JoS. A. Bank Clothiers Reports First Quarter of Fiscal Year 2013 Results
JoS. A. Bank Clothiers Reports First Quarter of Fiscal Year 2013 Results HAMPSTEAD, Md., June 5, 2013 (GLOBE NEWSWIRE) -- JoS. A. Bank Clothiers, Inc. (Nasdaq:JOSB) announces that net income for the first quarter of fiscal year 2013 was $8.1 million as compared with net income of $14.8 million for the first quarter of fiscal year 2012. Diluted earnings for the first quarter of fiscal year 2013 were $0.29 per share as compared with diluted earnings of $0.53 per share for the first quarter of fiscal year 2012. The Company previously announced that earnings would be approximately $0.27 to $0.30 per diluted share. Total sales for the first quarter of fiscal year 2013 decreased 2.6% to $196.1 million from $201.4 million in the first quarter of fiscal year 2012. Comparable store sales decreased 8.5% and Direct Marketing sales increased 12.6% in the first quarter of 2013 as compared with the first quarter of 2012. Combined comparable store and Internet sales for the first quarter of fiscal year 2013 decreased 6.4% when compared to the first quarter of fiscal year 2012. The first quarter of fiscal year 2013 ended May 4, 2013; the first quarter of fiscal year 2012 ended April 28, 2012. Commenting on the results for the quarter, R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. stated: "While we were able to control our expenses and improve our advertising efficiency in the quarter, our sales declined 2.6%, primarily in April. In addition, our gross profit margin was down primarily due to higher inventory sourcing costs and lower average selling prices due mostly to an increased percentage of sales of winter and other clearance products. Like many other retailers, we were also affected by the unseasonably cool weather which adversely impacted both our sales and gross profit margin. On the positive side, our Direct Marketing business, driven primarily by the Internet, continued to perform well, with double-digit sales growth. The Company continues to maintain a strong balance sheet and, despite the slow start to the new year, the first quarter of fiscal year 2013 was still profitable." "The sales trend has continued into the second quarter of fiscal year 2013 as sales are down for the fiscal month of May. For the remainder of 2013, we will continue to focus on our goal of returning to previous levels of gross margin rates and advertising productivity. As such, we will continue to test, evaluate and refine our merchandising and advertising offerings to optimize the appeal to our customers. Additionally, starting this spring, we have introduced new and more focused casual assortments and additional slim-fit suit inventories responding to customer demand," continued Mr. Black. A conference call to discuss the first quarter of fiscal year 2013 earnings will be held Thursday, June 6, 2013 at 11:00 a.m. Eastern Time (ET). To join in the call please dial (USA) 800-230-1074 or (International) 612-234-9960 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 June 6, 2013 until June 13, 2013 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 293220. In addition, a webcast replay of the conference call will be posted on the investor relations section of our website: www.josbank.com. JoS. A. Bank Clothiers, Inc., established in 1905, is one of the nation's leading designers, manufacturers and retailers of men's classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 606 stores in 44 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." Our 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 forecasted due to a variety of factors outside of our control that can affect our operating results, liquidity, and financial condition. Such factors include risks associated with the economy, 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 our growth strategy (including our ability to finance our 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 our marketing programs (including compliance with relevant legal requirements), the availability of suitable lease sites for new stores, doing business on an international basis, the ability to source product from our global supplier base, legal and regulatory matters and other competitive factors. The identified risk factors and 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, but not limited to, those described under "Risk Factors" in our Annual Report on Form 10-K for the year ended February 2, 2013 and our Quarterly Report on Form 10-Q filed on the date hereof. These cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the results or developments anticipated by us will be realized or, even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business or our operations in the way we expect. We caution you not to place undue reliance on these forward-looking statements, which speak only as of their respective dates. Interim period sales are not necessarily indicative of sales expected for the full quarter. Furthermore, sales are just one component of earnings and no projection of earnings should be inferred from any discussion of interim period sales or