Cabela's Inc. Announces Second Quarter 2015 Results

- U.S. Comp Store Sales Increased 0.8%, Consolidated Comp Store Sales Decreased 0.9%

- Total Revenue Increased 9.9% to $836.3 Million

- Cabela’s CLUB® Avg. Receivables Grew 12.9% and Charge-Offs Remained at Record Low Levels

- Second Quarter Diluted EPS of $0.56

SIDNEY, Neb.--()--Cabela’s Incorporated (NYSE:CAB) today reported financial results for second quarter fiscal 2015.

For the quarter, total revenue increased 9.9% to $836.3 million; Retail store revenue increased 13.9% to $570.1 million; Direct revenue decreased 7.0% to $136.8 million; and Financial Services revenue increased 14.2% to $124.9 million. During the period, consolidated comparable store sales decreased 0.9%. Net income was $40.1 million compared to $43.5 million in the year ago quarter, and earnings per diluted share were $0.56 compared to $0.61 in the year ago quarter.

“We remain on track to meet our full-year expectations and continue to see strong growth in several key merchandise categories, sequential improvement in comparable store sales, and excellent performance from Cabela’s CLUB,” said Tommy Millner, Cabela’s Chief Executive Officer. “While our second quarter results fell short of expectations, we are encouraged by several positive trends in our business, including our fifth consecutive quarter of sequential improvement in comparable store sales. U.S. comparable store sales increased 0.8% for the quarter and were led by positive comparable store sales in hunting equipment, camping, fishing, firearms, ammunition, powersports, and home/gifts. Consolidated comparable store sales decreased 0.9% largely due to currency declines affecting our Canadian business and some cannibalization impact from our Edmonton store.”

“Our new format stores continue to significantly outperform our legacy stores in sales and profit per square foot,” Millner said. “During the second quarter, we opened five new stores, and we plan to open four stores in the third quarter and two stores in the fourth quarter. We are confident that these new format stores will drive improvements in profitability and return on invested capital.”

A shift in ammunition sales from the Direct channel to the Retail channel combined with further pressure from new retail square footage contributed to the 7.0% decrease in Direct revenue for the quarter. Omni-channel improvements continue to drive enhancements to the customer experience and are expected to contribute to sequential improvement in Direct channel performance for the second half of 2015.

Strong performance in hardline categories such as powersports, firearms, and ammunition and weaker performance in soft goods and apparel categories combined with a more aggressive promotional cadence contributed to the 120 basis point decrease in merchandise gross margin for the quarter. With improving trends in certain apparel categories and the anniversary of a more promotional environment, the Company expects merchandise gross margins to be mostly in line with the prior year through the second half of 2015.

“While we have benefited from cost savings over the past year, we did deleverage expenses in the second quarter by 130 basis points,” Millner said. “Our deleverage was the result of new store costs, investments in labor, and higher incentive compensation cost. Recently, we completed a detailed review of our expense base and have identified meaningful savings in the balance of 2015 and full-year 2016.”

The Cabela’s CLUB Visa program had another excellent quarter. During the quarter, growth in the average number of active credit card accounts was 7.0%. Growth in the average balance per active credit card account was 5.5%, and growth in the average balance of credit card loans was 12.9% to $4.3 billion. For the quarter, net charge-offs remained at historically low levels of 1.80%. Increased Financial Services revenue was driven by increases in interest and fee income as well as interchange income.

“With several areas of our business trending positively as we enter the second half of the year, we are confident in our outlook for full-year 2015,” Millner said. “As a result, we reaffirm our expectations for a low-double-digit growth rate in revenue and a high-single to low-double-digit growth rate in diluted earnings per share for full-year 2015 as compared to full-year 2014 non-GAAP diluted earnings per share of $2.88.”

