Cabelas 8-K Cabela’s Inc. Reports Fourth Quarter and Fiscal 2005 Year End Results

Exhibit 99

FOR IMMEDIATE RELEASE	Media Contact:
	Joe Arterburn
	308-255-1204
	Cabela’s Incorporated
	Investor Contact:
	Chris Gay
	308-255-2905
	Cabela’s Incorporated

CABELA’S INC. REPORTS FOURTH QUARTER AND FISCAL 2005 YEAR END RESULTS

-Q4 Total Revenue Increased Approximately 17% to a Record $675.4 Million

-Company Reported Q4 Fully-Diluted EPS of $0.64

- Fiscal 2005 Total Revenue Increased Approximately 16% to a Record $1.80 Billion

-Company Reported FY2005 Fully-Diluted EPS of $1.10

SIDNEY, Neb. (February 23, 2006) - 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 December 31, 2005.

Total revenue for the fourth fiscal quarter of 2005 increased 16.6% to $675.4 million compared to $579.1 million for the fourth fiscal quarter of 2004. Net income for the fourth fiscal quarter of 2005 increased 10.5% to $42.5 million, or $0.64 per diluted share, compared to $38.5 million, or $0.58 per diluted share, for the fourth fiscal quarter of 2004.

Cabela’s had a very strong fourth fiscal quarter of 2005 within each of its business segments compared to the fourth fiscal quarter of 2004: direct revenue increased $26.9 million, or 7.1%, to $404.9 million; total retail revenue increased 40.3% to $240.9 million with a same store sales decrease of 4.7%, which was improved over prior 2005 quarters; and financial services revenue increased 23.9% to $30.2 million.

Total revenue for fiscal 2005 increased 15.7% to a Company record of $1.80 billion compared to $1.56 billion in fiscal 2004. Net income for fiscal 2005 increased 11.7% to $72.6 million compared to $65.0 million for fiscal 2004. The Company reported diluted earnings per share growth of 6.8% to $1.10 on 66.3 million weighted average diluted shares for fiscal 2005 compared to $1.03 on 63.3 million weighted average diluted shares for fiscal 2004.

Each of the Company’s three business segments grew in fiscal 2005 compared to fiscal 2004: direct revenue increased 6.9% to $1.0 billion; retail revenue increased 24.3% to $620.2 million with a same store sales decrease of 6.3%; and financial services revenue increased 48.6% to $116.1 million. In addition, land sales in the Company’s other segment increased other revenue to $25.6 million in fiscal 2005 from $8.2 million in fiscal 2004.

“We are extremely pleased with our record fourth quarter results, which represent a strong finish to another solid year,” said Dennis Highby, Cabela’s President and Chief Executive Officer. “The positive momentum we experienced during the holiday season gives us a heightened degree of confidence as we head into 2006.”

“Fiscal 2005 was an incredibly productive year for Cabela’s, with the opening of large-format destination stores in Fort Worth, Texas; Buda, Texas; Lehi, Utah; and Rogers, Minn.,” Highby said. “These four new stores added more than 700,000 square-feet to our current operations, increasing our total number of destination retail stores to fourteen. In 2006, we are scheduled to open five more destination stores, bringing our world-famous retail experience to our great customers in even more locations. We also are extremely proud to have achieved $1 billion in sales in our direct business, which marks a major milestone for our Company and is a testament to the ongoing strength of the Cabela’s brand. ” Mr. Highby concluded, “Cabela’s powerful multi-channel model continues to provide us with a competitive advantage, and we are committed to building on our leadership position in the marketplace.”

Conference Call Information

A conference call to discuss fourth quarter and fiscal 2005 year end operating results is scheduled for today (Thursday, February 23, 2006) at 4:30 PM 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 and clicking on Cabela’s Fourth Quarter 2005 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 world’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 world, and has long been recognized as the World’s Foremost Outfitter®. Through Cabela’s well-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 customer service. Cabela’s also issues the Cabela’s Club® VISA credit card, which serves as its primary customer loyalty rewards program.

