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
Cabela's Inc. Reports Record Fourth Quarter 2012 Results
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