CAB
$62.84
Cabela's
$.35
.56%
Earnings Details
3rd Quarter September 2016
Wednesday, October 26, 2016 6:30:01 AM
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Summary

Cabela's (CAB) Recent Earnings

Cabela's (CAB) reported 3rd Quarter September 2016 earnings of $0.53 per share on revenue of $996.5 million. The consensus earnings estimate was $0.80 per share on revenue of $1.0 billion. Revenue grew 7.6% on a year-over-year basis.

Cabela' Inc is a specialty retailer and a direct marketer of hunting, fishing, camping, and related outdoor merchandise. The Company operates in two segment retail and direct segments. It also issue the Cabela' CLUB Visa credit card.

Results
Reported Earnings
$0.53
Earnings Whisper
-
Consensus Estimate
$0.80
Reported Revenue
$996.5 Mil
Revenue Estimate
$1.01 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Cabela’s Inc. Announces Third Quarter 2016 Results

- Total Revenue Increased 7.6% to $996.5 Million

- SD&A Leverage of 20 Basis Points on a GAAP Basis and 90 Basis Points on a Non-GAAP Basis

--- Cabela’s CLUB(R) Avg. Receivables Grew 14.8%

--- Internet and Catalog Sales Increased 3.6%

--- U.S. Retail Comparable Store Sales Decreased 1.8% on a Shift-Adjusted Calendar Basis

Cabela’s Incorporated (CAB) today reported financial results for third quarter fiscal 2016. The Company accelerated the timing of its earnings press release so that it could provide financial information to certain third parties in connection with the pending acquisition of the Company by Bass Pro Shops.

For the quarter, total revenue increased 7.6% to $996.5 million; revenue from retail store sales increased 8.1% to $688.6 million; Internet and catalog sales increased 3.6% to $167.4 million; and Financial Services revenue increased 8.8% to $134.5 million. During the period, adjusted for the shift in weeks, U.S. comparable store sales decreased 1.8% and consolidated comparable store sales decreased 2.3%.

For the quarter, net income decreased 35.4% to $28.2 million compared to $43.7 million in the year ago quarter, and earnings per diluted share were $0.41 compared to $0.62 in the year ago quarter. Adjusted for certain items, the Company reported third quarter net income of $36.8 million and earnings per diluted share of $0.53 as compared to net income of $50.3 million and earnings per diluted share of $0.71 in the year ago quarter. Third quarter 2016 GAAP results included impairment and restructuring charges and other items totaling a $0.12 reduction in earnings per diluted share. See the supporting schedules to this earnings release labeled "Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures" for a reconciliation of the GAAP to non-GAAP financial measures.

"During the third quarter, we successfully drove sales growth in several of our key merchandise categories through an aggressive promotional and markdown cadence; however, these promotional activities also resulted in a decrease in merchandise gross margins and were the primary contributor to the profitability shortfall," said Tommy Millner, Cabela’s Chief Executive Officer. "Importantly, we saw the success of a variety of expense leverage efforts, and we continue to be excited about the Company’s announcement of our combination with Bass Pro Shops, which is expected to be completed in the first half of 2017."

For the quarter, consolidated comparable store sales decreased 2.3% and U.S. comparable store sales decreased 1.8% as compared to the same quarter a year ago. Comparable store sales strength in firearms and shooting related categories as well as the camping, powersports, and optics categories was more than offset by continued softness in our apparel categories. Internet and catalog sales increased 3.6% in the quarter as a result of strength in fishing, camping, optics, powersports and shooting related categories.

Merchandise gross margins decreased by 420 basis points in the quarter to 31.4% compared to 35.6% in the same quarter a year ago. This decrease was primarily attributable to more aggressive pricing, increased discounts, merchandise mix, and efforts to right size inventory levels. A more aggressive approach to price, promotion and discounting was responsible for approximately 230 basis points of the overall decrease in merchandise gross margin. Merchandise mix was responsible for approximately 90 basis points of the overall decrease and efforts to right size inventory levels were responsible for approximately 50 basis points of the overall decrease.

