Gander Mountain Company (GMTN, Financial) filed Quarterly Report for the period ended 2009-10-31.
Gander Mountain Company, headquartered in Minneapolis, Minnesota, is a leading specialty retailer that caters to the needs of outdoor lifestyle enthusiasts, with a particular focus on hunting, fishing and camping. Gander Mountain stores offer competitively priced national, regional and owned brand outdoor equipment, accessories, related technical apparel and footwear. Gander Mountain Company has a market cap of $122.7 million; its shares were traded at around $5.07 with and P/S ratio of 0.1.
Gross Profit. Consolidated gross profit increased by $5.4 million, or 7.8%, to $75.2 million in the third quarter of fiscal 2009 from $69.8 million in the third quarter of fiscal 2008. As a percentage of sales, consolidated gross profit increased 135 basis points to 27.2 % in the third quarter of fiscal 2009 from 25.8 % in the third quarter of fiscal 2008. The significant factors affecting our consolidated gross profit rate during the third quarter of fiscal 2009 were a higher Retail gross profit rate that impacted the consolidated rate by 147 basis points. Retail segment gross profit rates benefitted primarily from a more favorable sales mix than the fiscal 2008 third quarter, improving due to higher initial margin rates in firearms and ammunition, higher sales penetration in the higher-margin apparel products and lower sales of our lower-margin powersports products. The higher Retail gross profit rate was partially offset by a decline in the Direct segment gross profit rate that negatively impacted the consolidated rate by 12 basis points. Direct segment gross profit declined due to promotional efforts necessary to grow sales in our immature, early-stage Gander Mountain direct business. Gross profit rates for the Overtons direct business improved slightly due to product sales mix.
Interest Expense, Net. Interest expense decreased by $2.4 million, or 47.9%, to $2.6 million in the third quarter of fiscal 2009 from $5.0 million in the third quarter of fiscal 2008.
Retail segment sales were $681.7 million for the first nine months of fiscal 2009, an increase of $25.1 million, or 3.8% from $656.6 million for the first nine months of fiscal 2008. The Retail segment sales increase resulted from sales of $18.0 million from new stores not included in the comparable store sales base, a comparable store sales increase of $11.1 million and a $4.0 million sales decrease from stores closed during the first nine months of fiscal 2009 but open in fiscal 2008, as well as changes in other revenue. We opened one new store in the first nine months of fiscal 2009. During the first nine months of fiscal 2008, we opened five new stores and closed three stores.
Gross Profit. Consolidated gross profit increased by $7.2 million, or 4.0%, to $186.5 million in the first nine months of fiscal 2009 from $179.3 million in the first nine months of fiscal 2008. As a percentage of sales, consolidated gross profit increased 23 basis points to 24.8% in the first nine months of fiscal 2009 from 24.5% in the first nine months of fiscal 2008. The significant components of our gross profit rate during the first nine months of fiscal 2009 were an increased Retail segment gross profit rate that impacted the consolidated rate by 78 basis points. Retail segment gross profit rates benefitted primarily from a more favorable sales mix than the fiscal 2008 nine month period, improving due to higher initial margin rates in firearms and ammunition as well as lower sales of our lower-margin powersports products. Sales of lower-margin powersports products decreased $22.6 million during the first nine months of fiscal 2009 as compared to the same period last year. The Retail gross profit rate increase was partially offset by sales deleverage of 35 basis points in occupancy costs. The higher Retail gross profit rate was also partially offset by a decline in the Direct segment gross profit rate that negatively impacted the consolidated rate by 54 basis points. Direct segment gross profit declined due to promotional efforts necessary to grow sales in our immature, early-stage Gander Mountain direct business.
Financing activities provided $77.7 million of cash in the first nine months of fiscal 2009 and provided $64.9 million of cash in the first nine months of fiscal 2008. In the comparable periods, the borrowings under our credit facility funded our cash used in operations as well as capital expenditures. Borrowings under the credit facility were partially offset by reductions in long term debt through scheduled payments of $9.9 million in the first nine months of fiscal 2009 and of $5.6 million in the first nine months of fiscal 2008. During fiscal 2008, we also borrowed $10.0 million from two major shareholders, with repayment now due on March 31, 2010, primari
Read the The complete ReportGMTN is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Gander Mountain Company, headquartered in Minneapolis, Minnesota, is a leading specialty retailer that caters to the needs of outdoor lifestyle enthusiasts, with a particular focus on hunting, fishing and camping. Gander Mountain stores offer competitively priced national, regional and owned brand outdoor equipment, accessories, related technical apparel and footwear. Gander Mountain Company has a market cap of $122.7 million; its shares were traded at around $5.07 with and P/S ratio of 0.1.