Conference Call Information

A conference call to discuss second quarter fiscal 2015 operating results is scheduled for today (Thursday, July 23, 2015) at 11:00 a.m. Eastern Time. A webcast of the call will take place simultaneously and can be accessed by visiting the Investor Relations section of Cabela’s website at www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

About Cabela’s Incorporated

Cabela’s Incorporated, headquartered in Sidney, Nebraska, is a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping and related outdoor merchandise. Since the Company’s founding in 1961, Cabela’s® has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World’s Foremost Outfitter®. Through Cabela’s growing number of retail stores and its well-established direct business, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela’s also issues the Cabela’s CLUB® Visa credit card, which serves as its primary customer loyalty rewards program. Cabela’s stock is traded on the New York Stock Exchange under the symbol “CAB”.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are “forward-looking statements” that are based on the Company’s beliefs, assumptions, and expectations of future events, taking into account the information currently available to the Company. Such forward-looking statements include, but are not limited to, the Company’s statements regarding remaining on track to meet full-year expectations; opening four stores in the third quarter and two stores in the fourth quarter; new format stores driving improvements in profitability and return on invested capital; omni-channel improvements contributing to sequential improvement in Direct channel performance for the second half of 2015; merchandise gross margins being mostly in line with the prior year through the second half of 2015; meaningful expense savings in the balance of 2015 and full-year 2016; and a low-double-digit growth rate in revenue and a high-single to low-double-digit growth rate in diluted earnings per share for full-year 2015 as compared to full-year 2014 non-GAAP diluted earnings per share of $2.88. Forward-looking statements involve risks and uncertainties that may cause the Company’s actual results, performance, or financial condition to differ materially from the expectations of future results, performance, or financial condition that the Company expresses or implies in any forward-looking statements. These risks and uncertainties include, but are not limited to: the state of the economy and the level of discretionary consumer spending, including changes in consumer preferences, demand for firearms and ammunition, and demographic trends; adverse changes in the capital and credit markets or the availability of capital and credit; the Company’s ability to successfully execute its omni-channel strategy; increasing competition in the outdoor sporting goods industry and for credit card products and reward programs; the cost of the Company’s products, including increases in fuel prices; the availability of the Company’s products due to political or financial instability in countries where the goods the Company sells are manufactured; supply and delivery shortages or interruptions, and other interruptions or disruptions to the Company’s systems, processes, or controls, caused by system changes or other factors; increased or adverse government regulations, including regulations relating to firearms and ammunition; the Company’s ability to protect its brand, intellectual property, and reputation; the Company’s ability to prevent cybersecurity breaches and mitigate cybersecurity risks; the outcome of litigation, administrative, and/or regulatory matters (including a Commissioner’s charge the Company received from the Chair of the U. S. Equal Employment Opportunity Commission in January 2011, the ongoing Securities and Exchange Commission investigation, audits by tax authorities, and compliance examinations by the Federal Deposit Insurance Corporation); the Company’s ability to manage credit, liquidity, interest rate, operational, legal, regulatory capital, and compliance risks; the Company’s ability to increase credit card receivables while managing credit quality; the Company’s ability to securitize its credit card receivables at acceptable rates or access the deposits market at acceptable rates; the impact of legislation, regulation, and supervisory regulatory actions in the financial services industry; and other risks, relevant factors, and uncertainties identified in the Company’s filings with the SEC (including the information set forth in the “Risk Factors” section of the Company’s Form 10-K for the fiscal year ended December 27, 2014, and Form 10-Q for the quarterly period ended March 28, 2015), which filings are available at the Company’s website at www.cabelas.com and the SEC’s website at www.sec.gov. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. The Company’s forward-looking statements speak only as of the date they are made. Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)
 
    Three Months Ended   Six Months Ended
June 27,
2015
  June 28,
2014
June 27,
2015
  June 28,
2014
Revenue:
Merchandise sales $ 706,068 $ 646,866 $ 1,403,722 $ 1,267,063
Financial Services revenue 124,943 109,364 247,856 207,942
Other revenue 5,265   4,971   11,774   12,019  
Total revenue 836,276   761,201   1,663,352   1,487,024  
Cost of revenue:
Merchandise costs (exclusive of depreciation and amortization) 452,994 407,450 919,213 814,093
Cost of other revenue   68   220   1,390  
Total cost of revenue (exclusive of depreciation and amortization) 452,994   407,518   919,433   815,483  
 
Selling, distribution, and administrative expenses 319,892 281,051 635,996 558,056
Impairment and restructuring charges   641     641  
 
Operating income 63,390 71,991 107,923 112,844
 
Interest expense, net (4,588 ) (5,639 ) (8,362 ) (9,324 )
Other non-operating income, net 2,025   1,039   3,765   3,141  
 
