Delaware | 1-32227 | 20-0486586 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) | ||
One Cabela Drive, Sidney, Nebraska | 69160 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant's telephone number, including area code: (308) 254-5505 | ||||
Not applicable | ||||
(Former name or former address, if changed since last report) | ||||
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
CABELA'S INCORPORATED | |||
Dated: | October 23, 2014 | By: | /s/ Ralph W. Castner |
Ralph W. Castner Executive Vice President and Chief Financial Officer |
Investor Contact: |
Chris Gay |
308-255-2905 |
Cabela's Incorporated |
Media Contact: |
Joe Arterburn |
308-255-1204 |
Cabela's Incorporated |
CABELA'S INCORPORATED AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Dollars in Thousands Except Earnings Per Share) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||||||
Revenue: | |||||||||||||||
Merchandise sales | $ | 773,438 | $ | 749,141 | $ | 2,040,501 | $ | 2,124,538 | |||||||
Financial Services revenue | 109,132 | 98,403 | 317,074 | 272,753 | |||||||||||
Other revenue | 3,432 | 3,284 | 15,451 | 12,839 | |||||||||||
Total revenue | 886,002 | 850,828 | 2,373,026 | 2,410,130 | |||||||||||
Cost of revenue: | |||||||||||||||
Merchandise costs (exclusive of depreciation and amortization) | 492,492 | 469,614 | 1,306,585 | 1,341,706 | |||||||||||
Cost of other revenue | 8 | 318 | 1,398 | 386 | |||||||||||
Total cost of revenue (exclusive of depreciation and amortization) | 492,500 | 469,932 | 1,307,983 | 1,342,092 | |||||||||||
Selling, distribution, and administrative expenses | 299,587 | 304,293 | 857,643 | 844,448 | |||||||||||
Impairment and restructuring charges | — | — | 641 | 937 | |||||||||||
Operating income | 93,915 | 76,603 | 206,759 | 222,653 | |||||||||||
Interest expense, net | (5,152 | ) | (4,979 | ) | (14,476 | ) | (14,249 | ) | |||||||
Other non-operating income, net | 916 | 1,028 | 4,057 | 3,675 | |||||||||||
Income before provision for income taxes | 89,679 | 72,652 | 196,340 | 212,079 | |||||||||||
Provision for income taxes | 35,840 | 22,766 | 73,235 | 67,801 | |||||||||||
Net income | $ | 53,839 | $ | 49,886 | $ | 123,105 | $ | 144,278 | |||||||
Earnings per basic share | $ | 0.76 | $ | 0.71 | $ | 1.73 | $ | 2.05 | |||||||
Earnings per diluted share | $ | 0.75 | $ | 0.70 | $ | 1.71 | $ | 2.01 | |||||||
Basic weighted average shares outstanding | 71,068,933 | 70,575,804 | 70,957,321 | 70,412,479 | |||||||||||
Diluted weighted average shares outstanding | 71,693,136 | 71,757,901 | 71,885,472 | 71,717,894 |
CABELA'S INCORPORATED AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Dollars in Thousands Except Par Values) | |||||||||||
(Unaudited) | |||||||||||
September 27, 2014 | December 28, 2013 | September 28, 2013 | |||||||||
ASSETS | |||||||||||
CURRENT | |||||||||||
Cash and cash equivalents | $ | 365,114 | $ | 199,072 | $ | 409,733 | |||||
Restricted cash of the Trust | 31,808 | 23,191 | 26,009 | ||||||||
Held-to-maturity investment securities | — | — | 135,000 | ||||||||
Accounts receivable, net | 24,512 | 42,868 | 29,367 | ||||||||
Credit card loans (includes restricted credit card loans of the Trust of $4,036,331, $3,956,230, and $3,591,844), net of allowance for loan losses of $52,700, $53,110, and $57,370 | 4,011,187 | 3,938,630 | 3,567,423 | ||||||||
Inventories | 934,732 | 644,883 | 815,594 | ||||||||
Prepaid expenses and other current assets | 99,563 | 90,438 | 95,382 | ||||||||
Income taxes receivable and deferred income taxes | 98,054 | 47,430 | 53,693 | ||||||||
Total current assets | 5,564,970 | 4,986,512 | 5,132,201 | ||||||||
Property and equipment, net | 1,522,910 | 1,287,545 | 1,201,662 | ||||||||
Economic development bonds | 82,341 | 78,504 | 79,260 | ||||||||
