JoS. A. Bank Clothiers Reports Results for Third Quarter of Fiscal Year 2013 Q3 Adjusted EPS Increases 9%, at Top End of Pre-Announced Range November Sales Increased in All Channels HAMPSTEAD, Md., Dec. 5, 2013 (GLOBE NEWSWIRE) -- JoS. A. Bank Clothiers, Inc. (Nasdaq:JOSB) announces that adjusted earnings per diluted share were $0.51 for the third quarter of fiscal 2013, excluding approximately $1.2 million of legal and professional expenses incurred in connection with the Company's acquisition proposal for The Men's Wearhouse, Inc. The third quarter results represent a 9% increase compared to diluted earnings of $0.47 per share for the third quarter of fiscal year 2012 and are at the top end of the projected EPS range previously announced by the Company. GAAP earnings for the third quarter of fiscal year 2013 were $0.49 per diluted share (including the $1.2 million of legal and professional expenses), also at the top end of the previously announced range. GAAP net income for the third quarter of fiscal year 2013 was $13.6 million as compared to net income of $13.3 million for the third quarter of fiscal year 2012. Total sales for the third quarter of fiscal year 2013 increased 6.3% to $247.5 million from $232.9 million in the third quarter of fiscal year 2012. Comparable store sales decreased 0.1% and Direct Marketing sales increased 23.5% in the third quarter of 2013 as compared to the third quarter of 2012. Combined comparable store and Internet sales for the third quarter of fiscal year 2013 increased 2.4% when compared to the third quarter of fiscal year 2012. R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. stated: "Our performance in the third quarter is a strong indication that we are taking the right actions to improve both our top and bottom lines. In particular, the customer is responding well to the changes we are making in the promotional side of our business and our non-promotional business continues to grow strongly. This was evident in our improving sales trend, both in stores and online, as well as in our marketing efficiency and the 40 basis point increase in our gross profit margin rate in the third quarter, which represents our second consecutive quarterly increase." Mr. Black continued, "For the start of the fourth quarter our total sales, comparable store sales and Direct sales all increased during the fiscal month of November 2013 as compared to the same period of 2012. That said, we recognize that the pivotal month of December is still ahead of us and, across our organization, we are highly focused on continuing to improve our sales trend. Taken together, we are pleased that our strategies are resonating with our customers and we look forward to taking advantage of the opportunities to grow both our stores and online businesses and delivering improved results in the future." Comparing the first nine months of fiscal year 2013 to the first nine months of fiscal year 2012, GAAP diluted earnings were $1.28 per share as compared to $1.83 per share and net income was $36.0 million as compared to $51.3 million. Total sales for the first nine months of fiscal year 2013 decreased 2.7% to $676.1 million from $694.5 million for the first nine months of fiscal year 2012, while comparable store sales decreased 8.5% and Direct Marketing sales increased 10.5%. Combined comparable store and Internet sales for the first nine months of fiscal year 2013 decreased 6.4% when compared to the first nine months of fiscal year 2012. The third quarter of fiscal year 2013 ended November 2, 2013; the third quarter of fiscal year 2012 ended October 27, 2012. This press release includes a non-GAAP measure of diluted earnings per share because we believe that presentation of adjusted earnings per diluted share provides useful information to investors as it is more indicative of the Company's operations. A conference call to discuss third quarter results (including a live question and answer session) will be held Thursday, December 5, 2013, at 11:00 a.m. Eastern Time (ET). To join in the call, please dial (USA) 800-230-1059 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 December 5, 2013, until December 12, 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 308076. 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 629 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 domestic and international economic activity and inflation, 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) and other production inputs (such as labor costs), 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" and/or "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended February 2, 2013 and our Quarterly Reports on Form 10-Q filed through 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. