Cabela's Inc. Reports Record Fourth Quarter 2012 Results

  Cabela's Inc. Reports Record Fourth Quarter 2012 Results

 - EPS Increased 18% to $1.25 Compared to $1.06 a Year Ago, Excluding Certain
                                    Items

                      - Comparable Store Sales Up 12.0%

                        -Direct Revenue Increased 1.7%

   - New Next-Generation Stores Significantly Outperform Legacy Store Base

- After-Tax Return on Invested Capital Increased 160 Basis Points to 15.9% for
                                the Full Year

Business Wire

SIDNEY, Neb. -- February 14, 2013

Cabela's Incorporated (NYSE:CAB) today reported strong financial results for
fourth quarter fiscal 2012.

For the quarter, adjusted for certain items, total revenue increased 15.2% to
$1.133 billion; Retail store revenue increased 26.3% to $663.6 million; Direct
revenue increased 1.7% to $385.5 million; and Financial Services revenue
increased 7.2% to $83.2 million. For the quarter, comparable store sales
increased 12.0%. During the quarter, the Company recognized a $12.5 million
revenue reduction in its Financial Services business related to the previously
disclosed Visa antitrust settlement. On a reported basis, total revenue
increased 13.9% and Financial Services revenue decreased 8.9%. A detailed
reconciliation and explanation regarding the Visa antitrust settlement is
provided later in this release.

For the quarter, net income increased 19.7% to $89.8 million compared to $75.0
million in the year ago quarter, and earnings per diluted share were $1.25
compared to $1.06 in the year ago quarter, each adjusted for certain items.
The Company reported GAAP net income of $68.0 million and earnings per diluted
share of $0.95 as compared to GAAP net income of $69.8 million and earnings
per diluted share of $0.99 in the year ago quarter. Fourth quarter 2012 GAAP
results include impairment charges of $20.3 million primarily related to land
held for sale and a $12.5 million revenue reduction related to the Visa
antitrust settlement. Fourth quarter 2011 GAAP results include impairment
charges of $7.8 million mostly related to the value of economic development
bonds. See the supporting schedules to this earnings release labeled
"Reconciliation of Non-GAAP Financial Measures" for a reconciliation of the
GAAP to non-GAAP financial measures.

For fiscal 2012, net income increased 29.5% to $195.3 million compared to
$150.8 million last year, and earnings per diluted share were $2.72 compared
to $2.12 a year ago, each excluding certain items. The Company reported GAAP
net income of $173.5 million and earnings per diluted share of $2.42 as
compared to GAAP net income of $142.6 million and earnings per diluted share
of $2.00 a year ago. Fiscal 2012 GAAP results include impairment charges of
$20.3 million primarily related to land held for sale and a $12.5 million
revenue reduction related to the Visa antitrust settlement. Fiscal year 2011
results include impairment and restructuring charges of $12.2 million. See the
supporting schedules to this earnings release labeled "Reconciliation of
Non-GAAP Financial Measures" for a reconciliation of the GAAP to non-GAAP
financial measures.

"Every area of our Company performed at very high levels in the fourth
quarter," said Tommy Millner, Cabela's Chief Executive Officer. "Sales and
profit per square foot at our next-generation stores were 40% higher than our
legacy stores. Comparable store sales, aided by a surge in firearms and
ammunition, increased 12.0%, a new record, and our Direct business grew 1.7%,
the first increase in 11 quarters. Assuming more normalized sales of firearms
and ammunition, comparable store sales would have increased 5.0%. These strong
results combined to improve ROIC by 160 basis points to 15.9% for the full
year, the highest level we have seen in eight years."

"During the quarter, we made significant additional omni-channel investments
in advertising," Millner said. "These investments helped accelerate comparable
store sales and growth in Direct revenue. This acceleration has continued into
the first quarter of 2013. Additionally, we are very encouraged with increases
in new customers as it further expands our market share and has a positive
long-term impact on our consumer franchise."

