Cabela's 2005 Annual Report Download - page 5

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An incredibly productive year for Cabela’s,
2005 saw us open four large-format destina-
tion retail stores, while continuing to gain
efficiencies with our new-store openings. In
2005, we reduced new-store opening costs
per store roughly 15%.
We also implemented several new technology
initiatives to improve retail operations,
including: implementation of retail store dash-
boarding to provide a more comprehensive view
of store operating and performance information;
installation of labor-scheduling software, which
allows us to more efficiently staff stores; and
implementation of loss prevention software.
We completed major enhancements to our
website, www.cabelas.com, including a
comprehensive platform upgrade. Internet
visits increased 37.5%, and our website was
the most visited sports and fitness website in
2005 according to Hitwise Incorporated.
Additionally, we were able to further lever-
age catalog costs as direct revenue increased
6.9% while catalog costs increased just 5.3%,
primarily due to increased catalog and
Internet productivity.
We also completed the first implementation
phase of a new warehouse management system
that allows more accurate and timely routing
of customer orders. Additionally, we have
installed a new automated electronic vendor
communications system, improving the vital
communication link with our vendors.
In 2005, we also monetized economic devel-
opment bonds related to two of our stores,
receiving more than $60 million in proceeds.
Despite the retirement of these bonds, we
ended the year with roughly the same
amount of bonds in our portfolio as we added
new bonds associated with our stores in
Texas, Utah and Minnesota. We expect the
recycling of economic development bonds to
provide a source of cash in future years.
Our financial position was further enhanced
by renegotiating our revolving credit facility.
We increased our credit facility from $230
million to $325 million and extended its
term from three to five years.
2005 Accomplishments
Annual Report 2005 3