Rocky Brands, Inc. Announces Fourth Quarter and Full Year 2023 Results
Rocky Brands, Inc. (NASDAQ: RCKY) reported a decrease in net sales for the fourth quarter and full year 2023. Despite challenges, the company saw improvements in operating income and net income. Debt levels and inventories decreased significantly, positioning the company for future growth.
Positive
Significant decrease in net sales for both fourth quarter and full year 2023
Operating income increased by 8.2% in the fourth quarter
Net income increased by 3.0% in the fourth quarter
Adjusted net income decreased by 8.3% in the fourth quarter
Debt levels decreased by $83.8 million or 32.6%
Inventories decreased by $66.2 million or 28.1%
Negative
Net income decreased by 49.1% for the full year 2023
Adjusted net income decreased by 40.8% for the full year 2023
Significant decrease in Wholesale segment sales for both fourth quarter and full year 2023
Contract Manufacturing segment sales decreased by 48.4% for the full year 2023
The reduction in year-end inventories and debt levels for Rocky Brands, Inc. indicates a strategic approach to strengthen the company's balance sheet. A 28.1% decrease in inventories suggests efficient inventory management, potentially leading to reduced holding costs and improved cash flow. The 32.6% reduction in debt is significant, as it may lower interest expenses and enhance financial flexibility. However, the 25% drop in net sales and the 49.1% decline in net income for the full year are concerning and may reflect challenges in market demand or operational efficiency.
It is noteworthy that despite the revenue downturn, the company achieved a 230-basis point improvement in gross margin , primarily due to a higher mix of retail sales with better margins. This strategic shift towards more profitable segments could be a positive indicator for future profitability. Furthermore, the company's focus on operational efficiencies, as evidenced by the reduction in operating expenses, may contribute to a leaner cost structure going forward.
The performance of Rocky Brands, Inc. in the context of the retail industry reveals a mixed picture. The increase in operating income by 8.2% in Q4 despite a sales decrease suggests the company has been successful in cost-saving measures. However, the decrease in wholesale segment sales by 30.5% for the full year raises questions about the company's competitive position and wholesale strategy.
The retail segment's modest growth contrasts with the decline in wholesale and contract manufacturing, indicating resilience in direct-to-consumer channels. This trend aligns with the broader industry's pivot towards e-commerce and direct sales. The company's acknowledgement of solid consumer demand for their brands, despite inventory rebalancing by wholesale accounts, underscores the importance of maintaining brand strength and consumer loyalty in a competitive landscape.
The substantial decrease in debt for Rocky Brands, Inc. is a positive signal to debt market stakeholders. A 32.6% reduction in total debt implies a lower risk profile and may lead to improved credit ratings. The decrease in interest expense in Q4 2023, despite higher interest rates, reflects the company's proactive debt management. However, the increase in the effective tax rate to 29.0% in Q4 from 16.1% the previous year could impact net income and cash flows, which are critical factors for assessing the company's ability to service its debt.
Investors in the debt market should also consider the company's strategic initiatives and their potential to drive profitable growth, as stated by the CEO. If these initiatives translate into improved operational performance, they could further enhance the company's debt repayment capabilities and financial health.
02/28/2024 - 04:05 PM
2023 Year-end Inventories down $66.2 Million or 28.1% and Debt Levels down $83.8 Million or 32.6%
NELSONVILLE, Ohio --(BUSINESS WIRE)--
Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its fourth quarter and year ended December 31, 2023.
Fourth Quarter 2023 Overview
Net sales decreased 9.3% to $126.0 million
Wholesale segment sales decreased 13.3% ; Retail segment sales increased 1.5%
Operating income increased 8.2% to $14.7 million
Net income increased 3.0% to $6.7 million , or $0.91 per diluted share
Adjusted net income decreased 8.3% to $7.3 million , or $0.98 per diluted share
Full Year 2023 Overview
Net sales decreased 25.0% to $461.8 million
Wholesale segment sales decreased 30.5% ; Retail segment sales increased 1.4%
Operating income decreased 19.7% to $35.4 million
Net income decreased 49.1% to $10.4 million , or $1.41 per diluted share
Adjusted net income decreased 40.8% to $14.3 million , or $1.93 per diluted share
"We are encouraged with our fourth quarter performance as we navigated top-line headwinds and delivered operating income that was ahead of our expectations," said Jason Brooks, Chairman, President and Chief Executive Officer. "Despite market softness towards the end of December, the late arrival of certain materials that pushed back our manufacturing and shipment schedules, and the transition to a distributor model in Canada in early November, net sales improved from the third quarter with year-over-year declines moderating to their lowest levels in 2023."
