The Sportsman's Guide, Inc. reported results for the third quarter ended September 30, 2005 that, with net sales of $61.5 million, compared to $57.0 million for last year's third quarter. The nearly 8% increase in consolidated net sales, year over year for the third quarter, was the result of sales growth at both The Golf Warehouse and The Sportsman's Guide. For the nine months ended September 30, 2005, net sales were $189.9 million, a 34% increase over the $141.4 million reported for the first three quarters of 2004.
Net earnings for the quarter were $2.2 million, or 26 cents per fully diluted share, a 50% increase over the $1.4 million, or 17 cents per fully diluted share, reported for the same period in 2004. For the first three quarters of 2005, net earnings were $7.0 million, or 84 cents per fully diluted share, compared to $3.9 million, or 49 cents per fully diluted share for the first nine months of 2004, an increase of more than 70%. The earnings per share numbers for 2004 have been restated to reflect the company's change in accounting policy for Buyer's Club revenues announced in June of this year and adjusted to reflect the 3-for-2 stock split, distributed April 15, 2005.
Gregory R. Binkley, president and CEO of the company, stated, “We had another record quarter due to a continuation of the positive trends that have been affecting our business the last few years. We saw net sales growth at both TGW and TSG; with TGW's growth especially strong. We also continued to generate high levels of Internet-related sales, as they once again totaled nearly 60% of total catalog and Internet sales for the quarter.”
Binkley also noted that the recently completed quarter is the first where the results are comparable with those of the previous year given that the 2004 third quarter also included the results of The Golf Warehouse, acquired June 29, 2004.
The Sportsman's Guide, Inc. and Subsidiaries
Consolidated Statements of Earnings
(UNAUDITED)
For The Three Months And Nine Months Ended
September 30, 2005 and 2004
(In thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
(Restated) (Restated)
Net sales $61,549 $57,039 $189,905 $141,403
Cost of sales 42,060 40,139 130,938 97,329
Gross profit 19,489 16,900 58,967 44,074
Selling, general and
administrative
expenses 15,983 14,564 47,931 37,839
Earnings from
operations 3,506 2,336 11,036 6,235
Interest expense (67) (168) (213) (168)
Other income
(expense), net 23 -- 182 80
Earnings before
income taxes 3,462 2,168 11,005 6,147
Income tax expense 1,273 791 4,052 2,222
Net earnings $2,189 $1,377 $6,953 $3,925
Net earnings per share:
Basic $.30 $.20 $.97 $.55
Diluted $.26 $.17 $.84 $.49