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 included, but are not limited to, the Company’s statements regarding its level of confidence for 2006, future store openings and its competitive advantage. 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 purchase, lease and/or economic development arrangements; expansion into new markets; market saturation due to new destination retail store openings; 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 shortages or interruptions; adverse weather conditions; unseasonal weather conditions which impact the demand for the Company’s products; fluctuations in operating results; adverse economic conditions causing a decline in discretionary consumer spending; the cost of fuel increasing; delays in road construction and/or traffic planning around the Company’s new destination retail stores; road construction around the Company’s existing destination retail stores; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate protection of the Company’s intellectual property; decreased interchange fees received by the Company’s financial services business as a result of the current interchange litigation against VISA; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the Company’s filings with the SEC (including the information set forth in the “Factors Affecting Future Results” section of the Company's Form 10-K for the fiscal year ended January 1, 2005), 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 BALANCE SHEETS
(Dollar Amounts in Thousands)
(Unaudited)
	December 31,		January 1,
ASSETS	2005		2005
CURRENT ASSETS:
Cash and cash equivalents	$	86,923	$	248,184
Accounts receivable		35,342		33,524
Credit card loans held for sale		77,690		64,019
Credit card loans receivable		11,968		5,209
Inventories		396,635		313,002
Prepaid expenses and deferred catalog costs		42,725		31,294
Other current assets		42,744		33,255
Total current assets		694,027		728,487
PROPERTY AND EQUIPMENT, NET		459,622		294,141
OTHER ASSETS:
Marketable securities		145,744		145,587
Other		66,887		60,016
Total other assets		212,631		205,603
Total assets	$	1,366,280	$	1,228,231
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	162,305	$	100,826
Unpresented checks net of bank balance		21,652		34,653
Accrued expenses and other liabilities		55,941		50,264
Gift certificates and credit card reward points		121,120		97,242
Accrued employee compensation, benefits, and savings plan		60,247		54,925
Time deposits		62,683		48,953
Current maturities of long-term debt		29,049		28,327
Income taxes payable and deferred income taxes		35,471		38,551
Total current liabilities		548,468		453,741
LONG-TERM LIABILITIES		177,959		208,136
STOCKHOLDERS’ EQUITY		639,853		566,354
Total liabilities and stockholders’ equity	$	1,366,280	$	1,228,231

CABELA'S INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands Except Per Share and Share Amounts)
(Unaudited)
	Three months ended						Year ended
	December 31,			January 1,			December 31,			January 1,
	2005			2005			2005			2005
REVENUE:
Merchandise sales	$	645,788		$	549,596		$	1,657,974		$	1,469,720
Financial services revenue		30,234			24,395			116,100			78,104
Other revenue		(575	)		5,117			25,587			8,150
Total revenue		675,447			579,108			1,799,661			1,555,974
COST OF REVENUE:
Cost of merchandise sales		388,188			333,064			1,044,028			918,206
Cost of other revenue		(933	)		4,251			20,294			7,459
Total cost of revenue (exclusive of depreciation and amortization)		387,255			337,315			1,064,322			925,665
Gross profit		288,192			241,793			735,339			630,309
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		219,334			186,008			620,376			533,094
OPERATING INCOME		68,858			55,785			114,963			97,215
OTHER INCOME (EXPENSE):
Interest income		128			332			672			601
Interest expense		(2,991	)		(2,078	)		(10,928	)		(8,178	)
Other income, net		2,701			5,216			10,663			10,443
		(162	)		3,470			407			2,866
INCOME BEFORE PROVISION FOR INCOME TAXES		68,696			59,255			115,370			100,081
INCOME TAX EXPENSE		26,185			20,795			42,801			35,085
NET INCOME	$	42,511		$	38,460		$	72,569		$	64,996
EARNINGS PER SHARE:
Basic	$	0.66		$	0.60		$	1.12		$	1.06
Diluted	$	0.64		$	0.58		$	1.10		$	1.03
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		64,747,818			64,382,845			64,668,973			61,277,352
Diluted		66,098,866			66,437,708			66,268,374			63,277,400

CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar Amounts in Thousands)
(Unaudited)
	Year Ended
	December 31,			January 1,
	2005			2005
CASH FLOWS FROM OPERATING ACTIVITIES	$	72,564		$	46,659
CASH FLOWS FROM INVESTING ACTIVITIES		(204,867	)		(126,811	)
CASH FLOWS FROM FINANCING ACTIVITIES		(28,958	)		135,755
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(161,261	)		55,603
CASH AND CASH EQUIVALENTS, Beginning of Year		248,184			192,581
CASH AND CASH EQUIVALENTS, End of Year	$	86,923		$	248,184

