JoS. A. Bank Clothiers Reports Fiscal Year 2012 Results; Sales Up, Profits Still Good, But Not Up to Normal Levels

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| Source: JoS. A. Bank Clothiers, Inc.

HAMPSTEAD, Md., April 3, 2013 (GLOBE NEWSWIRE) -- JoS. A. Bank Clothiers, Inc. (Nasdaq:JOSB) announces today the results for its fiscal year ended February 2, 2013 ("fiscal year 2012").

Net sales reached a record of $1,049.3 million in fiscal year 2012, representing a 7.1% gain as compared with net sales of $979.9 million in fiscal year 2011. Comparable store sales decreased 0.5% during fiscal year 2012, while Direct Marketing sales increased 22.7%. Combined comparable store and Internet sales in fiscal year 2012 increased 2.0% when compared to fiscal year 2011.

Net income for fiscal year 2012 was $79.7 million, as compared with net income of $97.5 million for the fiscal year ended January 28, 2012 ("fiscal year 2011"), a decrease of 18.3%. The Company previously announced that net income for fiscal year 2012 was expected to be approximately 20% lower than net income for fiscal year 2011. Earnings per share for fiscal year 2012 were $2.84 as compared with earnings per share of $3.49 for fiscal year 2011.

Commenting on the Company's results, R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. stated: "Although we did not achieve an increase over the record earnings of fiscal year 2011, we were still very profitable with net income of 7.6% of net sales in fiscal year 2012. For the first time in our history, we exceeded the $1 billion sales milestone in fiscal year 2012 and our Direct Marketing business continued to perform well, with double-digit sales growth. The Company continues to maintain very solid cash flows and a strong balance sheet.  Additionally, we opened a total of 46 new stores in fiscal year 2012, including our 600th store."

"Total company sales for the year were up 7.1%," continued Mr. Black, "but not enough to offset higher marketing expenses and lower gross margin. We are disappointed that we were not able to drive the sales gains we expected in our comparable stores. For the most recent fourth quarter, sales started out slowly in November, partly due to Hurricane Sandy and the distractions of the national election. Going into the critical holiday selling season, we believed we had a strong marketing and promotional strategy for the period. However, many of the promotional items and a large part of our holiday assortment were items that sell in cold weather and the weather was unseasonably warm. During this period, our customers responded well to our suit promotions, but our promotions on other products such as sweaters, outerwear, hats, gloves, scarves and jackets were not successful." 

"In 2013, once the cold weather clearance period is complete, one of our goals will be to return to previous levels of gross margin rates and advertising productivity. New and more focused casual assortments and additional slim-fit suit inventories are arriving this spring. During the first eight weeks of fiscal 2013, sales were up as compared to last year. However, we remain cautious about the first quarter of 2013, especially since we have not fully annualized the calendar shift for Easter and the larger volume sales periods are still ahead of us," stated Mr. Black.

A conference call to discuss the fiscal year 2012 earnings will be held Thursday, April 4, 2013 at 11:00 a.m. Eastern Time (ET). To join the call please dial (USA) 877-209-9922 or (International) 612-332-0932 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 4, 2013 until April 11, 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 286177. 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 603 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 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, but not limited to, those described under "Risk Factors" in our Annual Report on Form 10-K for the year ended February 2, 2013. 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.
CONSOLIDATED BALANCE SHEETS
AS OF JANUARY 28, 2012 AND FEBRUARY 2, 2013 
     
  January 28, 2012 February 2, 2013
  (In thousands, except share information)
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents   $ 87,230  $ 71,288
Short-term investments  240,252 305,833
Accounts receivable, net  15,906 10,644
Inventories  304,655 330,502
Prepaid expenses and other current assets  20,886 23,922
Total current assets  668,929 742,189
NONCURRENT ASSETS:    
Property, plant and equipment, net  144,392 152,360
Other noncurrent assets  291 298
Total assets   $ 813,612  $ 894,847
LIABILITIES AND STOCKHOLDERS' EQUITY    
CURRENT LIABILITIES:    
Accounts payable   $ 66,664  $ 53,782
Accrued expenses  92,937 104,639
Deferred tax liability — current  8,479 11,928
Total current liabilities  168,080 170,349
NONCURRENT LIABILITIES:    
Deferred rent  47,600 45,531
Deferred tax liability — noncurrent  11,973 9,791
Other noncurrent liabilities  1,025 1,613
Total liabilities  228,678 227,284
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  277 279
Additional paid-in capital  91,766 94,757
Retained earnings  493,022 572,718
Accumulated other comprehensive income (loss)  (131) (191)
Total stockholders' equity  584,934 667,563
Total liabilities and stockholders' equity   $ 813,612  $ 894,847
     
Note: The foregoing audited Consolidated Balance Sheets are excerpts from our Consolidated Financial Statements (as of January 28, 2012 and as of February 2, 2013) 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 2, 2013 which was filed with the Securities and Exchange Commission on April 3, 2013.
 
