Press Releases

Investors

Men's Wearhouse Reports Fiscal 2014 Second Quarter And Six Month Results

- Q2 2014 GAAP diluted earnings per share were $0.25 compared to $0.85 Q2 2013 GAAP diluted earnings per share primarily due to acquisition and integration costs

- Q2 2014 adjusted diluted earnings per share were $1.10 compared to $1.01 Q2 2013 adjusted diluted earnings per share (see attached non-GAAP reconciliations)

- Men's Wearhouse second quarter comparable sales increased 4.4%

- Jos. A. Bank second quarter comparable sales increased 1.0%

- Moores second quarter comparable sales increased 10.2%

- Conference call scheduled for Thursday, September 11th at 9:00 a.m. Eastern time

FREMONT, Calif., Sept. 10, 2014 /PRNewswire/ -- The Men's Wearhouse (NYSE: MW) today announced consolidated financial results for the fiscal second quarter and six months ended August 2, 2014. 

GAAP diluted EPS for fiscal second quarter 2014 was $0.25 and adjusted EPS was $1.10 excluding non-operating items(1).  Results for Jos. A. Bank are included in our financial statements beginning June 18, 2014, the date of the closing of the acquisition.

Doug Ewert, Men's Wearhouse president and chief executive officer, commented, "During the second quarter, we closed the Jos. A. Bank acquisition and we are pleased with the progress we are making on the integration.

"Second quarter adjusted earnings per share of $1.10 were driven by strong performances at Men's Wearhouse, Moores and K&G, posting comparable sales increases of 4.4%, 10.2% and 5.6%, respectively.  Additional highlights include excellent results in tuxedo rental, with a U.S. comparable sales increase of 9.1%, and from our Joseph Abboud roll out, which will be complete in the coming weeks.

"While we are very early in the Jos. A. Bank integration process, we look forward to communicating our progress and continue to expect between $100 million to $150 million in synergies.  Subsequent to the end of the second quarter, we secured the early termination of the Jim's Formal Wear contract to supply tuxedo rental inventory to Jos. A. Bank.  We will begin leveraging our tuxedo rental inventory and logistics to serve the Jos. A. Bank rental customers for the 2015 wedding season," concluded Ewert.

FISCAL SECOND QUARTER SALES REVIEW

The tables that follow are a summary of net sales for fiscal 2014 second quarter and fiscal six months ended August 2, 2014.  The dollars shown are U.S. dollars in millions and due to rounded numbers may not sum.  The Moores comparable sales change is based on the Canadian dollar.  The comparable sales shown below for Jos. A. Bank are a comparison to the full periods, not a comparison of the acquisition period since June 18, 2014. Comparable sales exclude the net sales of a store for any month of one period if the store was not open throughout the same month of the prior period and include e-commerce net sales. 


Second Quarter Net Sales Summary – Fiscal 2014



Net Sales

Comparable Sales Change


Net Sales Change

Current Quarter

Current Quarter

Prior Year Quarter

Total Retail Segment

24.1%

$143.0

$736.4



       Men's Wearhouse

5.6%

$23.7

$450.3

4.4%

0.7%

       Jos. A. Bank

n/a

$113.7

$113.7

1.0%

(15.5%)

       Moores

4.7%

$3.5

$78.1

10.2%

(4.9%)

       K&G

1.6%

$1.4

$86.2

5.6%

(3.0%)

       MW Cleaners

9.0%

$0.7

$8.1









Corporate Apparel Segment

23.9%

$12.8

$66.7









Total Company

24.1%

$155.8

$803.1











Year-To-Date Net Sales Summary – Fiscal 2014



Net Sales

Comparable Sales Change


Net Sales Change

Current Year

Current Year

Prior Year

Total Retail Segment

13.6%

$156.5

$1,310.1



       Men's Wearhouse

5.2%

$42.9

$871.3

3.6%

1.2%

       Jos. A. Bank

n/a

$113.7

$113.7

4.4%

(11.9%)

       Moores

1.8%

$2.3

$130.6

8.4%

(5.8%)

       K&G

(2.0%)

($3.6)

$178.6

2.0%

(5.0%)

       MW Cleaners

8.0%

$1.2

$15.9









Corporate Apparel Segment

12.1%

$13.3

$123.5









Total Company

13.4%

$169.8

$1,433.6










Net sales at our largest brand, Men's Wearhouse stores, which represented 56% of total second quarter sales, were up 5.6% from last year's second quarter and comparable sales increased 4.4%.  On a comparable basis an increase in average transactions per store more than offset a decrease in clothing product average unit retails (or the net selling price per unit). The higher margin tuxedo rental revenues comparable sales increased 9.1% in the second quarter of 2014. 

