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Board of Directors Approves Increased Quarterly Dividend
* Q4 2006 GAAP diluted EPS was $0.95 versus $0.60 in 2005 * Fiscal 2006 GAAP diluted EPS was $2.71 versus $1.88 in 2005 * Company estimates fiscal 2007 GAAP diluted EPS in a range of $2.80 to $2.91 * Conference call at 5:00 pm eastern today
HOUSTON, March 7 /PRNewswire-FirstCall/ — The Men’s Wearhouse (NYSE: MW)
today announced its consolidated financial results for the fourth quarter and
53-week year ended February 3, 2007. The results include an extra week in
fiscal 2006 as well as other significant items, which are outlined in the
attached reconciliation table. In addition, the company’s board of directors
approved a quarterly dividend of $0.06 per share payable on July 6, 2007 to
shareholders of record on June 27, 2007. The previous quarterly dividend
amount was $0.05 per share.
George Zimmer, founder, chairman, and chief executive officer, stated,
“Fiscal 2006 represented yet another year of outstanding results for all of
our stakeholders. In November 2006, we announced entering into an agreement
to acquire After Hours Formalwear, a $250 million tuxedo rental revenue
company which is currently expected to close in the first half of fiscal 2007.
Also in November 2006, we elected to redeem and retire our $130 million
convertible bond indebtedness thereby strengthening our balance sheet. In
January 2007, we were named once again by FORTUNE(R) magazine as one of the
100 Best Companies to Work for In America. Lastly, the Board of Directors has
approved a 20% increase in the company’s quarterly cash dividend from $0.05
per share to $0.06 per share.”
FOURTH QUARTER RESULTS Fourth Quarter Sales Summary - Fiscal 2006 Total Comparable U.S. dollars, in Sales Store Sales millions Change % Change % Current Prior Current Prior Year [A] Year Year [A] Year Total Company $556.8 $497.0 + 12.0% TMW $351.5 $319.3 + 10.1% 0.0% + 5.1% K&G $130.1 $113.9 + 14.2% - 6.1% + 9.3% United States $486.7 $437.4 + 11.3% - 1.5% + 6.1% Moores (C$) $80.8 $69.6 + 16.1% + 9.8% + 0.9% [A] The company follows the retail 4-5-4 reporting calendar which includes an extra week in the fourth quarter of fiscal 2006. Total Company sales on a 13-week basis increased 5.7% from $497.0 to $525.1.
Fourth quarter 2006 operating income was $73.2 million compared to
$55.6 million last year, and net income was $52.3 million compared to
$32.7 million last year. GAAP diluted earnings per share were $0.95 for the
fourth quarter ended February 3, 2007 compared to $0.60 last year. Adjusted
diluted earnings per share for the 2006 fiscal fourth quarter was $0.81 per
share compared to adjusted diluted earnings per share of $0.67 last year. For
additional information regarding adjusted diluted earnings per share, please
see the table included below as well as the non-GAAP reconciliations provided
at the end of this release.
Fourth Quarter Highlights * Total company sales increased 12.0% for the quarter, including this year's 53rd week and 5.7% on a 13-week basis. Apparel sales, representing 90.8% of total sales, increased 10.6%. Tuxedo rental revenues, representing 2.7% of total sales, increased 26.1%. * Comparable store sales declined 1.5% for the company's United States based stores, below the initial guidance of +1% to +2%. This under plan performance stems from soft traffic levels which are reflected in soft tailored clothing sales. On a two year basis, comparable store sales increased 4.6%. * Comparable store sales increased 9.8% for the company's Canadian based stores, ahead of initial guidance in the +2% to +4% range. This above plan performance is a reflection of strong increases in both traffic levels and average ticket. On a two year basis, comparable store sales increased 10.7%. * Gross profit, as a percentage of sales, increased 331 basis points from 41.29% to 44.60%. Above plan comparable sales in Canada, generally better maintained merchandise margins in both the U.S. and Canada, and a stronger than expected 53rd week of the year more than offset the impact of under plan comparable store sales results in the U.S. * Selling, general, and administrative expenses as a percentage of sales increased 135 basis points from 30.11% to 31.46%; however this increase was lower than plan, primarily as a result of lower advertising, payroll, and employee healthcare expenses. * The effective tax rate for the quarter of 28.7% was substantially lower than the previously anticipated level of 36.0%. This was due to favorable developments on certain outstanding income tax matters. * During the quarter the company repurchased 764,600 shares for a total of $28.8 million. YEAR-TO-DATE RESULTS Sales Summary - Fiscal 2006 Total Comparable U.S. dollars, in Sales Store Sales millions Change % Change % Current Prior Current Prior Year [B] Year Year [B] Year Total Company $1,882.1 $1,724.9 + 9.1% TMW $1,216.2 $1,129.0 + 7.7% + 3.1% + 6.2% K&G $418.3 $384.2 + 8.9% - 1.8% + 16.4% United States $1,653.5 $1,531.4 + 8.0% + 1.9% + 8.4% Moores (C$) $259.3 $232.9 + 11.3% + 8.7% + 2.7% [B] The company follows the retail 4-5-4 reporting calendar which includes an extra week in fiscal 2006. Total Company sales on a 52-week basis increased 7.3% from $1,724.9 to $1,850.3.
