false
0000895456
0000895456
2024-07-30
2024-07-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2024
ROCKY BRANDS, INC.
(Exact name of registrant as specified in its charter)
Ohio
|
001-34382
|
31-1364046
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
39 East Canal Street, Nelsonville, Ohio 45764
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (740) 753-1951
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
|
|
|
Title of class
|
|
Trading symbol
|
|
Name of exchange on which registered
|
Common Stock – No Par Value
|
|
RCKY
|
|
Nasdaq
|
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2024, Rocky Brands, Inc. ("Rocky") issued a press release entitled "Rocky Brands, Inc. Announces Second Quarter 2024 Results" regarding its condensed consolidated financial results for the quarter ended June 30, 2024. A copy of Rocky's press release is furnished as Exhibit 99 to this Form 8-K and is incorporated herein by reference.
The information in this Form 8-K and accompanying press release is being furnished under Item 2.02 and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The information contained or incorporated by reference in this Form 8-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act 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 Rocky and its management. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in Rocky's business as set forth in periodic reports filed with the Securities and Exchange Commission, including Rocky's annual report on Form 10-K for the year ended December 31, 2023 (filed March 15, 2024) and the quarterly report on Form 10-Q for the quarter ended March 31, 2024 (filed May 9, 2024). One or more of these factors have affected historical results, and could in the future affect Rocky'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 Form 8-K will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, Rocky, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of Rocky will be achieved. All forward-looking statements made in this Form 8-K are based on information presently available to the management of Rocky. Rocky assumes no obligation to update any forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
*Such press release is being "furnished" (not filed) under Item 2.02 of this Current Report on Form 8-K
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 30, 2024
|
Rocky Brands, Inc.
|
|
|
|
/s/ Thomas D. Robertson
|
|
Thomas D. Robertson
|
|
Chief Operating Officer, Chief Financial Officer and Treasurer
|
Exhibit 99
Rocky Brands, Inc. Announces Second Quarter 2024 Results
Net Sales of $98.3 Million; Net Loss Per Share of $0.17; Adjusted Net Income Per Share of $0.17
Inventories Decreased 20.0% and Total Debt Decreased 31.3% Year-Over-Year
NELSONVILLE, Ohio, July 30, 2024 – Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its second quarter ended June 30, 2024.
Second Quarter 2024 Overview
●
|
Net sales decreased 1.6% to $98.3 million from the year ago quarter, or increased 6.1%, excluding certain non-recurring sales from the year ago quarter |
● |
Operating income increased 104.7% to $4.5 million from the year ago quarter |
● |
Net loss was $1.2 million, or $0.17 per diluted share as compared to a net loss of $2.7 million or $0.37 per diluted share for the year ago quarter |
● |
Adjusted net income was $1.3 million, or $0.17 per diluted share, as compared to $0.0 million or $0.00 per diluted share for the year ago quarter |
● |
Inventories at June 30, 2024 decreased 20.0% year-over-year |
● |
Total debt at June 30, 2024 decreased 31.3% year-over-year |
Jason Brooks, Chairman, President and Chief Executive Officer, commented, “We continue to effectively navigate an unpredictable consumer environment thanks to our diversified brand portfolio and recently deployed cost saving initiatives. Strong double-digit gains in sales for our Durango and XTRATUF brands in both our wholesale and e-commerce channels helped offset softness in other areas of our business and generated low-single digit year-over-year recurring sales growth. The second quarter was also highlighted by the refinancing of our debt and simplification of our capital structure which is expected to generate approximately $4.4 million in annualized savings beginning in 2025. Over the past several years, we have taken actions to improve the Company’s financial profile in order to reinvest in growth and drive increased shareholder value. We are encouraged with our recent results and look forward to delivering further growth over the near and long-term.”
