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Gander Mountain Company Announces Third Quarter 2009 Results
ST. PAUL, Minn., Dec. 3 /PRNewswire-FirstCall/ -- Gander Mountain Company (www.GanderMtn.com) (Nasdaq: GMTN), the nation's largest retail network of stores for hunting, fishing, camping, marine and outdoor lifestyle apparel and footwear, products and services today announced results for the third fiscal quarter ended October 31, 2009.
Fiscal 2009 third quarter consolidated sales were $276.6 million compared to consolidated sales of $269.9 million for the third quarter of fiscal 2008, a 2.5 percent increase.
Consolidated net income was $3.2 million for the fiscal 2009 third quarter compared to a consolidated net income of $0.8 million for the same quarter last year. Gander Mountain reported net earnings per share of $0.13 compared with $0.03 for the third quarter of fiscal 2008.
Retail segment sales for the third quarter were $261.0 million, an increase of $5.5 million or 2.2 percent, as compared to the fiscal 2008 third quarter. Direct segment sales were $15.6 million for the quarter, compared to $14.4 million for the same quarter last year, an increase of $1.2 million or 8.0 percent.
Comparable store sales during the third quarter of fiscal 2009 were a positive 1.0 percent. The firearms, ammunition, fishing, apparel, marine and camping categories all experienced above average comparable store sales gains during the quarter. During the second quarter of fiscal year 2009, Gander Mountain substantially completed its withdrawal from the boat, ATV and power sport services categories. Excluding the negative 2.7 percent impact of these categories, comparable store sales were a positive 3.7 percent during the third quarter.
Retail segment net income was $5.5 million compared to $3.7 million for the third quarter of last year. Net losses for the direct segment were $2.3 million for the quarter, compared with $2.9 million for the third quarter of last year.
For the 39 weeks ended October 31, 2009, the company reported sales of $752.7 million, an increase of 3.0 percent over the same period in fiscal 2008. Comparable store sales for the 39-week fiscal 2009 period were a positive 1.8 percent. Excluding the negative 3.8 percent impact of boat and ATV sales and power sport services, comparable store sales were a positive 5.6 percent for the 39-week fiscal 2009 period. The company reported a net loss for the 39-week period of $22.8 million, or $0.94 per share, compared with a net loss of $28.5 million, or $1.18 per share for the 39 weeks ended November 1, 2008.
About Gander Mountain Company
Gander Mountain Company (Nasdaq: GMTN), headquartered in Saint Paul, Minnesota, is the nation's largest retail network of stores for hunting, fishing, camping, marine, and outdoor lifestyle apparel and footwear, products and services. Established in 1960, the Gander Mountain brand has offered an expanding assortment of outdoor equipment, technical apparel and footwear, as well as gunsmith and archery services. The stores feature national, regional and local brands as well as the company's owned brands. Focused on a "We Live Outdoors" culture, Gander Mountain dedicates itself to creating outdoor memories. There are 116 conveniently located Gander Mountain outdoor lifestyle stores in 23 states and three outlet stores. Customers may also shop at www.GanderMtn.com. For the nearest store location call 800-282-5993 or visit www.GanderMtn.com. Gander Mountain is also the parent company of Overton's (www.overtons.com), a leading catalog and Internet based retailer of products for boating and other water sports enthusiasts.
Cautionary Note Regarding Forward-Looking Statements
Any statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors" section of the company's Annual Report on Form 10-K for fiscal 2008 and other required reports, as filed with the SEC, which are available at http://www.GanderMtn.com and at the SEC's Website at http://www.sec.gov.
Gander Mountain Company
Consolidated Statements of Operations - Unaudited
(In thousands, except per share data)
13 Weeks Ended 39 Weeks Ended
-------------- --------------
October 31, November 1,
2009 2008 2009 2008
---- ---- ---- ----
Sales $276,594 $269,920 $752,661 $730,455
Cost of goods sold 201,389 200,160 566,185 551,183
------- ------- ------- -------
Gross profit 75,205 69,760 186,476 179,272
Operating expenses:
Selling, general and
administrative expenses 68,814 64,975 199,425 190,871
Exit costs and related
Charges 492 (1,112) 1,165 (20)
Pre-opening expenses - - 299 2,035
--- --- --- -----
Income (loss) from
Operations 5,899 5,897 (14,413) (13,614)
Interest expense, net 2,579 4,950 7,807 14,301
----- ----- ----- ------
Income (loss) before
income taxes 3,320 947 (22,220) (27,915)
Income tax provision 151 182 591 619
--- --- --- ---
Net income (loss) $3,169 $765 $(22,811) $(28,534)
====== ==== ======== ========
Basic and diluted income
(loss) per common share $0.13 $0.03 $(0.94) $(1.18)
Weighted average common
shares outstanding 24,200 24,162 24,196 24,086
Gander Mountain Company