Income before provision for income taxes 60,827 67,391 103,326 106,661
Provision for income taxes 20,770   23,874   36,495   37,395  
Net income $ 40,057   $ 43,517   $ 66,831   $ 69,266  
 
Earnings per basic share $ 0.56   $ 0.61   $ 0.94   $ 0.98  
Earnings per diluted share $ 0.56   $ 0.61   $ 0.93   $ 0.96  
 
Basic weighted average shares outstanding

  71,065,258

 

  71,031,019

 

  71,168,661

 

  70,901,515

 
Diluted weighted average shares outstanding

  71,372,975

 

  71,700,006

 

  71,705,134

 

  71,851,184

 
 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)
       
June 27,
2015
December 27,
2014
June 28,
2014
ASSETS
CURRENT
Cash and cash equivalents $ 144,234 $ 142,758 $ 133,774
Restricted cash of the Trust 34,104 334,812 25,789
Accounts receivable, net 29,469 62,358 25,102

Credit card loans (includes restricted credit card loans of the Trust of $4,421,172,
  $4,440,520, and $3,926,700), net of allowance for loan losses of $54,742,
  $56,572, and $47,350

4,392,769 4,421,185 3,904,938
Inventories 900,761 760,293 803,079
Prepaid expenses and other current assets 106,498 93,929 90,306
Income taxes receivable and deferred income taxes 144,592   122,337   37,245
Total current assets 5,752,427 5,937,672 5,020,233
Property and equipment, net 1,763,483 1,608,153 1,454,130
Economic development bonds 77,936 82,074 78,429
Other assets 47,809   47,418   45,393
Total assets $ 7,641,655   $ 7,675,317   $ 6,598,185
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT
Accounts payable, including unpresented checks of $20,149, $38,790, and $8,875 $ 325,548 $ 335,969 $ 246,452
Gift instruments, credit card rewards, and loyalty rewards programs 326,240 339,782 285,892
Accrued expenses and other liabilities 191,934 216,274 133,965
Time deposits 274,633 273,081 248,022
Current maturities of secured variable funding obligations of the Trust 65,000 480,000
Current maturities of secured long-term obligations of the Trust 467,500 467,500 255,000
Current maturities of long-term debt 223,443 8,434 8,426
Deferred income taxes     2,584
Total current liabilities 1,874,298 2,121,040 1,180,341
Long-term time deposits 552,842 532,975 593,005
Secured long-term obligations of the Trust, less current maturities 2,643,500 2,579,750 2,452,250
Long-term debt, less current maturities 599,617 491,281 547,674
Long-term deferred income taxes 10,947 6,546 1,606
Other long-term liabilities 135,679 126,215 138,947
 
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; Authorized – 10,000,000 shares; Issued – none
Common stock, $0.01 par value:
Class A Voting, Authorized – 245,000,000 shares
Issued – 71,598,231, 71,093,216, and 71,037,162 shares 716 711 710
Outstanding – 70,675,975, 71,093,216, and 71,037,162 shares
Additional paid-in capital 370,874 365,973 352,507
Retained earnings 1,529,363 1,462,532 1,330,083
Accumulated other comprehensive income (loss) (27,044 ) (11,706 ) 1,062
Treasury stock, at cost – 922,256 shares at June 27, 2015 (49,137 )  
Total stockholders’ equity 1,824,772   1,817,510   1,684,362
Total liabilities and stockholders’ equity $ 7,641,655   $ 7,675,317   $ 6,598,185
 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
         
Three Months Ended Six Months Ended
June 27,
2015
June 28,
2014
June 27,
2015
June 28,
2014
 

Components of Total Consolidated Revenue:

Retail $ 570,090 $ 500,436 $ 1,094,530 $ 941,385
Direct 136,753 147,116 310,232 326,532
Financial Services 124,943 109,364 247,856 207,942
Other 4,490   4,285   10,734   11,165  
Total consolidated revenue as reported $ 836,276   $ 761,201   $ 1,663,352   $ 1,487,024  
 

As a Percentage of Total Consolidated Revenue:

