Cabela's total revenue for the second quarter of fiscal 2004 increased 11.3% to $279.1 million compared to $250.8 million for the same period last year. Second quarter net income was $2.0 million, or 3 cents per diluted share, compared to $3.1 million, or 6 cents per diluted share
for the same period a year ago. The Company noted, as a result of the third quarter fiscal 2003 recapitalization, and the Company's recent public offering, weighted average diluted shares outstanding increased by 11.7% to 59.9 million over the year-ago quarter's total of 53.6
million.
The Company also noted that the financial services' securitization
income was negatively impacted by approximately $2.0 million after
tax, or $0.03 per diluted share, in the second quarter of fiscal 2004.
This was primarily due to a securitization transaction involving the
Company's credit card receivables. The Company engages in
securitization transactions on an annual basis, and a similar
transaction occurred in the first quarter of 2003.
During the second quarter of fiscal 2004, direct revenue increased
1.7% to $166.0 million. Total retail revenue increased 32.1% to $96.5
million with a same store sales increase of 2.5%. Financial services
revenue, which includes the impact of the securitization transaction,
increased 10.0% to $15.0 million for the second quarter of fiscal
2004.
Total revenue for the six months ended July 3, 2004 increased
15.6% to $593.1 million compared to $513.1 million for the six months
ended June 28, 2003. Net income for the six-month period increased
62.7% to $10.0 million, compared to $6.2 million for the six months
ended June 28, 2003. The Company reported diluted earnings per share
growth of 54.5% to $0.17, on 59.4 million weighted average diluted
shares for the first six months of fiscal 2004, compared to $0.11, on
53.6 million weighted average diluted shares for the six months ended
June 28, 2003.
Also for the six months ended July 3, 2004: direct revenue
increased 5.5% to $371.7 million; retail revenue increased 40.6% to
$187.0 million on a same store sales increase of 4.4%; and financial
services revenue increased 25.2% to $31.4 million, all over the
six-month period ended June 28, 2003.
Dennis Highby, Cabela's President and Chief Executive Officer
commented, “During the second quarter we were able to achieve record
sales across all of our operating divisions. In addition, effective
cost containment enabled us to outperform internal projections for
profitability. Our strong performance in the first half of the year
gives us confidence as we head into our peak selling season.”
Mr. Highby continued, “Total retail sales increased more than 32%
during the quarter, primarily driven by an excellent performance from
our Hamburg, PA store. It is our newest retail location, having opened
in September of 2003, and also our largest. We are also excited to
open our 10th store in August, a new 175,000 square foot store in
Wheeling, West Virginia. Further, we remain on track to open two
large-format destination stores in Ft. Worth, Texas and Buda, Texas in
2005. In addition, we are pleased to announce that we are in the final
stages of negotiations for a new store site. We expect to make a
formal announcement concerning this store in the next three to four
weeks.”
On June 30, 2004, Cabela's Inc. closed its initial public offering
of 7,812,500 shares of its common stock at a price of $20 per share,
as well as the underwriter's over-allotment option for 1,171,875
shares. Of the total offering, 6,250,000 shares were sold by the
Company, raising net proceeds of approximately $115.2 million for the
Company. “After 43 years of successful growth, we have entered a new
era as a publicly traded company. We are excited about the
opportunities this presents for Cabela's,” Mr. Highby further
commented. “We thank our employees for their dedication and hard work
and our customers for their on-going loyalty and support which has
helped Cabela's become recognized as the World's Foremost
Outfitter(R).”
Mr. Highby concluded, “Looking ahead, we are very excited about
the prospects for Cabela's. We believe that our multi-channel
retailing model and our destination store status afford us significant
expansion opportunities into the future. We are optimistic about our
profit potential for this year, and we continue to target long-term
growth rates in the mid-teens, as we are committed to fully
capitalizing on our unique position in the industry.”
CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
(Unaudited)
----------------------------------------------------------------------
July 3, January 3,
ASSETS 2004 2004
--------- ----------
CURRENT ASSETS:
Cash and cash equivalents $111,671 $192,581
Accounts receivable 29,214 32,826
Credit card loans receivable held for sale 79,858 28,013
Inventories 318,356 262,763
Prepaid expenses and deferred catalog costs 32,947 31,035
Other current assets 28,224 34,413
---------- ---------
Total current assets 600,270 581,631
----------- --------
PROPERTY AND EQUIPMENT, NET 270,416 264,991
----------- --------
OTHER ASSETS:
Marketable securities 106,546 72,632
Other 43,890 44,299
----------- --------
Total other assets 150,436 116,931
----------- --------
Total assets $1,021,122 $963,553
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $85,714 $91,524
Bank overdrafts 16,215 36,788
Accrued expenses and other liabilities 29,831 42,939
Gift certificates and credit card reward points 77,976 80,570
Accrued employee compensation, benefits, and
savings plan 26,290 58,217
Time deposits 37,053 12,900
Current maturities of long-term debt 2,998 3,013
Income taxes payable 18,539 27,100
----------- --------
Total current liabilities 294,616 353,051
----------- --------
LONG-TERM LIABILITIES: 217,059 237,987
STOCKHOLDERS' EQUITY: 509,447 372,515
---------- ---------
Total liabilities and stockholders' equity $1,021,122 $963,553
========== =========
CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands Except Per Share and Share Amounts)
(Unaudited)
----------------------------------------------- ----------------------
Three months ended Six months ended
---------------------- ----------------------
July 3, June 28, July 3, June 28,
2004 2003 2004 2003
---------- ------------ ---------- ----------
REVENUES:
Merchandise sales $262,326 $236,155 $558,685 $485,309
Financial services
revenue 14,986 13,628 31,433 25,107
Other revenue 1,827 1,063 2,938 2,733
----------- ----------- ---------- ----------
Total revenues 279,139 250,846 593,056 513,149
----------- ----------- ----------- ---------
COST OF REVENUE:
Cost of merchandise
sales 170,823 151,295 357,796 309,177
Cost of other revenue 1,463 1,763 3,165 2,853
----------- ----------- ----------- ---------
Total cost of
revenue (exclusive of
depreciation and
amortization) 172,286 153,058 360,961 312,030
----------- ----------- ---------- ----------
Gross profit 106,853 97,788 232,095 201,119
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 103,621 92,446 216,160 189,462
----------- ----------- ----------- ---------
OPERATING INCOME 3,232 5,342 15,935 11,657
----------- ----------- ----------- ---------
OTHER INCOME (EXPENSE):
Interest income 23 68 137 254
Interest expense (2,025) (2,797) (4,045) (5,559)
Other income, net 1,750 2,105 3,330 3,092
------------ ---------- ------------ --------
(252) (624) (578) (2,213)
------------ ---------- ------------ --------
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,980 4,718 15,357 9,444
INCOME TAX EXPENSE 993 1,628 5,324 3,277
----------- ----------- ----------- ---------
NET INCOME $1,987 $3,090 $10,033 $6,167
=========== =========== =========== =========
EARNINGS PER SHARE:
Basic $0.03 $0.06 $0.17 $0.12
============ ========== =========== =========
Diluted $0.03 $0.06 $0.17 $0.11
============= ========= =========== =========
WEIGHTED AVERAGES SHARES
OUTSTANDING:
Basic 58,223,489 49,899,203 57,529,535 49,899,203
========== ============ ========= ===========
Diluted 59,906,085 53,631,067 59,373,374 53,638,421
========== ============ ========== ==========
