The Sportsman’s Guide, Inc. expects to report results for the quarter and year ended December 31, 2004 above most recent guidance and at the high end of current consensus estimates. For the quarter the Company now anticipates reporting total consolidated sales in the range of $92 to $93 million and earnings per share in the range of 83 cents to 85 cents. This would compare to fourth quarter 2003 results of $71.7 million in sales and earnings of 71 cents per share.
For the year, the Company expects consolidated sales in the range of $232 to $233 million and earnings per share in the range of $1.40 to $1.42. This would compare to the total year 2003 results of $194.7 million in sales and earnings of $1.16 per share. Consensus estimates for 2004 were for sales of $229 million and for earnings of $1.41 per share.
Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Once again we expect to report a year significantly above last year. These results are due to the strong performance of The Golf Warehouse, acquired in late June of 2004, and the continued growth of The Sportsman’s Guide. Internet-related sales at The Sportsman’s Guide were in excess of 42%, compared to 36% one year ago. As a result of the strong fourth quarter, we should end the year with approximately $9 million of cash and long-term bank debt of $5 million.”
Company officials also noted that the fourth quarter of 2004 included 14 weeks of activity, compared to 13 weeks one year ago. This additional week resulted in approximately $4 million of incremental sales with minimal effect on net earnings in the quarter or for the year.
