Cabela's Inc. Reports Record Third Quarter 2013 Results

  Cabela's Inc. Reports Record Third Quarter 2013 Results

  - Third Quarter Diluted EPS Increased 16.7% to $0.70 vs. $0.60 a Year Ago

              - Total Revenue Increased 14.8% to $850.8 Million

                - Third Quarter Comparable Store Sales Up 3.9%

                       - Direct Revenue Increased 0.9%

        - Merchandise Gross Margin Increased 10 Basis Points to 37.3%

      - After-Tax Return on Invested Capital Increased 110 Basis Points

Business Wire

SIDNEY, Neb. -- October 24, 2013

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

For the quarter, total revenue increased 14.8% to $850.8 million; Retail store
revenue increased 20.8% to $550.9 million; Direct revenue increased 0.9% to
$198.6 million; and Financial Services revenue increased 14.5% to $98.4
million. Comparable store sales increased 3.9%. Net income increased 16.6% to
$49.9 million compared to $42.8 million in the year ago quarter, and earnings
per diluted share increased 16.7% to $0.70 compared to $0.60 in the year ago
quarter.

"In today's difficult marketplace, the strong performance of our
next-generation stores continues to be a competitive advantage," said Tommy
Millner, Cabela's Chief Executive Officer. "Growing our retail footprint
through our next-generation store format provides an exciting vision into the
future of our Company. In the third quarter, 14 of our 18 next-generation
stores were open for the full period and outperformed our legacy store base by
approximately 50% in sales per square foot and approximately 60% in profit per
square foot. Based on this, we plan to expand retail square footage at a low
to mid-teens rate over the next several years with our next-generation and
Outpost store formats."

The 3.9% increase in comp store sales is the eighth consecutive quarter of
comp store sales increases. Excluding firearms, comp store sales increased
5.3% as sales of firearms significantly moderated during the quarter. The
eight next-generation stores in the comp base at the end of the quarter
generated comp store sales of 6.7%. Ammunition sales, while still above prior
year levels, slowed during the quarter. We saw strong performance in men’s
apparel, hunting apparel and general outdoors.

"Although Direct revenue increased for the fourth consecutive quarter, the
results fell short of our expectations," Millner said. "These results were
caused by a deceleration in ammunition sales and Internet traffic, lower
average ticket and a more cautious consumer. Since we expect these trends to
continue, our Direct business in the fourth quarter is anticipated to decline
at a mid-single digit rate. During the quarter, we continued to enhance our
omni-channel efforts through greater use of digital marketing and the limited
roll out of omni-channel fulfillment. In the fourth quarter, we will continue
to expand our omni-channel fulfillment capabilities and will implement a
number of improvements to our mobile platform."

For the quarter, merchandise gross margin improved 10 basis points to 37.3%
compared to the prior year quarter. Merchandise mix declines from ammunition
sales were more than offset by margin improvement due to the elimination of
free shipping to CLUB members and increased penetration of Cabela's brand
merchandise.

"Starting in August, we saw a significant deceleration in the sales of
firearms and ammunition as well as a challenging consumer environment across
all business channels," Millner said. "To compensate, we increased marketing
and advertising spending by several million dollars. In addition, we took an
aggressive approach to managing other costs to levels consistent with how our
business performed and will continue to manage those costs accordingly through
the rest of the year."

"In the fourth quarter of last year, comp store sales increased a very strong
12.0%, which, at the time, was our largest increase ever as a public company.
Due to this very difficult comparison, we expect comp store sales to decline
at a mid-single digit rate in the fourth quarter. We believe that we have
managed expense levels consistent with these expectations."

The Cabela's CLUB Visa program had another solid quarter. During the quarter,
growth in average active credit card accounts accelerated to 10.1% due to
increases in new customers, primarily in the Retail and Internet channels. For
the quarter, net charge-offs remained at extremely low levels and were 1.72%
compared to 1.71% in the prior year quarter. Increased Financial Services
revenue was driven by increases in interest and fee income as well as
interchange income. With 2008 restructured credit card loans approaching their
five year statutory maturity, and additional history on loans restructured
subsequent to 2008, we are now able to perform additional analysis regarding
performance of the restructured loan portfolio. As a result of this analysis,
the allowance for loan losses was reduced by $5.1 million during the quarter,
compared to a $1.3 million reduction in the third quarter last year.