Expense leverage initiatives continued to generate meaningful contributions to profitability. For the quarter, GAAP basis SD&A expenses as a percentage of total revenue decreased 20 basis points to 35.8% as compared to 36.0% in the same quarter a year ago. On a Non-GAAP basis SD&A expenses as a percentage of total revenue decreased 90 basis points to 34.6% as compared to 35.5% in the same quarter a year ago.

"We have been very pleased with our expense and process improvement initiatives which have continued to exceed our expectations," Millner said. "It is important to note that the third quarter marks the fourth consecutive quarter of expense leverage at Cabela’s. These efforts span across the entire organization and I commend our teams for executing the implementation of these profitability enhancing improvements throughout the business."

Cabela’s CLUB had an excellent quarter despite an increase in the loan loss reserve. Due to higher delinquency rates, the reserve for loan losses increased by $18.5 million in the quarter. For the quarter, growth in the average number of active credit card accounts was 6.8% and growth in average balance per active credit card account was 7.6% as compared to the same period a year ago. The average balance of credit card loans grew 14.8% to over $5.2 billion as compared to $4.6 billion in the year ago quarter. For the quarter, net charge-offs were 2.21%. Third quarter Financial Services revenue increased 8.8% over the year ago quarter. This increase was primarily driven by increases in interest and fee income as well as interchange income, both of which were partially offset by increases in the provision for loan losses as well as interest expense.

As a reminder, Cabela’s will not host a conference call with analysts and investors or provide guidance in connection with the results and does not plan to do so for future quarters while the acquisition of the Company by Bass Pro Shops is pending.

About Cabela’s Incorporated

Cabela’s Incorporated, headquartered in Sidney, Nebraska, is a leading specialty omni-channel retailer of hunting, fishing, camping, shooting sports, and related outdoor merchandise. Since the Company’s founding in 1961, Cabela’s(R) has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World’s Foremost Outfitter(R). Cabela’s offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela’s also issues the Cabela’s CLUB(R) Visa credit card, which serves as its primary customer loyalty rewards program. Cabela’s stock is traded on the New York Stock Exchange under the symbol "CAB".