Mr. Brooks continued, "While it was a challenging year from a sell-in perspective as many of our wholesale accounts worked to rebalance their overall inventory levels, retail sell-through and the performance of our own ecommerce websites underscores that consumer demand for our brands remains solid. Equally important, we made great progress strengthening our balance sheet throughout 2023 highlighted by a $66.2 million reduction in inventories and an $83.8 million decline in our debt levels compared with the end of 2022. This work has put us in a great position to invest in our business to drive profitable growth and increased shareholder value over the near and long-term."
Fourth Quarter Review
Fourth quarter net sales in 2023 decreased 9.3% to $126.0 million compared with $138.9 million in the fourth quarter of 2022. Wholesale segment sales for the fourth quarter of 2023 decreased 13.3% to $85.8 million compared to $98.9 million for the same period in 2022. Retail segment sales for the fourth quarter of 2023 increased 1.5% to $37.8 million compared to $37.3 million for the same period last year. Contract Manufacturing segment sales, which include contract military sales and private label programs, decreased 14.9% to $2.3 million for the fourth quarter of 2023 compared to $2.7 million in the fourth quarter of 2022. The decrease in Contract Manufacturing sales was due to the expiration of certain contracts with the U.S. Military.
Gross margin in the fourth quarter of 2023 was $50.7 million , or 40.3% of net sales, compared to $56.7 million , or 40.8% of net sales, for the same period last year. The 50-basis point decrease in gross margin was attributable to a tariff refund with a net impact of approximately $2.4 million received in the fourth quarter 2022 partially offset by a higher mix of Retail segment sales in the fourth quarter of 2023, which carry higher gross margins than the Wholesale and Contract Manufacturing segments.
Operating expenses were $36.0 million , or 28.6% of net sales, for the fourth quarter of 2023 compared to $43.1 million , or 31.0% of net sales, for the same period a year ago. Excluding $0.7 million of acquisition-related amortization expense and $0.1 million of expenses related to the closure of a manufacturing facility in the fourth quarter of 2023 and $1.7 million in acquisition-related amortization and restructuring costs in the fourth quarter of 2022, adjusted operating expenses were $35.2 million for the fourth quarter of 2023 and $41.4 million for the same period a year ago. The decrease in operating expenses was largely attributable to cost-saving reviews and operational efficiencies achieved through strategic restructuring initiatives implemented over the past year. As a percentage of net sales, adjusted operating expenses were 27.9% in the fourth quarter of 2023 compared with 29.8% in the year ago period.
Income from operations for the fourth quarter of 2023 was $14.7 million , or 11.7% of net sales, compared to $13.6 million or 9.8% of net sales for the same period a year ago. Adjusted operating income for the fourth quarter of 2023 was $15.5 million , or 12.3% of net sales, compared to adjusted operating income of $15.3 million , or 11.0% of net sales, for the same period a year ago.
Interest expense for the fourth quarter of 2023 was $5.3 million compared with $5.9 million a year ago. The decrease was driven by lower debt levels in the fourth quarter of 2023 compared with the fourth quarter of 2022.
The effective tax rate for the fourth quarter of 2023 increased to 29.0% compared to 16.1% a year ago. The year-over-year increase, which was higher than initially projected, was driven primarily by a return to provision adjustment resulting from foreign tax credits recognized in the fourth quarter of 2023.
The Company reported fourth quarter 2023 net income of $6.7 million , or $0.91 per diluted share, compared to net income of $6.5 million , or $0.89 per diluted share, in the fourth quarter of 2022. Adjusted net income for the fourth quarter of 2023, was $7.3 million , or $0.98 per diluted share, compared to adjusted net income of $7.9 million , or $1.08 per diluted share, in the fourth quarter of 2022.
Full Year Review
Full year 2023 net sales decreased 25.0% to $461.8 million compared with $615.5 million in 2022. Adjusted net sales, which exclude returns associated with a supplier-related dispute in the second quarter of 2023 and the sale of inventory related to the divesture of the NEOS brand during the third quarter of 2022, decreased 24.3% . Wholesale segment sales for 2023 decreased 30.5% to $337.0 million compared to $484.8 million in 2022. Retail segment sales for the year increased 1.4% to $117.0 million compared to $115.4 million for the same period last year. Contract Manufacturing segment sales, which includes contract military sales and private label programs, decreased 48.4% to $7.9 million compared to $15.3 million in 2022.