Highlight of Business Operations:
Retail segment sales were $261.0 million for the third quarter of fiscal 2009, an increase of $5.5 million, or 2.2% from $255.5 million for the third quarter of fiscal 2008. The Retail segment sales increase resulted from a comparable store sales increase of $2.7 million, an increase of $3.0 million in sales from new stores not included in the comparable store sales base, partially offset by a $200,000 sales decrease from changes in other revenue. We did not open any new stores in the third quarter of fiscal 2009 or in the third quarter of fiscal 2008.Gross Profit. Consolidated gross profit increased by $5.4 million, or 7.8%, to $75.2 million in the third quarter of fiscal 2009 from $69.8 million in the third quarter of fiscal 2008. As a percentage of sales, consolidated gross profit increased 135 basis points to 27.2 % in the third quarter of fiscal 2009 from 25.8 % in the third quarter of fiscal 2008. The significant factors affecting our consolidated gross profit rate during the third quarter of fiscal 2009 were a higher Retail gross profit rate that impacted the consolidated rate by 147 basis points. Retail segment gross profit rates benefitted primarily from a more favorable sales mix than the fiscal 2008 third quarter, improving due to higher initial margin rates in firearms and ammunition, higher sales penetration in the higher-margin apparel products and lower sales of our lower-margin powersports products. The higher Retail gross profit rate was partially offset by a decline in the Direct segment gross profit rate that negatively impacted the consolidated rate by 12 basis points. Direct segment gross profit declined due to promotional efforts necessary to grow sales in our immature, early-stage Gander Mountain direct business. Gross profit rates for the Overtons direct business improved slightly due to product sales mix.
Interest Expense, Net. Interest expense decreased by $2.4 million, or 47.9%, to $2.6 million in the third quarter of fiscal 2009 from $5.0 million in the third quarter of fiscal 2008.
Retail segment sales were $681.7 million for the first nine months of fiscal 2009, an increase of $25.1 million, or 3.8% from $656.6 million for the first nine months of fiscal 2008. The Retail segment sales increase resulted from sales of $18.0 million from new stores not included in the comparable store sales base, a comparable store sales increase of $11.1 million and a $4.0 million sales decrease from stores closed during the first nine months of fiscal 2009 but open in fiscal 2008, as well as changes in other revenue. We opened one new store in the first nine months of fiscal 2009. During the first nine months of fiscal 2008, we opened five new stores and closed three stores.
Gross Profit. Consolidated gross profit increased by $7.2 million, or 4.0%, to $186.5 million in the first nine months of fiscal 2009 from $179.3 million in the first nine months of fiscal 2008. As a percentage of sales, consolidated gross profit increased 23 basis points to 24.8% in the first nine months of fiscal 2009 from 24.5% in the first nine months of fiscal 2008. The significant components of our gross profit rate during the first nine months of fiscal 2009 were an increased Retail segment gross profit rate that impacted the consolidated rate by 78 basis points. Retail segment gross profit rates benefitted primarily from a more favorable sales mix than the fiscal 2008 nine month period, improving due to higher initial margin rates in firearms and ammunition as well as lower sales of our lower-margin powersports products. Sales of lower-margin powersports products decreased $22.6 million during the first nine months of fiscal 2009 as compared to the same period last year. The Retail gross profit rate increase was partially offset by sales deleverage of 35 basis points in occupancy costs. The higher Retail gross profit rate was also partially offset by a decline in the Direct segment gross profit rate that negatively impacted the consolidated rate by 54 basis points. Direct segment gross profit declined due to promotional efforts necessary to grow sales in our immature, early-stage Gander Mountain direct business.
Financing activities provided $77.7 million of cash in the first nine months of fiscal 2009 and provided $64.9 million of cash in the first nine months of fiscal 2008. In the comparable periods, the borrowings under our credit facility funded our cash used in operations as well as capital expenditures. Borrowings under the credit facility were partially offset by reductions in long term debt through scheduled payments of $9.9 million in the first nine months of fiscal 2009 and of $5.6 million in the first nine months of fiscal 2008. During fiscal 2008, we also borrowed $10.0 million from two major shareholders, with repayment now due on March 31, 2010, primari
Read the The complete ReportGMTN is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
