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 RECORD QUARTER AND 2003 YEAR-END RESULTS
Year End Sales and EPS Well Above Levels Reported for 2002
and at the High End of Recent Guidance
SOUTH ST. PAUL, MINN. (2/13/04) -- The Sportsman's Guide, Inc. (NASDAQ
NMS: SGDE) today reported results of operations for the quarter and year ended
December 31, 2003 that were at the high end of the Company's most recent
guidance. Sales for the quarter were $71.7 million, an increase over the $66.3
million reported for the same period one year ago. The Company reported net
earnings of $3.8 million, or $0.71 per fully diluted share for the quarter,
compared to $2.6 million, or $0.53 per share, reported for the three months
ended December 31, 2002.
For the twelve months ended December 31, 2003, sales were $194.7
million, an increase over the $179.3 million reported for 2002. The Company
recorded net earnings of $6.2 million, or $1.16 per fully diluted share, for the
year, compared to net earnings of $4.0 million, or $0.80 per share, for the
twelve months ended December 31, 2002.
Gregory R. Binkley, President and Chief Executive Officer of the
Company, stated, "Our 2003 results showed sales up 8.6% and net earnings up
53.3%. These increases were due to the continuing benefit of an effective and
profitable mail plan and stronger Internet related sales activity, approximating
36% of total catalog and Internet sales for 2003, compared to 30% last year."
Binkley also noted the Company ended the year with its strongest
balance sheet ever, with $32.1 million of cash, no outstanding bank advances and
inventory of $18.9 million, just over 8% lower than 2002 levels.
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.
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THE SPORTSMAN'S GUIDE, INC.
BALANCE SHEETS
(Unaudited)
(In thousands of dollars)
December 31, December 31,
2003 2002
---- ----
ASSETS
CURRENT ASSETS
Cash and cash equivalents $32,054 $17,152
Accounts receivable -- net 3,034 3,014
Inventory 18,874 20,593
Promotional material 2,565 2,540
Prepaid expenses and other 1,871 1,133
Deferred income taxes 3,176 2,409
------- -------
Total current assets 61,574 46,841
PROPERTY AND EQUIPMENT, NET 2,248 2,672
------- -------
Total assets $63,822 $49,513
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $18,950 $16,230
Accrued expenses and other current liabilities 17,877 12,543
------- -------
Total current liabilities 36,827 28,773
LONG-TERM LIABILITIES 187 119
------- -------
Total liabilities 37,014 28,892
SHAREHOLDERS' EQUITY 26,808 20,621
------- -------
Total liabilities and shareholders' equity $63,822 $49,513
======= =======
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THE SPORTSMAN'S GUIDE, INC.
INCOME STATEMENTS
(Unaudited)
For The Three Months And Years Ended
December 31, 2003 and 2002
(In thousands, except per share data)
Three months ended Years ended
December 31, December 31,
------------ ------------
2003 2002 2003 2002
---- ---- ---- ----
Sales $ 71,700 $ 66,313 $ 194,703 $ 179,315
Cost of sales 46,318 42,748 130,639 120,707
--------- --------- --------- ---------
Gross profit 25,382 23,565 64,064 58,608
Selling, general and administrative expenses 19,411 19,016 54,467 51,983
--------- --------- --------- ---------
Earnings from operations 5,971 4,549 9,597 6,625
Interest expense -- (1) -- (1)
Miscellaneous income (expense), net 38 (376) 24 (297)
--------- --------- --------- ---------
Earnings before income taxes 6,009 4,172 9,621 6,327
Income tax expense 2,164 1,525 3,463 2,310
--------- --------- --------- ---------
Net earnings $ 3,845 $ 2,647 $ 6,158 $ 4,017
========= ========= ========= =========
Net earnings per share:
Basic $ .80 $ .56 $ 1.29 $ .85
========= ========= ========= =========
Diluted $ .71 $ .53 $ 1.16 $ .80
========= ========= ========= =========
Weighted average common and common equivalent
shares outstanding:
Basic 4,834 4,754 4,785 4,752
========= ========= ========= =========
Diluted 5,437 5,000 5,290 5,001
========= ========= ========= =========
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