Cabelas 8-K Cabela’s Inc. Reports Fiscal Fourth Quarter and Fiscal 2004 Year End Results

FOR IMMEDIATE RELEASE	Company Contact:
	Ralph Castner/Chief Financial Officer
	308-255-1227
	Chris Gay/Treasurer
	308-255-2905
	Joe Arterburn/Corporate Communications
	308-255-1204
	Cabela’s Incorporated
	Investor/Media Contact:
	Integrated Corporate Relations
	203-222-9013
	Investor: Chad A. Jacobs/Brendon Frey
	Media: Mike Fox/Megan McDonnell

CABELA’S INC. REPORTS FISCAL FOURTH QUARTER AND FISCAL 2004 YEAR END RESULTS

-Q4 Total Revenue Increased to a Record $579.1 Million

-Company Reported Q4 Fully-Diluted EPS of $0.58

- Fiscal 2004 Total Revenues Increased to $1.56 Billion

-Company Reported FY2004 EPS of $1.03

SIDNEY, Neb. (February 17, 2005) - Cabela’s Incorporated (NYSE: CAB), the World’s Foremost Outfitter of hunting, fishing, and outdoor gear, today reported financial results for its fourth fiscal quarter and fiscal year ended January 1, 2005, which included 13 weeks and 52 weeks, respectively. The Company noted that its fourth fiscal quarter and fiscal year ended January 3, 2004, included 14 weeks and 53 weeks, respectively.

Total revenue for the fourth quarter of 2004 was $579.1 million compared to $548.1 million for the fourth quarter of 2003. Net income for the fourth quarter of 2004 increased 9.9% to $38.5 million, or $0.58 per diluted share, compared to $35.0 million, or $0.60 per diluted share, for the fourth quarter of 2003. As a result of the Company’s recent public offering, weighted average diluted shares outstanding increased 13.4% to 66.4 million for the fourth quarter of 2004 compared to 58.6 million for the fourth quarter of 2003.

During the fourth quarter of 2004: direct revenue increased 5.3% to $378.0 million; retail revenue increased 0.1% to $171.6 million; and financial services revenue increased 41.4% to $24.4 million, each over the fourth quarter of 2003. The Company stated that on a like calendar basis (13 weeks vs. 13 weeks), direct revenue would have increased 11.2%; retail revenue would have increased 9.1%; and same stores sales would have declined 1.2% in the fourth quarter of 2004 compared to the corresponding period a year ago, as detailed in the table at the end of this release.

Total revenue for the year ended January 1, 2005 was $1.56 billion compared to $1.4 billion for the year ended January 3, 2004. Net income for the year ended January 1, 2005 increased 26.5% to $65.0 million compared to $51.4 million for the year ended January 3, 2004. The Company reported diluted earnings per share growth of 10.8% to $1.03 on 63.3 million weighted average diluted shares outstanding for the year ended January 1, 2005, compared to $0.93, on 55.3 million weighted average diluted shares outstanding for the year ended January 3, 2004.

Additionally, for the year ended January 1, 2005: direct revenue increased 5.0% to $970.6 million; retail revenue increased 22.6% to $499.1 million; and financial services revenue increased 34.0% to $78.1 million, each over the year ended January 3, 2004. The Company stated that on a like calendar basis (52 weeks vs. 52 weeks), direct revenue would have increased 6.6%; retail revenue would have increased 24.4%; and same stores sales would have declined 0.6% for 2004 compared to the corresponding period a year ago, as detailed in the table at the end of this release.

Dennis Highby, Cabela’s President and Chief Executive Officer commented, “Our record fourth quarter results represent a great way to end an outstanding year for Cabela’s. We were pleased with the performance of all three segments of our business, despite the more difficult comparison due to a shorter selling season compared to the fourth quarter last year. The positive sales momentum we experienced during the holiday season continues, giving us a heightened degree of confidence as we head into the new year.”

Mr. Highby continued, “Fiscal 2004 was a historic year for Cabela’s. In June, we completed a successful initial public offering raising more than $114 million. This important transaction allowed us to significantly improve our financial position and set the stage for a new era of growth fueled by a more aggressive rollout of our destination retail stores. This past August, we opened our 10^th store in Wheeling, West Virginia, and have announced seven new stores that will add more than 1.3 million square feet to our current operations. This includes stores in Fort Worth, TX, Buda, TX and Lehi, UT in 2005; Rogers, MN in late 2005, weather permitting, Wheat Ridge, CO, and Gonzales, LA in 2006; and East Rutherford, NJ in 2007.”

