Interviews
News Flash
Rocky Brands reports Q2 loss on weak sales
29 Jul '06
3 min read
Footwear maker Rocky Brands Inc has announced financial results for the second quarter and six month period ended June 30, 2006.
For the three months ended June 30, 2006, net sales decreased 12.5% to $57.3 million compared to $65.5 million for the corresponding period a year ago. It is important to note that the second quarter of 2005 included approx. $5.8 million of footwear sales to the military compared to zero footwear sales to the military in the second quarter of 2006.
The company reported a net loss of $0.2 million, or ($0.04) per diluted share versus net income of $2.8 million, or $0.50 per diluted share a year ago. The net loss for the second quarter includes approx. $0.1 million, or $0.02 per diluted share, in stock compensation expense required by current accounting standards compared with no stock compensation expense in the second quarter of 2005.
The second quarter net loss also included a one time charge of approx. $0.4 million, or $0.05 per diluted share after tax, due to the refinancing of the company's January 2005 $30 term million term loan and the required write off of prepaid financing charges incurred in the January 2005 financing. It reported the refinancing of the term loan with American Capital Strategies and GMAC Commercial Finance in a Current Report on Form 8-K, which was filed with the Securities and Exchange Commission on July 5, 2006.
Mike Brooks, Chairman and CEO of Rocky Brands, stated "Our second quarter results were disappointing, particularly the performance of our outdoor footwear and apparel. While we have reduced our outlook for this business, we continue to believe it can be a meaningful contributor to our future and we are exploring ways to reverse the current trends of this category. Importantly, our work and western footwear continues to benefit from the cross-selling opportunities created by the integration of our sales forces and we are focused on further leveraging all of our retail relationships going forward."
For the three months ended June 30, 2006, net sales decreased 12.5% to $57.3 million compared to $65.5 million for the corresponding period a year ago. It is important to note that the second quarter of 2005 included approx. $5.8 million of footwear sales to the military compared to zero footwear sales to the military in the second quarter of 2006.
The company reported a net loss of $0.2 million, or ($0.04) per diluted share versus net income of $2.8 million, or $0.50 per diluted share a year ago. The net loss for the second quarter includes approx. $0.1 million, or $0.02 per diluted share, in stock compensation expense required by current accounting standards compared with no stock compensation expense in the second quarter of 2005.
The second quarter net loss also included a one time charge of approx. $0.4 million, or $0.05 per diluted share after tax, due to the refinancing of the company's January 2005 $30 term million term loan and the required write off of prepaid financing charges incurred in the January 2005 financing. It reported the refinancing of the term loan with American Capital Strategies and GMAC Commercial Finance in a Current Report on Form 8-K, which was filed with the Securities and Exchange Commission on July 5, 2006.
Mike Brooks, Chairman and CEO of Rocky Brands, stated "Our second quarter results were disappointing, particularly the performance of our outdoor footwear and apparel. While we have reduced our outlook for this business, we continue to believe it can be a meaningful contributor to our future and we are exploring ways to reverse the current trends of this category. Importantly, our work and western footwear continues to benefit from the cross-selling opportunities created by the integration of our sales forces and we are focused on further leveraging all of our retail relationships going forward."
Popular News
Leave your Comments
Editor’s Pick
Christian Guinet
French Textile Equipment Manufacturers’ Association (UCMTF)
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
