Rocky Brands, Inc. Announces First Quarter 2013 Results Earnings Per Share Increased 20% to $0.12 Funded Debt Decreased 6% to $20.3 Million Business Wire NELSONVILLE, Ohio -- April 23, 2013 Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its first quarter ended March 31, 2013. The Company reported first quarter net income of $0.9 million, or $0.12 per diluted share compared with net income of $0.7 million, or $0.10 per diluted share in the first quarter of 2012. First quarter 2013 net sales were $53.7 million versus net sales of $53.3 million a year ago. David Sharp, President and Chief Executive Officer, commented, “The year is off to a solid start highlighted by improvements in gross margin and net income. Sales continue to be driven by Durango as the brand’s western and lifestyle collections collectively were up 40% in the first quarter. In addition, increased Military sales combined with the initial shipments of our new private label program helped to offset softness in our work and commercial military categories. We are cautiously optimistic that we can generate improved top-line performance as the year progresses, which along with enhanced gross margins should result in a meaningful increase in annual profitability.” First Quarter Review Net sales for the first quarter were $53.7 million compared to $53.3 million a year ago. Wholesale sales for the first quarter were $42.0 million compared to $42.4 million for the same period in 2012. Retail sales for the first quarter were $10.8 million compared to $10.5 million for the same period last year with the increase driven by a significant gain in our business-to-consumer ecommerce sales. Military sales for the first quarter were $0.9 million compared to $0.4 million in the first quarter of 2012. Gross margin in the first quarter of 2013 was $18.7 million, or 34.8% of sales, compared to $18.0 million, or 33.8% of sales, for the same period last year. The 100 basis point increase was driven primarily by improved manufacturing efficiencies. Selling, general and administrative (SG&A) expenses were $17.2 million, or 32.0% of net sales, for the first quarter of 2013 compared to $16.7 million, or 31.4% of net sales, a year ago. The increase in SG&A was due to higher freight expense primarily related to the increase in business-to-consumer ecommerce sales compared with a year ago. Income from operations was $1.5 million, or 2.8% of net sales, compared to $1.3 million, or 2.4% of net sales. The Company’s funded debt decreased 5.9% to $20.3 million at March 31, 2013 versus $21.5 million at March 31, 2012. Inventory increased 6.5% to $68.3 million at March 31, 2013 compared with $64.1 million on the same date a year ago. Conference Call Information The Company’s conference call to review first quarter fiscal 2013 results will be broadcast live over the internet today, Tuesday, April 23, 2013 at 4:30 pm Eastern Time. The broadcast will be hosted at http://www.rockybrands.com. About Rocky Brands, Inc. Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky®, Georgia Boot®, Durango® and Lehigh® and the licensed brands Michelin® and Mossy Oak®. Rocky Brands is proud to supply footwear to the United States military. For more information, visit www.RockyBrands.com. Safe Harbor Language This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and include statements in this press release regarding future profitability (paragraph 3). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2012 (filed March 4, 2013 and amended on March 5, 2013). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements. Rocky Brands, Inc. and Subsidiaries Condensed Consolidated Balance Sheets March 31, 2013 December 31, 2012 March 31, 2012 Unaudited Audited Unaudited ASSETS: CURRENT ASSETS: Cash and cash $ 1,865,887 $ 4,022,579 $ 2,424,864 equivalents Trade receivables 42,329,436 44,555,057 38,587,112 – net Other receivables 461,297 575,984 783,349 Inventories 68,258,101 67,196,245 64,113,346 Income tax 1,077,092 - 947,575 receivable Deferred income 1,252,030 1,252,030 1,154,040 taxes Prepaid expenses 2,903,410 2,127,726 2,842,105 Total current 118,147,253 119,729,621 110,852,391 assets FIXED ASSETS – net 24,465,470 24,252,465 24,572,535 IDENTIFIED 30,490,800 30,498,802 30,498,545 INTANGIBLES OTHER ASSETS 328,242 363,527 468,692 TOTAL ASSETS $ 173,431,765 $ 174,844,415 $ 166,392,163 LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $ 11,426,322 $ 9,930,518 $ 12,643,640 Accrued expenses: Taxes - other 633,200 704,064 481,847 Income tax payable - 335,210 - Other 3,018,513 3,324,668 2,775,396 Total current 15,078,035 14,294,460 15,900,883 liabilities LONG TERM DEBT 20,252,298 23,461,340 21,512,650 DEFERRED INCOME 11,148,333 11,148,333 10,987,395 TAXES DEFERRED 255,906 303,406 488,437 LIABILITIES TOTAL LIABILITIES 46,734,572 49,207,539 48,889,365 SHAREHOLDERS' EQUITY: Common stock, no par value; 25,000,000 shares authorized; issued and outstanding March 31, 2013 - 7,516,448; December 31, 2012 - 7,503,568; March 31, 2012 - 69,862,770 69,694,770 69,694,770 7,503,568 Retained earnings 56,834,423 55,942,106 47,808,028 Total shareholders' 126,697,193 125,636,876 117,502,798 equity TOTAL LIABILITIES AND SHAREHOLDERS' $ 173,431,765 $ 174,844,415 $ 166,392,163 EQUITY Rocky Brands, Inc. and Subsidiaries Condensed Consolidated Statements of Operations Three Months Ended March 31, 2013 2012 Unaudited Unaudited NET SALES $ 53,715,476 $ 53,325,918 COST OF GOODS SOLD 35,044,706 35,303,837 GROSS MARGIN 18,670,770 18,022,081 OPERATING EXPENSES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 17,164,182 16,742,058 INCOME FROM OPERATIONS 1,506,588 1,280,023 OTHER INCOME AND (EXPENSES): Interest expense (129,557 ) (144,347 ) Other – net (4,935 ) (8,989 ) Total other - net (134,492 ) (153,336 ) INCOME BEFORE INCOME TAXES 1,372,096 1,126,687 INCOME TAX EXPENSE 480,000 406,000 NET INCOME $ 892,096 $ 720,687 INCOME PER SHARE Basic $ 0.12 $ 0.10 Diluted $ 0.12 $ 0.10 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic 7,516,162 7,503,270 Diluted 7,516,162 7,503,270 Contact: Rocky Brands, Inc. Jim McDonald, 740-753-1951 Chief Financial Officer or Investor Relations: ICR, Inc. Brendon Frey, 203-682-8200
Rocky Brands, Inc. Announces First Quarter 2013 Results
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