Sportsmans Guide (NASDAQ:SGDE)
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The Sportsman's Guide Releases Record Fourth Quarter and 2004
Year-End Results; Final EPS Above Earlier Guidance; Board Declares 3-for-2
Stock Split
SOUTH ST. PAUL, Minn., March 1 /PRNewswire-FirstCall/ -- The Sportsman's
Guide, Inc. (NASDAQ:SGDE) today reported record results of operations for the
quarter and year ended December 31, 2004, with earnings per share that were
above the Company's most recent guidance. In addition, the Company's board of
directors has declared a 3-for-2 stock split in the form of a 50% stock
dividend. The split shares will be distributed on April 15, 2005 to
shareholders of record March 25, 2005. The Company has 4.7 million shares
outstanding pre-split and will have just over 7 million following the
distribution; however, the per share calculations in the results that are
disclosed and discussed in the following release have not as yet been adjusted
to reflect the split.
Sales for the quarter were $92.5 million, a 29% increase over the $71.7 million
reported for the same period one year ago. The Company reported net earnings
of $4.6 million, or $0.85 per fully diluted share for the fourth quarter,
compared to $3.8 million, or $0.71 per share, reported for the three months
ended December 31, 2003.
For the twelve months ended December 31, 2004, sales were $232.5 million, a 19%
increase over the $194.7 million reported for 2003. The Company recorded net
earnings of $7.6 million, or $1.43 per fully diluted share, for the year,
compared to net earnings of $6.2 million, or $1.16 per share, for the twelve
months ended December 31, 2003.
Company officials also noted that the fourth quarter of 2004 included 14 weeks
of activity, compared to 13 weeks one year ago. The additional week resulted
in approximately $4 million of incremental sales with minimal effect on net
earnings in the quarter or for the year.
Gregory R. Binkley, President and Chief Executive Officer of the Company,
stated, "Our 2004 results showed annual sales up just under 20% and net
earnings up 23%. These increases were due to our June 29, 2004 acquisition of
The Golf Warehouse, TGW.com, and the continuing growth of The Sportsman's Guide
base business, which had a 6% growth in sales in 2004 on a stand-alone basis
and saw its percentage of Internet-related sales to total sales increase to
approximately 42%, compared to 36% in 2003.
"Today, we are also pleased to announce the board's decision to split the
stock. It should result in greater liquidity for our shareholders and greater
visibility for our stock."
Binkley went on to note that the Company made significant progress toward
paying down the debt incurred as a result of the TGW acquisition, ending the
year with $8.6 million in cash and $5.0 million in long-term bank debt.
The Sportsman's Guide, Inc. will hold a conference call tomorrow, Wednesday,
March 2, 2005, to discuss the quarter and year-end results. 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 begin at 10:30 am, CST.
Participants may access the call by dialing 1-800-362-0571 and asking for The
Sportsman's Guide conference call. The call may also be accessed via the
Internet at http://www.sportsmansguideir.com/ .
The Sportsman's Guide is an Internet and catalog retailer offering value-priced
outdoor gear and general merchandise, with a special emphasis on outdoor
clothing, outdoor equipment, golf apparel and equipment and footwear. The
company sells through both Internet Web sites and catalogs. The Company's Web
sites include http://www.sportsmansguide.com/ , http://www.tgw.com/ and
http://www.bargainoutfitters.com/ .
- financial highlights follow -
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.
The Sportsman's Guide, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands of dollars)
December 31, December 31,
2004 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $8,616 $32,054
Accounts receivable - net 3,955 3,034
Inventory 29,148 18,874
Promotional material 3,578 2,565
Prepaid expenses and other 3,122 1,871
Restricted cash 3,011 --
Deferred income taxes 1,122 3,176
Total current assets 52,552 61,574
PROPERTY AND EQUIPMENT, NET 2,693 2,248
OTHER ASSETS
Goodwill 17,176 --
Trade and domain name 10,200 --
Other 658 --
Total other assets 28,034 --
Total assets $83,279 $63,822
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $23,832 $18,950
Funds held in escrow 3,010 --
Accrued expenses and other current liabilities 19,987 17,877
Total current liabilities 46,829 36,827
LONG-TERM LIABILITIES 5,388 187
Total liabilities 52,217 37,014
SHAREHOLDERS' EQUITY 31,062 26,808
Total liabilities and shareholders' equity $83,279 $63,822
The Sportsman's Guide, Inc. and Subsidiaries
Consolidated Statements of Earnings
For The Three Months And Years Ended
December 31, 2004 and 2003
(In thousands, except per share data)
Three months ended
December 31, Years ended
(unaudited) December 31,
2004 2003 2004 2003
Sales $92,453 $71,700 $232,462 $194,703
Cost of sales 60,752 46,318 158,081 130,639
Gross profit 31,701 25,382 74,381 64,064
Selling, general and
administrative
expenses 24,283 19,411 62,122 54,467
Earnings from
operations 7,418 5,971 12,259 9,597
Interest expense (193) -- (361) --
Miscellaneous income
(expense), net (82) 38 (2) 24
Earnings before
income taxes 7,143 6,009 11,896 9,621
Income tax expense 2,585 2,164 4,305 3,463
Net earnings $4,558 $3,845 $7,591 $6,158
Net earnings per share:
Basic $.97 $.80 $1.61 $1.29
Diluted $.85 $.71 $1.43 $1.16
Weighted average common
and common equivalent
shares outstanding:
Basic 4,717 4,834 4,719 4,785
Diluted 5,333 5,437 5,323 5,290
CONTACT: William P. Bartkowski
MeritViewPartners
612.605.8616 (direct)
DATASOURCE: The Sportsman's Guide, Inc.
CONTACT: William P. Bartkowski of MeritViewPartners, +1-612-605-8616
Web site: http://www.sportsmansguideir.com/
http://www.sportsmansguide.com/
http://www.tgw.com/
http://www.bargainoutfitters.com/