Cabela’s Incorporated said total revenue for the fourth fiscal quarter of 2007 increased 13.9% to $889.5 million, compared to $781.0 million for the fourth fiscal quarter of 2006.


Net income for the quarter ended Dec. 29 increased 5.4% to $56.2 million, or $0.84 per diluted share, compared to $53.4 million, or $0.80 per diluted share, for the fourth fiscal quarter of 2006.

Retail store revenue increased 31.8% to $401.8 million with a same store sales decrease of 5.9%. Direct revenue increased 3.3% to $446.9 million; and financial services revenue decreased 1.7% to $37.8 million.


“These results are in line with the expectations we pre-announced on January 29th,” said Dennis Highby, Cabela’s president and CEO. “We are implementing a number of strategic initiatives aimed at improving profitability and are committed to taking the necessary steps to further build our business.”


Full year results


Total revenue for fiscal 2007 increased 13.9% to a company record of $2.35 billion, compared to $2.06 billion in fiscal 2006. Net income for fiscal 2007 increased 2.4% to $87.9 million, compared to $85.8 million for fiscal 2006. Earnings per share increased 1.6% to $1.31 per diluted share compared to $1.29 per diluted share for fiscal 2006.

A break down of the company’s three main business segments shows: 



  • Retail store revenue increased 27.2% to $1.04 billion with a same store sales decrease of 1.2%;
  • direct revenue increased 3.9% to $1.13 billion; and
  • financial services revenue increased 15.9% to $159.3 million.

During fiscal 2007, the company opened eight new retail stores and acquired S.I.R. Warehouse Sports in Winnipeg, Canada, to end the year with 27 stores with 4.0 million retail square feet, representing a 49% increase in square footage over fiscal 2006.


“While fiscal 2007 was a challenging year, we are taking a number of steps to solidify our business strategy and improve our financial performance,” Mr. Highby continued. “As we move forward, our primary objective is to improve our retail results, and in doing so, our focus will be on strengthening our retail store operations, improving our promotional activity to preserve margins, improving our merchandise and inventory management and augmenting our advertising strategy to maximize opportunities across all of our business channels. As previously announced, we are also slowing our retail store expansion to allow us to focus more on our existing store base.”


The company expects to open two stores in 2008. Scarborough, Maine, is expected to open in the second quarter and Rapid City, South Dakota, is expected to open in the third quarter. Current plans call for two additional stores to be opened in 2009.


2008 Outlook


As a result of the decision to slow retail store expansion and concentrate on improving the company’s existing operations, the company now anticipates earnings per share for 2008 will grow at a mid-single digit rate. For 2008, capital expenditures, including purchases of economic development bonds to fund retail store expansion, are expected to be $100-125 million, as compared to approximately $372 million in 2007. As a result of reduced capital expenditures, the company expects its recently completed $57 million senior note offering combined with cash flow from operations to be sufficient to fund its capital expenditures for 2008.

“Our multi-channel business model and strong brand name affords us substantial growth opportunities well into the future,” Mr. Highby concluded.



















































































































































































































































































































































































































CABELA'S INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(Dollars in Thousands Except Earnings Per Share)


(Unaudited)

 

Three Months Ended

 

Fiscal Year Ended


December 29,
2007

 

December 30,
2006


December 29,
2007

 

December 30,
2006

REVENUE:
Merchandise sales $ 848,750 $ 737,308 $ 2,173,995 $ 1,908,801
Financial services revenue 37,838 38,477 159,335 137,423
Other revenue   2,912   5,218     16,269   17,300  
Total revenue   889,500   781,003     2,349,599   2,063,524  
 
COST OF REVENUE:
Merchandise costs 517,649 440,772 1,376,691 1,199,851
Cost of other revenue   24   1,654     1,695   4,548  
Total cost of revenue (exclusive of depreciation and amortization) 517,673 442,426 1,378,386 1,204,399
 
SELLING, DISTRIBUTION, AND ADMINISTRATIVE EXPENSES   277,724   250,431     820,121   715,380  
OPERATING INCOME 94,103 88,146 151,092 143,745
 
INTEREST (EXPENSE) INCOME, NET (6,793 ) (4,821 ) (18,778 ) (16,126 )
OTHER NON-OPERATING INCOME, NET   1,560   2,037     6,913   9,637  
 
INCOME BEFORE PROVISION FOR INCOME TAXES 88,870 85,362 139,227 137,256
 
PROVISION FOR INCOME TAXES   32,629   32,010     51,348   51,471  
 
NET INCOME $ 56,241 $ 53,352   $ 87,879 $ 85,785  
 
EARNINGS PER COMMON SHARE:
Basic $ 0.85 $ 0.82   $ 1.34 $ 1.32  
 
Diluted
Share This