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Cabela's Inc. Reports Record Fourth Quarter 2013 Results

  Cabela's Inc. Reports Record Fourth Quarter 2013 Results

       - Total Revenue Increased to $1.2 Billion, or 4.9%, as Adjusted

                   - Comparable Store Sales Decreased 10.1%

  - Fourth Quarter Diluted EPS Increased 5.6% to $1.32 vs. $1.25 a Year Ago,
                          Adjusted for Certain Items

        - Merchandise Gross Margin Increased 40 Basis Points to 36.6%

  - Next Generation Stores Outperformed Legacy Stores by 50-60% in Sales and
                            Profit per Square Foot

- After-Tax Return on Invested Capital Increased 30 Basis Points to 16.2% for
                                the Full Year

Business Wire

SIDNEY, Neb. -- February 13, 2014

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

For the quarter, adjusted for the Visa antitrust settlement, total revenue
increased 4.9% to $1.2 billion; Retail store revenue increased 7.3% to $711.8
million; Direct revenue decreased 4.1% to $369.7 million; and Financial
Services revenue increased 23.4% to $102.7 million. For the quarter,
comparable store sales decreased 10.1%. On a GAAP reported basis, total
revenue increased 6.1% and Financial Services revenue increased 45.7%. See the
supporting schedule to this earnings release labeled "Reconciliation of GAAP
Reported to Non-GAAP Adjusted Revenue of Financial Services Segment and Total
Revenue" for a reconciliation of the GAAP to non-GAAP revenue amounts.

For the quarter, net income increased 5.5% to $94.7 million compared to $89.8
million in the year ago quarter, and earnings per diluted share were $1.32
compared to $1.25 in the year ago quarter, each adjusted for certain items.
The Company reported GAAP net income of $80.1 million and earnings per diluted
share of $1.12 as compared to GAAP net income of $68.0 million and earnings
per diluted share of $0.95 in the year ago quarter. Fourth quarter 2013 GAAP
results included provisions for interest and taxes related to an increase in
tax reserves of $0.16 per diluted share and an impairment loss of $0.04 per
diluted share related to a retail store site. Fourth quarter 2012 GAAP results
included impairment losses of $0.19 per diluted share primarily related to
land held for sale and an $0.11 per diluted share reduction related to the
Visa antitrust settlement. See the supporting schedules to this earnings
release labeled "Reconciliation of GAAP Reported to Non-GAAP Adjusted
Financial Measures" for a reconciliation of the GAAP to non-GAAP financial
measures.

For fiscal 2013, net income increased 22.0% to $238.3 million compared to
$195.3 million last year, and earnings per diluted share were $3.32 compared
to $2.72 a year ago, each adjusted for certain items. The Company reported
GAAP net income of $224.4 million and earnings per diluted share of $3.13 as
compared to GAAP net income of $173.5 million and earnings per diluted share
of $2.42 a year ago. Fiscal 2013 GAAP results included adjustments to the Visa
antitrust settlement liability resulting in a $0.03 per diluted share benefit,
impairment and expense adjustments primarily related to two retail locations
of $0.06 per diluted share, and provisions for interest and taxes related to
an increase in tax reserves of $0.16 per diluted share. Fiscal 2012 GAAP
results included impairment losses of $0.19 per diluted share primarily
related to land held for sale and an $0.11 per diluted share reduction related
to the Visa antitrust settlement. See the supporting schedules to this
earnings release labeled "Reconciliation of GAAP Reported to Non-GAAP Adjusted
Financial Measures" for a reconciliation of the GAAP to non-GAAP financial
measures.

"Cabela's revenue and earnings per share for the full year grew at a
double-digit rate for the fifth consecutive year," said Tommy Millner,
Cabela’s Chief Executive Officer. "However, results for the fourth quarter did
not meet our expectations, which were set earlier under more robust
conditions. Specifically, the two biggest short-term factors affecting results
in the quarter were a much sharper than expected decline in ammunition sales
as compared to last year’s surge and a softer than expected holiday season as
evidenced elsewhere. On the other hand, comparable store sales excluding
firearms and ammunition were down 3.5% with positive comparable store sales in
hunting apparel, men’s casual apparel, footwear and non-shooting related
hunting equipment in the quarter."

