JoS. A. Bank Clothiers Reports 19% Increase in Profits for Third Quarter of Fiscal Year 2011
November 30 2011 - 6:00AM
JoS. A. Bank Clothiers, Inc. (Nasdaq:JOSB) announces that net
income for the third quarter of fiscal year 2011 increased 19.3% to
$15.0 million as compared with net income of $12.6 million for the
third quarter of fiscal year 2010. Earnings per share for the third
quarter of fiscal year 2011 increased 20.0% to $0.54 per share as
compared with earnings per share of $0.45 for the third quarter of
fiscal year 2010. The third quarter of fiscal year 2011 ended
October 29, 2011; the third quarter of fiscal year 2010 ended
October 30, 2010.
Total sales for the third quarter of fiscal year 2011 increased
21.0% to $209.6 million from $173.3 million in the third quarter of
fiscal year 2010, while comparable store sales increased 14.6% and
Direct Marketing sales increased 28.6%.
Comparing the first nine months of fiscal year 2011 with the
first nine months of fiscal year 2010, net income increased 18.9%
to $53.3 million as compared to $44.9 million and earnings per
share increased 18.6% to $1.91 per share as compared to $1.61 per
share. Total sales for the first nine months of fiscal year 2011
increased 17.4% to $633.6 million from $539.8 million for the first
nine months of fiscal year 2010, while comparable store sales
increased 9.9% and Direct Marketing sales increased 26.1%.
"We are pleased to report another solid sales and earnings
performance for the third quarter of fiscal year 2011 with sales
growth of 21.0% and earnings growth of 19.3%. With this quarter's
results, we have achieved earnings growth in 40 of the past 41
quarters when compared to the respective prior year periods,
including 22 quarters in a row," stated R. Neal Black, President
and CEO of JoS. A. Bank Clothiers, Inc. "The fourth quarter,
compared to a very strong performance last year, has started out
more slowly than we had planned. November comparable store sales
declined, while our direct segment sales increased, compared to the
same period last year. As a result, we have adjusted our December
merchandising and marketing plans for stores. We believe our
efforts will be effective and appealing to our customers. Therefore
we remain cautiously optimistic for the outcome of this year's
fourth quarter," continued Mr. Black.
A conference call to discuss the
third quarter of fiscal year 2011 earnings
will be held Thursday, December 1, 2011 at 11:00 a.m. Eastern Time
(ET). To join in the call please dial (USA) 800-230-1092 or
(International) 612-234-9959 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 1, 2011 until December 8, 2011 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 225849. 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 adjusted for the 50% stock dividend that
the Company announced on June 17, 2010, under which stockholders of
record as of July 30, 2010 received one additional share of common
stock for each two shares then owned. The stock dividend was
distributed on August 18, 2010.
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 552 stores in 43 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 economic, 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 our Annual Report on Form 10-K for the year
ended January 29, 2011 and our subsequent 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. 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.
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JOS. A. BANK CLOTHIERS,
INC. AND SUBSIDIARIES |
Condensed Consolidated
Statements of Income |
(Unaudited) |
|
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|
Three Months
Ended |
Nine Months
Ended |
|
October 30,
2010 |
October 29,
2011 |
October 30,
2010 |
October 29,
2011 |
|
(In
thousands, except per share information) |
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Net sales |
$ 173,268 |
$209,635 |
$ 539,805 |
$633,567 |
Cost of goods sold |
62,429 |
78,383 |
197,320 |
233,095 |
Gross profit |
110,839 |
131,252 |
342,485 |
400,472 |
Operating expenses: |
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|
|
Sales and marketing, including
occupancy costs |
73,961 |
86,917 |
218,228 |
253,889 |
General and administrative |
16,421 |
20,118 |
50,332 |
58,731 |
Total operating expenses |
90,382 |
107,035 |
268,560 |
312,620 |
Operating income |
20,457 |
24,217 |
73,925 |
87,852 |
Other income (expense): |
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Interest income |
148 |
45 |
422 |
260 |
Interest expense |
(33) |
(290) |
(128) |
(311) |
Total other income (expense) |
115 |
(245) |
294 |
(51) |
Income before provision for income taxes |
20,572 |
23,972 |
74,219 |
87,801 |
Provision for income taxes |
8,009 |
8,990 |
29,369 |
34,455 |
Net income |
$ 12,563 |
$ 14,982 |
$ 44,850 |
$ 53,346 |
Per share information: |
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Earnings per share: |
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Basic |
$ 0.46 |
$ 0.54 |
$ 1.63 |
$ 1.92 |
Diluted |
$ 0.45 |
$ 0.54 |
$ 1.61 |
$ 1.91 |
Weighted average shares outstanding: |
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Basic |
27,534 |
27,828 |
27,529 |
