Rocky Brands, Inc. Announces Fourth Quarter and Full Year 2023 Results
- 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%
- 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
Insights
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.
2023 Year-end Inventories down
Fourth Quarter 2023 Overview
-
Net sales decreased
9.3% to$126.0 million
-
Wholesale segment sales decreased
13.3% ; Retail segment sales increased1.5%
-
Operating income increased
8.2% to$14.7 million
-
Net income increased
3.0% to$6.7 million $0.91
-
Adjusted net income decreased
8.3% to$7.3 million $0.98
Full Year 2023 Overview
-
Net sales decreased
25.0% to$461.8 million
-
Wholesale segment sales decreased
30.5% ; Retail segment sales increased1.4%
-
Operating income decreased
19.7% to$35.4 million
-
Net income decreased
49.1% to$10.4 million $1.41
-
Adjusted net income decreased
40.8% to$14.3 million $1.93
"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
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
Fourth Quarter Review
Fourth quarter net sales in 2023 decreased
Gross margin in the fourth quarter of 2023 was
Operating expenses were
Income from operations for the fourth quarter of 2023 was
Interest expense for the fourth quarter of 2023 was
The effective tax rate for the fourth quarter of 2023 increased to
The Company reported fourth quarter 2023 net income of
Full Year Review
Full year 2023 net sales decreased
Gross margin in 2023 was
Operating expenses were
Income from operations for 2023 was
Interest expense for 2023 was
The effective tax rate for 2023 increased to
The Company reported 2023 net income of
Balance Sheet Review
Cash and cash equivalents were
Total debt at December 31, 2023 was
Inventory at December 31, 2023 was
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.
FAQ
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