Jos. A. Bank Reports Results for Fourth Quarter of Fiscal Year 2013
April 02 2014 - 7:00AM
Adjusted Earnings Per Share Increased 9%
for the Quarter Sales Trends, Which Were Positive
in Q4, Also Up in February and March
Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB) (the "Company") today
announced that adjusted earnings per diluted share were $1.07 for
the fourth quarter of fiscal 2013, representing a 9% increase
compared to adjusted earnings per diluted share of $.98 in the
fourth quarter of fiscal 2012, and at the midpoint of the projected
EPS range previously announced by the Company. R. Neal Black,
President and CEO, said, "The initiatives we have undertaken to
improve both our top and bottom line performance are delivering
results. As we previously reported, our sales through the holidays
were robust, with comparable brand sales up 9.1% between November
3rd and December 24th. While this was offset by the impact of the
snow storms and nationwide deep freeze in the post-holiday period,
the combination of our improved marketing efficiency through our
new promotional strategies and strict financial discipline allowed
us to deliver the 9% gain in adjusted earnings per share."
He added, "We have generated double-digit total sales gains in
fiscal February and the first four weeks of fiscal March of 2014,
reflecting positive consumer response to our promotions as well as
ongoing strength in the non-promotional portion of our business. We
are focused on maintaining this sales momentum while improving our
profitability."
The adjusted earnings for the fourth quarter of fiscal year 2013
exclude expenses of approximately $.07 per diluted share for legal
and other professional services related to the Company's announced
acquisition by The Men's Wearhouse, Inc. and other strategic
activity, and $.02 per diluted share for estimated non-cash asset
impairment charges. Including these amounts, GAAP earnings for the
fourth quarter of fiscal year 2013 were $0.98 per diluted
share.
The Company's fourth quarter 2012 adjusted earnings of $.98 per
diluted share exclude approximately $.02 per diluted share for
non-cash asset impairment charges and approximately $.05 per
diluted share for the estimated positive impact of the 14th week in
2012. Including these amounts, GAAP earnings for the fourth quarter
of fiscal 2012 were $1.01 per diluted share. The 13-week fourth
quarter of fiscal year 2013 ended February 1, 2014; the 14-week
quarter of fiscal year 2012 ended February 2, 2013.
Fiscal February 2014 ended on March 1, 2014 and fiscal March
2014 will end on April 5, 2014.
Consistent with previously announced expectations, total
comparable brand sales for the 13 week fourth quarter of fiscal
year 2013 increased 1.8% when compared to the same comparable
period of fiscal year 2012 and Direct sales increased 10.6%. Total
sales for the fourth quarter of fiscal year 2013 increased 4.7%
during the same period. Total sales for the 13 weeks of the 2013
fourth quarter versus the 14 weeks of the 2012 fourth quarter were
up .4%, reaching $356 million compared to $355 million in the prior
year period.
As announced on March 11, 2014, Jos. A. Bank and Men's Wearhouse
entered into a definitive agreement under which Men's Wearhouse
will purchase all outstanding shares of Jos. A. Bank for $65.00 per
share in cash. The transaction is expected to close by the third
quarter of 2014, subject to satisfaction of customary closing
conditions.
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 633 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."
Non-GAAP Measurements
This press release includes a non-GAAP financial measure. Jos.
A. Bank is presenting adjusted earnings per diluted share, which is
a non-GAAP financial measure. Jos. A. Bank believes presentation of
this non-GAAP financial measure is useful to investors in
connection with their financial analysis. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, Jos. A. Bank's results prepared in accordance with GAAP. For a
description of how Jos. A. Bank reconciles these non-GAAP financial
measures to GAAP earnings, please see the third and fourth
paragraphs of this press release.
FORWARD-LOOKING STATEMENTS
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 1, 2014. 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.
ADDITIONAL INFORMATION
This press release does not constitute an offer to buy or
solicitation of an offer to sell any securities. In response to the
tender offer for the shares of Jos. A. Bank commenced by The Men's
Wearhouse, Inc. and Java Corp., Jos. A. Bank has filed a
solicitation/recommendation statement on Schedule 14D-9 with the
U.S. Securities and Exchange Commission ("SEC"). Any
solicitation/recommendation statement filed by Jos. A. Bank that is
required to be mailed to stockholders will be mailed to
stockholders of Jos. A. Bank. INVESTORS AND STOCKHOLDERS OF JOS. A.
