The Sportsman's Guide, Inc. reported record results of operations for the quarter and year ended December 31, 2005, with consolidated net sales and earnings per share that are at the high end of the company's most recent guidance.
After adjusting out the additional week in the fourth quarter of 2004, the consolidated net sales for the fourth quarter of 2005 increased by nearly 10% to $95.2 million. Company officials noted that the fourth quarter of 2004 included 14 weeks of activity, compared with 13 weeks this year. The additional week resulted in approximately $4 million of incremental net sales with minimal effect on net earnings in the quarter or for the year of 2004.
The company reported net earnings of $4.5 million, or $0.53 per fully diluted share for the fourth quarter of 2005, compared with $3.7 million, or $0.46 per share, reported for the three months ended December 31, 2004. Earnings per share for 2004 reflect the 3-for-2 stock split, distributed April 15, 2005.
For the twelve months ended December 31, 2005, consolidated net sales were $285.1 million, a 23% increase over the $232.5 million reported for 2004. The increase is nearly 25% when the additional week in 2004 is not considered. The Company recorded net earnings of $11.5 million, or $1.38 per fully diluted share, for the year, an increase of 51% when compared with net earnings of $7.6 million, or $0.95 per share, for the twelve months ended December 31, 2004.
Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “These record results clearly validate that our formula continues to work and yield exceptional results. In 2005 we saw consolidated net sales and net earnings grow 23% and 51% respectively over 2004. These increases were due to the addition of and the strong performance of The Golf Warehouse (“TGW”), and the continuing growth of The Sportsman's Guide (“TSG”). 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 year.”
Binkley also noted that the Company ended the year with just over $14 million in cash and cash equivalents on the balance sheet, no bank debt and no remaining debt associated with the acquisition of TGW.
The Sportsman's Guide, Inc. and Subsidiaries
Consolidated Statements of Earnings
For The Three Months And Years Ended
December 31, 2005 and 2004
(In thousands, except per share data)
Three months ended Years ended
December 31, December 31,
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2005 2004 2005 2004
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Sales $ 95,215 $ 91,062 $ 285,120 $ 232,465
Cost of sales 63,329 60,752 194,267 158,081
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Gross profit 31,886 30,310 90,853 74,384
Selling, general and
administrative expenses 24,858 24,283 72,789 62,122
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Earnings from operations 7,028 6,027 18,064 12,262
Interest expense (91) (193) (304) (361)
Miscellaneous income
(expense), net 144 (82) 326 (2)
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Earnings before income
taxes 7,081 5,752 18,086 11,899
Income tax expense 2,581 2,084 6,633 4,306
--------- --------- --------- ---------
Net earnings $ 4,500 $ 3,668 $ 11,453 $ 7,593
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Net earnings per share:
Basic $ .61 $ .52 $ 1.58 $ 1.07
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Diluted $ .53 $ .46 $ 1.38 $ .95
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Weighted average common and
common equivalent shares
outstanding:
Basic 7,371 7,075 7,228 7,078
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Diluted 8,463 8,000 8,290 7,985
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