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Rocky Brands, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $114.6 million from $125.6 million in the same quarter the previous year. This decrease is attributed to a decline in Wholesale net sales, partially offset by increases in Retail and Contract Manufacturing net sales.
Gross margin for the quarter increased to 38.1% from 37.0% in the previous year, driven by a favorable Wholesale product mix and a higher percentage of Retail net sales.
Operating expenses for the quarter were $33.6 million, representing 29.3% of net sales, compared to 25.7% in the same quarter of the previous year. The increase is primarily due to brand building and advertising programs.
Income from operations for the quarter was $10.1 million, down from $14.3 million in the previous year, primarily due to decreased net sales and increased operating expenses.
Interest expense and other net costs decreased to $3.2 million from $5.6 million, attributed to lower debt levels and interest rates following a debt refinance.
Net income for the quarter was $5.3 million, compared to $6.8 million in the previous year. The effective tax rate increased to 23.4% from 20.9%, driven by a shift in the mix of domestic and foreign earnings.
Cash provided by operating activities was $28.4 million for the nine months ended September 30, 2024, compared to $31.1 million in the previous year. This decrease is due to changes in working capital.
Net cash used in investing activities was $1.5 million, compared to net cash provided by investing activities of $14.4 million in the previous year, primarily due to the absence of proceeds from the sale of the Servus brand.
Net cash used in financing activities was $27.7 million, compared to $47.0 million in the previous year, primarily related to payments on credit facilities.
The filing also details a new multi-year contract with the U.S. Military, contributing to increased Contract Manufacturing net sales.
Rocky Brands states that its ABL Facility and cash generated from operations will provide sufficient liquidity to fund operations and debt obligations for at least the next twelve months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rocky Brands Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.