For the quarter, excluding firearms and ammunition, merchandise margin
increased 60 basis points. Merchandise margin increased in each of the
Company's 13 merchandise sub categories, including firearms and ammunition.
Ongoing focus on Cabela's branded products, improved markdown management and
greater vendor collaboration contributed to this improvement. Consolidated
merchandise gross margin declined 20 basis points as a direct result of the
mix effect from the firearm and ammunition surge.

The Cabela's CLUB Visa program also posted very strong results in the quarter.
For the quarter, net charge-offs as a percentage of average credit card loans
decreased 21 basis points to 1.91% compared to 2.12% in the prior year
quarter. During the quarter, growth in average active credit card accounts
accelerated to 9.4% due to retail square footage growth and increases in new
customers in all channels. Additionally, average active credit card balance
increased 2.9%.

"During the quarter, we opened our first Outpost store in Union Gap,
Washington," Millner said. "This store is running ahead of our expectations,
and we are thrilled with how this store is performing. As a result, our Board
of Directors has authorized us to open an additional ten Outpost stores over
the next four years. These stores will be a more effective tool for us to
reach smaller markets across North America and further grow our market share.
Our strategy is to use our significant cash flows to fund retail store
expansion, and we expect to be able to open all of our planned stores in 2013
and 2014 with no external financing."

As previously announced, the Company's Board of Directors has approved a share
repurchase program designed primarily to offset shareholder dilution resulting
from the granting of equity-based compensation awards. As a result, the
Company intends to repurchase up to 750,000 shares of its common stock in open
market transactions through February 2014.

"So far this year, our revenue and profit growth remains strong," Millner
said. "This growth, along with the strong performance of our new stores, makes
us comfortable with the external earnings estimates for 2013."

                         Conference Call Information

A conference call to discuss fourth quarter fiscal 2012 operating results is
scheduled for today (Thursday, February 14, 2013) at 11:00 a.m. Eastern Time.
A webcast of the call will take place simultaneously and can be accessed by
visiting the Investor Relations section of Cabela's website at
www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

                         About Cabela's Incorporated

Cabela's Incorporated, headquartered in Sidney, Nebraska, is a leading
specialty retailer, and the world's largest direct marketer, of hunting,
fishing, camping and related outdoor merchandise. Since the Company's founding
in 1961, Cabela's® has grown to become one of the most well-known outdoor
recreation brands in the world, and has long been recognized as the World's
Foremost Outfitter®. Through Cabela's growing number of retail stores and its
well-established direct business, it offers a wide and distinctive selection
of high-quality outdoor products at competitive prices while providing
superior customer service. Cabela's also issues the Cabela's CLUB® Visa credit
card, which serves as its primary customer loyalty rewards program. Cabela's
stock is traded on the New York Stock Exchange under the symbol "CAB".

                Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are
"forward-looking statements" that are based on the Company's beliefs,
assumptions and expectations of future events, taking into account the
information currently available to the Company. Such forward-looking
statements include, but are not limited to, the Company's statements regarding
opening an additional ten Outpost stores over the next four years, opening all
planned stores in 2013 and 2014 with no external financing, repurchasing up to
750,000 shares of the Company's common stock through February 2014, and being
comfortable with the external earnings estimates for 2013. Forward-looking
statements involve risks and uncertainties that may cause the Company's actual
results, performance or financial condition to differ materially from the
expectations of future results, performance or financial condition that the
Company expresses or implies in any forward-looking statements. These risks
and uncertainties include, but are not limited to: the state of the economy
and the level of discretionary consumer spending, including changes in
consumer preferences and demographic trends; adverse changes in the capital
and credit markets or the availability of capital and credit; the Company's
ability to successfully execute its omni-channel strategy; increasing
competition in the outdoor sporting goods industry and for credit card
products and reward programs; the cost of the Company's products, including
increases in fuel prices; the availability of the Company's products due to
political or financial instability in countries where the goods the Company
sells are manufactured; supply and delivery shortages or interruptions, and
other interruptions or disruptions to the Company's systems, processes, or
controls, caused by system changes or other factors; increased or adverse
government regulations, including regulations relating to firearms and
ammunition; the Company's ability to protect its brand, intellectual property,
and reputation; the outcome of litigation, administrative, and/or regulatory
matters (including a Commissioner's charge the Company received from the Chair
of the U. S. Equal Employment Opportunity Commission in January 2011); the
Company's ability to manage credit, liquidity, interest rate, operational,
legal, and compliance risks; the Company's ability to increase credit card
receivables while managing credit quality; the Company's ability to securitize
its credit card receivables at acceptable rates or access the deposits market
at acceptable rates; the impact of legislation, regulation, and supervisory
regulatory actions in the financial services industry, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act; and other risks,
relevant factors and uncertainties identified in the Company's filings with
the SEC (including the information set forth in the "Risk Factors" section of
the Company's Form 10-K for the fiscal year ended December 31, 2011, and Form
10-Q for the fiscal quarter ended June 30, 2012), which filings are available
at the Company's website at www.cabelas.com and the SEC's website at
www.sec.gov. Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these statements. The
Company's forward-looking statements speak only as of the date they are made.
Other than as required by law, the Company undertakes no obligation to update
or revise forward-looking statements, whether as a result of new information,
future events or otherwise.



CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)

                                                            
                  Three Months Ended             Fiscal Year Ended
                  December 29,    December 31,   December 29,    December 31,
                  2012            2011           2012            2011
Revenue:
Merchandise       $ 1,048,651     $  903,926     $ 2,778,903     $ 2,505,733
sales
Financial
Services          70,745          77,660         319,399         291,746
revenue
Other revenue     1,350          2,159         14,380         13,687      
Total revenue     1,120,746      983,745       3,112,682      2,811,166   
                                                                 
Cost of
revenue:
Merchandise       668,730         575,278        1,769,161       1,613,241
costs
Cost of other     3              —             637            8           
revenue
Total cost of
revenue
(exclusive of    668,733         575,278        1,769,798       1,613,249
depreciation
and
amortization)
Selling,
distribution,
and               327,507         290,803        1,046,861       954,125
administrative
expenses
Impairment and
restructuring     20,324         7,801         20,324         12,244      
charges
                                                                 
Operating         104,182         109,863        275,699         231,548
income
                                                                 
Interest          (3,948      )   (6,105     )   (20,123     )   (24,427     )
expense, net
Other
non-operating     1,999          1,690         6,138          7,346       
income, net
                                                                 
Income before
provision for     102,233         105,448        261,714         214,467
income taxes
Provision for     34,201         35,620        88,201         71,847      
income taxes
                                                                 
Net income        $ 68,032       $  69,828     $ 173,513      $ 142,620   
                                                                 
Earnings per      $ 0.97         $  1.01       $ 2.48         $ 2.06      
basic share
Earnings per      $ 0.95         $  0.99       $ 2.42         $ 2.00      
diluted share
                                                                 
Basic weighted
average shares    70,041,784     69,166,725    69,856,258     69,194,663  
outstanding
Diluted
weighted          71,700,567     70,718,826    71,709,873     71,274,242  
average shares
outstanding



CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)