Retail revenue 68.2 % 65.7 % 65.8 % 63.3 %
Direct revenue 16.4 19.3 18.7 22.0
Financial Services revenue 14.9 14.4 14.9 14.0
Other revenue 0.5   0.6   0.6   0.7  
Total 100.0 % 100.0 % 100.0 % 100.0 %
 

Operating Income (Loss) by Segment:

Retail $ 89,829 $ 99,806 $ 145,384 $ 152,104
Direct 14,998 24,063 41,040 57,193
Financial Services 45,910 23,587 94,387 56,689
Other (87,347 ) (75,465 ) (172,888 ) (153,142 )
Total consolidated operating income as reported $ 63,390   $ 71,991   $ 107,923   $ 112,844  
 

Operating Income by Segment as a Percentage of Segment Revenue:

Retail operating income 15.8 % 19.9 % 13.3 % 16.2 %
Direct operating income 11.0 16.4 13.2 17.5
Financial Services operating income 38.3 22.6 39.6 27.9

Total operating income by segment as a percentage of total segment revenue

7.6 9.5 6.5 7.6
 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
COMPONENTS OF FINANCIAL SERVICES REVENUE
(Dollars in Thousands)
(Unaudited)
 

Financial Services revenue consists of activity from the Company’s credit card operations and is comprised of interest and fee income, interchange income, other non-interest income, interest expense, provision for loan losses, and customer rewards costs. The following table details the components and amounts of Financial Services revenue as reported for the periods presented below.

    Three Months Ended   Six Months Ended
June 27,
2015
  June 28,
2014
June 27,
2015
  June 28,
2014
 
Interest and fee income $ 112,965 $ 94,652 $ 224,893 $ 188,871
Interest expense (16,811 ) (15,804 ) (32,430 ) (31,690 )
Provision for loan losses (15,831 ) (10,314 ) (29,061 ) (23,028 )
Net interest income, net of provision for loan losses 80,323   68,534   163,402   134,153  
Non-interest income:
Interchange income 98,509 91,512 186,203 173,939
Other non-interest income 821   867   1,503   1,622  
Total non-interest income 99,330 92,379 187,706 175,561
Less: Customer rewards costs (54,710 ) (51,549 ) (103,252 ) (101,772 )
 
Financial Services revenue as reported $ 124,943   $ 109,364   $ 247,856   $ 207,942  
 
The following table sets forth the components of Financial Services revenue as reported as a percentage of average total credit card loans, including any accrued interest and fees, for the periods presented below.
                          Three Months Ended   Six Months Ended
June 27,
2015
  June 28,
2014
June 27,
2015
  June 28,
2014
 
Interest and fee income 10.5 % 10.0 % 10.6 % 10.0 %
Interest expense (1.6 ) (1.7 ) (1.5 ) (1.7 )
Provision for loan losses (1.5 ) (1.1 ) (1.4 ) (1.2 )
Interchange income 9.2 9.6 8.7 9.2
Other non-interest income 0.1 0.1 0.1 0.1
Customer rewards costs (5.1 ) (5.4 ) (4.8 ) (5.4 )
Financial Services revenue as reported 11.6 % 11.5 % 11.7 % 11.0 %
 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
KEY STATISTICS OF FINANCIAL SERVICES BUSINESS
(Unaudited)
 

Key statistics reflecting the performance of the Financial Services business are shown in the following tables for the periods presented below.

    Three Months Ended        
June 27,
2015
   

 

June 28,
2014
Increase %
  (Decrease) Change
(Dollars in Thousands Except Average Balance per Account )
 
Average balance of credit card loans (1) $ 4,299,130

$

3,808,842

$ 490,288 12.9 %
Average number of active credit card accounts 1,903,291 1,778,556 124,735 7.0
 
Average balance per active credit card account (1) $ 2,259

$

2,142

$ 117 5.5
 
Purchases on credit card accounts, net $ 5,071,387

$

4,775,503

$ 295,884 6.2
 
Net charge-offs on credit card loans (1) $ 19,337

$

15,864

$ 3,473 21.9

Net charge-offs as a percentage of average credit card loans (1)

     

1.80

%

   

 

1.67

%

     

0.13

%

     
(1) Includes accrued interest and fees
 
 
Six Months Ended

June 27,
2015

 

June 28,
2014

Increase

(Decrease)

%

Change

(Dollars in Thousands Except Average Balance per Active Account)