Jos. A. Bank was 14% of the Company's total second quarter sales reflecting sales since June 18, 2014, the acquisition date.  Comparable sales for the full second quarter increased 1.0% with increases in units sold per transaction which offset decreases in clothing product average unit retails and transactions per store.   Moores, our Canadian retail brand, was 10% of the total second quarter sales and had a comparable sales increase of 10.2% due to increases in units sold per transaction, average transactions per store and clothing product average unit retails.  Net sales change for Moores only increased 4.7% due to an unfavorable change in the currency translation rate.   K&G was 11% of the Company's total second quarter sales with a comparable sales increase of 5.6% due to increases in average transactions per store and units sold per transaction which more than offset a decrease in average unit retails.  The Corporate Apparel segment, which represented 8% of total second quarter sales, had a sales increase of 23.9%.

FISCAL SECOND QUARTER CONSOLIDATED RESULTS REVIEW

Sales
Total net sales increased 24.1% or $155.8 million to $803.1 million from $647.3 million. 

Retail segment sales for the quarter increased by 24.1% or $143.0 million due to $113.7 million in sales at Jos. A. Bank since the closing of the acquisition and an increase in comparable sales at all other retail brands. 

Corporate apparel sales increased by 23.9% or $12.8 million.

Gross Margin
Total GAAP gross margin was $358.5 million.  Adjusted consolidated gross margin of $365.3 million increased $56.5 million or 18.3% compared to the prior year quarter.  The total adjusted gross margin rate decreased 222 basis points primarily due to lower retail margin related to the Jos. A. Bank acquisition.

Adjusted retail segment gross margin increased $53.7 million or 18.4%.  The adjusted retail segment gross margin rate decreased 224 basis points including Jos. A. Bank and increased 10 basis points excluding Jos. A. Bank. 

Corporate apparel gross margin increased $2.8 million or 16.2% yet decreased 197 basis points.

SG&A
GAAP SG&A expenses increased $83.3 million to $315.8 million, an increase of 35.8% or 341 basis points.  Adjusted SG&A expenses were 160 basis points favorable to the prior year.  On an absolute dollar basis adjusted SG&A increased by $42.4 million or 18.5% primarily due to the addition of Jos. A. Bank SG&A and an increase in advertising expense primarily related to the rollout of Joseph Abboud. 

Operating Income
GAAP operating income was $42.7 million compared to GAAP operating income of $66.8 million last year.  Adjusted operating income was $93.3 million, an increase of $14.1 million or 17.8% over the prior year adjusted operating income of $79.2 million.

Interest and Taxes
Net interest expense for the second quarter was $13.1 million, impacting adjusted diluted EPS by $0.18. The effective tax rate for the second quarter was 55.0%.  Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 33.9%.

Net Earnings
GAAP net earnings were $12.3 million compared to GAAP net earnings of $42.9 million last year.  Adjusted net earnings were $52.9 million, or $1.10 adjusted earnings per share compared to adjusted net earnings of $51.0 million, or $1.01 adjusted diluted earnings per share last year.

Balance Sheet
In connection with the acquisition of Jos. A. Bank, debt at the end of the second quarter was $1.7 billion.  Inventories increased $444.7 million to $1,044.5 million from $599.8 million.  Approximately $425 million is due to the Jos. A. Bank acquisition and inventory at the Joseph Abboud factory.  Additionally, approximately $10 million of the increase was related to an inventory build for our corporate apparel business to service existing customers and the remaining increase was primarily driven by new store openings at Men's Wearhouse.

FISCAL SIX MONTH CONSOLIDATED RESULTS REVIEW

Sales
Total net sales increased 13.4% or $169.8 million to $1,433.6 million from $1,263.8 million. 

Year-to-date retail segment sales increased by 13.6% or $156.5 million due to $113.7 million in sales at Jos. A. Bank since the closing of the acquisition and an increase in comparable sales at all other retail brands. 

Corporate apparel sales increased by 12.1%, or $13.3 million.