(Dollar Amounts in Thousands)
Segment Information:	Three Months Ended						Year Ended
	December 31,			January 1,			December 31,			January 1,
	2005			2005			2005			2005
Direct revenue	$	404,924		$	377,978		$	1,037,778		$	970,646
Retail revenue		240,864			171,618			620,196			499,074
Financial services revenue		30,234			24,395			116,100			78,104
Other revenue		(575	)		5,117			25,587			8,150
Total revenue	$	675,447		$	579,108		$	1,799,661		$	1,555,974
Direct operating income	$	70,060		$	65,619		$	150,788		$	146,765
Retail operating income		46,452			30,962			73,660			72,136
Financial services operating income		14,999			9,713			61,355			31,099
Other operating income (loss)		(62,653	)		(50,509	)		(170,840	)		(152,785	)
Total operating income	$	68,858		$	55,785		$	114,963		$	97,215
As a percentage of total revenue:
Direct revenue		59.9	%		65.3	%		57.7	%		62.4	%
Retail revenue		35.7			29.6			34.5			32.1
Financial services revenue		4.5			4.2			6.5			5.0
Other revenue		(0.1	)		0.9			1.4			0.5
Total revenue		100.0	%		100.0	%		100.0	%		100.0	%
As a percentage of segment revenue:
Direct operating income		17.3	%		17.4	%		14.5	%		15.1	%
Retail operating income		19.3	%		18.0	%		11.9	%		14.5	%
Financial services operating income		49.6	%		39.8	%		52.8	%		39.8	%
Total operating income (1)		10.2	%		9.6	%		6.4	%		6.2	%

(1) The percentage set forth is a percentage of consolidated revenue rather than revenue by segment as it is based upon our consolidated operating income. A separate line item is not included for Other operating income as this amount is reflected in the total operating income amount, which reflects our consolidated operating results.

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 for the credit card loans receivable 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:	December 31,			January 1,			December 31,			January 1,
	2005			2005			2005			2005
Interest and fee income	$	4,007		$	3,946		$	17,196		$	12,735
Interest expense		(902	)		(802	)		(3,241	)		(3,063	)
Net interest income		3,105			3,144			13,955			9,672
Non-interest income:
Securitization income		38,537			30,818			133,032			96,466
Other non-interest income		9,196			7,153			31,836			24,905
Total non-interest income		47,733			37,971			164,868			121,371
Less: Customer Rewards Costs		(20,604	)		(16,720	)		(62,723	)		(52,939	)
Financial services revenue	$	30,234		$	24,395		$	116,100		$	78,104

“Managed” credit card loans represent credit card loans receivable 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 receivable owned by the Company plus those that have been sold and includes the effects of recording the retained interest at fair value. Interest income, interchange income (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 credit card loans 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
	December 31,			January 1,			December 31,			January 1,
	2005			2005			2005			2005
Interest income	$	29,348		$	20,502		$	102,824		$	71,309
Interchange income, net of customer reward costs		12,800			8,953			52,737			36,493
Other fee income		5,941			5,104			20,738			16,841
Interest expense		(12,862	)		(7,800	)		(41,654	)		(26,750	)
Provision for loan losses		(7,207	)		(4,929	)		(24,254	)		(20,208	)
Other		2,214			2,565			5,709			419
Net managed financial services revenue	$	30,234		$	24,395		$	116,100		$	78,104
As a Percentage of Managed Credit Card Loans
Managed Financial Services Revenue
Interest income		9.7	%		8.5	%		9.4	%		8.0	%
Interchange income, net of customer reward costs		4.2			3.7			4.8			4.1
Other fee income		2.1			2.1			1.9			1.9
Interest expense		(4.3	)		(3.2	)		(3.8	)		(3.0	)
Provision for loan losses		(2.4	)		(2.0	)		(2.2	)		(2.3	)
Other		0.7			1.1			0.5			0.0
Net managed financial services revenue		10.0	%		10.2	%		10.6	%		8.7	%
Average reported credit card loans	$	110,371		$	99,682		$	106,115		$	82,526
Average managed credit card loans	$	1,206,695		$	964,305		$	1,095,580		$	888,730
Other Data:
Average Active Accounts		791,868			669,242			726,214			618,951
Average Account Balance	$	1,524		$	1,441		$	1,509		$	1,436