"At the same time, we are delighted with the growing success of our
longer-term initiatives, which will lead to ongoing profitable growth for
Cabela’s," Millner said. "These include the results of our new stores, which
performed at least 50% better than our older stores on a sales and profit per
square foot basis and generated comparable store sales 200 basis points better
than our older stores. For the full year, we operated 11 of our new format
stores that averaged sales per square foot of over $500. We currently plan to
open 14 new stores in 2014."

"We also are pleased that merchandise margins increased 40 basis points in the
quarter to 36.6%. This is a result of the sales shift from firearms and
ammunition to soft goods and also, importantly, the margin improvement in our
soft goods category," Millner said. "Customer response to higher margin
Cabela’s branded products such as ZONZ™ camo, ColorPhase™ technology, the
Regulator and Instigator bows and OutfitHER® clothing has been extremely
encouraging. During the quarter, the penetration of Cabela's branded products
across our entire assortment improved from 27.6% to 32.5% as compared to the
same quarter a year ago. With our strong focus on product innovation, we
expect future increases in Cabela's brand penetration throughout our entire
product assortment. These factors taken together should generate merchandise
margin improvement in 2014 and 2015."

"Our Direct business performed much like retail in that customers shifted away
from ammunition more sharply than we expected," Millner said. "On the other
hand, fishing, camping and most soft goods categories experienced sales growth
in the quarter. Additionally, improvements in our mobile platform contributed
to a meaningful lift in both traffic and conversion. Lastly, we also benefited
from our implementation of omni-channel fulfillment from our retail
locations."

The Cabela's CLUB Visa program had another solid quarter. During the quarter,
growth in average active credit card accounts was 8.6% due to new customer
acquisitions in our Retail and Internet channels. For the quarter, net
charge-offs remained at historically low levels of 1.76% compared to 1.91% in
the prior year quarter. Increased Financial Services revenue was driven by
increases in interest and fee income as well as interchange income. Growth in
average balance per active credit card account was 4.1%, and growth in average
credit card loans was 13.1%.

"We are very pleased to see continued improvement in one of our most important
metrics, return on invested capital," Millner said. "Return on invested
capital for 2013 improved 30 basis points over last year to 16.2%. With our
strong operational improvements, we are confident in our ability to generate
even further improvements in return on invested capital for years to come."

During the fourth quarter, the Company reserved $9.3 million for potential
adjustments to the provision for income taxes that may result from audits in
progress and $3.6 million of interest related to these matters. For 2014, the
tax rate is expected to be between 33.0% and 34.0%.

As previously announced, the Company's Board of Directors approved a share
repurchase program designed primarily to offset shareholder dilution resulting
from the granting of equity-based compensation awards. As a result, the
Company intends to repurchase up to 650,000 shares of its common stock in open
market transactions through February 2015.

"Despite the slower finish, 2013 represents a year of record breaking
performance and significant accomplishment within our business," Millner said.
"Fiscal year 2013 was our fifth consecutive year of double-digit earnings per
share growth to a new record of $3.32. Comparable store sales increased by
3.9% which represented the fifth consecutive year of growth, and Direct
revenue increased for the first time in six years growing 4.6%. Consolidated
operating margin improved for the fifth consecutive year to 10.0%, and
merchandise margins were 36.8%, representing the fourth consecutive year of
improvement."

"We believe that our operational improvements combined with new store
performance will continue to deliver outstanding returns to shareholders,"
Millner said. "At the same time, in the next two quarters, we expect
moderation in both comparable store sales and in the Direct business due to
the stronger than expected fall-off from last year's firearms and ammunition
surge. We expect first quarter 2014 earnings per diluted share to be between
$0.32 and $0.42 and full year 2014 earnings per diluted share to increase at a
high single-digit or low double-digit rate versus 2013 adjusted earnings per
diluted share of $3.32."

