Selling, general and administrative (SG&A) expenses were $40.1 million, or 31.6 percent of sales compared to $10.7 million, or 21.7 percent of sales, a year ago. The increase was primarily a result of higher SG&A associated with the EJ Footwear business.
Income from operations increased to $9.8 million or 7.7 percent of net sales versus $2.7 million or 5.4 percent of net sales in the prior year.
Funded Debt and Interest Expense The Company's funded debt at June 30, 2005 was $110.7 million versus $22.0 million at June 30, 2004. The year-over-year increase was principally due to borrowings under the credit facility to fund the purchase of EJ Footwear. Interest expense increased to $2.1 million for the second quarter fiscal 2005, versus $0.3 million for same period last year, primarily due to the increase in borrowings.
Inventory Inventory increased to $85.4 million at June 30, 2005 compared with $38.6 million on the same date a year ago, primarily due to the acquisition of EJ Footwear.
Outlook The Company stated it remains comfortable with its previously issued guidance for fiscal 2005 of net sales in the range of $300 million to $305 million and earnings per share in the range of $2.55 to $2.65.
Brooks concluded, "As they head into the fall and winter selling seasons company believe they are well positioned to deliver continued success in the back half of the year. The entire team has worked extremely hard integrating the Rocky and EJ organizations and they are very encouraged by their progress to date.
-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)")