Second Quarter 2024 Review
Second quarter net sales decreased 1.6% to $98.3 million compared with $99.8 million in the second quarter of 2023. Excluding certain non-recurring sales relating to the manufacturing of Servus product following the divestiture of the Servus brand, the change to a distributor model in Canada in November 2023, and temporarily elevated commercial military footwear sales to a single customer throughout 2023, net sales increased 6.1% in the second quarter of 2024 compared to the year ago period. Wholesale sales for the second quarter were $68.3 million, down 4.5% compared to the second quarter of 2023, or up 2.3% excluding the aforementioned non-recurring sales. Retail sales for the second quarter increased 4.1%, or 6.1% excluding the non-recurring sales related to the change in the Canada distribution model, to $26.1 million compared to the second quarter of 2023. Contract Manufacturing sales, which include contract military sales and private label programs, were $3.9 million in the second quarter of 2024 compared to $3.3 million in the prior year period, or up $2.6 million excluding the aforementioned non-recurring sales.
Gross margin in the second quarter of 2024 was $38.0 million, or 38.7% of net sales, compared to $37.6 million, or 37.6% of net sales, for the same period last year. The 110-basis point increase in gross margin as a percentage of net sales was due to an increase of 200-basis points in Wholesale gross margins as well as a higher percentage of Retail net sales, which carry higher gross margins than our Wholesale and Contract Manufacturing segments.
Operating expenses were $33.5 million, or 34.1% of net sales, for the second quarter of 2024 compared to $35.4 million, or 35.4% of net sales, for the same period a year ago. Excluding $0.7 million of acquisition-related amortization in the second quarter of 2024 and $1.7 million of acquisition-related amortization and restructuring costs in the second quarter of 2023, adjusted operating expenses were $32.8 million, or 33.4%, in the current year period and $33.6 million, or 33.2%, in the year ago period.
Income from operations for the second quarter of 2024 was $4.5 million, or 4.6% of net sales, compared to $2.2 million, or 2.2% of net sales, for the same period a year ago. Adjusted operating income for the second quarter of 2024 was $5.2 million, or 5.3% of net sales, compared to adjusted operating income of $5.7 million, or 5.6% of net sales, a year ago.
Interest expense for the second quarter of 2024 was $6.1 million, inclusive of a $2.6 million one-time term loan extinguishment charge, compared with $5.6 million a year ago. Excluding the one-time term loan extinguishment charge, interest expense for the second quarter was $3.5 million. The $2.1 million decrease was driven by lower debt levels and lower interest rates as a result of the debt refinancing completed in April 2024.
The Company reported a second quarter net loss of $1.2 million, or $0.17 per diluted share, compared to a net loss of $2.7 million, or $0.37 per diluted share, in the second quarter of 2023. Adjusted net income for the second quarter of 2024 was $1.3 million, or $0.17 per diluted share, compared to $0.0 million, or $0.00 per diluted share, in the year ago period.
Balance Sheet Review
Cash and cash equivalents were $4.1 million at June 30, 2024 compared to $3.1 million on the same date a year ago.
Inventories at June 30, 2024 were $175.0 million, down 20.0% compared to $218.3 million on the same date a year ago.
Total debt, net of unamortized debt issuance costs, at June 30, 2024 was $152.4 million consisting of a $49.3 million senior term loan and $105.7 million of borrowings under the Company's $175.0 million revolving credit facility with Bank of America, N.A. Compared with June 30, 2023 and December 31, 2023, total debt at June 30, 2024 was down 31.3% and 12.0%, respectively.
Conference Call Information
The Company's conference call to review second quarter 2024 results will be broadcast live over the internet today, Tuesday, July 30, 2024 at 4:30 pm Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 704-4453 (domestic) or (201) 389-0920 (international). The conference call will also be available to interested parties through a live webcast at www.rockybrands.com. Please visit the website and select the “Investors” link at least 15 minutes prior to the start of the call to register and download any necessary software.
