Gander Mountain operating income reaches $29.2 mn in 2006
30 Mar '07
3 min read
Gander Mountain Company reported results for the fourth quarter and fiscal year ended February 3, 2007. The fiscal fourth quarter included 14 weeks as compared to 13 weeks for the fourth quarter of fiscal 2005 and the fiscal year included 53 weeks as compared to 52 weeks in fiscal 2005.
For the fourth quarter, sales increased 16.4 percent to $326.9 million. Comparable store sales increased 0.4 percent on a 14-week comparable basis. Income from operations was $29.2 million, an increase of 12.1 percent. For the quarter, the company reported net income of $15.3 million, or $0.85 per diluted share, compared to net income of $22.2 million, or $1.45 per diluted share, in the fourth quarter of 2005.
Income for the 2006 fourth quarter includes a pre-tax non-cash charge of $9.0 million or ($0.50) per diluted share related to a previously announced fourth quarter transaction as described below.
On December 12, 2006, Gander Mountain Company announced that David C. Pratt had entered into an agreement to purchase 5,701,255 newly issued shares of common stock at a price of $8.77 per share for a total purchase price of $50.0 million. The purchase price in the equity financing was paid with $30 million in cash and the surrender and cancellation of the company's $20 million note originally issued to a Pratt family trust.
The non-cash charge of $9.0 million is due to technical accounting requirements related to the conversion of debt to equity securities. It is a one-time, non-cash charge and has no impact on total shareholders' equity or cash provided by operations.
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