27,733 |
Diluted |
27,849 |
27,972 |
27,831 |
27,953 |
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Note: The foregoing unaudited
Consolidated Statements of Income are excerpts from our unaudited
Consolidated Financial Statements for the three and nine months
ended October 30, 2010 and October 29, 2011 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 October 29, 2011
which was filed with the Securities and Exchange Commission on
November 30, 2011. |
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JOS. A. BANK CLOTHIERS,
INC. AND SUBSIDIARIES |
Condensed Consolidated
Balance Sheets |
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|
January 29,
2011 |
October 29,
2011 |
|
(In
Thousands) |
|
(Audited) |
(Unaudited) |
ASSETS |
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CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 80,979 |
$115,440 |
Short-term investments |
189,789 |
124,626 |
Accounts receivable, net |
9,525 |
12,789 |
Inventories: |
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Finished goods |
222,251 |
314,583 |
Raw materials |
11,059 |
14,973 |
Total inventories |
233,310 |
329,556 |
Prepaid expenses and other
current assets |
19,494 |
31,785 |
Total current assets |
533,097 |
614,196 |
NONCURRENT ASSETS: |
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Property, plant and equipment,
net |
128,603 |
146,056 |
Other noncurrent assets |
337 |
313 |
Total assets |
$ 662,037 |
$760,565 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
$ 31,505 |
$ 63,990 |
Accrued expenses |
88,165 |
93,816 |
Deferred tax liability –
current |
5,276 |
4,793 |
Total current liabilities |
124,946 |
162,599 |
NONCURRENT LIABILITIES: |
|
|
Deferred rent |
49,279 |
48,808 |
Deferred tax liability –
noncurrent |
4,147 |
7,771 |
Other noncurrent
liabilities |
989 |
896 |
Total liabilities |
179,361 |
220,074 |
COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS' EQUITY: |
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Common stock |
275 |
277 |
Additional paid-in capital |
86,792 |
91,259 |
Retained earnings |
395,531 |
448,877 |
Accumulated other comprehensive
income |
78 |
78 |
Total stockholders' equity |
482,676 |
540,491 |
Total liabilities and
stockholders' equity |
$ 662,037 |
$760,565 |
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Note: The foregoing audited and
unaudited Consolidated Balance Sheets are excerpts from our
Consolidated Financial Statements (as of January 29, 2011
and as of October 29, 2011) 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
October 29, 2011 and the Annual Report on Form 10-K for
the fiscal year ended January 29, 2011, which were filed
with the Securities and Exchange Commission on
November 30, 2011 and March 30, 2011, respectively. |
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JOS. A. BANK CLOTHIERS,
INC. AND SUBSIDIARIES |
Condensed Consolidated
Statements of Cash Flows |
(Unaudited) |
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Nine Months
Ended |
|
October 30,
2010 |
October 29,
2011 |
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(In
Thousands) |
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Cash flows from operating activities: |
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Net income |
$ 44,850 |
$ 53,346 |
Adjustments to reconcile net income to net
cash provided by (used in) operating activities: |
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Depreciation and
amortization |
18,107 |
19,173 |
Loss on disposals of property,
plant and equipment |
150 |
221 |
Non-cash equity
compensation |
701 |
2,040 |
Increase in deferred taxes |
455 |
3,141 |
Net (increase) in operating
working capital and other components |
(59,194) |
(84,837) |
Net cash provided by
(used in) operating activities |
5,069 |
(6,916) |
Cash flows from investing activities: |
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Capital expenditures |
(20,696) |
(26,215) |
Proceeds from maturities of
short-term investments |
134,840 |
348,768 |
Payments to acquire short-term
investments |
(44,850) |
(283,605) |
Net cash provided by
investing activities |
69,294 |
38,948 |
Cash flows from financing activities: |
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Income tax benefit from
exercise of stock options |
1,300 |
1,883 |
Net proceeds from exercise of
stock options |
1,012 |
546 |
Fractional share payments |
(21) |
— |
Net cash provided by
financing activities |
2,291 |
2,429 |
Net increase in cash and cash
equivalents |
76,654 |
34,461 |
Cash and cash equivalents – beginning of
period |
21,853 |
80,979 |
Cash and cash equivalents – end of
period |
$ 98,507 |
$115,440 |
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Note: The foregoing unaudited
Consolidated Statements of Cash Flows are excerpts from our
unaudited Consolidated Financial Statements for the nine months
ended October 30, 2010 and October 29, 2011 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 October 29, 2011,
which was filed with the Securities and Exchange Commission on
November 30, 2011. |
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
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