JOS. A. BANK CLOTHIERS, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED JANUARY 29, 2011, JANUARY 28, 2012 AND FEBRUARY 2, 2013 
       
  Fiscal Year
  2010 2011 2012
  (In thousands, except per share information)
NET SALES  $ 858,128  $ 979,852 $ 1,049,313
Cost of goods sold  320,585 371,577 437,551
GROSS PROFIT 537,543 608,275 611,762
OPERATING EXPENSES:      
Sales and marketing, including occupancy costs  326,464 372,268 409,150
General and administrative  69,472 76,600 74,172
Total operating expenses  395,936 448,868 483,322
OPERATING INCOME 141,607 159,407 128,440
OTHER INCOME (EXPENSE):      
Interest income  589 347 429
Interest expense  (136) (312) (26)
Total other income (expense)  453 35 403
Income before provision for income taxes  142,060 159,442 128,843
Provision for income taxes  56,261 61,951 49,147
NET INCOME  $ 85,799  $ 97,491 $ 79,696
PER SHARE INFORMATION      
Earnings per share:      
Basic  $ 3.11  $ 3.51 $ 2.86
Diluted  $ 3.08  $ 3.49 $ 2.84
Weighted average shares outstanding:      
Basic  27,553 27,757 27,901
Diluted  27,851 27,961 28,013
       
Note: The foregoing audited Consolidated Statements of Income are excerpts from our Consolidated Financial Statements for each of the three years ended February 2, 2013 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 2, 2013 which was filed with the Securities and Exchange Commission on April 3, 2013.
 
JOS. A. BANK CLOTHIERS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JANUARY 29, 2011, JANUARY 28, 2012 AND FEBRUARY 2, 2013 
       
  Fiscal Year
  2010 2011 2012
  (In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income   $ 85,799  $ 97,491  $ 79,696
Adjustments to reconcile net income to net cash provided by operating activities:       
Depreciation and amortization  24,479 26,101 28,521
Loss on disposals of property, plant and equipment  357 311 269
Asset impairment charges  1,215 294 805
Non-cash equity compensation  1,252 2,547 2,236
Increase in deferred taxes  2,751 11,029 1,267
Changes in assets and liabilities:       
(Increase) decrease in accounts receivable  (3,665) (6,381) 5,262
(Increase) in inventories  (14,989) (71,345) (25,847)
(Increase) in prepaids and other current assets  (3,459) (1,392) (3,004)
(Increase) decrease in non-current assets  83 46 (7)
Increase (decrease) in accounts payable  13,280 35,159 (12,882)
Increase (decrease) in accrued expenses  1,738 (77) 9,782
(Decrease) in deferred rent  (2,574) (1,679) (2,069)
Increase (decrease) in other noncurrent liabilities  (28) (288) 496
Net cash provided by operating activities  106,239 91,816 84,525
CASH FLOWS USED IN INVESTING ACTIVITIES:      
Payments for capital expenditures  (29,352) (37,531) (35,643)
Proceeds from maturities of short-term investments  169,736 393,424 480,089
Payments to acquire short-term investments  (189,789) (443,887) (545,670)
Net cash (used in) investing activities  (49,405) (87,994) (101,224)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Income tax benefit from stock compensation plans  1,300 1,883 607
Net proceeds from issuance of common stock  1,013 546 784
Fractional share payments  (21)
 Tax payments related to equity compensation plans  (634)
Net cash provided by financing activities  2,292 2,429 757
Net increase (decrease) in cash and cash equivalents  59,126 6,251 (15,942)
CASH AND CASH EQUIVALENTS, beginning of year 21,853 80,979 87,230
CASH AND CASH EQUIVALENTS, end of year  $ 80,979  $ 87,230  $ 71,288
       
Note: The foregoing audited Consolidated Statements of Cash Flows are excerpts from our Consolidated Financial Statements for each of the three years ended February 2, 2013 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 2, 2013 which was filed with the Securities and Exchange Commission on April 3, 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