Financial AnalysisKarl

Keglovits

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Contents

3 Company Profile

4 Economic Issues

5 Revenue & Expenditure Summary

6 Assets & Liabilities Summary

7-8 Financial Analysis

9-11 Appendix

12 References

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Company Profile

In 1961, a guy by the name of Dick Cabela had a plan to sell fishing flies, in

which this plan later turned into the company that we all know today as Cabela’s.

This small plan eventually turned into one of the World’s Foremost Outfitter for

hunting, fishing, and outdoor gear. Cabela’s is still to this day a top company in this

market.

From the day that Dick Cabela came up with his plan, the Cabela Company

has taken off and has not only increased in size, but also the variety of equipment

and gear they sell. Every year Cabela’s comes out with about one hundred outdoors

catalogs to advertise their gear and equipment. Along with the one hundred

catalogs they come out with, every Fall and Spring they have exclusive catalogs as

well. Cabela’s is well known across the country and start to become recognized

internationally as well. Throughout the United States and parts of Canada there are

seventy currently open or announced locations that new Cabela stores will be

opening in the near future.

Cabela’s mission is, “As the World's Foremost Outfitter, we passionately

serve people who enjoy the outdoor lifestyle by delivering innovation, quality, and

value in our products and services.” Making hunting, fishing, and outdoors

experiences for customers is what this company strives to succeed at.

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Economic IssuesWhen looking at economic issues in society a common topic that usually

comes up is unemployment. In building a Cabela’s people may assume that this may

create job opportunities and decrease unemployment rates. Through research the

incentives that Cabela’s provides to try and create employment does not work.

There is no evidence found that incentives promote employment growth. This is a

big issue for this company and changes might be needed to provide more and new

employment opportunities to raise the unemployment rate.

In this industry Cabela’s competes with other big companies to try and

provide the best equipment and gear to customers. Another company in the market

that Cabela’s competes with is Bass Pro Shops. Bass Pro Shops is another outdoor

company that provides customers with equipment and gear. These two companies

are constantly battling to try and sell their products. In past years there have been

economic issues with both of these companies. Through research it stated that,

”Cabela’s has received $551 million in local and state assistance during the past 15

years” and “Bass Pro Shops received $1.3 billion in local and state assistance during

the same period”. This shows how these companies have been struggling over the

past decade. These companies need assistance from their states to keep the

businesses up and running. This is an important factor in the economic issue not

only with Cabela’s, but also the industry as well.

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Revenue & Expenditure Summary

In the charts below we can see the change over time that Cabela’s company

has had in revenues and expenditures. Since the year 2012 to the year 2014 Cabelas

has increased the revenues by $534,968, but also increased their expenses by

$290,491. Cabela’s is increasing both their revenues and expenses over the years.

As long as Cabela’s keeps this trend continuing over the years to come this company

will continue to have success.

The charts below show the quarterly and yearly revenues and expenditures data.

The chart on top shows the quarterly data while the chart on the bottom shows the

yearly data.

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Dec. 27,2014 Dec. 28, 2013 Dec. 29, 20120

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

RevenuesExpenditures

Sep. 26, 2015 Jun. 27, 2015 Mar. 28, 2015 Dec. 27, 20140

200000

400000

600000

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1200000

1400000

RevenuesExpenditures

Assets & Liabilities SummaryThe two graphs below show the quarterly and yearly assets and liabilities for

Cabela’s business. If we look at the yearly graph we can see how over the past three

years both assets and liabilities had a gradual increase. From 2012 to 2014 Cabela’s

assets have increased by $1,927,154 and their liabilities have increased by

$1,485,623. We can see that both the assets and liabilities have increased

significantly over the past 3 years. Even though we can see how the liabilities have

increased, the assets still exceed them, which is beneficial for Cabela’s.

The charts below show the quarterly and yearly assets and liabilities data. The chart

on top shows the quarterly data while the chart on the bottom shows the yearly

data.

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Sep. 26, 2015 Jun. 27, 2015 Mar. 28, 2015 Dec. 27, 20140

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

AssetsLiabilities

Financial AnalysisCabela’s is a huge organization in their market and making sure they are

financially stable is very important. When looking to see if a company is doing well

financially a good area to look is their return on assets. Through research I have

found a chart on how well Cabela’s has been doing as a whole over the last decade.