                         Conference Call Information

A conference call to discuss fourth quarter fiscal 2013 operating results is
scheduled for today (Thursday, February 13, 2014) at 11:00 a.m. Eastern Time.
A webcast of the call will take place simultaneously and can be accessed by
visiting the Investor Relations section of Cabela's website at
www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

About Cabela's Incorporated

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

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are
"forward-looking statements" that are based on the Company's beliefs,
assumptions, and expectations of future events, taking into account the
information currently available to the Company. Such forward-looking
statements include, but are not limited to, the Company's statements regarding
opening 14 new stores in 2014, future increases in Cabela's brand penetration,
merchandise margin improvement in 2014 and 2015, generating even further
improvements in return on invested capital for years to come, the 2014
effective tax rate being between 33.0% and 34.0%, repurchasing up to 650,000
shares of its common stock in open market transactions through February 2015,
first quarter 2014 earnings per diluted share being between $0.32 and $0.42,
and full year 2014 earnings per diluted share increasing at a high
single-digit or low double-digit rate versus 2013 adjusted earnings per
diluted share of $3.32. 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,
demand for firearms and ammunition, 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 Company's ability to prevent
cybersecurity breaches and mitigate cybersecurity risks; 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, audits by tax authorities,
and compliance examinations by the Federal Deposit Insurance Corporation); the
Company's ability to manage credit, liquidity, interest rate, operational,
legal, regulatory capital, 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
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)

                Three Months Ended             Fiscal Year Ended
                 December 28,   December 29,    December 28,   December 29,
                 2013            2012            2013            2012
Revenue:
Merchandise      $ 1,081,094     $ 1,048,651     $ 3,205,632     $ 2,778,903
sales
Financial
Services         103,057         70,745          375,810         319,399
revenue
Other revenue    5,296          1,350          18,135         14,380      
Total revenue    1,189,447      1,120,746      3,599,577      3,112,682   
Cost of
revenue:
Merchandise
costs
(exclusive of    685,486         668,730         2,027,192       1,769,161
depreciation
and
amortization)
Cost of other    3,251          3              3,637          637         
revenue
Total cost of
revenue
(exclusive of    688,737         668,733         2,030,829       1,769,798
depreciation
and
amortization)
Selling,
distribution,
and              357,071         327,507         1,201,519       1,046,861
administrative
expenses
Impairment and
restructuring    4,931          20,324         5,868          20,324      
charges
                                                                 
Operating        138,708         104,182         361,361         275,699
income
                                                                 
Interest         (7,605      )   (3,948      )   (21,854     )   (20,123     )
expense, net
Other
non-operating    346            1,999          4,021          6,138       
income, net
                                                                 
Income before
provision for    131,449         102,233         343,528         261,714
income taxes
Provision for    51,337         34,201         119,138        88,201      
income taxes
Net income       $ 80,112       $ 68,032       $ 224,390      $ 173,513   
                                                                 
Earnings per     $ 1.13         $ 0.97         $ 3.18         $ 2.48      
basic share
Earnings per     $ 1.12         $ 0.95         $ 3.13         $ 2.42      
diluted share
                                                                 
Basic weighted
average shares   70,608,361     70,041,784     70,461,450     69,856,258  
outstanding
Diluted
weighted         71,727,820     71,700,567     71,778,543     71,709,873  
average shares
outstanding
                                                                             


CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)
                                                              
                                                 December 28,    December 29,
                                                 2013            2012
ASSETS
CURRENT
Cash and cash equivalents                        $ 199,072       $ 288,750
Restricted cash of the Trust                     23,191          17,292
Accounts receivable, net                         42,868          46,081
Credit card loans (includes restricted credit
card loans of the Trust of $3,956,230 and        3,938,630       3,497,472
$3,523,133), net of allowance for loan losses
of $53,110 and $65,600
Inventories                                      644,883         552,575
Prepaid expenses and other current assets        90,438          132,694
Income taxes receivable and deferred income      47,430         54,164      
taxes
Total current assets                             4,986,512       4,589,028
Property and equipment, net                      1,287,545       1,021,656
Economic development bonds                       78,504          85,041
Other assets                                     44,303         52,438      
Total assets                                     $ 6,396,864    $ 5,748,163 
                                                                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT
Accounts payable, including unpresented checks   $ 261,200       $ 285,039
of $22,717 and $28,928
Gift instrument, credit card rewards and         291,444         262,653
loyalty rewards programs
Accrued expenses                                 204,073         180,906
Time deposits                                    297,645         367,350
Current maturities of secured variable funding   50,000          325,000
obligations of the Trust
Current maturities of long-term debt             8,418          8,402       
Total current liabilities                        1,112,780       1,429,350
Long-term time deposits                          771,717         680,668
Secured long-term obligations of the Trust,      2,452,250       1,827,500
less current maturities
Long-term debt, less current maturities          322,647         328,133
Deferred income taxes                            3,118           10,571
Other long-term liabilities                      128,018         95,962
                                                                 