BANK ARE URGED TO READ THE SOLICITATION / RECOMMENDATION STATEMENT
AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and
stockholders may obtain free copies of the
solicitation/recommendation statement and other documents (when
available) filed with the SEC by Jos. A. Bank free of charge
through the website maintained by the SEC at www.sec.gov. In
addition, the solicitation/recommendation statement and other
materials related to Men's Wearhouse's unsolicited proposal may be
obtained from Jos. A. Bank free of charge by directing a request to
Jos. A. Bank's Investor Relations Department, Jos. A. Bank
Clothiers, Inc., 500 Hanover Pike, Hampstead, MD 21074,
410-239-5900.
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 |
|
MEDIA CONTACT: |
Thomas Davies/Molly Morse |
Kekst and Company |
212-521-4873/212-521-4826 |
thomas-davies@kekst.com |
molly-morse@kekst.com |
|
E-commerce Address for Jos. A. Bank
Clothiers, Inc.: |
www.josbank.com |
|
|
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED BALANCE
SHEETS |
AS OF FEBRUARY 2,
2013 AND FEBRUARY 1, 2014 |
|
|
February 2,
2013 |
February 1,
2014 |
|
(In thousands, except
share information) |
ASSETS |
|
|
CURRENT ASSETS: |
|
|
Cash and cash
equivalents |
$ 71,288 |
$ 305,531 |
Short-term
investments |
305,833 |
139,969 |
Accounts receivable,
net |
10,644 |
13,592 |
Inventories |
330,502 |
304,322 |
Prepaid expenses and other
current assets |
23,922 |
23,060 |
Total current assets |
742,189 |
786,474 |
NONCURRENT ASSETS: |
|
|
Property, plant and equipment,
net |
152,360 |
148,966 |
Other noncurrent
assets |
298 |
298 |
Total assets |
$ 894,847 |
$ 935,738 |
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$ 53,782 |
$ 32,946 |
Accrued expenses |
104,639 |
115,023 |
Deferred tax liability —
current |
11,928 |
1,819 |
Total current
liabilities |
170,349 |
149,788 |
NONCURRENT LIABILITIES: |
|
|
Deferred rent |
45,531 |
41,296 |
Deferred tax liability —
noncurrent |
9,791 |
11,158 |
Other noncurrent
liabilities |
1,613 |
1,412 |
Total liabilities |
227,284 |
203,654 |
COMMITMENTS AND
CONTINGENCIES |
|
|
STOCKHOLDERS' EQUITY: |
|
|
Preferred stock, $1.00 par,
500,000 shares authorized, none issued or outstanding |
— |
— |
Common stock, $0.01 par,
45,000,000 shares authorized, 27,622,054 issued and outstanding at
January 28, 2012 and 27,827,837 issued and outstanding at February
2, 2013 |
279 |
279 |
Additional paid-in
capital |
94,757 |
95,825 |
Retained earnings |
572,718 |
636,044 |
Accumulated other comprehensive
income (loss) |
(191) |
(64) |
Total stockholders'
equity |
667,563 |
732,084 |
Total liabilities and
stockholders' equity |
$ 894,847 |
$ 935,738 |
|
Note: The foregoing audited
Consolidated Balance Sheets are excerpts from our Consolidated
Financial Statements (as of February 2, 2013 and as of February 1,
2014) and do not include the Notes, which are an integral part
thereof. The foregoing audited financial information should be
read in conjunction with the Company's Annual Report on Form 10-K
for the fiscal year ended February 1, 2014 which was filed with the
Securities and Exchange Commission on April 2, 2014. |
|
|
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED STATEMENTS
OF INCOME |
FOR THE YEARS ENDED
JANUARY 28, 2012, FEBRUARY 2, 2013 AND FEBRUARY 1,
2014 |
|
|
Fiscal
Year |
|
2011 |
2012 |
2013 |
|
(In thousands, except
per share information) |
NET SALES |
$ 979,852 |
$ 1,049,313 |
$ 1,032,166 |
Cost of goods sold |
371,577 |
437,551 |
435,578 |
GROSS PROFIT |
608,275 |
611,762 |
596,588 |
OPERATING EXPENSES: |
|
|
|
Sales and marketing, including
occupancy costs |
372,268 |
409,150 |
416,469 |
General and
administrative |
76,600 |
74,172 |
78,093 |
Total operating expenses |
448,868 |
483,322 |
494,562 |
OPERATING INCOME |
159,407 |
128,440 |
102,026 |
OTHER INCOME (EXPENSE): |
|
|
|