Mr. Highby concluded, “Our ability to deliver record sales results in each quarter throughout the year underscores the ongoing strength of our brand, the compelling nature of our concept and, most importantly, our employees’ commitment to excellence and the highest level of execution across the board. We truly believe that our position in the marketplace has never been stronger, and we remain dedicated to further building our leadership status and successfully executing a strategy focused on long-term growth and increased shareholder value.”

Conference Call Information

A conference call to discuss fourth quarter and fiscal 2004 year-end operating results is scheduled for today (Thursday, February 17, 2005) at 8:30 AM 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 atwww.cabelas.com and clicking on Cabela’s Fourth Quarter 2004 Earnings Conference Call Webcast. A replay of the call will be archived on www.cabelas.com.

About Cabela’s Incorporated

Cabela’s Incorporated, headquartered in Sidney, Nebraska, is the nation’s largest direct marketer, and a leading specialty retailer, 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 United States, and has long been recognized as the World’s Foremost Outfitterâ. Through Cabela’s established direct business and its growing number of destination retail stores, it offers a wide and distinctive selection of high quality outdoor products at competitive prices while providing superior cu stomer service. Cabela’s operates as an integrated multi-channel retailer, offering its customers a seamless shopping experience through its catalogs, website and destination retail stores. Cabela’s also issues the Cabela’s Clubâ VISA credit card through which it offers a related customer loyalty rewards program as a vehicle for strengthening its customer relationships.

CAUTIONARY STATEMENT FOR THE PURPOSE OF THE SAFE HARBOR PROVISIONS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release and the related web cast (other than historical information) contain "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. 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 ability to negotiate favorable lease and economic development arrangements; expansion into new markets; market saturation due to new destination retail store openi ngs; the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the Company’s growth initiatives; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company’s products; supply and delivery interruptions; adverse weather conditions; fluctuations in operating results; adverse economic conditions; increased fuel prices; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate protection of the Company’s intellectual property; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the “Risk Factors” section of the Company's most recently filed prospectus, which is available at the Company’s website at www.cabelas.com and the SEC’s website at www.sec.gov. The words "believe," "may," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "plan," "will" and similar statements are intended to identify forward-looking statements. 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 BALANCE SHEETS
(Dollar Amounts in Thousands)
(Unaudited)
	January 1,		January 3,
ASSETS	2005		2004
CURRENT ASSETS:
Cash and cash equivalents	$	248,184	$	192,581
Accounts receivable		33,524		32,826
Credit card loans held for sale		64,019		28,013
Credit card loans receivable		5,209		¾
Inventories		313,002		262,763
Prepaid expenses and deferred catalog costs		31,294		31,035
Other current assets		33,255		34,413
Total current assets		728,487		581,631
PROPERTY AND EQUIPMENT, NET		294,141		264,991
OTHER ASSETS:
Marketable securities		145,587		72,632
Other		60,016		44,299
Total other assets		205,603		116,931
Total assets	$	1,228,231	$	963,553
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	100,826	$	91,524
Unpresented checks net of bank balance		34,653		36,788
Accrued expenses and other liabilities		50,264		42,939
Gift certificates and credit card reward points		97,242		80,570
Accrued employee compensation, benefits, and savings plan		54,925		58,217
Time deposits		48,953		12,900
Current maturities of long-term debt		28,327		3,013
Income taxes payable		38,551		27,100
Total current liabilities		453,741		353,051
LONG-TERM LIABILITIES		208,136		237,987
STOCKHOLDERS’ EQUITY		566,354		372,515
Total liabilities and stockholders’ equity	$	1,228,231	$	963,553

CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands Except Per Share and Share Amounts)
(Unaudited)
	Three months ended						Twelve months ended
	January 1,			January 3,			January 1,			January 3,
	2005			2004			2005			2004
REVENUES:
Merchandise sales	$	549,596		$	530,611		$	1,469,720		$	1,331,534
Financial services revenue		24,395			17,249			78,104			58,278
Other revenue		5,117			205			8,150			2,611
Total revenues		579,108			548,065			1,555,974			1,392,423
COST OF REVENUE:
Cost of merchandise sales		333,064			317,265			918,206			826,869
Cost of other revenue		4,251			(717	)		7,459			659
Total cost of revenue (exclusive of depreciation and amortization)		337,315			316,548			925,665			827,528
Gross profit		241,793			231,517			630,309			564,895
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		186,008			175,802			533,094			479,964
OPERATING INCOME		55,785			55,715			97,215			84,931
OTHER INCOME (EXPENSE):
Interest income		332			130			601			408
Interest expense		(2,078	)		(2,654	)		(8,178	)		(11,158	)
Other income, net		5,216			1,211			10,443			5,612
		3,470			(1,313	)		2,866			(5,138	)
INCOME BEFORE PROVISION FOR INCOME TAXES		59,255			54,402			100,081			79,793
INCOME TAX EXPENSE		20,795			19,415			35,085			28,402
NET INCOME	$	38,460		$	34,987		$	64,996		$	51,391
EARNINGS PER SHARE:
Basic	$	0.60		$	0.62		$	1.06		$	0.99
Diluted	$	0.58		$	0.60		$	1.03		$	0.93
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		64,382,845			56,406,202			61,277,352			52,059,926
Diluted		66,437,708			58,596,538			63,277,400			55,306,294

CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar Amounts in Thousands)
(Unaudited)
	Year Ended
	January 1,			January 3,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES	$	47,018		$	67,236
CASH FLOWS FROM INVESTING ACTIVITIES		(127,170	)		(93,718	)
CASH FLOWS FROM FINANCING ACTIVITIES		135,755			40,427
NET INCREASE IN CASH AND CASH EQUIVALENTS		55,603			13,945
CASH AND CASH EQUIVALENTS, Beginning of Year		192,581			178,636
CASH AND CASH EQUIVALENTS, End of Year	$	248,184		$	192,581

(Dollar Amounts in Thousands)
Segment Information:	Three Months Ended						Year Ended
	January 1,			January 3,			January 1,			January 3,
	2005			2004			2005			2004
Direct revenue	$	377,978		$	359,079		$	970,646		$	924,296
Retail revenue		171,618			171,532			499,074			407,238
Financial services revenue		24,395			17,249			78,104			58,278
Other revenue		5,117			205			8,150			2,611
Total revenue	$	579,108		$	548,065		$	1,555,974		$	1,392,423
Direct operating income	$	65,619		$	59,429		$	146,765		$	143,996
Retail operating income		30,962			38,388			72,136			56,193
Financial services operating income		9,713			5,023			31,099			19,271
Other operating income (loss)		(50,509	)		(47,125	)		(152,785	)		(134,529	)
Total operating income	$	55,785		$	55,715		$	97,215		$	84,931
As a percentage of total revenue:
Direct revenue		65.3	%		65.5	%		62.4	%		66.4	%
Retail revenue		29.6	%		31.3	%		32.1	%		29.2	%
Financial services revenue		4.2	%		3.1	%		5.0	%		4.2	%
Other revenue		0.9	%		0.1	%		0.5	%		0.2	%
Total revenue		100.0	%		100.0	%		100.0	%		100.0	%
As a percentage of segment revenue:
Direct operating income		17.4	%		16.6	%		15.1	%		15.6	%
Retail operating income		18.0	%		22.4	%		14.5	%		13.8	%
Financial services operating income		39.8	%		29.1	%		39.8	%		33.1	%
Total operating income		9.6	%		10.2	%		6.2	%		6.1	%

Financial Services Information:

The following table summarizes the results of the Company’s financial services segment on a GAAP basis. For credit card loans securitized and sold, the loans are removed from the Company’s balance sheet and the net earnings on these securitized assets after paying outside investors are reflected as a component of securitization income on a GAAP basis. Net interest income on a GAAP basis includes interest and fee income, interest expense and provision for loan losses from credit card receivables the Company owns. Non-interest income on a GAAP basis includes servicing income, gains on sales of loans and income recognized on retained interests for the entire securitized portfolio, as well as, interchange income on the entire managed portfolio.

(Dollar Amounts in Thousands)
Financial Services Revenue as reported in	Three Months Ended						Year Ended
the Financial Statements:	January 1,			January 3,			January 1,			January 3,
	2005			2004			2005			2004
Interest and fee income	$	3,946		$	2,265		$	12,735		$	7,858
Interest expense		(802	)		(745	)		(3,063	)		(3,226	)
Net interest income		3,144			1,520			9,672			4,632
Noninterest income:
Securitization income		30,818			22,907			96,466			74,472
Other non-interest income		7,153			5,041			24,905			19,050
Total noninterest income		37,971			27,948			121,371			93,522
Less: Customer Rewards Costs		(16,720	)		(12,219	)		(52,939	)		(39,876	)
Financial services revenue	$	24,395		$	17,249		$	78,104		$	58,278

“Managed” credit card loans represent credit card loans owned by the Company plus securitized credit card loans. Since the financial performance of the managed portfolio has a significant impact on the earnings received from servicing the portfolio, the Company believes the following table (see next page) on a “managed” basis is important information to analyze revenue in the financial services segment. The following non-GAAP presentation reflects the financial performance of the credit card loans owned by the Company plus those that have been sold and includes the effects of recording the retained interest at fair value. Interest, interchange (net of customer rewards) and fee income on both the owned and securitized portfolio are recorded in their respective line items. Interest paid to outside investors on the securitized receivables is included with other interest costs and included in interest expense. Credit losses on the entire managed portfolio are included in provision for loan losses. Although the Company’s financial statements are not presented in this manner, management reviews the performance of the managed portfolio in order to evaluate the effectiveness of the Company’s origination and collection activities, which ultimately affects the income received for servicing the portfolio.