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 - 70,630,866 and 70,545,558 shares
Outstanding - 70,630,866 and 70,053,144 shares   706             705
Additional paid-in capital                       346,535         351,161
Retained earnings                                1,260,817       1,036,427
Accumulated other comprehensive income           (1,724      )   5,542
Treasury stock, at cost - none and 492,414       -              (17,856     )
shares
Total stockholders’ equity                       1,606,334      1,375,979   
Total liabilities and stockholders’ equity       $ 6,396,864    $ 5,748,163 
                                                                             


CABELA'S INCORPORATED AND SUBSIDIARIES
SEGMENT INFORMATION
(Dollars in Thousands)
(Unaudited)
                                                            
                 Three Months Ended              Fiscal Year Ended
                 December 28,    December 29,    December 28,    December 29,
                 2013            2012            2013            2012
                                                 
Revenue:
Retail           $ 711,772       $ 663,593       $ 2,233,322     $ 1,849,582
Direct           369,736         385,477         973,614         930,943
Financial        103,057         70,745          375,810         319,399
Services
Other            4,882          931            16,831         12,758      
Total revenue    $ 1,189,447    $ 1,120,746    $ 3,599,577    $ 3,112,682 
                                                                 
Operating
Income (Loss):
Retail           $ 148,952       $ 144,151       $ 428,361       $ 345,040
Direct           52,315          61,678          157,227         155,237
Financial        25,204          674             104,402         74,182
Services
Other            (87,763     )   (102,321    )   (328,629    )   (298,760    )
Total
operating        $ 138,708      $ 104,182      $ 361,361      $ 275,699   
income
                                                                 
As a
Percentage of
Total Revenue:
Retail revenue   59.8        %   59.2        %   62.0        %   59.4        %
Direct revenue   31.1            34.4            27.1            29.9
Financial
Services         8.7             6.3             10.4            10.3
revenue
Other revenue    0.4            0.1            0.5            0.4         
Total revenue    100.0       %   100.0       %   100.0       %   100.0       %
                                                                 
As a
Percentage of
Segment
Revenue:
Retail
operating        20.9        %   21.7        %   19.2        %   18.7        %
income
Direct
operating        14.1            16.0            16.1            16.7
income
Financial
Services         24.5            1.0             27.8            23.2
operating
income
Total
operating
income as a      11.7            9.3             10.0            8.9
percentage of
total revenue
                                                                 
                                                                             

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

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

                                                
                     Three Months Ended            Fiscal Year Ended
                     December 28,  December 29,   December 28,  December 29,
                     2013           2012           2013           2012
                                                                  
Interest and fee     $  92,970      $  79,562      $  343,353     $  301,699
income
Interest expense     (16,968    )   (13,713    )   (63,831    )   (54,092    )
Provision for loan   (10,193    )   (13,529    )   (43,223    )   (42,760    )
losses
Net interest
income, net of       65,809        52,320        236,299       204,847    
provision for loan
losses
Non-interest
income:
Interchange income   92,689         71,763         344,979        292,151
Other non-interest   3,417         1,289         7,530         12,364     
income
Total non-interest   96,106         73,052         352,509        304,515
income
Less: Customer       (58,858    )   (54,627    )   (212,998   )   (189,963   )
rewards costs
                                                                  
Financial Services   $  103,057    $  70,745     $  375,810    $  319,399 
revenue
                                                                             

The following table sets forth the components of Financial Services revenue as
a percentage of average total credit card loans, including any accrued
interest and fees, for the periods presented below.

