Exhibit 99

 

  ROCKY BRANDS, INC.  
     
  Company Contact: Jim McDonald
    Chief Financial Officer
    (740) 753-1951
     
  Investor Relations: ICR, Inc.
    Brendon Frey
    (203) 682-8200

  

ROCKY BRANDS, INC. ANNOUNCES FIRST QUARTER 2013 RESULTS

Earnings Per Share Increased 20% to $0.12

Funded Debt Decreased 6% to $20.3 Million

 

 

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 equivalents  $1,865,887   $4,022,579   $2,424,864 
Trade receivables – net   42,329,436    44,555,057    38,587,112 
Other receivables   461,297    575,984    783,349 
Inventories   68,258,101    67,196,245    64,113,346 
Income tax receivable   1,077,092    -    947,575 
Deferred income taxes   1,252,030    1,252,030    1,154,040 
Prepaid expenses   2,903,410    2,127,726    2,842,105 
Total current assets   118,147,253    119,729,621    110,852,391 
FIXED ASSETS – net   24,465,470    24,252,465    24,572,535 
IDENTIFIED INTANGIBLES   30,490,800    30,498,802    30,498,545 
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 liabilities   15,078,035    14,294,460    15,900,883 
                
LONG TERM DEBT   20,252,298    23,461,340    21,512,650 
DEFERRED INCOME TAXES   11,148,333    11,148,333    10,987,395 
DEFERRED LIABILITIES   255,906    303,406    488,437 
                
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 - 7,503,568   69,862,770    69,694,770    69,694,770 
                
Retained earnings   56,834,423    55,942,106    47,808,028 
                
Total shareholders' equity   126,697,193    125,636,876    117,502,798 
                
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $173,431,765   $174,844,415   $166,392,163 

 

 

 
 

  

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