Mon, Mar 17, 8:57 PM (40 days ago)
**Summary of Rocky Brands, Inc. (RCKY) 10-K Annual Report** **Financial Performance (2024 vs. 2023):** - **Revenue:** $453.8 million (2024) vs. $461.8 million (2023), a 1.7% decrease. - **Gross Margin:** 39.4% (2024) vs. 38.7% (2023), a 70 basis points increase. - **Operating Income:** $31.1 million (2024) vs. $35.4 million (2023), a 12.1% decrease. - **Net Income:** $11.4 million (2024) vs. $10.4 million (2023), a 9.6% increase. - **Earnings per Share (EPS):** $1.52 (2024) vs. $1.41 (2023). - **Total Debt:** $128.7 million (2024) vs. $173.1 million (2023), a 25.7% decrease. - **Inventory:** $166.7 million (2024) vs. $169.2 million (2023), a 1.5% decrease. **Strategic Overview:** - **Brands:** Muck, Rocky, Georgia Boot, Durango, Lehigh, XTRATUF, Ranger, and Michelin. - **Markets:** Work, outdoor, western, commercial military, duty, and military. - **Growth Strategy:** Expand into new markets, cross-sell brands, grow e-Commerce, increase Lehigh business, and acquire/develop new brands. **Future Outlook:** - Focus on digital marketing and e-Commerce to drive sales. - Continue to invest in product innovation and marketing. - Monitor global supply chain and economic conditions. **Risk Factors:** - Expansion into new markets may be difficult and expensive. - Dependence on international commerce and supply chain risks. - Seasonality and weather impacts on outdoor products. - Competition from companies with greater resources. - Dependence on key retailers and distributors. - Economic conditions and consumer spending trends. **Financial Condition:** - **Liquidity:** Strong, with $3.7 million in cash and $55.9 million availability under ABL Facility. - **Debt:** $128.7 million in total debt, with compliance with all credit facility covenants. - **Capital Expenditures:** Focus on information technology, molds, equipment, and merchandising fixtures. **Market Position Changes:** - **Wholesale:** Decrease in sales due to non-recurring sales and divestiture of Servus brand. - **Retail:** Increase in sales due to Lehigh CustomFit Platform and e-Commerce growth. - **Contract Manufacturing:** Increase in sales due to multi-year contract with the U.S. Military. **Notable Events:** - **Debt Refinancing:** Amended and restated ABL Facility, resulting in a $2.6 million expense. - **Divestitures:** Sale of Servus brand and related assets, resulting in a $1.3 million gain. - **Share Repurchase Program:** New $7.5 million share repurchase program announced.