Cabela's Inc. Reports Record First Quarter 2013 Results

  Cabela's Inc. Reports Record First Quarter 2013 Results

            - First Quarter Diluted EPS $0.70 vs. $0.40 a Year Ago

               - First Quarter Comparable Store Sales Up 24.0%

                       - Direct Revenue Increased 18.4%

        - Merchandise Gross Margin Increased 110 Basis Points to 35.6%

      - After-Tax Return on Invested Capital Increased 210 Basis Points

Business Wire

SIDNEY, Neb. -- April 25, 2013

Cabela's Incorporated (NYSE:CAB) today reported strong financial results for
first quarter fiscal 2013.

For the quarter, total revenue increased 28.7% to $802.5 million; Retail store
revenue increased 41.0% to $486.7 million; Direct revenue increased 18.4% to
$225.2 million; and Financial Services revenue increased 2.8% to $85.8
million. For the quarter, comparable store sales increased 24.0%. For the
quarter, net income increased 72.9% to $49.8 million compared to $28.8 million
in the year ago quarter, and earnings per diluted share were $0.70 compared to
$0.40 in the year ago quarter.

"First quarter results exceeded our expectations on every line of the income
statement," said Tommy Millner, Cabela's Chief Executive Officer. "In addition
to expected increases in firearms and ammunition sales, we saw particularly
strong performance in softgoods and footwear. Revenue increases in the latter
part of March were stronger than anticipated, which allowed us to outperform
our March 12^th earnings pre-announcement."

"We are particularly pleased with the broad strength we saw in comparable
store sales," Millner said. "Comp store sales increased in all stores and in
10 of 13 merchandise subcategories. In addition to firearms and ammunition, we
realized particularly strong growth in softgoods, footwear, optics and
archery. Excluding firearms and ammunition, comp store sales increased 9%."

"We are further encouraged with the exceptional performance of our new
stores," Millner said. "During the quarter, we opened two next-generation
stores in Columbus, Ohio, and Grandville, Michigan, as well as an Outpost
store in Saginaw, Michigan. These stores opened very strong, are exceeding
expectations and are not cannibalizing nearby legacy stores. Sales and profit
per square foot in new stores continue to perform 30-40% better than legacy
stores. Given the strong performance of new stores, our Board of Directors is
confident in our continued Retail store expansion as witnessed by our new
store announcements earlier this morning."

"In addition to the strong performance in our Retail segment, we are very
pleased with the strong growth in our Direct channel," Millner said. "We are
still in the early stages of our Direct business turnaround and are encouraged
with the early results of our omni-channel marketing initiatives and
print-to-digital transformation. Our new advertising campaign has been
extremely well received and provides a very deep emotional connection with our
customers. As we look forward, we expect further refinements in site content,
navigation and overall experience to further benefit our now growing Direct

Merchandise gross margin increased 110 basis points to 35.6% compared to the
prior year quarter. Merchandise margin increased in 11 of 13 subcategories.
Higher margins in nearly all categories, including firearms and ammunition,
combined with strong sales of softgoods and footwear, as well as fewer sales
discounts, more than overcame the mix effect of lower margin firearms and

“Tight management of operating expense is another key focus of ours," Millner
said. "During the quarter, operating expenses as a percent of revenue dropped
330 basis points compared to the prior year quarter. This expense management,
combined with higher gross margin, resulted in first quarter operating margin
of 9.9%, a new first quarter record. For the remainder of the year, we
continue to expect operating expenses to grow at a slower rate than revenue.”

The Cabela's CLUB Visa program had yet another solid quarter. During the
quarter, growth in average active credit card accounts accelerated to 10.2%
due to retail store expansion and increases in new customers in all channels.
Revenue in the year ago quarter benefited from a $6.3 million reduction in the
allowance for loan losses. This benefit was just $0.9 million in the first
quarter of this year. This difference impacted Financial Services revenue
growth by 650 basis points. For the quarter, net charge-offs as a percentage
of average credit card loans decreased 14 basis points to 1.86% compared to
2.00% in the prior year quarter.

