SGDE Sportsmans Guide

EPS Higher Than Recent Guidance, 50% above Third Quarter One Year Ago and Up 70% Year-to-Date; Sales and Internet-Related Sales Again Show Year Over-Year Increases SOUTH ST. PAUL, Minn., Nov. 1 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. (NASDAQ:SGDE) today reported results for the quarter ended September 30, 2005 that, with respect to fully diluted earnings per share, were above most recent guidance, and set a record for the Company's third quarter. Net sales for the Company's third quarter were $61.5 million, compared with $57.0 million reported for the same period in 2004. The nearly 8% increase in consolidated net sales, year over year for the third quarter, was the result of sales growth at both The Golf Warehouse ("TGW") and The Sportsman's Guide ("TSG"). For the nine months ended September 30, 2005, net sales were $189.9 million, a 34% increase over the $141.4 million reported for the first three quarters of 2004. Net earnings for the quarter were $2.2 million, or $0.26 per fully diluted share, a 50% increase over the $1.4 million, or $0.17 per fully diluted share, reported for the same period in 2004. For the first three quarters of 2005, net earnings were $7.0 million, or $0.84 per fully diluted share, compared to $3.9 million, or $0.49 per fully diluted share for the first nine months of 2004, an increase of more than 70%. The earnings per share numbers for 2004 have been restated to reflect the Company's change in accounting policy for Buyer's Club revenues announced in June of this year and adjusted to reflect the 3-for-2 stock split, distributed April 15, 2005. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "We had another record quarter due to a continuation of the positive trends that have been affecting our business the last few years. We saw net sales growth at both TGW and TSG; with TGW's growth especially strong. We also continued to generate high levels of Internet-related sales, as they once again totaled nearly 60% of total catalog and Internet sales for the quarter." Binkley also noted that the recently completed quarter is the first where the results are comparable with those of the previous year given that the 2004 third quarter also included the results of The Golf Warehouse, acquired June 29, 2004. The Company will hold a conference call to discuss the results of the quarter at 10:30 am, CST, Wednesday, November 2, 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 1-800-362-0571 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 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. The Sportsman's Guide, Inc. and Subsidiaries Consolidated Balance Sheets (UNAUDITED) (In thousands of dollars) September 30, September 30, December 31, 2005 2004 2004 (Restated) ASSETS CURRENT ASSETS Cash and cash equivalents $2,221 $715 $8,616 Accounts receivable - net 3,044 2,725 3,955 Inventory 44,351 38,439 29,148 Promotional material 5,649 3,999 3,578 Prepaid expenses and other 3,811 2,650 3,123 Income taxes receivable -- 1,505 -- Deferred income taxes 1,645 1,096 1,767 Total current assets 60,721 51,129 50,187 PROPERTY AND EQUIPMENT, NET 2,432 2,691 2,693 OTHER ASSETS Goodwill 17,199 17,219 17,176 Trade and domain name 10,200 10,200 10,200 Other intangibles 1,248 714 658 Total other assets 28,647 28,133 28,034 Total assets $91,800 $81,953 $80,914 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Bank overdraft $-- $3,246 $-- Revolving credit line 4,135 4,470 -- Note payable - bank -- 2,500 -- Accounts payable 24,194 20,657 23,832 Accrued expenses and other current liabilities 17,321 15,274 21,822 Total current liabilities 45,650 46,147 45,654 LONG-TERM LIABILITIES 5,810 10,267 5,388 Total liabilities 51,460 56,414 51,042 SHAREHOLDERS' EQUITY 40,340 25,539 29,872 Total liabilities and shareholders' equity $91,800 $81,953 $80,914 The Sportsman's Guide, Inc. and Subsidiaries Consolidated Statements of Earnings (UNAUDITED) For The Three Months And Nine Months Ended September 30, 2005 and 2004 (In thousands, except per share data) Three months ended Nine months ended September 30, September 30, 2005 2004 2005 2004 (Restated) (Restated) Net sales $61,549 $57,039 $189,905 $141,403 Cost of sales 42,060 40,139 130,938 97,329 Gross profit 19,489 16,900 58,967 44,074 Selling, general and administrative expenses 15,983 14,564 47,931 37,839 Earnings from operations 3,506 2,336 11,036 6,235 Interest expense (67) (168) (213) (168) Other income (expense), net 23 -- 182 80 Earnings before income taxes 3,462 2,168 11,005 6,147 Income tax expense 1,273 791 4,052 2,222 Net earnings $2,189 $1,377 $6,953 $3,925 Net earnings per share: Basic $.30 $.20 $.97 $.55 Diluted $.26 $.17 $.84 $.49 Weighted average common and common equivalent shares outstanding: Basic 7,314 7,052 7,180 7,078 Diluted 8,457 7,968 8,233 7,980 CONTACT: William P. Bartkowski MeritViewPartners 612.605.8616 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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