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended October27, November2, October27, November2, 2012 2013 2012 2013 (In thousands, except per (In thousands, except per share share information) information) Net sales $232,851 $ 247,468 $694,548 $ 676,052 Cost of goods sold 100,205 105,360 281,255 277,394 Gross profit 132,646 142,108 413,293 398,658 Operating expenses: Sales and marketing, including occupancy 94,354 101,273 276,306 286,599 costs General and 17,124 19,277 54,295 54,420 administrative Total operating 111,478 120,550 330,601 341,019 expenses Operating income 21,168 21,558 82,692 57,639 Other income (expense): Interest income 117 69 286 335 Interest expense (4) (5) (21) (14) Total other income 113 64 265 321 (expense) Income before provision for income 21,281 21,622 82,957 57,960 taxes Provision for income 7,976 8,006 31,662 22,007 taxes Net income $13,305 $13,616 $51,295 $35,953 Per share information: Earnings per share: Basic $0.48 $0.49 $1.84 $1.29 Diluted $0.47 $0.49 $1.83 $1.28 Weighted average shares outstanding: Basic 27,933 27,988 27,883 27,978 Diluted 28,017 28,054 28,005 28,050 Note: The foregoing unaudited Consolidated Statements of Income are excerpts from our unaudited Consolidated Financial Statements for the three and nine months ended October27, 2012 and November2, 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 November2, 2013, which was filed with the Securities and Exchange Commission on December5, 2013. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) February2, 2013 November2, 2013 (In thousands) ASSETS CURRENT ASSETS: Cash and cash equivalents $71,288 $85,023 Short-term investments 305,833 254,922 Accounts receivable, net 10,644 17,238 Inventories: Finished goods 317,635 358,569 Raw materials 12,867 10,056 Total inventories 330,502 368,625 Prepaid expenses and other current 23,922 26,069 assets Total current assets 742,189 751,877 NONCURRENT ASSETS: Property, plant and equipment, net 152,360 155,403 Other noncurrent assets 298 301 Total assets $894,847 $ 907,581 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $53,782 $40,572 Accrued expenses 104,639 97,035 Deferred tax liability — current 11,928 11,848 Total current liabilities 170,349 149,455 NONCURRENT LIABILITIES: Deferred rent 45,531 43,178 Deferred tax liability — 9,791 9,189 noncurrent Other noncurrent liabilities 1,613 1,514 Total liabilities 227,284 203,336 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred Stock — — Common stock 279 279 Additional paid-in capital 94,757 95,487 Retained earnings 572,718 608,670 Accumulated other comprehensive (191) (191) income (loss) Total stockholders' equity 667,563 704,245 Total liabilities and $894,847 $ 907,581 stockholders' equity Note: The foregoing unaudited Consolidated Balance Sheets are excerpts from our Consolidated Financial Statements (as of February2, 2013 and as of November2, 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 November2, 2013 and the Annual Report on Form 10-K for the fiscal year ended February2, 2013, which were filed with the Securities and Exchange Commission on December5, 2013 and April 3, 2013, respectively. JOS. A. BANK CLOTHIERS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended October27, 2012 November2, 2013 (In thousands) Cash flows from operating activities: Net income $51,295 $35,953 Adjustments to reconcile net income to net cash (used in) operating activities: Depreciation and amortization 20,910 22,132 Loss on disposals of property, 207 201 plant and equipment Non-cash equity compensation 1,688 1,260 Increase (decrease) in deferred (915) (682) taxes Net (increase)in operating working capital and other (102,821) (73,391) components Net cash (used in) operating (29,636) (14,527) activities Cash flows from investing activities: Capital expenditures (22,423) (22,118) Proceeds from maturities of 352,522 430,767 short-term investments Payments to acquire short-term (358,755) (379,856) investments Net cash provided by investing (28,656) 28,793 activities Cash flows from financing activities: Income tax benefit (detriment) 72 (40) from equity compensation plans Net proceeds from issuance of 556 — common stock Tax payments related to equity (634) (491) compensation plans Net cash (used in) financing (6) (531) activities Net (decrease) in cash and cash (58,298) 13,735 equivalents Cash and cash equivalents — 87,230 71,288 beginning of period Cash and cash equivalents — end of $28,932 $85,023 period Note: The foregoing unaudited Consolidated Statements of Cash Flows are excerpts from our unaudited Consolidated Financial Statements for the nine months ended October27, 2012 and November2, 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 November2, 2013, which was filed with the Securities and Exchange Commission on December5, 2013. 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 Reports Results for Third Quarter of Fiscal Year 2013
Press spacebar to pause and continue. Press esc to stop.