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. Brands in the portfolio include Rocky®, Georgia Boot®, Durango®, Lehigh®, The Original Muck Boot Company®, XTRATUF® and Ranger®. More information can be found at 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 the Company's ability to effectively navigate changes in the consumer environment (Paragraph 2), anticipated annualized savings beginning in 2025 as a result of the Company's recent debt refinancing and simplified capital structure (Paragraph 2) and the Company's actions to improve its financial profile in order to reinvest in growth and to drive increased shareholder value (Paragraph 2). 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, 2023 (filed March 15, 2024) and the quarterly report on Form 10-Q for the quarter ended March 31, 2024 (filed May 9, 2024). 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 inclusion of such information should not be regarded as a representation or warranty by the Company or any other person 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.
Company Contact:
|
Tom Robertson
|
|
Chief Operating Officer, Chief Financial Officer and Treasurer
|
|
(740) 753-9100
|
|
|
Investor Relations:
|
Brendon Frey
|
|
ICR, Inc.
|
|
(203) 682-8200
|
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
(Unaudited)
|
|
June 30,
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2023
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
4,107 |
|
|
$ |
4,470 |
|
|
$ |
3,082 |
|
Trade receivables – net
|
|
|
62,968 |
|
|
|
77,028 |
|
|
|
72,566 |
|
Contract receivables
|
|
|
- |
|
|
|
927 |
|
|
|
2,990 |
|
Other receivables
|
|
|
427 |
|
|
|
1,933 |
|
|
|
2,225 |
|
Inventories – net
|
|
|
174,973 |
|
|
|
169,201 |
|
|
|
218,327 |
|
Income tax receivable
|
|
|
1,025 |
|
|
|
1,253 |
|
|
|
3,494 |
|
Prepaid expenses
|
|
|
5,659 |
|
|
|
3,361 |
|
|
|
5,522 |
|
Total current assets
|
|
|
249,159 |
|
|
|
258,173 |
|
|
|
308,206 |
|
LEASED ASSETS
|
|
|
7,367 |
|
|
|
7,809 |
|
|
|
9,362 |
|
PROPERTY, PLANT & EQUIPMENT – net
|
|
|
51,296 |
|
|
|
51,976 |
|
|
|
54,032 |
|
GOODWILL
|
|
|
47,844 |
|
|
|
47,844 |
|
|
|
47,844 |
|
IDENTIFIED INTANGIBLES – net
|
|
|
111,220 |
|
|
|
112,618 |
|
|
|
114,019 |
|
OTHER ASSETS
|
|
|
988 |
|
|
|
965 |
|
|
|
1,049 |
|
TOTAL ASSETS
|
|
$ |
467,874 |
|
|
$ |
479,385 |
|
|
$ |
534,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
57,824 |
|
|
$ |
49,840 |
|
|
$ |
61,225 |
|
Contract liabilities
|
|
|
- |
|
|
|
927 |
|
|
|
2,990 |
|
Current portion of long-term debt
|
|
|
8,361 |
|
|
|
2,650 |
|
|
|
4,625 |
|
Accrued expenses and other liabilities
|
|
|
20,663 |
|
|
|
18,112 |
|
|
|
21,526 |
|
Total current liabilities
|
|
|
86,848 |
|
|
|
71,529 |
|
|
|
90,366 |
|
LONG-TERM DEBT
|
|
|
144,073 |
|
|
|
170,480 |
|
|
|
217,114 |
|
LONG-TERM TAXES PAYABLE
|
|
|
- |
|
|
|
169 |
|
|
|
169 |
|
LONG-TERM LEASE
|
|
|
4,914 |
|
|
|
5,461 |
|
|
|
6,804 |
|
DEFERRED INCOME TAXES
|
|
|
7,475 |
|
|
|
7,475 |
|
|
|
8,006 |
|
DEFERRED LIABILITIES
|
|
|
752 |
|
|
|
716 |
|
|
|
1,325 |
|