Other assets | 45,243 | 44,303 | 48,942 | ||||||||
Total assets | $ | 7,215,464 | $ | 6,396,864 | $ | 6,462,065 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT | |||||||||||
Accounts payable, including unpresented checks of $67,031, $22,717, and $23,745 | $ | 367,572 | $ | 261,200 | $ | 284,934 | |||||
Gift instrument, credit card rewards, and loyalty rewards programs | 281,759 | 291,444 | 248,711 | ||||||||
Accrued expenses | 129,091 | 204,073 | 153,287 | ||||||||
Time deposits | 290,007 | 297,645 | 357,314 | ||||||||
Current maturities of secured variable funding obligations of the Trust | — | 50,000 | — | ||||||||
Current maturities of secured long-term obligations of the Trust | 467,500 | — | — | ||||||||
Current maturities of long-term debt | 8,430 | 8,418 | 8,414 | ||||||||
Deferred income taxes | 836 | — | — | ||||||||
Total current liabilities | 1,545,195 | 1,112,780 | 1,052,660 | ||||||||
Long-term time deposits | 540,402 | 771,717 | 790,664 | ||||||||
Secured long-term obligations of the Trust, less current maturities | 2,579,750 | 2,452,250 | 2,452,250 | ||||||||
Long-term debt, less current maturities | 657,648 | 322,647 | 524,149 | ||||||||
Deferred income taxes | 3,671 | 3,118 | 14,329 | ||||||||
Other long-term liabilities | 149,818 | 128,018 | 102,063 | ||||||||
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 – 71,085,205, 70,630,866, and 70,604,935 shares | |||||||||||
Outstanding – 71,085,205, 70,630,866, and 70,604,705 shares | 711 | 706 | 706 | ||||||||
Additional paid-in capital | 357,573 | 346,535 | 339,752 | ||||||||
Retained earnings | 1,383,922 | 1,260,817 | 1,180,705 | ||||||||
Accumulated other comprehensive income (loss) | (3,226 | ) | (1,724 | ) | 4,802 | ||||||
Treasury stock, at cost – 230 shares at September 28, 2013 | — | — | (15 | ) | |||||||
Total stockholders’ equity | 1,738,980 | 1,606,334 | 1,525,950 | ||||||||
Total liabilities and stockholders’ equity | $ | 7,215,464 | $ | 6,396,864 | $ | 6,462,065 |
CABELA'S INCORPORATED AND SUBSIDIARIES | |||||||||||||||
SELECTED FINANCIAL DATA | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||||||
Components of Consolidated Revenue: | |||||||||||||||
Retail | $ | 598,686 | $ | 550,878 | $ | 1,540,071 | $ | 1,521,550 | |||||||
Direct | 175,335 | 198,596 | 501,867 | 603,878 | |||||||||||
Financial Services (1) | 109,132 | 98,403 | 317,074 | 272,753 | |||||||||||
Other | 2,849 | 2,951 | 14,014 | 11,949 | |||||||||||
Total revenue | $ | 886,002 | $ | 850,828 | $ | 2,373,026 | $ | 2,410,130 | |||||||
As a Percentage of Consolidated Revenue: | |||||||||||||||
Retail revenue | 67.6 | % | 64.8 | % | 64.9 | % | 63.1 | % | |||||||
Direct revenue | 19.8 | 23.3 | 21.1 | 25.1 | |||||||||||
Financial Services revenue (1) | 12.3 | 11.6 | 13.4 | 11.3 | |||||||||||
Other revenue | 0.3 | 0.3 | 0.6 | 0.5 | |||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Segment Operating Income (Loss): | |||||||||||||||
Retail | $ | 108,552 | $ | 103,658 | $ | 260,656 | $ | 279,409 | |||||||
Direct | 18,236 | 29,284 | 75,429 | 104,912 | |||||||||||
Financial Services (1) | 28,158 | 29,182 | 84,847 | 79,198 | |||||||||||
Other | (61,031 | ) | (85,521 | ) | (214,173 | ) | (240,866 | ) | |||||||
Total operating income | $ | 93,915 | $ | 76,603 | $ | 206,759 | $ | 222,653 | |||||||
As a Percentage of Segment Revenue: | |||||||||||||||
Retail operating income | 18.1 | % | 18.8 | % | 16.9 | % | 18.4 | % | |||||||
Direct operating income | 10.4 | 14.7 | 15.0 | 17.4 | |||||||||||
Financial Services operating income (1) | 27.0 | 29.7 | 27.6 | 29.0 | |||||||||||
Total operating income as a percentage of total revenue | 10.6 | 9.0 | 8.7 | 9.2 | |||||||||||