(Dollar Amounts in Thousands Except Other Data)
Managed Financial Services Revenue:	Three Months Ended						Year Ended
	January 1,			January 3,			January 1,			January 3,
	2005			2004			2005			2004
Interest income	$	20,502		$	14,671		$	71,309		$	54,412
Interchange income, net of customer reward costs		8,953			8,430			36,493			28,945
Other fee income		5,104			3,645			16,841			13,605
Interest expense		(7,800	)		(5,593	)		(26,750	)		(21,361	)
Provision for loan losses		(4,929	)		(4,626	)		(20,208	)		(17,380	)
Other		2,565			722			419			57
Net managed financial services revenue	$	24,395		$	17,249		$	78,104		$	58,278
As a Percentage of Managed Credit Card Loans
Managed Financial Services Revenue
Interest income		8.5%			7.5%			8.0%			7.7%
Interchange income, net of customer reward costs		3.7%			4.3%			4.1%			4.1%
Other fee income		2.1%			1.9%			1.9%			1.9%
Interest expense		(3.2%)			(2.9%)			(3.0%)			(3.0%)
Provision for loan losses		(2.0%			(2.4%)			(2.3%)			(2.4%)
Other		1.1%			0.4%			0.0%			0.0%
Net managed financial services revenue		10.2%			8.8%			8.7%			8.3%
Average reported credit card loans	$	99,682		$	64,874		$	82,526		$	61,850
Average managed credit card loans	$	964,305		$	778,733		$	888,730		$	705,265
Other Data:
Average Active Accounts		669,242			567,268			618,951			522,288
Average Account Balance	$	1,441		$	1,373		$	1,436		$	1,350

Fiscal 2004 vs. Fiscal 2003 Information:

Information on the extra week of the fourth fiscal quarter and fiscal year ended January 3, 2004 is provided to allow investors to separate the impact of this extra week on reported results in comparison to reported results for the fourth fiscal quarter and fiscal year ended January 1, 2005. Management believes these measurements are an important analytical tool to aid in understanding underlying operating trends without distortion due to the extra week included in fiscal 2003.

	Period Ending						Excluding Extra Week
	January 1, 2005		January 3, 2004		% Incr/(Decr)		January 3, 2004		% Incr/(Decr)		Comparable Store Sales (3)
13 weeks vs. 14 weeks
Direct revenue (1)	$	377,978	$	359,079		5.3%	$	340,001		11.2%
Retail revenue (1)		171,618		171,532		0.1%		157,275		9.1%		(1.2%)
Financial services revenue (4)		24,395		17,249		41.4%		17,249		41.4%
Other revenue		5,117		205		n/a		205		n/a
Total revenue	$	579,108	$	548,065		5.7%	$	514,730		12.5%
52 weeks vs. 53 weeks
Direct revenue (2)	$	970,646	$	924,296		5.0%	$	910,270		6.6%
Retail revenue (2)		499,074		407,238		22.6%		401,233		24.4%		(0.6%)
Financial services revenue (4)		78,104		58,278		34.0%		58,278		34.0%
Other revenue		8,150		2,611		n/a		2,611		n/a
Total revenue	$	1,555,974	$	1,392,423		11.7%	$	1,372,392		13.4%

(1)	In the 13-week vs. 14-week period we take out the first week of the period, week 40, of our fiscal year 2003 in order to show a comparable like calendar quarter. Week 40 of fiscal 2003 accounted for $19.1 million and $14.3 million, respectively, of Direct and Retail revenue.
(2)	In the 52-week vs. 53-week period we take out week 1 of our fiscal year 2003 in order to show a comparable like calendar year. Week 1 of fiscal year 2003 accounted for $14.0 million and $6.0 million, respectively, of Direct and Retail revenue.
(3)	Comparable store sales are presented on a 13-week and 52-week basis.
(4)	Our Financial services revenue is not adjusted for the extra week as the year end of our wholly-owned bank subsidiary, World’s Foremost Bank, corresponds to a calendar year end of December 31st, therefore there is no adjustment for the extra week.