FOR: THE SPORTSMAN'S GUIDE
411 Farwell Avenue
South Saint Paul, Minn. 55075 FOR IMMEDIATE RELEASE
NASDAQ NMS: SGDE
CONTACT: 612-344-1000
William P. Bartkowski
BlueFire Partners
612-344-1012 (direct)
THE SPORTSMAN'S GUIDE RELEASES FIRST QUARTER 2003 RESULTS
Net Earnings Up 22% Over Comparable 2002 Quarter; Earnings Per Share at
High End of Recent Guidance; Internet-related Sales as Percentage of Total Sales
Hit All-time High
SOUTH ST. PAUL, MINN. (4/29/03) -- The Sportsman's Guide, Inc. (NASDAQ NMS:
SGDE) today reported the results of operations for the quarter ended March 31,
2003. Sales for the quarter were $43.7 million, a five percent increase over the
$41.5 million reported for the same period one year ago. The Company reported
net earnings of $957,000, or $0.19 per fully diluted share for the quarter, a 22
percent increase when compared to the $784,000, or $0.16 per fully diluted
share, reported for the three months ended March 31, 2002. The increase in sales
and earnings per share quarter over quarter was due primarily to higher
Internet-related sales.
Gregory R. Binkley, President and Chief Executive Officer of the Company,
stated, "Our strong first quarter 2003 results were due in large part to higher
levels of Internet-related sales, which were approximately 34% of total sales
for the quarter, compared to 27% in the first quarter of 2002. In addition,
catalog sales increased slightly over the same period one year ago despite a
planned reduction in catalog circulation."
Total catalog circulation for the first quarter was 11.3 million catalogs,
compared to 11.8 million during the first quarter of 2002. The Company mailed
nine catalog editions, consisting of three main catalogs, three Buyer's Club
Advantage(TM) catalogs and three specialty catalogs during the quarter ended
March 31, 2003, compared to 11 catalog editions for the same quarter in 2002.
"The increase in Internet-related sales is the result of enhancements that
we continue to make to our websites and the improvements that we continue to
make to our marketing and merchandising programs." Binkley concluded.
The Sportsman's Guide is a company offering value-priced outdoor gear and
general merchandise, with a special emphasis on outdoor clothing, equipment and
footwear, sold through both catalogs and Internet websites. The Company's
websites include www.sportsmansguide.com, and www.bargainoutfitters.com.
-- financial highlights follow --
THIS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WHICH ARE SUBJECT TO CHANGE
BASED ON VARIOUS IMPORTANT FACTORS, INCLUDING BUT NOT LIMITED TO GENERAL
ECONOMIC CONDITIONS, A CHANGING MARKET ENVIRONMENT FOR THE COMPANY'S PRODUCTS
AND THE MARKET ACCEPTANCE OF THE COMPANY'S CATALOGS, INTERNET SITES AND
OFFERINGS.
THE SPORTSMAN'S GUIDE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands of dollars)
<Table>
<Caption>
March 31, December 31,
2003 2002
---------------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 10,880 $ 17,152
Accounts receivable -- net 1,950 3,014
Inventory 22,528 20,593
Promotional material 3,693 2,540
Prepaid expenses and other 1,806 1,133
Deferred income taxes 1,650 2,409
-------- --------
Total current assets 42,507 46,841
PROPERTY AND EQUIPMENT, NET 2,531 2,672
-------- --------
Total assets $ 45,038 $ 49,513
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 13,731 $ 16,230
Accrued expenses and other current liabilities 9,629 12,543
-------- --------
Total current liabilities 23,360 28,773
LONG-TERM LIABILITIES 85 119
-------- --------
Total liabilities 23,445 28,892
SHAREHOLDERS' EQUITY 21,593 20,621
-------- --------
Total liabilities and shareholders' equity $ 45,038 $ 49,513
======== ========
THE SPORTSMAN'S GUIDE, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For the quarters ended
March 31, 2003 and 2002
(In thousands, except per share data)
<Table>
<Caption>
For the quarters ended March 31,
--------------------- --------------------
2003 2002
--------------------- --------------------
Sales $ 43,749 $ 41,465
Cost of sales 29,552 28,162
-------- --------
Gross profit 14,197 13,303
Selling, general and administrative expenses 12,730 12,087
-------- --------
Earnings from operations 1,467 1,216
Miscellaneous income (expense) 29 29
-------- --------
Earnings before income taxes 1,496 1,245
Income tax expense 539 461
-------- --------
Net earnings $ 957 $ 784
======== ========
Net earnings per share:
Basic $ .20 $ .17
======== ========
Diluted $ .19 $ .16
======== ========
Weighted average common and common equivalent
shares outstanding:
Basic 4,757 4,749
======== ========
Diluted 5,119 4,885
======== ========