TOTAL LIABILITIES
|
|
|
244,062 |
|
|
|
255,830 |
|
|
|
323,784 |
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value;
|
|
|
|
|
|
|
|
|
|
|
|
|
25,000,000 shares authorized; issued and outstanding June 30, 2024 - 7,444,881; December 31, 2023 - 7,412,480; June 30, 2023 - 7,354,060
|
|
|
73,223 |
|
|
|
71,973 |
|
|
|
70,400 |
|
Retained earnings
|
|
|
150,589 |
|
|
|
151,582 |
|
|
|
140,328 |
|
Total shareholders' equity
|
|
|
223,812 |
|
|
|
223,555 |
|
|
|
210,728 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$ |
467,874 |
|
|
$ |
479,385 |
|
|
$ |
534,512 |
|
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
(Unaudited)
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
NET SALES
|
|
$ |
98,258 |
|
|
$ |
99,822 |
|
|
$ |
211,164 |
|
|
$ |
210,267 |
|
COST OF GOODS SOLD
|
|
|
60,220 |
|
|
|
62,250 |
|
|
|
128,977 |
|
|
|
128,936 |
|
GROSS MARGIN
|
|
|
38,038 |
|
|
|
37,572 |
|
|
|
82,187 |
|
|
|
81,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
33,530 |
|
|
|
35,370 |
|
|
|
69,695 |
|
|
|
74,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
4,508 |
|
|
|
2,202 |
|
|
|
12,492 |
|
|
|
6,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE AND OTHER – net
|
|
|
(6,131 |
) |
|
|
(5,630 |
) |
|
|
(10,785 |
) |
|
|
(10,294 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE INCOME TAX EXPENSE
|
|
|
(1,623 |
) |
|
|
(3,428 |
) |
|
|
1,707 |
|
|
|
(3,937 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX (BENEFIT) EXPENSE
|
|
|
(380 |
) |
|
|
(713 |
) |
|
|
399 |
|
|
|
(823 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
|
|
$ |
(1,243 |
) |
|
$ |
(2,715 |
) |
|
$ |
1,308 |
|
|
$ |
(3,114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ |
(0.17 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.18 |
|
|
$ |
(0.42 |
) |
Diluted
|
|
$ |
(0.17 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.18 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,429 |
|
|
|
7,354 |
|
|
|
7,423 |
|
|
|
7,350 |
|
Diluted
|
|
|
7,429 |
|
|
|
7,354 |
|
|
|
7,466 |
|
|
|
7,350 |
|
Rocky Brands, Inc. and Subsidiaries
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands, except share amounts)
(Unaudited)
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES, AS REPORTED
|
|
$ |
98,258 |
|
|
$ |
99,822 |
|
|
$ |
211,164 |
|
|
$ |
210,267 |
|
ADD: RETURNS RELATING TO SUPPLIER DISPUTE
|
|
|
- |
|
|
|
1,542 |
|
|
|
- |
|
|
|
1,542 |
|
ADJUSTED NET SALES
|
|
$ |
98,258 |
|
|
$ |
101,364 |
|
|
$ |
211,164 |
|
|
$ |
211,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD, AS REPORTED
|
|
$ |
60,220 |
|
|
$ |
62,250 |
|
|
$ |
128,977 |
|
|
$ |
128,936 |
|
LESS: SUPPLIER DISPUTE INVENTORY ADJUSTMENT
|
|
|
- |
|
|
|
(181 |
) |
|
|
- |
|
|
|
(181 |
) |
ADJUSTED COST OF GOODS SOLD
|
|
$ |
60,220 |
|
|
$ |
62,069 |
|
|
$ |
128,977 |
|
|
$ |
128,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN, AS REPORTED
|
|
$ |
38,038 |
|
|
$ |
37,572 |
|
|
$ |
82,187 |
|
|
$ |
81,331 |
|
ADJUSTED GROSS MARGIN
|
|
$ |
38,038 |
|
|
$ |
39,295 |
|
|
$ |
82,187 |
|
|
$ |