                                                
                     Three Months Ended            Fiscal Year Ended
                     December 28,  December 29,   December 28,  December 29,
                     2013           2012           2013           2012
                                                                  
Interest and fee     10.0    %      9.7     %      9.8     %      9.7     %
income
Interest expense     (1.8    )      (1.7    )      (1.8    )      (1.7    )
Provision for loan   (1.1    )      (1.6    )      (1.2    )      (1.4    )
losses
Interchange income   10.0           8.7            9.8            9.4
Other non-interest   0.4            0.2            0.2            0.4
income
Customer rewards     (6.4    )      (6.7    )      (6.1    )      (6.1    )
costs
Financial Services   11.1    %      8.6     %      10.7    %      10.3    %
revenue
                                                                          

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

In July 2012, the parties to the Visa antitrust litigation entered into a
settlement agreement to resolve their claims. On December 13, 2013, the
settlement received final court approval. The settlement agreement required,
among other things, the distribution to class merchants of an amount equal to
10 basis points of default interchange for a period of eight consecutive
months. As a result, we recorded a liability of $12.5 million as of December
29, 2012, to accrue for the settlement as a reduction of interchange income in
the Financial Services segment. In 2013, certain plaintiffs opted out of the
settlement resulting in our re-evaluation of the impact of the reduction of
default interchange to the Company. In addition, we received interchange
reduction reports from Visa for the period July 29, 2013, through the end of
2013. Based on re-evaluations due to opt-outs and analysis of the merchant
charge volume from the Visa interchange reduction reports, we reduced the
settlement liability by $0.317 million and $3.167 million, respectively, in
the three months and fiscal year ended December 28, 2013.

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

                                                                 
                        December 28,    December 29,    Increase
                        2013            2012            (Decrease)    % Change
Three Months Ended:
Interchange income,
GAAP basis as           $ 92,689        $ 71,763        $ 20,926      29.2  %
reported
Adjustment for Visa     (317        )   12,500         (12,817   )
antitrust settlement
Interchange income,     $ 92,372       $ 84,263       $ 8,109      9.6
non-GAAP adjusted
                                                                      
Total Financial
Services revenue,       $ 103,057       $ 70,745        $ 32,312      45.7
GAAP basis as
reported
Adjustment for Visa     (317        )   12,500         (12,817   )
antitrust settlement
Total Financial
Services revenue,       $ 102,740      $ 83,245       $ 19,495     23.4
non-GAAP adjusted
                                                                      
Total revenue, GAAP     $ 1,189,447     $ 1,120,746     $ 68,701      6.1
basis as reported
Adjustment for Visa     (317        )   12,500         (12,817   )
antitrust settlement
Total revenue,          $ 1,189,130    $ 1,133,246    $ 55,884     4.9
non-GAAP adjusted
                                                                      
Fiscal Year Ended:
Interchange income,
GAAP basis as           $ 344,979       $ 292,151       $ 52,828      18.1  %
reported
Adjustment for Visa     (3,167      )   12,500         (15,667   )
antitrust settlement
Interchange income,     $ 341,812      $ 304,651      $ 37,161     12.2
non-GAAP adjusted
                                                                      
Financial Services
revenue, GAAP basis     $ 375,810       $ 319,399       $ 56,411      17.7
as reported
Adjustment for Visa     (3,167      )   12,500         (15,667   )
antitrust settlement
Financial Services
revenue, non-GAAP       $ 372,643      $ 331,899      $ 40,744     12.3
adjusted
                                                                      
Total revenue, GAAP     $ 3,599,577     $ 3,112,682     $ 486,895     15.6
basis as reported
Adjustment for Visa     (3,167      )   12,500         (15,667   )
antitrust settlement
Total revenue,          $ 3,596,410    $ 3,125,182    $ 471,228    15.1
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
                    December 28,       December 29,     Increase       %
                    2013                2012             (Decrease)     Change
                                                                        
                    (Dollars in Thousands Except Average Balance per Account )
                                                                        
Average balance
of credit card      $  3,712,679        $  3,282,039     $ 430,640      13.1 %
loans (1)
Average number of
active credit       1,776,200           1,635,200        141,000        8.6
card accounts
                                                                        
Average balance
per active credit   $  2,090            $  2,007         $ 83           4.1
card account (1)
                                                                        
Net charge-offs
on credit card      $  16,376           $  15,633        $ 743          4.8
loans (1)
Net charge-offs
as a percentage
of average         1.76          %    1.91         %  (0.15     )%  

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

                                                                    
                    Fiscal Year Ended
                    December 28,       December 29,     Increase       %
                    2013                2012             (Decrease)     Change
                    (Dollars in Thousands Except Average Balance per Account )
                                                                        
