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 2003 THIRD QUARTER RESULTS
Sales and EPS Well Above Levels Reported for Same Period in 2002
SOUTH ST. PAUL, MINN. (10/28/03) -- The Sportsman's Guide, Inc. (NASDAQ
NMS: SGDE) today reported the results of operations for the quarter ended
September 30, 2003. Sales for the quarter were $41.2 million, an increase over
the $36.7 million reported for the same period one year ago. The Company
reported net earnings of $710,000, and earnings of $0.13 per fully diluted share
for the quarter, compared to $269,000, or $0.05 per fully diluted share,
reported for the three months ended September 30, 2002.
For the nine months ended September 30, 2003, sales were $123.0
million, an increase over the $113.0 million reported for 2002. The Company
recorded net earnings of $2.3 million, or $0.44 per fully diluted share, for the
first three quarters of the year, compared to net earnings of $1.4 million, or
$0.27 per fully diluted share, for the first nine months ended September 30,
2002.
Company officials noted that the 12.2% increase in sales for the
quarter was due to increases in both Internet-related and catalog sales.
Internet-related sales totaled 36 percent of total sales in the quarter,
compared to approximately 30 percent of total sales for the same period in 2002.
Catalog sales increased primarily as a result of increased catalog circulation
and improved catalog productivity.
Gregory R. Binkley, President and Chief Executive Officer of the
Company, stated, "Once again we have seen significant year over year
improvements in sales, in Internet-related sales and in net earnings. The
improvements in the quarter were largely driven by continued commitment to our
formula and our focus on enhancing productivity and efficiency."
The Company will hold a conference call on Wednesday, October 29, 2003
to discuss the results of the quarter. Gregory R. Binkley, President and Chief
Executive Officer, and Charles B. Lingen, Executive Vice President and Chief
Financial Officer, will be present on the call to provide commentary and to take
questions. The call will be begin at 10:30 am, CST. Participants may access the
call by dialing 1-800-209-8032. The call may also be accessed via the Internet
at www.SportsmansGuideIR.com.
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>
September 30, September 30, December 31,
2003 2002 2002
------------- ------------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $10,810 $ 2,606 $17,152
Accounts receivable - net 1,853 1,832 3,014
Inventory 29,710 28,066 20,593
Promotional material 3,920 4,347 2,540
Prepaid expenses and other 2,020 1,249 1,133
Deferred income taxes 2,270 1,428 2,409
------- ------- -------
Total current assets 50,583 39,528 46,841
PROPERTY AND EQUIPMENT, NET 2,296 2,924 2,672
------- ------- -------
Total assets $52,879 $42,452 $49,513
======= ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $18,463 $16,124 $16,230
Accrued expenses and other current liabilities 11,545 8,242 12,543
------- ------- -------
Total current liabilities 30,008 24,366 28,773
LONG-TERM LIABILITIES 246 112 119
------- ------- -------
Total liabilities 30,254 24,478 28,892
SHAREHOLDERS' EQUITY 22,625 17,974 20,621
------- ------- -------
Total liabilities and shareholders' equity $52,879 $42,452 $49,513
======= ======= =======
</Table>
THE SPORTSMAN'S GUIDE, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For The Three Months And Nine Months Ended
September 30, 2003 and 2002
(In thousands, except per share data)
<Table>
<Caption>
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Sales $ 41,213 $ 36,746 $ 123,003 $ 113,002
Cost of sales 28,672 25,557 84,321 77,959
--------- --------- --------- ---------
Gross profit 12,541 11,189 38,682 35,043
Selling, general and administrative expenses 11,424 10,823 35,056 32,967
--------- --------- --------- ---------
Earnings from operations 1,117 366 3,626 2,076
Miscellaneous income (expense), net (10) 46 (14) 79
--------- --------- --------- ---------
Earnings before income taxes 1,107 412 3,612 2,155
Income tax expense 397 143 1,299 785
--------- --------- --------- ---------
Net earnings $ 710 $ 269 $ 2,313 $ 1,370
========= ========= ========= =========
Net earnings per share:
Basic $ .15 $ .06 $ .49 $ .29
========= ========= ========= =========
Diluted $ .13 $ .05 $ .44 $ .27
========= ========= ========= =========
Weighted average common and common
equivalent shares outstanding:
Basic 4,801 4,754 4,769 4,752
========= ========= ========= =========
Diluted 5,355 5,070 5,241 5,001
========= ========= ========= =========
</Table>