83,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES, AS REPORTED
|
|
$ |
33,530 |
|
|
$ |
35,370 |
|
|
$ |
69,695 |
|
|
$ |
74,974 |
|
LESS: ACQUISITION-RELATED AMORTIZATION
|
|
|
(692 |
) |
|
|
(692 |
) |
|
|
(1,384 |
) |
|
|
(1,456 |
) |
LESS: RESTRUCTURING COSTS
|
|
|
- |
|
|
|
(1,034 |
) |
|
|
- |
|
|
|
(1,034 |
) |
ADJUSTED OPERATING EXPENSES
|
|
$ |
32,838 |
|
|
$ |
33,644 |
|
|
$ |
68,311 |
|
|
$ |
72,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME
|
|
$ |
5,200 |
|
|
$ |
5,651 |
|
|
$ |
13,876 |
|
|
$ |
10,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE AND OTHER – net, AS REPORTED
|
|
$ |
(6,131 |
) |
|
$ |
(5,630 |
) |
|
$ |
(10,785 |
) |
|
$ |
(10,294 |
) |
ADD: TERM LOAN FACILITY EXINGUISHMENT COSTS
|
|
|
2,597 |
|
|
|
- |
|
|
|
2,597 |
|
|
|
- |
|
LESS: GAIN ON SALE OF BUSINESS
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,341 |
) |
ADJUSTED INTEREST EXPENSE AND OTHER – net
|
|
|
(3,534 |
) |
|
|
(5,630 |
) |
|
|
(8,188 |
) |
|
|
(11,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME, AS REPORTED
|
|
$ |
(1,243 |
) |
|
$ |
(2,715 |
) |
|
$ |
1,308 |
|
|
$ |
(3,114 |
) |
TOTAL NON-GAAP ADJUSTMENTS
|
|
|
3,289 |
|
|
|
3,449 |
|
|
|
3,981 |
|
|
|
2,872 |
|
TAX IMPACT OF ADJUSTMENTS
|
|
|
(770 |
) |
|
|
(717 |
) |
|
|
(931 |
) |
|
|
(600 |
) |
ADJUSTED NET INCOME (LOSS)
|
|
$ |
1,276 |
|
|
$ |
17 |
|
|
$ |
4,358 |
|
|
$ |
(842 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME PER SHARE, AS REPORTED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$ |
(0.17 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.18 |
|
|
$ |
(0.42 |
) |
DILUTED
|
|
$ |
(0.17 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.18 |
|
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME (LOSS) PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$ |
0.17 |
|
|
$ |
- |
|
|
$ |
0.59 |
|
|
$ |
(0.11 |
) |
DILUTED
|
|
$ |
0.17 |
|
|
$ |
- |
|
|
$ |
0.58 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
7,429 |
|
|
|
7,354 |
|
|
|
7,423 |
|
|
|
7,350 |
|
DILUTED
|
|
|
7,429 |
|
|
|
7,354 |
|
|
|
7,466 |
|
|
|
7,350 |
|
Use of Non-GAAP Financial Measures
In addition to GAAP financial measures, we present the following non-GAAP financial measures: "non-GAAP adjusted operating expenses," "non-GAAP adjusted operating income," "non-GAAP adjusted interest expense and other income/(expense) - net," "non-GAAP adjusted net income," and "non-GAAP adjusted net income per share." Adjusted results exclude the impact of items that management believes affect the comparability or underlying business trends in our consolidated financial statements in the periods presented. We believe that these non-GAAP measures are useful to management and investors and other users of our consolidated financial statements as an additional tool for evaluating operating performance. We believe they also provide a useful baseline for analyzing trends in our operations.
Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. See "Reconciliation of GAAP Measures to Non-GAAP Measures" accompanying this press release.
