SGDE Sportsmans Guide

The Sportsman's Guide Releases Second Quarter 2004 Results Net Earnings Up Over 20% 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., Aug. 4 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. (NASDAQ:SGDE) today reported the results of operations for the quarter ended June 30, 2004. Sales for the quarter were $38.9 million compared to the $38.0 million reported for the same period one year ago. The Company reported net earnings of $797,000, or $0.15 per fully diluted share for the quarter, a 23% increase when compared to the $646,000, or $0.12 per fully diluted share, reported for the three months ended June 30, 2003. The increase in net earnings and earnings per share from last year's second quarter was due primarily to higher Internet-related sales. Internet-related sales for the second quarter of 2004 were just over 43% 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 36.5% for the second quarter of 2003. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "Our second quarter showed continued growth in Internet related sales as a percentage of total sales, contributing to higher levels of net income and earnings per share." Total catalog circulation for the second quarter was 9.9 million catalogs, compared to 9.2 million during the second quarter of 2003. The Company mailed eight catalog editions, consisting of three main catalogs, three Buyer's Club Advantage(TM) catalogs and two specialty catalogs during the quarter ended June 30, 2004, compared to seven catalog editions for the same quarter in 2003. The Sportsman's Guide, Inc. will hold a conference call on Wednesday, August 4, 2004 to discuss the results of the three months ended June 30, 2004. 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 take questions. The call will begin at 10:30 a.m., CDT. Participants may access the call by dialing 1-800-209-8032. The call may also be accessed via the Internet at http://www.sportsmansguideir.com/ . The Sportsman's Guide offers value-priced outdoor gear and general merchandise, with a special emphasis on outdoor clothing, equipment and footwear, through direct mail catalogs and two Internet sites. On June 29, 2004 the Company acquired The Golf Warehouse, TGW.com, the Wichita, Kansas- based leading online and catalog retailer of golf equipment, apparel and accessories. The Company's e-commerce websites include http://www.sportsmansguide.com/ , http://www.bargainoutfitters.com/ and http://www.tgw.com/ . Investor information is available on the Company's investor relations website: http://www.sportsmansguideir.com/ . 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. - financial highlights follow - The Sportsman's Guide, Inc. Consolidated Balance Sheets (Unaudited) (In thousands of dollars) June 30, June 30, December 31, 2004 2003 2003 ASSETS CURRENT ASSETS Cash and cash equivalents $16,534 $11,497 $32,054 Accounts receivable - net 1,935 1,682 3,034 Inventory 25,315 23,946 18,874 Promotional material 2,590 1,889 2,565 Prepaid expenses and other 2,416 2,034 1,871 Deferred income taxes 2,900 2,525 3,176 Total current assets 51,690 43,573 61,574 PROPERTY AND EQUIPMENT, NET 1,813 2,440 2,248 Total assets $53,503 $46,013 $63,822 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $15,040 $13,370 $18,950 Accrued expenses and other current liabilities 13,145 10,605 17,877 Total current liabilities 28,185 23,975 36,827 LONG-TERM LIABILITIES 133 218 187 Total liabilities 28,318 24,193 37,014 SHAREHOLDERS' EQUITY 25,185 21,820 26,808 Total liabilities and shareholders' equity $53,503 $46,013 $63,822 The Sportsman's Guide, Inc. Consolidated Statements of Earnings (Unaudited) For The Three Months And Six Months Ended June 30, 2004 and 2003 (In thousands, except per share data) Three months ended Six months ended June 30, June 30, 2004 2003 2004 2003 Sales $38,861 $38,041 $83,455 $81,790 Cost of sales 26,724 26,097 57,190 55,649 Gross profit 12,137 11,944 26,265 26,141 Selling, general and administrative expenses 10,929 10,902 23,275 23,632 Earnings from operations 1,208 1,042 2,990 2,509 Miscellaneous income (expense), net 38 (33) 80 (4) Earnings before income taxes 1,246 1,009 3,070 2,505 Income tax expense 449 363 1,106 902 Net earnings $ 797 $ 646 $1,964 $1,603 Net earnings per share: Basic $.17 $.14 $.42 $.34 Diluted $.15 $.12 $.37 $.31 Weighted average common and common equivalent shares outstanding: Basic 4,703 4,748 4,728 4,753 Diluted 5,279 5,249 5,324 5,184 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, +1-612-344-1012, direct, or +1-612-344-1000 Web site: http://www.sportsmansguideir.com/ http://www.sportsmansguide.com/ http://www.bargainoutfitters.com/ http://www.tgw.com/

Copyright