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are "forward-looking statements" that are based on the Company’s beliefs, assumptions, and expectations of future events, taking into account the information currently available to the Company. Such forward-looking statements include, but are not limited to, the Company’s statements regarding its proposed merger with Bass Pro Shops being completed in the first half of 2017. Forward-looking statements involve risks and uncertainties that may cause the Company’s actual results, performance, or financial condition to differ materially from the expectations of future results, performance, or financial condition that the Company expresses or implies in any forward-looking statements. These risks and uncertainties include, but are not limited to: the satisfaction of the conditions precedent to the consummation of the proposed merger by and among Bass Pro Group, LLC, Prairie Merger Sub, Inc., a wholly owned subsidiary of Bass Pro Group, LLC, and the Company, including, without limitation, the receipt of stockholder and regulatory approvals; unanticipated difficulties or expenditures relating to the proposed merger; legal proceedings, judgments, or settlements, including those that may be instituted against the Company, the Company’s board of directors, executive officers, and others following the announcement of the proposed merger; disruptions of current plans and operations caused by the announcement and pendency of the proposed merger; potential difficulties in employee retention due to the announcement and pendency of the proposed merger; and the response of customers, suppliers, business partners, and regulators to the announcement of the proposed merger; the state of the economy and the level of discretionary consumer spending, including changes in consumer preferences, demand for firearms and ammunition, and demographic trends; adverse changes in the capital and credit markets or the availability of capital and credit; the Company’s ability to successfully execute its omni-channel strategy; increasing competition in the outdoor sporting goods industry and for credit card products and reward programs; the cost of the Company’s products, including increases in fuel prices; the availability of the Company’s products due to political or financial instability in countries where the goods the Company sells are manufactured; supply and delivery shortages or interruptions, and other interruptions or disruptions to the Company’s systems, processes, or controls, caused by system changes or other factors; increased or adverse government regulations, including regulations relating to firearms and ammunition; the Company’s ability to protect its brand, intellectual property, and reputation; the Company’s ability to prevent cybersecurity breaches and mitigate cybersecurity risks; the outcome of litigation, administrative, and/or regulatory matters (including the ongoing audits by tax authorities and compliance examinations by the Federal Deposit Insurance Corporation); the Company’s ability to manage credit, liquidity, interest rate, operational, legal, regulatory capital, and compliance risks; the Company’s ability to increase credit card receivables while managing credit quality; the Company’s ability to securitize its credit card receivables at acceptable rates or access the deposits market at acceptable rates; the impact of legislation, regulation, and supervisory regulatory actions in the financial services industry; and other risks, relevant factors, and uncertainties identified in the Company’s filings with the SEC (including the information set forth in the "Risk Factors" section of the Company’s Form 10-K for the fiscal year ended January 2, 2016, and Form 10-Q for the quarterly period ended April 2, 2016), which filings are available at the Company’s website at www.cabelas.com and the SEC’s website at www.sec.gov. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. The Company’s forward-looking statements speak only as of the date they are made. Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Earnings Per Share)
(Unaudited)
Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Revenue:
Merchandise sales
$ 855,903
$ 798,455
$ 2,362,021
$ 2,202,177
Financial Services revenue
134,486
123,633
410,390
371,489
Other revenue
6,106
4,435
18,643
16,209
Total revenue
996,495
926,523
2,791,054
2,589,875
Cost of revenue:
Merchandise costs (exclusive of depreciation and amortization)
587,017
514,494
1,602,418
1,433,707
Cost of other revenue
2,453
--
6,744
