Cabela's 2012 Annual Report Download - page 52

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42
Key statistics reflecting the performance of Cabela’s CLUB are shown in the following chart for the
years ended:
2012 2011
Increase
(Decrease) % Change
(Dollars in Thousands Except Average Balance per Account)
Average balance of credit card loans (1) $ 3,095,781 $ 2,745,118 $ 350,663 12.8%
Average number of active credit card accounts 1,537,209 1,416,887 120,322 8.5
Average balance per active credit card account (1) $ 2,014 $ 1,937 $ 77 4.0
Net charge-offs on credit card loans (1) $ 57,803 $ 64,520 $ (6,717) (10.4)
Net charge-offs as a percentage of average credit
card loans (1) 1.87% 2.35% (0.48)%
(1) Includes accrued interest and fees.
The average balance of credit card loans increased to $3.1 billion, or 12.8%, for 2012 compared to 2011
due to an increase in the number of active accounts and the average balance per account. The average number of
active accounts increased to 1.5 million, or 8.5%, compared to 2011 due to our successful marketing efforts in new
account acquisitions. Net charge-offs as a percentage of average credit card loans decreased to 1.87% for 2012,
down 48 basis points compared to 2011, due to improvements in delinquencies and delinquency roll-rates. See
“Asset Quality of Cabela’s CLUB” in this report for additional information on trends in delinquencies and non-
accrual loans and analysis of our allowance for loan losses.
Other Revenue
Other revenue increased $1 million in 2012 to $13 million compared to 2011 primarily due to an increase of
$1 million in real estate sales revenue in 2012 compared to 2011.
Merchandise Gross Profit
Merchandise gross profit is defined as merchandise sales less the costs of related merchandise sold and
shipping costs. Comparisons of gross profit and gross profit as a percentage of revenue for our operations, year
over year, and to the retail industry in general, are impacted by:
• shifts in customer preferences;
• retail store, distribution, and warehousing costs (including depreciation and amortization), which we
exclude from our cost of revenue;
• royalty fees we include in merchandise sales for which there are no costs of revenue;
• Financial Services revenue we include in revenue for which there are no costs of revenue;
• real estate land sales we include in revenue for which costs vary by transaction;
• customer service related revenue we include in revenue for which there are no costs of revenue; and
• customer shipping charges in revenue.