Module 2 – Reformulation. Wilbur Benitez January 22, 2014. Cabela’s Overview . Was founded in 1961 and has been a leader in outdoor gear since Leading retailer in hunting, fishing and outdoor gear Went public in June 2004 Market Cap of 4.79B (2 nd in the industry)
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Module 2 – Reformulation
January 22, 2014
Was founded in 1961 and has been a leader in outdoor gear since
Leading retailer in hunting, fishing and outdoor gear
Went public in June 2004
Market Cap of 4.79B (2nd in the industry)
Total revenues of 3.1M in 2012
Currently going through an expansion
Separate enterprise operations from non-enterprise operations
Enterprise operations – business/production activities undertaken by the company
Allows us to focus on the core of the business when performing our valuation analysis
Issued by local or state government in order to encourage the construction of new stores in certain locations. Cabela’sutilizes these bonds to reduce the cost of constructing new stores.
Bonds are typically repaid through tax revenues.
If revenues are not sufficient to cover the principal and interest, then the fair value must be adjusted. The adjustment is made in order to fairly depict that Cabela’s will not benefit from the entire government assistance program.
Long term time deposits
Secured long-term obligations of the Trust
Long-term debt, less current maturities
Deferred income taxes
Other long term liabilities
All balance sheet items are related either to enterprise or financial operations
NFL will be useful in equity valuation
Similar processes but instead of the balance sheet we use the income statement
We need to separate the enterprise earnings from the financing earnings (expenses)
Effect of adopting ASC Topics 810 and 860
Foreign currency translation adjustments
Unrealized gain (loss) on economic development
Cash flow hedges
Again, we have indirectly made calculations for financing related activities
FEAT will be needed when determining the cost of capital