The Sportsman's Guide Releases 2004 Third Quarter Results

The Sportsman's Guide Releases 2004 Third Quarter Results
Consolidated Net Earnings Up Nearly 51% on Sales Growth of 37%; Acquisition of
TGW and Strong Internal Growth Fuel Record Results 


SOUTH ST. PAUL, Minn., Nov. 2  /PRNewswire-FirstCall/ -- The Sportsman's Guide,
Inc. (NASDAQ:SGDE) today reported record results of operations for the quarter
ended September 30, 2004.  Sales for the quarter were $56.6 million, a 37%
increase over the $41.2 million reported for the same period one year ago. The
Company reported net earnings of $1.1 million, and earnings of $0.20 per fully
diluted share for the quarter, compared to $710,000, or $0.13 per fully diluted
share, reported for the three months ended September 30, 2003.

For the nine months ended September 30, 2004, sales were $140.0 million, an
increase of just under 14% when compared to the $123.0 million reported for the
same period in 2003.  The Company recorded net earnings of $3.0 million, or
$0.57 per fully diluted share, for the first three quarters of the year,
compared to net earnings of $2.3 million, or $0.44 per fully diluted share, for
the first nine months ended September 30, 2003.

Company officials noted that the increase in sales for the third quarter of
2004 was due to the acquisition of The Golf Warehouse, TGW.com, on June 29,
2004 and increases in Internet-related sales for the Company's base business.
Sales at the base business grew 8% and its Internet-related sales were in
excess of 41% of total sales in the quarter, compared to approximately 36% of
total sales for the same period in 2003.

Gregory R. Binkley, President and Chief Executive Officer of the Company,
stated, "The strong results for the quarter were driven by two key factors. The
first is our early summer acquisition of The Golf Warehouse.  It performed
extremely well in the period. In addition, we have also seen year over year
improvements in sales and in Internet-related sales in our base business that
are encouraging."

Binkley went on to state, "The addition of TGW, with the majority of its sales
generated through the Internet, has changed our Company's profile as we are now
more of an on-line retailer than we were previously."

The Company will hold a conference call on Wednesday, November 3, 2004 to
discuss the results of the quarter.  Gregory R. Binkley, President and Chief
Executive Officer, and Charles B. Lingen, Executive Vice President and Chief
Financial Officer, will be present on the call to provide commentary and to
take questions.  The call will be begin at 10:30 am, CST.  Participants may
access the call by dialing 1-800-209-8032.  The call may also be accessed via
the Internet at http://www.sportsmansguideir.com/ .

The Sportsman's Guide offers value-priced outdoor gear and general merchandise,
with a special emphasis on outdoor clothing, equipment and footwear, through
direct mail catalogs and two Internet sites.  On June 29, 2004 the Company
acquired The Golf Warehouse, TGW.com, the Wichita, Kansas-based leading online
and catalog retailer of golf equipment, apparel and accessories.  The Company's
e-commerce websites include http://www.sportsmansguide.com/ ,
http://www.bargainoutfitters.com/ and http://www.tgw.com/ .  Investor
information is available on the Company's investor relations website:
http://www.sportsmansguideir.com/ .

This release contains forward-looking statements which are subject to change
based on various important factors, including but not limited to general
economic conditions, a changing market environment for the Company's products
and the market acceptance of the Company's catalogs, Internet sites and
offerings.

                     - financial highlights follow -



               The Sportsman's Guide, Inc. and Subsidiaries
                       Consolidated Balance Sheets
                               (Unaudited)
                        (In thousands of dollars)

                                September 30,  September 30,  December 31,
                                    2004            2003          2003
             ASSETS
  CURRENT ASSETS
    Cash and cash equivalents        $715         $10,810       $32,054
    Accounts receivable - net       2,725           1,853         3,034
    Inventory                      38,439          29,710        18,874
    Promotional material            3,999           3,920         2,565
    Prepaid expenses and other      2,650           2,020         1,871
    Income taxes receivable         1,505              --            --
    Deferred income taxes             951           2,270         3,176
      Total current assets         50,984          50,583        61,574
  PROPERTY AND EQUIPMENT, NET       2,691           2,296         2,248
  OTHER ASSETS
    Goodwill                       17,219              --            --
    Trade and domain name          10,200              --            --
    Non-compete agreements, net       475              --            --
    Customer lists, net               229              --            --
    Other                              10              --            --
      Total other assets           28,133              --            --
      Total assets                $81,808         $52,879       $63,822

  LIABILITIES AND SHAREHOLDERS' EQUITY
  CURRENT LIABILITIES
    Bank overdraft                 $3,246             $--           $--
    Revolving credit line           4,470              --            --
    Note payable - bank             2,500              --            --
    Accounts payable               20,657          18,463        18,950
    Accrued expenses and other
     current liabilities           14,829          11,545        17,877
      Total current liabilities    45,702          30,008        36,827
  LONG-TERM LIABILITIES            10,267             246           187
      Total liabilities            55,969          30,254        37,014
  SHAREHOLDERS' EQUITY             25,839          22,625        26,808
      Total liabilities and
       shareholders' equity       $81,808         $52,879       $63,822



               The Sportsman's Guide, Inc. and Subsidiaries
                   Consolidated Statements of Earnings
                               (Unaudited)

                For The Three Months And Nine Months Ended
                       September 30, 2004 and 2003

                  (In thousands, except per share data)

                          Three months ended        Nine months ended
                             September 30,             September 30,
                           2004         2003         2004         2003
  Sales                  $56,554      $41,213     $140,009     $123,003
  Cost of sales           40,139       28,672       97,329       84,321
    Gross profit          16,415       12,541       42,680       38,682
  Selling, general and
   administrative
   expenses               14,564       11,424       37,839       35,056
    Earnings from
     operations            1,851        1,117        4,841        3,626
  Interest expense           168           --          168           --
  Miscellaneous income
   (expense), net             --          (10)          80          (14)
    Earnings before
     income taxes          1,683        1,107        4,753        3,612
  Income tax expense         614          397        1,720        1,299
    Net earnings          $1,069         $710       $3,033       $2,313

  Net earnings per share:
    Basic                   $.23         $.15         $.64         $.49
    Diluted                 $.20         $.13         $.57         $.44

  Weighted average common
   and common equivalent
   shares outstanding:

    Basic                  4,701        4,801        4,719        4,769
    Diluted                5,312        5,355        5,320        5,241


   CONTACT:  612-344-1000
             William P. Bartkowski
             BlueFire Partners
             612-344-1012 (direct)


DATASOURCE: The Sportsman's Guide, Inc.



CONTACT:  William P. Bartkowski of BlueFire Partners, [phone],

direct, or [phone]



Web site:  http://www.sportsmansguideir.com/

http://www.tgw.com/

http://www.sportsmansguide.com/

http://www.bargainoutfitters.com/ 

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