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Cabela's Inc. Reports Record Second Quarter 2013 Results



  Cabela's Inc. Reports Record Second Quarter 2013 Results

  - Second Quarter Diluted EPS Increased 31.9% to $0.62 vs. $0.47 a Year Ago

               - Second Quarter Comparable Store Sales Up 10.5%

                       - Direct Revenue Increased 13.7%

        - Merchandise Gross Margin Increased 30 Basis Points to 37.7%

      - After-Tax Return on Invested Capital Increased 160 Basis Points

Business Wire

SIDNEY, Neb. -- July 25, 2013

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

For the quarter, total revenue increased 20.7% to $756.8 million; Retail store
revenue increased 25.8% to $483.9 million; Direct revenue increased 13.7% to
$180.1 million; and Financial Services revenue increased 11.7% to $88.6
million. Comparable store sales increased 10.5%. For the quarter, net income
increased 31.5% to $44.5 million compared to $33.9 million in the year ago
quarter, and earnings per diluted share were $0.62 compared to $0.47 in the
year ago quarter. Year to date cash flows from operations were $183 million
compared to $70 million for the same period a year ago.

"This strong showing reflects excellent performance by our next-generation
stores and our omni-channel marketing efforts," said Tommy Millner, Cabela's
Chief Executive Officer. "Retail expansion continues as a highlight. Our
next-generation stores provide the combination of exceptional customer
experience and great use of retail space. These next-generation stores
continue to yield sales and profit per square foot an extraordinary 40-plus
percent better than our legacy stores. Additionally, our legacy stores
continue to show improvement in revenue and profit per square foot themselves.
We are excited as we continue to accelerate retail square footage expansion."

The 10.5% increase in comp store sales is the seventh consecutive quarter of
comp store sales improvement. Excluding firearms, comp store sales increased
9.0% with comp store sales increasing in 32 of 33 stores and in 10 of 13
merchandise subcategories. Furthermore, next-generation stores generated comp
store sales that were  600 basis points higher than the legacy stores. In
addition to firearms and shooting, hunting apparel, archery and optics were
particularly strong.

"Direct revenue increased for the third consecutive quarter," Millner said.
"We have made substantial progress in improving our Direct business with more
improvement to come. During the quarter, we increased our marketing efforts
behind special events such as Spring Great Outdoor Days and Father's Day. In
the second half, our omni-channel initiatives will be focused on seamlessly
providing the best possible customer experience across all sales channels."

Merchandise gross margin improved 30 basis points to 37.7% compared to the
prior year quarter. Merchandise margin increased in 10 of 13 subcategories.
Higher margins in most subcategories more than offset the mix effect of lower
margin firearms and ammunition.

"It is important to note that our strong sales, improved merchandise margin
and a favorable tax rate together allowed us to sharply increase our business
building expenditures in the quarter," Millner said. "Our plan to do so was
discussed in our first quarter earnings conference call. Specifically, we
raised our national advertising, direct marketing spend, and store opening and
store labor expense, all while still exceeding our profit objectives. Early
success of our 'It's In Your Nature' campaign led us to significantly expand
the scope of this national brand advertising."

The tax rate in the quarter was 30.5% compared to 35.9% in the year ago
quarter. More effective tax planning in the second quarter of 2013, as well as
a state income tax settlement in the second quarter a year ago, led to this
reduction in the tax rate. The tax rate is expected to be 32.5-33.5% for the
remainder of 2013 and should continue throughout 2014.

The Cabela's CLUB Visa program had another solid quarter. During the quarter,
growth in average active credit card accounts accelerated to 10.7% due to
increases in new customers, primarily in the Retail and Internet channels. For
the quarter, net charge-offs as a percentage of average credit card loans
increased to 1.87% compared to 1.86% in the prior year quarter. Increased
financial services revenue was driven by increases in interest and fee income
as well as interchange income.

"Return on invested capital improved by 160 basis points over the same quarter
a year ago," Millner said. "With our strong operational improvements, we are
confident in our ability to generate even further improvements in return on
invested capital."

"We are certainly pleased with our strong second quarter results and
investments we have made to further build the future health of our Company,"
Millner said. "Our retail stores are performing at very high levels, and our
Direct business is showing continued improvement. As a result, we are
comfortable with the current external earnings estimates for the third and
fourth quarter of 2013."

