Cabelas 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.
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, Cabelas 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
A break down of the companys 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.
“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)
Three Months Ended
Fiscal Year Ended
|Financial services revenue||37,838||38,477||159,335||137,423|
|COST OF REVENUE:|
|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|
|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|
|EARNINGS PER COMMON SHARE:|