Profitability2005-12

2006-12

2007-12

2008-12

2009-12

2010-12

2011-12

2012-12

2013-12

Tax Rate % 37.1 37.5 36.88 35.38 35.16 32.71 33.5 33.7 34.68Net Margin % 4.03 4.16 3.74 2.99 1.89 4.21 5.07 5.57 6.23Asset Turnover (Average) 1.39 1.32 1.19 1.11 1.08 0.76 0.58 0.57 0.59Return on Assets % 5.59 5.5 4.43 3.32 2.03 3.19 2.95 3.19 3.7Financial Leverage (Average) 2.14 2.39 2.67 2.62 2.53 4.42 4.35 4.18 3.98Return on Equity % 12.03 12.49 11.25 8.77 5.23 11.17 12.93 13.57 15.05Return on Invested Capital % 10.77 9.96 8.37 7.28 4.92 5.57 4.71 5.15 5.75Interest Coverage — — — 4.98 4.3 7.07 9.78 14.01 16.69

In the middle of the chart this is a column called Return on Assets %. In this

column you want to have high percentages because this means the company is doing

well. In this specific chart for Cabela’s we can see that through time the return on

assets percentage for Cabela’s has declined by 2% over time. This is not necessarily

good to drop in percentage over time in this category, but at least Cabela’s has

maintained to be steady after the drop. In this scenario Cabela’s would like to be

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Dec. 27, 2014 Dec. 28, 2013 Dec. 29, 20120

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

AssetsLiabilities

where they were in the past because they were getting more and earning more with

less investment into their company. Recently and over time Cabela’s has been

investing more and not getting as much in return as they would like to have.

Along with return on assets percentage, revenues and expenditures is

another key area that Cabela’s has to strive in to stay financially stable. As we

looked at earlier on in this paper on the graph about revenues and expenditures,

Cabela’s has increased in both areas over time. Since the year 2012 to the year 2014

Cabelas has increased the revenues by $534,968, but also increased their expenses

by $290,491. Even though both of these categories increased, the revenues are still

higher then the expenses, which is beneficial for Cabela’s. Cabela’s is currently

planning and has announced 11 different locations that new stores will be built in

the near future. This will benefit Cabela’s in the long run to create more revenue

and income for this company. If Cabela’s continues to stay financially stable as it

looks through the graphs and charts it will be successful in their industry.

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Appendix

Balance Sheet:Balance Sheet Get Balance Sheet for:View: Annual Data | Quarterly Data All numbers in thousandsPeriod Ending 27-Dec-14 28-Dec-13 29-Dec-12AssetsCurrent AssetsCash And Cash Equivalents 477,570 222,263 306,042Short Term Investments - - -Net Receivables 184,695 90,298 100,245Inventory 760,293 644,883 552,575Other Current Assets 4,515,114 4,029,068 3,630,166Total Current Assets 5,937,672 4,986,512 4,589,028Long Term Investments 82,074 78,504 85,041Property Plant and Equipment 1,608,153 1,287,545 1,021,656Goodwill - - -Intangible Assets - - -Accumulated Amortization - - -Other Assets 47,418 44,303 52,438Deferred Long Term Asset Charges - - -Total Assets 7,675,317 6,396,864 5,748,163LiabilitiesCurrent LiabilitiesAccounts Payable 552,243 465,273 465,945Short/Current Long Term Debt 475,934 8,418 8,402Other Current Liabilities 1,092,863 639,089 955,003

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Total Current Liabilities 2,121,040 1,112,780 1,429,350Long Term Debt 3,071,031 2,774,897 328,133Other Liabilities 659,190 899,735 2,604,130Deferred Long Term Liability Charges 6,546 3,118 10,571Minority Interest - - -Negative Goodwill - - -Total Liabilities 5,857,807 4,790,530 4,372,184Stockholders' EquityMisc Stocks Options Warrants - - -Redeemable Preferred Stock - - -Preferred Stock - - -Common Stock 711 706 705Retained Earnings 1,462,532 1,260,817 1,036,427Treasury Stock - - -17,856Capital Surplus 365,973 346,535 351,161Other Stockholder Equity -11,706 -1,724 5,542Total Stockholder Equity 1,817,510 1,606,334 1,375,979Net Tangible Assets 1,817,510 1,606,334 1,375,979

