Cabelas Incorporated revenue for the fourth fiscal quarter of 2006 increased 15.6% to $781.0 million compared to $675.4 million for the fourth fiscal quarter of 2005. Net income for the fourth fiscal quarter of 2006 increased 25.5% to $53.4 million, or 80 cents per diluted share, compared to $42.5 million, or 64 cents per diluted share, for the fourth fiscal quarter of 2005.
The Company had a strong fourth fiscal quarter in each of its business segments compared to the same period a year ago. Direct revenue increased $25.2 million, or 6.2%, to $432.4 million; total retail revenue increased 27.3% to $304.9 million with a same store sales increase of 1.7%; and financial services revenue increased 33.1% to $38.5 million.
“Our record fourth quarter results represent an extremely gratifying way to end another important year for Cabelas,” said Dennis Highby, Cabelas President and Chief Executive Officer. “During the quarter, we generated solid gains across all our business segments, and this positive momentum continues as we enter fiscal 2007.”
Total revenue for fiscal 2006 increased 14.7% to a Company record of $2.06 billion compared to $1.80 billion in fiscal 2005. Net income for fiscal 2006 increased 18.2% to $85.8 million compared to $72.6 million for fiscal 2005. Earnings per share increased 17.3% to $1.29 per diluted share compared to $1.10 per diluted share for fiscal 2005.
Each of the Companys three main business segments grew in fiscal 2006 compared to fiscal 2005. Direct revenue increased 4.2% to $1.09 billion; retail revenue increased 32.3% to $820.3 million with a same store sales increase of 1.3%; and financial services revenue increased 29.9% to $137.4 million. During fiscal 2006, the Company opened four new destination retail stores to end the year with 18 stores with approximately 2.7 million retail square feet, representing a 29% increase in square footage over fiscal 2005.
“We are particularly pleased with the many accomplishments achieved throughout the year,” Highby said. “Financially, we surpassed the $2 billion revenue mark, increased diluted EPS by over 17%, and achieved our mid-teens growth targets. In addition, our operating margin increased to 7.0% for fiscal 2006 compared to 6.4% for fiscal 2005. We anticipate continued improvement in our operating margin for full fiscal year 2007.”
“From an operational standpoint, we effectively implemented a series of initiatives to increase efficiencies, including enhancing our in-store merchandising, improving our retail stock position, installing a new warehouse management system in our distribution centers and implementing phase one of the JDA merchandise management system.”
“At the same time, we significantly increased our national footprint, successfully opening four new destination retail stores to end the year with 18 stores in operation, and further solidifying Cabelas leadership position in the marketplace.”
“We are more energized and excited than ever as we enter 2007,” Highby said. “Our ongoing success is directly related to our unique position in the market, and equally important, the hard work, passion, and dedication of our exceptional people. Cabelas powerful multi-channel model continues to provide us with a competitive advantage, and we remain committed to fully capitalizing on the many growth opportunities that lie ahead.”
CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)
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Three Months Ended Fiscal Year Ended
December 30, December 31, December 30, December 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
REVENUE:
Merchandise
sales $ 737,308 $ 646,726 $ 1,908,801 $ 1,664,272
Financial
services
revenue 38,477 28,903 137,423 105,831
Other revenue 5,218 (182) 17,300 29,558
------------ ------------ ------------ ------------
Total revenue 781,003 675,447 2,063,524 1,799,661
------------ ------------ ------------ ------------
COST OF REVENUE:
Cost of
merchandise
sales 440,772 388,188 1,199,851 1,044,028
Cost of other
revenue 1,654 (933) 4,548 20,294
------------ ------------ ------------ ------------
Total cost of
revenue
(exclusive of
depreciation
and
amortization) 442,426 387,255 1,204,399 1,064,322
SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES 250,431 219,334 715,380 620,376
------------ ------------ ------------ ------------
OPERATING INCOME 88,146 68,858 143,745 114,963
------------ ------------ ------------ ------------
OTHER INCOME
(EXPENSE):
Interest income 197 128 1,821 672
Interest expense (5,018) (2,991) (17,947) (10,928)
Other income,
net 2,037 2,701 9,637 10,663
------------ ------------ ------------ ------------
Total other
income
(expense) (2,784) (162) (6,489) 407
------------ ------------ ------------ ------------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 85,362 68,696 137,256 115,370
PROVISION FOR
INCOME TAXES 32,010 26,185 51,471 42,801
------------ ------------ ------------ ------------
NET INCOME $ 53,352 $ 42,511 $ 85,785 $ 72,569
============ ============ ============ ============
EARNINGS PER
SHARE:
Basic $ 0.82 $ 0.66 $ 1.32 $ 1.12
============ ============ ============ ============
Diluted $ 0.80 $ 0.64 $ 1.29 $ 1.10
Diluted $ 0.80 $ 0.64 $ 1.29 $ 1.10
============ ============ ============ ============
WEIGHTED AVERAGE
SHARES
OUTSTANDING:
Basic 65,342,380 64,747,818 65,221,339 64,668,973
============ ============ ============ ============
Diluted 66,968,267 66,098,866 66,643,856 66,268,374
