,032 General and administrative 9,179 12,200 Store opening costs 76 84 -------------- -------------- Total operating expenses 48,831 59,316 -------------- -------------- Operating income 11,782 10,435 Interest expense, net 324 321 -------------- -------------- Income before provision for income taxes 11,458 10,114 Provision for income taxes 4,721 4,253 -------------- -------------- Net income $ 6,737 $ 5,861 ============== ============== Earnings per share: Net income: Basic $ 0.40 $ 0.33 Diluted $ 0.38 $ 0.32 Weighted average shares outstanding: Basic 16,839 17,884 Diluted 17,901 18,347 Note: The foregoing unaudited, Condensed Consolidated Statements of Income are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the three months ended April 30, 2005 and April 29, 2006) and do not include the Notes, which are considered an integral part thereof. The Company filed the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q on June 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended April 29, 2006, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2006. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands except per share data) (Unaudited) January 28, 2006 April 29, 2006 ---------------- ---------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 7,344 $ 852 Accounts receivable, net 6,455 7,918 Inventories: Raw materials 7,574 10,337 Finished goods 169,068 173,668 ---------------- ---------------- Total inventories 176,642 184,005 Prepaid expenses and other current assets 12,852 16,028 Prepaid income taxes - 6,020 ---------------- ---------------- Total current assets 203,293 214,823 NONCURRENT ASSETS: Property, plant and equipment, net 100,973 102,023 Other noncurrent assets 566 566 ---------------- ---------------- Total assets $ 304,832 $ 317,412 ================ ================ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 42,678 $ 35,168 Accrued expenses 52,480 41,432 Current portion of long-term debt 971 987 Deferred tax liability - current 10,954 10,954 ---------------- ---------------- Total current liabilities 107,083 88,541 NONCURRENT LIABILITIES: Long-term debt, net of current portion 4,826 17,410 Noncurrent lease obligations 35,007 35,183 Deferred tax liability - noncurrent 2,697 2,910 Other noncurrent liabilities 1,419 1,527 ---------------- ---------------- Total liabilities 151,032 145,571 ---------------- ---------------- STOCKHOLDERS' EQUITY: Common Stock 173 179 Additional paid-in capital 66,757 78,931 Retained earnings 86,870 92,731 ---------------- ---------------- Total stockholders' equity 153,800 171,841 ---------------- ---------------- Total liabilities and stockholders' equity $ 304,832 $ 317,412 ================ ================ Note: The foregoing unaudited, Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the year ended January 28, 2006 and the three months ended April 29, 2006) and do not include the Notes, which are considered an integral part thereof. The Company filed the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q on June 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended April 29, 2006, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2006. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands except per share data) (Unaudited) Three Months Ended ----------------------------- April 30, 2005 April 29, 2006 -------------- -------------- Cash flows from operating activities: Net income $ 6,737 $ 5,861 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 3,079 3,686 Loss on disposals of plant and equipment 3 3 Increase in deferred tax liability 8,269 213 Income tax benefit from exercise of stock options 952 - Net increase in operating working capital (23,194) (35,099) -------------- -------------- Net cash used in operating activities (4,154) (25,336) -------------- -------------- Cash flows from investing activities: Capital expenditures (5,133) (5,936) -------------- -------------- Net cash used in investing activities (5,133) (5,936) -------------- -------------- Cash flows from financing activities: Borrowings under long-term Credit Agreement 24,719 25,978 Repayments under long-term Credit Agreement (14,719) (13,542) Proceeds from long-term debt - 400 Repayment of other long-term debt (217) (236) Income tax benefit from exercise of stock options - 5,134 Net proceeds from issuance of common stock 216 7,046 -------------- -------------- Net cash provided by financing activities 9,999 24,780 -------------- -------------- Net increase (decrease) in cash and cash equivalents 712 (6,492) Cash and cash equivalents - beginning of period 1,425 7,344 -------------- -------------- Cash and cash equivalents - end of period $ 2,137 $ 852 ============== ============== Note: The foregoing unaudited, Condensed Consolidated Statements of Cash Flows are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the three months ended April 30, 2005 and April 29, 2006) and do not include the Notes, which are considered an integral part thereof. The Company filed the Condensed Consolidated Unaudited Financial Statements in its Quarterly Report on Form 10-Q on June 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended April 29, 2006, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2006. *T