2006 operating income was $223.9 million compared to $165.3 million last
year, and net income was $148.6 million compared to $103.9 million last year.
GAAP diluted earnings per share were $2.71 for the year ended February 3, 2007
compared to $1.88 last year. Adjusted diluted earnings per share for fiscal
2006 were $2.63 per share compared to adjusted diluted earnings per share of
$2.04 last year. For additional information regarding adjusted diluted
earnings per share, please see the table included below as well as the non-
GAAP reconciliations provided at the end of this release.
2007 GUIDANCE AND HIGHLIGHTS
For the fiscal year ending February 2, 2008, the company expects GAAP
diluted earnings per share in a range of $2.80 to $2.91 based on a +1% to +2%
same store sales increase in the U.S. and +3% to +4% in Canada, an effective
tax rate of approximately 37.55% and fully diluted shares outstanding of
54.6 million. The 2007 guidance and highlights do not give effect to the
After Hours acquisition.
Forecasted operating highlights for the full year include the following: * New store growth includes up to 15 net new K&G stores and 19 net new Men's Wearhouse stores. Total square footage growth is expected in the mid to high single digit range. * Total sales for fiscal 2007 on a comparable 52 week basis are expected to increase in a range of 5% to 7% over the prior fiscal year. * Gross margins are planned to continue to increase and stem largely from the company's ongoing strategy of increasing the penetration of its private label apparel product offerings and growth in tuxedo rentals. * Selling, general, and administrative expenses, as a percentage of sales, are expected to be flat year over year. Expense leverage is expected in advertising and payroll; however it is being offset by increases in stock based compensation and general corporate overhead expenses. * Operating income margins, on a comparable 52 week year basis, are anticipated to increase in the range of 50 to 90 basis points over the prior year.
For the first quarter of 2007, the company expects +1% to +2% same store
sales growth in the U.S. and +5% to +6% in Canada and GAAP diluted earnings
per share to be in the range of $0.63 to $0.67. In 2007, the start of the
company’s fiscal calendar is later than in the past because of last year’s
53rd week. This late start means that the seasonal peak period (fiscal month
of May) for the company’s tuxedo rentals business will shift one week earlier
in the fiscal calendar and therefore is expected to benefit the company’s
first quarter at the expense of the second quarter.
