SGDE Sportsmans Guide

The Sportsman's Guide Releases Record Quarter and 2003 Year-End Results Year End Sales and EPS Well Above Levels Reported for 2002 and at the High End Of Recent Guidance SOUTH ST. PAUL, Minn., Feb. 12 /PRNewswire-FirstCall/ -- The Sportsman's Guide, Inc. today reported results of operations for the quarter and year ended December 31, 2003 that were at the high end of the Company's most recent guidance. Sales for the quarter were $71.7 million, an increase over the $66.3 million reported for the same period one year ago. The Company reported net earnings of $3.8 million, or $0.71 per fully diluted share for the quarter, compared to $2.6 million, or $0.53 per share, reported for the three months ended December 31, 2002. For the twelve months ended December 31, 2003, sales were $194.7 million, an increase over the $179.3 million reported for 2002. The Company recorded net earnings of $6.2 million, or $1.16 per fully diluted share, for the year, compared to net earnings of $4.0 million, or $0.80 per share, for the twelve months ended December 31, 2002. Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, "Our 2003 results showed sales up 8.6% and net earnings up 53.3%. These increases were due to the continuing benefit of an effective and profitable mail plan and stronger Internet related sales activity, approximating 36% of total catalog and Internet sales for 2003, compared to 30% last year." Binkley also noted the Company ended the year with its strongest balance sheet ever, with $32.1 million of cash, no outstanding bank advances and inventory of $18.9 million, just over 8% lower than 2002 levels. 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/ . Information for investors can be obtained at the Company's investor relations website http://www.sportsmansguideir.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) December 31, December 31, 2003 2002 ASSETS CURRENT ASSETS Cash and cash equivalents $32,054 $17,152 Accounts receivable - net 3,034 3,014 Inventory 18,874 20,593 Promotional material 2,565 2,540 Prepaid expenses and other 1,871 1,133 Deferred income taxes 3,176 2,409 Totalcurrent assets 61,574 46,841 PROPERTY AND EQUIPMENT, NET 2,248 2,672 Total assets $63,822 $49,513 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $18,950 $16,230 Accrued expenses and other current liabilities 17,877 12,543 Total current liabilities 36,827 28,773 LONG-TERM LIABILITIES 187 119 Total liabilities 37,014 28,892 SHAREHOLDERS' EQUITY 26,808 20,621 Total liabilities and shareholders' equity $63,822 $49,513 The Sportsman's Guide, Inc. Income Statements (Unaudited) For The Three Months AndYears Ended December 31, 2003 and 2002 (In thousands, except per share data) Three months ended Years ended December 31, December 31, 2003 2002 2003 2002 Sales $71,700 $66,313 $194,703 $179,315 Cost of sales 46,318 42,748 130,639 120,707 Gross profit 25,382 23,565 64,064 58,608 Selling, general and administrative expenses 19,411 19,016 54,467 51,983 Earnings from operations 5,971 4,549 9,597 6,625 Interest expense -- (1) -- (1) Miscellaneous income (expense), net 38 (376) 24 (297) Earnings before income taxes 6,009 4,172 9,621 6,327 Income tax expense 2,164 1,525 3,463 2,310 Net earnings $3,845 $2,647 $6,158 $4,017 Net earnings per share: Basic $.80 $.56 $1.29 $.85 Diluted$.71 $.53 $1.16 $.80 Weighted average common and common equivalent shares outstanding: Basic 4,834 4,754 4,785 4,752 Diluted 5,437 5,0005,290 5,001 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,+1-612-344-1000, or direct, +1-612-344-1012 Web site: http://www.sportsmansguide.com/ http://www.bargainoutfitters.com/ http://www.sportsmansguideir.com/

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