Rocky Brands, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Rocky Brands, Inc. reported Q1 2024 financial results, with total assets of $169.2M and total debt of $224.1M.</b>

AI Summary

ROCKY BRANDS, INC. (RCKY) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Rocky Brands, Inc. reported Q1 2024 results. Total assets were $169,201,000 as of March 31, 2024. Total debt was $224,124,000 as of March 31, 2024. Revenue for the period was $74,175,460. Net income for the period was $7,412,480.

Why It Matters

For investors and stakeholders tracking ROCKY BRANDS, INC., this filing contains several important signals. The filing details the financial health and operational performance of Rocky Brands, Inc. for the first quarter of 2024, providing insights into revenue, net income, and asset/debt levels. Information on the sale of the Servus brand in March 2023 is noted, with related intangible assets and amortization reduced to zero.

Risk Assessment

Risk Level: medium — ROCKY BRANDS, INC. shows moderate risk based on this filing. The company has a significant amount of debt ($224.1M) compared to its total assets ($169.2M), indicating potential financial leverage risks.

Analyst Insight

Investors should monitor the company's debt management strategies and revenue growth to assess its ability to service its debt obligations.

Financial Highlights

revenue

74,175,460

total Assets

169,201,000

total Debt

224,124,000

net Income

7,412,480

eps

0.155

Key Numbers

• 74,175,460 — Revenue (Q1 2024)
• 7,412,480 — Net Income (Q1 2024)
• 169,201,000 — Total Assets (March 31, 2024)
• 224,124,000 — Total Debt (March 31, 2024)
• 0.155 — EPS (Q1 2024)

Key Players & Entities

• ROCKY BRANDS, INC. (company) — FILER
• OH (location) — STATE OF INCORPORATION
• NELSONVILLE (location) — CITY
• Servus (brand) — Servus trademarks

FAQ

Risk Factors

• Sale of Servus Brand [low — financial]: The company reduced intangible assets, including Servus trademarks ($2.5M) and customer relationships ($4.3M), to zero in March 2023 due to the sale of the Servus brand.

Key Dates

• 2024-03-31: Quarter End — Reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was filed with the SEC.
• 2023-03-30: Servus Brand Sale — Date of the sale of the Servus brand, impacting intangible assets.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a snapshot of the company's financial performance and condition during the quarter.)

Intangible Assets

Assets that lack physical substance, such as trademarks and customer relationships. (Their valuation and amortization are important indicators of past acquisitions and brand value.)

Filing Documents

• rcky20240331_10q.htm (10-Q) — 772KB
• ex_648070.htm (EX-31.1) — 13KB
• ex_648071.htm (EX-31.2) — 13KB
• ex_648072.htm (EX-32) — 6KB
• logo.jpg (GRAPHIC) — 9KB
• 0001437749-24-015744.txt (&nbsp;) — 4419KB
• rcky-20240331.xsd (EX-101.SCH) — 45KB
• rcky-20240331_cal.xml (EX-101.CAL) — 37KB
• rcky-20240331_def.xml (EX-101.DEF) — 304KB
• rcky-20240331_lab.xml (EX-101.LAB) — 229KB
• rcky-20240331_pre.xml (EX-101.PRE) — 328KB
• rcky20240331_10q_htm.xml (XML) — 611KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited), December 31, 2023, and March 31, 2023 (Unaudited) 2 Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Shareholders' Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 4.

Controls and Procedures

Controls and Procedures 17 PART II Other Information Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 5. Other Information 17 Item 6. Exhibits 18

SIGNATURES

SIGNATURES 19 1 Table of Contents PART 1 – FINANCIAL INFORMATION

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS Rocky Brands, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except share amounts) (Unaudited) March 31, December 31, March 31, 2024 2023 2023 ASSETS: CURRENT ASSETS: Cash and cash equivalents $ 3,059 $ 4,470 $ 4,946 Trade receivables – net 70,662 77,028 73,650 Contract receivables - 927 - Other receivables 1,913 1,933 2,235 Inventories – net 165,129 169,201 224,124 Income tax receivable 538 1,253 - Prepaid expenses 6,037 3,361 5,619 Total current assets 247,338 258,173 310,574 LEASED ASSETS 7,139 7,809 10,153 PROPERTY, PLANT & EQUIPMENT – net 51,305 51,976 54,666 GOODWILL 47,844 47,844 47,844 IDENTIFIED INTANGIBLES – net 111,919 112,618 114,716 OTHER ASSETS 982 965 1,028 TOTAL ASSETS $ 466,527 $ 479,385 $ 538,981 LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $ 53,479 $ 49,840 $ 66,783 Contract liabilities - 927 - Current portion of long-term debt 2,650 2,650 2,823 Accrued expenses: Salaries and wages 1,774 1,204 1,816 Taxes – other 523 925 857 Accrued freight 2,193 2,284 2,098 Commissions 657 904 706 Accrued duty 5,867 5,440 6,642 Accrued interest 1,979 2,104 2,311 Income tax payable - - 1,052 Other 5,626 5,251 5,902 Total current liabilities 74,748 71,529 90,990 LONG-TERM DEBT 153,302 170,480 216,973 LONG-TERM TAXES PAYABLE 169 169 169 LONG-TERM LEASE 4,801 5,461 7,501 DEFERRED INCOME TAXES 7,475 7,475 8,006 DEFERRED LIABILITIES 737 716 1,053 TOTAL LIABILITIES 241,232 255,830 324,692 SHAREHOLDERS' EQUITY: Common stock, no par value; 25,000,000 shares authorized; issued and outstanding March 31, 2024 - 7,417,546 ; December 31, 2023 - 7,412,480 ; March 31, 2023 - 7,346,650 72,312 71,973 70,107 Retained earnings 152,983 151,582 144,182 Total shareholders' equity 225,295 223,555 214,289 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 466,527 $ 479,385

View Full Filing

View this 10-Q filing on SEC EDGAR