In the fourth quarter last year, a $12.5 million charge related to the Visa
antitrust settlement was recognized. We recently received notification from
Visa that the impact of the proposed settlement had been reduced causing a
decrease in our estimate of $1.7 million. Additional adjustments were made for
certain employee related expenses in the quarter. The net impact of these
items was a benefit of $0.01 to earnings per share for the quarter. 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.

The tax rate for the quarter was 31.3% compared to 32.3% in the year ago
quarter due to more effective tax planning. The fourth quarter tax rate is
expected to be between 31.5% and 32.5%, which is slightly below our previous
guidance of between 32.5% and 33.5%. For 2014, the tax rate is expected to be
between 31.5% and 33.5%.

"Return on invested capital improved by 110 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."

"Although the consumer environment is difficult, we continue to be very
pleased with the strong performance of our next-generation stores,
omni-channel progression and growth in our Cabela's CLUB loyalty program,"
Millner said. "Our retail stores are performing at very high levels, and we
have adjusted expenses to be more in line with current business trends. As a
result, we are comfortable with the current external earnings estimates for
the fourth quarter of 2013. While our 2014 budget is not yet finalized, we
expect 2014 earnings per share to be the sixth consecutive year of
double-digit earnings per share growth."

                         Conference Call Information

A conference call to discuss third quarter fiscal 2013 operating results is
scheduled for today (Thursday, October 24, 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
expanding retail square footage at a low to mid-teens rate over the next
several years, Direct business in the fourth quarter declining at a mid-single
digit rate, comp store sales declining at a mid-single digit rate in the
fourth quarter and managing expense levels consistent with these expectations,
the fourth quarter tax rate being between 31.5% and 32.5%, the 2014 tax rate
being between 31.5% and 33.5%, generating even further improvements in return
on invested capital, comfort with the current external earnings estimates for
the fourth quarter of 2013, and 2014 earnings per share being the sixth
consecutive year of double-digit earnings per share growth. 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            Nine Months Ended
                   September      September        September 28,   September 29,
                   28,           29,              2013           2012
                   2013           2012
Revenue:
Merchandise        $  749,141     $  652,313       $ 2,124,538     $ 1,730,252
sales
Financial
Services           98,403         85,932           272,753         248,654
revenue
Other revenue      3,284         2,933           12,839         13,030      
Total revenue      850,828       741,178         2,410,130      1,991,936   
Cost of
revenue:
Merchandise
costs
(exclusive of      469,614        409,929          1,341,706       1,100,431
depreciation
and
amortization)
Cost of other      318           —               386            634         
revenue
Total cost of
revenue
(exclusive of      469,932        409,929          1,342,092       1,101,065
depreciation
and
amortization)
Selling,
distribution,
and                304,293        264,136          844,448         719,354
administrative
expenses
Impairment and
restructuring      —             —               937            —           
charges
                                                                                 
Operating          76,603         67,113           222,653         171,517
income
                                                                                 
Interest           (4,979     )   (5,227     )     (14,249     )   (16,175     )
expense, net
Other
non-operating      1,028         1,288           3,675          4,139       
income, net
                                                                                 
Income before
provision for      72,652         63,174           212,079         159,481
income taxes
Provision for      22,766        20,389          67,801         54,000      
income taxes
Net income         $  49,886     $  42,785       $ 144,278      $ 105,481   
                                                                                 
Earnings per       $  0.71       $  0.61         $ 2.05         $ 1.51      
basic share
Earnings per       $  0.70       $  0.60         $ 2.01         $ 1.47      
diluted share
                                                                                 
Basic weighted
average shares     70,575,804    69,894,538      70,412,479     69,794,416  
outstanding
Diluted
weighted           71,757,901    71,555,862      71,717,894     71,624,451  
average shares
outstanding

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

                                                        
                           September 28,     December 29,      September 29,
                           2013              2012              2012
ASSETS
CURRENT
Cash and cash              $ 409,733         $ 288,750         $ 265,675
equivalents
Restricted cash of the     26,009            17,292            16,709
Trust
Held-to-maturity           135,000           —                 —
investment securities
Accounts receivable,       29,367            46,081            20,773
net
Credit card loans
(includes restricted
credit card loans of
the Trust of
$3,591,844,                3,567,423         3,497,472         3,151,647
$3,523,133, and
$3,193,162), net of
allowance for loan
losses of $57,370,
$65,600, and $65,750
Inventories                815,594           552,575           721,701
Prepaid expenses and       95,382            132,694           143,930
other current assets
Income taxes
receivable and             53,693           54,164           52,261      
deferred income taxes
Total current assets       5,132,201         4,589,028         4,372,696
Property and               1,201,662         1,021,656         971,401
equipment, net
Land held for sale         18,271            23,448            39,437
Economic development       79,260            85,041            92,744
bonds
Other assets               30,671           28,990           29,091      
Total assets               $ 6,462,065      $ 5,748,163      $ 5,505,369 
                                                                             
