Cabela’s Inc. reported total revenue for the third quarter ended Sept. 27, 2008 increased 11.9% to $611.8 million compared to $546.8 million for the third quarter of 2007. Net income for the third quarter of 2008 was $9.7 million, or 15 cents per diluted share, compared to $13.2 million, or 20 cents per diluted share, for the third quarter of 2007.


In the third quarter of 2008, retail store revenue increased 27.5% to $328 million with a same store sales decrease of 9.0%; direct revenue was $241 million; and financial services revenue was $41.9 million.


Total revenue for the nine months ended September 27, 2008, increased 14.6% to $1.67 billion compared to $1.46 billion for the same period last year. Net income for the nine months ended Sept. 27, 2008, was $27.0 million, or 40 cents per diluted share, compared to $31.6 million, or 47 cents per diluted share, for the nine months ended Sept. 29, 2007.


“During the third quarter, we opened our first next generation store and are very pleased with the initial results,” said Dennis Highby, Cabela’s president and CEO.

 

“We head into the fourth quarter fully cognizant of the current environment and its potential impact on the upcoming holiday selling season,” Highby said. “Therefore, we believe it is prudent to adopt a more conservative outlook and now expect high single-digit percentage revenue growth for fiscal 2008. Additionally, we expect a low to mid-teen percentage decline in earnings per share for fiscal 2008 as compared to fiscal 2007. This compares to our previous guidance of mid-teen percentage revenue growth and mid-single-digit percentage earnings per share growth for fiscal 2008. Importantly, Cabela’s leadership position in the market, its powerful brand, multi-channel operating model, strong cash flows and high level of customer service will serve us well, not only during these difficult times but for many years to come.”



 

 









































































































































































































































































































































































































































































CABELA’s INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(Dollars in Thousands Except Earnings Per Share)

(Unaudited)

 

Three Months Ended


 


Nine Months Ended


September 27,


2008

 

September 29,


2007


September 27,


2008

 

September 29,


2007

REVENUE:
Merchandise sales $ 569,202 $ 499,182 $ 1,540,753 $ 1,325,245
Financial services revenue 41,896 44,749 120,857 121,497
Other revenue   702   2,878   11,681   13,357
Total revenue   611,800   546,809   1,673,291   1,460,099
 
COST OF REVENUE (exclusive of depreciation and amortization) 376,057 322,584 1,006,245 860,713
 
SELLING, DISTRIBUTION, AND ADMINISTRATIVE EXPENSES   214,898   199,879   610,263   542,397
OPERATING INCOME 20,845 24,346 56,783 56,989
 
INTEREST (EXPENSE) INCOME, NET (7,510 ) (4,178 ) (22,399 ) (11,985 )
OTHER NON-OPERATING INCOME, NET   1,616   1,004   5,230   5,353
 
INCOME BEFORE PROVISION FOR INCOME TAXES 14,951 21,172 39,614 50,357
 
PROVISION FOR INCOME TAXES   5,229   7,940   12,657   18,719
 
NET INCOME $ 9,722 $ 13,232 $ 26,957 $ 31,638
 
EARNINGS PER COMMON SHARE:
Basic $ 0.15 $ 0.20 $ 0.41 $ 0.48
 
Diluted $ 0.15 $ 0.20 $ 0.40 $ 0.47
 
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic   66,648,175   65,825,895 &

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