SGDE Sportsmans Guide

The Sportsman's Guide Releases Record 2005 First Quarter Results Record Quarterly Net Sales Above and Earnings per Share at High End of Most Recent Guidance SOUTH ST. PAUL, Minn., May 4 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. (NASDAQ:SGDE) today reported results for the quarter ended March 31, 2005 that, with respect to net sales, were above most recent guidance and, with respect to fully diluted earnings per share, were at the high end of that guidance. Net sales for the Company's first quarter were $64.3 million, compared with $44.6 million reported for the same period in 2004. The quarter over quarter 44.2% increase in consolidated net sales was due in large part to the acquisition of The Golf Warehouse ("TGW") in June of 2004 and net sales increasing 12% at The Sportsman's Guide ("TSG"). The increase at TSG was largely the result of increased Internet sales. Net earnings for the quarter were $2.1 million, or $0.26 per fully diluted share, a 79.6% increase over the $1.2 million, or $0.15 per fully diluted share, reported for the same period in 2004. The per share calculations for the most recent period have been adjusted to reflect the Company's recent 3-for-2 stock split, distributed to shareholders on April 15, 2005. Without the effect of the split, fully diluted earnings per share for the quarter ended March 31, 2005 would have been $0.39 per share, compared to $0.22 per share for the same period in 2004. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "We had a very strong first quarter due to a number of factors. We saw strong net sales at both TGW and TSG. TSG's double digit sales growth was particularly gratifying and was due to our success in generating higher levels of Internet-related sales. The increase in total net sales and in the percentage of Internet-related sales is also the result of the continued strong performance of TGW. The impact of these factors pushed consolidated Internet-related sales to over 50% of total catalog and Internet sales for the very first time in our history." The Company will hold a conference call to discuss the results of the quarter at 10:30 am, CDT, Thursday, May 5, 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 1-800-362-0574 and asking for The Sportsman's Guide conference call. The call may also be accessed via the Internet at http://www.sportsmansguideir.com/ . The Company also noted that its Annual Meeting of Shareholders will be held on Friday, May 6, 2005, at 1:00 pm, CDT, at the Company's executive offices at 411 Farwell Avenue, South St. Paul, Minn. 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) March 31, March 31, December 31, 2005 2004 2004 ASSETS CURRENT ASSETS Cash and cash equivalents $2,851 $16,694 $8,616 Accounts receivable - net 2,996 2,147 3,955 Inventory 30,380 23,032 29,148 Promotional material 4,085 3,622 3,578 Prepaid expenses and other 3,577 2,489 3,123 Income taxes receivable -- 655 -- Deferred income taxes 907 2,220 1,122 Total current assets 44,796 50,859 49,542 PROPERTY AND EQUIPMENT, NET 2,493 1,947 2,693 OTHER ASSETS Goodwill 17,183 -- 17,176 Trade and domain name 10,200 -- 10,200 Other intangibles 613 -- 658 Total other assets 27,996 -- 28,034 Total assets $75,285 $52,806 $80,269 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $20,501 $16,024 $23,832 Accrued expenses and other current liabilities 15,982 12,347 19,987 Total current liabilities 36,483 28,371 43,819 LONG-TERM LIABILITIES 5,501 173 5,388 Total liabilities 41,984 28,544 49,207 SHAREHOLDERS' EQUITY 33,301 24,262 31,062 Total liabilities and shareholders' equity $75,285 $52,806 $80,269 The Sportsman's Guide, Inc. and Subsidiaries Consolidated Statements of Earnings (Unaudited) For the quarters ended March 31, 2005 and 2004 (In thousands, except per share data) For the quarters ended March 31, 2005 2004 Net sales $64,326 $44,594 Cost of sales 44,544 30,466 Gross profit 19,782 14,128 Selling, general and administrative expenses 16,472 12,346 Earnings from operations 3,310 1,782 Interest expense (64) -- Miscellaneous income, net 68 42 Earnings before income taxes 3,314 1,824 Income tax expense 1,218 657 Net earnings $2,096 $1,167 Net earnings per share: Basic $.29 $ .16 Diluted $.26 $ .15 Weighted average common and common equivalent shares outstanding: Basic 7,107 7,130 Diluted 8,066 8,052 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/

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