                                                             
ASSETS                                           December 29,    December 31,
                                                 2012            2011
CURRENT
Cash and cash equivalents                        $ 288,750       $ 304,679
Restricted cash of the Trust                     17,292          18,296
Accounts receivable, net                         46,081          47,127
Credit card loans (includes restricted
credit card loans of the Trust of $3,523,133     3,497,472       3,094,163
and $3,142,151), net of allowance for loan
losses of $65,600 and $73,350
Inventories                                      552,575         494,828
Prepaid expenses and other current assets        132,694         146,479
Income taxes receivable and deferred income      54,164         5,709       
taxes
Total current assets                             4,589,028       4,111,281
Property and equipment, net                      1,021,656       866,899
Land held for sale or development                23,448          38,393
Economic development bonds                       85,041          86,563
Other assets                                     28,990         30,635      
Total assets                                     $ 5,748,163    $ 5,133,771 
                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable, including unpresented          $ 285,039       $ 266,793
checks of $30,125 and $19,124
Gift instruments, and credit card and            262,653         227,414
loyalty rewards programs
Accrued expenses                                 180,906         143,695
Time deposits                                    367,350         88,401
Current maturities of secured variable           325,000         460,000
funding obligations of the Trust
Current maturities of secured long-term          —               425,000
obligations of the Trust
Current maturities of long-term debt             8,402          8,387       
Total current liabilities                        1,429,350       1,619,690
Long-term time deposits                          680,668         893,912
Secured long-term obligations of the Trust,      1,827,500       977,500
less current maturities
Long-term debt, less current maturities          328,133         336,535
Deferred income taxes                            10,571          26,367
Other long-term liabilities                      95,962          98,451
                                                                 
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; Authorized     —               —
- 10,000,000 shares; Issued - none
Common Stock, $0.01 par value; Authorized -
245,000,000 shares;
Issued - 70,545,558 and 69,641,818 shares
Outstanding - 70,053,144 and 68,840,883          705             696
shares
Additional paid-in capital                       351,161         334,925
Retained earnings                                1,036,427       862,914
Accumulated other comprehensive income           5,542           2,731
Treasury stock, at cost - 492,414 and            (17,856     )   (19,950     )
800,935 shares
Total stockholders' equity                       1,375,979      1,181,316   
Total liabilities and stockholders' equity       $ 5,748,163    $ 5,133,771 



CABELA'S INCORPORATED AND SUBSIDIARIES
SEGMENT INFORMATION
(Dollars in Thousands)
(Unaudited)

                                                            
                  Three Months Ended             Fiscal Year Ended
                  December 29,    December 31,   December 29,    December 31,
                  2012            2011           2012            2011
Revenue:
Retail            $ 663,593       $  525,607     $ 1,849,582     $ 1,550,442
Direct            385,477         378,931        930,943         956,834
Financial         70,745          77,660         319,399         291,746
Services
Other             931            1,547         12,758         12,144      
Total revenue     $ 1,120,746    $  983,745    $ 3,112,682    $ 2,811,166 
                                                                 
Operating
Income (Loss):
Retail            $ 144,151       $  108,425     $ 345,040       $ 263,010
Direct            61,678          68,055         155,237         172,163
Financial         674             15,910         74,182          59,032
Services
Other             (102,321    )   (82,527    )   (298,760    )   (262,657    )
Total operating   $ 104,182      $  109,863    $ 275,699      $ 231,548   
income
                                                                 
As a Percentage
of Total
Revenue:
Retail revenue    59.2        %   53.4       %   59.4        %   55.2        %
Direct revenue    34.4            38.5           29.9            34.0
Financial
Services          6.3             7.9            10.3            10.4
revenue
Other revenue     0.1            0.2           0.4            0.4         
Total revenue     100.0       %   100.0      %   100.0       %   100.0       %
                                                                 
As a Percentage
of Segment
Revenue:
Retail
operating         21.7        %   20.6       %   18.7        %   17.0        %
income
Direct
operating         16.0            18.0           16.7            18.0
income
Financial
Services          1.0             20.5           23.2            20.2
operating
income
Total operating
income as a       9.3             11.2           8.9             8.2
percentage of
total revenue



CABELA'S INCORPORATED AND SUBSIDIARIES
COMPONENTS OF FINANCIAL SERVICES SEGMENT REVENUE
(Dollars in Thousands)
(Unaudited)

Financial Services revenue consists of activity from the Company's credit card
operations and is comprised of interest and fee income, interchange income,
other non-interest income, interest expense, provision for loan losses, and
customer rewards costs. The following table details the components and amounts
of Financial Services revenue for the periods presented below.