                         Conference Call Information

A conference call to discuss second quarter fiscal 2013 operating results is
scheduled for today (Thursday, July 25, 2013) at 9:00 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
its tax rate being 32.5-33.5% for the remainder of 2013 and continuing
throughout 2014, generating even further improvements in return on invested
capital, and comfort with current external earnings estimates for the third
and fourth quarter of 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 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)
 
                   Three Months Ended            Six Months Ended
                   June 29,       June 30,       June 29,        June 30,
                   2013           2012           2013            2012
Revenue:
Merchandise        $  663,684     $  542,662     $ 1,375,397     $ 1,077,939
sales
Financial
Services           88,578         79,267         174,350         162,722
revenue
Other revenue      4,543          5,325          9,555           10,097       
Total revenue      756,805        627,254        1,559,302       1,250,758    
Cost of
revenue:
Merchandise
costs
(exclusive of      413,465        339,782        872,092         690,502
depreciation
and
amortization)
Cost of other      —              595            68              634          
revenue
Total cost of
revenue
(exclusive of      413,465        340,377        872,160         691,136
depreciation
and
amortization)
Selling,
distribution,
and                275,468        229,049        540,155         455,218
administrative
expenses
Impairment and
restructuring      937            —              937             —            
charges
                                                                  
Operating          66,935         57,828         146,050         104,404
income
                                                                  
Interest           (3,914     )   (6,444     )   (9,270      )   (10,948     )
expense, net
Other
non-operating      1,108          1,450          2,647           2,851        
income, net
                                                                  
Income before
provision for      64,129         52,834         139,427         96,307
income taxes
Provision for      19,584         18,964         45,035          33,611       
income taxes
Net income         $  44,545      $  33,870      $ 94,392        $ 62,696     
                                                                  
Earnings per       $  0.63        $  0.48        $ 1.34          $ 0.90       
basic share
Earnings per       $  0.62        $  0.47        $ 1.32          $ 0.87       
diluted share
                                                                  
Basic weighted
average shares     70,503,889     70,034,486     70,330,817      69,744,356   
outstanding
Diluted
weighted           71,687,776     71,542,102     71,607,333      71,995,918   
average shares
outstanding
                                                                              

 
CABELA'S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)
                                                                
                                 June 29,        December 29,    June 30,
                                 2013            2012            2012
ASSETS
CURRENT
Cash and cash equivalents        $ 345,504       $ 288,750       $ 347,389
Restricted cash of the Trust     19,412          17,292          15,826
Held-to-maturity investment      135,000         —               —
securities
Accounts receivable, net         24,243          46,081          24,400
Credit card loans (includes
restricted credit card loans
of the Trust of $3,477,891,

  $3,523,133, and $3,038,415),   3,442,685       3,497,472       2,994,459
net of allowance for loan
losses of $62,500,

  $65,600, and $67,050
Inventories                      696,101         552,575         577,120
Prepaid expenses and other       85,547          132,694         134,999
current assets
Income taxes receivable and      40,090          54,164          31,142       
deferred income taxes
Total current assets             4,788,582       4,589,028       4,125,335
Property and equipment, net      1,125,591       1,021,656       928,442
Land held for sale               18,708          23,448          36,666
Economic development bonds       79,043          85,041          88,335
Other assets                     31,296          28,990          28,919       
Total assets                     $ 6,043,220     $ 5,748,163     $ 5,207,697  
                                                                  
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT
Accounts payable, including
unpresented checks of $24,571,   $ 337,389       $ 285,039       $ 273,662
$28,928, and $23,287
Gift instrument, credit card
rewards, and loyalty rewards     254,968         262,653         221,449
programs
Accrued expenses                 137,551         180,906         109,699
Time deposits                    364,487         367,350         261,340
Current maturities of secured
variable funding obligations     —               325,000         —
of the Trust
Current maturities of            8,410           8,402           8,394        
long-term debt
Total current liabilities        1,102,805       1,429,350       874,544
Long-term time deposits          825,023         680,668         796,704
Secured long-term obligations
of the Trust, less current       2,154,750       1,827,500       1,827,500
maturities
Long-term debt, less current     374,854         328,133         331,725
maturities
Deferred income taxes            13,401          10,571          31,084
Other long-term liabilities      101,539         95,962          98,473
                                                                  
