Gander Mountain Company reported sales of $269.9 million for the quarter ended Nov. 1, 2008, an increase of 4% over the prior year period. Comparable store sales decreased 6.5% in the third quarter. Net income for the third quarter was $770,000, or 3 cents per share, compared to a net loss of $5.1 million, or 25 cents per share, a year ago.


The 2008 period includes $14.4 million in revenue due to the expansion of the company's direct marketing business through Overton's. Per share information for the most recent quarter reflects the issuance of an additional 4,067,797 shares of common stock in Dec. 2007, the proceeds of which were used to partially fund the Overton's acquisition.

For the 39 weeks ended Nov. 1, 2008, the company reported sales of $730.5 million, an increase of 12.1% over the comparable period in 2007. The company reported a net loss for the 39-week period of $28.5 million, or $1.18 per share, compared with a net loss of $37.6 million, or $1.86 per share, for the 39 weeks ended Nov. 3, 2007.


Financial highlights for the third quarter:



  • On retail segment sales of $256 million, a 1.6% decrease, retail segment net income increased to $3.7 million compared to a net loss of $5.1 million for the comparable quarter of fiscal 2007.
  • Retail segment SG&A costs improved $7.9 million, or 272 basis points as a percentage of sales, in the third quarter of fiscal 2008 due to cost reductions in both store operating and general and administrative expenses. However, included in consolidated SG&A expenses were $8.0 million in expenses related to the direct segment, thus consolidated SG&A expenses were flat year over year.
  • Current availability under the company's existing credit facility at Dec. 5, 2008 was $59 million as compared with $54 million as of Dec. 7, 2007.

“While the current retail environment is as difficult as any in recent memory, our efforts to conserve costs, improve operating margins, reduce capital expenditures and improve operating cash flows have borne results,” said David C. Pratt, Chairman and interim CEO. “We are applying a more disciplined approach to our operations, capital, and expense decisions and we remain pleased with the operational progress visible in these results at Gander Mountain.”


                           Gander Mountain Company
Consolidated Statements of Operations – Unaudited
(In thousands, except per share data)

13 Weeks Ended 39 Weeks Ended
November November November November
1, 3, 1, 3,
2008 2007 2008 2007
Sales $269,920 $259,539 $730,455 $651,799
Cost of goods sold 200,160 189,445 551,183 496,293
Gross profit 69,760 70,094 179,272 155,506
Operating expenses:
Selling, general and
administrative expenses 64,975 64,946 190,871 171,754
Exit costs, impairment and other
charges (1,112) 1,582 (20) 2,208
Pre-opening expenses – 3,041 2,035 4,753
Income (loss) from operations 5,897 525 (13,614) (23,209)
Interest expense, net 4,950 5,543 14,301 14,049
Income (loss) before income taxes 947 (5,018) (27,915) (37,258)
Income tax provision 182 125 619 375
Net Income (loss) $765 $(5,143) $(28,534) $(37,633)

Basic and diluted loss per common
share $0.03 $(0.25) $(1.18) $(1.86)

Weighted average common shares
outstanding 24,162 20,362 24,086 20,255