220
Total cost of revenue (exclusive of depreciation and amortization)
589,470
514,494
1,609,162
1,433,927
Selling, distribution, and administrative expenses
356,340
333,497
1,015,211
969,493
Impairment and restructuring charges
1,454
5,587
5,385
5,587
Operating income
49,231
72,945
161,296
180,868
Interest expense, net
(6,052 )
(6,341 )
(23,568 )
(14,703 )
Other non-operating income, net
880
1,420
4,561
5,185
Income before provision for income taxes
44,059
68,024
142,289
171,350
Provision for income taxes
15,819
24,316
53,401
60,811
Net income
$
28,240
$
43,708
$
88,888
$
110,539
Earnings per basic share
$
0.41
$
0.63
$
1.30
$
1.56
Earnings per diluted share
$
0.41
$
0.62
$
1.29
$
1.54
Basic weighted average shares outstanding
68,469,845
69,914,906
68,269,130
70,750,743
Diluted weighted average shares outstanding
69,071,494
70,710,261
68,879,148
71,653,379
CABELA’S INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands Except Par Values)
(Unaudited)
October 1,
January 2,
September 26,
2016
2016
2015
ASSETS
CURRENT
Cash and cash equivalents
$
136,534
$
315,066
$
83,178
Restricted cash of the Trust
348,759
40,983
36,894
Accounts receivable, net
28,013
79,330
27,890
5,190,104
5,035,267
4,576,997
Credit card loans (includes restricted credit card loans of the
Trust of $5,266,469, $5,066,660, and $4,615,556),
net of
allowance for loan losses of $102,497, $75,911, and $65,962
Inventories
997,061
819,271
1,065,302
Prepaid expenses and other current assets
128,553
117,330
125,600
Income taxes receivable and deferred income taxes (at September 26,
46,241
77,698
164,523
2015, only)
Total current assets
6,875,265
6,484,945
6,080,384
Property and equipment, net
1,826,414
1,811,302
1,822,672
Deferred income taxes
37,384
28,042
--
Other assets
144,082
138,715
120,857
Total assets
$ 8,883,145
$ 8,463,004
$ 8,023,913
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT
Accounts payable, including unpresented checks of $11,410, $23,580,
$
297,851
$
281,985
$
365,763
and $29,176
Gift instruments, credit card rewards, and loyalty rewards programs
346,928
365,427
320,073
Accrued expenses and other liabilities
182,116
224,733
200,809
Time deposits
167,783
215,306
204,867
Current maturities of secured variable funding obligations of the
75,000
655,000
45,000
Trust
Current maturities of secured long-term obligations of the Trust, net
1,359,379
509,673
254,811
Current maturities of long-term debt
68,452
223,452
223,472
Total current liabilities
2,497,509
2,475,576
1,614,795
Long-term time deposits
1,008,891
664,593
683,081
Secured long-term obligations of the Trust, less current maturities,
2,465,970
2,721,259
2,975,367
net
Long-term debt, less current maturities, net
820,674
635,898
785,936
Deferred income taxes
--
--
13,070
Other long-term liabilities
134,893
137,035
139,866
COMMITMENTS AND CONTINGENCIES
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 - 71,595,020 shares for all periods
716
716
716
Outstanding - 68,476,998, 67,818,715, and 69,553,315 shares
Additional paid-in capital
377,826
389,754
379,915
Retained earnings
1,740,750
1,651,862
1,573,071
Accumulated other comprehensive loss
(36,381 )
(50,914 )
(40,743 )
Treasury stock, at cost - 3,118,022, 3,776,305, and 2,041,705 shares
(127,703 )
(162,775 )
(101,161 )
Total stockholders’ equity
1,955,208
1,828,643
1,811,798
Total liabilities and stockholders’ equity
$ 8,883,145
$ 8,463,004
$ 8,023,913
CABELA’S INCORPORATED AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Components of Total Consolidated Revenue:
Merchandise sales
$
855,903
$ 798,455
$ 2,362,021
$ 2,202,177
Financial Services revenue
134,486
123,633
410,390
371,489
Other revenue
6,106
4,435
18,643
16,209
Total consolidated revenue as reported
$
996,495
$ 926,523
$ 2,791,054
$ 2,589,875
As a Percentage of Total Consolidated Revenue:
Merchandise sales
85.9
%
86.2
%
84.6
%
85.1
%
Financial Services revenue
13.5
13.3
14.7
14.3
Other revenue
0.6
0.5
0.7
0.6
Total
100.0
%
100.0
%
100.0
%
100.0
%
Operating Income by Segment:
Merchandising
$
2,365
$
32,442
$
3,994
$
45,978
Financial Services
46,866
40,503
157,302
134,890
Total consolidated operating income as reported
$
49,231
$
72,945
$
161,296
$
180,868
Operating Income by Segment as a Percentage of Segment
Revenue:
Merchandising segment operating income
0.3 %
4.0 %
0.2 %
2.1 %
Financial Services segment operating income
36.3
34.2
39.9
37.8
Total operating income as a percentage of total segment revenue
4.9
7.9
5.8
7.0
CABELA’S INCORPORATED AND SUBSIDIARIES
COMPONENTS OF FINANCIAL SERVICES REVENUE
(Dollars in Thousands)
(Unaudited)

