SGDE Sportsmans Guide

The Sportsman's Guide Releases First Quarter 2004 Results Net Earnings Up 22% Over Comparable 2003 Quarter; Earnings Per Share at High End of Recent Guidance; Internet-related Sales as Percentage of Total Catalog and Internet Sales Hit All-time High SOUTH ST. PAUL, Minn., April 28 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. today reported the results of operations for the quarter ended March 31, 2004. Sales for the quarter were $44.6 million compared to the $43.7 million reported for the same period one year ago. The Company reported net earnings of $1.2 million, or $0.22 per fully diluted share for the quarter, a 22% increase when compared to the $957,000, or $0.19 per fully diluted share, reported for the three months ended March 31, 2003. The increase in net earnings and earnings per share from last year's first quarter was due primarily to higher Internet-related sales and lower levels of selling, general and administrative expenses. Internet-related sales for the first quarter of 2004 were just over 40% of total catalog and Internet sales, setting an all time record. Internet-related sales as a percentage of total catalog and Internet sales were approximately 34% for the first quarter of 2003. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "Once again our ongoing strategy of moving more of our business to the Internet has resulted in better than expected earnings growth and profitability." Total catalog circulation for the first quarter was 11.0 million catalogs, compared to 11.3 million during the first quarter of 2003. The Company mailed nine catalog editions, consisting of three main catalogs, three Buyer's Club Advantage(TM) catalogs and three specialty catalogs during the quarter ended March 31, 2004, compared to nine catalog editions for the same quarter in 2003. "The increase in Internet-related sales is the result of enhancements that we continue to make to our websites and the improvements that we continue to make to our marketing and merchandising programs," Binkley concluded. The Sportsman's Guide is a company offering value-priced outdoor gear and general merchandise, with a special emphasis on outdoor clothing, equipment and footwear, sold through both catalogs and Internet websites. The Company's websites include http://www.sportsmansguide.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. Balance Sheets (Unaudited) (In thousands of dollars) March 31, March 31, December 31, 2004 2003 2003 ASSETS CURRENT ASSETS Cash and cash equivalents $ 16,694 $ 10,880 $ 32,054 Accounts receivable - net 2,147 1,950 3,034 Inventory 23,032 22,528 18,874 Promotional material 3,622 3,693 2,565 Prepaid expenses and other 2,489 1,806 1,871 Income taxes receivable 655 -- -- Deferred income taxes 2,220 1,650 3,176 Total current assets 50,859 42,507 61,574 PROPERTY AND EQUIPMENT, NET 1,947 2,531 2,248 Total assets $ 52,806 $ 45,038 $ 63,822 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 16,024 $ 13,731 $ 18,950 Accrued expenses and other current liabilities 12,347 9,629 17,877 Total current liabilities 28,371 23,360 36,827 LONG-TERM LIABILITIES 173 85 187 Total liabilities 28,544 23,445 37,014 SHAREHOLDERS' EQUITY 24,262 21,593 26,808 Total liabilities and shareholders' equity $ 52,806 $ 45,038 $ 63,822 The Sportsman's Guide, Inc. Consolidated Statements of Earnings (Unaudited) For the quarters ended March 31, 2004 and 2003 (In thousands, except per share data) For the quarters ended March 31, 2004 2003 Sales $44,594 $43,749 Cost of sales 30,466 29,552 Gross profit 14,128 14,197 Selling, general and administrative expenses 12,346 12,730 Earnings from operations 1,782 1,467 Miscellaneous income, net 42 29 Earnings before income taxes 1,824 1,496 Income tax expense 657 539 Net earnings $1,167 $ 957 Net earnings per share: Basic $.25 $.20 Diluted $.22 $.19 Weighted average common and common equivalent shares outstanding: Basic 4,753 4,757 Diluted 5,368 5,119 CONTACT: 612-344-1000 William P. Bartkowski BlueFire Partners 612-344-1012 (direct) DATASOURCE: The Sportsman's Guide, Inc. CONTACT: William P. Bartkowski of BlueFire Partners, for The Sportsman's Guide, Inc., +1-612-344-1000, or direct, +1-612-344-1012 Web site: http://www.bargainoutfitters.com/ http://www.sportsmansguide.com/

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