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Rocky Brands announces Q2 fiscal 2007 results
27 Jul '07
4 min read
Rocky Brands Inc announced financial results for its second quarter ended June 30, 2007.
For the second quarter of 2007, net sales increased 2.6% to $58.8 million versus net sales of $57.3 million in the second quarter of 2006. The Company reported a net loss of $1.4 million, or ($0.25) per diluted share versus a net loss of $0.2 million or ($0.04) per diluted share a year ago.
The net loss for the second quarter of 2007 includes a one time non-cash charge of approximately $0.8 million, or $0.09 per diluted share after tax, due to the required write off of prepaid financing costs related to the refinancing of its term loans as compared to a $0.4 million, or $0.05 per diluted share after tax, charge for a similar write off in second quarter 2006.
Mike Brooks, Chairman and Chief Executive Officer, commented, “Our second quarter performance was negatively impacted by weaker than expected wholesale revenues, partially offset by a double digit sales gain in our retail division."
"At the same time, an increase in production costs coupled with a greater level of closeouts further reduced our earnings compared with a year ago. We continue to be confident about our growth prospects during the back half of the year and we remain comfortable with our previously issued guidance for fiscal 2007.”
Military Contract:
The Company also announced it has received an order to fulfill a contract to the U.S. Military to produce “Hot Weather” boots for approximately $6.4 million. Shipment of the boots is expected to begin in late 2007 with an estimated completion date of late 2008. The contract includes the option for four additional years at the same amount.
Mike Brooks added, “We are very pleased to have received this order from the military which will allow us to better utilize our Company operated production facilities.”
Second Quarter Results:
Net sales for the second quarter increased to $58.8 million compared to $57.3 million a year ago. The increase in sales is primarily attributable to a 16.6% increase in retail revenues offset by a 2.7% decrease in wholesale sales.
Gross margin in the second quarter of 2007 was $23.9 million, or 40.7% of sales, compared to $24.1 million or 42.0% of sales, for the same period last year. The decline was primarily due to a decrease in sales of our western footwear, which carry higher gross margins, combined with higher production costs and an increase in closeout sales versus a year ago.
For the second quarter of 2007, net sales increased 2.6% to $58.8 million versus net sales of $57.3 million in the second quarter of 2006. The Company reported a net loss of $1.4 million, or ($0.25) per diluted share versus a net loss of $0.2 million or ($0.04) per diluted share a year ago.
The net loss for the second quarter of 2007 includes a one time non-cash charge of approximately $0.8 million, or $0.09 per diluted share after tax, due to the required write off of prepaid financing costs related to the refinancing of its term loans as compared to a $0.4 million, or $0.05 per diluted share after tax, charge for a similar write off in second quarter 2006.
Mike Brooks, Chairman and Chief Executive Officer, commented, “Our second quarter performance was negatively impacted by weaker than expected wholesale revenues, partially offset by a double digit sales gain in our retail division."
"At the same time, an increase in production costs coupled with a greater level of closeouts further reduced our earnings compared with a year ago. We continue to be confident about our growth prospects during the back half of the year and we remain comfortable with our previously issued guidance for fiscal 2007.”
Military Contract:
The Company also announced it has received an order to fulfill a contract to the U.S. Military to produce “Hot Weather” boots for approximately $6.4 million. Shipment of the boots is expected to begin in late 2007 with an estimated completion date of late 2008. The contract includes the option for four additional years at the same amount.
Mike Brooks added, “We are very pleased to have received this order from the military which will allow us to better utilize our Company operated production facilities.”
Second Quarter Results:
Net sales for the second quarter increased to $58.8 million compared to $57.3 million a year ago. The increase in sales is primarily attributable to a 16.6% increase in retail revenues offset by a 2.7% decrease in wholesale sales.
Gross margin in the second quarter of 2007 was $23.9 million, or 40.7% of sales, compared to $24.1 million or 42.0% of sales, for the same period last year. The decline was primarily due to a decrease in sales of our western footwear, which carry higher gross margins, combined with higher production costs and an increase in closeout sales versus a year ago.
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