Wholesale business yields positive results, Rocky Brands
Rocky Brands Inc announced financial results for its fourth quarter and fiscal year ended December 31, 2011. The Company reported fourth quarter net income of $0.3 million, or $0.04 per diluted share, including a one-time, non-operational charge of $3.7 million, net of tax, associated with the termination of its defined benefit pension plan (as disclosed in our third quarter earnings release dated October 26, 2011).
Excluding the charge, net income was $3.9 million, or $0.52 per diluted share versus net income of $3.0 million, or $0.41 per diluted share, for the fourth quarter of 2010.
Fourth quarter net sales were $64.0 million versus net sales of $66.7 million a year ago. The decrease in sales was due to reduced sales under military contracts and the discontinuation of the Dickies license which expired December 31, 2010. Fourth quarter included military segment sales of $0.4 million versus $1.8 million in the fourth quarter a year ago and no sales from the discontinued Dickies license versus $1.9 million in the prior year. These decreases were partially offset by increased sales from other product lines in our wholesale business.
The Company reported net income of $8.3 million, or $1.11 per diluted share, for fiscal year 2011, including the $3.7 million, net of tax, charge associated with the termination of the defined benefit pension plan record in the fourth quarter. Excluding this charge, fiscal year 2011 net income was $12.0 million, or $1.60 per diluted share versus net income of $7.7 million, or $1.14 per diluted share, for fiscal year 2010.
For fiscal year 2011, net sales were $239.6 million versus net sales of $252.8 million in fiscal year 2010. Fiscal year 2011 included military segment sales of $2.2 million versus $17.0 million in fiscal year 2010 and sales from the discontinued Dickies license of $0.2 million versus $7.6 million in the prior year. These decreases were partially offset by increased sales from other product lines in our wholesale business.
“Our fourth quarter operating performance represents a solid finish to a productive year,” commented David Sharp, President and Chief Executive Officer. “The strategic initiatives aimed at growing our core wholesale business yielded positive results as the year progressed and provide us with good momentum to begin 2012. At the same time our retail division hit an important inflection point during the second half of the year.
Sales via our internet / direct ship model surpassed our legacy mobile store platform which helped drive operating profits in both the third and fourth quarters. We are confident the wholesale and retail trends we experienced in 2011 will continue to benefit our future results. In addition, the new strategies we've implemented to extend our brands into new categories and new channels of distribution are gaining traction.”
Net sales for the fourth quarter were $64.0 million compared to $66.7 million a year ago. Wholesale sales for the fourth quarter were $51.7 million compared to $52.5 million for the same period in 2010. Retail sales for the fourth quarter were $11.8 million compared to $12.4 million for the same period last year. Military segment sales for the fourth quarter were $0.4 million compared to $1.8 million in the same period in 2010.