Gross Margin
Total GAAP gross margin was $641.9 million.  Adjusted consolidated gross margin of $648.7 million increased $62.0 million or 10.6% compared to the prior year quarter.  The total adjusted gross margin rate decreased 118 basis points primarily due to lower retail margin related to the Jos. A. Bank acquisition.

Adjusted retail segment gross margin increased $59.5 million or 10.8%.  The adjusted retail segment gross margin rate decreased 117 basis points including Jos. A. Bank and increased 3 basis points excluding Jos. A. Bank. 

Corporate apparel gross margin increased $2.5 million or 7.1% yet decreased 139 basis points.

SG&A
GAAP SG&A expenses increased $114.0 million to $571.9 million, an increase of 24.9% or 367 basis points.  Adjusted SG&A expenses were 101 basis points favorable to the prior year.  On an absolute dollar basis adjusted SG&A increased by $46.7 million or 10.3% primarily due to the addition of Jos. A. Bank SG&A and an increase in advertising expense. 

Operating Income
GAAP operating income was $70.0 million compared to GAAP operating income of $119.3 million last year.  Adjusted operating income was $147.0 million, an increase of $15.3 million or 11.6% over the prior year adjusted operating income of $131.7 million.

Interest and Taxes
Net interest expense for the six months was $14.1 million, impacting adjusted diluted EPS by $0.19.

The effective tax rate for the six months was 46.3%.  Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 35.2%.

Net Earnings
GAAP net earnings were $28.7 million compared to GAAP net earnings of $76.0 million last year.  Adjusted net earnings were $86.0 million, or $1.78 adjusted earnings per share compared to adjusted net earnings of $84.1 million, or $1.66 adjusted diluted earnings per share last year.

CONFERENCE CALL AND WEBCAST INFORMATION

At 9:00 a.m. Eastern time on Thursday, September 11, 2014, Company management will host a conference call and real time webcast to review fiscal 2014 second quarter and six month results.

To access the conference call, dial 719-457-2604.  To access the live webcast presentation, visit the Investor Relations section of the Company's website at http://ir.menswearhouse.com. A telephonic replay will be available through September 18, 2014 by calling 719-457-0820 and entering the access code of 7619322#, or a webcast archive will be available free on the website for approximately 90 days.

STORE INFORMATION


August 2, 2014

August 3, 2013

 February 1, 2014


Number of
Stores

Sq. Ft.

(000's)

Number of
Stores

Sq. Ft.

(000's)

Number of
Stores

Sq. Ft.

(000's)








Men's Wearhouse

679

3,867.0

652

3,722.6

661

3,774.3








Jos. A. Bank (a)

629

2,861.8

-

-

-

-








Men's Wearhouse and Tux

233

322.2

269

370.1

248

344.0








Moores, Clothing for Men

121

769.1

120

764.4

121

769.3








K&G (b)

94

2,228.8

96

2,271.7

94

2,228.8








Total

1,756

10,048.9

1,137

7,128.8

1,124

7,116.4








(a)  Excludes 15 franchise stores.

(b)  85, 88 and 85 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 1,756 stores.  The Men's Wearhouse, Jos. A. Bank, Moores and K&G stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and non-exclusive merchandise brands and Men's Wearhouse and Tux stores carry a limited selection.  Most K&G stores carry a full selection of women's apparel.  Tuxedo rentals are available in the Men's Wearhouse, Jos. A. Bank, Moores and Men's Wearhouse and Tux stores.  Additionally, Men's Wearhouse operates a global corporate apparel and workwear group consisting of Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.    

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.  Forward-looking statements are not guarantees of future performance and a variety of factors could cause actual results to differ materially from the anticipated or expected results expressed in or suggested by these forward-looking statements.  These forward-looking statements may be significantly impacted by various factors, including, but not limited to: actions by governmental entities, domestic and international economic activity and inflation, success, or lack thereof, in executing our internal operating plans and new store and new market expansion plans, including successful integration of acquisitions, performance issues with key suppliers, disruption in buying trends due to homeland security concerns, severe weather, foreign currency fluctuations, government export and import policies, aggressive advertising or marketing activities of competitors; and legal proceedings. Future results will also be dependent upon our ability to continue to identify and complete successful expansions and penetrations into existing and new markets and our ability to integrate such expansions with our existing operations.

These forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. The following factors, among others, could cause actual results to differ materially from those expressed or implied in the forward-looking statements: (1) the possibility that the expected benefits from the Jos. A. Bank transaction will not be realized within the anticipated time period, (2) the risks related to the costs and difficulties related to the integration of Jos. A. Bank's business and operations with Men's Wearhouse's business and operations, (3) the inability to obtain, or delays in obtaining, cost savings and synergies from the transaction, (4) unexpected costs, charges or expenses resulting from the transaction, (5) litigation relating to the transaction, (6) the inability to retain key personnel and (7) the possible disruption that may be caused by the transaction to the business and operations of Men's Wearhouse and its relationships with customers, employees and other third parties.

The forward-looking statements in this press release speak only as of the date hereof. Except for the ongoing obligations of Men's Wearhouse to disclose material information under the federal securities laws, Men's Wearhouse undertakes no obligation to revise or update publicly any forward-looking statement, except as required by law.  Other factors that may impact the forward-looking statements are described in Men's Wearhouse's annual report on Form 10-K for the fiscal year ended February 1, 2014 and quarterly reports on Form 10-Q.  For additional information on Men's Wearhouse, please visit the Company's websites at www.menswearhouse.com, www.josbank.com, www.mooresclothing.com, www.kgstores.com, www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.

Contact:
Kelly Dilts, SVP, Finance & IR
(281) 776-7239

Ken Dennard
Dennard ▪ Lascar Associates
(713) 529-6600

(1) Adjusted EPS is non-GAAP financial information provided to enhance the user's overall understanding of the Company's current financial performance. Reconciliations of adjusted financial information to GAAP results are included in the tables at the end of this release.

 


THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)


For the Three Months Ended August 2, 2014 and August 3, 2013

(In thousands, except per share data)






Three Months Ended


Variance



% of


% of




Basis


2014

Sales

2013

Sales


Dollar

%

Points










Net sales:









          Retail clothing product

$530,728

66.09%

$408,683

63.14%


$122,045

29.86%

2.95

          Tuxedo rental services

161,096

20.06%

147,701

22.82%


13,395

9.07%

(2.76)

          Alteration and other services   

44,598

5.55%

37,056

5.73%


7,542

20.35%

(0.17)

               Total retail sales

736,422

91.70%

593,440

91.69%


142,982

24.09%

0.01

               Corporate apparel clothing product sales

66,656

8.30%

53,815

8.31%


12,841

23.86%

(0.01)

                    Total net sales

803,078

100.00%

647,255

100.00%


155,823

24.07%

0.00










                   Total cost of sales

444,536

55.35%

338,461

52.29%


106,075

31.34%

3.06










Gross margin (a):









        Retail clothing product

287,374

54.15%

231,105

56.55%


56,269

24.35%

(2.40)

        Tuxedo rental services

134,868

83.72%

125,123

84.71%


9,745

7.79%

(0.99)

        Alteration and other services

11,699

26.23%

8,130

21.94%


3,569

43.90%

4.29

        Occupancy costs

(95,423)

(12.96%)

(72,791)

(12.27%)


(22,632)

(31.09%)

(0.69)

               Total retail gross margin

338,518

45.97%

291,567

49.13%


46,951

16.10%

(3.16)

               Corporate apparel clothing product margin

20,024

30.04%

17,227

32.01%


2,797

16.24%

(1.97)

                   Total gross margin

358,542

44.65%

308,794

47.71%


49,748

16.11%

(3.06)










Selling, general and administrative expenses

315,838

39.33%

232,505

35.92%


83,333

35.84%

3.41

Goodwill impairment charge

-

0.00%

9,501

1.47%


(9,501)

NM

(1.47)










Operating income

42,704

5.32%

66,788

10.32%


(24,084)

(36.06%)

(5.00)










Net interest

(13,074)

(1.63%)

(359)

(0.06%)


(12,715)

3541.78%

(1.57)

Loss on extinguishment of debt

(2,158)

(0.27%)

-

0.00%


(2,158)

NM

(0.27)










Earnings before income taxes

27,472

3.42%

66,429

10.26%


(38,957)

(58.64%)

(6.84)










Provision for income taxes

15,104

1.88%

23,451

3.62%


(8,347)

(35.59%)

(1.74)










Net earnings including non-controlling interest

12,368

1.54%

42,978

6.64%


(30,610)

(71.22%)

(5.10)










Net earnings attributable to non-controlling interest

(112)

(0.01%)

(35)

(0.01%)


(77)

(220.00%)

(0.01)










Net earnings attributable to common shareholders

$   12,256

1.53%

$  42,943

6.63%


$(30,687)

(71.46%)

(5.11)










Net earnings per diluted common share attributable to common shareholders

$       0.25


$      0.85















Weighted-average diluted common shares outstanding:

48,143


50,133















(a)  Gross margin percent of sales is calculated as a percentage of related sales.