Interest income |
347 |
429 |
393 |
Interest expense |
(312) |
(26) |
(44) |
Total other income (expense) |
35 |
403 |
349 |
Income before provision for income
taxes |
159,442 |
128,843 |
102,375 |
Provision for income taxes |
61,951 |
49,147 |
39,049 |
NET INCOME |
$ 97,491 |
$ 79,696 |
$ 63,326 |
PER SHARE INFORMATION |
|
|
|
Earnings per share: |
|
|
|
Basic |
$ 3.51 |
$ 2.86 |
$ 2.26 |
Diluted |
$ 3.49 |
$ 2.84 |
$ 2.26 |
Weighted average shares outstanding: |
|
|
|
Basic |
27,757 |
27,901 |
27,981 |
Diluted |
27,961 |
28,013 |
28,053 |
|
Note: The foregoing audited
Consolidated Statements of Income are excerpts from our
Consolidated Financial Statements for each of the three years ended
February 1, 2014 and do not include the Notes, which are considered
an integral part thereof. The foregoing audited financial
information should be read in conjunction with the Company's Annual
Report on Form 10-K for the fiscal year ended February 1, 2014
which was filed with the Securities and Exchange Commission on
April 2, 2014. |
|
|
JOS. A. BANK CLOTHIERS,
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
FOR THE YEARS ENDED
JANUARY 28, 2012, FEBRUARY 2, 2013 AND FEBRUARY 1,
2014 |
|
|
Fiscal
Year |
|
2011 |
2012 |
2013 |
|
(In
thousands) |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ 97,491 |
$ 79,696 |
$ 63,326 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
|
Depreciation and
amortization |
26,101 |
28,521 |
29,573 |
Loss on disposals of property,
plant and equipment |
311 |
269 |
396 |
Asset impairment
charges |
294 |
805 |
1,041 |
Non-cash equity
compensation |
2,547 |
2,236 |
1,599 |
Increase in deferred
taxes |
11,029 |
1,267 |
(8,742) |
Changes in assets and liabilities: |
|
|
|
(Increase) decrease in accounts
receivable |
(6,381) |
5,262 |
(2,948) |
(Increase) in
inventories |
(71,345) |
(25,847) |
26,180 |
(Increase) in prepaids and
other current assets |
(1,392) |
(3,004) |
792 |
(Increase) decrease in
non-current assets |
46 |
(7) |
— |
Increase (decrease) in accounts
payable |
35,159 |
(12,882) |
(20,836) |
Increase (decrease) in accrued
expenses |
(77) |
9,782 |
12,053 |
(Decrease) in deferred
rent |
(1,679) |
(2,069) |
(4,235) |
Increase (decrease) in other
noncurrent liabilities |
(288) |
496 |
(4) |
Net cash provided by operating
activities |
91,816 |
84,525 |
98,195 |
CASH FLOWS USED IN INVESTING
ACTIVITIES: |
|
|
|
Payments for capital
expenditures |
(37,531) |
(35,643) |
(29,285) |
Proceeds from maturities of
short-term investments |
393,424 |
480,089 |
595,705 |
Payments to acquire short-term
investments |
(443,887) |
(545,670) |
(429,841) |
Net cash (used in) investing
activities |
(87,994) |
(101,224) |
136,579 |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Income tax benefit from stock
compensation plans |
1,883 |
607 |
(40) |
Net proceeds from issuance of
common stock |
546 |
784 |
— |
Fractional share
payments |
— |
— |
— |
Tax payments related to equity
compensation plans |
— |
(634) |
(491) |
Net cash provided by financing
activities |
2,429 |
757 |
(531) |
Net increase (decrease) in cash and cash
equivalents |
6,251 |
(15,942) |
234,243 |
CASH AND CASH EQUIVALENTS, beginning
of year |
80,979 |
87,230 |
71,288 |
CASH AND CASH EQUIVALENTS, end of
year |
$ 87,230 |
$ 71,288 |
$ 305,531 |
|
Note: The foregoing audited
Consolidated Statements of Cash Flows are excerpts from our
Consolidated Financial Statements for each of the three years ended
February 1, 2014 and do not include the Notes, which are considered
an integral part thereof. The foregoing audited financial
information should be read in conjunction with the Company's Annual
Report on Form 10-K for the fiscal year ended February 1, 2014
which was filed with the Securities and Exchange Commission on
April 2, 2014. |
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