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par
value; Authorized – 10,000,000   —               —               —
shares; Issued – none
Common stock, $0.01 par value:
Class A Voting, Authorized –
245,000,000 shares;
Issued – 70,563,558,
70,545,558, and 70,542,289
shares;
Outstanding – 70,549,821,
70,053,144, and 69,742,289       706             705             705
shares
Additional paid-in capital       338,397         351,161         346,007
Retained earnings                1,130,819       1,036,427       925,610
Accumulated other                1,674           5,542           4,322
comprehensive income
Treasury stock, at cost –
13,737, 492,414, and 800,000     (748        )   (17,856     )   (28,977     )
shares
Total stockholders’ equity       1,470,848       1,375,979       1,247,667    
Total liabilities and            $ 6,043,220     $ 5,748,163     $ 5,207,697  
stockholders’ equity
                                                                              

 
CABELA'S INCORPORATED AND SUBSIDIARIES
SEGMENT INFORMATION
(Dollars in Thousands)
(Unaudited)
                                                                    
                                                                  
                 Three Months Ended              Six Months Ended
                 June 29,        June 30,        June 29,          June 30,
                 2013            2012            2013              2012
                                                  
Revenue:
Retail           $ 483,923       $ 384,693       $ 970,672         $ 730,024
Direct           180,124         158,453         405,282           348,648
Financial        88,578          79,267          174,350           162,722
Services
Other            4,180           4,841           8,998             9,364        
Total            $ 756,805       $ 627,254       $ 1,559,302       $ 1,250,758  
revenue
                                                                    
Operating
Income
(Loss):
Retail           $ 91,073        $ 71,224        $ 175,751         $ 115,451
Direct           30,731          29,165          75,628            63,339
Financial        25,915          21,276          50,016            50,278
Services
Other            (80,784   )     (63,837   )     (155,345    )     (124,664    )
Total
operating        $ 66,935        $ 57,828        $ 146,050         $ 104,404    
income
                                                                    
As a
Percentage
of Total
Revenue:
Retail           63.9      %     61.3      %     62.2        %     58.4        %
revenue
Direct           23.8            25.3            26.0              27.9
revenue
Financial
Services         11.7            12.6            11.2              13.0
revenue
Other            0.6             0.8             0.6               0.7          
revenue
Total            100.0     %     100.0     %     100.0       %     100.0       %
revenue
                                                                    
As a
Percentage
of Segment
Revenue:
Retail
operating        18.8      %     18.5      %     18.1        %     15.8        %
income
Direct
operating        17.1            18.4            18.7              18.2
income
Financial
Services         29.3            26.8            28.7              30.9
operating
income
Total
operating
income as
a                8.8             9.2             9.4               8.3
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                Six Months Ended
                 June 29,         June 30,         June 29,        June 30,
                 2013             2012             2013            2012
                                                                              
Interest and     $  81,189        $  72,085        $  162,438      $ 145,193
fee income
Interest         (15,937    )     (12,689    )     (29,788     )   (26,580   )
expense
Provision for    (11,851    )     (12,198    )     (24,626     )   (18,844   )
loan losses
Net interest
income, net
of provision     53,401           47,198           108,024         99,769     
for loan
losses
Non-interest
income:
Interchange      85,697           74,939           163,327         143,366
income
Other
non-interest     1,400            3,981            2,683           8,020      
income
Total
non-interest     87,097           78,920           166,010         151,386
income
Less:
Customer         (51,920    )     (46,851    )     (99,684     )   (88,433   )
rewards costs
                                                                              
Financial
Services         $  88,578        $  79,267        $  174,350      $ 162,722  
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                Six Months Ended
                 June 29,         June 30,         June 29,        June 30,
                 2013             2012             2013            2012
                                                                              
Interest and     9.6        %     9.6        %     9.7         %   9.8       %
fee income
Interest         (1.9       )     (1.6       )     (1.8        )   (1.8      )
expense
Provision for    (1.4       )     (1.6       )     (1.5        )   (1.2      )
loan losses
Interchange      10.1             10.0             9.7             9.6
income
Other
non-interest     0.2              0.4              0.2             0.6
income
Customer         (6.1       )     (6.4       )     (5.9        )   (6.0      )
rewards costs
Financial
Services         10.5       %     10.4       %     10.4        %   11.0      %
revenue
                                                                              

