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JoS. A. Bank Clothiers Reports Record Fiscal Year 2007 Results; Earnings Per Share Increase 15%

Posted on: Thursday, 10 April 2008, 15:01 CDT

JoS. A. Bank Clothiers, Inc. (NASDAQ Global Select Market:JOSB) announces today record results for its fiscal year ended February 2, 2008 ("fiscal year 2007").

Net income for fiscal year 2007 increased to a record $50.2 million, as compared with net income of $43.2 million for the fiscal year ended February 3, 2007 ("fiscal year 2006"). Earnings per share for fiscal year 2007 increased 15% to a record $2.72 as compared with earnings per share of $2.36 for fiscal year 2006. The Company noted that the results for fiscal year 2007 represent the seventh consecutive year of record earnings.

Net sales reached a record of $604.0 million in fiscal year 2007, representing a 10.5% gain as compared with net sales of $546.4 million in fiscal year 2006. The Company ended fiscal year 2007 with no debt and $82.1 million of cash.

Fiscal year 2007 contained 52 weeks and fiscal year 2006 contained 53 weeks, consistent with the National Retail Federation's 4-5-4 week calendar. Total net sales and Direct Marketing sales comparisons presented herein use the actual number of weeks in each fiscal period. Comparable store sales comparisons presented herein use the corresponding weeks in the comparable prior fiscal period.

Comparing the 52 weeks of fiscal year 2007 with the 53 weeks of fiscal year 2006, total net sales increased 10.5% to $604.0 million from $546.4 million and Direct Marketing sales increased 13.1%. Comparing the 52 weeks of fiscal year 2007 with the first 52 weeks of fiscal year 2006, comparable store sales increased 3.8%.

The Company will hold a conference call on Tuesday, April 15, 2008 at 11:00 a.m. ET to discuss its results for fiscal year 2007. To join in the call please dial (USA) 800-762-7308 or (International) 480-629-9033 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 April 15, 2008 until April 22, 2008 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 918768. 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").

All earnings per share amounts in this news release represent diluted earnings per share.

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 426 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 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, 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 the Company's business or future financial results are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended February 2, 2008. 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.

CONSOLIDATED BALANCE SHEETS

AS OF FEBRUARY 3, 2007 AND FEBRUARY 2, 2008

(In Thousands, Except Share Information)

February 3, 2007

February 2, 2008

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

43,080

$

82,082

Accounts receivable, net

5,193

5,855

Inventories, net

183,471

206,825

Prepaid expenses and other current assets

18,560

18,593

Total current assets

250,304

313,355

NONCURRENT ASSETS:

Property, plant and equipment, net

117,553

126,235

Other noncurrent assets

535

508

Total assets

$

368,392

$

440,098

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

41,683

$

47,383

Accrued expenses

63,606

72,150

Deferred tax liability

8,453

6,688

Total current liabilities

113,742

126,221

NONCURRENT LIABILITIES:

Long-term debt

412

-

Noncurrent lease obligations

42,053

50,185

Noncurrent deferred tax liability

2,595

1,210

Other noncurrent liabilities

1,356

1,317

Total liabilities

160,158

178,933

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:

Preferred stock, $1.00 par, 500,000 shares authorized, none issued or outstanding

-

-

Common stock, $.01 par, 45,000,000 shares authorized, 18,039,826 issued and outstanding at February 3, 2007 and 18,179,371 issued and outstanding at February 2, 2008

180

181

Additional paid-in capital

78,101

80,791

Retained earnings

130,092

180,260

Accumulated other comprehensive losses

(139

)

(67

)

Total stockholders' equity

208,234

261,165

Total liabilities and stockholders' equity

$

368,392

$

440,098

Note: The foregoing unaudited Condensed Consolidated Balance Sheets are excerpts from our Consolidated Financial Statements (as of February 3, 2007 and as of February 2, 2008) 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 Annual Report on Form 10-K for the fiscal year ended February 2, 2008 which was filed with the Securities and Exchange Commission on April 10, 2008.

JOS. A. BANK CLOTHIERS, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED JANUARY 28, 2006, FEBRUARY 3, 2007 AND FEBRUARY 2, 2008

(In Thousands, Except Per Share Information)

Fiscal Year

2005

2006

2007

NET SALES

$

464,633

$

546,385

$

604,010

Cost of goods sold

177,006

207,947

225,364

GROSS PROFIT

287,627

338,438

378,646

OPERATING EXPENSES:

Sales and marketing

179,902

212,890

242,655

General and administrative

45,930

52,453

53,240

Total operating expenses

225,832

265,343

295,895

OPERATING INCOME

61,795

73,095

82,751

OTHER INCOME (EXPENSE):

Interest income

136

461

1,937

Interest expense

(1,930

)

(1,399

)

(355

)

Total other income (expense)

(1,794

)

(938

)

1,582

Income before provision for income taxes

60,001

72,157

84,333

Provision for income taxes

24,751

28,935

34,165

NET INCOME

$

35,250

$

43,222

$

50,168

EARNINGS PER SHARE

Net income:

Basic

$

2.07

$

2.40

$

2.77

Diluted

$

1.95

$

2.36

$

2.72

Weighted average shares outstanding:

Basic

17,021

17,981

18,128

Diluted

18,031

18,342

18,420

Note: The foregoing unaudited Condensed Consolidated Statements of Income are excerpts from our Consolidated Financial Statements for each of the three years ended February 2, 2008 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 Annual Report on Form 10-K for the fiscal year ended February 2, 2008 which was filed with the Securities and Exchange Commission on April 10, 2008.