 

 

 


THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)


For the Six Months Ended August 2, 2014 and August 3, 2013

(In thousands, except per share data)






Six Months Ended


Variance



% of


% of




Basis


2014

Sales

2013

Sales


Dollar

%

Points










Net sales:









          Retail clothing product

$ 963,752

67.23%

$832,420

65.87%


$ 131,332

15.78%

1.36

          Tuxedo rental services

262,759

18.33%

246,183

19.48%


16,576

6.73%

(1.15)

          Alteration and other services   

83,560

5.83%

75,018

5.94%


8,542

11.39%

(0.11)

               Total retail sales

1,310,071

91.39%

1,153,621

91.28%


156,450

13.56%

0.10

               Corporate apparel clothing product sales

123,481

8.61%

110,170

8.72%


13,311

12.08%

(0.10)

                    Total net sales

1,433,552

100.00%

1,263,791

100.00%


169,761

13.43%

0.00










                    Total cost of sales

791,646

55.22%

677,077

53.58%


114,569

16.92%

1.65










Gross margin (a):









        Retail clothing product

528,921

54.88%

469,359

56.38%


59,562

12.69%

(1.50)

        Tuxedo rental services

221,214

84.19%

209,107

84.94%


12,107

5.79%

(0.75)

        Alteration and other services

22,939

27.45%

17,674

23.56%


5,265

29.79%

3.89

        Occupancy costs

(168,270)

(12.84%)

(144,065)

(12.49%)


(24,205)

(16.80%)

(0.36)

               Total retail gross margin

604,804

46.17%

552,075

47.86%


52,729

9.55%

(1.69)

               Corporate apparel clothing product margin

37,102

30.05%

34,639

31.44%


2,463

7.11%

(1.39)

                   Total gross margin

641,906

44.78%

586,714

46.42%


55,192

9.41%

(1.65)










Selling, general and administrative expenses

571,921

39.90%

457,872

36.23%


114,049

24.91%

3.67

Goodwill impairment charge

-

0.00%

9,501

0.75%


(9,501)

NM

(0.75)










Operating income

69,985

4.88%

119,341

9.44%


(49,356)

(41.36%)

(4.56)










Net interest

(14,148)

(0.99%)

(582)

(0.05%)


(13,566)

2330.93%

(0.94)

Loss on extinguishment of debt

(2,158)

(0.15%)

-

0.00%


(2,158)

NM

(0.15)










Earnings before income taxes

53,679

3.74%

118,759

9.40%


(65,080)

(54.80%)

(5.65)










Provision for income taxes

24,853

1.73%

42,825

3.39%


(17,972)

(41.97%)

(1.65)










Net earnings including non-controlling interest

28,826

2.01%

75,934

6.01%


(47,108)

(62.04%)

(4.00)










Net (earnings) loss attributable to non-controlling interest

(84)

(0.01%)

100

0.01%


(184)

NM

(0.01)










Net earnings attributable to common shareholders

$   28,742

2.00%

$  76,034

6.02%


$ (47,292)

(62.20%)

(4.01)










Net earnings per diluted common share attributable to common shareholders

$       0.60


$      1.50















Weighted-average diluted common shares outstanding:

48,059


50,460















(a)  Gross margin percent of sales is calculated as a percentage of related sales.

 

 

 

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)




August 2,


August 3,



2014


2013






ASSETS









Current assets:





Cash and cash equivalents

$             67,235


$             32,488


Accounts receivable, net

89,195


56,083


Inventories

1,044,520


599,811


Other current assets

105,475


71,835







   Total current assets

1,306,425


760,217

Property and equipment, net

573,911


397,129

Tuxedo rental product, net

146,464


144,171

Goodwill

874,955


76,510

Intangible assets, net

676,861


30,022

Other assets

45,983


6,485







   Total assets

$        3,624,599


$         1,414,534






LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities:





