Cabela's 2004 Annual Report Download - page 58

These notes require that we comply with several Ñnancial and other covenants, including requirements
that we maintain the following Ñnancial ratios as set forth in the note purchase agreement:
‚ a consolidated adjusted net worth in an amount not less than the sum of (i) $150 million plus
(ii) 25% of positive consolidated net earnings on a cumulative basis for each Ñscal year beginning
with the Ñscal year ended 2002; and
‚ a Ñxed charge coverage ratio (the ratio of consolidated cash Öow to consolidated Ñxed charges for
each period of four consecutive Ñscal quarters) of no less than 2.00 to 1.00 as of the last day of any
Ñscal quarter.
In addition, the note purchase agreement includes a limitation that our subsidiaries, excluding the
bank, and we may not create, issue, assume, guarantee or otherwise assume funded debt in excess of 60%
of consolidated total capitalization.
As of January 1, 2005, we were in compliance with all of the covenants under our credit agreements
and unsecured notes. We may or may not engage in future long-term borrowing transactions to fund our
operations or our growth plans. Whether or not we undertake such borrowings will depend on a variety of
factors, including prevailing interest rates, our retail growth plans, our Ñnancial strength, alternative sources
and costs of funding and our management's assessment of potential returns on investment that may be
realized from the proceeds of such borrowings.
Impact of InÖation
We do not believe that our operating results have been materially aÅected by inÖation during the
preceding three Ñscal years. We cannot assure, however, that our operating results will not be adversely
aÅected by inÖation in the future.
Contractual Obligations and Commercial Commitments
The following tables provide summary information concerning our future contractual obligations and
commercial commitments, respectively, as of Ñscal year end 2004.
Contractual Obligations
2005 2006 2007 2008 2009 Thereafter Total
(Dollars in thousands)
Long-term debt ÏÏÏÏÏÏÏÏ $ 28,183 $ 28,901 $ 26,643 $26,583 $26,467 $ 2,736 $139,513
Interest payments(1) ÏÏÏ 7,423 5,986 4,513 3,152 1,785 4,882 27,741
Capital lease obligations 500 500 500 500 500 12,000 14,500
Operating leases ÏÏÏÏÏÏÏ 2,611 2,159 1,123 336 336 869 7,434
Time deposits by
maturity ÏÏÏÏÏÏÏÏÏÏÏÏ 48,953 28,201 10,705 7,200 5,200 400 100,659
Obligations under
economic development
arrangements(2) ÏÏÏÏÏ 307,807 2,252 1,272 2,769 962 4,096 319,158
Purchase obligations(3) 299,852 60,976 2,552 1 Ì Ì 363,379
Deferred compensationÏÏ 3,069 1,669 108 36 Ì 5,054 9,936
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $698,398 $130,644 $ 47,416 $40,577 $35,250 $30,037 $982,320
(1) These amounts do not include estimated interest payments due under our revolving credit facility
described below in ""Ì Other Commercial Commitments'' because the amount that will be borrowed
under this facility in future years is uncertain at this time.
46