Financial Services revenue consists of activity from the Company’s credit card operations and is comprised of interest and fee income, interchange income, other non-interest income, interest expense, provision for loan losses, and customer rewards costs. The following table details the components and amounts of Financial Services revenue as reported for the periods presented below.

Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Interest and fee income
$ 155,343
$ 124,940
$ 436,271
$ 349,833
Interest expense
(23,278 )
(18,198 )
(64,080 )
(50,628 )
Provision for loan losses
(43,782 )
(28,152 )
(99,006 )
(57,213 )
Net interest income, net of provision for loan losses
88,283
78,590
273,185
241,992
Non-interest income:
Interchange income
104,376
101,249
304,213
287,452
Other non-interest income
998
826
2,543
2,329
Total non-interest income
105,374
102,075
306,756
289,781
Less: Customer rewards costs
(59,171 )
(57,032 )
(169,551 )
(160,284 )
Financial Services revenue as reported
$ 134,486
$ 123,633
$ 410,390
$ 371,489

The following table sets forth the components of Financial Services revenue as reported as a percentage of average total credit card loans, including any accrued interest and fees, for the periods presented below.

Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Interest and fee income
11.8 %
10.9 %
11.5 %
10.7 %
Interest expense
(1.8 )
(1.6 )
(1.7 )
(1.5 )
Provision for loan losses
(3.3 )
(2.5 )
(2.6 )
(1.8 )
Interchange income
8.0
8.9
8.1
8.8
Other non-interest income
0.1
0.1
0.1
0.1
Customer rewards costs
(4.5 )
(5.0 )
(4.5 )
(4.9 )
Financial Services revenue as reported
10.3 %
10.8 %
10.9 %
11.4 %
CABELA’S INCORPORATED AND SUBSIDIARIES
KEY STATISTICS OF FINANCIAL SERVICES BUSINESS
(Unaudited)

The following tables show key statistics reflecting the performance of the Financial Services business for the periods presented below.

Three Months Ended
October 1,
September 26,
Increase (Decrease)
% Change
2016
2015
(Dollars in Thousands Except Average Balance per Active Account)
Average balance of credit card loans (1)
$ 5,247,068
$ 4,570,087
$ 676,981
14.8 %
Average number of active credit card accounts
2,071,570
1,940,307
131,263
6.8
Average balance per active credit card account (1)
$
2,533
$
2,355
$
178
7.6
Purchases on credit card accounts, net
5,428,296
5,201,712
226,584
4.4
Net charge-offs on credit card loans (1)
28,991
19,375
9,616
49.6
Net charge-offs as a percentage of average
2.21 %
1.70 %
0.51 %
credit card loans (1)
(1) Includes accrued interest and fees
Nine Months Ended
October 1,
September 26,
Increase (Decrease)
% Change
2016
2015
(Dollars in Thousands Except Average Balance per Active Account)
Average balance of credit card loans (1)
$ 5,027,281
$ 4,364,535
$ 662,746
15.2 %
Average number of active credit card accounts
2,046,469
1,909,881
136,588
7.2
Average balance per active credit card account (1)
$
2,457
$
2,285
$
172
7.5
Purchases on credit card accounts, net
15,674,276
14,750,111
924,165
6.3
Net charge-offs on credit card loans (1)
82,854
54,888
27,966
51.0
Net charge-offs as a percentage of average
2.20 %
1.68 %
0.52 %
credit card loans (1)
(1) Includes accrued interest and fees
CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL
MEASURES (1)
(Unaudited)

To supplement our consolidated statements of income presented in accordance with generally accepted accounting principles ("GAAP"), we are providing non-GAAP adjusted financial measures of operating results that exclude certain items. Selling, distribution, and administrative expenses; impairment and restructuring charges; operating income; operating income as a percentage of total revenue; other non-operating income, net; income before provision for income taxes; provision for income taxes; net income; and earnings per diluted share are presented below both as GAAP reported and non-GAAP financial measures excluding (i) consulting fees and certain expenses primarily related to our corporate restructuring initiative and review of strategic alternatives; (ii) a charge recognized pursuant to a preliminary lawsuit settlement; (iii) impairment and restructuring charges; (iv) receipt on a note receivable balance previously written off; (v) a penalty associated with the Company’s settlement with the SEC; and (vi) incremental expenses related to the transition and closing of the Company’s distribution center in Canada. In light of the nature and magnitude, we believe these items should be presented separately to enhance a reader’s overall understanding of the Company’s ongoing operations. These non-GAAP adjusted financial measures should be considered in conjunction with the GAAP financial measures.

We believe these non-GAAP adjusted financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of such operations. In addition, we evaluate results using non-GAAP adjusted operating income, adjusted net income, and adjusted earnings per diluted share. These non-GAAP adjusted financial measures should not be considered in isolation or as a substitute for operating income, net income, earnings per diluted share, or any other measure calculated in accordance with GAAP. The following tables reconcile these financial measures to the related GAAP adjusted financial measures for the periods presented.

Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial
Measures (1)
Three Months Ended
October 1, 2016
September 26, 2015
GAAP Basis as Reported
Non-GAAP Adjustments
Non-GAAP Amounts
GAAP Basis as Reported
Non-GAAP Adjustments
Non-GAAP Amounts
(Dollars in Thousands Except Earnings Per Share)
Selling, distribution, and administrative expenses (2)
$ 356,340
$ (11,838 )
$
344,502
$ 333,497
$ (4,658 )
$
328,839
Impairment and restructuring charges (3)
$
1,454
$
(1,454 )
$ --
$
5,587
$ (5,587 )
$ --
Operating income
$
49,231
$
13,292
$
62,523
$
72,945
$ 10,245
$
83,190
Operating income as a percentage of total revenue
4.9 %
1.4 %
6.3 %
7.9 %
1.1 %
9.0 %
Income before provision for income taxes
$
44,059
$
13,292
$
57,351
$
68,024
$ 10,245
$
78,269
Provision for income taxes (4)
$
15,819
$
4,772
$
20,591
$
24,316
$
3,668
$
27,984
Net income
$
28,240
$
8,520
$
36,760
$
43,708
$
6,577
$
50,285
Earnings per diluted share
$
0.41
$
0.12
$
0.53
$
0.62
$
0.09
$
0.71

(footnotes follow on the next page)

CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL
MEASURES (Continued) (1)
(Unaudited)
Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial
Measures (1)
Nine Months Ended
October 1, 2016
September 26, 2015
GAAP Basis as Reported
Non-GAAP Adjustments
Non-GAAP Amounts
GAAP Basis as Reported
Non-GAAP Adjustments
Non-GAAP Amounts
(Dollars in Thousands Except Earnings Per Share)
Selling, distribution, and administrative expenses (2)
$ 1,015,211
$ (23,933 )
$
991,278
$ 969,493
$
(5,865 )
$
963,628
Impairment and restructuring charges (3)
$
5,385
$
(5,385 )
$ --
$
5,587
$
(5,587 )
$ --
Operating income
$
161,296
$
29,318
$
190,614
$ 180,868
$
11,452
$
192,320
Operating income as a percentage of total revenue
5.8 %
1.0 %
6.8 %
7.0 %
0.4 %
7.4 %
Other non-operating income, net (5)
$
4,561
$
(477 )
$
4,084
$
5,185
$ --
$
5,185
Income before provision for income taxes
$
142,289
$
28,841
$
171,130
$ 171,350
$
11,452
$
182,802
Provision for income taxes (4)
$
53,401
$
10,824
$
64,225
$
60,811
$
4,065
$
64,876
Net income
$
88,888
$
18,017
$
106,905
$ 110,539
$
7,387
$
117,926
Earnings per diluted share
$
1.29
$
0.26
$
1.55
$
1.54
$
0.10
$
1.64

(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) Consists of the following for the respective periods:

Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Consulting fees and certain expenses primarily related to the
$
11,838
$
3,658
$
20,083
$
3,658
Company’s corporate restructuring initiative and the review of
strategic alternatives
Charge related to a preliminary lawsuit settlement
--
--
3,850
--
Penalty associated with the Company’s settlement with the SEC
--
1,000
--
1,000
Incremental expenses related to the transition and closing of the
--
--
--
1,207
Company’s distribution center in Canada
$
11,838
$
4,658
$
23,933
$
5,865
CABELA’S INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED FINANCIAL
MEASURES (Continued) (1)
(Unaudited)

(3) Consists of the following for the respective periods:

Three Months Ended
Nine Months Ended
October 1,
September 26,
October 1,
September 26,
2016
2015
2016
2015
Charges for employee severance agreements and termination benefits
$
661
$ 5,377
$ 3,997
$
5,377
related to our corporate restructuring and reduction in the number
of personnel
Impairment losses on property, equipment, and other assets
793
210
1,388
210
$ 1,454
$ 5,587
$ 5,385
$
5,587

(4) For all periods presented, reflects the estimated income tax provision on the non-GAAP adjusted income before provision for income taxes. The effective income tax rate used for the non-GAAP financial measures, which were the same percentages used for the GAAP reported amounts, was 35.9% and 37.5%, respectively, for the three and nine months ended October 1, 2016, and 35.8% and 35.5%, respectively, for the three and nine months ended September 26, 2015.

(5) Reflects funds received on a note receivable where the balance was written off in a previous period and treated as a non-GAAP item.

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SOURCE: Cabela’s Incorporated

Cabela’s Incorporated
Investor: Andrew Weingardt, 308-255-7428
Media: Nathan Borowski, 308-255-2861