IMPACT OF SIGNIFICANT ITEMS
In order to aid investors’ understanding of the company’s results and to
improve comparability of financial information from period to period,
explanatory non-GAAP reconciliation tables are included at the end of this
press release. Summarized earnings per share information from these tables
follows:
Summary Reconciliation of GAAP diluted EPS to Adjusted diluted EPS UNAUDITED HISTORICAL RESULTS (1) Fiscal 2005 1Q 2Q 3Q 4Q YR GAAP Diluted EPS 0.41 0.43 0.44 0.60 1.88 Adjustments (2) Eddie Rodriguez Costs (3) 0.05 0.06 0.11 Stock Based Compensation (4) Reported in Earnings 0.01 0.01 0.01 0.03 53rd Week Impact (5) Foreign Earnings Repatriation (6) 0.07 0.07 Discrete Tax Items (7) (0.04) (0.02) (0.05) Net Adjustments 0.05 0.07 (0.02) 0.07 0.17 Adjusted Diluted EPS 0.46 0.50 0.41 0.67 2.04 Fiscal 2006 1Q 2Q 3Q 4Q YR GAAP Diluted EPS 0.53 0.65 0.58 0.95 2.71 Adjustments (2) Eddie Rodriguez Costs (3) Stock Based Compensation (4) Reported in Earnings 0.02 0.02 0.02 0.02 0.08 53rd Week Impact (5) (0.08) (0.08) Foreign Earnings Repatriation (6) Discrete Tax Items (7) (0.09) (0.09) Net Adjustments 0.02 0.02 0.02 (0.14) (0.08) Adjusted Diluted EPS 0.55 0.67 0.60 0.81 2.63 GUIDANCE Fiscal 2007 1Q YR GAAP Diluted EPS 0.63 - 0.67 2.80 - 2.91 Adjustments (2) Eddie Rodriguez Costs (3) Stock Based Compensation (4) Reported in Earnings 0.02 0.09 53rd Week Impact (5) Foreign Earnings Repatriation (6) Discrete Tax Items (7) Net Adjustments 0.02 0.09 Adjusted Diluted EPS 0.65 - 0.69 2.89 - 3.00 (1) Due to the effect of rounding, the sum of the per share amounts may not equal the effect of the adjustments. (2) Net of tax. (3) The company ceased operating its test of the new retail concept "Eddie Rodriguez" in the second quarter of fiscal 2005. (4) In fiscal 2005 and 2006, the company did not grant non-qualified stock options (NQO's) to key employees, opting instead to issue primarily deferred stock units (DSU's). In 2006, the company began recognizing stock option expense as it adopted FASB No. 123R. Amounts reported in earnings for 2005 include primarily DSU's and for 2006 and later periods include DSU's and NQO's. (5) Fiscal 2006 includes one additional week (for a total of 53 weeks) as the company reports its fiscal operations on a retail calendar. (6) The company incurred a one-time tax expense of $3.9 million ($0.07 per share) related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act. (7) Adjustments to tax reserves associated with favorable developments on certain outstanding income tax matters. CONFERENCE CALL AND WEBCAST INFORMATION
At 5:00 p.m. Eastern time today, company management will host a conference
call and real time web cast to review the results for the fiscal fourth
quarter and full year 2006 and provide an outlook for fiscal 2007.
To access the conference call, dial 303-262-2142. To access the live
webcast presentation, visit the Investor Relations section of the company’s
website at http://www.tmw.com . A telephonic replay will be available through
March 22nd by calling 303-590-3000 and entering the access code of 11082837#,
or a webcast archive will be available free on the website for approximately
90 days.
STORE INFORMATION February 3, 2007 January 28, 2006 Number Sq. Ft. Number Sq. Ft. of Stores (000's) of Stores (000's) Men's Wearhouse 543 3,014.8 526 2,898.4 Moores, Clothing for Men 116 722.7 116 719.8 K&G [C] 93 2,201.6 77 1,835.2 Total 752 5,939.1 719 5,453.4 [C] 73 and 52 stores, respectively, offering women's apparel.
Founded in 1973, Men’s Wearhouse is one of North America’s largest
specialty retailers of men’s apparel with 752 stores. The stores carry a full
selection of designer, brand name and private label suits, sport coats,
furnishings and accessories, including tuxedo rentals available in the Men’s
Wearhouse and Moores stores.
This press release contains forward-looking information. The forward-
looking statements are made pursuant to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements may be significantly impacted by various factors, including
unfavorable local, regional and national economic developments, disruption in
retail buying trends due to homeland security concerns, severe weather
conditions, aggressive advertising or marketing activities of competitors,
governmental actions and other factors described herein and in the company’s
annual report on Form 10-K for the year ended January 28, 2006 and subsequent
Forms 10-Q.
For additional information on Men’s Wearhouse, please visit the company’s
website at http://www.tmw.com .