Consolidated Balance Sheets
(In thousands)
October 31, January 31,
2009 2009
---- ----
unaudited
Assets
Current assets:
Cash and cash equivalents $1,680 $1,655
Accounts receivable 21,736 10,784
Income taxes receivable - 62
Inventories 428,172 358,127
Prepaids and other current assets 11,214 12,132
------ ------
Total current assets 462,802 382,760
Property and equipment, net 150,134 162,180
Goodwill 47,114 47,114
Acquired intangible assets, net 18,365 19,130
Other assets, net 1,541 1,936
----- -----
Total assets $679,956 $613,120
======== ========
Liabilities and shareholders'
equity
Current liabilities:
Borrowings under credit facility $292,106 $204,514
Accounts payable 80,245 63,863
Accrued and other current
Liabilities 49,511 55,456
Notes payable - related parties 10,000 10,000
Current maturities of long
term debt 16,676 15,628
------ ------
Total current liabilities 448,538 349,461
Long term debt 40,775 50,402
Deferred income taxes 6,204 5,954
Other long term liabilities 26,922 27,398
Shareholders' equity:
Preferred stock ($.01 par value,
5,000,000 shares authorized; no
shares issued and
outstanding) - -
Common stock ($.01 par value,
100,000,000 shares authorized;
24,197,733 and 24,195,736
shares issued and outstanding) 242 242
Additional paid-in-capital 279,114 278,691
Accumulated deficit (121,839) (99,028)
-------- -------
Total shareholders' equity 157,517 179,905
------- -------
Total liabilities and
shareholders' equity $679,956 $613,120
======== ========
Gander Mountain Company
Consolidated Statements of Cash Flows - Unaudited
(In thousands)
39 Weeks Ended
--------------
October 31, November 1,
Operating activities 2009 2008
---- ----
Net loss $(22,811) $(28,534)
Adjustments to reconcile net
loss to net cash used in operating
activities:
Depreciation and amortization 23,098 23,434
Exit costs and related charges 1,115 (1,205)
Stock-based compensation expense 411 989
Loss (gain) on disposal of assets 10 (62)
Change in operating assets
and liabilities:
Accounts receivable (10,891) (10,380)
Inventories (70,044) (38,177)
Prepaids and other current assets 914 (567)
Other assets (65) (121)
Accounts payable and other liabilities 9,922 4,786
Deferred income taxes 250 293
--- ---
Net cash used in operating activities (68,091) (49,544)
------- -------
Investing activities
Purchases of property and equipment (9,679) (16,195)
Acquisition related expenses - (172)
Proceeds from sale of assets 112 77
--- ---
Net cash used in investing activities (9,567) (16,290)
------ -------
Financing activities
Borrowings under credit facility, net 87,592 60,251
Proceeds from short term notes
payable - related parties - 10,000
Reductions in long term debt (9,921) (5,623)
Proceeds from exercise of stock options and
employee stock purchases 12 235
--- ---
Net cash provided by financing activities 77,683 64,863
------ ------
Net increase (decrease) in cash 25 (971)
Cash, beginning of period 1,655 2,622
----- -----
Cash, end of period $1,680 $1,651
====== ======
Non-cash investing activities: During the 39 weeks ended October 31, 2009
and November 1, 2008, the Company acquired equipment totaling
approximately $1.3 million and $4.1 million, respectively, that was
financed through capital leases. These amounts are excluded from
Purchases of property and equipment in this statement of cash flows.
Gander Mountain Company
Consolidated Segment Information - Unaudited
(In thousands)
Statement of
Operations
data: 13 Weeks Ended 13 Weeks Ended
October 31, 2009 November 1, 2008
---------------- ----------------
Retail Direct Total Retail Direct Total
------- ------ ------- ------- ------ -------
Sales $261,030 $15,564 $276,594 $255,506 $14,414 $269,920
Depreciation
and
amortization 7,474 268 7,742 7,447 326 7,773
Exit costs
and
related
charges 492 - 492 (1,112) - (1,112)
Income (loss)
from
operations 7,715 (1,816) 5,899 8,086 (2,189) 5,897
Net income
(loss) $5,475 $(2,306) $3,169 $3,705 $(2,940) $765
39 Weeks Ended 39 Weeks Ended
October 31, 2009 November 1, 2008
---------------- ----------------
Retail Direct Total Retail Direct Total
------ ------ ----- ------ ------ -------
Sales $681,736 $70,925 $752,661 $656,644 $73,811 $730,455
Depreciation
and
amortization 22,315 783 23,098 22,319 1,115 23,434
Exit costs
and
related
charges 1,165 - 1,165 (20) - (20)
Income (loss)
from
operations (13,231) (1,182) (14,413) (13,630) 16 (13,614)
Net Loss $(19,954) $(2,857) $(22,811) $(25,940) $(2,594) $(28,534)
Balance
Sheet As of October 31, 2009 As of January 31, 2009
data: ---------------------- ----------------------
Retail Direct Total Retail Direct Total
------ ------ ----- ------ ------ -------
Total
Assets $590,166 $89,790 $679,956 $517,812 $95,308 $613,120
Inventories 408,997 19,175 428,172 334,868 23,259 358,127
Goodwill and
acquired
intangibles - 65,479 65,479 400 65,844 66,244
Long term
Debt $15,775 $25,000 $40,775 $20,402 $30,000 $50,402
SOURCE Gander Mountain Company
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RELATED LINKS
http://www.GanderMtn.com
http://www.overtons.com
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