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

On July 13, 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. However, in May 2013, a group of
plaintiffs opted out of the proposed settlement. Consequently, the Company
re-evaluated the impact of the 10 basis point reduction of default interchange
and determined that its estimated liability for the proposed settlement be
reduced by $1.2 million in the second quarter ended June 29, 2013, resulting
in a liability of $11.3 million outstanding as of June 29, 2013. 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 its Financial Services
segment presented in accordance with generally accepted accounting principles
("GAAP"), the Company has disclosed two non-GAAP measures of operating results
that exclude the adjustment of $1.2 million recorded in the second quarter of
June 29, 2013, as an increase to 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
adjustment to interchange income for the proposed Visa settlement. In light of
the nature and magnitude, the Company believes these items should be presented
separately to enhance a reader's overall understanding of the Company's
ongoing operations as they relate to its Financial Services segment. The
following non-GAAP financial measures should be considered in conjunction with
the GAAP financial measures.

 
                    June 29,          June 30,          Increase          %
                    2013              2012                                Change
                                                        (Decrease)
Three
Months
Ended:
Interchange         $ 85,697          $ 74,939          $ 10,758          14.4 %
income
Adjustment
for Visa            (1,200    )       —                 (1,200   )
antitrust
settlement
Interchange
income -
2013                $ 84,497          $ 74,939          $ 9,558           12.8
non-GAAP
adjusted
                                                                           
Total
Financial           $ 88,578          $ 79,267          $ 9,311           11.7
Services
revenue
Adjustment
for Visa            (1,200    )       —                 (1,200   )
antitrust
settlement
Total
Financial
Services
revenue -           $ 87,378          $ 79,267          $ 8,111           10.2
2013
non-GAAP
adjusted
                                                                           
Interchange
income as a
percentage
of average
total
credit card         10.0      %       10.0      %       —        %
loans -

2013
non-GAAP
adjusted
                                                                           
Financial
Services
revenue as
a
percentage
of average
total               10.4      %       10.4      %       —        %
credit card

loans -
2013
non-GAAP
adjusted
                                                                           
Six Months
Ended:
                                                                           
Interchange         $ 163,327         $ 143,366         $ 19,961          13.9 %
income
Adjustment
for Visa            (1,200    )       —                 (1,200   )
antitrust
settlement
Interchange
income -
2013                $ 162,127         $ 143,366         $ 18,761          13.1
non-GAAP
adjusted
                                                                           
Financial
Services            $ 174,350         $ 162,722         $ 11,628          7.1
revenue
Adjustment
for Visa            (1,200    )       —                 (1,200   )
antitrust
settlement
Financial
Services
revenue -           $ 173,150         $ 162,722         $ 10,428          6.4
2013
non-GAAP
adjusted
                                                                           
Interchange
income as a
percentage
of average
total
credit card         9.6       %       9.6       %       —        %
loans -

2013
non-GAAP
adjusted
                                                                           
Financial
Services
revenue as
a
percentage
of average
total               10.3      %       11.0      %       (0.7     )%
credit card

loans -
2013
non-GAAP
adjusted
 

CABELA'S INCORPORATED AND SUBSIDIARIES
KEY STATISTICS OF FINANCIAL SERVICES BUSINESS
(Unaudited)

Key statistics reflecting the performance of the Financial Services business
are shown in the following charts for the periods presented below.

                                                       
                    Three Months Ended                 
                    June 29,            June 30,            Increase          %

                    2013                2012                (Decrease)        Change
                    (Dollars in Thousands Except Average Balance per Account)
                                                                               
Average
balance of          $ 3,387,851         $ 3,001,213         $ 386,638         12.9 %
credit card
loans (1)
Average
number of
active              1,651,288           1,492,033           159,255           10.7
credit card
accounts
                                                                               
Average
balance per
active              $ 2,052             $ 2,011             $ 41              2.0
credit card
account (1)
                                                                               
Net
charge-offs
on credit           $ 15,879            $ 13,948            $ 1,931           13.8
card loans
(1)
Net
charge-offs
as a
percentage
of average          1.87        %       1.86        %       0.01      %        

 credit
card loans
(1)
(1) Includes accrued interest and fees
                                                       

 
                    Six Months Ended                                          
                    June 29,            June 30,            Increase           %

                    2013                2012                (Decrease)         Change
                    (Dollars in Thousands Except Average Balance per Account)
                                                                                