 
Average balance of credit card loans (1) $ 4,260,055

$

3,783,171 $ 476,884 12.6 %
Average number of active credit card accounts 1,894,668

 

1,770,669

123,999 7.0
 
Average balance per active credit card account (1) $ 2,248 $ 2,137 $ 111 5.2
 
Purchases on credit card accounts, net $ 9,548,399 $ 9,031,260 $ 517,139 5.7
 
Net charge-offs on credit card loans (1) $ 35,513 $ 32,783 $ 2,730 8.3

Net charge-offs as a percentage of average credit card loans (1)

      1.67 %    

 

1.73

%

      (0.06 )%      
(1) Includes accrued interest and fees
   
 
CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL MEASURES (1)
(Unaudited)
 

To supplement our consolidated statements of income presented in accordance with generally accepted accounting principles (“GAAP”), we are providing non-GAAP adjusted financial measures of operating results that exclude certain items. Selling, distribution, and administrative expenses; impairment and restructuring charges; operating income; operating income as a percentage of total revenue; income before provision for income taxes; provision for income taxes; net income; and earnings per diluted share are presented below both as GAAP reported and non-GAAP financial measures excluding incremental expenses related to the transition to a third-party logistics provider and the closing of our distribution center in Winnipeg, Manitoba, Canada. In light of the nature and magnitude, we believe these items should be presented separately to enhance a reader’s overall understanding of the Company’s ongoing operations. These non-GAAP adjusted financial measures should be considered in conjunction with the GAAP financial measures.

 

We believe these non-GAAP adjusted financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of such operations. In addition, we evaluate results using non-GAAP adjusted operating income, adjusted net income, and adjusted earnings per diluted share. These non-GAAP adjusted financial measures should not be considered in isolation or as a substitute for operating income, net income, earnings per diluted share, or any other measure calculated in accordance with GAAP. The following tables reconcile these financial measures to the related GAAP adjusted financial measures for the periods presented.

    Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures (1)
Three Months Ended
June 27,
2015
  June 28, 2014
GAAP Basis GAAP Basis   Non-GAAP   Non-GAAP
As Reported As Reported Adjustments Amounts
(Dollars in Thousands Except Earnings Per Share)
 
Impairment and restructuring charges (2) $ $ 641 $ (641 ) $
 
Operating income $ 63,390 $ 71,991 $ 641 $ 72,632
 
Operating income as a percentage of total revenue 7.6 % 9.5 % % 9.5 %
 
Income before provision for income taxes $ 60,827 $ 67,391 $ 641 $ 68,032
 
Provision for income taxes (3) $ 20,770 $ 23,874 $ 225 $ 24,099
 
Net income $ 40,057 $ 43,517 $ 416 $ 43,933
 
Earnings per diluted share     $ 0.56     $ 0.61     $     $ 0.61  
 

(footnotes follow on the next page)

   
 
Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures (1)
Six Months Ended
June 27, 2015     June 28, 2014
GAAP Basis   Non-GAAP   Non-GAAP GAAP Basis   Non-GAAP   Non-GAAP
As Reported Adjustments Amounts As Reported Adjustments Amounts
(Dollars in Thousands Except Earnings Per Share)
 
Selling, distribution, and administrative expenses (4) $ 635,996 $ (1,207 ) $ 634,789 $ 558,056 $ $ 558,056
 
Impairment and restructuring charges (2) $ $ $ $ 641 $ (641 ) $
 
Operating income $ 107,923 $ 1,207 $ 109,130 $ 112,844 $ 641 $ 113,485
 
Operating income as a percentage of total revenue 6.5 % 0.1 % 6.6 % 7.6 % % 7.6 %
 
Income before provision for income taxes $ 103,326 $ 1,207 $ 104,533 $ 106,661 $ 641 $ 107,302
 