JOS. A. BANK CLOTHIERS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED JANUARY 28, 2006, FEBRUARY 3, 2007 AND FEBRUARY 2, 2008

(In Thousands, Except Share Information)

Shares of common stock

Common stock

Additional paid-in capital

Retained earnings

Treasury stock

Accumulated other comprehensive losses

Total stockholders' equity

BALANCE, JANUARY 29, 2005

16,825,370

$

124

$

67,594

$

51,664

$

(5,058

)

$

-

$

114,324

Net income

-

-

-

35,250

-

-

35,250

Retirement of treasury stock, at cost

-

-

(5,058

)

-

5,058

-

-

Issuance of common stock pursuant to Incentive Option Plan

460,156

5

1,596

-

-

-

1,601

Income tax benefit from exercise of non-qualified stock options

-

-

2,694

-

-

-

2,694

Stock dividend fractional share repurchase

(1,722

)

-

(69

)

-

-

-

(69

)

Stock dividend transfer of par value

-

44

-

(44

)

-

-

-

BALANCE, JANUARY 28, 2006

17,283,804

173

66,757

86,870

-

-

153,800

Net income

-

-

-

43,222

-

-

43,222

Adjustment to minimum pension liability, net of tax effect of $4

-

-

-

-

-

6

6

Comprehensive income

43,228

Adjustment to initially apply FAS No. 158, net of tax benefit of $95

-

-

-

-

-

(145

)

(145

)

Issuance of common stock pursuant to Incentive Option Plan

756,022

7

7,397

-

-

-

7,404

Income tax benefit from exercise of non-qualified stock options

-

-

3,947

-

-

-

3,947

BALANCE, FEBRUARY 3, 2007

18,039,826

180

78,101

130,092

-

(139

)

208,234

Net income

-

-

-

50,168

-

-

50,168

Adjustment to minimum pension liability, net of tax benefit of $47

-

-

-

-

-

72

72

Comprehensive income

50,240

Issuance of common stock pursuant to Incentive Option Plan

139,545

1

1,868

-

-

-

1,869

Income tax benefit from exercise of non-qualified stock options

-

-

822

-

-

-

822

BALANCE, FEBRUARY 2, 2008

18,179,371

$

181

$

80,791

$

180,260

$

-

$

(67

)

$

261,165

Note: The foregoing unaudited Consolidated Statements of Stockholders' Equity are excerpts from our Consolidated Financial Statements for each of the three years ended February 2, 2008 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 Annual Report on Form 10-K for the fiscal year ended February 2, 2008 which was filed with the Securities and Exchange Commission on April 10, 2008.

JOS. A. BANK CLOTHIERS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JANUARY 28, 2006, FEBRUARY 3, 2007 AND FEBRUARY 2, 2008

(In Thousands)

Fiscal Year

2005

2006

2007

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

35,250

$

43,222

$

50,168

Adjustments to reconcile net income to net cash provided by operating activities:

Increase (decrease) deferred taxes

12,791

(2,603

)

(3,150

)

Depreciation and amortization

13,020

15,809

18,477

Loss on disposition of assets

31

34

281

Income tax benefit from exercise of non-qualified stock options

2,694

-

-

Asset impairment charges

-

-

833

Non-cash recognition of state grant

-

-

(485

)

Changes in assets and liabilities:

(Increase) decrease in accounts receivable

(1,657

)

1,262

(662

)

Increase in inventories

(48,949

)

(6,829

)

(23,354

)

Increase in prepaid expenses and other assets

(960

)

(5,708

)

(10

)

Decrease in non-current assets

942

31

27

Increase (decrease) in accounts payable

2,545

(995

)

5,700

Increase in accrued expenses

15,503

10,490

7,602

Increase in noncurrent lease obligations

4,689

7,046

8,132

Increase (decrease) in other noncurrent liabilities

1,127

(848

)

153

Net cash provided by operating activities

37,026

60,911

63,712

CASH FLOWS USED FOR INVESTING ACTIVITIES:

Payments for capital expenditures

(31,577

)

(31,141

)

(27,696

)

Proceeds from disposal of assets

-

-

295

Net cash used for investing activities

(31,577

)

(31,141

)

(27,401

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings under revolving loan agreement

106,185

90,135

-

Repayment of borrowings under revolving loan agreement

(106,185

)

(90,135

)

-

Proceeds from long-term debt

-

400

-

Repayment of other long-term debt

(1,062

)

(5,785

)

-

Income tax benefit from exercise of non-qualified stock options

-

3,947

822

Proceeds from issuance of common stock, net of fractional share repurchase

1,532

7,404

1,869

Net cash provided by (used in) financing activities

470

5,966

2,691

Net increase in cash and cash equivalents

5,919

35,736

39,002

CASH AND CASH EQUIVALENTS, beginning of year

1,425

7,344

43,080

CASH AND CASH EQUIVALENTS, end of year

$

7,344

$

43,080

$

82,082

Note: The foregoing unaudited Condensed Consolidated Statements of Cash Flows are excerpts from our Consolidated Financial Statements for each of the three years ended February 2, 2008 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 Annual Report on Form 10-K for the fiscal year ended February 2, 2008 which was filed with the Securities and Exchange Commission on April 10, 2008.

Source: Business Wire

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