Cabela's Incorporated total revenue for the third fiscal quarter of 2004 increased 15.9% to $383.8 million compared to $331.2 million for the third fiscal quarter of 2003. Net income for the third fiscal quarter of 2004 increased 61.2% to $16.5 million, or 25 cents per diluted share, compared to $10.2 million, or 19 cents per diluted share, for the third fiscal quarter of 2003. The Company noted that, as a result of the recapitalization in the third fiscal quarter of 2003, and the Company's recent public offering, weighted average diluted shares outstanding increased 20.0% to 66.4 million during the third fiscal quarter of 2004 compared to 55.4 million during the third fiscal
quarter of 2003.
During the third fiscal quarter of 2004: direct revenue increased
3.8% to $221.0 million; retail revenue increased 36.8% to $140.5
million, despite a same store sales decline of 3.0%; and financial
services revenue increased 39.9% to $22.3 million, all over the third
fiscal quarter of 2003.
Total revenue for the nine months ended October 2, 2004 increased
15.7% to $976.9 million compared to $844.4 million for the nine months
ended September 27, 2003. Net income for the nine months ended October
2, 2004 increased 61.8% to $26.5 million compared to $16.4 million for
the nine months ended September 27, 2003. The Company reported diluted
earnings per share growth of 43.3% to $0.43, on 62.2 million weighted
average diluted shares for the nine months ended October 2, 2004,
compared to $0.30, on 54.2 million weighted average diluted shares for
the nine months ended September 27, 2003.
Also for the nine months ended October 2, 2004: direct revenue
increased 4.9% to $592.7 million; retail revenue increased 38.9% to
$327.5 million, with a same store sales increase of 1.3%; and
financial services revenue increased 30.9% to $53.7 million, all over
the nine-month period ended September 27, 2003.
Dennis Highby, Cabela's President and Chief Executive Officer
commented, “Once again, we were pleased to achieve record revenues and
profits during the quarter. Our ability to continue to drive operating
margin expansion allowed us to translate a 16% gain in sales into a
32% increase in earnings per share. As we head into our peak selling
season, our momentum is positive and we are dedicated to effectively
executing our strategic initiatives.”
Mr. Highby continued, “Total retail sales increased more than 36%
during the quarter, although same store sales fell 3%. We believe the
decrease in same store sales was primarily due to a delay in the
printing and shipping of a promotional gift card. We are also very
pleased as our new stores continue to outperform expectations. In
particular, our 176,000 square foot store in Wheeling, West Virginia
has performed well since its opening this past August, and our
Hamburg, Pennsylvania location remains one of our most profitable
stores to date. The strong performance of these newer stores gives us
a heightened degree of confidence as we accelerate our retail
expansion into the future. As previously announced, we plan to open
two stores in Texas and one in Utah in fiscal 2005. In addition, we
recently announced we are in negotiations for two new locations; one
in Wheat Ridge, Colorado, slated to open in fiscal 2006, and one in
East Rutherford, New Jersey, slated to open in fiscal 2007.”
Mr. Highby concluded, “We are focused on continually improving our
operating platform and further building on our leadership position in
the outdoor industry. We move forward with a powerful brand, strong
financials, significant growth prospects and a management team
committed to capitalizing on the many opportunities that lie ahead to
deliver long-term value to our shareholders.”
CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands Except Per
Share and Share Amounts)
(Unaudited)
----------------------------------------------------------------------
Three months ended Nine months ended
------------------------ ------------------------
October 2, Sept. 27, October 2, Sept. 27,
2004 2003 2004 2003
----------- ----------- ----------- -----------
REVENUES:
Merchandise sales $ 361,439 $ 315,614 $ 920,124 $ 800,923
Financial services
revenue 22,276 15,922 53,709 41,029
Other revenue 95 (327) 3,033 2,406
----------- ----------- ----------- -----------
Total revenues 383,810 331,209 976,866 844,358
----------- ----------- ----------- -----------
COST OF REVENUE:
Cost of merchandise
sales 227,346 200,427 585,142 509,604
Cost of other
revenue 43 (1,477) 3,208 1,376
----------- ----------- ----------- -----------
Total cost of
revenue (exclusive
of depreciation
and amortization) 227,389 198,950 588,350 510,980
----------- ----------- ----------- -----------
Gross profit 156,421 132,259 388,516 333,378
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 130,926 114,700 347,086 304,162
----------- ----------- ----------- -----------
OPERATING INCOME 25,495 17,559 41,430 29,216
----------- ----------- ----------- -----------
OTHER INCOME
(EXPENSE):
Interest income 132 24 269 278
Interest expense (2,055) (2,945) (6,100) (8,504)
Other income, net 1,897 1,309 5,227 4,401
----------- ----------- ----------- -----------
(26) (1,612) (604) (3,825)
----------- ----------- ----------- -----------
INCOME BEFORE
PROVISION FOR INCOME
TAXES 25,469 15,947 40,826 25,391
INCOME TAX EXPENSE 8,966 5,710 14,290 8,987
----------- ----------- ----------- -----------
NET INCOME $ 16,503 $ 10,237 $ 26,536 $ 16,404
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.26 $ 0.20 $ 0.44 $ 0.32
=========== =========== =========== ===========
Diluted $ 0.25 $ 0.19 $ 0.43 $ 0.30
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 64,252,912 52,035,101 60,241,891 50,611,169
=========== =========== =========== ===========
Diluted 66,409,915 55,351,796 62,190,157 54,209,546
=========== =========== =========== ===========