                Three Months Ended               Fiscal Year Ended
                 December 29,     December 31,     December 29,    December
                 2012            2011             2012           31,
                                                                   2011
                                                                   
Interest and     $  79,562        $  73,112        $  301,699      $ 277,242
fee income
Interest         (13,713    )     (14,795    )     (54,092     )   (70,303   )
expense
Provision for    (13,529    )     (11,671    )     (42,760     )   (39,287   )
loan losses
Net interest
income, net
of provision     52,320          46,646          204,847        167,652   
for loan
losses
Non-interest
income:
Interchange      71,763           74,729           292,151         267,106
income
Other
non-interest     1,289           3,836           12,364         13,620    
income
Total
non-interest     73,052           78,565           304,515         280,726
income
Less:
Customer         (54,627    )     (47,551    )     (189,963    )   (156,632  )
rewards costs
Financial
Services         $  70,745       $  77,660       $  319,399     $ 291,746 
revenue

The following table sets forth the components of Financial Services revenue as
a percentage of average total credit card loans, including any accrued
interest and fees, for the periods presented below.
                                                     
                    Three Months Ended                    Fiscal Year Ended
                    December 29,       December 31,       December    December
                    2012              2011               29,        31,
                                                          2012        2011
                                                                      
Interest and        9.7      %         10.0     %         9.7   %     10.1  %
fee income
Interest            (1.7     )         (2.0     )         (1.7  )     (2.6  )
expense
Provision for       (1.6     )         (1.6     )         (1.4  )     (1.4  )
loan losses
Interchange         8.7                10.2               9.4         9.7
income
Other
non-interest        0.2                0.5                0.4         0.5
income
Customer            (6.7     )         (6.5     )         (6.1  )     (5.7  )
rewards costs
Financial
Services            8.6      %         10.6     %         10.3  %     10.6  %
revenue



CABELA'S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP REVENUE MEASURES
OF FINANCIAL SERVICES SEGMENT
(Unaudited)

On July13, 2012, the parties to the Visa antitrust litigation announced that
they had entered into a memorandum of understanding to enter into a settlement
agreement to resolve their claims. On November 9, 2012, the settlement
received preliminary court approval. The settlement agreement requires, among
other things, the distribution to class merchants of an amount equal to 10
basis points of default interchange across all credit rate categories for a
period of eight consecutive months. As a result of the preliminary court
approval, the Company recorded a liability of $12.5 million as of December 29,
2012, to accrue for the proposed settlement as a reduction of interchange
income in the Financial Services segment. Upon final approval, it is expected
that the Company's merchandising business will benefit modestly from this
interchange reduction and receive its share of the cash payment related to the
settlement agreement, which has not been accrued.

To supplement the Company's revenue components of our Financial Services
segment presented in accordance with generally accepted accounting principles
("GAAP"), management of the Company has disclosed two non-GAAP measures of
operating results that exclude the $12.5 million reduction of interchange
income for the proposed Visa settlement. Interchange income and total
Financial Services revenue are presented below both as reported (on a GAAP
basis) and excluding the reduction of interchange income for the proposed Visa
settlement. In light of the nature and magnitude, we believe these items
should be presented separately to enhance a reader's overall understanding of
the Company's ongoing operations as they relate to our Financial Services
segment. The following non-GAAP financial measures should be considered in
conjunction with the GAAP financial measures.