Non-GAAP adjustment or measure
|
Definition
|
Usefulness to management and investors
|
Returns relating to supplier dispute |
Returns relating to supplier dispute consist of returns of product produced by a manufacturing supplier. |
We excluded these returns for calculating certain non-GAAP measures because these returns are inconsistent in size with our normal course of business and are unique to the on-going dispute with a manufacturing supplier. These adjustments facilitate a useful evaluation of our current operating performance and comparison to past operating performance and provide investors with additional means to evaluate net sales trends. |
Supplier dispute inventory adjustment |
Supplier dispute inventory adjustment consists of an inventory adjustment to cost of goods sold for product produced by a manufacturing supplier. |
We excluded this inventory adjustment to cost of goods sold for calculating certain non-GAAP measures because this adjustment is noncustomary and is unique to the on-going dispute with a manufacturing supplier. This adjustment facilitates a useful evaluation of our current operating performance and comparison to past operating performance and provides investors with additional means to evaluate net cost of goods sold trends. |
Acquisition-related amortization
|
Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as brands and customer relationships acquired in connection with the acquisition of the performance and lifestyle footwear business of Honeywell International Inc. Charges related to the amortization of these intangibles are recorded in operating expenses in our GAAP financial statements. Amortization charges are recorded over the estimated useful life of the related acquired intangible asset, and thus are generally recorded over multiple years.
|
We excluded amortization charges for our acquisition-related intangible assets for purposes of calculating certain non-GAAP measures because these charges are inconsistent in size and are significantly impacted by the valuation of our acquisition. These adjustments facilitate a useful evaluation of our current operating performance and comparison to past operating performance and provide investors with additional means to evaluate cost and expense trends.
|
Restructuring Costs |
Restructuring costs represent severance expenses associated with headcount reductions following the integration of the acquired performance and lifestyle footwear business of Honeywell International Inc. in 2022 and the sale of Servus in 2023. |
We excluded restructuring costs for purposes of calculating non-GAAP measures because these costs do not reflect our current operating performance. These adjustments facilitate a useful evaluation of our current operations performance and comparisons to past operating results and provide investors with additional means to evaluate expense trends. |
Term debt extinguishment costs |
Term debt extinguishment costs relate to the loss incurred on the extinguishment of debt during the second quarter 2024. The prepayment penalty associated with the early termination of the term debt, as well as the accelerated amortization of deferred financing fees of the term debt, was recorded as expense within Interest Expense and Other - net accompanying unaudited condensed consolidated financial statements. |
We excluded this cost for purposes of calculating non-GAAP measures because these costs do not reflect our current operating performance. This adjustment is a one-time cost for refinancing the term debt and is not reoccurring. This adjustment facilitates a useful evaluation of our current operations performance and comparisons to past operating results and provide investors with additional means to evaluate expense trends. |
Gain on sale of business |
Gain on sale of business relates to the sale of the brand Servus. This includes the disposal of non-financial assets and corresponding expenses relating to the sale of the brand along with assets held at our Rock Island manufacturing facility. |
We excluded the disposition of non-financial assets and related expenses for purposes of calculating certain non-GAAP measures because the gain does not accurately reflect our current operating performance and comparisons to past operating results and provide investors with additional means to evaluate cost trends. |
v3.24.2
Document And Entity Information
|
Jul. 30, 2024 |
Document Information [Line Items] |
|
Entity, Registrant Name |
ROCKY BRANDS, INC.
|
Document, Type |
8-K
|
Document, Period End Date |
Jul. 30, 2024
|
Entity, Incorporation, State or Country Code |
OH
|
Entity, File Number |
001-34382
|
Entity, Tax Identification Number |
31-1364046
|
Entity, Address, Address Line One |
39 East Canal Street
|
Entity, Address, City or Town |
Nelsonville
|
Entity, Address, State or Province |
OH
|
Entity, Address, Postal Zip Code |
45764
|
City Area Code |
740
|
Local Phone Number |
753-1951
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common Stock
|
Trading Symbol |
RCKY
|
Security Exchange Name |
NASDAQ
|
Entity, Emerging Growth Company |
false
|
Amendment Flag |
false
|
Entity, Central Index Key |
0000895456
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Rocky Brands (NASDAQ:RCKY)
過去 株価チャート
から 7 2024 まで 7 2024
Rocky Brands (NASDAQ:RCKY)
過去 株価チャート
から 7 2023 まで 7 2024