Gross margin in 2023 was $178.6 million , or 38.7% of net sales, compared to $225.2 million , or 36.6% of net sales, for 2022. On an adjusted basis to exclude returns associated with a supplier-related dispute in the second quarter of 2023 and the sale of inventory related to the divesture of the NEOS brand in the third quarter of 2022, gross margins were 38.9% of adjusted net sales in 2023 compared to 36.6% of adjusted net sales in 2022. The 230-basis point improvement in gross margin was driven primarily by a higher mix of Retail segment sales which carry higher gross margins than the Wholesale and Contract Manufacturing segments, combined with a 140-basis point improvement in Wholesale segment gross margins.
Operating expenses were $143.2 million , or 31.0% of net sales, for 2023 compared to $181.2 million , or 29.4% of net sales, for 2022. Excluding $4.8 million of acquisition-related amortization expense, expenses related to the closure of a manufacturing facility and restructuring costs in 2023 and $5.7 million of acquisition-related amortization and integration costs, restructuring costs and disposition of assets in 2022, adjusted operating expenses were $138.4 million , or 29.9% of adjusted net sales in the current year and $175.5 million , or 28.7% of adjusted net sales in the prior year.
Income from operations for 2023 was $35.4 million , or 7.7% of net sales, compared to $44.0 million or 7.2% of net sales for 2022. Adjusted operating income for 2023 was $41.9 million , or 9.0% of adjusted net sales, compared to adjusted operating income of $48.6 million , or 7.9% of adjusted net sales, a year ago.
Interest expense for 2023 was $22.7 million compared with $18.3 million in 2022. The increase is due to an increase in interest rates on the senior term loan and credit facility, partially offset by lower debt levels in 2023 compared with 2022.
The effective tax rate for 2023 increased to 26.3% compared to 20.6% for the full year 2022 driven largely by the aforementioned return to provision adjustment resulting from foreign tax credits recognized in the fourth quarter of 2023.
The Company reported 2023 net income of $10.4 million , or $1.41 per diluted share, compared to net income of $20.5 million , or $2.78 per diluted share, in 2022. Adjusted net income for 2023 was $14.3 million , or $1.93 per diluted share, compared to adjusted net income of $24.1 million , or $3.27 per diluted share, in 2022.
Balance Sheet Review
Cash and cash equivalents were $4.5 million at December 31, 2023 compared to $5.7 million on the same date a year ago.
Total debt at December 31, 2023 was $175.0 million , consisting of $77.9 million senior term loan and $97.1 million of borrowings under the Company's senior secured asset-backed credit facility. Compared with December 31, 2022 and September 30, 2023, total debt at December 31, 2023 was down 32.6% and 19.1% , respectively.
Inventory at December 31, 2023 was $169.2 million compared to $235.4 million on the same date a year ago. Compared with December 31, 2022 and September 30, 2023, inventories at December 31, 2023 were down 28.1% and 13.1% , respectively.
Conference Call Information
The Company's conference call to review fourth quarter 2023 results will be broadcast live over the internet today, Wednesday, February 28, 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 ability of the Company to invest in its business to drive profitable growth and increase shareholder value over the near and long-term (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, 2022 (filed March 10, 2023), and quarterly reports on Form 10-Q for the quarters ended March 31, 2023 (filed May 10, 2023), June 30, 2023 (filed August 9, 2023) and September 30, 2023 (filed November 8, 2023). 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.