(1) Includes the effect of the reimbursement from our Financial Services segment to our Retail and Direct segments for the costs of promotions totaling $4,896 and $9,672 eliminated in consolidation for the three and nine months ended September, 27, 2014, respectively. This adjustment in the presentation of reimbursement from the Financial Services segment to the Retail and Direct segments for certain operating and promotional costs was made during the three months ended June 28, 2014, and will be ongoing. | |||||||||||||||
CABELA'S INCORPORATED AND SUBSIDIARIES | ||||
COMPONENTS OF FINANCIAL SERVICES REVENUE | ||||
(Dollars in Thousands) | ||||
(Unaudited) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||||||
Interest and fee income | $ | 103,333 | $ | 87,945 | $ | 292,204 | $ | 250,383 | |||||||
Interest expense | (16,155 | ) | (17,075 | ) | (47,845 | ) | (46,863 | ) | |||||||
Provision for loan losses | (19,088 | ) | (8,404 | ) | (42,116 | ) | (33,030 | ) | |||||||
Net interest income, net of provision for loan losses | 68,090 | 62,466 | 202,243 | 170,490 | |||||||||||
Non-interest income: | |||||||||||||||
Interchange income | 93,817 | 88,963 | 267,756 | 252,290 | |||||||||||
Other non-interest income | 999 | 1,430 | 2,621 | 4,113 | |||||||||||
Total non-interest income | 94,816 | 90,393 | 270,377 | 256,403 | |||||||||||
Less: Customer rewards costs | (53,774 | ) | (54,456 | ) | (155,546 | ) | (154,140 | ) | |||||||
Financial Services revenue | $ | 109,132 | $ | 98,403 | $ | 317,074 | $ | 272,753 |
Three Months Ended | Nine Months Ended | ||||||||||
September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | ||||||||
Interest and fee income | 10.3 | % | 9.9 | % | 10.1 | % | 9.7 | % | |||
Interest expense | (1.6 | ) | (1.9 | ) | (1.7 | ) | (1.8 | ) | |||
Provision for loan losses | (1.9 | ) | (0.9 | ) | (1.5 | ) | (1.3 | ) | |||
Interchange income | 9.4 | 10.0 | 9.3 | 9.8 | |||||||
Other non-interest income | 0.1 | 0.2 | 0.1 | 0.2 | |||||||
Customer rewards costs | (5.4 | ) | (6.1 | ) | (5.4 | ) | (6.0 | ) | |||
Financial Services revenue | 10.9 | % | 11.2 | % | 10.9 | % | 10.6 | % |
CABELA'S INCORPORATED AND SUBSIDIARIES | ||||
KEY STATISTICS OF FINANCIAL SERVICES BUSINESS | ||||
(Unaudited) |
Three Months Ended | ||||||||||||||
September 27, 2014 | September 28, 2013 | Increase | % | |||||||||||
(Decrease) | Change | |||||||||||||
(Dollars in Thousands Except Average Balance per Account ) | ||||||||||||||
Average balance of credit card loans (1) | $ | 4,013,989 | $ | 3,551,109 | $ | 462,880 | 13.0 | % | ||||||
Average number of active credit card accounts | 1,820,924 | 1,694,334 | 126,590 | 7.5 | ||||||||||
Average balance per active credit card account (1) | $ | 2,204 | $ | 2,096 | $ | 108 | 5.2 | |||||||
Net charge-offs on credit card loans (1) | $ | 15,621 | $ | 15,312 | $ | 309 | 2.0 | |||||||
Net charge-offs as a percentage of average credit card loans (1) | 1.56 | % | 1.72 | % | (0.16 | )% | ||||||||
(1) Includes accrued interest and fees |
Nine Months Ended | ||||||||||||||
September 27, 2014 | September 28, 2013 | Increase | % | |||||||||||
(Decrease) | Change | |||||||||||||
(Dollars in Thousands Except Average Balance per Account ) | ||||||||||||||
Average balance of credit card loans (1) | $ | 3,860,956 | $ | 3,429,045 | $ | 431,911 | 12.6 | % | ||||||
Average number of active credit card accounts | 1,787,421 | 1,659,724 | 127,697 | 7.7 | ||||||||||
Average balance per active credit card account (1) | $ | 2,160 | $ | 2,066 | $ | 94 | 4.5 | |||||||
Net charge-offs on credit card loans (1) | $ | 48,404 | $ | 46,776 | $ | 1,628 | 3.5 | |||||||
Net charge-offs as a percentage of average credit card loans (1) | 1.67 | % | 1.82 | % | (0.15 | )% | ||||||||
(1) Includes accrued interest and fees |
CABELA'S INCORPORATED AND SUBSIDIARIES | ||||