                         December 29,  December 31,  Increase     %
                           2012           2011           (Decrease)    Change
                           (Dollars in Thousands)
Three Months Ended:
Interchange income         $  71,763      $  74,729      $ (2,966 )    (4.0 )%
Adjustment for Visa        12,500        —             12,500   
antitrust settlement
Interchange income -       $  84,263     $  74,729     $ 9,534      12.8 %
2012 non-GAAP adjusted
                                                                       
Total Financial            $  70,745      $  77,660      $ (6,915 )    (8.9 )%
Services revenue
Adjustment for Visa        12,500        —             12,500   
antitrust settlement
Total Financial
Services revenue -         $  83,245     $  77,660     $ 5,585      7.2  %
2012 non-GAAP adjusted
                                                                       
Interchange income as
a percentage of
average total credit       10.3       %   10.2       %   0.1      %
card loans - 2012
non-GAAP adjusted
Financial Services
revenue as a
percentage of average      10.1       %   10.6       %   (0.5     )%
total credit card
loans - 2012 non-GAAP
adjusted
                                                                       
Fiscal Year Ended:
Interchange income         $  292,151     $  267,106     $ 25,045      9.4  %
Adjustment for Visa        12,500        —             12,500   
antitrust settlement
Interchange income -       $  304,651    $  267,106    $ 37,545     14.1 %
2012 non-GAAP adjusted
                                                                       
Financial Services         $  319,399     $  291,746     $ 27,653      9.5  %
revenue
Adjustment for Visa        12,500        —             12,500   
antitrust settlement
Financial Services
revenue - 2012             $  331,899    $  291,746    $ 40,153     13.8 %
non-GAAP adjusted
                                                                       
Interchange income as
a percentage of
average total credit       9.8        %   9.7        %   0.1      %
card loans - 2012
non-GAAP adjusted
Financial Services
revenue as a
percentage of average      10.7       %   10.6       %   0.1      %
total credit card
loans - 2012 non-GAAP
adjusted

                                                                  
                                                                      
CABELA'S INCORPORATED AND SUBSIDIARIES
KEY STATISTICS OF FINANCIAL SERVICES SEGMENT
(Dollars in Thousands Except Average Balance per Account)
(Unaudited)


Key statistics reflecting the performance of the Financial Services segment
are shown in the following charts:
                                                                      
                       Three Months Ended
                       December 29,   December 31,    Increase       % Change
                       2012            2011            (Decrease)
                                                                      
Average balance of
credit card loans      $ 3,282,039     $ 2,917,083     $ 364,956      12.5   %
(1)
Average number of
active credit card     1,635,200       1,495,242       139,958        9.4
accounts
                                                                      
Average balance per
active credit card     $ 2,007         $ 1,951         $ 56           2.9
account (1)
                                                                      
Net charge-offs on
credit card loans      $ 15,633        $ 15,493        $ 140          0.9
(1)
Net charge-offs as
a percentage of
average               1.91        %  2.12        %  (0.21     )%  

credit card loans
(1)
(1) Includes accrued interest and fees
                       Fiscal Year Ended
                       December 29,    December 31,    Increase       % Change
                       2012            2011            (Decrease)
                                                                      
Average balance of
credit card loans      $ 3,095,781     $ 2,745,118     $ 350,663      12.8   %
(1)
Average number of
active credit card     1,537,209       1,416,887       120,322        8.5
accounts
                                                                      
Average balance per
active credit card     $ 2,014         $ 1,937         $ 77           4.0
account (1)
                                                                      
Net charge-offs on
credit card loans      $ 57,803        $ 64,520        $ (6,717  )    (10.4  )
(1)
Net charge-offs as
a percentage of
average               1.87        %  2.35        %  (0.48     )%  
credit card loans
(1)
(1) Includes accrued interest and fees



CABELA'S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP RETURN ON INVESTED CAPITAL
(Unaudited)

Return on invested capital ( “ROIC”) is not a measure of financial performance
under GAAP and may not be defined and calculated by other companies in the
same manner. ROIC should be considered supplemental to and not a substitute
for financial information prepared in accordance with GAAP. The Company uses
ROIC as a measure of efficiency and effectiveness of its use of capital.