CONTACT: Neill Davis, EVP & CFO, Men's Wearhouse (713) 592-7200 Ken Dennard, DRG&E (713) 529-6600 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) FOR THE THREE MONTHS ENDED February 3, 2007 AND January 28, 2006 (In thousands, except per share data) Three Months Ended % of % of 2006 Sales 2005 Sales Net sales $556,845 100.00% $496,978 100.00% Cost of goods sold, including buying, distribution and occupancy costs 308,470 55.40% 291,751 58.71% Gross margin 248,375 44.60% 205,227 41.29% Selling, general and administrative expenses 175,187 31.46% 149,658 30.11% Operating income 73,188 13.14% 55,569 11.18% Interest income (2,537) (0.46%) (1,158) (0.23%) Interest expense 2,390 0.43% 1,461 0.29% Earnings before income taxes 73,335 13.17% 55,266 11.12% Provision for income taxes 21,011 3.77% 22,532 4.53% Net earnings $52,324 9.40% $32,734 6.59% Net earnings per share: Basic $0.99 $0.62 Diluted $0.95 $0.60 Weighted average common shares outstanding: Basic 52,965 52,862 Diluted 54,843 54,166 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) FOR THE TWELVE MONTHS ENDED February 3, 2007 AND January 28, 2006 (In thousands, except per share data) Twelve Months Ended % of % of 2006 Sales 2005 Sales Net sales $1,882,064 100.00% $1,724,898 100.00% Cost of goods sold, including buying, distribution and occupancy costs 1,066,359 56.66% 1,027,763 59.58% Gross margin 815,705 43.34% 697,135 40.42% Selling, general and administrative expenses 591,767 31.44% 531,839 30.83% Operating income 223,938 11.90% 165,296 9.58% Interest income (9,786) (0.52%) (3,280) (0.19%) Interest expense 9,216 0.49% 5,888 0.34% Earnings before income taxes 224,508 11.93% 162,688 9.43% Provision for income taxes 75,933 4.03% 58,785 3.41% Net earnings $148,575 7.89% $103,903 6.02% Net earnings per share: Basic $2.80 $1.93 Diluted $2.71 $1.88 Weighted average common shares outstanding: Basic 53,111 53,753 Diluted 54,749 55,365 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) February 3, January 28, 2007 2006 ASSETS Current assets: Cash and cash equivalents $179,694 $200,226 Short-term investments --- 62,775 Inventories 448,586 416,603 Other current assets 52,549 50,008 Total current assets 680,829 729,612 Property and equipment, net 289,640 269,586 Goodwill 56,867 57,601 Other assets, net 69,616 66,475 Total assets $1,096,952 $1,123,274 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $226,138 $238,085 Long-term debt 72,967 205,251 Deferred taxes and other liabilities 44,075 52,405 Shareholders' equity 753,772 627,533 Total liabilities and equity $1,096,952 $1,123,274 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE TWELVE MONTHS ENDED February 3, 2007 AND January 28, 2006 (In thousands) Twelve Months Ended 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $148,575 $103,903 Non-cash adjustments to net earnings: Depreciation and amortization 61,387 61,874 Other 27,002 18,558 Changes in assets and liabilities (76,170) (29,774) Net cash provided by operating activities 160,794 154,561 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (72,904) (66,499) Purchases of available-for-sale investments (279,120) (106,850) Proceeds from sales of available-for-sale investments 341,895 44,075 Other (1,506) (141) Net cash used in investing activities (11,635) (129,415) CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid (10,830) --- Bank borrowings --- 71,695 Principal payments on debt (130,000) --- Proceeds from issuance of common stock 10,823 24,262 Purchase of treasury stock (40,289) (90,280) Other 2,052 (556) Net cash provided by (used in) financing activities (168,244) 5,121 Effect of exchange rate changes (1,447) 4,951 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (20,532) 35,218 Balance at beginning of period 200,226 165,008 Balance at end of period $179,694 $200,226 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (A Non-GAAP Financial Measure) (In thousands, except per share amounts) Use of Non-GAAP Financial Measures
We have provided non-GAAP adjusted earnings per share information. This
non-GAAP financial information is provided to enhance the user’s overall
understanding of the company’s current financial performance. Specifically,
we believe the non-GAAP adjusted results provide useful information to both
management and investors by excluding certain expense items that we believe
are not indicative of our core operating results. The non-GAAP financial
information should be considered in addition to, not as a substitute for or as
being superior to, operating income, cash flows, or other measures of
financial performance prepared in accordance with GAAP. The following are the
reconciliations of this non-GAAP information. Due to the effect of rounding,
the sum of the individual per share amounts may not equal the total shown.