LIABILITIES AND
STOCKHOLDERS’ EQUITY
CURRENT
Accounts payable,
including unpresented      $ 284,934         $ 285,039         $ 366,992
checks of $23,745,
$28,928, and $18,819
Gift instrument,
credit card rewards,       248,711           262,653           218,068
and loyalty rewards
programs
Accrued expenses           153,287           180,906           129,869
Time deposits              357,314           367,350           310,617
Current maturities of
secured variable           —                 325,000           —
funding obligations of
the Trust
Current maturities of      8,414            8,402            8,398       
long-term debt
Total current              1,052,660         1,429,350         1,033,944
liabilities
Long-term time             790,664           680,668           763,938
deposits
Secured long-term
obligations of the         2,452,250         1,827,500         1,827,500
Trust, less current
maturities
Long-term debt, less       524,149           328,133           443,199
current maturities
Deferred income taxes      14,329            10,571            33,712
Other long-term            102,063           95,962            99,593
liabilities
                                                                             
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 – 70,604,935,
70,545,558, and
70,545,524 shares
Outstanding –
70,604,705,                706               705               705
70,053,144, and
70,019,501 shares
Additional paid-in         339,752           351,161           344,541
capital
Retained earnings          1,180,705         1,036,427         968,395
Accumulated other          4,802             5,542             8,917
comprehensive income
Treasury stock, at
cost – 230, 492,414,       (15         )     (17,856     )     (19,075     )
and 526,023 shares
Total stockholders’        1,525,950        1,375,979        1,303,483   
equity
Total liabilities and      $ 6,462,065      $ 5,748,163      $ 5,505,369 
stockholders’ equity

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

                                                        
                Three Months Ended             Nine Months Ended
                September      September       September 28,   September 29,
                28,            29,             2013            2012
                2013           2012
                                                                             
Revenue:
Retail          $  550,878     $ 455,965       $ 1,521,550     $ 1,185,989
Direct          198,596        196,818         603,878         545,466
Financial       98,403         85,932          272,753         248,654
Services
Other           2,951         2,463          11,949         11,827      
Total           $  850,828    $ 741,178      $ 2,410,130    $ 1,991,936 
revenue
                                                                             
Operating
Income
(Loss):
Retail          $  103,658     $ 85,438        $ 279,409       $ 200,889
Direct          29,284         30,220          104,912         93,559
Financial       29,182         23,230          79,198          73,508
Services
Other           (85,521    )   (71,775   )     (240,866    )   (196,439    )
Total
operating       $  76,603     $ 67,113       $ 222,653      $ 171,517   
income
                                                                             
As a
Percentage
of Total
Revenue:
Retail          64.8       %   61.5      %     63.1        %   59.5        %
revenue
Direct          23.3           26.6            25.1            27.4
revenue
Financial
Services        11.6           11.6            11.3            12.5
revenue
Other           0.3           0.3            0.5            0.6         
revenue
Total           100.0      %   100.0     %     100.0       %   100.0       %
revenue
                                                                             
As a
Percentage
of Segment
Revenue:
Retail
operating       18.8       %   18.7      %     18.4        %   16.9        %
income
Direct
operating       14.7           15.4            17.4            17.2
income
Financial
Services        29.7           27.0            29.0            29.6
operating
income
Total
operating
income as a     9.0            9.1             9.2             8.6
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              Nine Months Ended
                 September      September        September 28,   September 29,
                 28,           29,              2013           2012
                 2013           2012
                                                                               
Interest and     $   87,945     $   76,944       $   250,383     $   222,137
fee income
Interest         (17,075    )   (13,799    )     (46,863     )   (40,379     )
expense
Provision
for loan         (8,404     )   (10,387    )     (33,030     )   (29,231     )
losses
Net interest
income, net
of provision     62,466        52,758          170,490        152,527     
for loan
losses
Non-interest
income:
Interchange      88,963         77,022           252,290         220,388
income
Other
non-interest     1,430         3,055           4,113          11,075      
income
Total
non-interest     90,393         80,077           256,403         231,463
income
Less:
Customer         (54,456    )   (46,903    )     (154,140    )   (135,336    )
rewards
costs
                                                                               