"These strong results led to further improvements in return on invested
capital, which increased 210 basis points compared to the prior year quarter,"
Millner said. "This is the 15^th consecutive quarter of increasing return on
capital. With our strong operational improvements, we are confident in our
ability to generate even further improvements in return on invested capital."

"We are extremely pleased with our strong first quarter results and our
ability to increase sales and margin while controlling costs," Millner said.
"Our Retail stores are performing at very high levels, and our Direct business
is starting to show real improvement. As a result, we expect our
outperformance in the first quarter to flow through to our full year results,
and we are comfortable with the current quarterly breakdown of external
earnings estimates for 2013."

                         Conference Call Information

A conference call to discuss first quarter fiscal 2013 operating results is
scheduled for today (Thursday, April 25, 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 A replay of the call will be archived on

                         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
growing operating expenses at a slower rate than revenue for the remainder of
the year, generating even further improvements in return on invested capital,
the outperformance in the first quarter flowing through to the Company's full
year results, and comfort with the current quarterly breakdown of 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 29, 2012), which filings are available
at the Company's website at and the SEC's website at 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.

(Dollars in Thousands Except Earnings Per Share)
                                     Three Months Ended
                                         March 30,         March 31,
                                         2013                 2012
Merchandise sales                        $ 711,713            $ 535,277
Financial Services revenue                 85,772               83,455
Other revenue                             5,012              4,772      
Total revenue                             802,497            623,504    
Cost of revenue:
Merchandise costs (exclusive of            458,627              350,720
depreciation and amortization)
Cost of other revenue                     68                 39         
Total cost of revenue (exclusive
of depreciation and                        458,695              350,759
Selling, distribution, and                264,687            226,169    
administrative expenses
Operating income                           79,115               46,576
Interest expense, net                      (5,356     )         (4,504     )
Other non-operating income, net           1,539              1,401      
Income before provision for                75,298               43,473
income taxes
Provision for income taxes                25,451             14,647     
Net income                               $ 49,847            $ 28,826     
Earnings per basic share                 $ 0.71              $ 0.42       
Earnings per diluted share               $ 0.70              $ 0.40       
Basic weighted average shares             70,157,744         69,454,225 
Diluted weighted average shares           71,372,824         71,287,155 

(Dollars in Thousands Except Par Values)
                             March 30,         December 29,      March 31,
                             2013              2012              2012
Cash and cash                $ 363,747         $ 288,750         $ 157,216
Restricted cash of the         19,401            17,292            18,499
Accounts receivable, net       26,826            46,081            21,974
Credit card loans
(includes restricted
credit card loans of the
Trust of $3,375,103,
$3,523,133, and              3,334,619         3,497,472         2,908,411
$2,955,274), net of
allowance for loan
losses of $64,700,
$65,600, and $67,050
Inventories                    613,065           552,575           539,410
Prepaid expenses and           147,782           132,694           142,270
other current assets
Income taxes receivable
and deferred income           46,954          54,164          43,791
Total current assets           4,552,394         4,589,028         3,831,571
Property and equipment,        1,074,169         1,021,656         894,946
Land held for sale             18,707            23,448            38,415
Economic development           84,463            85,041            88,715
Other assets                  30,504          28,990          27,754
Total assets                 $ 5,760,237      $ 5,748,163      $ 4,881,401
Accounts payable,
including unpresented        $ 388,286         $ 285,039         $ 257,051
checks of $41,442,
$28,928, and $14,599
Gift instrument, credit
card rewards, and              248,902           262,653           214,314
loyalty rewards programs
Accrued expenses               126,899           180,906           95,814
Time deposits                  355,722           367,350           173,233
Current maturities of
secured variable funding       —                 325,000           190,000
obligations of the Trust
Current maturities of         8,406           8,402           8,391
long-term debt
Total current                  1,128,215         1,429,350         938,803
Long-term time deposits        613,645           680,668           844,992
Secured long-term
obligations of the             2,154,750         1,827,500         1,402,500
Trust, less current
Long-term debt, less           319,923           328,133           331,852
current maturities
Deferred income taxes          14,669            10,571            30,069
Other long-term                100,395           95,962            97,692
Preferred stock, $0.01
par value; Authorized –        —                 —                 —
Issued – none
Common stock, $0.01 par
Class A Voting,
Authorized – 245,000,000
Issued – 70,545,558,
70,545,558, and
Outstanding –
70,494,063, 70,053,144,        705               705               703
and 70,354,968 shares
Additional paid-in             338,465           351,161           338,420
Retained earnings              1,086,274         1,036,427         891,740
Accumulated other              5,982             5,542             4,630
comprehensive income
Treasury stock, at cost
– 51,495, 492,414, and        (2,786    )      (17,856   )      —
no shares
Total stockholders’           1,428,640       1,375,979       1,235,493
Total liabilities and        $ 5,760,237      $ 5,748,163      $ 4,881,401
stockholders’ equity