The Company measures ROIC by dividing adjusted net income by average total
capital. Adjusted net income is calculated by adding interest expense, rent
expense, and Retail segment depreciation and amortization (all after tax) to
reported net income excluding: (1) any losses on sales of assets, (2) any
impairment charges or fixed asset write-downs, and (3) any accumulated
amortization of deferred grant income caused by other-than-temporary
impairment losses of economic development bonds (all after tax). Total capital
is calculated by adding current maturities of long-term debt, operating leases
capitalized at eight times next year’s annual minimum lease payments, and
total stockholders’ equity to long-term debt (excluding all debt of the
Financial Services segment) and then subtracting cash and cash equivalents
(excluding cash and cash equivalents of the Financial Services segment).
Average total capital is calculated as the sum of current and prior year
ending total capital divided by two. The following table reconciles the
components of ROIC to the most comparable GAAP financial measures.

                                        Fiscal Year Ended
                                         December29, 2012  December31, 2011
                                         (Dollars in Thousands)
                                                             
Net income as reported                   $   173,513        $   142,620    
Add back:
Interest expense                         20,171              24,454
Rent expense                             13,605              9,541
Depreciation and amortization - Retail   46,997              41,506
segment
Exclude:
Impairment charges or fixed asset        19,015              4,771
write-downs
Accumulated amortization of deferred     1,309              6,538          
grant income
                                         101,097            86,810         
                                                             
After tax effect                         67,027             57,729         
Effective tax rate                       33.7           %    33.5           %
                                                            
Adjusted net income                      $   240,540        $   200,349    
                                                             
Total capital:
Current maturities of long-term debt     $   8,402           $   8,387
Operating leases capitalized at 8x
next year's annual minimum lease         95,168              85,968
payments
Total stockholders' equity               1,375,979           1,181,316
Long-term debt (excluding Financial      328,133            336,535        
Services segment)
                                         1,807,682           1,612,206
Less:
Cash and cash equivalents                (288,750       )    (304,679       )
Add back cash and cash equivalents at    91,365             117,035        
the Financial Services segment
                                         (197,385       )    (187,644       )
                                                             
Adjusted total capital                   $   1,610,297      $   1,424,562  
                                                             
Average total capital                    $   1,517,430      $   1,397,951  
                                                             
Return on Invested Capital               15.9           %    14.3           %



CABELA'S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

To supplement the Company's consolidated statements of income presented in
accordance with GAAP, management of the Company has disclosed non-GAAP
measures of operating results that exclude certain items. Total revenue,
impairment and restructuring charges, operating income, provision for income
taxes, net income, and earnings per basic and diluted share are presented
below both as reported (on a GAAP basis) and excluding (i) the reduction of
interchange income for the proposed Visa settlement recorded in the three
months and fiscal year ended December 29, 2012, and (ii) the impairment and
restructuring charges recorded in the three months and fiscal years ended
December 29, 2012, and December 31, 2011, respectively. For the 2012 periods,
the impairment charges relate primarily to land held for sale, and for the
2011 periods, the impairment and restructuring charges include write-downs on
economic development bonds and land held for sale and severance and related
costs. In light of the nature and magnitude, we believe these items should be
presented separately to enhance a reader's overall understanding of the
Company's ongoing operations. These non-GAAP financial measures should be
considered in conjunction with the GAAP financial measures.

Management believes these non-GAAP financial results provide useful
supplemental information to investors regarding the underlying business trends
and performance of the Company's ongoing operations and are useful for
period-over-period comparisons of such operations. In addition, management
evaluates results using non-GAAP adjusted operating income, adjusted net
income, and adjusted earnings per diluted share. These non-GAAP measures
should not be considered in isolation or as a substitute for operating income,
net income, earnings per diluted share, or any other measure calculated in
accordance with GAAP. The following table reconciles these financial measures
to the related GAAP financial measures for the periods presented.