Financial
Services         $   98,403    $   85,932      $   272,753    $   248,654 
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              Nine Months Ended
                 September      September        September 28,   September 29,
                 28,            29,              2013            2012
                 2013           2012
                                                                               
Interest and     9.9     %      9.8     %        9.7     %       9.8     %
fee income
Interest         (1.9    )      (1.8    )        (1.8    )       (1.8    )
expense
Provision
for loan         (0.9    )      (1.3    )        (1.3    )       (1.3    )
losses
Interchange      10.0           9.8              9.8             9.7
income
Other
non-interest     0.2            0.4              0.2             0.5
income
Customer
rewards          (6.1    )      (6.0    )        (6.0    )       (5.9    )
costs
Financial
Services         11.2    %      10.9    %        10.6    %       11.0    %
revenue

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

                                                                             
In July2012, the parties to the Visa antitrust litigation entered into a
memorandum of understanding to enter into a settlement agreement to resolve
their claims. In November 2012, the settlement received preliminary court
approval. The court held a hearing for final approval of the settlement in
September 2013 but the settlement has not yet received final 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. In 2013, certain plaintiffs opted out of the proposed
settlement resulting in management re-evaluating the impact of the reduction
of default interchange. In addition, the Company received its first
interchange reduction report from Visa for the period July 29, 2013, through
August 31, 2013. As a result of management re-evaluations and analysis
relating to the merchant charge volume per the August 2013 Visa interchange
reduction report, it was determined that the estimated effect for the
proposed settlement should be reduced by $1.65 million and $2.85 million,
respectively, in the three and nine months ended September 28, 2013.


                                                                             
To supplement the Company's revenue components of its Financial Services
segment presented according to generally accepted accounting principles
("GAAP"), the Company has disclosed two non-GAAP measures of operating
results that exclude the adjustments of $1.65 million and $2.85 million
recorded in the three and nine months ended September 28, 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.

                                                              
                      September 28,   September 29,   Increase
                      2013            2012                          % Change
                                                      (Decrease)
Three Months
Ended:
Interchange           $  88,963       $  77,022       $ 11,941      15.5  %
income
Adjustment for
Visa antitrust        (1,650      )   —              (1,650   )
settlement
Interchange
income - 2013         $  87,313      $  77,022      $ 10,291     13.4
non-GAAP adjusted
                                                                             
Total Financial       $  98,403       $  85,932       $ 12,471      14.5
Services revenue
Adjustment for
Visa antitrust        (1,650      )   —              (1,650   )
settlement
Total Financial
Services revenue      $  96,753      $  85,932      $ 10,821     12.6
- 2013 non-GAAP
adjusted
                                                                             
Interchange
income as a
percentage of
average total         9.8         %   9.8         %   —        %
credit card loans
- 2013 non-GAAP
adjusted
Financial
Services revenue
as a percentage
of average total      10.9        %   10.9        %   —        %
credit card loans
- 2013 non-GAAP
adjusted
                                                                             
Nine Months
Ended:
Interchange           $  252,290      $  220,388      $ 31,902      14.5  %
income
Adjustment for
Visa antitrust        (2,850      )   —              (2,850   )
settlement
Interchange
income - 2013         $  249,440     $  220,388     $ 29,052     13.2
non-GAAP adjusted
                                                                             
Financial             $  272,753      $  248,654      $ 24,099      9.7
Services revenue
Adjustment for
Visa antitrust        (2,850      )   —              (2,850   )
settlement
Financial
Services revenue      $  269,903     $  248,654     $ 21,249     8.5
- 2013 non-GAAP
adjusted
                                                                             
Interchange
income as a
percentage of
average total         9.7         %   9.7         %   —        %
credit card loans
- 2013 non-GAAP
adjusted
Financial
Services revenue
as a percentage
of average total      10.5        %   11.0        %   (0.5     )%
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
                     September 28,    September 29,     Increase       %
                     2013              2012              (Decrease)     Change
                     (Dollars in Thousands Except Average Balance per Account)
                                                                        
Average balance
of credit card       $  3,551,109      $ 3,129,897       $ 421,212      13.5 %
loans (1)
Average number
of active credit     1,694,334         1,539,150         155,184        10.1
card accounts
                                                                        
