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