Non-GAAP Financial Measures (in thousands, except per share information) Three Months Ended April 30, 2005 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $411,649 $(1,006) $410,643 Cost of goods sold, including buying, distribution and occupancy costs 245,866 (1,631) 244,235 Gross margin 165,783 625 166,408 Selling, general and administrative expenses 128,909 (4,036) 124,873 Operating Income 36,874 4,661 41,535 Interest income (794) --- (794) Interest expense 1,487 --- 1,487 Earnings before income taxes 36,181 4,661 40,842 Provision for income taxes 13,477 1,736 15,213 Net earnings $22,704 $2,925 $25,629 Net earnings per diluted share $0.41 $0.05 $0.46 Weighted average diluted common shares outstanding 55,834 55,834 (1) The net earnings adjustments are as follows: a. $2.886 million, net of tax, or $.05 diluted earnings per share in net losses from the Eddie Rodriguez stores and b. $39 thousand, net of tax, related to stock based compensation. Non-GAAP Financial Measures (continued) Three Months Ended June 30, 2005 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $423,576 $(785) $422,791 Cost of goods sold, including buying, distribution and occupancy costs 255,280 (3,485) 251,795 Gross margin 168,296 2,700 170,996 Selling, general and administrative expenses 129,892 (3,495) 126,397 Operating Income 38,404 6,195 44,599 Interest income (771) --- (771) Interest expense 1,512 --- 1,512 Earnings before income taxes 37,663 6,195 43,858 Provision for income taxes 13,277 2,183 15,460 Net earnings $24,386 $4,012 $28,398 Net earnings per diluted share $0.43 $0.07 $0.50 Weighted average diluted common shares outstanding 56,490 56,490 Three Months Ended October 29, 2005 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $392,695 $--- $392,695 Cost of goods sold, including buying, distribution and occupancy costs 234,866 --- 234,866 Gross margin 157,829 --- 157,829 Selling, general and administrative expenses 123,380 (928) 122,452 Operating Income 34,449 928 35,377 Interest income (557) --- (557) Interest expense 1,428 --- 1,428 Earnings before income taxes 33,578 928 34,506 Provision for income taxes 9,499 2,278 11,777 Net earnings $24,079 $(1,350) $22,729 Net earnings per diluted share $0.44 $(0.02) $0.41 Weighted average diluted common shares outstanding 54,971 54,971 (1) The net earnings adjustments are as follows: a. $3.379 million, net of tax, or $0.06 diluted earnings per share in net losses from the Eddie Rodriguez stores and b. $633 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation. (2) The net earnings adjustments are as follows: a. $666 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation and b. ($2.016) million or ($0.04) diluted earnings per share in discrete tax items. Non-GAAP Financial Measures (continued) Three Months Ended January 28, 2006 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $496,978 $--- $496,978 Cost of goods sold, including buying, distribution and occupancy costs 291,751 --- 291,751 Gross margin 205,227 --- 205,227 Selling, general and administrative expenses 149,658 (939) 148,719 Operating Income 55,569 939 56,508 Interest income (1,158) --- (1,158) Interest expense 1,461 --- 1,461 Earnings before income taxes 55,266 939 56,205 Provision for income taxes 22,532 (2,631) 19,901 Net earnings $32,734 $3,570 $36,304 Net earnings per diluted share $0.60 $0.07 $0.67 Weighted average diluted common shares outstanding 54,166 54,166 Twelve Months Ended January 28, 2006 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $1,724,898 $(1,791) $1,723,107 Cost of goods sold, including buying, distribution and occupancy costs 1,027,763 (5,116) 1,022,647 Gross margin 697,135 3,325 700,460 Selling, general and administrative expenses 531,839 (9,398) 522,441 Operating Income 165,296 12,723 178,019 Interest income (3,280) --- (3,280) Interest expense 5,888 --- 5,888 Earnings before income taxes 162,688 12,723 175,411 Provision for income taxes 58,785 3,566 62,351 Net earnings $103,903 $9,157 $113,060 Net earnings per diluted share $1.88 $0.17 $2.04 Weighted average diluted common shares outstanding 55,365 55,365 (1) The net earnings adjustments are as follows: a. $556 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation b. ($898) thousand or ($0.02) diluted earnings per share in discrete tax items and c. $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense. (2) The net earnings adjustments are as follows: a. $6.265 million, net of tax, or $0.11 diluted earnings per share in net losses from the Eddie Rodriguez stores b. $1.894 million, net