Average balance
per active           $  2,096          $ 2,034           $ 62           3.0
credit card
account (1)
                                                                        
Net charge-offs
on credit card       $  15,312         $ 13,376          $ 1,936        14.5
loans (1)
Net charge-offs
as a percentage
of average         1.72          %  1.71        %   0.01       %  

credit card
loans (1)
(1) Includes
accrued interest
and fees
                                                                        
                     Nine Months Ended
                     September 28,     September 29,     Increase       %
                     2013              2012              (Decrease)     Change
                     (Dollars in Thousands Except Average Balance per Account)
                                                                        
Average balance
of credit card       $  3,429,045      $ 3,033,243       $ 395,802      13.0 %
loans (1)
Average number
of active credit     1,659,724         1,504,545         155,179        10.3
card accounts
                                                                        
Average balance
per active           $  2,066          $ 2,016           $ 50           2.5
credit card
account (1)
                                                                        
Net charge-offs
on credit card       $  46,776         $ 42,170          $ 4,606        10.9
loans (1)
Net charge-offs
as a percentage
of average         1.82          %  1.85        %   (0.03     )%  

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; selling,
distribution, and administrative expenses; 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) adjustments to interchange income for
the proposed Visa settlement recorded in the three and nine months ended
September 28, 2013, (ii) certain employee related expenses recorded in the
three and nine months ended September 28, 2013, and (iii) the impairment and
restructuring charges recorded in the nine months ended September 28, 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
                                                                    September 29,
                     September 28, 2013                          
                                                                    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        $ 850,828       $ (1,650 )   $ 849,178         $ 741,178
(1)
                                                                                  
Total cost of
revenue
(exclusive of        469,932         —            469,932           409,929
depreciation
and
amortization)
Selling,
distribution,
and                  304,293         (521     )   303,772           264,136
administrative
expenses (2)
Impairment and
restructuring        —              —           —                —           
charges
                                                                                  
Operating            76,603          (1,129   )   75,474            67,113
income
                                                                                  
Interest             (4,979      )   —            (4,979      )     (5,227      )
expense, net
Other
non-operating        1,028          —           1,028            1,288       
income, net
Income before
provision for        72,652          (1,129   )   71,523            63,174
income taxes
Provision for        22,766         (354     )   22,412           20,389      
income taxes
                                                                                  
Net income           $ 49,886       $ (775   )   $ 49,111         $ 42,785    
                                                                                  
Earnings per         $ 0.71         $ (0.01  )   $ 0.70           $ 0.61      
basic share
                                                                                  
Earnings per         $ 0.70         $ (0.01  )   $ 0.69           $ 0.60      
diluted share
                                                                                  
                     Nine Months Ended
                                                                    September 29,
                     September 28, 2013
                                                                    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        $ 2,410,130     $ (2,850 )   $ 2,407,280       $ 1,991,936
(1)
                                                                                  
Total cost of
revenue
(exclusive of        1,342,092       —            1,342,092         1,101,065
depreciation
and
amortization)
Selling,
distribution,
and                  844,448         (735     )   843,713           719,354
administrative
expenses (2)
Impairment and
restructuring        937            (937     )   —                —           
charges (3)
                                                                                  
Operating            222,653         (1,178   )   221,475           171,517
income
                                                                                  
Interest             (14,249     )   —            (14,249     )     (16,175     )
expense, net
Other
non-operating        3,675          —           3,675            4,139       
income, net
Income before
provision for        212,079         (1,178   )   210,901           159,481
income taxes
Provision for        67,801         (377     )   67,424           54,000      
income taxes
                                                                                  
Net income           $ 144,278      $ (801   )   $ 143,477        $ 105,481   
                                                                                  
Earnings per         $ 2.05         $ (0.01  )   $ 2.04           $ 1.51      
basic share
                                                                                  
Earnings per         $ 2.01         $ (0.01  )   $ 2.00           $ 1.47      
diluted share

    
      Reflects adjustments recorded through interchange income to the
      Company's proposed settlement of the Visa antitrust litigation primarily
(1)   due to certain plaintiffs opting out of the proposed settlement in 2013
      and analysis of the Company's merchant charge volume in Visa's first
      interchange reduction report to WFB for the month of August 2013.
(2)   Reflects certain employee related expenses primarily related to
      severance benefits.
      Reflects charges related to the closure of the former Winnipeg retail
(3)   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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