other information in this release. We do not undertake an obligation to update or revise any forward-looking statements to reflect actual results or changes in our assumptions, estimates or projections. These risks should be carefully reviewed before making any investment decision. CONTACT: JoS. A. Bank Clothiers, Inc., Hampstead, Md. David E. Ullman EVP/CFO 410-239-5715 or Investor Relations Information Request Website http://phx.corporate-ir.net/phoenix.zhtml?c=113815&p=irol-inforeq or Investor Relations Voicemail, 410-239-5900 E-commerce Address for JoS. A. Bank Clothiers, Inc.: www.josbank.com JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) Three Months Ended April 28, 2012 May 4, 2013 Net sales $ 201,354 $196,055 Cost of goods sold 73,593 76,869 Gross profit 127,761 119,186 Operating expenses: Sales and marketing, including 85,762 88,701 occupancy costs General and administrative 17,591 17,532 Total operating expenses 103,353 106,233 Operating income 24,408 12,953 Other income (expense): Interest income 68 171 Interest expense (12) (5) Total other income (expense) 56 166 Income before provision for income 24,464 13,119 taxes Provision for income taxes 9,632 5,031 Net income $ 14,832 $ 8,088 Per share information: Earnings per share: Basic $ 0.53 $ 0.29 Diluted $ 0.53 $ 0.29 Weighted average shares outstanding: Basic 27,831 27,965 Diluted 27,995 28,047 Note: The foregoing unaudited Consolidated Statements of Income are excerpts from our unaudited Consolidated Financial Statements for the three months ended April 28, 2012 and May 4, 2013 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 May 4, 2013, which was filed with the Securities and Exchange Commission on June 5, 2013. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets February 2, 2013 May 4, 2013 (In thousands) (Audited) (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 71,288 $ 30,878 Short-term investments 305,833 289,852 Accounts receivable, net 10,644 21,073 Inventories: Finished goods 317,635 348,570 Raw materials 12,867 11,796 Total inventories 330,502 360,366 Prepaid expenses and other current 23,922 27,257 assets Total current assets 742,189 729,426 NONCURRENT ASSETS: Property, plant and equipment, net 152,360 151,806 Other noncurrent assets 298 215 Total assets $ 894,847 $ 881,447 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 53,782 $ 41,333 Accrued expenses 104,639 97,528 Deferred tax liability — current 11,928 11,916 Total current liabilities 170,349 150,777 NONCURRENT LIABILITIES: Deferred rent 45,531 43,811 Deferred tax liability — noncurrent 9,791 9,261 Other noncurrent liabilities 1,613 1,650 Total liabilities 227,284 205,499 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred Stock — — Common stock 279 279 Additional paid-in capital 94,757 95,054 Retained earnings 572,718 580,806 Accumulated other comprehensive (191) (191) income (loss) Total stockholders' equity 667,563 675,948 Total liabilities and stockholders' $ 894,847 $ 881,447 equity Note: The foregoing audited and unaudited Consolidated Balance Sheets are excerpts from our Consolidated Financial Statements (as of February 2, 2013 and as of May 4, 2013) and do not include the Notes, which are an integral part thereof. The foregoing financial information should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarterly period ended May 4, 2013 and the Annual Report on Form 10-K for the fiscal year ended February 2, 2013, which were filed with the Securities and Exchange Commission on June 5, 2013 and April 3, 2013, respectively. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended April 28, 2012 May 4, 2013 (In thousands) Cash flows from operating activities: Net income $ 14,832 $ 8,088 Adjustments to reconcile net income to net cash (used in) operating activities: Depreciation and amortization 6,820 7,493 Loss on disposals of property, plant 42 28 and equipment Non-cash equity compensation 599 510 Increase (decrease) in deferred taxes (655) (542) Net (increase) in operating working (78,890) (65,860) capital and other components Net cash (used in) operating activities (57,252) (50,283) Cash flows from investing activities: Capital expenditures (5,937) (5,895) Proceeds from maturities of short-term 118,958 140,915 investments Payments to acquire short-term (112,270) (124,934) investments Net cash provided by investing 751 10,086 activities Cash flows from financing activities: Income tax benefit from equity 14 (40) compensation plans Net proceeds from issuance of common — — stock Tax payments related to equity (372) (173) compensation plans Net cash (used in) financing activities (358) (213) Net (decrease) in cash and cash (56,859) (40,410) equivalents Cash and cash equivalents — beginning 87,230 71,288 of period Cash and cash equivalents — end of $ 30,371 $ 30,878 period Note: The foregoing unaudited Consolidated Statements of Cash Flows are excerpts from our unaudited Consolidated Financial Statements for the three months ended April 28, 2012 and May 4, 2013 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 May 4, 2013, which was filed with the Securities and Exchange Commission on June 5, 2013.