Average balance
of credit card      $  3,500,536        $  3,095,781     $ 404,755      13.1 %
loans (1)
Average number of
active credit       1,688,843           1,537,209        151,634        9.9
card accounts
                                                                        
Average balance
per active credit   $  2,073            $  2,014         $ 59           2.9
card account (1)
                                                                        
Net charge-offs
on credit card      $  63,152           $  57,803        $ 5,349        9.3
loans (1)
Net charge-offs
as a percentage
of average         1.80          %    1.87         %  (0.07     )%  

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

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

Return on invested capital ( “ROIC”) is not a measure of financial performance
under generally accepted accounting principles ("GAAP") and may not be defined
and calculated by other companies in the same manner. ROIC should be
considered supplemental to and not a substitute for financial information
prepared in accordance with GAAP. We use ROIC as a measure of efficiency and
effectiveness of our use of total capital.

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

                                        Fiscal Year Ended
                                         December 28, 2013  December 29, 2012
                                         (Dollars in Thousands)
                                                             
Net income as GAAP reported              $   224,390        $   173,513    
Add back:
Interest expense                         21,889              20,171
Rent expense                             14,319              13,605
Depreciation and amortization - Retail   54,882              46,997
segment
Exclude:
Impairment charges or fixed asset        937                 19,015
write-downs
Accumulated amortization of deferred     4,931              1,309          
grant income
                                         96,958             101,097        
                                                             
After tax effect                         63,314             67,027         
Effective tax rate                       34.7           %    33.7           %
Adjusted net income, non-GAAP            $   287,704        $   240,540    
                                                             
Calculation of total capital:
Current maturities of long-term debt     $   8,418           $   8,402
Operating leases capitalized at 8x
next year's annual minimum lease         114,648             95,168
payments
Total stockholders' equity               1,606,334           1,375,979
Long-term debt (excluding Financial      322,647            328,133        
Services segment)
                                         2,052,047           1,807,682
Less:
Cash and cash equivalents                (199,072       )    (288,750       )
Add back cash and cash equivalents at    94,112             91,365         
the Financial Services segment
                                         (104,960       )    (197,385       )
                                                             
Adjusted total capital, non-GAAP         $   1,947,087      $   1,610,297  
                                                             
Average total capital, non-GAAP          $   1,778,692      $   1,517,430  
                                                             
Return on Invested Capital, non-GAAP     16.2           %    15.9           %
                                                                            

CABELA'S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL MEASURES (1)
(Unaudited)

To supplement our consolidated statements of income presented in accordance
with generally accepted accounting principles ("GAAP"), we have disclosed
non-GAAP adjusted financial measures of operating results that exclude certain
items. Total revenue; selling, distribution, and administrative expenses;
impairment and restructuring charges; operating income; interest expense, net;
provision for income taxes; net income; and earnings per diluted share are
presented below both as GAAP reported and non-GAAP financial measures
excluding (i) adjustments to interchange income for the Visa settlement, (ii)
certain employee related expenses, (iii) impairment losses primarily related
to two retail stores and other property, (iv) adjustments to interest expense
on certain unrecognized tax benefits, and (v) adjustments to the provision for
income taxes related to changes in our assessments of uncertain tax positions.
In light of the nature and magnitude, we believe these items should be
presented separately to enhance a reader's overall understanding of the
Company's ongoing operations. These non-GAAP adjusted financial measures
should be considered in conjunction with the GAAP financial measures.

We believe these non-GAAP adjusted financial measures provide useful
supplemental information to investors regarding the underlying business trends
and performance of our ongoing operations and are useful for
period-over-period comparisons of such operations. In addition, we evaluate
results using non-GAAP adjusted operating income, adjusted net income, and
adjusted earnings per diluted share. These non-GAAP adjusted financial
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 adjusted financial measures for the
periods presented.