                                               Three Months Ended
                                               March 30,         March 31,
                                               2013              2012
                                               (Dollars in Thousands)
Retail                                         $ 486,749         $ 345,331
Direct                                           225,158           190,195
Financial Services                               85,772            83,455
Other                                           4,818           4,523   
Total revenue                                  $ 802,497        $ 623,504 
Operating Income (Loss):
Retail                                         $ 84,678          $ 44,227
Direct                                           44,897            34,174
Financial Services                               24,101            29,002
Other                                           (74,561 )        (60,827 )
Total operating income                         $ 79,115         $ 46,576  
As a Percentage of Total Revenue:
Retail revenue                                   60.6    %         55.4    %
Direct revenue                                   28.1              30.5
Financial Services revenue                       10.7              13.4
Other revenue                                   0.6             0.7     
Total revenue                                   100.0   %        100.0   %
As a Percentage of Segment Revenue:
Retail operating income                          17.4    %         12.8    %
Direct operating income                          19.9              18.0
Financial Services operating income              28.1              34.8
Total operating income as a percentage           9.9               7.5
of total revenue




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
                                 March 30,            March 31,
                                 2013                  2012
                                 (In Thousands)
Interest and fee                 $   81,249            $   73,108
Interest expense                     (13,851   )           (13,891   )
Provision for loan                  (12,775   )          (6,646    )
Net interest income,
net of provision for                54,623              52,571    
loan losses
Non-interest income:
Interchange income                   77,630                68,427
Other non-interest                  1,283               4,039     
Total non-interest                   78,913                72,466
Less: Customer rewards              (47,764   )          (41,582   )
Financial Services               $   85,772           $   83,455    
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
                                 March 30,             March 31,
                                 2013                  2012
Interest and fee                     9.7       %           10.0      %
Interest expense                     (1.7      )           (2.0      )
Provision for loan                   (1.5      )           (0.8      )
Interchange income                   9.3                   9.2
Other non-interest                   0.2                   0.4
Customer rewards costs              (5.7      )          (5.6      )
Financial Services                  10.3      %          11.2      %




Key statistics reflecting the performance of the Financial Services business
are shown in the following charts:
                     Three Months Ended
                     March 30,          March 31,       Increase       %
                     2013                2012            (Decrease)     Change
                     (Dollars in Thousands Except Average Balance per Account)
balance of           $  3,346,588        $ 2,967,556     $ 379,032      12.8 %
credit card
loans (1)
Average number
of active               1,633,551          1,482,452       151,099      10.2
credit card
balance per
active credit        $  2,049            $ 2,002         $ 47           2.3
card account
charge-offs on       $  15,585           $ 14,846        $ 739          5.0
credit card
loans (1)
charge-offs as
a percentage        1.86       %     2.00      %   (0.14   )%  
of average
credit card
loans (1)
(1) Includes
interest and


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