Cabela's Bags a Big One: Fool by Numbers

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On Feb. 22, Motley Fool Hidden Gems recommendation Cabela's (NYSE: CAB) released fourth-quarter earnings for the period ended Dec. 30.

• The company's top line increased by 15.6%, backed by strong performance across all its business segments.
• Operating margin improved by 110 basis points, because of better store merchandising and increased efficiency from the installation of a new warehouse management system.
• Earnings per share improved by 25% to $0.80, primarily led by a rise in net profit, which was slightly offset by a 1.3% rise in diluted share count.
• Despite competition from Bass Pro Shops, Gander Mountain (Nasdaq: GMTN), and Dick's Sporting Goods (NYSE: DKS), Cabela's performed well -- and Motley Fool CAPS investors welcome the good news.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$781.0	$675.4	15.6%
Net Profit	$53.4	$42.5	25.5%
EPS	$0.80	$0.64	25.0%
Diluted Shares	66,968.3	66,098.9	1.3%

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	43.4%	42.7%	0.7
Operating Margin	11.3%	10.2%	1.1
Net Margin	6.8%	6.3%	0.5

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$172.9	$86.9	98.9%
Accounts Rec.	$43.7	$35.3	23.6%
Inventory	$484.4	$396.6	22.1%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$239.3	$162.3	47.4%
Long-Term Liabilities	$398.5	$178.0	124%

Learn the ways of the balance sheet.

Cash Flow Highlights

Perhaps the cash flow statement got lost in the aquarium. Management will fish it out in time for the 10-K.

Find out why Fools always follow the money.

Related Foolishness:

• Cabela's Is Catching On
• Cabela's Is Oiling Its Machine
• Dick's Victory Celebration

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.