Average
balance of          $ 3,367,002         $ 2,984,384         $ 382,618          12.8 %
credit card
loans (1)
Average
number of
active              1,642,420           1,487,242           155,178            10.4
credit card
accounts
                                                                                
Average
balance per
active              $ 2,050             $ 2,007             $ 43               2.1
credit card
account (1)
                                                                                
Net
charge-offs
on credit           $ 31,464            $ 28,794            $ 2,670            9.3
card loans
(1)
Net
charge-offs
as a
percentage
of average          1.87        %       1.93        %       (0.06     )%        

 credit
card loans
(1)
(1)
Includes
accrued
interest
and fees
 

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

To supplement the Company's condensed consolidated statements of income
presented in accordance with generally accepted accounting principles
("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 adjustment to interchange
income for the proposed Visa settlement recorded in the three and six months
ended June 29, 2013, and (ii) the impairment and restructuring charges
recorded in the three and six months ended June 29, 2013, respectively. The
impairment and restructuring charges relate to the closure of our former
Winnipeg retail store in conjunction with the opening of the new Winnipeg
next-generation store in May 2013. In light of the nature and magnitude, the
Company believes 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
                       June 29, 2013                                        June 30,
                                                                            2012
                       GAAP Basis        Amounts          Non-GAAP          GAAP
                                                                            Basis
                       As Reported       Added Back       As Adjusted       As
                                                                            Reported
                       (Dollars in Thousands Except Earnings Per Share)
                                                                             
Total revenue          $ 756,805         $ (1,200 )       $ 755,605         $ 627,254
(1)
                                                                             
Total cost of
revenue
(exclusive of          413,465           —                413,465           340,377
depreciation
and
amortization)
Selling,
distribution,
and                    275,468           —                275,468           229,049
administrative
expenses
Impairment and
restructuring          937               (937     )       —                 —
charges (2)
                                                                             
Operating              66,935            (263     )       66,672            57,828
income
                                                                             
Interest               (3,914    )       —                (3,914    )       (6,444
expense, net
Other
non-operating          1,108             —                1,108             1,450
income, net
Income before
provision for          64,129            (263     )       63,866            52,834
income taxes
Provision for          19,584            (85      )       19,499            18,964
income taxes
                                                                             
Net income             $ 44,545          $ (178   )       $ 44,367          $ 33,870
                                                                             
Earnings per           $ 0.63            $ —              $ 0.63            $ 0.48
basic share
                                                                             
Earnings per           $ 0.62            $ —              $ 0.62            $ 0.47
diluted share
 

 
                         Six Months Ended
                         June 29, 2013                                            June 30, 2012
                         GAAP Basis          Amounts          Non-GAAP            GAAP Basis
                         As Reported         Added Back       As Adjusted         As Reported
                         (Dollars in Thousands Except Earnings Per Share)
                                                                                   
Total revenue            $ 1,559,302         $ (1,200 )       $ 1,558,102         $ 1,250,758
(1)
                                                                                   
Total cost of
revenue
(exclusive of            872,160             —                872,160             691,136
depreciation
and
amortization)
Selling,
distribution,
and                      540,155             —                540,155             455,218
administrative
expenses
Impairment and
restructuring            937                 (937     )       —                   —            
charges (2)
                                                                                   
Operating                146,050             (263     )       145,787             104,404
income
                                                                                   
Interest                 (9,270      )       —                (9,270      )       (10,948     )
expense, net
Other
non-operating            2,647               —                2,647               2,851        
income, net
Income before
provision for            139,427             (263     )       139,164             96,307
income taxes
Provision for            45,035              (85      )       44,950              33,611       
income taxes
                                                                                   
Net income               $ 94,392            $ (178   )       $ 94,214            $ 62,696     
                                                                                   
Earnings per             $ 1.34              $ —              $ 1.34              $ 0.90       
basic share
                                                                                   
Earnings per             $ 1.32              $ —              $ 1.32              $ 0.87       
diluted share
 

      Reflects an adjustment recorded through interchange income to the
(1)   Company's outstanding liability related to the proposed settlement of
      the Visa antitrust litigation due to a group of plaintiffs opting out of
      the proposed Visa settlement in May 2013.
      Reflects charges related to the closure of the former Winnipeg retail
(2)   store in conjunction with the opening of the new Winnipeg
      next-generation store in May 2013.

Contact:

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