SGDE Sportsmans Guide

The Sportsman's Guide Releases Record Fourth Quarter and 2004 Year-End Results; Final EPS Above Earlier Guidance; Board Declares 3-for-2 Stock Split SOUTH ST. PAUL, Minn., March 1 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. (NASDAQ:SGDE) today reported record results of operations for the quarter and year ended December 31, 2004, with earnings per share that were above the Company's most recent guidance. In addition, the Company's board of directors has declared a 3-for-2 stock split in the form of a 50% stock dividend. The split shares will be distributed on April 15, 2005 to shareholders of record March 25, 2005. The Company has 4.7 million shares outstanding pre-split and will have just over 7 million following the distribution; however, the per share calculations in the results that are disclosed and discussed in the following release have not as yet been adjusted to reflect the split. Sales for the quarter were $92.5 million, a 29% increase over the $71.7 million reported for the same period one year ago. The Company reported net earnings of $4.6 million, or $0.85 per fully diluted share for the fourth quarter, compared to $3.8 million, or $0.71 per share, reported for the three months ended December 31, 2003. For the twelve months ended December 31, 2004, sales were $232.5 million, a 19% increase over the $194.7 million reported for 2003. The Company recorded net earnings of $7.6 million, or $1.43 per fully diluted share, for the year, compared to net earnings of $6.2 million, or $1.16 per share, for the twelve months ended December 31, 2003. Company officials also noted that the fourth quarter of 2004 included 14 weeks of activity, compared to 13 weeks one year ago. The additional week resulted in approximately $4 million of incremental sales with minimal effect on net earnings in the quarter or for the year. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "Our 2004 results showed annual sales up just under 20% and net earnings up 23%. These increases were due to our June 29, 2004 acquisition of The Golf Warehouse, TGW.com, and the continuing growth of The Sportsman's Guide base business, which had a 6% growth in sales in 2004 on a stand-alone basis and saw its percentage of Internet-related sales to total sales increase to approximately 42%, compared to 36% in 2003. "Today, we are also pleased to announce the board's decision to split the stock. It should result in greater liquidity for our shareholders and greater visibility for our stock." Binkley went on to note that the Company made significant progress toward paying down the debt incurred as a result of the TGW acquisition, ending the year with $8.6 million in cash and $5.0 million in long-term bank debt. The Sportsman's Guide, Inc. will hold a conference call tomorrow, Wednesday, March 2, 2005, to discuss the quarter and year-end results. 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 begin at 10:30 am, CST. Participants may access the call by dialing 1-800-362-0571 and asking for The Sportsman's Guide conference call. The call may also be accessed via the Internet at http://www.sportsmansguideir.com/ . 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 http://www.sportsmansguide.com/ , http://www.tgw.com/ and http://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. and Subsidiaries Consolidated Balance Sheets (In thousands of dollars) December 31, December 31, 2004 2003 ASSETS CURRENT ASSETS Cash and cash equivalents $8,616 $32,054 Accounts receivable - net 3,955 3,034 Inventory 29,148 18,874 Promotional material 3,578 2,565 Prepaid expenses and other 3,122 1,871 Restricted cash 3,011 -- Deferred income taxes 1,122 3,176 Total current assets 52,552 61,574 PROPERTY AND EQUIPMENT, NET 2,693 2,248 OTHER ASSETS Goodwill 17,176 -- Trade and domain name 10,200 -- Other 658 -- Total other assets 28,034 -- Total assets $83,279 $63,822 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $23,832 $18,950 Funds held in escrow 3,010 -- Accrued expenses and other current liabilities 19,987 17,877 Total current liabilities 46,829 36,827 LONG-TERM LIABILITIES 5,388 187 Total liabilities 52,217 37,014 SHAREHOLDERS' EQUITY 31,062 26,808 Total liabilities and shareholders' equity $83,279 $63,822 The Sportsman's Guide, Inc. and Subsidiaries Consolidated Statements of Earnings For The Three Months And Years Ended December 31, 2004 and 2003 (In thousands, except per share data) Three months ended December 31, Years ended (unaudited) December 31, 2004 2003 2004 2003 Sales $92,453 $71,700 $232,462 $194,703 Cost of sales 60,752 46,318 158,081 130,639 Gross profit 31,701 25,382 74,381 64,064 Selling, general and administrative expenses 24,283 19,411 62,122 54,467 Earnings from operations 7,418 5,971 12,259 9,597 Interest expense (193) -- (361) -- Miscellaneous income (expense), net (82) 38 (2) 24 Earnings before income taxes 7,143 6,009 11,896 9,621 Income tax expense 2,585 2,164 4,305 3,463 Net earnings $4,558 $3,845 $7,591 $6,158 Net earnings per share: Basic $.97 $.80 $1.61 $1.29 Diluted $.85 $.71 $1.43 $1.16 Weighted average common and common equivalent shares outstanding: Basic 4,717 4,834 4,719 4,785 Diluted 5,333 5,437 5,323 5,290 CONTACT: William P. Bartkowski MeritViewPartners 612.605.8616 (direct) DATASOURCE: The Sportsman's Guide, Inc. CONTACT: William P. Bartkowski of MeritViewPartners, +1-612-605-8616 Web site: http://www.sportsmansguideir.com/ http://www.sportsmansguide.com/ http://www.tgw.com/ http://www.bargainoutfitters.com/

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