Cabela's 2010 Annual Report Download - page 47

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37
for WFB to continue to meet the minimum requirements for the well-capitalized classification under the regulatory
framework for prompt corrective action, we invested $150 million in 2010 in additional capital in WFB. Effective
December 11, 2009, we amended the terms of our credit agreement to allow us to invest up to $225 million into
WFB in 2010 plus up to $25 million per year through June 30, 2012, when this credit agreement expires.
Operations Review
Our operating results expressed as a percentage of revenue were as follows for the years ended:
2010 2009 2008
Revenue 100.00%100.00%100.00%
Cost of revenue 59.16 60.88 60.34
Gross profit (exclusive of depreciation and amortization) 40.84 39.12 39.66
Selling, distribution, and administrative expenses 33.62 33.06 33.91
Impairment and restructuring charges 0.21 2.54 0.23
Operating income 7.01 3.52 5.52
Other income (expense):
Interest expense, net (1.03)(0.88)(1.16)
Other income, net 0.28 0.26 0.27
Total other income (expense), net (0.75)(0.62)(0.89)
Income before provision for income taxes 6.26 2.90 4.63
Provision for income taxes 2.05 1.02 1.64
Net income 4.21%1.88%2.99%
Results of Operations - 2010 Compared to 2009
Revenues
2010 %2009 %Increase
(Decrease) % Change
(Dollars in Thousands)
Retail $1,412,715 53.0% $ 1,388,991 52.8% $ 23,724 1.7%
Direct 999,771 37.5 1,058,644 40.2 (58,873)(5.6)
Financial Services 227,675 8.6 171,414 6.5 56,261 32.8
Other 23,081 0.9 13,191 0.5 9,890 75.0
$2,663,242 100.0% $ 2,632,240 100.0% $ 31,002 1.2
Product Sales Mix – The following chart sets forth the percentage of revenue contributed by each of the five
product categories for our Retail and Direct businesses and in total for the years ended:
Retail Direct Total
2010 2009 2010 2009 2010 2009
Hunting Equipment 44.5%45.3%33.7%35.2%40.2%41.1%
Clothing and Footwear 24.0 22.9 33.4 33.4 27.7 27.3
Fishing and Marine 14.2 14.5 11.5 12.1 13.2 13.5
Camping 8.5 8.5 11.8 10.2 9.8 9.2
Gifts and Furnishings 8.8 8.8 9.6 9.1 9.1 8.9
Total 100.0%100.0%100.0%100.0%100.0%100.0%