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL MEASURES (1) | ||||
(Unaudited) |
Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures (1) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||||||||
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) | |||||||||||||||||||||||
Total revenue (2) | $ | 886,002 | $ | — | $ | 886,002 | $ | 850,828 | $ | (1,650 | ) | $ | 849,178 | ||||||||||
Selling, distribution, and administrative expenses (3) | $ | 299,587 | $ | (958 | ) | $ | 298,629 | $ | 304,293 | $ | (521 | ) | $ | 303,772 | |||||||||
Operating income | $ | 93,915 | $ | 958 | $ | 94,873 | $ | 76,603 | $ | (1,129 | ) | $ | 75,474 | ||||||||||
Operating income as a percentage of total revenue | 10.6 | % | 0.1 | % | 10.7 | % | 9.0 | % | (0.1 | )% | 8.9 | % | |||||||||||
Income before provision for income taxes | $ | 89,679 | $ | 958 | $ | 90,637 | $ | 72,652 | $ | (1,129 | ) | $ | 71,523 | ||||||||||
Provision for income taxes (4) | $ | 35,840 | $ | (3,527 | ) | $ | 32,313 | $ | 22,766 | $ | (354 | ) | $ | 22,412 | |||||||||
Net income | $ | 53,839 | $ | 4,485 | $ | 58,324 | $ | 49,886 | $ | (775 | ) | $ | 49,111 | ||||||||||
Earnings per diluted share | $ | 0.75 | $ | 0.06 | $ | 0.81 | $ | 0.70 | $ | (0.01 | ) | $ | 0.69 | ||||||||||
CABELA'S INCORPORATED AND SUBSIDIARIES | ||||
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL MEASURES (1) | ||||
(Unaudited) |
Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures (1) | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 27, 2014 | September 28, 2013 | ||||||||||||||||||||||
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) | |||||||||||||||||||||||
Total revenue (2) | $ | 2,373,026 | $ | — | $ | 2,373,026 | $ | 2,410,130 | $ | (2,850 | ) | $ | 2,407,280 | ||||||||||
Selling, distribution, and administrative expenses (3) | $ | 857,643 | $ | (958 | ) | $ | 856,685 | $ | 844,448 | $ | (735 | ) | $ | 843,713 | |||||||||
Impairment and restructuring charges (5) | $ | 641 | $ | (641 | ) | $ | — | $ | 937 | $ | (937 | ) | $ | — | |||||||||
Operating income | $ | 206,759 | $ | 1,599 | $ | 208,358 | $ | 222,653 | $ | (1,178 | ) | $ | 221,475 | ||||||||||
Operating income as a percentage of total revenue | 8.7 | % | 0.1 | % | 8.8 | % | 9.2 | % | — | % | 9.2 | % | |||||||||||
Income before provision for income taxes | $ | 196,340 | $ | 1,599 | $ | 197,939 | $ | 212,079 | $ | (1,178 | ) | $ | 210,901 | ||||||||||
Provision for income taxes (4) | $ | 73,235 | $ | (3,105 | ) | $ | 70,130 | $ | 67,801 | $ | (377 | ) | $ | 67,424 | |||||||||
Net income | $ | 123,105 | $ | 4,704 | $ | 127,809 | $ | 144,278 | $ | (801 | ) | $ | 143,477 | ||||||||||
Earnings per diluted share | $ | 1.71 | $ | 0.07 | $ | 1.78 | $ | 2.01 | $ | (0.01 | ) | $ | 2.00 | ||||||||||
(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 adjustments recorded through interchange income to the Company's outstanding liability related to the settlement of the Visa antitrust litigation. |
(3) | For the three and nine months ended September 27, 2014, 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. For the three and nine months ended September 28, 2013, reflects certain employee related expenses primarily related to severance benefits. |
(4) | Reflects the estimated income tax provision on the non-GAAP adjusted income before provision for income taxes, and for the three and nine months ended September 27, 2014, tax adjustments related to changes in assessments of uncertain tax positions. |
(5) | For the nine months ended September 27, 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. For the nine months ended September 28, 2013, reflects charges related to the closure and relocation of a retail store in May 2013. |
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