Accounts payable

$           214,766


$            136,629


Accrued expenses and other current liabilities

273,974


172,446


Income taxes payable

1,201


3,554


Current maturities of long-term debt

11,000


-







   Total current liabilities

500,941


312,629






Long-term debt

1,678,196


-

Deferred taxes and other liabilities

393,413


86,836







   Total liabilities

2,572,550


399,465






Shareholders' equity:





Preferred stock

-


-


Common stock

481


708


Capital in excess of par

423,169


382,519


Retained earnings

583,903


1,162,933


Accumulated other comprehensive income

33,380


26,234


Treasury stock, at cost

(3,303)


(569,860)







   Total equity attributable to common shareholders

1,037,630


1,002,534







Non-controlling interest

14,419


12,535







   Total equity

1,052,049


1,015,069







    Total liabilities and equity

$         3,624,599


$         1,414,534

 

 

 

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended August 2, 2014 and August 3, 2013

(In thousands)






Six Months Ended



2014


2013

CASH FLOWS FROM OPERATING ACTIVITIES:










Net earnings including non-controlling interest

$            28,826


$           75,934


Non-cash adjustments to net earnings:





   Depreciation and amortization

49,778


43,450


   Tuxedo rental product amortization

19,961


19,004


Deferred financing costs amortization

1,121


243


Discount on long-term debt amortization

196


-


Loss on extinguishment of debt

2,158


-


Goodwill impairment charge

-


9,501


   Other

(1,654)


5,624


Changes in operating assets and liabilities

(86,507)


(52,514)







        Net cash provided by operating activities

13,879


101,242






CASH FLOWS FROM INVESTING ACTIVITIES:





Capital expenditures

(40,837)


(52,261)


Acquisition of business, net of cash

(1,491,393)


-


Proceeds from sales of property and equipment

-


191







        Net cash used in investing activities

(1,532,230)


(52,070)






CASH FLOWS FROM FINANCING ACTIVITIES:





Proceeds from new term loan

1,089,000


-


Payments on previous term loan

(97,500)


-


Proceeds from asset-based revolving credit facility

340,000


-


Payments on asset-based revolving credit facility

(340,000)


-


Proceeds from bond issuance

600,000


-


Deferred financing costs

(50,938)


(1,776)


Proceeds from issuance of common stock

6,167


5,409


Cash dividends paid

(17,460)


(18,350)


Tax payments related to vested deferred stock units

(6,869)


(3,865)


Excess tax benefits from share-based plans

3,687


1,114


Repurchases of common stock

(251)


(152,129)







        Net cash provided by (used in) financing activities

1,525,836


(169,597)







Effect of exchange rate changes

498


(3,150)






INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

7,983


(123,575)







Balance at beginning of period

59,252


156,063


Balance at end of period

$            67,235


$           32,488

 

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS – NON-GAAP

(In thousands, except per share amounts)


Use of Non-GAAP Financial Measures

We have provided adjusted earnings per share information in addition to providing financial results in accordance with GAAP.  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 adjusted results provide useful information by excluding items we believe are not indicative of our core operating results as well as certain items related to the acquisition of Jos. A. Bank.  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.  A reconciliation of this non-GAAP information to our actual results is as follows and may not sum due to rounded numbers:


Three Months Ended August 2, 2014











GAAP


Acquisition


Purchase


Other (1)


Adjusted


Results


& Integration


Acctg Allocation




Results











Net sales

$ 803,078


$                   -


$                         -


$           -


$ 803,078











Retail gross margin

338,518


-


6,771


-


345,289

Corporate apparel product margin

20,024


-


-


-


20,024

Total gross margin

358,542


-


6,771


-


365,313











Selling, general and administrative expenses

315,838


(41,812)


(906)


(1,111)


272,009

Goodwill impairment charge

-


-


-


-


-











Operating income

42,704


41,812


7,677


1,111


93,304











Net interest

(13,074)


-


-


-


(13,074)

Loss on extinguishment of debt

(2,158)


2,158


-


-


-











Earnings before income taxes 

27,472


43,970


7,677


1,111


80,230











Provision for income taxes

15,104


9,106


2,601


377


27,188











Net earnings including non-controlling interest

12,368


34,864


5,075


735


53,042











Net earnings attributable to non-controlling interest

(112)


-


-


-


(112)











Net earnings attributable to common shareholders

$   12,256


$         34,864


$                 5,075


$      735


$   52,930











Net earnings per diluted common share attributable to common shareholders

$       0.25


$             0.72


$                   0.11


$     0.02


$       1.10











(1) Other relates to K&G strategic alternative review.




















