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This excerpt taken from the GMTN 8-K filed Jun 3, 2009. Reduction in consolidated net loss of 24 %
ST. PAUL, Minn., June 3, 2009 /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 first fiscal quarter ended May 2, 2009.
Highlights:
· Retail sales gained 11.6 percent for the quarter, reflecting strong performance in firearms, ammunition, marine and camping. · Comparable store sales grew 7.4 percent for the quarter. Excluding the (5.4) percent impact of boat and ATV sales and power sport services, which are categories the company is in the process of exiting, comparable store sales were a positive 12.8 percent during the quarter. · The seasonal nature of Gander Mountain’s retail categories historically produces a first quarter loss, however, the reported retail segment net loss of $16.4 million is a $6.4 million, or 28.3 percent, improvement over the prior year.
Fiscal 2009 first quarter consolidated sales were $227.7 million compared to consolidated sales of $207.7 million for the first quarter of fiscal 2008, a 9.6 percent increase.
Retail segment sales were $209.9 million, an increase of $21.9 million or 11.6 percent, as compared to the fiscal 2008 first quarter. Direct segment sales were $17.8 million for the quarter, compared to $19.7 million for the same quarter last year, a decrease of 9.6 percent.
Retail segment net loss was $16.4 million compared to a retail net loss of $22.8 million for the first quarter last year, an improvement of $6.4 million, or 28.3 percent. The improvement resulted primarily from sales gains, improved leverage in SG&A, and reduced interest expense.
Consolidated net loss was $18.6 million for the fiscal 2009 first quarter compared to a consolidated net loss of $24.4 million for the same quarter last year, an improvement of $5.8 million, or 23.7 percent. Consolidated results for the quarter include a net loss from the Direct segment of $2.3 million.
Comparable store sales during the first quarter of fiscal 2009 were 7.4 percent, an improvement over (0.2) percent in the fourth quarter of fiscal 2008. The firearms, ammunition, marine and camping categories all experienced strong sales performance during the quarter. Excluding the (5.4) percent impact of boat and ATV sales and power sport services, which are categories the company is in the process of exiting, comparable store sales were a positive 12.8 percent during the quarter.
Improvement in inventory management resulted in a decrease in Retail segment inventory of 16.8 percent per square foot, year-over-year.
Consolidated SG&A costs, as a percentage of sales, declined 110 basis points to 27.3 percent of sales in the quarter.
At the end of the quarter, the Company had total debt of $308 million, which is lower than the prior year by $39 million.
“Strong comparable sales performance in our retail segment allowed Gander Mountain to report continued operating improvement, even during the slowest seasonal period in the hunt-fish-camp categories and in a difficult retail environment. We continue to apply a more disciplined approach to our operations, capital, and expense decisions,” said David C. Pratt, chairman and interim chief executive officer. “As expected, the 2009 retail environment remains challenging. We believe that our ongoing efforts to improve operating margins, manage costs and reduce debt will continue our momentum. I would like to thank our associates, vendors, and shareholders for their continued support.”
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.
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