The Sportsman's Guide, Inc. reported that sales for the first quarter were $44.6 million compared to the $43.7 million reported for the same period one year ago. The SGDE reported net earnings of $1.2 million, or 22 cents per fully diluted share, for the quarter, a 22% increase when compared to $957,000, or 19 cents per fully diluted share, reported for the three months ended March 31, 2003.
The increase in net earnings and earnings per share from last year's first quarter was due primarily to higher Internet-related sales and lower levels of selling, general and administrative expenses. Internet-related sales for the first quarter of 2004 were just over 40% of total catalog and Internet sales, setting an all time record. Internet-related sales as a percentage of total catalog and Internet sales were approximately 34% for the first quarter of 2003.
Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Once again our ongoing strategy of moving more of our business to the Internet has resulted in better than expected earnings growth and profitability.”
Total catalog circulation for the first quarter was 11.0 million catalogs, compared to 11.3 million during the first quarter of 2003. The Company mailed nine catalog editions, consisting of three main catalogs, three Buyer's Club Advantage(TM) catalogs and three specialty catalogs during the quarter ended March 31, 2004, compared to nine catalog editions for the same quarter in 2003.
“The increase in Internet-related sales is the result of enhancements that we continue to make to our websites and the improvements that we continue to make to our marketing and merchandising programs,” Binkley concluded.
The Sportsman's Guide, Inc. Consolidated Statements of Earnings (Unaudited) For the quarters ended March 31, 2004 and 2003 (In thousands, except per share data) For the quarters ended March 31, 2004 2003 Sales $44,594 $43,749 Cost of sales 30,466 29,552 Gross profit 14,128 14,197 Selling, general and administrative expenses 12,346 12,730 Earnings from operations 1,782 1,467 Miscellaneous income, net 42 29 Earnings before income taxes 1,824 1,496 Income tax expense 657 539 Net earnings $1,167 $ 957 Net earnings per share: Basic $.25 $.20 Diluted $.22 $.19