EXHIBIT 99
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 ACQUIRES THE GOLF WAREHOUSE-
TGW.COM IN ALL CASH TRANSACTION
Minnesota-based Catalog and Internet Retailer Purchases Leading Online and
Catalog Golf Retailer in Accretive Transaction; Company Raises Sales and
Earnings Guidance
SOUTH ST. PAUL, MINN. (JUNE 29, 2004) - The Sportsman's Guide, Inc.
(Nasdaq NMS: SGDE), a St. Paul, Minnesota-based catalog and Internet retailer,
announced today that it has acquired The Golf Warehouse, LLC, ("TGW") the
Wichita, Kansas-based leading online and catalog retailer of golf equipment,
apparel and accessories, in an all cash transaction valued at approximately $30
million. A combination of available cash and an expanded bank credit facility
will be used to finance the transaction, purchasing TGW from its management and
Falconhead Capital, a private investment firm.
The Golf Warehouse was founded in 1998 and has enjoyed extraordinary
growth in sales since then, recording a five-year compounded growth rate in
excess of 60%. For its year ended December 31, 2003, TGW had sales of over $40
million, adjusted EBITDA of approximately $3 million and operating income of
$1.7 million. Its website is located at www.TGW.com. The transaction is expected
to be immediately accretive and the Company is increasing current revenue
guidance for all of 2004 by 10% to 12% and current earnings per share guidance
for the same period by $0.08 to $0.10.
TGW.com offers consumers more than 18,000 brand-name items. These items
include Titleist, Taylor Made, Nike, Callaway, PING, Cobra, Footjoy and adidas.
It rotates feature products on its homepage, provides easy online navigation,
huge in-stock warehousing, efficient
fulfillment and friendly customer service. TGW began its print catalog in the
winter of 2002, reaching roughly one million golf consumers and gift givers with
each of its four annual editions.
Gregory R. Binkley, President and Chief Executive Officer of The
Sportsman's Guide, commented on the transaction, "We are very pleased to
announce the consummation of this transaction. It meets all of the objectives
that we established for ourselves when we set out to grow our business through
acquisition. These objectives with respect to this acquisition include:
- It is accretive to earnings;
- Its product offerings are consistent with our commitment to
equip consumers to pursue and live an outdoors lifestyle;
- It has a talented and effective management team, who we will
retain;
- It adds a spring and summer business to our business, helping
to smooth some of the seasonality that we have traditionally
seen;
- It has recently started a catalog where we can add significant
value based on our experience and expertise;
- It has shown remarkable growth in online sales;
- We believe significant synergies and cost savings will be
achieved;
Binkley went on to comment on the online golf industry and TGW. "We are
especially excited to add the premier and preeminent online golf retailer to our
Company and we will maintain its strong brand identity. TGW enjoys strong
relationships with The Golf Channel, with the PGA Tour and with all of the major
equipment manufacturers. It has shown significant year over year sales growth
since its inception, gaining market share well in excess of industry growth
rates. Sales of golf equipment and golf apparel represent a $5 to $6 billion
annual market and statistics tell us golfers use the Internet more frequently
than many other consumers grouped by leisure activity. We expect to see TGW's
market share and consumer awareness increase going forward."
Mark Marney, Founder and Chief Executive Officer of TGW, stated, "Our
management team and our employees are excited to become a part of a growing,
dynamic public company that has been one of the best performing companies of its
size over the past three years. We look forward to making significant
contributions to the ongoing success of The Sportsman's Guide."
CONFERENCE CALL
The Sportsman's Guide will hold a conference call on Wednesday, June 30,
2004, to discuss the acquisition. 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 a.m., Central Time. Participants may
access the call by dialing 1-800-209-8032 -- Conference ID # 8506172. The call
may also be accessed via the Internet at www.SportsmansGuideIR.com.
The Sportsman's Guide offers value-priced outdoor gear and general
merchandise with a special emphasis on outdoor clothing, equipment and footwear,
sold through both catalogs and Internet websites: www.sportsmansguide.com, and
www.bargainoutfitters.com. The Company was recently ranked 35th on
BusinessWeek's listing of 100 "Hot Growth Companies." The list appeared in the
June 7, 2004 edition of the magazine. Inclusion on the list was based on a
company's three-year results in sales growth, earnings growth and return on
invested capital. Investor information about the Company can be found at
www.sportsmansguideir.com.
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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.