Income Statement:Income Statement Get Income Statement for:View: Annual Data | Quarterly Data All numbers in thousandsPeriod Ending 27-Dec-14 28-Dec-13 29-Dec-12Total Revenue 3,647,650 3,599,577 3,112,682Cost of Revenue 2,060,289 2,030,829 1,769,798Gross Profit 1,587,361 1,568,748 1,342,884Operating ExpensesResearch Development - - -Selling General and Administrative 1,251,325 1,201,519 1,046,861Non Recurring 641 5,868 20,324Others - - -Total Operating Expenses - - -Operating Income or Loss 335,395 361,361 275,699Income from Continuing OperationsTotal Other Income/Expenses Net 4,924 4,021 6,138Earnings Before Interest And Taxes 340,319 365,382 281,837Interest Expense 21,842 21,854 20,123Income Before Tax 318,477 343,528 261,714Income Tax Expense 116,762 119,138 88,201Minority Interest - - -

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Net Income From Continuing Ops 201,715 224,390 173,513Non-recurring EventsDiscontinued Operations - - -Extraordinary Items - - -Effect Of Accounting Changes - - -Other Items - - -Net Income 201,715 224,390 173,513Preferred Stock And Other Adjustments - - -Net Income Applicable To Common Shares 201,715 224,390 173,513

Cash Flow:Cash Flow Get Cash Flow for:

View: Annual Data | Quarterly DataAll numbers in thousands

Period Ending 27-Dec-14 28-Dec-13 29-Dec-12Net Income 201,715 224,390 173,513Operating Activities, Cash Flows Provided By or Used InDepreciation 113,097 93,407 79,269Adjustments To Net Income 68,638 52,161 55,123Changes In Accounts Receivables -19,468 3,391 4,485Changes In Liabilities 58,946 12,832 28,495Changes In Inventories -119,751 -92,308 -57,747Changes In Other Operating Activities -45,198 51,131 -48,509Total Cash Flow From Operating Activities 257,979 345,004 234,629Investing Activities, Cash Flows Provided By or Used InCapital Expenditures -440,891 -333,009 -214,267Investments 4,971 3,908 3,151Other Cash flows from Investing Activities -830,382 -463,930 -401,251Total Cash Flows From Investing Activities -1,266,302 -793,031 -612,367Financing Activities, Cash Flows Provided By or Used InDividends Paid - - -Sale Purchase of Stock - -10,053 -28,977Net Borrowings 954,206 359,504 356,731Other Cash Flows from Financing Activities -4,982 -1,061 20,706Total Cash Flows From Financing Activities 956,775 358,349 361,809Effect Of Exchange Rate Changes -4,766 - -Change In Cash and Cash Equivalents -56,314 -89,678 -15,929

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References

Cabela’s Inc. (2015). Cabela’s World's Foremost Outfitter. Retrieved from http://www.cabelas.com/content.jsp?pageName=CompanyHistory

Calcagno, P. T. (2009). The Sembler Retail Incentive Deal: An Economic Analysis. Retrieved from http://fitsnews.com/wpcontent/uploads/2010/01/Sembler-Economic-Analysis.pdf

JobsInTheUS.com. (2014). Unending Progress and Growth Since 1961. Retrieved from http://www.jobsinme.com/seek/coprofiledetail.aspx?co_num=54626

Morningstar Inc. (2015). Morningstar. Retrieved from http://financials.morningstar.com/ratios/r.html?t=CAB

Reeder, S. (2012, August 13). Why Have So Many Cities and Towns Given Away So Much Money to Bass Pro Shops and Cabela’s? Retrieved from http://www.citylab.com/cityfixer/2012/08/why-have-so-many-cities-and-towns-given-away-so-much-money-bass-pro-shops-and-cabelas/2906/

Yahoo. (2015, December 6). Yahoo Finance. Retrieved from https://finance.yahoo.com/q/cf?s=CAB+Cash+Flow&annual

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