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

JoS. A. Bank Clothiers, Inc. (Nasdaq Global Select Market: "JOSB") announced net income of $7.0 million in the second quarter ended July 29, 2006, as compared with net income of $5.3 million in the second quarter of the previous fiscal year. Earnings per share increased 27% to $0.38 in the second quarter of fiscal 2006, as compared with $0.30 in the second quarter of fiscal 2005, representing another quarter of record profitability. For the first six months of fiscal 2006, net income increased to $12.8 million, as compared with $12.1 million in the first six months of fiscal 2005, and earnings per share rose 4% to $0.70, as compared with $0.67 in the corresponding period of the previous fiscal year. The Company also reaffirmed that it expects to earn at least $2.15 per share in fiscal 2006, representing at least a 10% increase over fiscal 2005 earnings of $1.95 per share. A conference call to discuss this earnings press release is scheduled for today, September 7, 2006, at 11:00 a.m. Eastern Time (EDT). To participate in the call today, please dial (800) 230-1059, 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 today until 11:59 p.m. on September 14, 2006, by dialing (USA) (800) 475-6701 or (International) (320) 365-3844. The access code for the replay will be 837711. 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'). All earnings per share amounts in this news release represented diluted earnings per share adjusted for the 25% stock dividend that the company announced on December 14, 2005, under which shareholders of record as of January 27, 2006 received one additional share of common stock for each four shares then owned. The stock dividend was distributed on February 15, 2006. 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 346 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 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 anticipated 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, 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 lease sites for new stores, the ability to source product from its global supplier base, litigations 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 or 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 Six Months Ended ------------------- ------------------- July 30, July 29, July 30, July 29, 2005 2006 2005 2006 --------- --------- --------- --------- Net sales $ 98,588 $119,098 $195,163 $232,763 Cost of goods sold 37,410 44,799 73,372 88,713 --------- --------- --------- --------- Gross Profit 61,178 74,299 121,791 144,050 --------- --------- --------- --------- Operating expenses: Sales and marketing 40,834 49,481 80,431 96,513 General and administrative 10,840 12,455 20,019 24,655 Store opening costs 107 64 162 148 --------- --------- --------- --------- Total operating expenses 51,781 62,000 100,612 121,316 --------- --------- --------- --------- Operating income 9,397 12,299 21,179 22,734 Interest expense, net 341 247 665 568 --------- --------- --------- --------- Income before provision for income taxes 9,056 12,052 20,514 22,166 Provision for income taxes 3,717 5,079 8,438 9,332 --------- --------- --------- --------- Net income $ 5,339 $ 6,973 $ 12,076 $ 12,834 ========= ========= ========= ========= Earnings per share: Net income per share: Basic $ 0.31 $ 0.39 $ 0.71 $ 0.72 Diluted $ 0.30 $ 0.38 $ 0.67 $ 0.70 Weighted average shares outstanding: Basic 16,960 18,001 16,900 17,942 Diluted 18,001 18,339 17,951 18,343 Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the three months and six months ended July 30, 2005 and July 29, 2006) 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 September 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended July 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) (Unaudited) January 28, July 29, 2006 2006 ----------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 7,344 $ 1,325 Accounts receivable, net 6,455 7,372 Inventories: Raw materials 7,574 11,059 Finished goods 169,068 181,412 ----------- ----------- Total inventories 176,642 192,471 Prepaid expenses and other current assets 12,852 11,510 Prepaid income taxes - 1,716 ----------- ----------- Total current assets 203,293 214,394 ----------- ----------- NONCURRENT ASSETS: Property, plant and equipment, net 100,973 106,536 Other noncurrent assets 566 615 ----------- ----------- Total assets $ 304,832 $ 321,545 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 42,678 $ 40,165 Accrued expenses 52,480 44,165 Current portion of long-term debt 971 1,002 Deferred tax liability - current 10,954 10,960 ----------- ----------- Total current liabilities 107,083 96,292 NONCURRENT LIABILITIES: Long-term debt, net of current portion 4,826 5,679 Noncurrent lease obligations 35,007 36,284 Deferred tax liability - noncurrent 2,697 3,079 Other noncurrent liabilities 1,419 1,527 ----------- ----------- Total liabilities 151,032 142,861 ----------- ----------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock 173 179 Additional paid-in capital 66,757 78,801 Retained earnings 86,870 99,704 ----------- ----------- Total stockholders' equity 153,800 178,684 ----------- ----------- Total liabilities and stockholders' equity $ 304,832 $ 321,545 =========== =========== Note: The foregoing unaudited Condensed Consolidated Balance Sheets are excerpts from our Condensed Consolidated Unaudited Financial Statements (as of January 28, 2006 and as of July 29, 2006) 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 September 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended July 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) (Unaudited) Six Months Ended ----------------- July 30, July 29, 2005 2006 -------- -------- Cash flows from operating activities: Net income $12,076 $12,834 Adjustments to reconcile net income to net cash used in operating activities: Increase in deferred income taxes 7,923 388 Depreciation and amortization 6,285 7,542 Loss on disposals of plant and equipment 24 14 Income tax benefit from exercise of stock options 2,702 - Net increase in operating working capital and other components (30,629) (26,832) -------- -------- Net cash used in operating activities (1,619) (6,054) -------- -------- Cash flows from investing activities: Capital expenditures (11,880) (12,899) -------- -------- Net cash used in investing activities (11,880) (12,899) -------- -------- Cash flows from financing activities: Borrowings under long-term Credit Agreement 42,379 7,747 Repayments under long-term Credit Agreement (29,376) (6,785) Income tax benefit from exercise of stock options -- 4,964 Proceeds from issuance of long-term debt -- 400 Repayment of other long-term debt (457) (478) Net proceeds from exercise of stock options 600 7,086 -------- -------- Net cash provided by financing activities 13,146 12,934 -------- -------- Net decrease in cash and cash equivalents (353) (6,019) Cash and cash equivalents - beginning of period 1,425 7,344 -------- -------- Cash and cash equivalents - end of period $ 1,072 $ 1,325 ======== ======== Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the six months ended July 30, 2005 and July 29, 2006) 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 September 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended July 30, 2006, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2006. *T