of tax, or $0.03 diluted earnings per share related to stock based compensation c. ($2.914) million or ($0.05) diluted earnings per share in discrete tax items and d. $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense. Non-GAAP Financial Measures (continued) Three Months Ended April 29, 2006 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $434,564 $--- $434,564 Cost of goods sold, including buying, distribution and occupancy costs 251,735 (143) 251,592 Gross margin 182,829 143 182,972 Selling, general and administrative expenses 136,441 (1,485) 134,956 Operating Income 46,388 1,628 48,016 Interest income (1,995) --- (1,995) Interest expense 2,191 --- 2,191 Earnings before income taxes 46,192 1,628 47,820 Provision for income taxes 17,336 611 17,947 Net earnings $28,856 $1,017 $29,873 Net earnings per diluted share $0.53 $0.02 $0.55 Weighted average diluted common shares outstanding 54,719 54,719 (1) The adjustments are related to stock based compensation. Three Months Ended July 29, 2006 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $460,587 $--- $460,587 Cost of goods sold, including buying, distribution and occupancy costs 261,464 (178) 261,286 Gross margin 199,123 178 199,301 Selling, general and administrative expenses 143,529 (1,542) 141,987 Operating Income 55,594 1,720 57,314 Interest income (2,793) --- (2,793) Interest expense 2,289 --- 2,289 Earnings before income taxes 56,098 1,720 57,818 Provision for income taxes 20,477 628 21,105 Net earnings $35,621 $1,092 $36,713 Net earnings per diluted share $0.65 $0.02 $0.67 Weighted average diluted common shares outstanding 54,524 54,524 (2) The adjustments are related to stock based compensation. Non-GAAP Financial Measures (continued) Three Months Ended October 28, 2006 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $430,068 $--- $430,068 Cost of goods sold, including buying, distribution and occupancy costs 244,690 (178) 244,512 Gross margin 185,378 178 185,556 Selling, general and administrative expenses 136,610 (1,613) 134,997 Operating Income 48,768 1,791 50,559 Interest income (2,461) --- (2,461) Interest expense 2,346 --- 2,346 Earnings before income taxes 48,883 1,791 50,674 Provision for income taxes 17,109 627 17,736 Net earnings $31,774 $1,164 $32,938 Net earnings per diluted share $0.58 $0.02 $0.60 Weighted average diluted common shares outstanding 54,903 54,903 (1) The adjustments are related to stock based compensation. Three Months Ended February 3, 2007 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $556,845 $(31,742) $525,103 Cost of goods sold, including buying, distribution and occupancy costs 308,470 (14,560) 293,910 Gross margin 248,375 (17,182) 231,193 Selling, general and administrative expenses 175,187 (12,365) 162,822 Operating Income 73,188 (4,817) 68,371 Interest income (2,537) 152 (2,385) Interest expense 2,390 --- 2,390 Earnings before income taxes 73,335 (4,969) 68,366 Provision for income taxes 21,011 2,885 23,896 Net earnings $52,324 $(7,854) $44,470 Net earnings per diluted share $0.95 $(0.14) $0.81 Weighted average diluted common shares outstanding 54,843 54,843 (2) The net earnings adjustments are as follows: a. $1.303 million, net of tax, or $0.02 diluted earnings per share related to stock based compensation b. ($4.473) million or ($0.08) diluted earnings per share related to the 53rd week and c. ($4.684) million or ($0.09) diluted earnings per share in discrete tax items. Non-GAAP Financial Measures (continued) Twelve Months Ended February 3, 2007 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $1,882,064 $(31,742) $1,850,322 Cost of goods sold, including buying, distribution and occupancy costs 1,066,359 (15,059) 1,051,300 Gross margin 815,705 (16,683) 799,022 Selling, general and administrative expenses 591,767 (17,005) 574,762 Operating Income 223,938 322 224,260 Interest income (9,786) 152 (9,634) Interest expense 9,216 --- 9,216 Earnings before income taxes 224,508 170 224,678 Provision for income taxes 75,933 4,751 80,684 Net earnings $148,575 $(4,581) $143,994 Net earnings per diluted share $2.71 $(0.08) $2.63 Weighted average diluted common shares outstanding 54,749 54,749 (1) The net earnings adjustments are as follows: a. $4.576 million, net of tax, or $0.08 diluted earnings per share related to stock based compensation b. ($4.473) million or ($0.08) diluted earnings per share related to the 53rd week and c. ($4.684) million or ($0.09) diluted earnings per share in discrete tax items.
SOURCE The Men’s Wearhouse, Inc.
Released March 7, 2007