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
December 31,
December 31,
2023
2022
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents
$
4,470
$
5,719
Trade receivables – net
77,028
94,953
Contract receivables
927
-
Other receivables
1,933
908
Inventories – net
169,201
235,400
Income tax receivable
1,253
-
Prepaid expenses
3,361
4,067
Total current assets
258,173
341,047
LEASED ASSETS
7,809
11,014
PROPERTY, PLANT & EQUIPMENT – net
51,976
57,359
GOODWILL
47,844
50,246
IDENTIFIED INTANGIBLES – net
112,618
121,782
OTHER ASSETS
965
942
TOTAL ASSETS
$
479,385
$
582,390
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable
$
49,840
$
69,686
Contract liabilities
927
-
Current Portion of Long-Term Debt
2,650
3,250
Accrued expenses:
Salaries and wages
1,204
1,253
Taxes – other
925
1,325
Accrued freight
2,284
2,413
Commissions
904
1,934
Accrued duty
5,440
6,764
Accrued interest
2,104
2,822
Income tax payable
-
1,172
Other
5,251
5,675
Total current liabilities
71,529
96,294
LONG-TERM DEBT
170,480
253,646
LONG-TERM TAXES PAYABLE
169
169
LONG-TERM LEASE
5,461
8,216
DEFERRED INCOME TAXES
7,475
8,006
DEFERRED LIABILITIES
716
586
TOTAL LIABILITIES
255,830
366,917
SHAREHOLDERS' EQUITY:
Common stock, no par value;
25,000,000 shares authorized; issued and outstanding December 31, 2023 - 7,412,480; December 31, 2022 - 7,339,011
71,973
69,752
Retained earnings
151,582
145,721
Total shareholders' equity
223,555
215,473
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
479,385
$
582,390
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
NET SALES
$
125,952
$
138,926
$
461,833
$
615,475
COST OF GOODS SOLD
75,223
82,214
283,235
390,256
GROSS MARGIN
50,729
56,712
178,598
225,219
OPERATING EXPENSES
35,993
43,092
143,226
181,181
INCOME FROM OPERATIONS
14,736
13,620
35,372
44,038
INTEREST EXPENSE AND OTHER – net
(5,276
)
(5,859
)
(21,218
)
(18,270
)
INCOME BEFORE INCOME TAX EXPENSE
9,460
7,761
14,154
25,768
INCOME TAX EXPENSE
2,748
1,246
3,728
5,303
NET INCOME
$
6,712
$
6,515
$
10,426
$
20,465
INCOME PER SHARE
Basic
$
0.91
$
0.89
$
1.42
$
2.80
Diluted
$
0.91
$
0.89
$
1.41
$
2.78
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic
7,385
7,329
7,363
7,317
Diluted
7,405
7,345
7,381
7,369
Rocky Brands, Inc. and Subsidiaries
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands, except share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
NET SALES
NET SALES, AS REPORTED
$
125,952
$
138,926
$
461,833
$
615,475
ADD: RETURNS RELATING TO SUPPLIER DISPUTE
-
-
1,542
-
LESS: DISPOSITION OF INVENTORY ASSETS
-
-
-
(3,569
)
ADJUSTED NET SALES
$
125,952
$
138,926
$
463,375
$
611,906
COST OF GOODS SOLD
COST OF GOODS SOLD, AS REPORTED
$
75,223
$
82,214
$
283,235
$
390,256
LESS: SUPPLIER DISPUTE INVENTORY ADJUSTMENT
-
-
(181
)
-
LESS: DISPOSITION OF INVENTORY ASSETS
-
-
-
(2,444
)
ADJUSTED COST OF GOODS SOLD
$
75,223
$
82,214
$
283,054
$
387,812
GROSS MARGIN
GROSS MARGIN, AS REPORTED
$
50,729
$
56,712
$
178,598
$
225,219
ADJUSTED GROSS MARGIN
$
50,729
$
56,712
$
180,321
$
224,094
OPERATING EXPENSES
OPERATING EXPENSES, AS REPORTED
$
35,993
$
43,092
$
143,226
$
181,181
LESS: ACQUISITION-RELATED AMORTIZATION
(692
)
(764
)
(2,840
)
(3,110
)
LESS: DISPOSITION OF ASSETS
-
-
-
(33
)
LESS: CLOSURE OF MANUFACTURING FACILITY
(100
)
-
(498
)
-
LESS: ACQUISITION-RELATED INTEGRATION EXPENSES
-
-
-
(397
)
LESS: RESTRUCTURING COSTS
-
(927
)
(1,486
)
(2,128
)
ADJUSTED OPERATING EXPENSES
$
35,201
$
41,401
$
138,402
$
175,513
INCOME FROM OPERATIONS, ADJUSTED
$
15,528
$
15,311
$
41,919
$
48,581
INTEREST EXPENSE AND OTHER – net, AS REPORTED
$
(5,276
)
$
(5,859
)
$
(21,218
)
$
(18,270
)
LESS: GAIN ON SALE OF BUSINESS
-
-
(1,341
)
-
ADJUSTED INTEREST EXPENSE AND OTHER – net
(5,276
)
(5,859
)
(22,559
)
(18,270
)
NET INCOME
NET INCOME, AS REPORTED
$
6,712
$
6,515
$
10,426
$
20,465
TOTAL NON-GAAP ADJUSTMENTS
792
1,691
5,206
4,543
TAX IMPACT OF ADJUSTMENTS
(230
)
(271
)
(1,371
)
(935
)
ADJUSTED NET INCOME
$
7,274
$
7,935
$
14,261
$
24,073
NET INCOME PER SHARE, AS REPORTED
BASIC
$
0.91
$
0.89
$
1.42
$
2.80
DILUTED
$
0.91
$
0.89
$
1.41
$
2.78
ADJUSTED NET INCOME PER SHARE
BASIC
$
0.98
$
1.08
$
1.94
$
3.29
DILUTED
$
0.98
$
1.08
$
1.93
$
3.27
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC
7,385
7,329
7,363
7,317
DILUTED
7,405
7,345
7,381
7,369
Use of Non-GAAP Financial Measures
In addition to GAAP financial measures, we present the following non-GAAP financial measures: "adjusted net sales," "adjusted cost of goods sold," "adjusted gross margin," "adjusted operating expenses," "adjusted operating income" (or "income from operations, adjusted")," "adjusted net income," and "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 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
Disposition of Inventory Assets
Disposition of inventory assets relating to the sale of inventory and related cost of goods sold in connection with the divesture of the NEOS brand.
We exclude the disposition of inventory assets for purposes of calculating certain non-GAAP measures because the sale and related cost of goods sold does not reflect our normal business operations. These adjustments facilitate a useful evaluation of our current operating performance and comparisons to past operating results and provide investors with additional means to evaluate cost trends.
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 the 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 the 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.
Disposition of Assets
Disposition of fixed assets relating disposals of non-financial assets. This includes the disposal of non-financial assets and corresponding expenses related to the divesture of the NEOS brand and other long-lived assets at our manufacturing facilities.
We exclude the disposition of non-financial assets and related expenses for purposes of calculating certain non-GAAP measures because the loss does not accurately reflect our current operating performance and comparisons to past operating results and provide investors with additional means to evaluate cost trends.
Acquisition-related integration expenses
Acquisition-related integration expenses are expenses including investment banking fees, legal fees, transaction fees, integration costs and consulting fees tied to the acquisition of the performance and lifestyle footwear business of Honeywell International Inc.
We excluded acquisition-related expenses for purposes of calculating certain non-GAAP measures because the charges do not accurately reflect our current operating performance and comparisons to past operating results and provide investors with additional means to evaluate cost 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 the Servus Brand 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.
Closure of Manufacturing Facility
Closure of manufacturing facility relates to the expenses and overhead incurred associated with closing our Rock Island manufacturing facility.
We exclude costs associated with the closure of our manufacturing facility 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 comparison 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 Servus brand. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228101632/en/
Company:
Tom Robertson
Chief Operating Officer, Chief Financial Officer, and Treasurer
(740) 753-9100
Investor Relations:
Brendon Frey
ICR, Inc.
(203) 682-8200
Source: Rocky Brands, Inc.
What is the ticker symbol for Rocky Brands, Inc.?
The ticker symbol for Rocky Brands, Inc. is RCKY.
How much did inventories decrease by in 2023?
Inventories decreased by $66.2 million or 28.1% in 2023.
What was the decrease in debt levels in 2023?
Debt levels decreased by $83.8 million or 32.6% in 2023.
What was the percentage decrease in net sales for full year 2023?
Net sales decreased by 25.0% to $461.8 million in full year 2023.
How did operating income change in the fourth quarter of 2023?
Operating income increased by 8.2% to $14.7 million in the fourth quarter of 2023.
What was the change in adjusted net income for the fourth quarter of 2023?
Adjusted net income decreased by 8.3% to $7.3 million in the fourth quarter of 2023.
What was the change in Wholesale segment sales for full year 2023?
Wholesale segment sales decreased by 30.5% to $337.0 million in full year 2023.
How did Contract Manufacturing segment sales change in 2023?
Contract Manufacturing segment sales decreased by 48.4% to $7.9 million in 2023.