Three Months Ended August 3, 2013











GAAP


Acquisition


Purchase


Other (1)


Adjusted


Results


& Integration


Acctg Allocation




Results











Net sales

$ 647,255


$                   -


$                         -


$           -


$ 647,255











Retail gross margin

291,567


-


-


-


291,567

Corporate apparel product margin

17,227


-


-


-


17,227

Total gross margin

308,794


-


-


-


308,794











Selling, general and administrative expenses

232,505


(645)


-


(2,246)


229,615

Goodwill impairment charge

9,501


-


-


(9,501)


-











Operating income

66,788


645


-


11,747


79,179











Net interest

(359)


-


-


-


(359)

Loss on extinguishment of debt

-


-


-


-


-











Earnings before income taxes 

66,429


645


-


11,747


78,820











Provision for income taxes

23,451


227


-


4,147


27,825











Net earnings including non-controlling interest

42,978


418


-


7,600


50,995











Net earnings attributable to non-controlling interest

(35)


-


-


-


(35)











Net earnings attributable to common shareholders

$   42,943


$              418


$                         -


$   7,600


$   50,960











Net earnings per diluted common share attributable to common shareholders

$       0.85


$             0.01


$                       -


$     0.15


$       1.01











(1) Other includes the non-cash write-off of K&G goodwill and separation costs associated with former executives.


Use of Non-GAAP Financial Measures (cont'd)


Six Months Ended August 2, 2014











GAAP


Acquisition


Purchase


Other (1)


Adjusted


Results


& Integration


Acctg Allocation




Results











Net sales

$ 1,433,552


$                   -


$                         -


$           -


$ 1,433,552











Retail gross margin

604,804


-


6,771


-


611,575

Corporate apparel product margin

37,102


-


-


-


37,102

Total gross margin

641,906


-


6,771


-


648,677











Selling, general and administrative expenses

571,921


(62,597)


(906)


(6,779)


501,639

Goodwill impairment charge

-


-


-


-


-











Operating income

69,985


62,597


7,677


6,779


147,038











Net interest

(14,148)


-


-


-


(14,148)

Loss on extinguishment of debt

(2,158)


2,158


-


-


-











Earnings before income taxes 

53,679


64,755


7,677


6,779


132,890











Provision for income taxes

24,853


16,836


2,702


2,386


46,777











Net earnings including non-controlling interest

28,826


47,920


4,974


4,393


86,113











Net earnings attributable to non-controlling interest

(84)


-


-


-


(84)











Net earnings attributable to common shareholders

$      28,742


$         47,920


$                 4,974


$   4,393


$      86,029











Net earnings per diluted common share attributable to common shareholders

$          0.60


$             1.00


$                   0.10


$     0.09


$          1.78











(1) Other relates to K&G strategic alternative review and costs associated with cost reduction initiative.















Six Months Ended August 3, 2013











GAAP


Acquisition


Purchase


Other (1)


Adjusted


Results


& Integration


Acctg Allocation




Results











Net sales

$ 1,263,791


$                   -


$                         -


$           -


$ 1,263,791











Retail gross margin

552,075


-


-


-


552,075

Corporate apparel product margin

34,639


-


-


-


34,639

Total gross margin

586,714


-


-


-


586,714











Selling, general and administrative expenses

457,872


(645)


-


(2,246)


454,982

Goodwill impairment charge

9,501


-


-


(9,501)


-











Operating income

119,341


645


-


11,747


131,732











Net interest

(582)


-


-


-


(582)

Loss on extinguishment of debt

-


-


-


-


-











Earnings before income taxes 

118,759


645


-


11,747


131,150











Provision for income taxes

42,825


147


-


4,228


47,200











Net earnings including non-controlling interest

75,934


497


-


7,519


83,950











Net loss attributable to non-controlling interest

100


-


-


-


100











Net earnings attributable to common shareholders

$      76,034


$              497


$                         -


$   7,519


$      84,050











Net earnings per diluted common share attributable to common shareholders

$          1.50


$             0.01


$                       -


$     0.15


$          1.66











(1) Other includes the non-cash write-off of K&G goodwill and separation costs associated with former executives.



 

SOURCE Men's Wearhouse