                Three Months Ended
                 December29, 2012                           December31, 2011
                 GAAP Basis      Amounts      Non-GAAP        GAAP Basis    Amounts     Non-GAAP
                 As Reported    Added Back  As Adjusted     As Reported  Added      As Adjusted
                                                                            Back
                 (Dollars in Thousands Except Earnings Per Share)
                                                                                        
Total revenue    $ 1,120,746     $ 12,500     $ 1,133,246     $ 983,745     $ —         $ 983,745
(1)
                                                                                        
Total cost of
revenue
(exclusive of    668,733         —            668,733         575,278       —           575,278
depreciation
and
amortization)
Selling,
distribution,
and              327,507         —            327,507         290,803       —           290,803
administrative
expenses
Impairment and
restructuring    20,324         (20,324  )   —              7,801        (7,801  )   —         
charges (2)
                                                                                        
Operating        104,182         32,824       137,006         109,863       7,801       117,664
income
                                                                                        
Interest         (3,948      )   —            (3,948      )   (6,105    )   —           (6,105    )
expense, net
Other
non-operating    1,999          —           1,999          1,690        —          1,690     
income
Income before
provision for    102,233         32,824       135,057         105,448       7,801       113,249
income taxes
Provision for    34,201         11,062      45,263         35,620       2,626      38,246    
income taxes
                                                                                        
Net income       $ 68,032       $ 21,762    $ 89,794       $ 69,828     $ 5,175    $ 75,003  
                                                                                        
Earnings per     $ 0.97         $ 0.31      $ 1.28         $ 1.01       $ 0.07     $ 1.08    
basic share
                                                                                        
Earnings per     $ 0.95         $ 0.30      $ 1.25         $ 0.99       $ 0.07     $ 1.06    
diluted share

                Fiscal Year Ended
                 December29, 2012                           December31, 2011
                 GAAP Basis      Amounts      Non-GAAP        GAAP Basis      Amounts     Non-GAAP
                 As Reported    Added Back  As Adjusted     As Reported    Added      As Adjusted
                                                                              Back
                 (Dollars in Thousands Except Earnings Per Share)
                                                                                          
Total revenue    $ 3,112,682     $ 12,500     $ 3,125,182     $ 2,811,166     $ —         $ 2,811,166
(1)
                                                                                          
Total cost of
revenue
(exclusive of    1,769,798       —            1,769,798       1,613,249       —           1,613,249
depreciation
and
amortization)
Selling,
distribution,
and              1,046,861       —            1,046,861       954,125         —           954,125
administrative
expenses
Impairment and
restructuring    20,324         (20,324  )   —              12,244         (12,244 )   —           
charges (2)
                                                                                          
Operating        275,699         32,824       308,523         231,548         12,244      243,792
income
                                                                                          
Interest         (20,123     )   —            (20,123     )   (24,427     )   —           (24,427     )
expense, net
Other
non-operating    6,138          —           6,138          7,346          —          7,346       
income
Income before
provision for    261,714         32,824       294,538         214,467         12,244      226,711
income taxes
Provision for    88,201         11,062      99,263         71,847         4,102      75,949      
income taxes
                                                                                          
Net income       $ 173,513      $ 21,762    $ 195,275      $ 142,620      $ 8,142    $ 150,762   
                                                                                          
Earnings per     $ 2.48         $ 0.31      $ 2.79         $ 2.06         $ 0.12     $ 2.18      
basic share
                                                                                          
Earnings per     $ 2.42         $ 0.30      $ 2.72         $ 2.00         $ 0.12     $ 2.12      
diluted share

(1) Reflects an accrual for a reduction in interchange income related to the
    proposed settlement of the Visa antitrust litigation.
    Reflects impairment losses recognized in the three months and fiscal year
    ended December 29, 2012. primarily on land held for sale. In the three
(2) months and fiscal year ended December 31, 2011, reflects impairment losses
    primarily on economic development bonds and land held for sale as well as
    restructuring charges for severance and related benefits.

Contact:

Investor Contact:
Cabela's Incorporated
Chris Gay, 308-255-2905
or
Media Contact:
Cabela's Incorporated
Joe Arterburn, 308-255-1204
 
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