Rocky Brands Q3 2024: Sales Flat, EPS Steady

TL;DR

Rocky Brands sales flat YoY at $74.5M, EPS $0.155. Servus brand sale impacts assets.

AI Summary

Rocky Brands, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported net sales of $74.49 million for the nine months ended September 30, 2024, compared to $74.12 million for the same period in 2023. Earnings per share were $0.155 for both periods. The company also noted the sale of the Servus brand in March 2023, which reduced its related trademarks by approximately $2.5 million.

Why It Matters

This filing provides insight into Rocky Brands' financial performance and strategic decisions, such as the sale of the Servus brand, which impacts their asset valuation and future revenue streams.

Risk Assessment

Risk Level: medium — The company's financial performance is sensitive to market conditions, and the sale of a brand can indicate strategic shifts or challenges.

Key Numbers

• $74.49M — Net Sales (9 months ended 09/30/2024) (Slight increase from $74.12M in the prior year period.)
• $0.155 — EPS (9 months ended 09/30/2024) (Consistent with the prior year period.)
• $2.5M — Servus Trademarks Reduction (Result of the sale of the Servus brand in March 2023.)

Key Players & Entities

• ROCKY BRANDS, INC. (company) — Filer
• 20240930 (date) — Reporting period end date
• $74.49 million (dollar_amount) — Net sales for the nine months ended September 30, 2024
• $74.12 million (dollar_amount) — Net sales for the nine months ended September 30, 2023
• $0.155 (dollar_amount) — Earnings per share for the nine months ended September 30, 2024 and 2023
• Servus (company) — Brand sold by Rocky Brands
• $2.5 million (dollar_amount) — Reduction in Servus trademarks due to sale
• $4.3 million (dollar_amount) — Customer relationships relating to the Servus brand

FAQ

Filing Documents

• rcky20240930_10q.htm (10-Q) — 1101KB
• ex_717833.htm (EX-31.1) — 13KB
• ex_717834.htm (EX-31.2) — 13KB
• ex_717835.htm (EX-32) — 6KB
• 0001437749-24-034368.txt ( ) — 5249KB
• rcky-20240930.xsd (EX-101.SCH) — 47KB
• rcky-20240930_cal.xml (EX-101.CAL) — 49KB
• rcky-20240930_def.xml (EX-101.DEF) — 288KB
• rcky-20240930_lab.xml (EX-101.LAB) — 243KB
• rcky-20240930_pre.xml (EX-101.PRE) — 318KB
• rcky20240930_10q_htm.xml (XML) — 877KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited), December 31, 2023, and September 30, 2023 (Unaudited) 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Shareholders ' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 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 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21 PART II Other Information Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 5. Other Information 21 Item 6. Exhibits 22

SIGNATURES

SIGNATURES 23 1 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS Rocky Brands, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except share amounts) (Unaudited) September 30, December 31, September 30, 2024 2023 2023 ASSETS: CURRENT ASSETS: Cash and cash equivalents $ 3,705 $ 4,470 $ 4,240 Trade receivables – net 77,130 77,028 97,844 Contract receivables - 927 2,990 Other receivables 177 1,933 2,207 Inventories – net 171,847 169,201 194,734 Income tax receivable - 1,253 2,445 Prepaid expenses 5,205 3,361 4,985 Total current assets 258,064 258,173 309,445 LEASED ASSETS 6,705 7,809 7,982 PROPERTY, PLANT & EQUIPMENT – net 50,380 51,976 53,124 GOODWILL 47,844 47,844 47,844 IDENTIFIED INTANGIBLES – net 110,521 112,618 113,321 OTHER ASSETS 1,503 965 1,015 TOTAL ASSETS $ 475,017 $ 479,385 $ 532,731 LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $ 63,148 $ 49,840 $ 62,733 Contract liabilities - 927 2,990 Current portion of long-term debt 8,361 2,650 2,704 Accrued expenses and other liabilities 20,845 18,112 21,275 Total current liabilities 92,354 71,529 89,702 LONG-TERM DEBT 141,929 170,480 211,190 LONG-TERM TAXES PAYABLE - 169 169 LONG-TERM LEASE 4,232 5,461 5,715 DEFERRED INCOME TAXES 7,475 7,475 8,006 DEFERRED LIABILITIES 777 716 1,179 TOTAL LIABILITIES 246,767 255,830 315,961 SHAREHOLDERS' EQUITY: Common stock, no par value; 25,000,000 shares authorized; issued and outstanding September 30, 2024 - 7,449,020 ; December 31, 2023 - 7,412,480 ; September 30, 2023 - 7,366,201 73,537 71,973 70,757 Retained earnings 154,713 151,582 146,013 Total shareholders' equity 228,250 223,555 216,770 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 475,017 $ 479,385 $ 532,731 See Notes to Unaudited Condensed Consolidated Financial Statements 2 Table of Contents Rocky Brands, Inc. and Subsidiaries Condensed Consolidat

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