EXHIBIT 99
FOR: THE SPORTSMAN'S GUIDE
411 Farwell Avenue
South Saint Paul, Minn. 55075 FOR IMMEDIATE RELEASE
NASDAQ NMS: SGDE
CONTACT: William P. Bartkowski
MeritViewPartners
612.605.8616
THE SPORTSMAN'S GUIDE RELEASES RECORD 2005 FIRST QUARTER RESULTS
RECORD QUARTERLY NET SALES ABOVE AND EARNINGS PER SHARE AT HIGH END OF MOST
RECENT GUIDANCE
SOUTH ST. PAUL, MINN. (5/04/05) -- The Sportsman's Guide, Inc. (NASDAQ NMS:
SGDE) today reported results for the quarter ended March 31, 2005 that, with
respect to net sales, were above most recent guidance and, with respect to fully
diluted earnings per share, were at the high end of that guidance.
Net sales for the Company's first quarter were $64.3 million, compared
with $44.6 million reported for the same period in 2004. The quarter over
quarter 44.2% increase in consolidated net sales was due in large part to the
acquisition of The Golf Warehouse ("TGW") in June of 2004 and net sales
increasing 12% at The Sportsman's Guide ("TSG"). The increase at TSG was largely
the result of increased Internet sales.
Net earnings for the quarter were $2.1 million, or $0.26 per fully
diluted share, a 79.6% increase over the $1.2 million, or $0.15 per fully
diluted share, reported for the same period in 2004. The per share calculations
for the most recent period have been adjusted to reflect the Company's recent
3-for-2 stock split, distributed to shareholders on April 15, 2005. Without the
effect of the split, fully diluted earnings per share for the quarter ended
March 31, 2005 would have been $0.39 per share, compared to $0.22 per share for
the same period in 2004.
Gregory R. Binkley, President and Chief Executive Officer of the
Company, stated, "We had a very strong first quarter due to a number of factors.
We saw strong net sales at both TGW and TSG.
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TSG's double digit sales growth was particularly gratifying and was due to our
success in generating higher levels of Internet-related sales. The increase in
total net sales and in the percentage of Internet-related sales is also the
result of the continued strong performance of TGW. The impact of these factors
pushed consolidated Internet-related sales to over 50% of total catalog and
Internet sales for the very first time in our history."
The Company will hold a conference call to discuss the results of the
quarter at 10:30 am, CDT, Thursday, May 5, 2005. Gregory R. Binkley, President
and Chief Executive Officer of the Company, and Charles B. Lingen, Executive
Vice President and Chief Financial Officer, will be present on the call.
Participants may access the call by dialing 1-800-362-0574 and asking for The
Sportsman's Guide conference call. The call may also be accessed via the
Internet at WWW.SPORTSMANSGUIDEIR.COM.
The Company also noted that its Annual Meeting of Shareholders will be
held on Friday, May 6, 2005, at 1:00 pm, CDT, at the Company's executive offices
at 411 Farwell Avenue, South St. Paul, Minn. The Sportsman's Guide is an
Internet and catalog retailer offering value-priced outdoor gear and general
merchandise, with a special emphasis on outdoor clothing, outdoor equipment,
golf apparel and equipment and footwear. The Company sells through both Internet
Web sites and catalogs. The Company's Web sites include www.sportsmansguide.com,
www.tgw.com and http://www.bargainoutfitters.com.
- FINANCIAL HIGHLIGHTS TO 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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands of dollars)
<Table>
<Caption>
March 31, March 31, December 31,
2005 2004 2004
--------- --------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,851 $ 16,694 $ 8,616
Accounts receivable - net 2,996 2,147 3,955
Inventory 30,380 23,032 29,148
Promotional material 4,085 3,622 3,578
Prepaid expenses and other 3,577 2,489 3,123
Income taxes receivable -- 655 --
Deferred income taxes 907 2,220 1,122
--------- --------- ------------
Total current assets 44,796 50,859 49,542
PROPERTY AND EQUIPMENT, NET 2,493 1,947 2,693
OTHER ASSETS
Goodwill 17,183 -- 17,176
Trade and domain name 10,200 -- 10,200
Other intangibles 613 -- 658
--------- --------- ------------
Total other assets 27,996 -- 28,034
--------- --------- ------------
Total assets $ 75,285 $ 52,806 $ 80,269
========= ========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 20,501 $ 16,024 $ 23,832
Accrued expenses and other current liabilities 15,982 12,347 19,987
--------- --------- ------------
Total current liabilities 36,483 28,371 43,819
LONG-TERM LIABILITIES 5,501 173 5,388
--------- --------- ------------
Total liabilities 41,984 28,544 49,207
SHAREHOLDERS' EQUITY 33,301 24,262 31,062
--------- --------- ------------
Total liabilities and shareholders' equity $ 75,285 $ 52,806 $ 80,269
========= ========= ============
</Table>
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THE SPORTSMAN'S GUIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For the quarters ended
March 31, 2005 and 2004
(In thousands, except per share data)
<Table>
<Caption>
For the quarters ended March 31,
2005 2004
------------- -------------
Net sales $ 64,326 $ 44,594
Cost of sales 44,544 30,466
------------- -------------
Gross profit 19,782 14,128
Selling, general and administrative expenses 16,472 12,346
------------- -------------
Earnings from operations 3,310 1,782
Interest expense (64) --
Miscellaneous income, net 68 42
------------- -------------
Earnings before income taxes 3,314 1,824
Income tax expense 1,218 657
------------- -------------
Net earnings $ 2,096 $ 1,167
============= =============
Net earnings per share:
Basic $ .29 $ .16
============= =============
Diluted $ .26 $ .15
============= =============
Weighted average common and common equivalent shares outstanding:
Basic 7,107 7,130
============= =============
Diluted 8,066 8,052
============= =============
</Table>
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