              
                Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures(1)
                Three Months Ended
                December 28, 2013                            December 29, 2012
                GAAP Basis     Non-GAAP     Non-GAAP        GAAP Basis     Non-GAAP     Non-GAAP
                As Reported     Adjustments   Amounts         As Reported     Adjustments   Amounts
                (Dollars in Thousands Except Earnings Per Share)
                                                                                            
Total revenue   $ 1,189,447     $  (317   )   $ 1,189,130     $ 1,120,746     $ 12,500      $ 1,133,246
(2)
                                                                                            
Impairment
and             $ 4,931         $  (4,931 )   $ —             $ 20,324        $ (20,324 )   $ —
restructuring
charges (3)
                                                                                            
Operating       $ 138,708       $  4,614      $ 143,322       $ 104,182       $ 32,824      $ 137,006
income
                                                                                            
Interest
expense, net    $ (7,259    )   $  3,648      $ (3,611    )   $ (3,939    )   $ —           $ (3,939    )
(4)
                                                                                            
Income before
provision for   $ 131,449       $  8,262      $ 139,711       $ 102,233       $ 32,824      $ 135,057
income taxes
                                                                                            
Provision for
income taxes    $ 51,337        $  (6,370 )   $ 44,967        $ 34,201        $ 11,062      $ 45,263
(5)
                                                                                            
Net income      $ 80,112        $  14,632     $ 94,744        $ 68,032        $ 21,762      $ 89,794
                                                                                            
Earnings per    $ 1.12          $  0.20       $ 1.32          $ 0.95          $ 0.30        $ 1.25
diluted share
                                                                                                        

                     (footnotes follow on the next page)

                Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures(1)
                 Fiscal Year Ended
                 December 28, 2013                            December 29, 2012
                 GAAP Basis     Non-GAAP     Non-GAAP        GAAP Basis     Non-GAAP     Non-GAAP
                 As Reported     Adjustments   Amounts         As Reported     Adjustments   Amounts
                 (Dollars in Thousands Except Earnings Per Share)
                                                                                             
Total revenue    $ 3,599,577     $  (3,167 )   $ 3,596,410     $ 3,112,682     $ 12,500      $ 3,125,182
(2)
                                                                                             
Selling,
distribution,
and              $ 1,201,519     $  (735   )   $ 1,200,784     $ 1,046,861     $ —           $ 1,046,861
administrative
expenses (6)
                                                                                             
Impairment and
restructuring    $ 5,868         $  (5,868 )   $ —             $ 20,324        $ (20,324 )   $ —
charges (3)
                                                                                             
Operating        $ 361,361       $  3,436      $ 364,797       $ 275,699       $ 32,824      $ 308,523
income
                                                                                             
Interest
Expense, net     $ (17,833   )   $  3,648      $ (14,185   )   $ (13,985   )   $ —           $ (13,985   )
(4)
                                                                                             
Income before
provision for    $ 343,528       $  7,084      $ 350,612       $ 261,714       $ 32,824      $ 294,538
income taxes
                                                                                             
Provision for
income taxes     $ 119,138       $  (6,783 )   $ 112,355       $ 88,201        $ 11,062      $ 99,263
(5)
                                                                                             
Net income       $ 224,390       $  13,867     $ 238,257       $ 173,513       $ 21,762      $ 195,275
                                                                                             
Earnings per     $ 3.13          $  0.19       $ 3.32          $ 2.42          $ 0.30        $ 2.72
diluted share
                                                                                                         

(1) The presentation includes non-GAAP financial measures. These non-GAAP
financial measures are not prepared under any comprehensive set of accounting
rules or principles, and do not reflect all of the amounts associated with the
Company's results of operations as determined in accordance with GAAP.

(2) The amount for fiscal 2012 reflects an accrual for a reduction in
interchange income recognized in the Financial Services segment related to the
Visa antitrust litigation. The fiscal 2013 amounts reflect adjustments to the
liability for the Visa settlement.

(3) For fiscal 2013, reflects impairment losses of $4,931 recognized in the
three months ended December 28, 2013, related to a retail store site and $937
recognized in the second quarter of fiscal 2013 related to the closure and
relocation of a retail store in May 2013. For fiscal 2012, reflects impairment
losses primarily on other property and economic development bonds.

(4) Reflects interest adjustments related to certain unrecognized tax
benefits.

(5) Reflects the estimated income tax provision on the non-GAAP adjusted
income before provision for income taxes, and for the three months and fiscal
year ended December 28, 2013, tax adjustments related to changes in
assessments of uncertain tax positions.

(6) Reflects certain employee related expenses primarily related to severance
benefits.

Contact:

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