Provision for income taxes (3) $ 36,495 $ 447 $ 36,942 $ 37,395 $ 225 $ 37,620
 
Net income $ 66,831 $ 760 $ 67,591 $ 69,266 $ 416 $ 69,682
 
Earnings per diluted share $ 0.93 $ 0.01 $ 0.94 $ 0.96 $ $ 0.96
 
(1)   The presentation includes non-GAAP financial measures. These non-GAAP financial measures are not prepared under any comprehensive set of accounting rules or principles, and do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.
(2) For the three and six months ended June 28, 2014, reflects a restructuring charge for employee severance agreements and termination benefits related to our announcement of the transition to a third-party logistics provider for our distribution needs in Canada and the closing of our distribution center in Winnipeg, Manitoba, Canada.
(3) For the three and six months ended June 28, 2014, the provision for income taxes is based on the effective tax rate for the respective six month periods. For the six months ended June 27, 2015, the provision for income taxes is estimated based on the non-GAAP adjusted income before provision for income taxes.
(4) For the six months ended June 27, 2015, reflects incremental expenses incurred in the first quarter of fiscal 2015 related to the transition to a third-party logistics provider and the closing of our distribution center in Winnipeg, Manitoba, Canada.
 
 
CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL MEASURES (1)
(Unaudited)
 

To supplement our consolidated statements of income presented in accordance with GAAP, we are providing non-GAAP adjusted financial measures of operating results that exclude certain items. Selling, distribution, and administrative expenses; impairment and restructuring charges; operating income; operating income as a percentage of total revenue; income before provision for income taxes; provision for income taxes; net income; and earnings per diluted share are presented below both as GAAP reported and non-GAAP financial measures excluding (i) incremental expenses primarily related to the transition to a third-party logistics provider and the closing of our distribution center in Winnipeg, Manitoba, Canada, (ii) impairment and restructuring charges recognized in 2014, and (iii) adjustments to the provision for income taxes related to changes in our assessments of uncertain tax positions recognized in 2014. In light of the nature and magnitude, we believe these items should be presented separately to enhance a reader's overall understanding of the Company's ongoing operations. These non-GAAP adjusted financial measures should be considered in conjunction with the GAAP financial measures.

 

We believe these non-GAAP adjusted financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of such operations. In addition, we evaluate results using non-GAAP adjusted operating income, adjusted net income, and adjusted earnings per diluted share. These non-GAAP adjusted financial measures should not be considered in isolation or as a substitute for operating income, net income, earnings per diluted share, or any other measure calculated in accordance with GAAP. The following table reconcile these financial measures to the related GAAP adjusted financial measures for the periods presented.

     

Reconciliation of GAAP Reported to Non-GAAP

Adjusted Financial Measures (1)

Fiscal Year Ended
December 27, 2014
GAAP Basis   Non-GAAP   Non-GAAP
As Reported Adjustments Amounts
(Dollars in Thousands Except Earnings Per Share)
 
Selling, distribution, and administrative expenses (2) $ 1,251,325 $ (1,842 ) $ 1,249,483
 
Impairment and restructuring charges (3) $ 641 $ (641 ) $
 
Operating income $ 335,395 $ 2,483 $ 337,878
 
Operating income as a percentage of total revenue 9.2 % 0.1 % 9.3 %
 
Income before provision for income taxes $ 318,477 $ 2,483 $ 320,960
 
Provision for income taxes (4) $ 116,762 $ (2,861 ) $ 113,901
 
Net income $ 201,715 $ 5,344 $ 207,059
 
Earnings per diluted share $ 2.81 $ 0.07 $ 2.88
 
(1)   The presentation includes non-GAAP financial measures. These non-GAAP financial measures are not prepared under any comprehensive set of accounting rules or principles, and do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.
(2) Reflects incremental expenses primarily related to the transition to a third-party logistics provider and the closing of our distribution center in Winnipeg, Manitoba, Canada.
(3) Reflects a restructuring charge related to the transition to a third-party logistics provider for our distribution needs in Canada and the closing of our distribution center in Winnipeg, Manitoba, Canada.
(4) Reflects (i) the estimated income tax provision on the non-GAAP adjusted income before provision for income taxes, (ii) offsetting positions from a net operating loss carry forward, and (iii) tax adjustments related to changes in assessments of uncertain tax positions.

Contacts

Cabela’s Incorporated
Investor Contact:
Andrew Weingardt, 308-255-7428
or
Media Contact:
Joe Arterburn, 308-255-1204

Contacts

Cabela’s Incorporated
Investor Contact:
Andrew Weingardt, 308-255-7428
or
Media Contact:
Joe Arterburn, 308-255-1204