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

JoS. A. Bank Clothiers, Inc. (Nasdaq Global Select Market: "JOSB") announces net income of $5.5 million for the fiscal third quarter ended October 28, 2006, as compared with net income of $4.7 million in the third quarter of the previous fiscal year. Diluted earnings per share increased 15% to $0.30 in the third quarter of fiscal 2006, as compared with $0.26 in the third quarter of fiscal 2005. Comparing the fiscal nine months ended October 28, 2006 with the comparable prior year period, net income increased to $18.3 million from $16.7 million; and diluted earnings per share rose 8% to $1.00 from $0.93. A conference call to discuss this earnings press release is scheduled for today, December 7, 2006, at 11:00 a.m. Eastern Time. To participate in the call today, please dial (USA) 800-288-8976 or (International) 612-332-0932, at least five minutes before 11:00 a.m. Eastern Time. A replay of the conference call will be available after 2:30 p.m. Eastern Time today until 11:59 p.m. on December 14, 2006, by dialing (USA) 800-475-6701 or (International) 320-365-3844. The access code for the replay will be 850674. 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�). Comparing the third fiscal quarter ended October 28, 2006 with the comparable prior year period, total sales increased 13.1% to $119.5 million from $105.6 million; comparable store sales increased 2.3%; and combined catalog and Internet sales increased 21.4%. Comparing the fiscal nine months ended October 28, 2006 with the comparable prior year period, total sales increased 17.1% to $352.3 million from $300.8 million; comparable store sales increased 5.6%; and combined catalog and Internet sales increased 21.6%. All earnings per share amounts in this news release represent 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 371 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 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, 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, 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 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. AND SUBSIDIARIES Condensed Consolidated Statements of Income (In thousands except per share data) (Unaudited) � Three Months Ended Nine Months Ended October 29,2005 October 28,2006 October 29,2005 October 28,2006 � Net sales $ 105,639� $ 119,511� $ 300,802� $ 352,274� Cost of goods sold 42,167� 47,057� 115,539� 135,770� Gross Profit 63,472� 72,454� 185,263� 216,504� � Operating expenses: Sales and marketing 43,294� 50,620� 123,728� 147,133� General and administrative 11,468� 12,599� 31,487� 37,254� Store opening costs 164� 176� 323� 324� Total operating expenses 54,926� 63,395� 155,538� 184,711� � Operating income 8,546� 9,059� 29,725� 31,793� � Interest expense, net 637� 418� 1,302� 986� � Income before provision for income taxes 7,909� 8,641� 28,423� 30,807� Provision for income taxes 3,257� 3,133� 11,695� 12,465� � Net income $ 4,652� $ 5,508� $ 16,728� $ 18,342� � Earnings per share: Net income per share: Basic $ 0.27� $ 0.31� $ 0.99� $ 1.02� Diluted $ 0.26� $ 0.30� $ 0.93� $ 1.00� Weighted average shares outstanding: Basic 17,101� 18,016� 16,966� 17,967� Diluted 18,075� 18,330� 17,993� 18,339� Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our Condensed Consolidated Unaudited Financial Statements (for the three months and nine months ended October 29, 2005 and October 28, 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 December 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company�s Form 10-Q for the quarterly period ended October 28, 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, 2006 October 28, 2006 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 7,344� $ 1,554� Accounts receivable, net 6,455� 9,056� Inventories: Raw materials 7,574� 8,012� Finished goods 169,068� 194,625� Total inventories 176,642� 202,637� Prepaid expenses and other current assets 12,852� 14,955� Prepaid income taxes -� 1,444� Total current assets 203,293� 229,646� � NONCURRENT ASSETS: Property, plant and equipment, net 100,973� 113,551� Other noncurrent assets 566� 606� Total assets $ 304,832� $ 343,803� � LIABILITIES AND STOCKHOLDERS� EQUITY � CURRENT LIABILITIES: Accounts payable $ 42,678� $ 34,289� Accrued expenses 52,480� 51,067� Current portion of long-term debt 971� 1,020� Deferred tax liability � current 10,954� 8,836� Total current liabilities 107,083� 95,212� � NONCURRENT LIABILITIES: Long-term debt, net of current portion 4,826� 21,117� Noncurrent lease obligations 35,007� 39,386� Deferred tax liability � noncurrent 2,697� 3,285� Other noncurrent liabilities 1,419� 1,204� Total liabilities 151,032� 160,204� � COMMITMENTS AND CONTINGENCIES � STOCKHOLDERS� EQUITY: Common stock 173� 179� Additional paid-in capital 66,757� 78,208� Retained earnings 86,870� 105,212� Total stockholders� equity 153,800� 183,599� Total liabilities and stockholders� equity $ 304,832� $ 343,803� 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 October 28, 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 December 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended October 28, 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) � Nine Months Ended October 29, 2005 October 28, 2006 � Cash flows from operating activities: Net income $ 16,728� $ 18,342� Adjustments to reconcile net income to net cash used in operating activities: Increase (decrease) in deferred income taxes 7,672� (1,530) Depreciation and amortization 9,460� 11,603� Loss on disposals of plant and equipment 24� 30� Income tax benefit from exercise of stock options 3,749� -� Net increase in operating working capital and other components (64,636) (41,710) � Net cash used in operating activities (27,003) (13,265) � Cash flows from investing activities: Capital expenditures (18,056) (20,322) � Net cash used in investing activities (18,056) (20,322) � Cash flows from financing activities: Borrowings under long-term Credit Agreement 92,731� 85,253� Repayments under long-term Credit Agreement (48,186) (68,595) Income tax benefit from exercise of stock options �� 4,371� Proceeds from issuance of long-term debt �� 400� Repayment of other long-term debt (678) (718) Net proceeds from exercise of stock options 1,299� 7,086� � Net cash provided by financing activities 45,166� 27,797� � Net increase (decrease) in cash and cash equivalents 107� (5,790) � Cash and cash equivalents � beginning of period 1,425� 7,344� � Cash and cash equivalents � end of period $ 1,532� $ 1,554� 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 29, 2005 and October 28, 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 December 7, 2006. The foregoing unaudited financial information should be read in conjunction with the Company's Form 10-Q for the quarterly period ended October 28, 2006, as well as the Company's Annual Report on Form 10-K for the fiscal year ended January 29, 2006.